An Act To Amend the Banking Laws Regarding Industrial Loan Company Reciprocity across State Lines
Maine Legislature, Session 123, LD 0635
Committee: Insurance and Financial Services
Sponsors: KNIGHT, PERRY, CHASE, GILES, PIOTTI, RAND, RICHARDSON, SAMSON, NASS
Amends: 9-B MRSA §131, 9-B MRSA §376

Legislative Document 
No. 635 
H.P.484 
House of Representatives, February 8, 2007 
An Act To Amend the Banking Laws Regarding Industrial Loan 
Company Reciprocity across State Lines 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative KNIGHT of Livermore Falls. 
Cosponsored by Senator PERRY of Penobscot and 
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MILLICENTM. MacFARLAND 
Clerk 
Representatives: CHASE of Wells, GILES of Belfast, PIOTTI of Unity, RAND of Portland, 
RICHARDSON of Warren, SAMSON of Auburn, Senator: NASS of York. 
PrinfeJ nil rt:!.:ydeJ paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 9-B MRSA §131, sub-§l-B is enacted to read: 
I-B. Bank holding company. "Bank holding company" means any company that 
controls, directly or indirectly, a bank. 
Sec. 2. 9-B MRSA §131, sub-§6-B is enacted to read: 
6-B. Commercial activity. "Commercial activity" means an activity in which a 
bank holding company, a financial institution holding company, a national bank and a 
national bank financial subsidiary may not engage under federal law. 
Sec. 3. 9-B MRSA §131, sub-§28-B is enacted to read: 
28-B. National bank financial subsidiary. "National bank financial subsidiary" 
means a company that is controlled by one or more insured depository institutions other 
than a subsidiary that: 
A. Engages solely in activities that national banks are permitted to engage in directly 
and are conducted subject to the same terms and conditions that govern the conduct 
of such activities by national banks; or 
B. A national bank is specifically authorized by the express terms of federal law, and 
not by implication or interpretation, to control. 
Sec. 4. 9-B MRSA §376, sub-§2, as enacted by PL 1995, c. 628, §20, is amended 
to read: 
2. Branches of out-of-state financial institutions. The laws of this State, including, 
but not limited to, the laws regarding consumer protection, fair lending and establishment 
of intrastate branches, apply to any state branch of an out-of-state financial institution, 
federal association or national bank to the same extent as those laws apply to a state 
branch of a financial institution organized under the laws of this State. An out-of-state 
financial institution that maintains, or seeks to establish and maintain, a branch in this 
State pursuant to this chapter may not conduct any activity at that branch that is not 
permissible for a financial institution organized under the laws of this State, including, 
but not limited to, commercial activity of that financial institution or an affiliate of that 
financial institution. 
Sec. 5. 9-B MRSA §376, sub-§3 is enacted to read: 
3. 
Commercial activity prohibited. An out-of-state financial institution or an 
affiliate of an out-of-state financial institution may not conduct any commercial activity 
at a location in this State. 
SUMMARY 
This bill defines "commercial activity" in the banking laws and clarifies that out-of-
state financial institutions and their affiliates, like Maine financial institutions and their 
I 
affiliates, are prohibited from conducting any commercial activity at in-state branches and 
may not conduct any commercial activity within Maine. 
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