reglab/statecodes huggingface dataset:
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 122 - SECURITIES ACTIVITIES OF SUBSIDIARIES OF FINANCIAL INSTITUTIONS (Reg. 22) › Section 029-122-V - RESTRICTIONS AND LIMITATIONS

Current through 2024-29, July 17, 2024
1) Prior written
				approval of the Superintendent is required for a financial institution or a
				subsidiary thereof to engage in, or invest in a company engaged in, each
				activity which can be permitted pursuant to this regulation. An application for
				prior approval shall include, but not be limited to, discussion of the general
				business plan, initial capital needs, and the prospective risks involved in the
				proposed activity.
The restrictions and limitations contained in this regulation
				  are based on the assumption that both IV.A. and IV.B. activities will be
				  generally conducted by subsidiaries of financial institutions. If a financial
				  institution seeks to directly engage in activities permitted by Section IV.A.
				  of this regulation, the restrictions and limitations set forth in Section
				  V will apply, to the fullest extent possible,
				  notwithstanding the use of the word "subsidiary" in subsection
				  V(2).
In addition to satisfying the decision-making criteria found
				  in Title
				  9-B M.R.S.A.
				  Section252, any application that provides for
				  the conduct of the activities enumerated in Section IV.A. directly by a
				  financial institution rather than a subsidiary thereof, shall bear a heavy
				  burden in demonstrating that such activities:
(1) do not raise unnecessary risks to the
				financial institution or its customers;
(2) are conducted in accordance with the
				restrictions and limitations set forth in this regulation to the fullest extent
				possible;
(3) avoid all problems
				of conflict of interest, breach of fiduciary duty and the appearance of
				impropriety.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 123 - INSURANCE ACTIVITIES IN (Reg. 23) FINANCIAL INSTITUTIONS › Section 029-123-1 - AUTHORITY

Current through 2024-29, July 17, 2024
Title
				   9-B M.R.S.A.
				  Section111 declares that it is a policy of
				  the state to supervise financial institutions in a manner to assure their
				  strength, stability and efficiency and encourage the development and expansion
				  of financial services advantageous to the public welfare.
Title
				   9-B M.R.S.A.
				  Section416 grants to the Superintendent the
				  authority to allow by regulation a financial institution to engage in any
				  activity which has been authorized under federal law for financial institutions
				  chartered or otherwise subject to the jurisdiction of the federal
				  government.
Title
				   9-B M.R.S.A.
				  Section241 gives the Superintendent authority
				  to promulgate rules and regulations defining, limiting, or proscribing acts and
				  practices which are deemed to be anti-competitive, unfair, deceptive, or
				  otherwise injurious to the public interest.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 123 - INSURANCE ACTIVITIES IN (Reg. 23) FINANCIAL INSTITUTIONS › Section 029-123-2 - PURPOSE

Current through 2024-29, July 17, 2024
The purpose of this regulation is to provide the regulatory
				  framework for financial institutions to enter into lease arrangements with an
				  insurance agent, broker or consultant, who would distribute insurance products,
				  so as to:
A. bring about the greatest
				possible uniformity of regulation and encourage parity between
				federally-chartered and state-chartered financial institutions; and
B. provide public access to insurance
				products on bank premises.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 123 - INSURANCE ACTIVITIES IN (Reg. 23) FINANCIAL INSTITUTIONS › Section 029-123-3 - DEFINITIONS

Current through 2024-29, July 17, 2024
For purposes of this regulation, the following terms have the
				  following meanings:
A. "Financial
				institution" means a financial institution as defined by Title
				 9-B M.R.S.A.
				Section131(17) including
				credit unions organized pursuant to the laws of this state.
B. "Subsidiary" means a subsidiary as defined
				in Title
				9-B M.R.S.A.
				Section131(39-A).
C. "Insurance agent" has the meaning set
				forth in Title
				 24-A M.R.S.A.
				Section1506, and includes, without
				limitation, organizations licensed as insurance agents pursuant to Title
				 24-A M.R.S.A.
				Section1517.
D. "Insurance broker" has the meaning set
				forth in Title
				 24-A M.R.S.A.
				Section1506, and includes, without
				limitation, organizations licensed as insurance brokers pursuant to Title
				 24-A M.R.S.A.
				Section1517.
E. "Insurance consultant" has the meaning set
				forth in Title
				 24-A M.R.S.A.
				Section1508, and includes, without
				limitation, organizations licensed as insurance consultants pursuant to Title
				 24-A M.R.S.A.
				Section1517.
F. "Retail area" means all space occupied by
				a financial institution where the "business of banking," as defined in Title
				 9-B M.R.S.A.
				Section131(5) may
				occur.
G. "Regulated institution"
				means a financial institution as defined by Title
				 9-B M.R.S.A.
				Section131(17), a financial
				institution holding company as defined in Section 1011, and any subsidiary of a
				financial institution or financial institution holding company.
H. "Insurer" has the meaning set forth in
				Title
				 24-A M.R.S.A.
				§4.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 123 - INSURANCE ACTIVITIES IN (Reg. 23) FINANCIAL INSTITUTIONS › Section 029-123-4 - PROVISIONS OF THE REGULATION

