ENROLLED
       2014 Legislature            CS for CS for SB 1012, 1st Engrossed
       
       
       
       
       
       
                                                             20141012er
    1  
    2         An act relating to financial services; amending s.
    3         655.005, F.S.; revising the definition of “related
    4         interest”; creating s. 655.017, F.S.; preempting to
    5         the state the regulation of certain financial or
    6         lending activities of entities subject to the
    7         jurisdiction of the office or other regulatory
    8         agencies; providing that counties and municipalities
    9         may engage in investigations and proceedings against
   10         financial institutions that are not preempted;
   11         requiring a financial institution to notify the office
   12         if such local action is commenced; providing for the
   13         office’s sole and exclusive jurisdiction in certain
   14         cases; providing applicability; amending s. 655.0322,
   15         F.S.; revising provisions relating to prohibited acts
   16         and practices by a financial institution; applying
   17         certain provisions to affiliates; amending s. 655.034,
   18         F.S.; authorizing the circuit court to issue an
   19         injunction in order to protect the interests of the
   20         depositors, members, creditors, or stockholders of a
   21         financial institution and the public’s interest in the
   22         safety and soundness of the financial institution
   23         system; defining “formal enforcement action”; amending
   24         s. 655.037, F.S.; conforming a cross-reference;
   25         amending s. 655.0385, F.S.; prohibiting a director or
   26         executive officer from concurrently serving as a
   27         director or officer in a financial institution or
   28         affiliate in the same geographical area or the same
   29         major business market area unless waived by the Office
   30         of Financial Regulation; amending s. 655.041, F.S.;
   31         revising provisions relating to administrative fines;
   32         clarifying that the office may initiate administrative
   33         proceedings for violations of rules; providing that
   34         fines for violations begin accruing immediately upon
   35         the service of a complaint; applying certain
   36         provisions to affiliates; revising the applications
   37         for imposing a fine; amending s. 655.045, F.S.;
   38         requiring the office to conduct an examination of a
   39         financial institution within a specified period;
   40         amending s. 655.057, F.S.; conforming a cross
   41         reference; providing that specified records are not
   42         considered a waiver of privileges or legal rights in
   43         certain proceedings; clarifying who has a right to
   44         copy member or shareholder records; creating s.
   45         655.0591, F.S.; providing notice requirements and
   46         procedures that allow a financial institution to
   47         protect trade secrets included in documents submitted
   48         to the office; amending s. 655.50, F.S.; revising
   49         provisions relating to the control of money laundering
   50         to also include terrorist financing; adding and
   51         revising definitions; requiring a financial
   52         institution to have a BSA/AML compliance officer;
   53         revising records requirements; updating cross
   54         references; amending s. 655.85, F.S.; clarifying that
   55         an institution may impose a fee for the settlement of
   56         a check under certain circumstances; providing
   57         legislative intent; amending s. 655.921, F.S.;
   58         revising provisions relating to business transactions
   59         by an out-of-state financial institution; providing
   60         that such institution may file suit to collect a
   61         security interest in collateral; amending s. 655.922,
   62         F.S.; revising provisions relating to the name of a
   63         financial institution; prohibiting certain financial
   64         institutions from using a name that may mislead
   65         consumers; authorizing the office to seek court orders
   66         to annul or dissolve a business entity for certain
   67         violations and to issue emergency cease and desist
   68         orders; amending s. 655.948, F.S.; requiring a
   69         financial institution to notify the office of any
   70         investigations or proceedings initiated by a county or
   71         municipality against the institution within a
   72         specified timeframe; creating s. 655.955, F.S.;
   73         providing that a financial institution is not civilly
