An Act To Make Technical and Supervisory Amendments to the Laws Governing Banking and Consumer Credit (-")
Maine Legislature, Session 124, LD 1409
Committee: Insurance and Financial Services
Sponsors: TREAT, BOWMAN, BEAUDOIN, FOSSEL, GOODE, RICHARDSON, McCORMICK
Amends: 9-A MRSA §6, 9-B MRSA §222, 9-B MRSA §369, 9-B MRSA §416, 9-B MRSA §828, 9-B MRSA §842, 9-B MRSA §844, 9-B MRSA §1053

Legislative Document 
No. 
H.P. 985 .. 
House of Representatives, April 6, 2009 
An Act To Make Technical and Supervisory Amendments to the 
Laws Governing Banking and Consumer Credit 
(-") 
Submitted by the Department of Professional and Financial Regulation pursuC)nt to Joint 
.~ 
Rule 204. 
) 
(---/ 
ReferenGe to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative TREAT of Hallowell. 
. Cosponsored by Senator BOWMAN of York and 
'IY/~ 
frl.1l!t1C~{ 
MILLICENT M.MacF ARLAND 
Clerk 
Representatives: BEAUDOIN of Biddeford, FOSSEL of Alna, GOODE of Bangor, . 
MORRISON of So Lith Portland, RICHARDSON of Warren, Senator: McCORMICK of 
Kelmebec. 
Printed nil n:c-yded pOpel' 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 9-A MRSA §6-202, as enacted by PL 1973, c. 762, § 1 and amended by PL 
1975, c. 767, §8, is further amended to read: 
§6-202. Notification 
1. 
Persons subject to this Part shall file notification with the administrator before 
commencing business in this State, and, thereafter, on or before January 31 st of each 
year. The notification shall state: The notification filings must be made to the 
administrator and must be in a form and contain information that the administrator 
considers appropriate for the proper supervision and regulation of such persons. 
l'L 
Name of the person; 
B. 
Name in which business is transacted if different from A; 
C. 
Address of principal office, which rna)' be outside this State; 
D. 
Address of all offices or retail stores, if an)" in this State at which consumer 
credit transactions are entered into, or in the case of a person taking assignments of 
obligations, the offices or places of business ',vithin this State at ';vhich business is 
transacted; 
E. 
If consumer credit transactions are entered into otherwise than at an office or 
retail store in this State, a brief description of the manner in '""hich the)' are entered 
ffi«r, 
F. 
Address of designated agent upon '?,'hom service of process may be made in this 
State, section 1 203; and 
G. 
Whether supervised loans are made. 
2. 
If information in a notification becomes inaccurate after filing, the administrator 
should be advised in ", .. riting of such new or corrected information. 
3. In addition to the notification filings required in subsection 1, the administrator 
may require reports and other information at such times and in such form as the 
administrator considers appropriate for the proper supervision of the persons subject to 
thIS Part. . 
. 
4. If information in a notification required in subsection 1 becomes inaccurate after 
filing, the administrator must be advised in writing of the new or corrected information. 
. 
. 
Sec. 2. 9-B MRSA §222, sub-§3, as amended by PL 200.1, c. 211, §7, is repealed 
and the following enacted in its place: 
3. Condition and income reports. Everv financial institution subject to this Title 
shall make quarterly, or at such times as the superintendent may direct a' report of 
. condition and income to the superintendent. The report must be in such form and contain 
such information as the superintendent considers appropriate for the proper supervision 
and regulation of such financial institutions. 
' 
. 
. Page 1 -124LROS17(Ol)-1 
() 
(~~ 
(J 
I 
The report must contain a declaration that the report is true and correct and must be 
signed by an officer authorized to do so by the board of directors of the financial 
institution. The financial institution shall retain a copy of the report that is filed with the 
bureau, including the original signed declaration, and shall make it available to the bureau 
upon request. 