Current through 2024-29, July 17, 2024
Subject to the following restrictions and limitations,
				  regulated institutions are authorized to enter into leases with an insurer,
				  insurance agent, broker or consultant for a portion of the premises of the
				  various financial institutions. However, any arrangement between a regulated
				  institution and an insurer, insurance agent, broker or consultant pursuant to
				  which an insurer, insurance agent, broker or consultant utilizes space in the
				  retail area of a regulated institution in order to engage in the business of
				  insurance is subject to the following conditions.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 123 - INSURANCE ACTIVITIES IN (Reg. 23) FINANCIAL INSTITUTIONS › Section 029-123-5 - RESTRICTIONS AND LIMITATIONS

Current through 2024-29, July 17, 2024
A. Nature of lease:
(1) Any lease agreement or other office
				space-sharing agreement executed by a regulated institution, and an insurer,
				insurance agent, broker, or consultant shall be executed on the basis of an
				arm's length transaction.
(2) The
				agreement to lease may include terms that are usual and customary in the
				leasing of commercial office space, except that the rental payment may not be
				directly related to the tenant's commissions. At no time may the return to the
				regulated institution/lessor exceed fair market value of the space
				occupied.
(3) The agreement to
				lease shall contain a clause expressly negating a partnership or joint venture
				between the lessee and the regulated institution/lessor.
(4) The agreement to lease shall contain a
				clause expressly stating that the regulated institution has no right to and may
				not attempt to exercise control over the insurance business affairs of the
				lessee.
(5) Regulated institutions
				are prohibited from leasing office space to their employees, officers,
				directors, principal shareholders, or members of their immediate families
				including firms owned or controlled by these parties for the purpose of
				conducting insurance business.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 126 - GUARANTY ASSOCIATION LINES OF CREDIT (Reg. 26) (Bureau of Insurance Rule Chapter 570) › Section 029-126-I - PURPOSE

Current through 2024-29, July 17, 2024
The purpose of this Rule is to establish the terms,
				  conditions, standards, and form of any Line of Credit extended to the Maine
				  Insurance Guaranty Association, Maine Life and Health Insurance Guaranty
				  Association, or any of their member insurers, for purposes of facilitating the
				  prompt payment of covered claims against insolvent insurers..
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 126 - GUARANTY ASSOCIATION LINES OF CREDIT (Reg. 26) (Bureau of Insurance Rule Chapter 570) › Section 029-126-II - AUTHORITY

Current through 2024-29, July 17, 2024
This Rule is adopted pursuant to Title
				   9-B M.R.S.A. §215 and
				  Title
				   24-A M.R.S.A.
				  §§212,
				  4435(9),
				  and
				  4605(11).
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 126 - GUARANTY ASSOCIATION LINES OF CREDIT (Reg. 26) (Bureau of Insurance Rule Chapter 570) › Section 029-126-III - DEFINITIONS

Current through 2024-29, July 17, 2024
A. Association means the Maine Insurance
				Guaranty Association created pursuant to Title
				 24-A M.R.S.A.
				§4436 or the Maine Life and Health
				Insurance Guaranty Association created pursuant to Title
				
				24-AM.R.S.A. §4606.
B. Line of Credit or Credit is a standby
				commitment by a qualified financial institution or group of qualified financial
				institutions to the Association or a Member Insurer, as defined in Title
				24-A M.R.S.A.
				§§4435(9) and
				4605(11).
C. Member Insurer has the same meaning that
				is set forth in Title
				 24-A M.R.S.A.
				§§4435(6) and
				4605(6).
D. Equity capital means the sum of common
				stock, perpetual preferred stock, surplus, undivided profits, reserves for
				contingencies and other capital reserves, and cumulative foreign currency
				translation adjustments, less the net unrealized loss on marketable equity
				securities, all as determined in accordance with generally accepted accounting
				principles.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 126 - GUARANTY ASSOCIATION LINES OF CREDIT (Reg. 26) (Bureau of Insurance Rule Chapter 570) › Section 029-126-IV - QUALIFIED ISSUERS

Current through 2024-29, July 17, 2024
Unless other qualifications are provided in Title
				   24-AM.R.S.A.
				  §§4435(10) or
				  4605(12),
				  as amended, any issuer of a Line of Credit must be insured by the Federal
				  Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation,
				  or a successor federal deposit insurance agency or agencies. The issuer's
				  equity capital, as defined above, must be at least 6.5% of its total assets as
				  determined in accordance with generally accepted accounting
				  principles.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 126 - GUARANTY ASSOCIATION LINES OF CREDIT (Reg. 26) (Bureau of Insurance Rule Chapter 570) › Section 029-126-V - SATISFACTORY TERMS AND STANDARDS

