Section 142-A. Limitation on acquisition of newly chartered banking institutions

1. No bank holding company  may  acquire  control  of  any  banking  institution  which  has been chartered for less than five years
  and has its principal office in a city or village with a  population  of
  fifty  thousand or less if the principal office of a bank, trust company
  or national bank the principal office of which institution is located in
  this state and which institution is not a subsidiary of a  bank  holding
  company  is  located in such city or village; provided, however, such an
  acquisition may be consummated upon the  obtaining  of  the  appropriate
  supervisory approvals if: (a) application is pending for the institution
  being  acquired  to  merge with or acquire the assets of another banking
  institution having its principal office in the same city or village  and
  chartered  for over five years, or if; (b) the superintendent finds that
  the banking institution being acquired was  not  chartered  directly  or
  indirectly   by  the  acquiring  bank  holding  company,  its  officers,
  directors or stockholders, and does not have the capacity to continue to
  conduct its business independently in  a  fashion  consistent  with  the
  public interest and the interests of depositors, creditors, shareholders
  and stockholders.
    2. No out-of-state bank holding company, which has acquired control of
  a  banking institution that has been chartered for less than five years,
  may cause it to be merged into, or to have all or a substantial part  of
  its  assets  acquired by, an out-of-state bank as defined in section two
  hundred twenty-two of this chapter  which  is  controlled  by  the  same
  out-of-state  bank holding company, unless the superintendent finds that
  the banking institution being acquired was  not  chartered  directly  or
  indirectly  by  such  bank  holding  company, its officers, directors or
  stockholders, or any other person in a position to exercise control over
  such out-of-state bank holding company.  The  prohibition  contained  in
  this  subdivision  shall  not apply if the superintendent finds that the
  banking institution  being  acquired  does  not  have  the  capacity  to
  continue  its  business  independently  in  a manner consistent with the
  public  interest  and  the  interests  of  depositors,   creditors   and
  stockholders,  or  if the out-of-state bank holding company which, prior
  to the time of acquiring control of such  banking  institution,  was  in
  control  of  an  out-of-state  bank  lawfully  maintaining  one  or more
  branches in this state, provided that the merger or purchase  of  assets
  transaction  is with its out-of-state bank which is lawfully maintaining
  the branch or branches in this state.
    3. As used in this section, the term "control" means  the  possession,
  directly or indirectly, of the power to direct or cause the direction of
  the  management  and  policies of a banking institution, whether through
  the ownership of voting stock of such banking institution, the ownership
  of voting stock of any company which possesses such power or  otherwise.
  Control  shall  be  presumed  to  exist  if  any  company,  directly  or
  indirectly, owns, controls or holds with  the  power  to  vote  ten  per
  centum  or more of the voting stock of any banking institution or of any
  company which owns, controls or holds with power to vote  ten  percentum
  or  more  of the voting stock of such banking institution, but no person
  shall be deemed to control a banking institution solely by reason of his
  being an officer or director of such banking institution or company.
    4. As used in this section, the term "village" shall  mean  either  an
  incorporated or unincorporated village.