Interstate Bank Branching

Miss. Code Ann. tit. 81, ch. 23
in effect

Miss. Code Ann. § 81-23-3 Intent.

It is the intent of this chapter to permit interstate bank branching under Section 102 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, Public Law No. 103-328, in accordance with the provisions set forth in this chapter.

Miss. Code Ann. § 81-23-5 Definitions.

As used in this chapter, unless a different meaning is required by the context, the following words and phrases shall have the following meanings: “Bank” means any bank the deposits of which are insured by the Federal Deposit Insurance Corporation or any successor thereto; however, the term “bank” shall not include any “foreign bank” as defined in 12 USCS 3101(7), except that such term includes any bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation or any successor thereto. “Bank holding company” has the meaning set forth in 12 USCS 1841(a)(1). “Bank supervisory agency” means: Any agency of another state with primary responsibility for chartering and supervising banks; and The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and any successor to these agencies. “Branch” means an office of a bank at which such bank accepts deposits. The term “branch” does not include the following: Automatic teller machines or other unmanned banking facilities at which deposits may be accepted; Offices located outside the Untied States; or Loan production offices, representative offices or other offices at which deposits are not accepted. “Commissioner” means the Mississippi Commissioner of Banking and Consumer Finance then in office and, where appropriate, all of his or her successors and predecessors in office. “Control” shall be construed consistently with the provisions of 12 USCS 1841(a)(2). “Home state” means: With respect to a state bank, the state by which the bank is chartered; With respect to a national bank, the state in which the main office of the bank is located. “Home state regulator” means, with respect to an out-of-state state bank, the bank supervisory agency of the state in which such bank is chartered. “Host state” means a state, other than the home state of a bank, in which the bank maintains, or seeks to establish and maintain a branch. “Interstate branch” means a branch located in a state other than the home state of its parent. “Interstate branching transaction” means: The merger or consolidation of banks with different home states, and the conversion of branches of any bank involved in the merger or consolidation into branches of the resulting bank; The purchase of all or substantially all of the assets (including all or substantially all of the branches) of a bank whose home state is different from the home state of the acquiring bank, and converting the acquired assets into branches of the acquiring bank; or The purchase of all or substantially all of the assets (including all or substantially all of the branches), of a bank in a state by a bank whose home state is different than the state in which such assets exist, and converting the acquired assets into branches of the acquiring bank, even though: A. Two (2) or more banks are not merged or consolidated; or B. All or substantially all of the assets of the bank are not purchased. “Out-of-state bank” means a bank whose home state is a state other than the State of Mississippi. “Out-of-state state bank” means a bank chartered under the laws of any state other than the State of Mississippi. “Resulting bank” means a bank that has resulted from an interstate branching transaction under this chapter. “State” means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. “Mississippi bank” means a bank whose home state is the State of Mississippi. “Mississippi state bank” means a bank chartered under the laws of the State of Mississippi.

Miss. Code Ann. § 81-23-7 Provisions.

In accordance with the provision of this chapter, a Mississippi bank may enter into an interstate branching transaction, or other exercise, the result of which the Mississippi bank, or the resulting Mississippi bank, establishes, maintains or operates one or more branches in a state other than the State of Mississippi. In accordance with the provisions of this chapter, one or more Mississippi banks may enter into an interstate branching transaction with one or more out-of-state banks, and an out-of-state bank resulting from such transaction may maintain and operate, as branches of the out-of-state bank, the branches in the State of Mississippi of a Mississippi bank that participated in such transaction.

Miss. Code Ann. § 81-23-9 Restrictions.