Current through 2024-29, July 17, 2024
No Line of Credit may take effect until a copy of the
				  contract between the issuer(s) and the Association has been filed with and
				  approved by the Superintendent of Insurance. The contract must contain, at a
				  minimum, the following provisions:
A.
				A provision that the Line of Credit is irrevocable until it expires or is
				terminated in a manner consistent with this Rule and Title
				 24-AM.R.S.A.
				§4440(3)(B) or
				4609(2)(D),
				as amended, and that no discretionary termination or non-renewal may take
				effect without 30 days' advance notice to the Association and the
				Superintendent of Insurance.
B.
				Specific language clearly setting forth all requirements for the Association or
				its authorized representatives to access a Line of Credit, including, but not
				limited to, votes of directors to levy an assessment, the time frame within
				which demand for funds must be honored by an issuer of a Credit, terms of debt
				service and retirement undertaken by the Association, and conditions pursuant
				to which a Line of Credit may be withdrawn;
C. Any limitations that will be prospectively
				imposed regarding value and access conditions of the Line of Credit;
D. Any restrictions upon use of assets,
				pledge of assets, or assignments of recovery to be imposed respecting the
				Association's future revenues or other rights;
E. A provision that prohibits the diversion
				of funds for any purpose other than administration of the Association's
				obligation to claimants. The agreement shall identify those persons who shall
				have authority to negotiate or draw on the Credit;
F. Any requirement regarding financial
				condition to be maintained by the Association when the Line of Credit is to be
				drawn upon, including repayment terms and schedule(s) to service the
				debt;
G. If the Line of Credit is
				convertible or any other instrument may be substituted as an alternate form of
				debt obligation, the terms of any applicable side agreements;
H. A provision allowing the Association to
				access funds under the credit within one business day after receipt by the
				issuer of satisfactory written evidence of a vote of the Association's
				directors authorizing a draw on the Credit upon notice of an insolvent insurer
				by the Superintendent of Insurance, without further documentary
				evidence;
I. Conditions and
				limitations, respecting suspension of the Issuer's obligation to make funds
				available under the Line of Credit, due to noncompliance by the Association
				with its obligations or other good and sufficient cause, which are satisfactory
				to the Superintendent of Insurance;
J. Procedures, if any, for resolution of
				disputes between the issuer(s) and the Association.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 126 - GUARANTY ASSOCIATION LINES OF CREDIT (Reg. 26) (Bureau of Insurance Rule Chapter 570) › Section 029-126-VI - EXTENSIONS OF CREDIT BY MEMBER INSURERS TO THE ASSOCIATION

Current through 2024-29, July 17, 2024
A. If at any time there is no approved Line
				of Credit in force issued to an Association, each of that Association's Member
				Insurers must either:
(I) obtain an approved
				Line of Credit pursuant to this Rule issued to the Member Insurer for the
				benefit of the Association, with all funds drawn on the Line of Credit credited
				to the Member Insurer's account;
(ii) enter
				into an agreement to extend credit to the Association, filed with and approved
				by the Superintendent of Insurance in a manner consistent with Section5 of
				thisRule; or
(iii) pay a
				preinsolvency assessment to the Association in the amount specified in
				 24-AM.R.S.A.
				§4440 or §
											4609,
				as applicable.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 126 - GUARANTY ASSOCIATION LINES OF CREDIT (Reg. 26) (Bureau of Insurance Rule Chapter 570) › Section 029-126-VII - ASSESSMENTS

Current through 2024-29, July 17, 2024
Before any Line of Credit can be approved, the Association
				  must file procedures with the Superintendent of Insurance for assessing its
				  Member Insurers in the event that credit funds are inaccessible. If a dispute
				  between the Association and an issuer affecting access to a Credit is not
				  resolved within 7 days, the Superintendent of Insurance may order an
				  assessment, to be collected by the Association or its servicing agent. Payment
				  of the assessment by Member Insurers shall be due within 30 days after receipt
				  of notice of the assessment; a United States Postal Service Certificate of
				  Mailing shall constitute conclusive proof of receipt on the 5th calendar day
				  after mailing.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 126 - GUARANTY ASSOCIATION LINES OF CREDIT (Reg. 26) (Bureau of Insurance Rule Chapter 570) › Section 029-126-VIII - EFFECTIVE DATE

Current through 2024-29, July 17, 2024
This Rule, as amended, shall become effective on July 16,
				  1994.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 127 - MINIMUM CAPITAL STANDARDS › Section 029-127-1 - PURPOSE

