The bill amends the Code of West Virginia by adding a new section, 31A-1-7, which governs the sale or transfer of all or substantially all assets of state-chartered banks. It stipulates that any buyer or transferee must be insured by the Federal Deposit Insurance Corporation (FDIC). Additionally, the bill allows interested parties, such as banks or bank holding companies authorized to operate in West Virginia, to seek equitable relief, including injunctions or restraining orders, to enforce these provisions.

The legislation clarifies that the prohibition on selling or transferring assets to entities not insured by the FDIC does not apply in certain circumstances, specifically to agreements executed prior to the enactment of this section. This amendment aims to enhance the regulatory framework surrounding bank asset transfers while ensuring that transactions are conducted with insured entities, thereby promoting financial stability within the state’s banking system.

Statutes affected:
Introduced Version: 31A-1-7
Committee Substitute: 31A-1-7
Engrossed Committee Substitute: 31A-1-7
Enrolled Committee Substitute: 31A-1-7