This bill amends various sections of the Code of West Virginia concerning banking and credit unions, with a primary focus on the establishment of branch banks and the processes for mergers and acquisitions. A significant new requirement mandates that no bank or credit union can establish a branch or engage in a merger or acquisition unless it is insured by the Federal Deposit Insurance Corporation (FDIC). This requirement is incorporated into the amendments of sections 31A-8-12, 31A-8A-5, and 31A-8D-4, ensuring that only financially secure institutions are permitted to expand or consolidate. The bill also updates procedural aspects, such as eliminating certain timeframes for intervention petitions and clarifying the approval process for branch banks and mergers.

Additionally, the bill stipulates that merging credit unions must conduct a membership vote after receiving preliminary approval from the commissioner, unless waived due to insolvency. It outlines the final approval process for merger plans, ensuring the protection of members' rights and establishing conditions under which the commissioner can authorize mergers involving insolvent credit unions without prior hearings if specific emergency criteria are met. The legislation also restricts mergers between West Virginia credit unions and out-of-state credit unions unless reciprocal terms are allowed by the other state. Overall, the bill aims to enhance the stability and security of the banking and credit union systems in West Virginia through stringent requirements for mergers and acquisitions.

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