Generally defers to state laws governing those types of entities for organization, management structure, and financial structure. Eliminates residency requirements for the members of the governing body. Proxy voting permitted. The primary goal of the legislation in this area is to significantly reduce regulatory oversight with respect to branching and the hours of operation, what should be a business decision of the institution. These changes are incorporated into Part B and D of the legislation.
Further detail is provided below.
Eliminates regulatory approval for opening or relocating a branch for qualified institutions. Because the potential adverse impact on communities, regulatory oversight of the closing of branches is retained. Generally, the most favorable powers accorded trust companies, savings banks, savings and loan associations will be granted to all institutions. All new charters granted by the Bureau of Banking will be known as Universal Banks as opposed to trust companies, savings banks, and savings and loan association, though Universal Banks will be able to use traditional names. These changes are contained in Part of I of the legislation.