Sec. 3. 9-B MRS A §223, sub-§2, as enacted by PL 1975, c. 500, § I, is amended 
to read: 
.8 
2. Reports posted in .offices; Every financial institution shall make available in all . 
'of its offices at least 10 days, but not more than 30 days,prior to the annual meeting of its 
stockholders, corporators or members, its latest condition r~port or a condition report for 
II 
its most i'ecently completed fiscal year, and a report of income for the institution's most 
recently completed fiscal year. In addition to making available its latest condition report 
or conditionrepOlt for its most recently completed fiscal year, a nondepository trust 
company shall make available a report of its fiduciary assets and income. 
IS 
Sec. 4. 9-B MRS A §342, as amended by PL 2007, c. 79, §7, is further amended to 
read: 
§342.Conversion to new charter: . federal to State; State to federal; out of state to 
State 
. 
1. Federal savings banl{ or savings and loan to state financial institution. Any 
federal association· or federal savings bank may convert to a financial institution 
. organized under the laws of this State in the following manner. A federal savings bank or 
savings and loan association converting to a financial institution organized under the laws 
of this State may continue to use the designation "Federal" or "FSB" or derivatives of 
"Federal" or "FSB" in its corporate title, as long as the cOllverted federal savings bank or 
savings and loan association also uses the designation "state association" or "S.A." in its 
corporate title. 
A. 
At an annual meeting or a special meeting called for that purpose, a majority, or 
more if required by the institution's ol:ganizational documents, of the members or 
investors casting votes in person Or by proxy rriust approve of the conversion. Notice 
of the meeting must be mailed to each member or investor at least 30 and not more 
than 60 days prior to the date of the meeting at the member's or investor's last known 
address as shown on the books of the institution. 
B. 
At the meeting required in paragraph A, the members or investors shall vote 
upon directors who will be the directors of the state-chartered institution after 
conversion becomes effective and the members shall also vote upon corporators if a 
board of corporators is to be established for the resulting state-chart.ered institution. 
C. 
Within 10 days after th~ meeting, a copy of the minlltes of the meeting, verified 
by affidavit of the clerk or secretary, together with such additional information as the 
superintendent may require, must be submitted. to the superintendent for the 
superintendent's approval or disapproval in writing of the proposed conversion 
pursuant to the procedures and requirements of section 252. The verified copies of 
' 
, 29 
35' 
the minutes of the meeting when filed are presumptive evidence of the holding and 
action of the meeting. 
D. 
Copies of the minutes of the meeting of members or i,nvestors, verified by 
affidavit of the 'clerk or secretary, and copies of the superintendent's written approval 
must be mailed to the Office of Thrift Supervision or its successor within 10 days 
after 'approval. 
E. 
Following compliance with all applicable requirements of federal law, if any, the 
directors elected pursuant to paragraph B shall execute 3 copies of the organizational 
documents upon which the superintendent shall endorse approval and those 
documents must be filed in accordance with the provisions of chapter 31 or 32. Each 
director shall sign and acknowledge the documents as a subscriber to the documents. 
F. 
So far as applicable, the provisions ofthisTitle apply to the resulting institution. 
G.' The rights of dissenting investors of a converting federal savings bank or federal 
savings and loan are governed by federal law. 
H. 
Upon approval of the superintendent and evidence that the convel1ing institution 
has complied with all applicable state and federal laws, rules and regulations, the 
superintendent shall issue to the reSUlting institution a certificate specifYing the name 
of the converting institution and shall file a copy of the celiificate with the Secretary 
of State. This certificate, once filed, is conclusive evidence of the conversion and of 
the correctness of all proceedings relating to the conversion in all courts and places. 
Unless a later date is specified in the cel1ificate, the conversion is effective upon 
issuance of the certificate. 
2. 
National bank to financial institution. A national bank may convert to a 
financial institution organized under the laws of this -State in the following manner. A, 
national bank converting to a financial institution organized under the laws of this State 
may continue to use the designation "National" or "NA" or derivatives of "National" or 
"NA" in its corporate title, as long as the converted national bank also uses the 
designation "state association" or "S.A." in its corporate title. 
