Section 26-C204. APPLICATIONS BY NONREGIONAL BANK HOLDING COMPANIES

 

204.1Any nonregional bank holding company applying to acquire, pursuant to D.C. Official Code § 26-706.01 a District bank or District bank holding company shall file with the Commissioner Form 5, incorporated into these rules by reference, and obtain a recommendation of the Commissioner and approval of the Council before consummating the acquisition.

 

204.2The Commissioner's recommendation shall be obtained before any action by the Council, and is in addition to any approvals required by federal law.

 

204.3Such a nonregional bank holding company shall also file, as part of its application, information required by Form 3.

 

204.4These applications shall be in addition to the application required by section 201 of these rules. If a charter application is required, these applications shall be in addition to the charter application.

 

204.5Any nonregional bank holding company may make application to the Commissioner to acquire only the following:

 

(a)Any District bank that was in existence on December 18, 1985, and continuously operating for at least two (2) years prior to that date; or

 

(b)Any District bank holding company, all of the District bank subsidiaries of which were in existence on December 18, 1985, and that had been in existence and continuously operating for at least two (2) years prior to that date.

 

204.6Form 5 contains detailed requirements prescribed by D.C. Official Code § 26-706.01. Under these requirements, a nonregional bank holding company applicant shall, at a minimum, do the following:

 

(a)Commit to make loans in a target economic development project in the District, in an aggregate amount equal to or greater than .0625 percent of the applicant's total assets (but not less than fifty million dollars ($50,000,000)).  An applicant shall not be required to commit more than one hundred million dollars ($100,000,000);

 

(b)Commit to open at least two (2) additional banking offices in target banking development areas of the District within three (3) years after the date of acquisition;

 

(c)Agree to cash District and federal government checks for nondepositors as well as depositors within target banking development areas, subject to normal and prudent banking practices for verifying that the person presenting the check is legally entitled to payment;

 

(d)Agree to sell food coupons pursuant to 7 U.S.C. §§ 2011 et seq.;

 

(e)Commit to employ at least 200 District residents or at least one (1) District resident for each two million five hundred thousand dollars ($2,500,000) of total assets (but in no event less than fifty (50) employees) within three (3) years after the date of acquisition;

 

(f)Agree to promote international trade and finance within the District; and

 

(g)Submit an irrevocable letter of credit for ten million dollars ($10,000,000) naming the District as beneficiary (or the equivalent) in the event these commitments and agreements are not fulfilled.

 

204.7Any commitment made pursuant to subsection 204.6(a) of these rules may be satisfied, in part, by investment in the District of Columbia Economic Development Finance Corporation, established pursuant to the District of Columbia Economic Development Finance Corporation Act of 1984, effective June 29, 1984 (D.C. Law 5-89; D.C. Official Code §§ 2.1207.01).

 

204.8In designating target economic development projects, the Commissioner shall place special emphasis on projects located within Development Zones.

 

source

Final Rulemaking published at 35 DCR 6276, 6281-6283 (August 19, 1988).