South Carolina General Assembly
105th Session, 1983-1984

Bill 2733

                    Current Status

Bill Number:               2733
Ratification Number:       381
Act Number:                342
Introducing Body:          House
Subject:                   Relating to the examination and approval
                           of the certificate of incorporation of a
                           proposed stock-owned savings and loan
                           association by the State Board of Financial
                           Institutions
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A342, R381, H2733)

AN ACT TO AMEND SECTION 34-26-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXAMINATION AND APPROVAL OF THE CERTIFICATE OF INCORPORATION OF A PROPOSED STOCK-OWNED SAVINGS AND LOAN ASSOCIATION BY THE STATE BOARD OF FINANCIAL INSTITUTIONS, SO AS TO FURTHER PROVIDE FOR THOSE CONDITIONS THE COMPLIANCE WITH WHICH REQUIRES THE STATE BOARD OF FINANCIAL INSTITUTIONS TO APPROVE THE CERTIFICATE.

Be it enacted by the General Assembly of the State of South Carolina:

Certificate of incorporation

SECTION 1. Item (6) of subsection (b) of Section 34-26-50 of the 1976 Code, which was added by the provisions of Act 28 of 1981, is amended to read:

"(6) No stockholder of the proposed association owns or controls more than ten percent of the stock of the association. Notwithstanding the provisions of this chapter, or Title 34, and subject to the approval of the State Board of Financial Institutions, no other financial institution shall hold stock directly or indirectly of ten percent or more in any stock-owned savings and loan association nor shall any such association own stock in any other financial institution; provided, however, this prohibition shall not apply to a savings and loan holding company that owns all of the outstanding stock; provided, further that any such stock used as loan collateral which is acquired by a financial institution by loan default or is acquired as a result of a bankruptcy shall not constitute a violation of this restriction if the acquiring institution divests itself of such stock within ninety days of acquisition;"

Time effective

SECTION 2. This act shall take effect upon approval by the Governor.