A. 
The national bank must comply with the conditions and limitations imposed by 
the laws of the United States governing the conversion. 
B. 
The converting national bank may apply for a State charter by filing with the 
superintendent an application signed by its president and by a majority of its 
governing body setting forth the corporate action taken in compliance with the laws 
of the United States in paragraph A and affixing to the application the organizational 
documents governing the bank as a financial institution. 
D. 
The rights of dissenting investors of a convel1ing national bank are governed by 
federal law. 
E. 
Upon approval of the superintendent and evidence that the convel1ing institution 
has complied with all applicable state and federal laws, rules and regulations, the 
superintendent shall issue to the reSUlting institution a certificate specifYing the name 
of the converting institution and shall file a copy of the certificate with the Secretary 
of State. This certificate, once filed, is conclusive evidence of the conversion and of 
the correctness of all proceedings related to the conversion in all co"urts and places. 
') 
/ 
) 
) 
I 
n 
L) 
Unless a later date is specified in the ceIiificate, the conversion is effective upon 
issuance of the ceIiificate. 
6. State to federal charter. A financial institution organized under provisions of 
this Title may convert to a federal association or to a national bank in accordance with 
applicable federal laws and regulations and the following provisions. 
A. 
A majority of the institution's investors or mutual voters, or more if required by 
the institution's organizational documents, must approve the conversion at an annual 
meeting or at a special meeting. Notice of the meeting must be mailed not less than 
nor more than 30 days prior to the meeting to each investor or mutual voter at the 
investor's or voter's last known address as shown on the books of the institution. 
B. 
Upon completion of the conversion, the financial institution shall certify in 
writing that the conversion has been completed under applicable federal law. The 
cilmier of the converting financial institution terminates automaticaily upon issuance 
of the federal chaIier or ceIiificate. 
Upon receipt of a copy of the chaIier or 
certificate showing the organization of the institution asa federal institution, the 
superintendent shall notify the Secretary of State that the conversion has been 
effected. 
C. 
The rights of dissenting investors of a financial institution converting to a federal 
chaIi~r are those specified in section 352, subsection 5. 
D. The financial institution must notify and provide thesuperintendentwith a copy 
of the application filed with the appropriate federal regulator within 3 days of filing 
with the federal regulator. 
7. Out of state to State charter. A financial institution organized under the laws of 
another state may convert to a financial institution organized under the laws of this State 
in the manner set out in this section. 
. 
A. The financial institution organized under the laws of another state must comply 
with the conditions and limitations imposed by the laws of that state governing the 
converSIOn. 
B. The conveIiing financial institution may apply for a state chmier by filing with the 
superintendent an application signed by its president and by a majority of its 
governing body setting forth the corporate action taken in compliance with the laws 
of the state under which it is organized and affixing to the application the 
organizational documents governing the bank as a financial institution. 
C. Upon approval of the superintendent and evidence that the converting institution 
. has complied with all applicable state and federal laws, rules and regulations, the 
superintendent shall issue to the resulting institution a ceIiificate specifying the name 
of the conveIiing institution and shall file a copy of the ceIiificate with the Secretary 
of State. This ceIiificate, once filed, is conclusive evidence of the conversion and of 
the correctness of all proceedings related to the conversion in all cOllIis and places. 
Unless a later date is specified in the ceIiificate, the. conversion is effective upon 
issuance of the ceIiificate. 
The rights of dissenting investors of a converting financial institution organized under 
another state are governed by the laws of that state. 
. 
Sec. S. 9-B MRSA §369, as enacted by PL 1991, c. 34, §8, is repealed an·d the 
following enacted in its place: 
. 
·§369. Judicial review 
1. Action by financial institution. A financial institution closed by action of the 
superintendent pursualit to this chapter may bring an action challenging the 
superintendent's appointment of a receiver in the Sllperior Court of Kennebec County 
within 10 days after the superintendent appoints a receiver. 
