Chapter 10 - Banks

Chapter 10 - Banks

28.1001 Short title.

This chapter shall be known and may be cited as the “American Samoa Banking Act of 1975”.

28.1002 Regulations of Banks.

A Bank may not do business in American Samoa unless:

(1) it is a corporation organized under the Banking laws of the United States or the Banking laws of a state of the United States or the general corporation laws of American Samoa, 30.0101 et seq., for the exclusive purpose of engaging in the general Banking business; and

(2) it is a member of the Federal Deposit Insurance Corporation (FDIC); and

(3) it has been approved by the Comptroller of the currency and FDIC if a national Bank; and

(4) it has obtained the approval of the proper official of the state, if a state Bank; and

(5) it shall have been authorized and licensed to conduct the business of banking in American Samoa by the Economic Development Commission and Governor of American Samoa; and

(6) if a state Bank, the charter, statutes, rules, and regulations under which it operates have been examined and found adequate by the Economic Development Commission and the Governor of American Samoa.

28.1003 Suspension of operations.

(a) In the event a Bank has had an application for FDIC insurance accepted for filing, but not yet approved, the Governor may suspend the operation of subsection (2) of 28.1002 for a period not exceeding one year upon conditions he may determine. The conditions imposed may include, but shall not be limited to, the following general areas of concern:

(1) public notice;

(2) accounting and record keeping;

(3) insurance;

(4) management and operations expertise;

(5) Board of Directors membership;

(6) loan policy and limits;

(7) dividend policy; and

(8) investment policy;

and shall be set forth in a public document to be known as “Certificate of Temporary Suspension of Requirement to obtain FDIC Insurance”.

(b) In the event FDIC insurance has not been obtained within one year from the date the above certificate is granted and the application for insurance is still pending, the Governor may grant up to 8, 90-day, extensions within which to comply.

(c) In the event the Bank does not obtain FDIC insurance within the one-year period and any extensions if granted, or if the Bank fails to comply with any of the conditions of the certificate, the Governor may immediately suspend the operation of that Bank, freeze its assets, and liquidate its business in accordance with Banking rules and regulations and generally accepted banking principles.

28.1004 Power of Governor to adopt rules.

(a) The Governor has the power to adopt rules under the Administrative Procedure Act, 4.1001 et seq., and from time to time amend, supplement, and revoke, in whole or in part, rules not inconsistent with this act or the laws of this Territory or the laws of the United States of America governing the business of banking in American Samoa.

(b) The Governor shall adopt the rules under subsection (a) by 1 July 1978.

28.1005 Title to or interest in communal land prohibited-Exception.

(a) No bank, or corporation engaged in banking, may acquire or hold title to any land, except that a bank authorized to do business in American Samoa may acquire and hold title to land in trust for beneficial owners who are eligible under the laws of American Samoa to acquire and hold title to land, and may acquire and hold a leasehold interest in land, subject to the general restrictions and limitations on the alienation of land contained in the laws of American Samoa.

(b) This section does not apply to “Freehold lands”, as defined in 37.0201.