Commonwealth Bank Directors to Submit Annual Report
The directors of the Commonwealth banks are required to submit an annual report to the Governor and the Legislature within 60 days after the end of each fiscal year. The report will include a summary of major changes in the banking industry since the last previous report and a statement on the current condition of each bank.
According to section 6116 of the Banking Code, the directors may also make recommendations for banking legislation. This provision is aimed at ensuring that the banks are operating in compliance with relevant laws and regulations and that any necessary reforms are implemented to maintain public trust and confidence in the financial system.
Banking Organization
The Commonwealth Bank Organization chapter outlines the structure and powers of the Commonwealth banks. The following sections outline the key aspects:
- Applicability: Section 6201 states that this article applies only to Commonwealth banks, which are defined as banks chartered by the Commonwealth.
- Corporate Powers: Section 6202 outlines the general corporate powers of a Commonwealth bank, including its ability to exercise powers provided in this division and any additional powers contained in its charter. The section also lists various specific powers granted to the bank, such as:
- Power to sue and be sued
- Ability to make bylaws
- Authority to elect officers
- Permission to adopt pension plans
Capital Structure
Section 6203 requires that a bank has paid-in-cash capital of at least $500,000 at all times. This provision is aimed at ensuring that the banks have sufficient capital to operate safely and prudently.
Incorporators
According to section 6204, a Commonwealth bank may be organized by three or more persons acting on their own behalf or by an attorney licensed in the Northern Mariana Islands. The incorporators will be responsible for: + Preparing and filing articles of incorporation with the Director of Commerce and Labor
Banking License
Section 6212 outlines the process for obtaining a banking license, which is required for any bank seeking to operate in the Commonwealth. The Director of Commerce and Labor must review each application carefully before issuing a license.
Deposit Insurance and Membership in Federal Reserve System
Section 6215 requires that all Commonwealth banks participate in the deposit insurance system and be members of the Federal Reserve System. This provision is aimed at ensuring that deposits are insured and that the banking system operates safely and soundly.
The Northern Mariana Islands Banking Code aims to regulate the banking industry in a way that promotes public trust and confidence, while also allowing for innovation and growth. The code outlines various requirements and powers of the Commonwealth banks, including their capital structure, incorporation, and licensing processes.