Current through 2024-29, July 17, 2024
9-B M.R.S.A.. 412-A requires every financial institution to
				  establish and maintain an adequate level of capital as set forth in rules
				  adopted by the superintendent. The rules must address the composition of
				  capital, minimum capital levels that must be maintained, and procedures that
				  must be followed to restore capital if it falls below minimum standards. The
				  purpose of this regulation is to satisfy the above requirements.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 127 - MINIMUM CAPITAL STANDARDS › Section 029-127-4 - PROVISIONS OF THE REGULATION

Current through 2024-29, July 17, 2024
A. General rule.
				Financial institutions must maintain at least the minimum leverage capital
				requirement set forth in Section 4B. The capital standards in this regulation
				are the minimum acceptable for financial institutions whose overall financial
				condition is fundamentally sound, who are well-managed and who have no material
				or significant financial weaknesses. Not with-standing the foregoing, the
				superintendent may require a financial institution to maintain a higher capital
				level based on the institution's particular risk profile. Where the
				superintendent determines that the financial history or condition, managerial
				resources and/or the future earnings prospects of a financial institution are
				not adequate, or where a institution has sizable off-balance sheet or funding
				risks, excessive interest rate risk exposure, or a significant volume of assets
				classified substandard, doubtful or loss or otherwise criticized, the
				superintendent may determine that the minimum amount of capital for that
				institution is greater than the minimum standards stated in this section. These
				same criteria will apply to any financial institution making an application to
				the superintendent to merge or consolidate with another institution or acquire
				the assets and assume the liabilities of another institution where such
				application requires the superintendent to consider the adequacy of the
				institution's capital structure.
B.
				Minimum leverage capital requirement.
(1) The
				minimum leverage capital requirement for a financial institution shall consist
				of a ratio of Tier 1 capital to total assets of not less than 3% if the
				superintendent determines that the institution is not anticipating or
				experiencing significant growth and has well-diversified risk, including no
				undue interest rate risk exposure, excellent asset quality, high liquidity,
				good earnings and in general is considered a strong financial institution,
				rated composite 1 under the Uniform Financial Institutions Rating System (the
				CAMEL rating system) established by the Federal Financial Institutions
				Examination Council and adopted by the superintendent.
(2) For all but the most highly-rated
				financial institutions meeting the conditions set forth in paragraph B(1) of
				this section, the minimum leverage capital requirement for a financial
				institution shall be 3% plus an additional cushion of at least 100 to 200 basis
				points and, therefore, shall consist of a ratio of Tier 1 capital to total
				assets of not less than 4%. In all cases, financial institutions should hold
				capital commensurate with the level and nature of all risks.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-1 - PURPOSE

Current through 2024-29, July 17, 2024
Title  9-B M.R.S. §439-A establishes the basis for
				  determining the legal lending limits for financial institutions, including
				  their subsidiaries, organized under the laws of this State. The lending limit
				  law prohibits loans or extensions of credit at any one time to an individual
				  borrower in excess of 20% of the financial institution's total capital. In
				  addition, this statute authorizes the Superintendent to adopt rules to define
				  or further define terms used in the statute and to establish limits or
				  requirements other than those specified in the statute. This regulation
				  protects the safety and soundness of financial institutions by preventing
				  excessive loans to one person while promoting diversification of loans and
				  equitable access to financial institution services.
The purpose of this amendment is to update Chapter 128's
				  definition of "Total capital and surplus" so that it is consistent with the
				  calculation of the Federal Deposit Insurance Corporation's Community Bank
				  Leverage Ratio (CBLR) as found in  12 C.F.R. Part 324 . The amendment
				  accommodates those financial institutions using CBLR that are no longer
				  required to calculate Tier 2 capital. Previously, the definition of Total
				  Capital and Surplus contemplated only those financial institutions calculating
				  both Tier 1 and Tier 2 capital. The change also incorporates a definition of
				  Adjusted Allowance for Credit Losses, which is part of the federal Financial
				  Accounting Standards Board's Current Expected Credit Losses methodology used by
				  financial institutions. In addition, the amendment also adds explanatory
				  language to the Conversion Factor Matrix Method used for calculating credit
				  exposure from derivatives. The explanatory language will more closely align the
				  regulation with the language found in the Conversion Factor Matrix Method found
				  in federal law at  12 C.F.R. §
										32.9. The Bureau has determined that these
				  changes will be useful for financial institutions utilizing modern approaches
				  to capital calculations, including those that utilize the CBLR Framework. The
				  Superintendent has determined these changes to be necessary for the protection
				  of the public that deals with financial institutions using CBLR
				  framework.
Credit unions have lending limit requirements other than
				  those found in the regulation.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-2 - AUTHORITY

