1997 Minnesota Statutes

     48.993 Reciprocal interstate branching. 

    With the prior approval of the commissioner, a bank doing 
 business in the state of Iowa, North Dakota, South Dakota, or 
 Wisconsin may establish a de novo detached facility in this 
 state not more than 30 miles from its principal office measured 
 in a straight line from the closest points of the closest 
 structures provided further that:  

    (a) There is in effect in the home state a statute, rule, 
 or ruling that permits Minnesota home state banks to establish 
 de novo branches in the state under conditions substantially 
 similar to those imposed by the laws of Minnesota as determined 
 by the commissioner.  

    (b) There is in effect a cooperative agreement between the 
 home state and host state banking regulator to facilitate their 
 respective regulation and supervision of the bank including 
 application and approval process, and the coordination of 
 examinations.  The agreement must at a minimum provide:  

    (1) common form and information requirements to be 
 completed by the applicant bank; 

    (2) common form and procedure required to publish the 
 application in the location of the branch in the host state; 

    (3) a fee for the application to the state of Minnesota, 
 department of commerce, for filing and approval as the host 
 state of the application of $500; 

    (4) the requirements and limitations on the location and 
 operations of an interstate branch must be the same as for host 
 state branches in sections 47.51 to 47.55.  Transfer of location 
 under section 47.56 is limited by this section; 

    (5) the branch is subject to the laws of the host state 
 relating to banking in resolution of conflicts of laws between 
 the home and host state; and 

    (6) the deposits of the bank must be insured by the Federal 
 Deposit Insurance Corporation. 

    (c) The home state banking regulator has granted any and 
 all necessary approvals.  

    (d) Beginning one year following establishment of a 
 detached facility in a host state, the home state bank's level 
 of lending in the host state relative to the deposits from the 
 host state shall not be less than half of the level of the 
 bank's loan to deposit ratio in its home state operations.  The 
 bank shall maintain sufficient records to permit an examination 
 to determine compliance with this requirement by the host state 
 banking regulator.  If the bank is found to be in noncompliance, 
 the home state or host state banking regulator may order that an 
 interstate branch of the bank in the host state be closed. 

    (e) For purposes of this section, "home state" has the 
 meaning given in section 48.92, and "host state" means a state 
 other than the home state. 

    HIST: 1995 c 202 art 4 s 20 

*   NOTE:  This section expires May 31, 1997.  Laws 1995, 
*chapter 202, article 4, section 24.