US Lawyer Database

For Lawyer-Seekers

YOU DESERVE THE BEST LAWYER

§ 324.  Change  of  control.  1. It shall be unlawful, except with the
prior approval of the superintendent, for any  company,  as  defined  in
subdivision  two  of  section  one hundred forty-one of this chapter, to
directly or indirectly acquire  control  of  any  safe  deposit  company
subject to the provisions of this article.
  As  used  in  this  section,  the term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of
the management and policies of a safe deposit company, whether by  means
of  the  ownership  of the voting stock or equity interests of such safe
deposit company or of  one  or  more  companies  controlling  such  safe
deposit  company  by  means  of a contractual arrangement, or otherwise.
Control  shall  be  presumed  to  exist  if  any  company,  directly  or
indirectly,  owns,  controls  or  holds  with  the power to vote ten per
centum or more of the voting stock of any safe deposit company or of any
company which owns, controls or holds with power to vote ten per  centum
or  more of the voting stock of such safe deposit company, but no person
shall be deemed to control a safe deposit company solely  by  reason  of
his  being  an  officer  or  director  of such safe deposit company. The
superintendent may, in his discretion, upon the application  of  a  safe
deposit  company  or  any  company  which, directly or indirectly, owns,
controls or holds with power to vote or seeks to own, control  or  holds
with  power  to  vote  any  voting  stock  of such safe deposit company,
determine whether or not the  ownership,  control  or  holding  of  such
voting  stock  constitutes  or  would  constitute  control  of such safe
deposit company for purposes of this section.
  2. (a) A company which seeks to acquire  control  of  a  safe  deposit
company  subject  to the provisions of this article shall file a written
application therefor with the superintendent and  pay  an  investigation
fee  as prescribed pursuant to section eighteen-a of this chapter to the
superintendent. The application shall be in such form and shall  contain
such information as the superintendent may require.

(b) The superintendent shall disapprove the proposed exercise of control of any safe deposit company if, after notice to and an opportunity to be heard by the applicant and such safe deposit company, he finds the acquisition of control therein contrary to law or determines that disapproval is reasonably necessary to protect the interests of the people of this state. In making such determination, the superintendent shall only consider (i) whether the character, responsibility and general fitness of the company which seeks to control such safe deposit company are such as to command confidence and warrant belief that the business of such safe deposit company will be honestly and efficiently conducted in a manner consistent with the public interest, the interests of bailors and creditors of such safe deposit company and (ii) whether the exercise of control may impair the safe and sound conduct of the business of such safe deposit company, the conservation of its assets, or public confidence in its business. Unless the superintendent shall have denied such application in writing within ninety days of the receipt thereof, or shall have advised the applicant in writing before the expiration of ninety days of his determination to extend such period an additional sixty days, such application shall be deemed approved.

(c) For a period of six months from the date of qualification thereof and for such additional period of time as the superintendent may prescribe in writing, the provisions of this subdivision shall not apply to a transfer of control by operation of law to a legal representative, as hereinafter defined, who has control of a safe deposit company. The term "legal representative", for the purposes of this section, shall mean one duly appointed by a court of competent jurisdiction to act as executor, administrator, trustee, committee, conservator or receiver, including one who succeeds a legal representative and one acting in a ancillary capacity thereto in accordance with the provisions of such court appointment.