Current through 2024-29, July 17, 2024
Title  9-B M.R.S §215 authorizes the Superintendent to
				  implement by rule any provisions of law relating to the supervision of
				  financial institutions.
Title  9-B M.R.S §439-A(5) authorizes the Superintendent
				  to adopt rules to carry out purposes of the Banking Code's lending limit law,
				  including rules to define or further define terms used in the section and to
				  establish limits or requirements other than those specified in the section if
				  the Superintendent determines that such action is necessary for the protection
				  of depositors, investors or the public.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-3 - DEFINITIONS

Current through 2024-29, July 17, 2024
1. "Adjusted allowances for credit losses"
				means, with respect to a financial institution that has adopted the federal
				Financial Standards Accounting Board's current expected credit losses (CECL)
				methodology, valuation allowances that have been established through a charge
				against earnings or retained earnings for expected credit losses on financial
				assets measured at amortized cost and a lessor's net investment in leases that
				have been established to reduce the amortized cost basis of the assets to
				amounts expected to be collected as determined in accordance with generally
				accepted accounting principles (GAAP). For purposes of this Regulation,
				adjusted allowances for credit losses include allowances for expected credit
				losses on off-balance sheet credit exposures not accounted for as insurance as
				determined in accordance with GAAP. Adjusted allowances for credit losses
				exclude allocated transfer risk reserves and allowances created that reflect
				credit losses on purchased credit deteriorated assets and available-for-sale
				debt securities.
2. "Borrower"
				means a person who is named as a borrower or debtor in a loan or extension of
				credit; a person to whom a financial institution has credit exposure arising
				from a derivative transaction entered by the financial institution; or any
				other person, including a drawer, endorser, or guarantor, who is deemed to be a
				borrower under the "direct benefit" or the "common enterprise" tests set forth
				in section 6 of this regulation.
3.
				"Contractual commitment to advance funds":
A.
				Includes a financial institution's obligation to:
(1) Make payment (directly or indirectly) to
				a third person contingent upon default by a customer of the financial
				institution in performing an obligation and to make such payment in keeping
				with the agreed upon terms of the customer's contract with the third person, or
				to make payments upon some other stated condition;
(2) Guarantee or act as surety for the
				benefit of a person;
(3) Advance
				funds under a qualifying commitment to lend, that is, a legally binding written
				commitment to lend that, when combined with all other outstanding loans and
				qualifying commitments to a borrower, is within the financial institution's
				lending limit when entered into, and has not been disqualified; and
(4) Advance funds under a standby letter of
				credit as defined in subsection 3(13) of this regulation, a put, or other
				similar arrangement.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-4 - LENDING LIMITS

Current through 2024-29, July 17, 2024
Except as provided in  9-B M.R.S. §439-A and this
				  regulation, a financial institution and/or its subsidiaries may not make loans
				  or extensions of credit outstanding at one time to a borrower in excess of 20%
				  of its total capital and surplus.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-5 - CALCULATION DATE OF LENDING LIMITS

Current through 2024-29, July 17, 2024
1.
Calculation date
. For purposes of determining compliance with this
				regulation, a financial institution shall determine its lending limit on the
				last day of the preceding calendar quarter, unless otherwise directed by the
				Superintendent.
2.
Effective
				date
. A financial institution's lending limit calculated in accordance
				with subsection (1) of this section will be effective as of the earlier of the
				date on which the financial institution's Consolidated Reports of Condition and
				Income (Call Report) is submitted or the date the Call Report is required to be
				submitted.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-6 - COMBINATION RULES

Current through 2024-29, July 17, 2024
1.
General
				rule
. Loans or extensions of credit to one borrower will be attributed
				to another person and each person will be deemed a borrower:
A. When proceeds of a loan or extension of
				credit are to be used for the direct benefit of the other person, to the extent
				of the proceeds so used; or
B. When
				a common enterprise is deemed to exist between the persons.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-7 - NONCONFORMING LOANS AND EXTENSIONS OF CREDIT

Current through 2024-29, July 17, 2024
1.
				A loan or extension of credit, within a financial institution's legal lending
				limit when made, will not be deemed a violation but will be treated as
				nonconforming if the loan or extension of credit is no longer in conformity
				with the financial institution's lending limit because:
A. The financial institution's capital has
				declined, borrowers have subsequently merged or formed a common enterprise,
				lenders have merged, or the lending limit or capital rules have
				changed;
B. Collateral securing the
				loan to satisfy the requirements of a lending limit exception has declined in
				value.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-8 - CREDIT EXPOSURE ARISING FROM DERIVATIVE TRANSACTIONS

