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Commonwealth Bank Annual Report Due to Governor and Legislature

The Director of the Department of Commerce and Labor is required to submit an annual report to the Governor and the legislature within 60 days after the end of each fiscal year.

Purpose of the Report

The report will provide a summary of major changes in the banking business since the last previous report, as well as a statement of the most recent reported condition of each bank. The Director may also make recommendations for banking legislation.

Applicability and Corporate Powers

According to Chapter 2 of the CNMI Banking Code, Article 1: Organization and Corporate Structure of Commonwealth Banks, Section 6201 states that unless otherwise specified, this article applies only to Commonwealth banks. A “bank” means a bank chartered by the Commonwealth.

The code outlines general corporate powers of a Commonwealth bank, including:

  • The power to continue perpetually as a corporation
  • The power to sue and be sued
  • The power to have a corporate seal
  • The power to make and repeal bylaws
  • The power to elect or appoint officers and agents
  • The power to adopt and operate reasonable bonus and pension plans
  • The power to make contributions to or for the use or benefit of various organizations

Fiduciary Powers

A Commonwealth bank may act as a fiduciary in any capacity, including but not limited to:

  • Registrar or transfer agent
  • Fiscal agent or attorney-in-fact
  • Receive, manage and apply sinking funds

Application for Charter and Licenses

Any bank desiring to engage in the business of banking in the Commonwealth must make application for its charter and licenses to the Director.

Submission Deadline

The report is required to be submitted by the Director within 60 days after the end of each fiscal year. The purpose of the report is to provide transparency and accountability in the banking industry, as well as to inform policy decisions related to banking legislation.

Source: PL 3-104, § 1102; CNMI Banking Code, Chapter 2, Article 1