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Current through October 23, 2012
(a) No foreign association shall make loans of any kind or transact any building and loan business within the District of Columbia or maintain an office in the District of Columbia for the purpose of transacting such business until it procures from the Superintendent of Banking and Financial Institutions a certificate of authority to do such business in said District, after complying with the following provisions:
(1) It shall deposit with the District of Columbia Treasurer $50,000 in cash, or bonds of the United States, or bonds which the United States guarantees the payment of both principal and interest. A foreign association may collect and use the interest on securities deposited with the District of Columbia Treasurer, as hereinabove provided, so long as it fulfills its obligations and complies with the laws of the District of Columbia. It may also exchange them for other securities of the United States or for cash. The deposit made by a foreign association with the Office of the Treasurer shall be held as security for all claims of residents of the District of Columbia against such association, and be liable for all judgments or decrees thereon, and subjected to the payment thereof in the same manner as the property of other nonresidents. Should an association cease to do business in said District, the District of Columbia Treasurer, upon a certificate from the Superintendent of Banking and Financial Institutions, may release securities in his discretion, retaining sufficient to satisfy all outstanding liabilities.
(2) It shall file with the Superintendent of Banking and Financial Institutions a certified copy of its charter, constitution, and bylaws, and other rules and regulations showing its manner of conducting business, together with a statement such as is required semiannually from all associations.
(3) It shall file with the Superintendent of Banking and Financial Institutions a power of attorney appointing a citizen of the District of Columbia, resident within said District, the agent or attorney for such foreign association upon whom process of law can be served. There must also be filed a certified copy of the vote or resolution of the directors appointing such agent or attorney, which appointment shall continue until another agent or attorney is substituted, and said writing or power of attorney shall stipulate and agree on the part of such foreign association making the same that any lawful process against said association, which is served on such agent or attorney, shall be of the same legal force and validity as if served on such association within the District of Columbia; and, also, that in the case of the death or absence of the agent or attorney so appointed, service or process may be made upon the Superintendent of Banking and Financial Institutions, and such power of attorney cannot be revoked or modified (except that a new one may be substituted) so long as any liability remains outstanding against such foreign association in the District of Columbia. The term "process," used above, shall be held and deemed to include any writ, summons, or order whereby any action, suit, or proceeding shall be commenced, or which shall be issued in or upon any action, suit, or proceeding by any court, officer, or magistrate.
(4) It shall pay to the Collector of Taxes the following fees:
(A) For filing an application for admission to do business in the District of Columbia, $500; and
(B) For each certificate of authority and annual renewal thereof, $200.
(a-1) The Superintendent of Banking and Financial Institutions shall not issue a certificate of authority to any foreign association pursuant to this subsection after October 12, 1988. After October 12, 1988, the certificate of authority shall be issued pursuant to § 26-1204. The Superintendent may consider an application for a certificate of authority, which was filed pursuant to this subsection, prior to October 12, 1988 and may grant the application if the applicant meets the requirements imposed by § 26- 1202(a)(3) and any other requirements imposed by the Superintendent. The Superintendent may enforce any commitments made by an applicant under this section in accordance with the procedures set forth in § 26-1202(a)(4).
(b) When a foreign association has complied with the provisions of paragraph (3) of subsection (a) of this section, and the Superintendent of Banking and Financial Institutions is satisfied that it is doing or will do its building and loan business in the District of Columbia in accordance with the laws of the District of Columbia, such Superintendent may issue a Superintendent's certificate of authority to such foreign association to do a building and loan business in the District of Columbia. Annually thereafter, if the Superintendent of Banking and Financial Institutions is satisfied as herein provided, the Superintendent shall issue a renewal of such certificate.