The court must uphold the superintendent's finding thai' a fil'Hincial institution is insolvent 
or that its condition is such as to render its further p'roceedings hazai'dous to the public or 
to those having·funds in its custody and must uphold the appointment of a receiver unless 
the court finds that the superinterident's action was arbitrary and capricious. 
14· 
2. Action by person adversely affected. A person affected adversely by an act or 
omission of the superintendent or receiver under this section and sections 365, 367-A and 
16368 may bring an action in the Superior Court of Kennebec County seeking an order to 
annul, alter or modifY the act or to enjoin the performance of the act or to require that 
action be taken under any provision of this section. 
A. Any proceedings under this section must be given precedence over other pending 
court cases and must be expedited. The person bringing the action has the burden of 
proof to show that the act .01' omission is unlawful or arbitrary and capricious. 
B. The person must bring the action under this subsection within 10 business days· 
after receiving notice of the act oi' omission in person, by registered mail or by 
publication of a certificate signed by the superintendent or receiver in a newspaper of 
general circulation in the county where the financial institution has· its principal 
26. 
office. 
C. Notwithstanding paragraph B, action may not be brought more than 30 days after 
the order of' the superintendent deterniining that the business affairs of the 
receivership are substantially complete and that the receivership is terminated.· Upon 
termination of the receivership, the superintendent is under no obligation to reopen 
the receivershIp. 
D. The court may issue injunctions to prevent multiplicity of proceedings seeking to 
annul, alter or modifY the actions of the superintendent or receiver made under the 
provisions of this chapter or to prevent undue interference with the regulation and 
liquidation of the financial institution. 
_ E. The court, upon application by the superintendent or receiver, has jurisdiction to 
enforce orders relating to the receivership and the financial institution in receivership. 
F. Notwithstanding Title 5, section 8003, the Maine Administrative Procedure Act 
does not apply to the procedures described in this subsection. 
) 
) 
) 
() 
( 
~~) 
Sec. 6. 9-B MRSA §416, as amended by PL 1997, c. 207, §1, is further amended 
to read: 
§416. Powers offederally chartered institutions 
Notwithstanding any other provisions of law, ,a financial institution has the power to 
engage in any activity that financial institutions chartered by or otherwise subject to the 
jurisdiction of the Federal Government may be authorized to engage in by federal 
legislation or regulations issued pursuant tb, such legislation as long as the financial 
institution files with the superintendent prior written notice of its intention to engage in 
such activity. In the e'\'ent any lav,' of this State is preempted or declared invalid pursuant 
to applicable federal I a""" by a court of competent jurisdiction or by the' responsible 
federal chartering authority '.vith respect to any 
power that may be exercised by a 
financial institution chartered by or otherwise subject to the jurisdiction of the Federal 
Government, that law is invalid '""ith respect to financial institutions authorized to do 
business in this State. The notice must include a description of the activity, a description 
of the financial impact of the activity on the financiai institution, citation of the legal 
authority to engage in the activity under federal law, a description of any limitations or 
restrictions imposed on the activity under federal law and any other information the 
superintendent may require. The financial institution may engage in the activity unless 
the superintendent disapproves of the activity due to consumer protection or safety and 
soundness considerations, ,or if the superintendent requests further information, no later 
than 30 days after the notice is filed. As used in this section, "activity" includes any right, 
power, privilege or benefit or any loan, investment or transaction that a financial 
institution chartered by or otherwise subject to the jurisdiction of the Federal 
Government, directly or through a subsidiary, may lawfully exercise or lawfully engage 
in or enter. The superintendent may adopt rules to ensure that such powers are exercised 
in a safe and sound manner with adequate consumer protections. Rules adopted pursuant 
to this section are routine technical rules as defined in Title 5, chapter375, subchapter II-
A2-A. 