Current through 2024-29, July 17, 2024
1.
Scope
. This section sets forth the rules for calculating the
				credit exposure arising from a derivative transaction entered into by a
				financial institution for purposes of determining the financial institution's
				lending limit pursuant to this regulation.
2.
Derivative transactions
A.
Non-Credit Derivatives
.
				Subject to paragraph 2(B) of this section, a financial institution shall
				calculate the credit exposure to a counterparty arising from a derivative
				transaction by one of the following methods. A financial institution shall use
				the same method for calculating counterparty credit exposure arising from all
				of its derivative transactions.
(1)
Conversion Factor Matrix Method
. The credit exposure arising from
				a derivative transaction under the Conversion Factor Matrix Method shall equal
				and remain fixed at the potential future credit exposure of the derivative
				transaction as determined at the execution of the transaction by reference to
				Table 1 below. Potential future exposure is equal to the notional value at
				origination multiplied by the conversion factor.
Table 1-Conversion Factor Matrix
							 for Calculating Potential Future Credit
							 Exposure.1
Original maturity 
							 2
Interest Rate
Foreign exchange rate and
							 gold
Equity
Other3 (includes commodities
							 and precious metals except gold)
1 year or less...............
.015
.015
.20
.06
Over 1 to 3 years..........
.03
.03
.20
.18
Over 3 to 5 years...........
.06
.06
0.20
0.30
Over 5 to 10 years.........
.12
.12
0.20
.60
Over ten years..............
.30
.30
.20
1.0
(2)
Remaining Maturity Method.
The credit exposure arising from a
				derivative transaction under the Remaining Maturity Method shall equal the
				greater of zero or the sum of the current mark-to-market value of the
				derivative transaction added to the product of the notional amount of the
				transaction, the remaining maturity in years of the transaction, and a fixed
				multiplicative factor determined by reference to Table 2, below.
TABLE 2-REMAINING MATURITY
							 FACTOR FOR CALCULATING CREDIT EXPOSURE
Interest Rate
Foreign exchange rate and
							 gold
Equity
Other 
							 4
(includes commodities
							 and precious metals except gold)
Multiplicative Factor
1.5%
1.5%
6%
6%
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 128 - LOANS TO ONE BORROWER LIMITATIONS › Section 029-128-9 - AUTHORITY OF THE SUPERINTENDENT

Current through 2024-29, July 17, 2024
The Superintendent may require a financial institution to use
				  the Conversion Factor Matrix Method or the Remaining Maturity Method to
				  calculate the credit exposure of derivative transactions if the Superintendent
				  finds that such method is necessary to promote the safety and soundness of the
				  financial institution.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 129 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29) › Section 029-129-1 - Purpose

Current through 2024-29, July 17, 2024
This joint rule, which repeals and replaces both the Bureau
				  of Financial Institutions Regulation 29 and the Office of Securities Rule 506,
				  gives direction to broker-dealers and financial institutions regarding their
				  respective obligations in any third party brokerage arrangements in Maine. This
				  joint rule also contains directives to financial institutions authorized to do
				  business in this state, for qualifying for the third party broker-dealer
				  exclusion from the definition of broker-dealer contained in
				   32 M.R.S.A.
				  §16102(4)(C). For
				  purposes of complying with the securities laws, the rule gives all financial
				  institutions a safe harbor under GLB from broker-dealer licensing if they enter
				  into a third party brokerage arrangement as described in the rule.
				  Broker-dealers must comply with the provisions of Sections
				  5 and
				  6 for any arrangement with financial
				  institutions whether the financial institution is state or federally chartered.
				  The rule does not grant a safe harbor to financial institution holding
				  companies, subsidiaries of financial institutions or credit union service
				  organizations, which must be licensed with the Maine Office of Securities as
				  broker-dealers.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 129 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29) › Section 029-129-2 - Definitions

Current through 2024-29, July 17, 2024
For purposes of this rule, the following definitions shall
				  apply:
1.
Broker-dealer.
"Broker-dealer" has the same meaning as in
				 32 M.R.S.A.
				§16102(4).
2.
Control.
"Control" has the
				same meaning as in
				 9-B M.R.S.A.
				§1011(4).
3.
Financial institution.
"Financial institution" means a financial institution as defined in
				 9-B M.R.S.A.
				§131(17) and a credit
				union as defined in
				 9-B M.R.S.A.
				§131(12).
4.
Financial institution authorized to
				do business in this State.
"Financial institution authorized to do
				business in this State" means a financial institution authorized to do business
				in this state as defined in
				 9-B M.R.S.A.
				§131(17-A) and a credit
				union authorized to do business in this state as defined in
				 9-B M.R.S.A.
				§131(12-A), which
				includes a "financial institution" as defined in sub-section
				3 of this section.
5.
Mutual fund.
"Mutual fund"
				means an investment company as defined in the Investment Company Act of 1940,
				15 U.S.C. § 80 a-3 (2001).
6.
Retail area.
"Retail area" means all space occupied by a financial
				institution where the "business of banking" as defined in
				9-B M.R.S.A.
				§131(5) may
				occur.
7.
Agent.
"Agent" has the same meaning as in
				 32 M.R.S.A.
				§16102(2).
8.
Security.
"Security" has the
				same meaning as in
				32 M.R.S.A.
				§16102(28).
9.
Third party broker-dealer.
"Third party broker-dealer" means a broker-dealer, including a broker-dealer
				that is controlled by a financial institution authorized to do business in this
				State or financial institution holding company, licensed by the Maine Office of
				Securities and registered with the National Association of Securities Dealers,
				that has entered into a written contractual agreement with a financial
				institution authorized to do business in this State to offer brokerage services
				to customers of the institution with compensation to the institution, directly
				or indirectly, for the transactions or services conducted with the
				institution's customers.
10.
Third party brokerage arrangement.
"Third party brokerage
				arrangement" means an agreement between a third party broker-dealer and a
				financial institution authorized to do business in this State, whereby the
				broker-dealer agrees to provide securities services to the customers of the
				institution and to compensate the institution for the transactions or services
				conducted with its customers.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 129 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29) › Section 029-129-3 - General authorization for third party brokerage arrangements

