Louisiana Administrative Code › Title 10 - FINANCIAL INSTITUTIONS, CONSUMER CREDIT, INVESTMENT SECURITIES AND UCC › Part I - Financial Institutions › Chapter 7 - Powers › Section I-701 - Financial Institution Agency Activities

Current through Register Vol. 50, No. 6, June 20, 2024
A. Definitions
Agency Agreement
- the document which
				  establishes the agency relationship between the Louisiana state-chartered
				  financial institution and any other financial institution.
Applicant
- a Louisiana state-chartered
				  financial institution seeking the prior approval of the commissioner to engage
				  in agency activities as principal or as agent.
Close Loans
- the authority to provide loan
				  applications, review documentation, provide loan account information, service
				  loans and receive payments.
Commissioner
- the Commissioner of Financial
				  Institutions.
Financial Institution
- any bank, savings
				  bank, homestead association, building and loan association or savings and loan
				  association.
Notification
- consists of all forms
				  prescribed by the commissioner, submitted in a completed form, along with all
				  supporting documents and other information required by this rule.
Receive Deposits
- the taking of any
				  additional deposit. This does not include the acceptance of a deposit which
				  will result in the opening of a new deposit account.
B. Notification
1. Filing. All notifications filed in
				accordance with this rule shall be accompanied by a nonrefundable fee as
				prescribed by the commissioner and shall be in such form and contain such
				information as the commissioner may from time to time prescribe. The
				notification shall be filed at least 30 days prior to the effective date of the
				agreement. When the notification is submitted, an original and one copy must be
				provided. The commissioner may approve a substantially complete notification
				after consideration of the factors set forth in the following Sections. A
				reasonable amount of time may be utilized in the analysis of these factors and
				additional information may be requested. The prior approval of the applicant's
				board of directors is required before filing the notification. Substantially
				incomplete notifications will not be accepted for filing and will be returned
				to the applicant resulting in a processing delay.
2. Form. The applicant shall, at least 30
				days prior to the effective date of the agency agreement, provide notification
				to the commissioner which includes:
a. the
				name, address and phone number of the applicant as well as the name of a
				contact person to which questions regarding the application and notification
				may be directed;
b. the name,
				address and phone number of the financial institution which is entering the
				agency relationship with the applicant;
c. a description of the services proposed to
				be performed under the agency agreement including, but not limited to, those
				permissible activities as enumerated in §701. C 1;
d. a copy of the agency agreement;
e. evidence that the applicant's bonding
				company has been notified;
f. a
				copy of a resolution of the board of directors authorizing the establishment of
				the agency relationship; and
g. if
				applicable, a "No Objection Letter" from the appropriate chartering authority
				for the financial institution providing the agency services for the Louisiana
				state-chartered financial institution. This provision is only applicable when a
				Louisiana state-chartered financial institution enters into a relationship with
				a financial institution in which the out-of-state financial institution will
				act as agent for the Louisiana state-chartered financial institution.
3. Approval Process. The
				commissioner may approve any request to establish an agency relationship unless
				he finds that the proposed operation violates the provisions of this rule or
				any other pertinent provision of law. The commissioner may, in his sole
				discretion, provide written reasons for his decision, which shall be released
				only to the applicant.