TITLE 26

BANKS AND BANKING

CHAPTER 27

BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS

26-2722.  Merger — Requirements — Applications. (1) A licensee shall not merge with another corporation unless:

(a)  The licensee is the surviving corporation and the merger is approved by the director.

(b)  The licensee is a disappearing corporation, the surviving corporation is a licensee and the merger is approved by the director.

(2)  A licensee shall not purchase all or substantially all of the business of another person unless the purchase is approved by the director.

(3)  A licensee shall not sell all or substantially all of its business or of the business of any of its offices to another person unless that other person is a licensee and the sale is approved by the director.

(4)  The director shall approve an application for approval of a merger, purchase, or sale, if, and only if, the director determines all of the following:

(a)  That the merger, purchase, or sale will be safe and sound with respect to the acquiring licensee.

(b)  That, upon consummation of the merger, purchase, or sale, it is reasonable to believe that the acquiring licensee will comply with this chapter.

(c)  That the merger, purchase, or sale will not have a major detrimental impact on competition in the providing of financial assistance or management assistance to business firms, or if there will be such a detrimental impact, the merger, purchase, or sale is necessary in the interests of the safety and soundness of any of the parties to the merger, purchase, or sale, or is otherwise, on balance, in the public interest.

History:

[26-2722, added 1989, ch. 252, sec. 1, p. 617.]