Current through 2024-29, July 17, 2024
1.
Authorization for financial
				institutions.
A financial institution may enter into third party
				brokerage arrangements to facilitate the sale of securities, subject to
				provisions of this rule.
2.
Authorization for financial institutions authorized to do business in
				this State.
A financial institution authorized to do business in this
				State may enter into third party brokerage arrangements and qualify for the
				exclusion from the definition of "broker-dealer" pursuant to
				 32 M.R.S.A.
				§16102(4)(C), if the
				financial institution authorized to do business in this State complies with
				Sections
				5 and
				6 of this rule.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 129 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29) › Section 029-129-4 - Provisions applicable to financial institutions

Current through 2024-29, July 17, 2024
1.
Safety and soundness.
Financial institutions engaging in third
				party brokerage arrangements are subject to the following provisions to ensure
				the safety and soundness of those institutions:
A. The financial institution must adopt a
				written policy which:
(1) addresses the risks
				associated with the sales program;
(2) contains a summary of the policies and
				procedures necessary to implement the sales program and to ensure compliance
				with all applicable laws, rules and regulatory conditions; and
(3) identifies the scope of activities that
				will be performed by a third party broker-dealer.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 129 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29) › Section 029-129-5 - Third party broker-dealer agreement

Current through 2024-29, July 17, 2024
This section applies to all third party broker-dealer
				  arrangements, whether with a financial institution or a financial institution
				  authorized to do business in this State. In order for a financial institution
				  authorized to do business in this State to qualify for the exclusion from the
				  definition of "broker-dealer" in
				   32 M.R.S.A.
				  §16102(4), that
				  financial institution authorized to do business in this State must comply with
				  all provisions of this section that are applicable to financial
				  institutions.
There shall be a written agreement ("the Agreement") between
				  the financial institution and the third party broker-dealer that shall, at a
				  minimum, address the areas listed below.
1.
Duties and responsibilities.
A description of the duties and responsibilities of each party, such as the
				separation of banking and brokerage service, compliance with disclosure and
				advertising requirements and the functions and compensation of financial
				institution employees.
2.
Customer information.
The use of financial institution and
				broker-dealer customer information and how compliance with Maine and federal
				law will be achieved.
3.
Compliance.
Authority for the financial institution and the third
				party broker-dealer to monitor transactions and to review and verify compliance
				with the Agreement.
4.
Access
				to records.
Authority for the financial institution and regulators to
				have access to relevant records of the third party broker-dealer and the
				financial institution in order to evaluate compliance with the
				Agreement.
5.
Licensed
				entities and persons.
Requirement that the activities be conducted only
				by the third party broker-dealer and its licensed agents.
6.
Agent disapproval and
				control.
The right of the financial institution to disapprove the
				placement or retention of any agent. The broker-dealer, however, has sole
				control and authority over agents, including sole responsibility for training
				and supervision of agents.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 129 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29) › Section 029-129-7 - Broker-dealer unethical practice defined

Current through 2024-29, July 17, 2024
For purposes of
				  
				  32 M.R.S.A.
				  §16412(4)(M), it is an
				  unethical practice in the securities business for a broker-dealer engaging in a
				  third party brokerage arrangement with a financial institution authorized to do
				  business in this State to fail to comply with any of the requirements set forth
				  in Sections
				  5 or
				  6 of this rule, or to allow anyone
				  other than personnel licensed by the Maine Office of Securities to conduct
				  securities transactions.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 129 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29) › Section 029-129-8 - Third party broker-dealer failure to supervise defined