Sec. 7. 9-B MRSA §828, as amended by PL 1997, c. 207, §2, is further amended 
to read: 
§828. Powers of federally chartered credit unions' 
Notwithstanding any other provisions of law, a credit union has the power to engage' 
in any activity that a credit union chartered by or otherwise subjectto the jurisdiction of 
the Federal Government may be authorized to engage, in by federal legislation or 
regulations issued pursuant to such legislation as' long as the credit union files with the 
superintendent prior written notice of its intention to engage in such activity. In the event 
any la,\' of this State is preempted or declared invalid pursuant to applicable federal law, 
, bya court of competent jurisdiction or by the responsible federal chartering authority 
",,,ith respect to any power that may be e}wrcised by a credit union chartered by or 
otherwise subject to the jurisdiction of the Federal Government, that law is inv'alidwith 
respect to credit unions authorized to do business in this State. The notice must include a 
description of the activity, a description of the financial impact of the activity on the 
credit union, citation of the legal authority to engage in the activity under federal law, a 
I 1 
description of any limitations or restrictions imposed on the activitv under federal law 
and any other information the superintendent may require. The credit union may engage 
in the activity unless the superintendent disapproves of the activity due to consumer 
protection or safety and soundness considerations, or unless the superintendent requests 
fUlther information, no later than 30 days after the notice is filed. As used in this section, 
"activity" . il~c1udes any right, power, privilege or benefit or any loan, investment or 
transaction that a credit union chartered by or otherwise subject to the jurisdiction of the 
Federal Government, directly or through a service' corporation, may lawfully exercise or 
lawfully engage in or enter. The superintendent may adopt rules to ensure that such 
powers are exercised in a safe and sound manner with adequate consumer protections. 
Rules adopted pursuant to this section are routine technical rules as defined in Title 5, 
chapter 375, subchapter l.J-A- 2-A. 
Sec. 8. 9-B MR.SA §842, sub-§2, as amended by PL 2003, c. 322, §§Z9 to 31, is 
further amended to read: 
2. Powers and duties. The board of directors shall manage the affairs, funds and 
records of the credit union and shall meet as often as necessary, but not less than once a 
month, notice of such meeting to be made in the manner prescribed in the bylaws. As-set 
forth beID";", the The special duties of the board of directors shall be are: 
A. 
To act upon applications for membership, or to appoint a membership committee 
of one or more membership officers, from among the members of the credit union, 
other than the treasurer, an assistant treasurer or loan officer, who may be authorized 
by the board to approve applications for membership under such conditions as the 
board may prescribe;· provided that such committee or membership officer so 
authorized shall submit ,to the board at each monthly meeting a list of approved or 
pending applications for membership received since the previous monthly meeting, 
together with such other related infonnation as the bylaws or board may require;' 
B. 
To fix from time to tirrie the maximum amount, both secured and unsecured, 
which may be loaned to anyone member; except as limited by chapter 85, and to 
establish a written loan policy pursuant to section 851, which must be reviewed and 
ratified at least annually; 
C. 
To authorize the employment of such person or persons as maybe necessary to 
carry on the business of the credit union; and to fix the compensation of such 
employees, including the treasurer; 
D. 
To borrow money to carry on the functions of the credit union, subject to the 
limitation set forth in section 822; 
E. 
To authorize the conveyance of property; 
F. 
To, purchase a blanket bond in an amount " .... hich is not less than an amount 
, recommended by the superintendent, which shaH be i§. required of the treasurer and of 
each other officer and other employee having. custody. of funds or property; 
G. 
To limit the number of shares that may be owned by one member or nonmember 
as provided in section 817" and such limitation must be applied uniformly; 
) 
) 
) 
n 
( 
(~ 
I 
8. 
II 
I3 
.14 
H. 
To have charge of the investment of funds and to establish a written investment 
policy pursuant to section 861, which must be reviewed and ratified at least annually; 
I. 
To perform such other duties as the members may from time to time require; 
J. 
To appoint a supervisory committee of not less than 3 members, not more than 
one member of which may be a director. . If the duties of the supervisory committee 
al;e conducted by an independent public accountant and the board has contracted for 
an annual audit by an independent public accountant pursuant to section 844, a· 
supervisory committee need not be appointed; 
. 
