Legal Seminar, Denver, CO
CSBS Legal Conference Panel on Legal Issues and De Novo Banks (Wednesday, July 18, 2:30 pm MDT) Discussion Outline
Legal Nuts and Bolts I.
High Level Process Overview Two key elements to forming a de novo bank a. Obtain permission from chartering authority from the state b. Obtain FDIC insurance from the FDIC c. (If forming a holding company, must also get HoCo approval from the Fed)
II.
Statutory Criteria a. Overview b. Potential Hurdles
i. Convenience and needs ii. Economic support and reasonable chance for success – Camp v. Pitts, 411 U.S. 138 (1973) iii. ___ ‐ (Texas case – see if lower court provides factual context) iv. Character and fitness 1. Breach of fiduciary duty 2. Other “hypothetical examples” Legal Challenges to Chartering Decisions a. Consider whether the legal avenue challenge is based on is appropriate. i. Administrative Procedures Act 1. Have the exhausted their administrative remedies ii. Tort claims act – maybe not the right vehicle See Magellsen v. FDIC, 341 F. Supp. 1031 (D. Mont. 1972) b. How your state’s administrative law applies to your agency’s decision – especially if the decision is challenged i. Applicant challenges denial ii. Third party challenges the application (State Banking Bd. V. Allied Bank, 748 S.W.2d 447 (Texas 1988)) c. Administrative law standard of review i. Iowa – 2 types of challenges to agency action 1. Contested case proceeding (evidentiary hearing) 2. Other agency action ii. The applicable standard of review is different depending on what type of challenge it is 1. Contested case proceeding (very deferential to the agency) 2. Other agency action (several different potential tests – boil down to arbitrary and capricious) iii. You need to figure out what kind of challenge it is
Additional Legal Considerations III.
Made with FlippingBook - Online magazine maker