Current through Vol. 42, No. 1, September 16, 2024
(a)
Filing of application.
(1) A bank desiring to establish or relocate
a branch pursuant to the Code, shall submit to the Commissioner the original
and two copies of an application on a form prescribed by the
Commissioner.
(2) The application
shall be executed by the applicant's president or vice-president.
(3) An application fee as set forth in
85:10-3-21 shall
accompany each application.
(4)
Applicants are urged to submit their applications to the Federal Deposit
Insurance Corporation (nonmember banks) or the Federal Reserve Board (member
banks) at the same time the application is submitted to the
Commissioner.
(b)
Investigation. The Commissioner may request additional information
from the applicant and conduct such investigation as he deems appropriate. No
special emphasis will be placed on an appraisal of economic and competitive
conditions.
(c)
Commissioner
approval.
(1) Unless the Applicant
requests a hearing before the Board either by having so stated in the
Application or by subsequent written request, the Commissioner may consider the
Application, grant approval and issue the certificate of authority to establish
and operate or to relocate a branch or detached facility without a hearing
before the Board. The Commissioner's consideration of the Application for
approval shall be conducted pursuant to the same standards and criteria as are
applicable to applications before the Board.
(2) Approval may be granted by the
Commissioner only in the event applicant's latest completed examination
reflects a Uniform Financial Institutions Composite "CAMEL" rating of 1 or 2,
and the applicant is not subject to supervisory action by the Department such
as a memorandum of understanding, cease and desist order, or similar
action.
(3) If the Commissioner
determines that the application should not be approved, the application will
proceed pursuant to subsection (d) of this section.
(4) The Commissioner shall have the absolute
discretion to defer ruling on any application thereby allowing such application
to be heard before the Board for consideration and
approval/disapproval.
(d)
Notice of intent to recommend
denial. In the event the Commissioner, based on his investigation,
determines not to approve the application, the Commissioner shall send to the
applicant by overnight mail or electronic communication a written notice of
intent to recommend denial, including the reasons for such negative
recommendation and the date, time and place the application will be heard by
the Board. Within ten (10) days after receipt of such notice, the applicant
shall notify the Commissioner of its intent to withdraw its application or to
proceed with a hearing on the application before the Board.
(e)
Hearing. In the event a
hearing before the Board is set by the Commissioner, such hearing shall be
conducted as follows:
(1)
Time
limit. The applicant shall be limited to 30 minutes to present testimony
and arguments at the hearing. Additional time may be granted by the
Commissioner upon good cause shown.
(2)
Transcript. A transcript may
be made of each hearing of an application. The Commissioner or the applicant
may arrange for a court reporter to be present to record the proceedings. All
expenses of the reporter, including the furnishing of the original and two(2)
copies of the transcript to the Commissioner, shall be borne by the
applicant.
(3)
Procedure. The order of presentation, appearance of witnesses, and
presentation of evidence for hearings of applications shall be as directed by
the chair of the Board present at the hearing. Ten (10) copies of all
documentary evidence shall be furnished to the Commissioner prior to the
hearing as directed by the Commissioner.
(4)
Decision of the Board.
Within twenty (20) days after the conclusion of the hearing of an application,
or such additional time as the Board may prescribe, the Board chair shall issue
an order approving or disapproving the application, and shall promptly mail a
copy of the order to the applicant.
(5)
Criteria. No special
emphasis will be placed by the Board on an appraisal of economic and
competitive conditions. The Board, at its discretion, may consider the
following factors in arriving at its decision:
(A) Financial condition and history of the
applicant. The current asset and liability condition and history of the
applicant, its compliance with applicable laws and regulations, and its
investment in fixed assets are primary areas of consideration. The applicant's
aggregate fixed asset investment, including lease obligations, must be
reasonable in relation to its projected earnings capacity and capital, and must
comply with Section 414 of the Code.
(B) Adequacy of capital structure. Capital
earnings and retention of earnings should be sufficient to support the
applicant's current level of operations as well as the proposed
expansion.
(C) Future earnings
prospect. The applicant's earnings potential will be evaluated in terms of the
ability of overall bank earnings to absorb the anticipated expenses resulting
from the establishment and operation of the proposed branch.
(D) Quality of management. The applicant's
management must have demonstrated ability to operate the bank in a sound
manner, and must display the degree of depth necessary to permit the
establishment of the proposed branch.
(E) Legal limitations. Any statutory
limitations and requirements regarding the establishment and location of
branches.
(F) Insiders. Any
financial or other business arrangement, direct or indirect, involving the
proposed branch and bank insiders which involve terms and conditions more
favorable to insiders than would be available in a comparable transaction with
unrelated parties.
(G)
Affiliates. The current asset and liability condition and history
of any of applicant's affiliates, and other financial information on such
affiliates which the Board deems relevant. As used in this paragraph,
"affiliate" shall mean any company which the applicant controls, any company
which controls the applicant, or any company under control of a company which
also controls the applicant. For purposes of this paragraph, "control" shall be
presumed to exist when one or more persons acting in concert directly or
indirectly own, control, or have power to vote 25 percent or more of any class
of voting securities of another person; or one or more persons acting in
concert control, in any manner, the election of a majority of the directors,
trustees, or other persons exercising similar functions of another person; or
any other circumstances exist which indicate that one or more persons acting in
concert directly or indirectly exercise a controlling influence over the
management or policies of another person.
(f)
Conditions. The Board's or
Commissioner's approval of an application shall be subject to any condition
deemed by the Board or Commissioner to be relevant to the criteria set forth in
(e)(5) of this Section.
(g)
Commencement of business. The applicant shall commence business at
the branch within eighteen (18) months of Board or Commissioner approval.
Extensions of time within which to commence business may be granted by the
Commissioner only upon good cause shown.
(h)
Reapplication. In the event
an application is disapproved by the Board, the applicant may submit a new
application following a material change of the circumstances which were the
basis for the initial disapproval.
(i)
Judicial review. The
decision of the Board disapprovingan application may be appealed to the
Oklahoma Supreme Court. An appeal shall be commenced and conducted in
accordance with the provisions of Section 207 of the Code.
(j)
Military installation
branch. An application to establish a military banking facility or a
branch on a military installation pursuant to Section 421 of the Code shall be
made in accordance with this Rule 85:10-9-2. Provided, the application shall be
accompanied by a letter of approval from the military installation
commander.
Amended at 10 Ok Reg
1969, eff 5-27-93; Amended at 13 Ok Reg 3233, eff 7-25-96; Amended at 14 Ok Reg
3559, eff 8-1-97 (emergency); Amended at 15 Ok Reg 2952, eff 7-15-98; Amended
at 17 Ok Reg 1495, eff 5-25-00; Amended at 25 Ok Reg 1064, eff
5-25-08
