9-1802.   Investigation and examination; approval or disapproval of application;two or more applications to serve same territory.Upon the filing of any such application with the state banking board, such board shallmake, or cause to be made, a careful examination and investigationconcerning: (a) The financial standing, general business experience andcharacter of the organizers and incorporators; (b) the character,qualifications and experience of the officers of the proposed bank ortrust company; (c) the public need for the proposed bank or trust companyin the community wherein it is proposed to locate the same and whetherexisting banks or trust companies are meeting such need; (d) the prospectsfor success of the proposed bank or trust company. If the boardshall determine any of such matters unfavorably to the applicants, theapplication shall be disapproved, but if not, then the application shallbe approved. The board shall not make membership in any federalgovernment agency a condition precedent to the granting of anyapplication for incorporation and authority to do business.

      In the event two or more applications for incorporation and authorityto do business seeking to serve the same general territory are pendingbefore the board, and the board determines all of such matters favorablyin two or more such applications, the board may approve the applicationof the proposed bank or trust company which it determines will best serve the needs ofthe territory sought to be served. If one or more such applicationsseeking to serve a territory are pending before the board, and the boardhas determined all of such matters favorably in one or more of suchapplications, and there also is pending before the board an applicationof an existing bank or trust company to change its place of business to serve the sameterritory which the board determines should be approved, and the boarddetermines that there is public need for only one bank or trust company to serve theterritory, the board may approve the application of the existing bank ortrust company tochange its place of business and disapprove the application orapplications for incorporation and authority to do business.

      History:   L. 1947, ch. 102, § 104; L. 1975, ch. 44, § 37; L.1977, ch. 45, § 4; L. 1989, ch. 48, § 47; July 1.