Legal Seminar

The Office of the Comptroller of the Currency (“OCC”) has approved credit union purchases of bank assets that result in the surrender of the bank’s charter and the transfer of the bank’s deposits to the credit union. Bank’s counsel took the position that because the OCC has approved such mergers under the federal rules, the Banking Board has the power to approve a Colorado credit union’s acquisition of a Colorado bank using its wild card power granted in § 11-102-104(5), C.R.S. But § 11-102-104(5), C.R.S. only grants the Banking Board discretion to allow a state bank to conduct banking activity a national bank would if that activity is not prohibited elsewhere in the Banking Code. Bank’s counsel contended that the Banking Board has properly exercised in the past its mandate to seek such regulatory parity, evidenced by the fact that the Banking Board has rightfully approved the purchase of thrift institution assets by banks because the Banking Board construed C.R.S. § 11-103-709(2) liberally as required under C.R.S. § 2-4-212.