An Act To Amend Maine's Financial Institution Merger Statutes and Modernize Certain Sections of Title 9-B
Maine Legislature, Session 130, LD 1836
Committee: Health Coverage, Insurance and Financial Services
Sponsors: SANBORN
Amends: 9-B MRSA §212, 9-B MRSA §312, 9-B MRSA §322, 9-B MRSA §351, 9-B MRSA §352, 9-B MRSA §353, 9-B MRSA §373, 9-B MRSA §429

Legislative Document
No. 1836
S.P. 654
In Senate, December 22, 2021
An Act To Amend Maine's Financial Institution Merger Statutes 
and Modernize Certain Sections of Title 9-B
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 203.
Received by the Secretary of the Senate on December 20, 2021.  Referred to the Committee 
on Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator SANBORN of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  9-B MRSA §212, sub-§4, as amended by PL 1999, c. 184, §6, is further 
amended to read:
4.  Contracts with other state and federal regulatory agencies for regulatory 
functions.  The superintendent may employ and engage experts, and professionals or other 
personnel of, including other state and federal regulatory agencies, as may be necessary to 
assist the bureau in carrying out its regulatory functions.  The superintendent may contract 
bureau staff to other state and federal agencies to assist those agencies in carrying out their 
regulatory functions.  Contracts for services under this subsection are designated sole 
source contracts and are not subject to the procurement requirements of Title 5, chapter 
155.
Sec. 2.  9-B MRSA §312, sub-§5, ¶B, as amended by PL 1997, c. 398, Pt. C, §7, 
is further amended to read:
B.  The minimum amount of paid-in capital must be determined by the superintendent, 
but in no event may it be less than $100,000 $500,000.
Sec. 3.  9-B MRSA §322, sub-§5, ¶B, as enacted by PL 1975, c. 500, §1, is 
amended to read:
B.  The minimum amount of capital deposits shall must be determined by the 
superintendent, but in no event shall may it be less than $100,000 $500,000.
Sec. 4.  9-B MRSA §351, sub-§3-A, as enacted by PL 2007, c. 79, §9, is amended 
to read:
3-A.  Superintendent's approval not required.  Notwithstanding subsection 3, if the 
surviving institution of a merger, consolidation, purchase or assumption is a federally 
chartered institution and the transaction is subject to approval by its federal regulator, 
approval by the superintendent is not required.  The financial institution shall notify and 
provide the superintendent a copy of the application filed with the appropriate federal 
regulator within 3 days of filing with the federal regulator. The Maine charter of the 
participating financial institution terminates automatically upon completion of the merger, 
consolidation, purchase or assumption.
Sec. 5.  9-B MRSA §351, sub-§4, as enacted by PL 1997, c. 398, Pt. G, §1, is 
amended by enacting at the end a new blocked paragraph to read:
Notice and meeting are not required under this subsection if investors or mutual voters 
unanimously approve the plan of merger or consolidation.
Sec. 6.  9-B MRSA §351, sub-§5, ¶A, as enacted by PL 1997, c. 398, Pt. G, §1, is 
amended to read:
A.  Upon approval by the investors or mutual voters of the participating institutions, 
the chief executive officer, president or vice-president and the clerk or secretary of each 
institution shall submit the executed plan of merger or consolidation to the 
superintendent, together with the resolutions of evidence of approval by the investors 
or mutual voters approving it, each certified by these officers.
Sec. 7.  9-B MRSA §352, sub-§3, as amended by PL 1997, c. 683, Pt. A, §1, is 
further amended by enacting at the end a new blocked paragraph to read:
Notice and meeting are not required under this subsection if investors unanimously approve 
the plan.
Sec. 8.  9-B MRSA §353, sub-§3, as amended by PL 1997, c. 398, Pt. G, §3, is 
further amended by enacting at the end a new blocked paragraph to read:
Notice and meeting are not required under this subsection if mutual voters unanimously 
approve the plan.
Sec. 9.  9-B MRSA §373, sub-§3, as enacted by PL 1995, c. 628, §20, is amended 
by amending the first blocked paragraph to read:
The superintendent shall provide written response within 30 days of receipt of the notice.  
If the superintendent finds that the interstate combination, acquisition or establishment does 
not comply with applicable state law, including, but not limited to, the conditions and 
requirements of this chapter, the superintendent may file an objection with the appropriate 
state or federal regulatory agency that has primary responsibility for the applicant.  In 
addition, if the superintendent finds that an interstate combination, branch acquisition or 
de novo establishment would be adverse to the public interest, the superintendent may bring 
an action in the name of the State pursuant to chapter 24. The Maine charter of the 
participating financial institution terminates automatically upon completion of an interstate 
combination done in conformity with this subsection that results in an out-of-state financial 
institution, federal association or national bank.
Sec. 10.  9-B MRSA §429, sub-§2, as amended by PL 2003, c. 263, §2, is further 
amended to read:
2.  Payment of interest or dividends.  Each mortgagee holding funds of a mortgagor 
in a required escrow account on behalf of itself or another mortgagee for the payment of 
taxes or insurance premiums with respect to mortgaged property located in this State shall 
pay the mortgagor, at least quarterly, dividends or interest on the account at a rate of not 
less than 50% of the 1-year Treasury Note rate Bill secondary market rate or rate of a 
comparable instrument if the 1-year Treasury Note Bill is not offered, as published 
electronically by the Federal Reserve System or in a financial newspaper of national 
circulation, as of the first business day of the year in which the quarterly interest or dividend 
is paid.  The dividends or interest paid under this subsection may not be reduced by any 
charge for service or maintenance of the account.
SUMMARY
This bill amends the laws governing certain processes pertaining to financial institution 
mergers and consolidations, increases the capital required to charter a new institution, 
replaces a United States Treasury target rate for mortgage escrows with an updated 
substantially equivalent rate and clarifies that the Superintendent of Financial Institutions 
may engage experts if needed to carry out regulatory functions.