Transfers of fiduciary accounts among affiliates is provided for. Closely-related activities may be engaged in directly or indirectly, through a subsidiary, unless the superintendent requires a bona fide subsidiary with appropriate corporate firewalls that limit the institution's exposure. Authorizes superintendent to approve additional activities on a case by case basis. The uninsured bank section is comparable to proposed federal legislation that has been debated in Congress and provides financial institution holding companies with an option to charter an uninsured bank in Maine if similar federal legislation is enacted. Limited purpose banks are addressed in Part J of the legislation.
More detail follows below.
Authorizes limited purpose institutions, including nondepository trust companies , merchant banks , and uninsured banks . May be organized as corporations, limited liability companies, limited partnerships, or limited liability partnerships. Provides parity for state-chartered institutions with federal thrift unitary holding company provisions by eliminating the Banking Code's restrictions on what firms or companies may own financial institutions. Anticipates probable changes in the federal banking holding company act being debated in Congress as part of competing financial modernization bills. Provides additional sources of capital for financial institutions, which will improve stability and provide for additional lending to business and consumers.