   74         liable solely by virtue of extending credit to a
   75         person; providing applicability; amending s. 657.008,
   76         F.S.; requiring certain credit unions seeking to
   77         establish a branch office to submit an application to
   78         the office for examination and approval; providing the
   79         criteria for the examination; amending s. 657.028,
   80         F.S.; revising provisions relating to prohibited
   81         activities of directors, officers, committee members,
   82         employees, and agents of credit unions; requiring the
   83         name and address of the credit manager to be submitted
   84         to the office; amending s. 657.041, F.S.; authorizing
   85         a credit union to pay health and accident insurance
   86         premiums and to fund employee benefit plans under
   87         certain circumstances; amending s. 658.12, F.S.;
   88         revising the definition of “trust business”; amending
   89         ss. 658.21 and 658.235, F.S.; conforming cross
   90         references; repealing s. 658.49, F.S., relating to
   91         requirements for bank loans up to $50,000; amending
   92         ss. 663.02 and 663.09, F.S.; conforming provisions to
   93         changes made by the act; amending s. 663.12, F.S.;
   94         deleting an annual assessment imposed on certain
   95         international offices; amending s. 663.306, F.S.;
   96         conforming provisions to changes made by the act;
   97         amending ss. 665.013, 665.033, 665.034, 667.003,
   98         667.006, and 667.008, F.S.; conforming cross
   99         references; amending s. 494.001, F.S.; providing and
  100         revising definitions; amending s. 494.0012, F.S.;
  101         authorizing the Office of Financial Regulation to
  102         conduct joint or concurrent examinations of licensees;
  103         amending s. 494.00255, F.S.; providing that violating
  104         specified rules is grounds for disciplinary action;
  105         repealing s. 494.0028, F.S., relating to arbitration
  106         of disputes involving certain agreements; amending ss.
  107         494.00313 and 494.00322, F.S.; providing for change in
  108         license status if a licensed loan originator or
  109         mortgage broker fails to meet certain requirements for
  110         annual license renewal by specified dates; amending s.
  111         494.0036, F.S.; providing guidelines for renewal of a
  112         mortgage broker branch office license; providing for
  113         change in license status if a licensed branch office
  114         fails to meet certain requirements for annual license
  115         renewal by specified dates; amending s. 494.0038,
  116         F.S.; deleting certain requirements regarding loan
  117         origination and disclosure; amending s. 494.004, F.S.;
  118         deleting a requirement that a licensee provide certain
  119         notice to a borrower in mortgage loan transactions;
  120         authorizing the Financial Services Commission to adopt
  121         rules prescribing the time by which a mortgage broker
  122         must file a report of condition; amending s. 494.0042,
  123         F.S.; conforming a cross-reference; repealing s.
  124         494.00421, F.S., relating to required disclosures to
  125         borrowers in mortgage broker agreements by mortgage
  126         brokers receiving loan origination fees; amending s.
  127         494.00611, F.S.; revising a cross-reference; amending
  128         s. 494.00612, F.S.; providing for change in license
  129         status if a licensed mortgage lender fails to meet
  130         certain requirements for annual license renewal by
  131         specified dates; amending s. 494.0066, F.S.; providing
  132         guidelines for renewal of a mortgage lender branch
  133         office license; providing for change in license status
  134         if a licensed branch office fails to meet certain
  135         requirements for annual license renewal by specified
  136         dates; amending s. 494.0067, F.S.; deleting
  137         requirements that a mortgage lender provide an
  138         applicant for a mortgage loan a good faith estimate of
  139         costs and written disclosures related to adjustable
  140         rate mortgages; deleting requirement that mortgage
  141         lender provide notice of material changes in terms of
  142         a mortgage loan to a borrower in mortgage loan
  143         transactions; revising period during which mortgage
  144         lenders may service loans without meeting certain
  145         requirements; authorizing the commission to adopt
  146         rules prescribing the time by which a mortgage lender
  147         must file a report of condition; repealing s.
