Title 26 — Banks and Other Financial Institutions.

(a) A District bank may engage with an out-of-state bank (“applicant”) in an interstate merger transaction where the resulting bank is not a District state bank. The resulting bank from such an interstate merger transaction may maintain and operate the branches in the District of…

Commissioner (a) The Superintendent [Commissioner] may conduct examinations of any branch of an out-of-state state bank established within the District pursuant to an interstate merger transaction to ensure that such branch is operating in a safe and sound manner and to ensure th…

A District state bank that is a subsidiary of a bank holding company may agree to receive deposits, renew time deposits, close loans, service loans, receive payments on loans and other obligations, and perform such other services as the Superintendent [Commissioner] may determine…

If the Superintendent [Commissioner] determines that any law of the District has been violated in the operation of a branch in the District of an out-of-state state bank, or that such branch is being operated in an unsafe or unsound manner pursuant to this subchapter, the Superin…

(a) The Superintendent [Commissioner], pursuant to subchapter I of Chapter 5 of Title 2, shall issue rules to implement the provisions of this subchapter. (b) The proposed rules shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal h…

Except as provided in §§ 19-602.21 to 19-602.26, when a deposit shall have been made in, or shall after May 15, 1928, be made in, or any collection item shall have been placed or shall after May 15, 1928, be placed with any bank, trust company, savings bank, building association,…

When a safety deposit box or vault shall have been hired from any bank, trust company, savings bank, building association, or other banking institution, including national banks, or any other corporation, transacting business in the District of Columbia, in the names of 2 or more…

Notice to any bank or trust company doing business in the District of Columbia of an adverse claim to a deposit standing on its books to the credit of any person shall not be effectual to cause said bank or trust company to recognize said adverse claimant unless said adverse clai…

Whenever a deposit, savings account, or share account, which is in form in trust for another, shall be made or held by any person in any bank, trust company, savings and loan association, building association, building and loan association, or federal savings and loan association…

This chapter may be cited as the “Merchant Bank Act of 2000”.

For the purposes of this chapter, the term: (1) “Affiliate” shall have the same meaning as set forth in § 26-551.02(1). (2) “Appropriate financial institutions agency” means the federal or state agency with statutory authority over the financial institution activities of a financ…

(a) A person described in § 26-833.09(a) may apply for a merchant bank charter by filing a written application with the Commissioner. The application shall include such information as the Commissioner may require by regulation and shall be on such forms and in accordance with suc…

If the Commissioner approves the application of an applicant to be a merchant bank, the Commissioner shall issue to the applicant a charter stating that the applicant is authorized to conduct business as a merchant bank under this chapter.

If a merchant bank fails to maintain the standards and requirements of this chapter, the Commissioner shall, by order, revoke or limit the exercise of the powers of the merchant bank’s authority.

An applicant that is chartered as a merchant bank under this chapter may elect to terminate its charter by giving 60 days prior written notice of the termination to the Commissioner. A termination under this section shall be effective only with the written approval of the Commiss…

(a) Except as provided in this chapter, a merchant bank shall have all the powers and authority of a District-chartered bank or District-chartered savings and loan, including powers and authority with respect to investments, loans, fiduciary and trust functions, and transactions;…

(a) The minimum amount of initial capital for a merchant bank shall be $20 million, of which at least $10 million shall be common stock or an equity interest. The balance may be composed of qualifying subordinated or similar debt as determined under regulations promulgated by the…

(a) A merchant bank may be organized as a corporation, limited liability company, limited partnership, or limited liability partnership. (b) The articles of incorporation or other organizational documents of a merchant bank shall contain the following statement: “This [corporatio…

(a) The board of directors of a merchant bank, if the merchant bank is a corporation, or its equivalent governing body, if the merchant bank is another type of business entity, shall establish a written policy under which the merchant bank’s business activities shall be conducted…

A merchant bank shall not be liquidated except as provided by this chapter or in accordance with the order of a court of competent jurisdiction.

(a) Subject to § 26-1401.15 as it relates to the functional regulatory authority of the Commissioner for the liquidation or rehabilitation of an insurance subsidiary or holding company affiliate, the Commissioner may take possession of the business and property of a merchant bank…

A merchant bank of which the Commissioner takes possession or which is operating under restrictions imposed by the Commissioner may be permitted by the Commissioner to resume business in accordance with the provisions of this chapter and subject to such conditions as may be impos…

(a) The Commissioner may petition the Superior Court to appoint a receiver for a merchant bank if there is a reasonable basis to believe that the merchant bank: (1) Has violated a law, rule, regulation, a condition imposed by the Commissioner in connection with the approval of an…

(a) Subject to Superior Court approval, a receiver shall: (1) Take possession of the books, records, and assets of the merchant bank and collect all debts, dues, and claims belonging to the merchant bank; (2) Sue, defend, compromise, arbitrate, or otherwise settle all claims invo…

(a) Except as provided in subsection (c) of this section, the transfer of, or a lien on, the property or assets of the merchant bank shall be voidable by the receiver if the transfer or lien was: (1) Made or created within one year before the date the Commissioner takes possessio…

(a) With the approval of the Superior Court, a receiver may dispose of records of the merchant bank in receivership that are obsolete and unnecessary to the continued administration of the receivership. (b) The receiver may retain the records of the merchant bank and the receiver…

