HARRY HUGHES, Governor

201

(3) "STOCK ACQUISITION" MEANS:

(I)   AN ACQUISITION OF THE OUTSTANDING
VOTING STOCK OF A COMMERCIAL BANK OR BANK HOLDING COMPANY IN
THIS STATE, IF THE ACQUISITION WILL AFFECT THE POWER TO
DIRECT OR TO CAUSE THE DIRECTION OF THE MANAGEMENT OR POLICY
OF ANY BANKING INSTITUTION OR BANK HOLDING COMPANY; OR

(II)   AN ACQUISITION OF ANY VOTING STOCK OF
A COMMERCIAL BANK, IF THE ACQUISITION WILL GIVE ANY ONE
PERSON CONTROL OF 25 PERCENT OR MORE OF THE VOTING STOCK OF
THE COMMERCIAL BANK.

(B)        GENERAL RULE.

EXCEPT AS PROVIDED IN THIS SECTION, A PERSON MAY NOT
MAKE A STOCK ACQUISITION.

(C)       PRIOR APPROVAL REQUIRED.

(1)   A PERSON WHO INTENDS TO MAKE A STOCK
ACQUISITION SHALL APPLY TO THE BANK COMMISSIONER FOR
APPROVAL, AT LEAST 60 DAYS BEFORE THE ACQUISITION BECOMES
EFFECTIVE.

(2)   THE APPLICATION SHALL INCLUDE:

(I)   A DESCRIPTION OF THE PROPOSED STOCK
ACQUISITION; AND

(II)   ALL OTHER INFORMATION THAT IS
AVAILABLE TO INFORM THE BANK COMMISSIONER OF THE EFFECT OF
THE ACQUISITION ON THE POWER TO DIRECT OR TO CAUSE DIRECTION
OF THE MANAGEMENT OR POLICY OF A BANKING INSTITUTION OR BANK
HOLDING COMPANY.

(3)   IF THERE IS ANY DOUBT AS TO WHETHER THE
STOCK ACQUISITION WILL AFFECT THE POWER TO DIRECT OR CAUSE
DIRECTION OF THE MANAGEMENT OR POLICY OF A COMMERCIAL BANK
OR BANK HOLDING COMPANY, THE DOUBT SHALL BE RESOLVED IN
FAVOR OF REPORTING TO THE BANK COMMISSIONER.

(D)   DENIAL OF ACQUISITION.

THE BANK COMMISSIONER MAY DENY APPROVAL FOR A     STOCK

ACQUISITION THAT THE BANK COMMISSIONER DETERMINES TO BE

ANTICOMPETITIVE OR TO THREATEN THE SAFETY OR SOUNDNESS   OF A
BANKING INSTITUTION.

(E)       VOTING STOCK INEFFECTIVE.

VOTING STOCK THAT IS ACQUIRED IN VIOLATION OF THIS
SECTION MAY NOT BE VOTED FOR 5 YEARS.

REVISOR'S NOTE: This section is new language derived
without substantive change from the first