  148         494.0068, F.S., relating to required disclosures to
  149         borrowers by mortgage lenders before the borrower
  150         accepts certain fees; amending s. 494.007, F.S.;
  151         deleting the requirement that a mortgage lender
  152         disclose a certain fee and whether the fee is
  153         refundable; amending s. 494.0073, F.S.; conforming a
  154         cross-reference; repealing part IV of chapter 494,
  155         F.S., relating to the Florida Fair Lending Act;
  156         repealing s. 494.008, F.S., relating to conditions for
  157         mortgage loans of specified amounts secured by vacant
  158         land; providing an effective date.
  159          
  160  Be It Enacted by the Legislature of the State of Florida:
  161  
  162         Section 1. Paragraph (t) of subsection (1) of section
  163  655.005, Florida Statutes, is amended to read:
  164         655.005 Definitions.—
  165         (1) As used in the financial institutions codes, unless the
  166  context otherwise requires, the term:
  167         (t) “Related interest” means, with respect to a any
  168  person:,
  169         1. The person’s spouse, partner, sibling, parent, child, or
  170  other dependent individual residing in the same household as the
  171  person;. With respect to any person, the term means
  172         2. A company, partnership, corporation, or other business
  173  organization controlled by the person. A person has control if
  174  the person:
  175         a.1. Owns, controls, or has the power to vote 25 percent or
  176  more of any class of voting securities of the organization;
  177         b.2. Controls in any manner the election of a majority of
  178  the directors of the organization; or
  179         c.3. Has the power to exercise a controlling influence over
  180  the management or policies of the organization; or.
  181         3. An individual, company, partnership, corporation, or
  182  other business organization that engages in a common business
  183  enterprise with that person. A common business enterprise exists
  184  if:
  185         a. The expected source for repayment of a loan or extension
  186  of credit is the same for each borrower and neither borrower has
  187  another source of income from which the loan, together with the
  188  borrower’s other obligations, may be fully repaid. An employer
  189  will not be treated as a source of repayment under this
  190  paragraph because of wages and salaries paid to an employee,
  191  unless the standards of sub-subparagraph b. are met;
  192         b. Loans or extensions of credit are made:
  193         (I) To borrowers who are directly or indirectly related
  194  through common control, including where one borrower is directly
  195  or indirectly controlled by another borrower; and
  196         (II) Substantial financial interdependence exists between
  197  or among the borrowers. Substantial financial interdependence
  198  exists if 50 percent or more of one borrower’s gross receipts or
  199  gross expenditures on an annual basis are derived from
  200  transactions with the other borrower. Gross receipts and
  201  expenditures include gross revenues and expenses, intercompany
  202  loans, dividends, capital contributions, and similar receipts or
  203  payments;
  204         c. Separate persons borrow from a financial institution to
  205  acquire a business enterprise such that those borrowers will own
  206  more than 50 percent of the voting securities or voting
  207  interests of the enterprise, in which case a common enterprise
  208  is deemed to exist between the borrowers for purposes of
  209  combining the acquisition loans; or
  210         d. The office determines, based upon an evaluation of the
  211  facts and circumstances of particular transactions, that a
  212  common enterprise exists.
  213         Section 2. Section 655.017, Florida Statutes, is created to
  214  read:
  215         655.017 Local regulation preempted.—
  216         (1) A county or municipality may not enact or enforce a
  217  resolution, ordinance, or rule that regulates financial or
  218  lending activities, including a resolution, ordinance, or rule
  219  that disqualifies persons from doing business with a county or
  220  municipality based on lending interest rates, or that imposes
  221  reporting requirements or other obligations regarding the
  222  financial services or lending practices of persons or entities,
  223  and subsidiaries or affiliates thereof which:
  224         (a) Are subject to the jurisdiction of the office pursuant
  225  to the financial institutions codes;
  226         (b) Are subject to the jurisdiction of the Board of
  227  Governors of the Federal Reserve System, the Office of the
  228  Comptroller of the Currency, the National Credit Union
  229  Administration, the Federal Deposit Insurance Corporation, the
  230  Federal Trade Commission, or the United States Department of
  231  Housing and Urban Development;
  232         (c) Originate, purchase, sell, assign, secure, or service
  233  property interests or obligations created by financial
  234  transactions or loans made, executed, or originated by persons
  235  referred to in paragraph (a) or paragraph (b) which assist or
  236  facilitate such transactions;