An interstate branching transaction shall not be permitted under this chapter if, upon consummation of such transaction, the resulting bank would control in excess of twenty-five percent (25%) of the total deposits of all offices located in the State of Mississippi of commercial banks, savings banks, savings and loan associations and credit unions in the State of Mississippi, as determined according to Section 81-7-8. An interstate branching transaction resulting in: The acquisition by an out-of-state bank of a Mississippi bank, The acquisition of all or substantially all of the assets (including all or substantially all of the branches) of a Mississippi bank, or The merger or consolidation of a Mississippi bank with or into another bank shall not be permitted unless such Mississippi bank has been in continuous operation as a state or federally chartered bank, savings bank or savings association for at least its previous five (5) years of existence, as determined according to Section 81-7-8, or is defined as a banker’s bank according to Section 81-8-1. However, any state or federally chartered banker’s bank that has been merged or consolidated with or into another bank as provided in this subsection shall remain a banker’s bank for a period of not less than five (5) years after the date of merger or consolidation. In the sale of any insolvent bank made pursuant to the provisions of Chapter 9, Title 81, Mississippi Code of 1972, or pursuant to federal banking laws, the restrictions contained in subsections (1) and (2) of this section shall not apply to prevent the acquisition of such insolvent bank by another bank; and, additionally, neither restriction shall apply to prohibit any purchasing bank from retaining any established branches of the insolvent bank which the purchasing bank would otherwise be prohibited from establishing.

Miss. Code Ann. § 81-23-11 Filing of application; criteria for approval.

Not later than the date on which the required application is filed with the responsible federal bank supervisory agency, a Mississippi state bank seeking to establish one or more branches in a state other than the State of Mississippi pursuant to an interstate branching transaction, or other exercise, shall file an application on a form prescribed by the commissioner and pay the fee prescribed by the commissioner. The applicant Mississippi state bank shall also comply with any other applicable Mississippi statutes. If the commissioner finds that: The proposed transaction will not be detrimental to the safety and soundness of the applicant, Any new officers and directors of the applicant or the resulting bank are qualified by character, experience, and financial responsibility to direct and manage the bank, and The proposed transaction is consistent with the convenience and needs of the communities to be served by the applicant or the resulting bank in the State of Mississippi and is otherwise in the public interest, the commissioner shall approve the transaction and the operation of branches outside of the State of Mississippi by the applicant or the resulting bank. Such a transaction may be consummated only after the applicant or the resulting bank has received the commissioner’s written approval.

Miss. Code Ann. § 81-23-13 Requirements for out-of-state state banks.

Any out-of-state state bank that will be the resulting bank pursuant to an interstate branching transaction involving a Mississippi state bank shall notify the commissioner of the proposed transaction not later than the date on which it files an application for an interstate branching transaction with the responsible federal bank supervisory agency, and shall submit a copy of that application to the commissioner and pay the filing fee, if any, required by the commissioner. Any Mississippi bank which is a party to such interstate branching transaction shall comply with all other applicable state and federal laws.

Miss. Code Ann. § 81-23-15 Permissible activities.

An out-of-state bank which establishes and maintains one or more branches in the State of Mississippi under this chapter may conduct any activities at such branch or branches that are authorized under the laws of the State of Mississippi for Mississippi state banks. A Mississippi state bank may conduct any activities at any branch outside the State of Mississippi that are permissible for a bank chartered by the host state where the branch is located. An out-of-state bank that has established a branch in the State of Mississippi under this chapter may establish or acquire additional branches in the State of Mississippi to the same extent that any Mississippi bank may establish or acquire a branch in the State of Mississippi under applicable federal and state law.

Miss. Code Ann. § 81-23-17 Rights of commissioner.

