(A) With the approval of the board, the organizers may file articles of incorporation for the proposed bank, building and loan association, savings and loan association, or savings bank with the Secretary of State. The board shall authorize the organization of the proposed bank, building and loan association, savings and loan association, or savings bank if the commissioner is satisfied that each of the following conditions are met:
(1) the application is complete;
(2) the examination as provided for in Section 34-1-150(C) indicates that the requirements for the issuance of a charter to the applicant as described in Section 34-1-180 are reasonably likely to be satisfied; and
(3) the proposed name of the proposed bank, building and loan association, savings and loan association, or savings bank is not likely to mislead the public as to its character or purpose and is not the same as a name already adopted by an existing depository institution or trust institution operating in this State.
(B) If the board approves the organization of the proposed bank, building and loan association, savings and loan association, or savings bank, the board shall issue a certificate to the Secretary of State. The Secretary of State shall transmit to the board a certified copy of the filed articles of incorporation of the proposed bank, building and loan association, savings and loan association, or savings bank.
(C)(1) Unless and until the board approves and issues a charter to the proposed bank, building and loan association, savings and loan association, or savings bank, it may not transact any business except as is incidental and necessary to its organization or the application for a charter or preparation for commencing the business of banking.
(2) All funds, other than its operational expense fund from which to pay organizational expenses, and paid-for shares of the proposed bank, building and loan association, savings and loan association, or savings bank must be placed in escrow under a written escrow agreement with a third-party escrow agent satisfactory to the commissioner.
(3) All funds for shares placed into escrow and all dividends or interest on the funds may be removed from escrow only with the commissioner's approval except to the extent that the funds are refunded to subscribers or as otherwise required by law.
(D) A proposed bank, building and loan association, savings and loan association, or savings bank is subject to the jurisdiction of the commissioner and the board.
HISTORY: 2021 Act No. 30 (S.467), Section 1, eff May 6, 2021.
Structure South Carolina Code of Laws
Title 34 - Banking, Financial Institutions and Money
Chapter 1 - State Board Of Financial Institutions
Section 34-1-20. Appointment of members.
Section 34-1-30. Terms of members; vacancies.
Section 34-1-40. Expenses of members.
Section 34-1-50. Office space.
Section 34-1-80. Examining department; Commissioner of Banking.
Section 34-1-90. Commissioner of Banking shall report criminal violations to Board.
Section 34-1-100. Initiation of criminal prosecutions.
Section 34-1-120. Penalties for obstructing Commissioner of Banking.
Section 34-1-130. Study of capital reserve position of financial institutions; report.
Section 34-1-140. State preemption of lender regulation.
Section 34-1-150. Requirements for applicant seeking permission to organize a bank.
Section 34-1-160. Authorization of organization of proposed bank; articles of incorporation.
Section 34-1-170. Requirements for articles of incorporation of proposed bank.
Section 34-1-180. Requirements for board to approve a charter for proposed bank.
Section 34-1-210. Remote service unit not considered a branch of a bank.
Section 34-1-220. Delegations to the Commissioner of Banking.