Regulatory Alerts2005-04-11
Addition of Directors and Executive Officers of Troubled State-chartered Institutions and Holding Companies
The commissioner of financial institutions requires state-chartered financial institutions and holding companies in troubled condition to obtain prior approval before adding directors or employing executive officers. Applicants must submit a standardized or commissioner-developed form at least thirty days before the proposed effective date, triggering a mandatory written approval or disapproval notice within forty-five days that may be extended for good cause. Disapproval is mandated if an individual's competence, experience, character, or integrity threatens depositors' or public interests, while "troubled condition" is defined by specific regulatory ratings, insurance proceedings, or cease-and-desist orders.
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