The proposed bill amends various sections of the Code of West Virginia concerning banking and credit unions, particularly focusing on the establishment of branch banks and the processes for mergers and acquisitions. A key change is the requirement that no banking institution or credit union may establish a branch or engage in a merger unless it is insured by the Federal Deposit Insurance Corporation (FDIC). This new legal language is incorporated into sections 31A-8-12, 31A-8A-5, and 31A-8D-4, highlighting the necessity of FDIC insurance for both branch establishment and acquisition processes. The bill also emphasizes maintaining a robust regulatory framework by requiring evaluations of the financial condition of the institutions involved and the potential impact on competition before approving applications for branch banks or mergers.

Furthermore, the bill outlines specific conditions under which a membership vote is required for merging credit unions, with provisions for waiving this requirement in cases of insolvency. It details the final approval process for merger plans, ensuring that members' rights are preserved. Additionally, the bill allows the commissioner to authorize mergers or asset purchases involving insolvent credit unions without prior hearings under certain emergency conditions. It also stipulates that any institution insured by the FDIC can acquire assets or assume liabilities of an insolvent credit union, with the provision that insured accounts may be converted to comparable accounts in the acquiring institution. Overall, the bill aims to enhance the stability and safety of banking practices in West Virginia by enforcing stricter insurance requirements and maintaining oversight on banking activities.

Statutes affected:
Introduced Version: 31A-8-12, 31A-8A-5, 31A-8D-4, 31C-10-2