Prohibited acquisitions

(a) Except as expressly permitted under this part, Part 20 of this article, or by federal law, no bank holding company may acquire a bank or a bank holding company controlling a bank chartered by the department. (b) In the event any bank holding company makes an acquisition that is prohibited by this part, the commissioner shall require such bank holding company to divest itself immediately of its direct or indirect ownership or control of any Georgia banks or banking offices located in Georgia. The commissioner shall also have the power to enforce any other prohibitions in this part by requiring divestitures of nonconforming banks, bank holding companies, or assets. Alternatively, the commissioner shall have the power to impose fines and penalties or exercise such other remedies as are provided in this chapter, including, but not limited to, judicial actions. History. Code 1981, § 7-1-623, enacted by Ga. L. 1984, p. 1467, § 1; Ga. L. 1985, p. 149, § 7; Ga. L. 1994, p. 215, § 4; Code 1981, § 7-1-624, as redesignated by Ga. L. 1996, p. 279, § 1; Ga. L. 1997, p. 143, § 7; Ga. L. 2016, p. 390, § 2-20/HB 811. Editor’s notes. Ga. L. 1996, p. 279, § 1, effective April 1, 1996, redesignated former Code Section 7-1-624 as present Code Section 7-1-625. 322 7-1-625 7-1-625. Provisions applicable to, and qualification of, bank holding companies in state; reciprocal agreements; confidentiality of reports. (a) Any Georgia bank holding company controlling a bank having banking offices in Georgia and any out-of-state bank holding company controlling a Georgia state bank shall be subject to the provisions of Code Sections 7-1-605 through 7-1-611 and the rules and regulations of the department applicable to bank holding companies. (b) Any out-of-state bank holding company that has a bank subsidiary with banking offices in Georgia that is not otherwise organized under the laws of this state or qualified to do business in this state shall qualify to do business in this state as a foreign corporation. (c) The department may enter into cooperative and reciprocal agreements with the bank regulatory authorities of any state or the United States for the periodic examination of bank holding companies and may accept reports of examination and other records from such authorities in lieu of conducting its own examinations. The department may enter into joint actions with other regulatory bodies having concurrent jurisdiction or may enter into such actions independently to carry out its responsibilities under this title and assure compliance with the laws of this state. Any examinations or reports originated by Georgia or by another bank supervisory agency shall be deemed and treated as confidential according to Georgia law, and such confidentiality shall not be affected by the sharing of the examinations or reports. The department shall not be obligated to provide or disclose such examinations and reports to any third party. Agreements to share such examinations or reports shall contain provisions for dealing with confidentiality and subpoenas. History. Code 1981, § 7-1-624, enacted by Ga. L. 1984, p. 1467, § 1; Ga. L. 1994, p. 215, § 5; Code 1981, § 7-1-625, as redesignated by Ga. L. 1996, p. 279, § 1; Ga. L. 2018, p. 214, § 12/HB 780; Ga. L. 2022, p. 220, § 20/HB 891; Ga. L. 2023, p. 651, § 9/HB 55, effective July 1, 2023. Amendments. The 2022 amendment, effective July 1, 2022, inserted “Georgia” following “Any” and “and any out-of-state bank holding company controlling a Georgia state bank” in subsection (a); in subsection (b), inserted “out-of-state” following “Any” in the first sentence and deleted the former last two sentences, which read: “Such bank holding company shall agree to be bound by all the provisions of Code Sections 7-1-605 through 7-1-612 and by the provisions of this part. Any bank holding company having a Georgia bank subsidiary shall promptly advise the department of any changes in its registered office and agent.”; and, inserted “or the United States” in the first sentence in subsection (c). The 2023 amendment, effective July 1, 2023, substituted “Code Sections 7-1605 through 7-1-611” for “Code Sections 7-1-605 through 7-1-612” in subsection (a). Editor’s notes. Ga. L. 1996, p. 279, § 1, effective April 1, 1996, redesignated former Code Section 7-1-625 as present Code Section 7-1-626. 323 Ga. L. 2018, p. 214, § 26(b)/HB 780, not codified by the General Assembly, provides that: “It is not the intent of the 7-1-628 General Assembly to affect the law applicable to litigation pending as of March 9, 2018.” 7-1-626. Severability; construction with other laws.