  237         (d) Are chartered by the United States Congress to engage
  238  in secondary market mortgage transactions; or
  239         (e)Are acting on behalf of the Florida Housing Finance
  240  Corporation.
  241         (2) This section does not prevent a county or municipality
  242  from engaging in a civil investigation, initiating an
  243  administrative proceeding, or commencing a civil proceeding to
  244  determine compliance with or to enforce a state law, a rule or
  245  order of a state agency, or an ordinance or rule of a county or
  246  municipality which is not preempted pursuant to this section.
  247         (3) Notwithstanding subsection (2), a financial institution
  248  shall notify the office of any civil investigation or
  249  administrative or civil proceeding initiated by a county or
  250  municipality in accordance with s. 655.948. The office shall
  251  have sole and exclusive jurisdiction to initiate appropriate
  252  administrative or civil proceedings to enforce such laws, rules,
  253  or orders if the office determines that such investigation or
  254  proceeding:
  255         (a) Is based on a local resolution, ordinance, or rule that
  256  is preempted pursuant to subsection (1); or
  257         (b) Directly and specifically regulates the manner,
  258  content, or terms and conditions of a financial transaction or
  259  account related thereto, that a financial institution is
  260  authorized to engage in, or prevents, significantly interferes
  261  with, or alters the exercise of powers granted to a financial
  262  institution under the financial institutions codes or any
  263  applicable federal law or regulation.
  264         (4) This section does not limit or restrict the powers of
  265  the Department of Legal Affairs or the law enforcement agencies
  266  of this state to commence a civil or criminal action, as
  267  applicable.
  268         Section 3. Section 655.0322, Florida Statutes, is amended
  269  to read:
  270         655.0322 Prohibited acts and practices; criminal
  271  penalties.—
  272         (1) As used in this section, the term “financial
  273  institution” means a financial institution as defined in s.
  274  655.005 s. 655.50 which includes a state trust company, state or
  275  national bank, state or federal association, state or federal
  276  savings bank, state or federal credit union, Edge Act or
  277  agreement corporation, international bank agency, international
  278  branch, representative office or administrative office or other
  279  business entity as defined by the commission by rule, whether
  280  organized under the laws of this state, the laws of another
  281  state, or the laws of the United States, which institution is
  282  located in this state.
  283         (2) A It is unlawful for any financial institution
  284  affiliated party may not to ask for, or willfully and knowingly
  285  receive or consent to receive for himself or herself or any
  286  related interest, a any commission, emolument, gratuity, money,
  287  property, or thing of value for:
  288         (a) Procuring, or endeavoring to procure, for any person a
  289  loan or extension of credit from such financial institution,
  290  affiliate, subsidiary, or service corporation; or
  291         (b) Procuring, or endeavoring to procure, the purchase or
  292  discount of any note, draft, check, bill of exchange, or other
  293  obligation by such financial institution, affiliate, subsidiary,
  294  or service corporation.
  295  
  296  Any person who violates this subsection commits is guilty of a
  297  felony of the third degree, punishable as provided in s.
  298  775.082, s. 775.083, or s. 775.084.