. . 
K. 
To appoint a credit committee of not less than 3 members, or establish a written 
loan policy wfl.i.e.It that provides for the designation of one or more loan officers in 
lieu of a ciedit committee and with all loans subject to ratification by the full board; 
L. 
To appoint an executive committee, when the bylaws so provide, consisting of 
not less than 3 members of the board with authority to invest funds or borrow in the 
name of the credit union, except that the board may establish a written investment 
policy wfl.i.e.It that provides forthe designation of a qualified individual to have charge 
of making investments subject to ratification by the fllll board; 
M. . To suspend any or all members of the credit and supervisory committees for 
failure to perform their duties; 
. 
N. 
To fill vacancies occurring. between annual meetings in the board of directors 
and in the credit committee and supervisory committee until the election or 
appointment ·and qualification of their successors; 
O. 
To establish and provide for compensation ·of loan officers appointed by the 
credit committee, and of auditing assistance requested by the supervisory committee; 
P. 
To designate a depository or depositories for the funds of the credit union; 
Q. 
To declare dividends in the way and manner provided in the bylaws and in 
accordance with this Part; 
. 
R. 
To determine from time to time the rate of interest consistent with the laws of 
this State which shall that will be charged on loans; and to determine from time to 
time the amount of interest rebate and the interval on which such rebate if any,shatl 
must be computed; ami-
. S. 
To perform or authorize any action consistent with this Part not specifically 
reserved by the bylaws for the memb~rs~; and 
. 
. 33 
T .. To fix the amount of director compensation, if any, in an amount up to $300 to 
each director for attendance at a meeting, but not to exceed $3,600 to an individual 
director in a year, subject to member approval at a meeting of the members held in 
accordance with section 846 .. 
.. Sec. 9. 9-B MRSA §842, sub-§3, as enacted by PL 1975, c. 500, §1, is repealed. 
Sec. 10. 
9-B MRSA §844, sub-§5, as enacted by PL 2003, c. 322, §33, is 
amended to read: 
5. Exception. Notwithstanding the provisions of subsections 1 and I-A, any credit 
union that has total assets in excess of $100,000,000 must employ an independent public 
accountant to conduct an annual audit of the credit imion in accordance with section 453. 
Sec. 11. 9..;B MRS A §873, as amended by PL 1997, c. 398, Pt. L, § 13, is further 
amended to read: 
§873~ Conversion: federal to State charter; out of state to State charter 
1. Eligibility. A credit union now or hereafter authorized to do business in this State 
and organized pursuant to provisions of Federal federal law or organized under the laws 
' 
of another state may become subject to this Part and receive a charter as a state-chartered 
credit union by making application in writing to the superintendent for such conversion. 
The superintendent may approve or disapprove such conversion in accordance with the 
criteria set forth in section 253; provided that as long a's, as a condition precedent to such 
approval, the credit union shall sho',', shows compliance with all applicable Federal 
federal laws and regulations and laws and regulations of the state under which it is 
organized relating to such conversion. ' 
' 
2. Issuance of charter. Upon receiving approval from the superintendent, the credit 
union sflall must be issued a charter under this Part, which fact sflall must be certified by 
the superintendent to the Secretary of State; and" from and after the issuance of such 
charter, said the credit union sflall must be subject to the provisions of this Part and all 
regulations rules issued hereunder under this Part. 
3. Applicability of other sections. A credit uilion20nverting to a state charter 
pursuant to this section is subject to the provisions contained in sections 357 and 358 
governing resulting institutions. 
Sec. 12. 9.:B MRSA §1052, sub-§3, as amended by PL 1993, c. 257, §4, IS 
further amended to read: 
26' 
3. 
Subsidiary universal bank. "Subsidiary 
sa',~ings institution" "Subsidiary 
universal bank" means a'ny savings universal bank or savings and loan association 
organized under the laws of this State, at least 51 % of the voting stock of which is wholly 
owned by a mutual holding company. 