Current through 2024-29, July 17, 2024
For purposes of
				  
				  32 M.R.S.A.
				  §16412(4)(I), it is a
				  failure reasonably to supervise an agent for a broker-dealer to allow the agent
				  to effect purchases or sales of securities on behalf of the broker-dealer with
				  customers of a financial institution authorized to do business in this State,
				  without adopting and furnishing the agent with written guidelines for engaging
				  in such activity, and maintaining supervisory procedures adequate for ensuring
				  that the guidelines are followed. Those guidelines shall, at minimum, instruct
				  the agent on the steps to be taken to ensure that the purchasers of securities
				  understand the differences between securities and a federally insured deposit,
				  and that only suitable transactions are effected.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 129 - FINANCIAL INSTITUTIONS AND BROKER-DEALERS ENGAGING IN THIRD PARTY BROKERAGE ARRANGEMENTS (REG. 29) › Section 029-129-9 - Federal and state rules and regulations

Current through 2024-29, July 17, 2024
It is recognized that the Federal Deposit Insurance
				  Corporation, the Federal Reserve System, the Comptroller of the Currency, the
				  Office of Thrift Supervision, the National Credit Union Administration and the
				  Securities and Exchange Commission have promulgated, or may in the future
				  promulgate, regulations or guidelines governing the manner in which a financial
				  institution or any of its affiliates and a broker-dealer may engage in
				  securities activities. It is further recognized that there may exist
				  differences in scope and coverage between this rule and those regulations
				  promulgated by federal regulatory agencies. It is not the intent of this rule
				  to permit any practice that is not permitted by the appropriate state or
				  federal regulatory agency. In addition to any restriction or limitation stated
				  in this rule, each financial institution, or any of its affiliates, and each
				  broker-dealer must fully comply with the rules or regulations of any applicable
				  state or federal regulatory agency and self-regulatory organization.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 130 - DISTRIBUTION OF ANNUITIES THROUGH FINANCIAL INSTITUTIONS (REG. 30) › Section 029-130-I - AUTHORITY

Current through 2024-29, July 17, 2024
Title
				   9-B MRSA
				  Section111 declares that it is a policy of
				  the state to supervise financial institutions in a manner to assure their
				  strength, stability, and efficiency and encourage development and expansion of
				  financial services advantageous to the public welfare.
Title
				   9-B MRSA
				  Section241 gives the Superintendent authority
				  to promulgate rules and regulations defining, limiting, or proscribing acts and
				  practices which are deemed to be anticompetitive, unfair, deceptive, or
				  otherwise injurious to the public interest.
Title
				   9-B MRSA
				  Section443 authorizes Maine financial
				  institutions to sell, or arrange for the sale of, annuities purchased from a
				  licensed insurance company.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 130 - DISTRIBUTION OF ANNUITIES THROUGH FINANCIAL INSTITUTIONS (REG. 30) › Section 029-130-II - PURPOSE

Current through 2024-29, July 17, 2024
The purpose of this regulation is to provide the regulatory
				  framework for a financial institution to enter into arrangements with an
				  annuity agent for the sale of annuities on the financial institution's premises
				  in order to:
Bring about parity between state and federally-chartered
				  financial institutions;
Promote public convenience and advantage in the sale of
				  annuities by state-chartered financial institutions;
Provide uniformity in the disclosure of annuities products to
				  assist the public to distinguish between a deposit product that is insured by
				  the Federal Deposit Insurance Corporation ("FDIC") or by the National Credit
				  Union Administration ("NCUA") and an annuity that is not insured by the FDIC or
				  NCUA; and
Ensure that financial institutions that market annuities on
				  their premises do so in a safe and sound manner.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 029 - BUREAU OF FINANCIAL INSTITUTIONS › Chapter 130 - DISTRIBUTION OF ANNUITIES THROUGH FINANCIAL INSTITUTIONS (REG. 30) › Section 029-130-III - DEFINITIONS

Current through 2024-29, July 17, 2024
For purposes of this regulation, the following terms have the
				  following meanings:
"Affiliate" means a financial institution holding company as
				  defined in Title
				   9-B MRSA §1011,
				  any subsidiary of a financial institution or financial institution holding
				  company as defined in Title
				   9-B MRSA
				  §131(39) or any credit
				  union service corporation as defined in Title
				   9-B MRSA
				  §864.
"Annuity" has the same meaning as set forth in Title
				   24-A MRSA
				  §703.
" Annuity agent" means an insurance agent whose license is
				  limited to the sale of annuities under Title
				   24-A MRSA
				  §1531(1)(F).
"Financial institution" means a financial institution as
				  defined by Title
				   9-B MRSA
				  §131(17) and a credit
				  union as defined by Title
				   9-B MRSA
				  §131(12).
"Retail area" means all space occupied by a financial
				  institution where the "business of banking" as defined in Title
				   9-B MRSA
				  §131(5) may
				  occur.