  299         (3) A It is unlawful for any financial institution
  300  affiliated party may not to:
  301         (a) Knowingly receive or possess himself or herself of any
  302  of such financial institution’s its property other otherwise
  303  than in payment of a just demand, or and, with intent to deceive
  304  or defraud, to omit to make or cause to be made a full and true
  305  entry thereof in the financial institution’s its books and
  306  accounts, or concur in omitting to make any material entry
  307  thereof;
  308         (b) Embezzle, abstract, or misapply any money, property, or
  309  thing of value of such the financial institution, affiliate,
  310  subsidiary, or service corporation with intent to deceive or
  311  defraud the such financial institution, affiliate, subsidiary,
  312  or service corporation;
  313         (c) Knowingly make, draw, issue, put forth, or assign any
  314  certificate of deposit, draft, order, bill of exchange,
  315  acceptance, note, debenture, bond or other obligation, mortgage,
  316  judgment, or decree without authority from the board of
  317  directors of such financial institution;
  318         (d) Make a any false entry in any book, report, or
  319  statement of such financial institution, affiliate, subsidiary,
  320  or service corporation with intent to deceive or defraud the
  321  such financial institution, affiliate, subsidiary, or service
  322  corporation, or another person, firm, or corporation, or with
  323  intent to deceive the office, any other appropriate federal or
  324  state regulatory agency, or an any authorized representative
  325  appointed to examine the affairs of the such financial
  326  institution, affiliate, subsidiary, or service corporation; or
  327         (e) Deliver or disclose to the office or any of its
  328  employees any application, any examination report, report of
  329  condition, report of income and dividends, internal audit,
  330  account, statement, or other document known by him or her to be
  331  fraudulent or false as to any material matter.
  332  
  333  Any person who violates this subsection commits is guilty of a
  334  felony of the third degree, punishable as provided in s.
  335  775.082, s. 775.083, or s. 775.084.
  336         (4) A It is unlawful for any financial institution
  337  affiliated party may not to knowingly place among the assets of
  338  such financial institution, affiliate, subsidiary, or service
  339  corporation any note, obligation, or security that which the
  340  financial institution, affiliate, subsidiary, or service
  341  corporation does not own or that, which to the party’s
  342  individual’s knowledge, is fraudulent or otherwise worthless or
  343  for the financial institution-affiliated party any such
  344  individual to represent to the office that any note, obligation,
  345  or security carried as an asset of such financial institution,
  346  affiliate, subsidiary, or service corporation is the property of
  347  the financial institution, affiliate, subsidiary, or service
  348  corporation and is genuine if it is known to such party
  349  individual that such representation is false or that the such
  350  note, obligation, or security is fraudulent or otherwise
  351  worthless. Any person who violates this subsection commits is
  352  guilty of a felony of the third degree, punishable as provided
  353  in s. 775.082, s. 775.083, or s. 775.084.
  354         (5) Any person who willfully makes a any false statement or
  355  report, or willfully overvalues any land, property, or security,
  356  for the purposes of influencing in any way the action of a any
  357  financial institution, affiliate, subsidiary, or service
  358  corporation or any other entity authorized by law to extend
  359  credit, upon an any application, advance, discount, purchase,
  360  purchase agreement, repurchase agreement, commitment, or loan,
  361  or any change or extension of any of the same, by renewal,
  362  deferment of action or otherwise, or the acceptance, release, or
  363  substitution of security therefor, commits is guilty of a felony
  364  of the second degree, punishable as provided in s. 775.082, s.
  365  775.083, or s. 775.084.
  366         (6) Any person who knowingly executes, or attempts to
  367  execute, a scheme or artifice to defraud a financial
  368  institution, affiliate, subsidiary, or service corporation or
  369  any other entity authorized by law to extend credit, or to
  370  obtain any of the moneys, funds, credits, assets, securities, or
  371  other property owned by, or under the custody or control of, a
  372  financial institution, affiliate, subsidiary, service
  373  corporation, or any other entity authorized by law to extend
  374  credit, by means of false or fraudulent pretenses,
  375  representations, or promises, commits is guilty of a felony of
  376  the second degree, punishable as provided in s. 775.082, s.
  377  775.083, or s. 775.084.