. 
Sec. 13. 9-B MRS A §1053, sub-§l, as amended by PL 1993, c. 257, §5, is 
further amended to read: 
1. Reorganization. Notwithstanding any ot!;er provision of law, a mutual financial 
institution may reorganize so as to become a mutual holding company by: 
' 
A. 
Chartering, pursuant to chapter 31, a subsidiary savings institution universal 
bank; and 
B. 
Transferring a substantial part of its assets and liabilities, including all of its 
insured liabilities to the subsidiary savings institution universal bank. The subsidiary 
savings institution universal bank must meet or exceed minimum capital 
requirements prescribed by federal law or regulations or state law or rules. Persons' 
) 
) 
'\ 
) 
n 
I 
J 
~ 
II 
U' 
having liquidation rights with respect to the mutual financial institution pursuant to . 
chapter 36, at the time of the formation of the subsidiary savings institution universal 
bank, have those rights with respect to 'the mutual holding company. 
Sec. 14. 9-B MRSA §1053, sub-§4, as am,ended by PL 2005, c. 65, Pt. C, §5, is 
further amended to read: 
4. Issuance of stock and securities. A subsidiary savings institution universal bank 
has the power to issue to persons other than the mutual holding conipany of which it is a 
subsidiary an amount of common stock and securities convel1ible into common stock that 
in the aggregate does-not exceed 49% of the issued and outstanding common stock of that 
subsidiary savings institution universal bank. For purposes of the 49% limitation, any 
issued and outstanding securities that are' convertible into common stock, including 
warrants, options and rights to purchase common stock,. are considered issued and 
outstanding common stock of the subsidiary. Each time common stock of the subsjdiary 
savings institution universal bank is offered by the institution to the general public for a 
price payable in cash, each eligible account holder of the subsidiary savings institution 
universal bank cif the mutual holding company must receive, without payment, 
nontransferable SUbscription rights to purchase that common stock at the sarhe price and 
in accordance with guidelines or rules as may be adopted by the superintendent. For 
purposes of -this chapter, aft ~offer to the general public~ means an offer by means of 
public advel1ising or general solicitation and does not include: 
.' 
A. 
Issuances to the mutual holding company; or 
B. 
Offers or sales that are exempt frqm registration by vil1ue of Title 32, section 
16202, subsections subsection 16, 19 or 26. 
Sec. 15. 9-B MRS A §1053, sub-§5, as enacted by PL 1993, c. 257, §6, is 
amended to read: 
. 
5. Reporting. A subsidiary savings institution universal bank that issues, or has 
issued and outstanding, any common stock or securities convel1ible into common stock to . 
persons other than the mutual holding company of which it isa subsidiary shall file 
consolidated financial statements, reports or proxy materials as required under federal 
law. If the consolidated financial statements, rep0l1s or proxy materials are not required 
to be filed with any federal authority or agency, copies of the consolidated financial 
statements, rep0l1s or proxy materials must be filed with the superintendent and must be 
public records. 
Sec. 16. 9-B MRSA §1053, sub-§6, as enacted by PL 1993, c. 257, §6, IS 
. amended to read: 
6.· Power's of subsicliary universal banks. 
A subsidiary savings institution 
universal bank may continue to exercise its powers, rights and privileges and is subject to 
limitations not inconsistent with this chapter and applicable to a savings bank or savings 
and loan association organized under the laws of the State, including, but not limited to, 
the powers of a stock financial institution organized under chapter 31. 
Page JO - 124LROSI7(OI)-1 
"-
I 
Sec. 17. 9-B MRSA §I054, sub-§3, as amended by PL 1993, c. 257, §8, IS 
further amended to read: 
3. Powers. A mutual holding company may: 
A. 
Invest in the stock of a financial institution, subject to section 1013; 
B. 
