SUMMARY:
Public Law 2005, chapter 83, effective May 10, 2005, changed
the definition of a deposit production office and amended
9-B M.R.S.A.
§241(8) 's prohibition
against the operation of a deposit production office to more closely align it
with federal law. As amended, the definition of a deposit production office,
9-B M.R.S.A.
§131(12-B), is
broadened to focus on the credit needs of all Maine communities, rather than
the community where a branch is located. The Bureau of Financial Institutions
amends Regulation 36 to incorporate the statutory changes, which will result in
a State rule that more closely parallels the federal law.
Regulation 36 establishes guidelines that are generally
comparable to the federal rules. It also provides a safe harbor provision, so
that a financial institution authorized to do business in this State that holds
less than two percent (2%) of total Maine deposits would be considered to be in
compliance with
9-B M.R.S.A.
§241(8). This
de minimis threshold percentage recognizes that institutions
that hold less than 2% of total Maine deposits are predominantly community
financial institutions that operate offices only in Maine and, therefore,
almost exclusively serve residents of the State. Numerous alternative
non-financial institution lenders have steadily reduced the reliance on
financial institutions for credit, thereby lessening the impact an individual
community financial institution may have on the availability of funds for
lending in Maine. Therefore, an institution that falls within the safe harbor
will not be deemed to be a deposit production office.
Regulation 36 reduces reporting requirements for Maine
financial institutions and credit unions, by eliminating the annual Branch Loan
and Deposit/Share Survey. As an alternative, the Bureau will rely on aggregate
loan and deposit data contained in Call Reports prepared by financial
institutions for their primary federal regulator and, for institutions that
operate interstate branches, on aggregate Maine loan and deposit data,
identical to that already being reported on a quarterly basis to the
Bureau.