To the extent consistent with subsection (3) of this section, the commissioner may make such examinations of any branch established and maintained in the State of Mississippi pursuant to this chapter by an out-of-state state bank as the commissioner may deem necessary to determine whether the branch is being operated in compliance with the laws of the State of Mississippi and in accordance with safe and sound banking practices. The provisions of any applicable Mississippi laws shall apply to such examinations. The commissioner may prescribe requirements for periodic reports regarding any out-of-state state bank that operates a branch in the State of Mississippi pursuant to this chapter. Any reporting requirements prescribed by the commissioner under this subsection (2) shall be: Consistent with the reporting requirements applicable to Mississippi state banks, and Appropriate for the purpose of enabling the commissioner to carry out his or her responsibilities under this chapter. The commissioner may enter into cooperative, coordinating and information-sharing agreements with any other bank supervisory agencies or any organization affiliated with or representing one or more bank supervisory agencies with respect to the periodic examination or other supervision of any branch in the State of Mississippi of an out-of-state state bank, or any branch of a Mississippi state bank in any host state, and the commissioner may accept such parties’ reports of examination and reports of investigation in lieu of conducting his or her own examinations or investigations. The commissioner may enter into contracts with any bank supervisory agency that has concurrent jurisdiction over a Mississippi state bank or an out-of-state state bank operating a branch in the State of Mississippi pursuant to this chapter to engage the services of such agency’s examiners at a reasonable rate of compensation, or to provide the services of the commissioner’s examiners to such agency at a reasonable rate of compensation. Such contracts shall be in accordance with the policies and administrative procedures of the Mississippi State Personnel Board. The commissioner may enter into joint examinations or joint enforcement actions with other bank supervisory agencies having concurrent jurisdiction over any branch in the State of Mississippi of an out-of-state state bank or any branch of a Mississippi state bank in any host state; however, the commissioner may at any time take such actions independently if the commissioner deems such actions to be necessary or appropriate to carry out his or her responsibilities under this chapter or to ensure compliance with the laws of the State of Mississippi; but in the case of an out-of-state state bank, the commissioner shall recognize the exclusive authority of the home state regulator over corporate governance matters and the primary responsibility of the home state regulator with respect to safety and soundness matters. Each out-of-state state bank that maintains one or more branches in the State of Mississippi may be assessed and, if assessed, shall pay supervisory and examination fees in accordance with the laws of the State of Mississippi and regulations of the commissioner. Such fees may be shared with other bank supervisory agencies or any organization affiliated with or representing one or more bank supervisory agencies in accordance with agreements between such parties and the commissioner.

Miss. Code Ann. § 81-23-19 Violation by out-of-state state bank; authority of commissioner to take enforcement action.

If the commissioner determines that a branch maintained by an out-of-state state bank in the State of Mississippi is being operated in violation of any provision of the laws of the State of Mississippi, or that such branch is being operated in an unsafe and unsound manner, the commissioner shall have the authority to take all such enforcement actions as he or she would be empowered to take if the branch were a Mississippi state bank; however, the commissioner shall promptly give notice to the home state regulator of each enforcement action taken against an out-of-state state bank and, to the extent practicable, shall consult and cooperate with the home state regulator in pursuing and resolving the enforcement action.

Miss. Code Ann. § 81-23-21 Power of commissioner to promulgate regulations.

The commissioner may promulgate such regulations as he or she determines to be necessary or appropriate in order to implement the provisions of this chapter.

Miss. Code Ann. § 81-23-23 Change in control requirement for out-of-state state banks.

Each out-of-state state bank that has established and maintains a branch in the State of Mississippi pursuant to this chapter, shall give at least thirty (30) days’ prior written notice (or, in the case of an emergency transaction, such shorter notice as is consistent with applicable state or federal law) to the commissioner of any merger, consolidation, or other transaction that would cause a change of control with respect to such bank or any bank holding company that controls such bank, with the result that an application would be required to be filed pursuant to the federal Change in Bank Control Act of 1978, as amended, 12 USCS 1817(j), or the federal Bank Holding Company Act of 1956, as amended, 12 USCS 1841 et seq., or any successor statutes thereto.

Miss. Code Ann. § 81-23-25 Application in case of judicial finding of invalidity.

If any provision of this chapter or the application of such provision is found by any court of competent jurisdiction in the United States to be invalid as to any bank, bank holding company, foreign bank or other person or circumstances, or to be superseded by federal law, the remaining provisions hereof shall not be affected and shall continue to apply to any bank, bank holding company, foreign bank, or other person or circumstance.
Source: Public.Resource.Org MS CodeURL: https://unicourt.github.io/cic-code-ms/transforms/ms/ocms/r78/gov.ms.code.title.81.htmlFetched: 6/10/2026

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