Title 6 — Banks and Financial Institutions

In applying and construing this article, a court shall consider the promotion of uniformity of the law among jurisdictions that enact it.

This article applies to: 1. A special deposit made under an account agreement executed on or after September 26, 2025; and 2. A deposit made under an agreement executed before September 26, 2025, if: (a) All parties entitled to amend the agreement agree to make the deposit a spec…

If a provision of this article or its application to a person or circumstance is held invalid, the invalidity does not affect another provision or application that can be given effect without the invalid provision.

Banks that are not members of the federal reserve system shall maintain such legal reserves as are from time to time fixed by rule of the deputy director, not to exceed fourteen percent of demand deposits or seven percent of time and savings deposits.

In determining the legal reserves required by this article a bank may deduct from its gross deposits such deposits as are lawfully secured and each deposit balance due to another bank to the extent of a reciprocal deposit due from such other bank.

Legal reserves shall consist of: 1. Cash. 2. Cash items in the process of collection payable immediately on presentation in the United States. 3. Unpledged obligations of the United States maturing not more than six months after the date the obligation is used for reserve purpose…

Compliance with reserve requirements shall be determined as of the close of business on the first Thursday following the effective date of this chapter and every alternate Thursday thereafter on the basis of the average daily reserves maintained during the fourteen day period end…

In this article, unless the context otherwise requires: 1. "Acquire" as applied to an in-state financial institution means any of the following actions or transactions: (a) The merger or consolidation of an in-state financial institution with an out-of-state financial institution…

A. Except as otherwise expressly allowed by federal law, an out-of-state financial institution shall not acquire an in-state financial institution unless the deputy director has approved the acquisition. The deputy director shall not approve an acquisition unless the deputy direc…

An out-of-state financial institution may establish a bank, savings and loan association or holding company in this state through de novo entry subject to the applicable laws of this state. An in-state financial institution may not be acquired for operation as a branch by an out-…

The deputy director shall rule on any application submitted under section 6-322 not later than sixty days following the date the application is filed with the division. If the deputy director fails to rule on the application within the required sixty-day period, the failure to ru…

The deputy director shall deny an application for acquisition of an in-state financial institution if the deputy director finds any of the following: 1. The financial condition of the acquiring out-of-state financial institution is such that it may jeopardize the financial stabil…

A. Any bank, savings and loan association, out-of-state financial institution or holding company doing business as such in this state is subject to the applicable laws of this state and all the rules adopted pursuant to such laws, including examination and supervision by the depu…

A. Neither an out-of-state financial institution nor an in-state financial institution shall acquire another out-of-state financial institution or in-state financial institution if either of the following conditions exist: 1. The resulting out-of-state financial institution, in-s…

A. Except as prescribed by subsection B of this section, a person shall not establish or operate a deposit production office or similar office in this state for the purpose of soliciting deposits or similar evidence of indebtedness or participation interests in indebtedness. B. T…

Except as prohibited by federal law, an out-of-state bank doing business in this state, including any special purpose depository institution that is chartered as a bank, has all of the rights, powers and privileges and is entitled to the same exemptions and immunities as a compar…

A. If the deputy director determines that a branch that is maintained in this state by an out-of-state bank is being operated in violation of any law of this state or any rule adopted by this state or that the branch is being operated in an unsafe or unsound manner, the deputy di…

In this article, unless the context otherwise requires: 1. "Capital" means the aggregate primary capital and secondary capital. 2. "Obligation" means a primary or contingent liability for the payment of money. 3. "Person" includes an individual, a corporation, government or gover…

A. A bank may lend to a single borrower an amount equal to not more than twenty percent of its capital, plus an amount equal to an additional ten percent of its capital if the additional amounts are fully secured by readily marketable collateral that has a market value, as determ…

A. No bank shall make any loan to any of its own directors, officers or employees that shall cause the outstanding loans of the bank to such person to exceed one percent of the capital account of the bank unless the loan is expressly authorized by the board of directors with any …

No bank shall take or hold its capital stock or its capital obligations as security for an obligation to the bank unless such security is necessary to prevent loss on an obligation previously contracted.

A bona fide change loan of ten thousand dollars or less, for a term not to exceed four days, which entails the services of furnishing coins or currency in specific amounts required by the borrower, may be compensated for, at the option of the bank, in lieu of interest, by a servi…

A bank may not engage in the trust business unless authorized by its banking permit. A bank which engages in the trust business is subject to the provisions of chapter 8 of this title in the administration of its trust accounts.

