SB 665
Ensuring that survivor of merger, reorganization, purchase, or assumption of liabilities of bank chartered by WV is insured by FDIC
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill aims to protect depositors in West Virginia by requiring that any entity purchasing the assets and liabilities of a West Virginia-chartered bank after a merger, reorganization, purchase, or assumption must be insured by the Federal Deposit Insurance Corporation (FDIC). The bill also grants the Commissioner of the Board of Banking and Financial Institutions the authority to seek court orders to prevent transactions involving unqualified buyers. It includes exceptions for agreements already in place before the bill’s enactment and subsequent modifications to those agreements.
Key provisions
- Requires buyers of West Virginia banks after mergers, purchases, or assumptions to be FDIC-insured.
- Grants the Commissioner the power to seek equitable relief to prevent prohibited transactions.
- Establishes a process for seeking court orders to block transactions involving unqualified buyers.
- Includes an exception for agreements executed before the bill’s enactment.
- Allows for subsequent amendments to existing agreements without triggering the prohibition.
- Clarifies that the Commissioner retains existing authority under relevant state banking regulations.
Who is affected
- West Virginia banks
- Potential buyers of West Virginia banks
- FDIC
- Bank customers and depositors in West Virginia
- The Board of Banking and Financial Institutions
Notable changes
- Creates a specific requirement for FDIC insurance in the event of a bank sale or transfer.
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