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Department of Professional and Financial Regulation
State of Maine
July 21, 1997


To the Chief Executive Officer Addressed:

Title 9-B M.R.S.A. §§332.2 and 335.1, as amended by the Universal Bank Charter bill signed into law on June 5, 1997, provide that a financial institution (bank, thrift and credit union) may establish or relocate a branch in Maine without the Superintendent's prior approval if the financial institution (1) meets the minimum capital standards set forth in §§412-A or 832 and any rules adopted pursuant to these sections, and (2) is not under an enforcement action that requires the Superintendent's prior approval of a branch establishment or relocation. The financial institution, however, must inform the Bureau at least ten days prior to the opening of the newly established or relocated office.

Regulation #27 implements §412-A and, in general, sets the minimum acceptable leverage capital requirement for banks at a ratio of Tier 1 capital to total assets of not less than 4.0%. Pursuant to §832, the minimum capital for a credit union generally is 4.0% of loans and risk assets; risk assets are defined in Bulletin #47. However, the minimum capital requirement for an individual institution may be higher, depending upon the institution's level and nature of risks.

A financial institution that is establishing or relocating a branch and anticipates utilizing this informational notice is advised to contact the Bureau in advance of submitting its ten day notice to ensure that it meets its minimum capital requirements and to avoid having to delay consummating the proposed transaction. This notice to the Bureau should include the complete address of the branch, the institution's capital ratio as of the most recent quarter-end, and the date the newly established or relocated branch will open for business. The $100 recording fee, established by §332.2, should accompany the notice.

Financial institutions are reminded that these changes are limited solely to the Bureau of Banking and do not affect an institution's responsibility to comply with the requirements of its primary federal regulator. The FDIC has indicated that it probably will continue to grant its approval on the condition that all necessary Bureau approvals have been obtained. The financial institution should respond to the FDIC that, based on Maine law, no approval by the Bureau is necessary and that the ten day notification satisfies state requirements.

H. Donald DeMatteis


NOTE: This bulletin is intended solely for informational purposes. It is not intended to set forth legal rights, duties or privileges nor is it intended to provide legal advice. Readers are encouraged to consult applicable statutes and regulations and to contact the Bureau of Banking if additional infor December 11, 2006 >

Last Updated: June 5, 2013