Sunday, September 8, 2019
Law of Banking and Financial Institutions Benchmark Assignment
Law of Banking and Financial Institutions Benchmark - Assignment Example However, the general process that applies under the New York law for the incorporation of a bank is that; first, the organizers file a notice of intent for forming the bank. This notification of resolved is required to contain all the names of the principal directors/owners of the bank and nature of capital set aside for the operation of the bank. Second, the law requires that the organizers serve the nearby banks with a notice informing them of the intended new bank to be set in the country or locality. Subsequently, the bank is required to have a minimum number of five incorporators and in its application describe the classes of stock that it wishes to register and trade. Additionally, in the event that the nature of the bank to be formed is under the management of private bankers, they would be required to pass a fitness test for banking, have a minimal permanent capital amount of $1 million, and not engage in any purchases of real estateÃ¢â¬â¢s investments. In addition, the general limit is set for real estate loans that they are allowed to in the event of an unimproved realty. This limit is two-thirds of the reality and three-quarters of the reality when it improves (Bender, 2012). The statutes also restrict the bank from having any dealings with similar businesses. In other instances, the organizers of the bank will need to organize regular meetings with the Comptroller of CurrencyÃ¢â¬â¢s office and attend informal conferences with regard to the application. Based on these meetings, the formal application of the bank will take place with the submission to the District Office where the bank will be situated. After this, the public opinion is sought for a period of 30 days from other parties of interest before the final declaration of the bankÃ¢â¬â¢s application status (Asser, 2001). Given that the application is satisfactory, the Comptroller issues a letter of preliminary approval. From the date of preliminary approval, the law requires that theÃ bank begin operations within 18 months.