§ 1046 Bank Opening Deadline Extension

This law says a new bank or trust company must start doing business within 90 days after getting its permission, or the permission ends, unless it asks for and gets an extra extension of up to another 90 days.

Key Takeaways

•A bank must open within 90 days after its certificate is issued.
•It can ask for more time, but the request must be filed before the first 90 days end.
•If approved, the extra time can be any number of days up to another 90 days.
•If no extension is granted, the right to do business ends automatically.

Example

A new bank gets its certificate on January 1. By March 1 (60 days later) it still hasn't opened, so it files a request for more time before the 90‑day deadline. The commissioner approves a 30‑day extension, and the bank opens on April 1.

Because the bank asked for extra time before the first 90 days were up and got approval, it could add the extra 30 days and still be allowed to open. If it hadn't asked before day 90, its permission would have automatically ended.

How to Calculate

Total allowed days = 90 + E, where E is the number of extra days granted (E ≤ 90).

Start with the basic 90‑day period after the certificate is issued.
Check if the bank files a written request for an extension before the 90th day ends.
If the commissioner approves, add the approved extra days (up to 90) to the original 90 days.
The sum is the total number of days the bank has to open for business.

Bank gets a 45‑day extension approved.

Result: Total allowed days = 90 + 45 = 135 days

If the proposed bank or trust company fails to open for business within 90 days after the issuance of the certificate of authorization, the right to transact business automatically terminates. The commissioner, however, for good cause on written application filed before the end of said 90-day period, may extend for one additional period of not to exceed 90 days the time within which the bank or trust company may open for business. (Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.)

Key Takeaways

•A bank must open within 90 days after its certificate is issued.
•It can ask for more time, but the request must be filed before the first 90 days end.
•If approved, the extra time can be any number of days up to another 90 days.
•If no extension is granted, the right to do business ends automatically.

Example

How to Calculate

Total allowed days = 90 + E, where E is the number of extra days granted (E ≤ 90).

Start with the basic 90‑day period after the certificate is issued.
Check if the bank files a written request for an extension before the 90th day ends.
If the commissioner approves, add the approved extra days (up to 90) to the original 90 days.
The sum is the total number of days the bank has to open for business.

Bank gets a 45‑day extension approved.

Result: Total allowed days = 90 + 45 = 135 days

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 1046 Bank Opening Deadline Extension

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References