(a) If any of the grounds under § 26-833.12 authorizing the request for the appointment of a receiver exist or if the Commissioner determines that it is necessary to conserve the assets of a merchant bank for the benefit of the depositors, investors, or other creditors of the ban…

(a) Under the supervision of the Commissioner, the conservator shall take possession of the books, records, and assets of the bank and shall take any action necessary to conserve the assets of the merchant bank pending further disposition of the business of the merchant bank as p…

(a) With the prior approval of the Commissioner, the conservator of a merchant bank may borrow money to aid in the operation, reorganization, or liquidation of the bank, including the payment of liquidating dividends. (b) With the prior approval of the Commissioner, the conservat…

(a) If the Commissioner determines that termination of the conservatorship and resumption of the transaction of the merchant bank’s business by the merchant bank can be achieved and maintained in a safe and sound manner and is otherwise in the public interest, the Commissioner ma…

The Commissioner may prescribe rules governing the activities of merchant banks and implementing this chapter pursuant to subchapter I of Chapter 5 of Title 2. The rules shall take into account the objective of merchant banks to provide needed capital to businesses and the nondep…

(a) It shall be unlawful and illegal to engage in the District of Columbia in the business of loaning money upon which a rate of interest greater than 6% per annum is charged on any security of any kind, direct or collateral, tangible or intangible, without procuring license; and…

Applications for license to conduct such business must be made in writing to the Mayor of the District of Columbia, and shall contain the full names and addresses of applicants, if natural persons, and in the case of firms and voluntary associations, the full names and addresses …

Each application shall be accompanied by a bond to the District of Columbia in the penal sum of $5,000, with 2 or more sufficient sureties, and conditioned that the obligor will not violate any law relating to such business. The execution of any such bond by a fidelity or surety …

Every person, firm, voluntary association, joint-stock company, incorporated society, or corporation conducting such business shall keep a register, approved by said Mayor, showing in English, the amount of money loaned, the date when loaned and when due, the person to whom loane…

No such person, firm, voluntary association, joint-stock company, incorporated society, or corporation shall charge or receive a greater rate of interest upon any loan made by him or it that exceeds the lawful rate in the District of Columbia set by Chapter 33 of Title 28 on the …

Any complaint against a licensee or applicant shall be made in writing to the Mayor and the Mayor, on the basis of a written complaint or his or her initiative, may conduct an investigation. Pursuant to the investigation, the Mayor may suspend, revoke, or deny a license to any ap…

(a) A person violating any provision of this chapter shall, upon conviction, be fined $300, imprisoned for not less than 30 days or more than 90 days, or both. In addition, the court may order any person violating this chapter to make restitution for the value of property illegal…

In any foreclosure on any loan made under this chapter no charges for attorneys’ or agents’ fees shall be made or collected which will exceed 10% of the amount found due in such foreclosure proceedings.

In any contract made in pursuance of the provisions of this chapter it shall be unlawful to incorporate any provision for liquidated or other damages as a penalty for any default or forfeiture thereunder.

(a) Nothing contained in this chapter shall be held to apply to the legitimate business of national banks, licensed bankers, licensed mortgage brokers, licensed mortgage lenders, any person exempt from licensure under § 26-1102 if the activity involves making or brokering a mortg…

The enforcement of this chapter shall be intrusted to the Mayor of the District of Columbia, and the Council of the District of Columbia is hereby authorized and empowered to make all rules and regulations necessary in its judgment for the conduct of such business and the enforce…

(a) No provision of this chapter shall apply with respect to any loan, or to the making of any loan: (1) To any corporation which is unable to plead any statutes against usury in any action; (2) Repealed; (3) Secured on real estate located outside of the District of Columbia; (4)…

For the purposes of this chapter, the term: (1) “Applicant” means a person filing an application for a license under this chapter. (2) “Authorized delegate” means an entity designated by the licensee under the provisions of this chapter to sell or issue payment instruments or eng…

(a) After the effective date of this chapter [July 18, 2000], no person shall engage in the business of money transmission without obtaining a license issued by the Superintendent [Commissioner] under § 26-1009, except as provided in subsection (d) of this section and in § 26-100…

(a) This chapter shall not apply to: (1) The United States or any department, agency, or instrumentality thereof; (2) The United States Post Office; (3) The District of Columbia government; (4) Banks, bank holding companies, credit unions, building and loan associations, savings …

(a) Each licensee under this chapter shall at all times have a net worth of not less than $100,000, calculated in accordance with generally accepted accounting principles. Licensees engaging in money transmission at more than one location or through authorized delegates shall hav…

(a) Each licensee under this chapter shall at all times possess permissible investments having an aggregate market value, calculated in accordance with generally accepted accounting principles, of not less than the aggregate face amount of all outstanding payment instruments issu…

(a) Each application for a license shall be made in writing, under oath, and in a form prescribed by the Superintendent [Commissioner]. (b) For all applicants, each application shall contain: (1) The exact name of the applicant, the applicant’s principal address, any fictitious o…

(a) Each application must be accompanied by a surety bond, irrevocable letter of credit, or such other similar security device acceptable to the Superintendent [Commissioner] in the amount of $50,000. If the applicant proposes to engage in business at more than one location, thro…