FCD2	Application Procedure For A Charter [Section 11-37.5-109, C.R.S.]
A.	One or more individual incorporators desiring to organize a foreign capital depository shall file with the Commissioner an application to the Banking Board for a charter for a foreign capital depository.  The application shall be signed by each of the incorporators, sworn to before a notary, officer, or other official recognized by the laws of this state or under federal law as having the power to administer oaths or witness and attest to execution, and the application shall contain the following information in addition to any other information as may be required pursuant to Section 11-37.5-109, C.R.S., including the form of application prescribed by the Commissioner:
1.	The names, addresses, places of residence, and principal occupations of the incorporators and the stockholders initially subscribing to purchase the capital stock of the applicant and the number of shares subscribed by each initial subscriber;
2.	The name of the city or town and county in which the principal office of the depository is to be located;
3.	The names, principal occupations, addresses, places of residence, and business and professional experience of all proposed officers, including the officer designated as managing officer for the applicant;
4.	The number of members on the board of directors and the names, principal occupations, addresses, places of residence, and business and professional experience of the applicant’s initial board members;
5.	Financial statements that contain sufficient detail to substantiate each controlling person’s net worth;
6.	Documents certifying that the identity of each director, executive officer, and controlling person of the proposed foreign capital depository has been verified by means of a background check.  Such background check, which shall be in addition to any background check that the Commissioner or designated personnel of the Division shall conduct pursuant to Paragraph (B) of Banking Board Rule FCD8, shall be conducted by a reputable and licensed private investigative service and shall include inquiry into each individual’s financial means, employment history, credit history, criminal record, and record of tax delinquencies, if any;
7.	Evidence that capital stock has been fully subscribed and the incorporator(s) has paid in full in cash for stock having a par value of not less than one percent of the minimum capital and paid-in surplus requirements. 
8.	A business plan pro forma statement containing at minimum:
a.	A three-year projected comparative balance sheet, income statement and statement of cash flows, showing projections of income, costs, profits and cash flows;
b.	A three-year estimate of the volume of deposits and fiduciary assets, if applicable, to be placed with the proposed depository, with an explanation of the applicant’s reasons for believing it will develop such volume of business;

c.	A three-year capital plan detailing compliance with the minimum capital requirements set forth in Banking Board Rule FCD5 based on the business plan projections, and potential sources of additional capital infusions if necessary to maintain compliance; and,
d.	A statement of proposed expenditures for fixed assets such as premises, fixtures, furniture and equipment, and a statement of estimated start-up costs.
9.	A description of the services the depository will provide to nonresident aliens, which may include the following:
a.	A detailed description of the products and services that are to be offered;
b.	A discussion of any affiliated and/or non-affiliated business relationships that may be contemplated;
c.	The data processing system(s) intended to support the products and services to be offered, the level of customer access that will be provided, links to external systems, if applicable, and system controls and security features.
10.	The intended location of each depository office in this state and identification and location of any facilities (all of which places of business and facilities must be located in Colorado) that will be used to maintain or hold assets deposited with, or the funds or other assets of, the depository, including the identity and qualifications of anyone who will control or hold any such assets or funds and documentation of the proposed policies and procedures for assuring compliance by such parties with the Act and administrative rules pertaining to privacy and all other matters;
11.	The officers and employees of the applicant proposed to be bonded, the amount of bonds to be provided and the surety company or sureties proposed to issue said bonds, which bonds shall be in such form as is provided or approved by the Commissioner and issued by a surety company qualified and authorized to do business in Colorado or otherwise approved by the Commissioner;
12. 	The proposed articles of incorporation, in accordance with Section 11-37.5-109(1)(b), C.R.S.;
13.	A written copy of the applicant’s know-your-customer policy and a written description of the implementation method for such policy, prepared in reasonable detail. Such policy shall be approved by the applicant’s board of directors and noted in the applicant’s official records. The criteria for such policy are set forth in Banking Board Rule FCD22;
14.	A detailed written description of the applicant’s personnel training and pre-employment screening programs, physical and technological security systems, methods of compliance with applicable federal record keeping and reporting laws, including, without limitation, the “Federal Bank Secrecy Act,” and any contracts entered into with parties to provide any services or facilities related to these requirements, prepared in reasonable detail; and,
15.	Such other information relevant to an applicant’s fitness to operate a foreign capital depository as the Commissioner or Banking Board may require.

