Regulatory Alerts2010-10-15 | ISGC-2010-003-DOBISGC-2010-003-DOB — Alien Bank Branch Paid-In Capital Requirement Under Ch. 30.42 RCW Compliance By Alternative Pledge of Savings Account in Third-Party Bank Within State
The Washington Department of Financial Institutions granted conditional authority to a Japanese alien bank to maintain its required paid-in capital at a Los Angeles branch while operating a Seattle branch with no assets. The Department determined that RCW 30.42 allows this arrangement provided the capital is deposited with a Washington-based national bank and secured by a control agreement granting the Department direct oversight. This approval facilitates the bank's hub-and-spoke restructuring while ensuring creditor protection through strict regulatory control over the pledged funds.
Share