  378         Section 4. Section 655.034, Florida Statutes, is amended to
  379  read:
  380         655.034 Injunctions.—
  381         (1) If the office determines that Whenever a violation of
  382  the financial institutions codes or a violation of a formal
  383  enforcement action has occurred or is threatened or impending
  384  and such violation will cause substantial injury to a state
  385  financial institution or to the depositors, members, creditors,
  386  or stockholders thereof, the circuit court has jurisdiction to
  387  hear a any complaint filed by the office and, upon proper
  388  showing, to issue an injunction restraining such violation or
  389  granting other such appropriate relief. Upon proper showing, the
  390  circuit court may also issue an injunction restraining any
  391  conduct or other act in order to protect the interests of
  392  depositors, members, creditors, or stockholders of a financial
  393  institution or the interests of the public in the safety and
  394  soundness of the financial institution system in this state and
  395  the proper conduct of fiduciary functions.
  396         (2) As used in this section, the term “formal enforcement
  397  action” means:
  398         (a) With respect to a financial institution, a supervisory
  399  action subject to enforcement pursuant to s. 655.033, s.
  400  655.037, or s. 655.041 which directs the financial institution
  401  to take corrective action to address violations of law or safety
  402  and soundness deficiencies.
  403         (b) With respect to a person or entity that is not a
  404  financial institution, an order issued by the office pursuant
  405  the financial institutions codes which is directed to such
  406  person or entity.
  407         Section 5. Subsection (1) of section 655.037, Florida
  408  Statutes, is amended to read:
  409         655.037 Removal of a financial institution-affiliated party
  410  by the office.—
  411         (1) The office may issue and serve upon any financial
  412  institution-affiliated party and upon the state financial
  413  institution, subsidiary, or service corporation involved, a
  414  complaint stating charges if whenever the office has reason to
  415  believe that the financial institution-affiliated party is
  416  engaging or has engaged in conduct that is:
  417         (a) An unsafe or unsound practice;
  418         (b) A prohibited act or practice;
  419         (c) A willful violation of any law relating to financial
  420  institutions;
  421         (d) A violation of any other law involving fraud or moral
  422  turpitude which constitutes a felony;
  423         (e) A violation of s. 655.50, relating to the Florida
  424  control of money laundering and terrorist financing in Financial
  425  Institutions Act; chapter 896, relating to offenses related to
  426  financial transactions; or any similar state or federal law;
  427         (f) A willful violation of any rule of the commission;
  428         (g) A willful violation of any order of the office;
  429         (h) A willful breach of any written agreement with the
  430  office; or
  431         (i) An act of commission or omission or a practice which is
  432  a breach of trust or a breach of fiduciary duty.
  433         Section 6. Present subsections (4) and (5) of section
  434  655.0385, Florida Statutes, are redesignated as subsections (5)
  435  and (6), respectively, and a new subsection (4) is added to that
  436  section, to read:
  437         655.0385 Disapproval of directors and executive officers.—
  438         (4) A director or executive officer of a state financial
  439  institution or affiliate may not concurrently serve as a
  440  director, or be employed as an officer, of a nonaffiliated
  441  financial institution or affiliate whose principal place of
  442  business is located in the same metropolitan statistical area in
  443  this state. A person affected by this prohibition may provide
  444  written notice to the office of the proposed appointment or
  445  employment. Such notice may provide information that such
  446  concurrent service does not present a conflict of interest and
  447  that neither institution is competitively disadvantaged in the
  448  common market area. The office may waive this prohibition if the
  449  information provided demonstrates that the individual’s proposed
  450  concurrent service does not present a conflict of interest and
  451  neither institution is competitively disadvantaged in the common
  452  market area. A person who violates this subsection is subject to
  453  suspension, removal, or prohibition under s. 655.037.
  454         Section 7. Section 655.041, Florida Statutes, is amended to
  455  read:
  456         655.041 Administrative fines; enforcement.—
  457         (1) The office may, by complaint, initiate a proceeding
  458  pursuant to chapter 120 to impose an administrative fine against
  459  any person found to have violated a any provision of the
  460  financial institutions codes or the rules adopted thereunder, an
  461  or a cease and desist order of the office, or a any written
  462  agreement with the office. Such No such proceeding may not shall
  463  be initiated and no fine shall accrue pursuant to this section
  464  until after such person has been notified in writing of the
  465  nature of the violation and has been afforded a reasonable
  466  period of time, as set forth in the notice, to correct the
  467  violation and has failed to do so. If the office provided such
  468  notice, a fine for a violation of an office order or written
  469  agreement begins to accrue immediately upon service of the
  470  complaint and continues to accrue until the violation is
  471  corrected.
