Transition Provision

Transition Provision. (a) Commonwealth banks which have a valid banking license meeting the present requirements of regulations issued by the Department of Commerce and Labor covering bank licensing, have at least five resident employees, are open to the general public, and are actively conducting a banking business with at least 50 depositors and borrowers as of February 6, 1984, shall comply with 4 CMC §§ 6203, 6212 and 6214 as of February 1, 1984; provided, the director may extend the time for compliance for up to one year upon a showing of good cause. Those banks need not comply with 4 CMC § 6215. (b) If the director certifies that Commonwealth government or private depositor insurance or bonding is available to Commonwealth banks, they shall obtain the bonding or insurance within six months of such certification. In addition, any such Commonwealth bank may secure deposits of less than $5,000 by obligations of the governments of the Commonwealth and the United States, its agencies, or chartered corporations, and such security shall have the highest priority lien that the Commonwealth can lawfully accord in the event of a bank failure or bankruptcy. (c) A Commonwealth bank that meets the requirements of 4 CMC § 6227(b) shall have until June 1, 1987, in which to comply with 4 CMC § 6215. Source: PL 3-104, § 216, modified; amended by PL 4-48, § 1. Commission Comment: With respect to the references to the “Department of Commerce and Labor” and the “director” of that agency, see Executive Order 94-3 (effective August 23, 1994), reorganizing the executive branch, changing agency names and official titles, and effecting other changes, set forth in the Commission comment to 1 CMC § 2001.