(c) Should the Superintendent of Banking and Financial Institutions find that such foreign association does not conduct its building and loan business in accordance with law, or that the affairs of such association are in unsafe condition, or if such foreign association refuses to permit examination to be made, the Superintendent of Banking and Financial Institutions may revoke the certificate of authority granted, after 90-days notice, to such foreign association to do a building and loan business in the District of Columbia; provided, that upon revocation of such certificate of authority the Superintendent of Banking and Financial Institutions shall mail a notice thereof to the home office of such foreign association and cause a similar notice to be published in at least 1 daily newspaper of general circulation in the District of Columbia. After so notifying said home office and after the publication of said notice, it shall be unlawful for any agent of such foreign association to receive any further payments from shareholders residing in the District of Columbia.
(d) Every foreign association doing a building and loan business in the District of Columbia shall be subject to the same examination as are domestic associations and such examination may include examination of all subsidiaries of such foreign associations and all business operations wherever apparent; provided, that the Superintendent of Banking and Financial Institutions may accept reports of examination by other supervisory agents in lieu of making such examinations and provided that all the actual and necessary expenses of such examinations of such foreign associations shall be paid by the association examined.
(e) Whenever any taxes, fines, penalties, fees, licenses, or conditions precedent are imposed by the laws of any state upon building and loan associations organized or incorporated under the laws of the District of Columbia, and doing business in the said state, in excess of the taxes, fines, penalties, fees, licenses, or conditions precedent imposed by the laws of the District of Columbia upon foreign associations doing a building and loan business in the District of Columbia, the same taxes, fines, penalties, fees, licenses, or conditions precedent shall be imposed upon every association incorporated under the laws of such state doing, or applying to do, a building and loan business in the District of Columbia, so long as such excess taxes, fines, penalties, fees, licenses, or conditions precedent are imposed by such state; and upon the failure of any association incorporated under the laws of such state to comply therewith the Superintendent of Banking and Financial Institutions shall revoke the certificate of authority of such association to do a building and loan business in the District of Columbia or shall refuse to grant such certificate of authority in the first instance.
(f) A foreign association which does a building and loan business in the District of Columbia without first complying with the provisions of this chapter, or which wilfully violates or fails to comply with the provisions of laws relating to foreign associations, shall forfeit and pay not less than $25 or more than $500, to be recovered by an action in the name of the District of Columbia and on collection paid into the Office of the Treasurer.
(Mar. 3, 1901, ch. 854, § 691a; Mar. 4, 1909, 35 Stat. 1059, ch. 303, § 2; July 18, 1939, 53 Stat. 1060, ch. 322, § 1; Sept. 15, 1951, 65 Stat. 323, ch. 404, § 2; Nov. 23, 1985, D.C. Law 6-63, § 106(a)(3), as added Apr. 11, 1986, D.C. Law 6-107, § 2(k), 33 DCR 1168; Apr. 30, 1988, D.C. Law 7-104, § 44, 35 DCR 147; Oct. 12, 1988, D.C. Law 7-175, § 18, 35 DCR 6133; Apr. 9, 1997, D.C. Law 11-255, § 24(d), 44 DCR 1271.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 26-506.
1973 Ed., § 26-405.
Legislative History of Laws
For legislative history of D.C. Law 6-107, see Historical and Statutory Notes following § 26-204.
Law 7-104, the "Technical Amendments Act of 1987," was introduced in Council and assigned Bill No. 7-346, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on November 24, 1987, and December 8, 1987, respectively. Signed by the Mayor on December 22, 1987, it was assigned Act No. 7-124 and transmitted to both Houses of Congress for its review.
Law 7-175, the "District of Columbia Savings and Loan Acquisition Amendment Act of 1988," was introduced in Council and assigned Bill No. 7-399, which was referred to the Committee on Housing and Economic Development. The Bill was adopted on first and second readings on June 28, 1988, and July 12, 1988, respectively. Signed by the Mayor on August 1, 1988, it was assigned Act No. 7-235 and transmitted to both Houses of Congress for its review.
Law 11-255, the "Second Technical Amendments Act of 1996," was introduced in Council and assigned Bill No. 11-905, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on November 7, 1996, and December 3, 1996, respectively. Signed by the Mayor on December 24, 1996, it was assigned Act No. 11-519 and transmitted to both Houses of Congress for its review. D.C. Law 11-255 became effective on April 9, 1997.
