1. (a) A state bank shall apply to the department for a certificate of authority to operate a branch bank or to change the permanent location of an existing branch or the home office. The application must be on a form provided by the department and contain the information required under (b) of this section, including the address of the permanent location at which the state bank or branch bank will operate, to enable the department to determine whether a certificate of authority should be issued.

2. (b) The following information must accompany a bank's application for a new branch bank or a change of permanent location of an existing branch bank or the home office:

   1. (1) the address of the permanent location at which the home office or existing branch office will operate;
   2. (2) a completed FDIC branch or change of location application, which may be obtained directly from the FDIC;
   3. (3) payment of $1,000 made payable to the State of Alaska, in a format determined by the department, in partial payment of the investigation expenses incurred by the department under AS 06.01.010;
   4. (4) a statement as to whether the proposed office or branch bank will operate on owned or leased property and, if leased, a copy of all proposed lease documents; all proposed lease documents must contain a bankruptcy clause;
   5. (5) a balance sheet and a statement of income and expenses for the bank current as of a date not later than 30 days preceding the application;
   6. (6) a list of the banking services to be offered by the proposed office or branch bank;
   7. (7) a brief economic analysis that supports the need for and feasibility of the proposed office or branch bank;
   8. (8) if an international bank, the information required under AS 06.05.555; and
   9. (9) additional information requested by the department.
3. (c) No bank may conduct a banking business through a branch office without a certificate of authority issued by the department. The certificate of authority must be prominently and publicly displayed in that branch office.
4. (d) Upon written request from a bank and after reviewing the past reports of examination of the bank and finding that the bank is in compliance with the department's recommendations in those reports, the department may waive any of the application requirements set out in (b)(2) and (4) - (7) of this section.
5. (e) The department will notify the state bank of the department's action regarding the application for a branch bank or for a change of location. If the application and the accompanying documents do not conform to the requirements under (a) of this section, the department will return the application and documents to the state bank with an explanation of the defects. If the department fails to respond within 30 days after receipt of the application, the application is considered accepted.

6. (f) Upon acceptance of an application for a certificate of authority to operate a branch bank or for approval to change location, the department will conduct an investigation to ascertain whether

   1. (1) the capital structure of the state bank is adequate in relation to the anticipated business and costs of operating at the proposed location; and
   2. (2) the state chartered bank has complied with applicable law governing its operation.
7. (g) Not later than 60 days after the application for a certificate of authority to operate a branch bank or to change location has been accepted, the department will determine whether to approve the application. After the department approves or denies the application, the department will notify the bank and any other person who requested in writing to be notified. If the application is denied, the department will state the reasons for its decision.

8. (h) The department will issue a certificate of authority to operate a branch bank or to change location if

   1. (1) all conditions imposed by the department in granting the certificate have been fulfilled; and
   2. (2) the requirements of this chapter are satisfied.
9. (i) If the rights conferred by a certificate of authority are not exercised within one year from the date of its issuance under this section, the certificate lapses unless the bank requests an extension in writing and department approves the extension.

(Eff. 12/13/70, Register 36; am 4/6/79, Register 70; am 12/31/80, Register 76; am 1/10/94, Register 129; am 12/27/2023, Register 248)

Authority: AS 06.05.005, AS 06.05.399, AS 06.05.990, AS 06.05.344, AS 06.05.555, AS 44.33.020