B.	The applicant shall be required to disclose to all customers by written notice at the time of deposit the following:
1.	“Neither deposits of currency, tangible personal property, any other property, business transactions, nor the foreign capital depository is insured by any governmental entity such as the United States or the State of Colorado;” 
2.	The notice shall be acknowledged in English, in writing, and by certified translation in the customer’s native language, by the customer; and
3.	The notice shall be provided to the customer in the English language and by certified translation in the customer’s native language.
C.	Subject to the provisions of Paragraph C, Banking Board Rule FCD9, an application fee of $25,000 shall be remitted to the “Division of Banking” in the form of a cashier’s check, or similar instrument, payable to the Colorado Division of Banking at the time of application.  Such application fee shall not be refundable in whole or in part.
D.	The proposed articles of incorporation, in accordance with Section 11-37.5-109(1)(b), C.R.S., shall be submitted with the application for a charter.
E.	The form for applying for a charter for a foreign capital depository may be obtained from the Division of Banking.
F.	The information required to be provided in the charter application that is referenced in Paragraphs (A)(1, 2, 3, 4, 10, 12) and (D) of this Rule shall be considered public information and available to interested persons.  All other information and documentation submitted by the applicant in support of its application shall be considered confidential and subject to the requirements of confidentiality set forth in Section 11-102-306, C.R.S., for the State Banking Board, the Bank Commissioner and employees of the Division of Banking.  Such confidential information may be provided to law enforcement agencies and to other agents of the Division of Banking for the purpose of conducting checks of background information pursuant to Paragraph (B) of Banking Board Rule FCD8 or other provisions of law.  In the event that any confidential information or documentation submitted in support of the application, or discovered in any background check, serves as the basis for the Banking Board’s decision to deny a charter at the public hearing required by Paragraph (D) of Banking Board Rule FCD8, then such information or documentation shall become public information and a matter of public record.
G.	Unless determined otherwise by the Banking Board, the application process for granting a charter shall be as provided in these rules and not as provided in the statutory application process for other state financial institutions.

FCD9	Procedural Rules For Determinations:  Approval Conditions   [Section 11-37.5-114, C.R.S.]
A.	In the event that an application is incomplete in any respect or if additional information is required, the applicant will be so notified by the Division of Banking of corrective measures deemed appropriate and allowed up to sixty (60) days in which to perfect the application or provide additional information.  An extension of this sixty (60) day period may be obtained from the Division of Banking by showing good cause why it should be extended.
B.	In the event that an application for a charter for a foreign capital depository does not include information required by Banking Board Rules FCD2 and FCD6, the Banking Board may direct that if a charter is to be issued for the applicant it shall be conditioned upon the submission of such information at least sixty (60) days prior to the opening of the foreign capital depository and that the Banking Board finds said information unobjectionable.
C.	In the event that a charter for a foreign capital depository is granted to an applicant, the applicant, within five business days of receipt by the applicant of notice of approval of the charter, shall pay to the Division of Banking an initial charter fee of $96,000, less the fee paid to the Division of Banking at the time of the application pursuant to Paragraph (B) of Banking Board Rule FCD2, which fee shall be deposited in the account established pursuant to Section 11-37.5-118 C.R.S., and thereafter shall not be refunded in whole or in part.
D.	Following approval of an application for charter for a foreign capital depository, but prior to issuance of the charter, the applicant shall:
1.	Provide an attestation prepared by a certified public accountant confirming that the applicant has initial paid-in capital in an amount sufficient to comply with Banking Board Rule FCD5, or such greater amount as ordered by the Banking Board;
2.	Provide an evaluation conducted by an independent auditor or consulting firm acceptable to the Commissioner, attesting to the adequacy of the applicant’s information technology system to support the products and services described in the application pursuant to Banking Board Rule FCD2(A)(9). The scope of such evaluation shall be approved in advance by the Commissioner and include a review of internal controls and security features reasonably designed to protect the integrity and confidentiality of customer financial records;
3.	Agree in writing to provide monthly financial statements for the first three years of operations, or such longer period as may be ordered by the Commissioner. Such financials are to include a balance sheet and income statement as of month end prepared in accordance with generally accepted accounting principles, and submitted to the Division of Banking on or before the fifteenth day following the end of each month;
4.	Agree in writing to submit to the Commissioner, for prior review and approval, any material variations from the activities and strategies described in the business plan; and,
5.	Agree in writing that for the first three years of operations, or such longer time as may be ordered by the Commissioner, a background review will be conducted on any director, executive officer or controlling person not previously approved by the Banking Board. Such background review shall be conducted in accordance with Banking Board Rule FCD2(6), and a background report, along with financial statements and finger prints shall be submitted to the Commissioner for prior review and approval.