Recognizing the increasingly interconnected global economy and North Carolina's position as a leader in the financial services sector, the BLMA relaxes rules on the required composition of a bank's board of directors.
21) The BLMA did not bring forward the Old Law's requirements that bank directors own qualifying shares, or "take and subscribe" an oath.
The BLMA confirms that bank directors are generally held to the same standard of conduct as directors of other corporations under Section 55-8-30 of the North Carolina Business Corporation Act.
27) It appears elimination of liability would be inconsistent only with the BLMA provision holding directors liable for knowingly permitting violations of Chapter 53C.
The BLMA continues the requirements of the Old Law that a bank's board establish executive, audit committee, and loan committees.
33) Given that the Commissioner now has this authority, it was illogical for the BLMA to bring forward the "one size fits all" approach to board governance requiring particular committees.
The BLMA provides that conditions to approvals shall be enforceable against anyone receiving the approval.
The BLMA sets out somewhat different exceptions to the prior approval requirement for banks and bank holding companies.
301) The BLMA arguably should have extended these exemptions to banks.
The BLMA provides that banks have an exception for debts previously contracted "in good faith and not for the purpose of acquiring control of the bank," subject to after-the-fact notice requirements before voting.
The BLMA gives the Commissioner ten days after receipt of a notice to object or to request further information.
The BLMA authorizes the Commissioner to require a person who is obligated to file any change of control notice or application to appoint an agent resident in North Carolina for service of process.