C.M.R. 02, 029, ch. 137 - INTERSTATE BRANCH ASSESSMENT (REG. 37)

SUMMARY: On April 8, 1996, P.L. 628 was enacted into law. Through amendments to the Maine Banking Code, State law permits interstate mergers and establishment or acquisition of interstate branches effective January 1, 1997. To compensate for reasonable expenses incurred by the Bureau in fulfilling its responsibility to regulate interstate branch activities, this legislation provided for the establishment of an annual assessment to be paid by each out-of-state financial institution that operates branch(es) in Maine. This rule sets forth the amount and timing of payment of this assessment.

BASIS STATEMENT

On January 1, 1997, Maine laws authorizing interstate mergers and the operation of interstate branches by financial institutions will become effective. State-chartered banks that branch into Maine will be subject to consumer protection laws and regulation by the Bureau of Banking. This rule establishes a nominal per branch fee to be paid by out-of-state entrants to offset the cost of regulatory oversight.

A notice to interested parties was mailed on or about November 8, 1996, and published on or about November 20, 1996. Comments were solicited through December 20, 1996. No comments were received; therefore, the rule is being adopted as proposed.