Provisions Governing Interstate Merger Transactions Once Authorized

(a)Immediately upon the authorization of interstate merger transactions in Guam, one

(1)or more Guam banks may enter into an interstate merger transaction with one

(1)or more out-of-state banks under this Article, and an out-of-state bank resulting from the transaction may maintain and operate the branches CH. 106 BANKS in Guam of a Guam bank that participated in the transaction, if the conditions and filing requirements of subsections

(b)and

(c)of this Section are met.

(b)The following conditions shall apply to any merger between a Guam bank and an out-of-state bank:

(1)An interstate merger transaction resulting in the acquisition by an out-of-state bank of a Guam bank, or of all or substantially all of the branches of a Guam bank, shall not be permitted under this Article unless the Guam bank shall have been in continuous operation as a Guam bank, on the date of such acquisition, for a period of at least five

(5)years.

(2)For the purposes of Paragraph (1), a Guam bank chartered solely for the purpose of acquiring another Guam bank is considered to have been in existence for the same period as the Guam bank to be acquired, so long as it does not open for business at any time before acquisition.

(3)The Commissioner may waive the restriction in Paragraph

(1)in the case of a Guam bank that

(A)has been determined by a federal bank supervisory agency to be default or in danger of default, or

(B)is to be acquired in an interstate merger transaction involving assistance under Section 13(c) of the Federal Deposit Insurance Act.

(4)There shall be no limit under Guam law on the percentage of the total amount of deposits in insured depository institutions in Guam that may be held or controlled by an out-of-state bank, including all insured depository institutions that are its affiliates, as a result of an interstate merger transaction by such out-of-state bank with a Guam bank.

(c)Any out-of-state bank that will be the resulting bank pursuant to an interstate merger transaction involving a Guam bank shall notify the Commissioner of the proposed merger not later than the date on which it files an application for an interstate merger transaction with the responsible federal supervisory agency, and shall submit a copy of that application to the Commissioner and pay such filing fees as the Commissioner may establish by rule. The filing fees shall be non-refundable. Any territorial bank which is a party to an interstate merger transaction shall comply with Article 3 of this Chapter to the extent applicable, including § 106309 thereof, and with other applicable laws. If the resulting bank in the interstate merger transaction is an out-of-state bank, the Commissioner shall not accept for filing the agreement of merger pursuant to § 106306 of this Chapter until the out-of-state bank has filed a confirmation in writing of compliance with this Section. If the resulting bank in the interstate merger transaction is an out-of-state bank which is a national bank, the resulting bank shall file with the Commissioner a confirmation in writing of compliance with this Section.