Acquire a mutual financial institution through merger into a subsidiary savings 
institution universal bank or an interim subsidiaIY savings institution universal bank 
of the mutual holding company; 
C. 
Merge with or acquire a mutual holding company, one of whose subsidiaries is a 
savings bank or savings and loan association; 
D. 
Exercise any power, right or privilege, with the exception of deposit taking, 
granted to mutual financial institutions under the laws of the State, and, unless 
specifically noted otherwise, any reference to "savings bank" or "savings and loan 
association" in any other law of this State also applies to a sUbsidiary savings 
institution universal bank chartered pursuant to this chapter; 
. 
E. 
Invest in the capital stock of a company, which is a legal investment for a 
savings bank under the laws of the State; 
F. 
Exercise any power or. engage in any activity authorized for a bank holding 
company or savings and loan holding company under federal law or rule or chapter 
101; and 
G. 
Exercise any other power or engage in any other activity authorized by the 
superintendent. 
Sec.18. 9-B MRS A §I055, as amended by PL 1993, c. 257, §9, is further 
amended to read: 
§1055. Rules 
The superintendent shall adopt such rules as neceSSaIY to effectuate the purposes of 
this chapter and to ensure that the reorganization of a mutual financial institution is 
conducted in a fair and equitable manner to ensure the safety and soundness of the 
subsidiary savings institution universal bank and the protection of the subsidiaIY savin2:s 
institution's universal bank's .net wOlih. 
SUMMARY 
This bill eases regulatory burdens under Article 6 of the Maine Consumer Credit 
Code by eliminating the requirement for· information ~oncerning creditors and other 
entities sllbject to Article 6 that the administrator under the Maine Consumer Credit Code 
does not need or that can be found elsewhere, and allows the administrator under the 
Maine Consumer Credit Code to collect only the information considered necessary. 
Currently, the filing deadline for financial instittitions organized under the laws of 
this State is semiannually for condition repOlis and annually for income repOlis. The bill 
changes the filing deadlines to quarterly for both condition and income reports. 
) 
) 
) 
() 
( 
~~) 
, 1 
The bill requires a nondepository trust company to report the total fiduciary assets 
and income under management, in order to provide a more complete picture of the 
nondepository trust company's operations. 
The bill clarifies that a financial institution that is chartered in a state other than this 
State may convel1 to become a financial institution chaI1ered in this State. 
The 'bill clarifies that 3rd parties may seek judicial review of the activities of a 
receiver charged with liquidating a financial institution. 
The proposed amendment 
creates a review proce~s for receivers that is similar to the review process that currently 
exists for conservators. 
The bill e~tablishes the Superintendent of Financial Institutions as a gatekeeper in 
deciding which activities are appropriate for state-chartered financial institutions under 
. 
existing federal parity law. The bill ensures that the superintendent is informed of new 
activities undertaken by financial institutions and authorizes the superintendent to 
disapprove of any new activities based on consumer protection and safety and soundness 
considerations .. 
The bill establishes the Superintendent of Financial Institutions as a gatekeeper in 
deciding which. activities are appropriate for state-chartered credit unions under existing 
federal parity law. The bill ensures that the superintendent is informed of new activities 
undel1aken by credit unions and authorizes the superintendent to disapprove of any new 
activities based on consumer protection and safety and soundness considerations. 
The bill allows the' option of compensating those who serve on a credit union's board 
of directors in order to attract and retain well-qualified directors. The bill also contains 
an annual fee cap to prevent dir~ctors from receiving excessive compensation. 
The bill clarifies the procedure with respect to the requirement that a credit union 
having total assets in excess of $1 00,000,000 employ an independent public accountant to 
conduct an annual audit of the credit union. 
This bill clarifies that a credit unio~ that is chartered in a state other than this State 
may convert to become a credit union chartered in this State. The bill also permits a 
federaily chartered credit union located outside of the State to convert to a credit union 
chartered in this State. 
This bill replaces outdated termino'logy, "subsidiary savings institution," with current 
terminology, "subsidiary universal bank."