House Bill 1195

AN ACT TO AMEND SECTION 81-7-7, MISSISSIPPI CODE OF 1972, TO AUTHORIZE OUT-OF-STATE BANKS THAT DO NOT ALREADY MAINTAIN A BRANCH IN MISSISSIPPI TO ESTABLISH AND MAINTAIN A BRANCH IN MISSISSIPPI THROUGH THE ACQUISITION OF A BRANCH BANK OR BRANCH OFFICE OR THE ESTABLISHMENT OF A BRANCH BANK DE NOVO; TO AMEND SECTION 81-7-23, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING SECTION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 81-7-7, Mississippi Code of 1972, is amended as follows:

81-7-7. (1) For purposes of this section and Section 81-7-8, "branch bank de novo" or "branching de novo" refers to a branch established by the opening of a new branch bank and includes a branch bank or branch office acquired from another bank without acquiring substantially all of the assets of the other bank.

(2) Subject to the restrictions contained in Section 81-7-8, a bank may establish:

(a) Branch banks de novo * * *, subject to compliance with the procedures set forth in Section 81-7-1; and

(b) Branch banks by the merger or consolidation with, or the purchase of all or substantially all of the assets of, any other bank located in Mississippi * * *.

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Compliance with the procedures set forth in Section 81-7-1 is not required to establish branch banks under paragraph (b) of this subsection.

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(3) The bank resulting from a merger, consolidation or purchase may retain and operate as branch banks any of the parent offices, branch banks or branch offices of the banks participating in the transaction.

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(4) An out-of-state bank that does not already maintain a branch in Mississippi and that meets the requirements of this title may establish and maintain a branch in Mississippi through the acquisition of a branch bank or branch office or the establishment of a branch bank de novo, subject to compliance with the procedures set forth in Section 81-7-1 for establishment of a branch bank de novo. However, no branch of an out-of-state bank may be established through the acquisition of a branch bank or branch office or the establishment of a branch bank de novo unless the laws of the home state of the out-of-state bank permit Mississippi banks to establish and maintain branches in that state through the acquisition of a branch bank or branch office or the establishment of a branch bank de novo under substantially the same terms and conditions as set forth in this title.

SECTION 2. Section 81-7-23, Mississippi Code of 1972, is amended as follows:

81-7-23. The provisions of this chapter apply to branching within the State of Mississippi by:

(a) Banks chartered by the State of Mississippi or national banks having their headquarters in the State of Mississippi; * * *

(b) Out-of-state banks which maintain a branch in the State of Mississippi subsequent to an interstate branching transaction pursuant to Chapter 23, Title 81, Mississippi Code of 1972, known as the "Interstate Bank Branching Act"; and

(c) Out-of-state banks that establish a branch in Mississippi through the acquisition of a branch bank or branch office or the establishment of a branch bank de novo.

SECTION 3. This act shall take effect and be in force from and after its passage.