Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

MCENTEER v. CLARKE

June 27, 1986

BEN McENTEER, Secretary of Banking, Commonwealth of Pennsylvania
v.
ROBERT L. CLARKE, Comptroller of the Currency of the United States of America; BANK OF NEW JERSEY, N.A., a national banking association; and HORIZON BANCORP, a bank holding company



The opinion of the court was delivered by: KATZ

 KATZ, J.

 1. This is the first case to determine whether to set aside a decision of the Comptroller of the Currency of the United States of America allowing the relocation across state lines of the main office of a national bank. 5 U.S.C.A. § 702 et seq. (West 1972).

 2. On May 13, 1986, the Comptroller granted the request of the Bank of New Jersey, a national bank, which is a subsidiary of Horizon Bancorp, a New Jersey bank holding company, to relocate its main office from Moorestown, New Jersey to Philadelphia, Pennsylvania. The Bank moved for legitimate business reasons to be active in the Philadelphia market.

 3. Plaintiff Ben McEnteer, Secretary of the Pennsylvania Department of Banking, has moved for a preliminary injunction in this matter.

 4. This Court has jurisdiction of the subject matter of this action pursuant to 28 U.S.C.A. § 1331 (West Supp. 1976), as this action arises under the National Bank Act, 12 U.S.C.A. § 21 et seq. (West 1980 & Supp. 1986) and under the Bank Holding Company Act, 12 U.S.C.A. § 1841 et seq. (West 1980 & Supp. 1986).

 5. Venue in this district is proper under 28 U.S.C.A. § 1391(b) and (e) (West 1976 & Supp. 1986).

 6. Plaintiff is responsible for the administration of the Pennsylvania Banking Code. Pa. Stat. Ann. tit. 7, §§ 101-2204 (Purdon 1967 & Supp. 1985). Plaintiff is specifically authorized to enforce Section 115 of the Pennsylvania Banking Code. See Id. at § 115 (c). As the state official responsible for effectuating state banking policy, plaintiff has standing to enforce the applicable provisions of the National Bank Act and the Bank Holding Company Act.

 7. Defendant Robert L. Clarke is named in his official capacity as the Comptroller of the Currency of the United States of America. The Comptroller is responsible for the supervision and regulation of national banks chartered under the National Bank Act.

 8. The Bank of New Jersey, N.A., ("the New Jersey Bank") is a banking association duly incorporated under the laws of the United States and authorized to engage in the business of banking under the National Bank Act. The Bank of New Jersey changed its name to Horizon Bank of Pennsylvania, N.A., on May 30, 1986. The main and only office of the New Jersey bank is currently located at 226 Rittenhouse Square, Philadelphia, Pennsylvania.

 9. Horizon Bancorp is a bank holding company incorporated under the laws of New Jersey. The operations of Horizon Bancorp's banking subsidiaries are principally conducted in New Jersey. The main office of Horizon Bancorp is located at 334 Madison Avenue, Morristown, New Jersey.

 10. On May 6, 1985, the New Jersey bank, made application to the Comptroller to relocate its main and only office from 312 West Route 38, Moorestown, New Jersey, to 226 Rittenhouse Square, Philadelphia, Pennsylvania, a distance of approximately 11 1/2 miles.

 11. On June 5, 1985, the Pennsylvania Department of Banking filed a timely comment letter with the Comptroller of the Currency in opposition to Bank of New Jersey's relocation. The Department stated in its letter that: (a) Section 30 of the National Bank Act does not permit interstate relocation of a main office (12 U.S.C.A. § 30); (b) the Commissioner's approval of the relocation would violate section 1842(d) of the Bank Holding Company Act (12 U.S.C.A. § 1842(d)(the "Douglas Amendment"); and (c) approval would violate section 115 of the Pennsylvania Banking Code, Pa. Stat. Ann. tit. 7, § 115 (Purdon Supp. 1985).

 12. By decision dated May 13, 1986, signed by Judith A. Walter, Senior Deputy Comptroller for National Operations, the Comptroller granted the application of the New Jersey bank to relocate its sole banking office from Moorestown, New Jersey to Philadelphia, Pennsylvania.

 13. The Comptroller ruled that section 30(b) of the National Bank Act (12 U.S.C.A. § 30(b)), rather than state law, controlled in this matter and that this statute allowed the interstate relocation of a main office, based on a reading of that statute as amended in 1959 and in 1982 and 1983. Decision of the Comptroller of the Currency on the Application of the Bank of New Jersey, National Association, Moorestown, New Jersey, to Relocate Its Main Office to Philadelphia, Pennsylvania, at 6-9.

 14. The Comptroller ruled that section 1842(d) of the Bank Holding Company Act (12 U.S.C.A. § 1842(d)) was inapplicable to the facts of this case. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.