Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 591-S.F.No. 1086 
           An act relating to commerce; permitting certain 
          charitable trusts to dispose of certain bank assets; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 501. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [501.805] [SALE OF BANKS OWNED BY CHARITABLE 
TRUSTS.] 
    Subdivision 1.  [DEFINITION.] For the purpose of this 
section, a "charitable trust" is a charitable trust subject to 
supervision by the attorney general under the supervision of 
charitable trusts and trustees act, sections 501.71 to 501.81, 
which is required to divest excess business holdings by section 
4943 of the Internal Revenue Code of 1954 and which owned 100 
percent of a bank holding company on May 26, 1969, the date of 
enactment of section 4943 of the Internal Revenue Code of 1954.  
    Subd. 2.  [AUTHORIZATION.] The stock or assets of one or 
more banks or a bank holding company owned directly or 
indirectly by a charitable trust may be sold, assigned, merged, 
or transferred by the charitable trust under the procedures set 
forth in section 48.93 to a bank holding company, bank, or other 
qualified entity as permitted by applicable banking laws without 
regard to whether the entity acquiring the stock or assets is 
located in a reciprocating state.  
     Subd. 3.  [LEGISLATIVE INTENT.] It is the express intention 
of the Minnesota legislature to act pursuant to United States 
Code, title 12, section 1842(d) so as to permit certain 
charitable trusts to sell, assign, or transfer certain financial 
institutions' assets without regard to whether the entity 
acquiring the assets of the charitable trust is located outside 
of this state.  
      Subd. 4.  [ADDITIONAL ACQUISITIONS.] Any bank holding 
company, other than a reciprocating state bank holding company 
as defined in section 48.92, subdivision 8, that directly or 
indirectly acquires control of a bank located in this state 
under the provisions of this section may acquire additional bank 
assets through the expenditure of an amount not to annually 
exceed five percent of the Minnesota assets of the acquired bank 
holding company as of December 31 of the preceding year.  The 
restrictions within this subdivision apply only until the bank 
holding company making an acquisition under this section becomes 
a reciprocating state bank holding company.  This section shall 
not prohibit the bank holding company from being granted a 
charter for a de novo bank or from establishing de novo detached 
facilities pursuant to Minnesota law. 
    Sec. 2.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Approved April 21, 1988