Statechartered

State-chartered refers to the legal status of an institution that has been chartered by a state government rather than by the federal government. A state charter is issued by the state's legislative or regulatory authority and defines the organization’s name, purpose, governance, and powers within that state’s jurisdiction. State charters are common for banks, insurance companies, utilities, and corporations, and they enable the entity to operate lawfully, raise capital, and enter into contracts within the state.

In U.S. banking, a state-chartered bank is created under state law by a state banking authority. These banks may be members of the Federal Reserve System or nonmembers, and most are insured by the Federal Deposit Insurance Corporation. Regulation is shared between the state authority and federal regulators—the FDIC for deposit insurance and, depending on membership, the Federal Reserve or the Office of the Comptroller of the Currency for supervision. A bank’s charter also determines geographic scope, branching, and certain powers, with differences from nationally chartered banks, which are created by the federal government and regulated by the OCC.

In other contexts, state-chartered corporations and professional entities are formed under state corporate codes and receive a state charter or articles of incorporation. They are subject to annual reports, state taxes, and compliance requirements. Foreign corporations wishing to transact business in a state may need to obtain a state charter or certificate of authority.

Powers and liabilities arise from the charter and state law; changing a charter, reincorporating in another state, or converting to a different form may require legal processes. The concept highlights the division of powers in federal systems between state and national authorities.