§53-226. Definitions

For the purposes of this Article:

(1)        "Bank" means any insured bank as the term is defined in Section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. Section 1813(h)), or any institution eligible to become an insured bank as the term is defined therein, which, in either event:

a.         Accepts deposits that the depositor has a legal right to withdraw on demand; and

b.         Engages in the business of making commercial loans.

(2)        "Bank holding company" means any company which has control over any bank.

(3)        "Commissioner" means the Commissioner of Banks of this State.

(4)        "Company" means a corporation, joint stock company, business  trust, partnership, voting trust, association, and any similar organized group of persons, whether incorporated or not, and whether or not organized under the laws of this State or any other state or any territory or possession of the United States or under the laws of the foreign country, territory, colony or possession thereof, other than a corporation all the capital of which is owned by the United States or a corporation which is chartered by the Congress of the United States; "company" includes subsidiary and parent companies.

(5)        "Control" means that:

a.         Any company directly or indirectly or acting through one or more persons owns, controls, or has power to vote twenty-five per centum (25%) or more of the voting securities of the bank;

b.         The company controls in any manner the election of a majority of the directors, managers or trustees of the bank or company; or

c.         The Commissioner determines, after notice and opportunity for hearing, that the company directly or indirectly exercises a controlling influence over the management or policies of the bank or company.

(6)        "Subsidiary", with respect to a bank holding company, means:

a.         Any company twenty-five per centum (25%) or more of whose voting shares (excluding shares owned by the United States or by any company wholly owned by the United States) is held by it with power to vote;

b.         Any company the election of a majority of whose directors is controlled in any manner by a bank holding company; or

c.         Any company with respect to the management or policies of which a bank holding company has the power, directly or indirectly, to exercise control, as determined by the Commissioner.

(7)        For the purposes of any proceeding under subdivisions (5)c. and (6)c. of this section, there is a presumption that any company which directly or indirectly owns, controls, or has power to vote less than five percent (5%) of any class of voting securities of a given bank or company does not have control over that bank or company.

(1983 (Reg. Sess., 1984), c. 1113, s. 1.)