Sec. 06.05.277. Providing services as agent.

401 words·~2 min read·/ak/title-6/chapter-5/06-05-277

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)If a state bank complies with this section and if the department approves the provision of the services under this section, the state bank may agree to provide banking services as an agent for a depository institution.

(b)A state bank that proposes to enter into an agency agreement under this section shall file with the department at least 60 days before the effective date of the agreement a request that the department approve the provision of the banking service. The request must include a

(1)notice of intention to enter into an agency agreement with a depository institution;

(2)description of the services proposed to be provided under the agency agreement; and

(3)copy of the agency agreement

(c)Except as provided by

(d)of this section, the commissioner shall decide whether to approve a request submitted under

(b)of this section and shall issue a decision within 60 days after receipt of the request. The department may ask for additional information after reviewing a request received under

(b)of this section. If the department asks for additional information, the 60 days is calculated from the date the department receives the additional information.

(d)When making its decision under

(c)of this section, the department may consider the safety and soundness of the particular state bank and depository institution and whether providing the service is consistent with applicable federal and state law and with safe and sound banking practices.

(e)Before approval under

(c)or

(f)of this section, the department shall give appropriate notice to the public of each request submitted to the department under

(b)of this section.

(f)If the department does not take action on a request submitted under

(b)of this section within the time limit established in

(c)of this section, the request is considered to have been approved by the department.

(g)Notwithstanding the other provisions of this section, a state bank may not, under an agency agreement, provide by itself through an agent an activity that the state bank may not conduct under applicable state and federal law.

(h)The department may order a state bank or another depository institution subject to this title to cease acting as an agent or principal under an agency agreement subject to this section if the department determines that the activity is inconsistent with safe and sound banking practices.