The prohibitions, limitations and restrictions on the transactions of a bank in dealing with its general assets shall not be applicable to a bank in the exercise of its powers as a fiduciary over assets held in such capacity or with respect to obligations incurred in such capacit…

Except as may be otherwise provided by law or by the writing creating the trust, a bank holding any asset as a fiduciary shall segregate all such assets from the general assets of the bank and shall maintain such safekeeping methods and records that the assets of each trust may b…

Cash held by a bank as fiduciary may be deposited to the credit of the bank as such fiduciary on time or demand account with itself or with any other bank the deposits of which are insured by the federal deposit insurance corporation. Unless otherwise provided by the writing crea…

Any fiduciary capacity of a trust company, a bank or a savings and loan association as trustee, executor, administrator, guardian, conservator, registrar of stocks and bonds, assignee, receiver or any other fiduciary capacity may be transferred to and assumed by a bank authorized…

In the absence of an express provision to the contrary, if an indenture or other governing instrument directs, requires, authorizes or permits investment in United States government obligations, a bank, trust company, trust department or other fiduciary may invest in the obligati…

It is unlawful for any person to engage in this state in the banking business as defined in section 6-201 or to make use of the word "bank" or any other words in a manner reasonably calculated to convey the impression that the person is engaged in the banking business in this sta…

A. No person may own or control a financial institution and at the same time have an interest in an insurer that directly or indirectly insures or purports to insure the deposit accounts of the financial institution. B. No insurer of the deposit accounts of a financial institutio…

If the status of a bank as an insured bank is terminated by the federal deposit insurance corporation or the deputy director finds that a bank is in such an unsafe or unsound condition that it is or will become unable to meet the anticipated demands of its depositors and that the…

When the deputy director has taken possession of a bank and until the appointment and qualification of the receiver, or the adjudication that no ground for the receivership exists, the deputy director shall be vested with the full and exclusive power of management and control. Th…

If the court grants the application for receivership of a bank it shall first tender the appointment as receiver to the federal deposit insurance corporation, which is authorized to qualify and act without bond. If the corporation accepts the appointment it shall have all of the …

The federal deposit insurance corporation may pay out and acquire the insured deposit liabilities of a bank notwithstanding the possession by the deputy director or the pendency of receivership proceedings and for such purposes shall have the use of the facilities and records of …

The federal deposit insurance corporation shall be subrogated to the rights of depositors upon payment of their claims to the extent required by the law of the United States as a condition of the authority to insure deposits or make such payment.

A. Every lien against any asset of a bank obtained by attachment, judgment, levy or other legal or equitable process or proceedings after the filing of the application for the appointment of a receiver under this article shall be null and void as to the receiver and to any purcha…

A. After taking possession of the bank, the receiver may do any of the following in its own name, in the name of the bank, in the name of both or otherwise: 1. Collect all obligations and money due the bank. 2. Exercise and possess all the rights, powers and privileges of the ban…

A. The receiver may sell all or any part of the bank's assets to another bank, to a savings and loan association, to the federal deposit insurance corporation or to an instrumentality of the United States government. The receiver may borrow from the federal deposit insurance corp…

The receiver may at his election reject any executory contract to which the bank is a party or any obligation of the bank as a lessee of real or personal property. The claim of a lessor for damages for injury resulting from the rejection of an unexpired lease of real property or …

As soon after the commencement of liquidation as practicable the receiver shall cause notice of the liquidation to be published in a newspaper of general circulation in each county in which the bank has an office, once a week for eight successive weeks. The notice shall demand th…

A. As soon after the commencement of liquidation as practicable the receiver shall cause notice to be given by mail to each person at the address shown on the records of the bank who appears from the records to be a bailor of property held by the bank or a lessee of a safety depo…

A. Claims allowed in a proceeding under this article shall be paid in the following order: 1. Costs and expenses of the administration of the receivership and liquidation. 2. Taxes due to this state. 3. Claims with priority under the laws of this state and under federal law. 4. C…

From time to time after full provision has been made for the payment of disputed claims and claims having priority, the receiver shall make ratable distribution on all claims that have been proved to his satisfaction or adjudicated in a court of competent jurisdiction. After all …

A bank may voluntarily dissolve and wind up its affairs as any other corporation under the provisions of title 10, but a plan of liquidation or dissolution shall not be submitted to the stockholders until the deputy director on application by the bank finds that the bank has asse…

A transaction that occurs within six months after the date on which the deputy director takes possession of a bank is voidable by the receiver if the transaction has the effect of enabling a creditor, affiliate, officer, director, stockholder or employee, or a relative of any of …

On taking possession of the property and business of a bank, the receiver shall give notice of the taking to all persons who hold any assets of that bank. The notice required by this section is not a prerequisite to taking possession. A person who knows of the taking may not clai…