An Act To Modify Requirements for Multiple-party Accounts, Limited Purpose Financial Institutions and Mergers
Maine Legislature, Session 130, LD 0224
Committee: Health Coverage, Insurance and Financial Services
Sponsors: TEPLER
Amends: 9-B MRSA §354, 9-B MRSA §427, 9-B MRSA §1054, 9-B MRSA §1212, 9-B MRSA §1222, 9-B MRSA §1232

Legislative Document
No. 224
H.P. 159
House of Representatives, January 27, 2021
An Act To Modify Requirements for Multiple-party Accounts, 
Limited Purpose Financial Institutions and Mergers
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 204.
Received by the Clerk of the House on January 25, 2021.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative TEPLER of Topsham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  9-B MRSA §354, sub-§2, as amended by PL 1997, c. 398, Pt. G, §4, is 
further amended to read:
2.  Resulting investor-owned institution.  Except as the superintendent may authorize 
pursuant to section 354‑A, a mutual financial institution may not merge into an investor-
owned institution organized under the laws of this State without prior compliance with 
section 344 and all rules adopted under that section.  In accordance with section 1054, 
subsection 3, paragraph B, a mutual holding company may acquire a state or federal mutual 
financial institution through merger into a subsidiary universal bank or an interim 
subsidiary universal bank of the mutual holding company without prior compliance with 
section 344 and all rules adopted under that section.
Sec. 2.  9-B MRSA §427, sub-§13-A, as enacted by PL 2019, c. 1, §2 and affected 
by §5, is amended to read:
13-A.  Notice on opening certain accounts.  A signature card or other document 
establishing a multiple-party account, as defined in Title 18‑C, section 6‑201, must contain 
a clear and conspicuous printed notice to the depositor that on the depositor's death the 
balance in the account will belong to the surviving party.  At the time a multiple-party 
account, as defined in Title 18-C, section 6-201, subsection 5, is established or at the time 
a single-party account is converted to a multiple-party account with a financial institution, 
the document establishing the account or adding another party must include for each party 
to the account the question, "Do you intend for the sum remaining upon your death to 
belong to the surviving party or parties? Yes or No." The question required by this 
subsection must be answered in writing on the form by each party to the account prior to 
opening the account.  The answer provided on the form required by this subsection does 
not have any effect on any legal presumption or inference available in any civil or criminal 
matter.
Sec. 3.  9-B MRSA §1054, sub-§3, ¶B, as amended by PL 2009, c. 228, §15, is 
further amended to read:
B.  Acquire a state or federal mutual financial institution through merger into a 
subsidiary universal bank or an interim subsidiary universal bank of the mutual holding 
company;
Sec. 4.  9-B MRSA §1212, sub-§1-A is enacted to read:
1-A.  Principal office in State. Except for a nondepository trust company organized 
prior to the effective date of this subsection, a nondepository trust company shall locate its 
principal office in this State, have at least one resident of this State on its governing board 
and hold at least one of its governing board meetings in this State each year.
Sec. 5.  9-B MRSA §1222, sub-§1-A is enacted to read:
1-A.  Principal office in State. Except for a merchant bank organized prior to the 
effective date of this subsection, a merchant bank shall locate its principal office in this 
State, have at least one resident of this State on its governing board and hold at least one of 
its governing board meetings in this State each year.
Sec. 6.  9-B MRSA §1232, sub-§1-A is enacted to read:
1-A.  Principal office in State. Except for an uninsured bank organized prior to the 
effective date of this subsection, an uninsured bank shall locate its principal office in this 
State, have at least one resident of this State on its governing board and hold at least one of 
its governing board meetings in this State each year.
SUMMARY
This bill requires new nondepository trust companies, merchant banks and uninsured 
banks organized under the laws of this State to locate their principal offices in this State.  
It addresses inconsistent language found in the requirement for a signature card or other 
document establishing a multiple-party account.  It authorizes mutual holding companies 
organized under the laws of this State to acquire by merger a federal mutual financial 
institution or other state mutual financial institution under certain conditions.