  472         (2) Any Such fine may not exceed $2,500 per a day for each
  473  violation except as provided in this section.
  474         (a) If the office determines that any such person has
  475  recklessly violated a any provision of the financial
  476  institutions codes, an or a cease and desist order of the
  477  office, or a any written agreement with the office, which
  478  violation results in more than a minimal loss to a financial
  479  institution, affiliate, subsidiary, or service corporation, or
  480  in a pecuniary benefit to such person, the office may impose a
  481  fine of up to not exceeding $10,000 per a day for each day the
  482  violation continues.
  483         (b) If the office determines that any such person has
  484  knowingly violated a any provision of the financial institutions
  485  codes, an or a cease and desist order of the office, or a any
  486  written agreement with the office, which violation results in
  487  more than a minimal loss to a financial institution, affiliate,
  488  subsidiary, or service corporation, or in a pecuniary benefit to
  489  such a person, the office may impose a fine of up to not
  490  exceeding the lesser of $500,000 per day or 1 percent of the
  491  total assets in the case of a financial institution, or $50,000
  492  per day in any other case for each day the violation continues.
  493         (c) The office may by complaint impose an administrative
  494  fine of up to, not exceeding $10,000 per a day on a, upon any
  495  financial institution-affiliated party, on and upon a state
  496  financial institution, subsidiary, service corporation, or
  497  affiliate, or on a person subject to supervision by the office
  498  pursuant to s. 655.0391 which who refuses to permit an examiner
  499  to examine a state financial institution, subsidiary, or service
  500  corporation;, who refuses to permit an examiner to review the
  501  books and records of an affiliate or a contracting service
  502  entity subject to supervision by the office pursuant to s.
  503  655.0391;, or who refuses to give an examiner any information
  504  required in the course of an any examination or review of the
  505  books and records.
  506         (3) An Any administrative fine levied by the office may be
  507  enforced by the office by appropriate proceedings in the circuit
  508  court of the county in which such person resides or in which the
  509  principal office of a state financial institution, affiliate,
  510  subsidiary, service corporation, or contracting service entity
  511  is located or does business in the state. In any administrative
  512  or judicial proceeding arising under this section, a party may
  513  elect to correct the violation asserted by the office and, upon
  514  doing so, any fine ceases to accrue; however, an election to
  515  correct the violation does not render an any administrative or
  516  judicial proceeding moot.
  517         Section 8. Section 655.045, Florida Statutes, is amended to
  518  read:
  519         655.045 Examinations, reports, and internal audits;
  520  penalty.—
  521         (1) The office shall conduct an examination of the
  522  condition of each state financial institution at least every 18
  523  months during each 18-month period. The office may conduct more
  524  frequent examinations based upon the risk profile of the
  525  financial institution, prior examination results, or significant
  526  changes in the institution or its operations. The office may use
  527  continuous, phase, or other flexible scheduling examination
  528  methods for very large or complex state financial institutions
  529  and financial institutions owned or controlled by a multi
  530  financial institution holding company. The office shall consider
  531  examination guidelines from federal regulatory agencies in order
  532  to facilitate, coordinate, and standardize examination
  533  processes.
  534         (a) With respect to, and examination of, the condition of a
  535  state institution, The office may accept an examination of a
  536  state financial institution made by an appropriate federal
  537  regulatory agency, or may conduct make a joint or concurrent
  538  examination of the institution with the federal agency. However,
  539  at least once during each 36-month period beginning July 1,
  540  2014, the office shall conduct an examination of each state
  541  financial institution in a manner that allows the preparation of
  542  a complete examination report not subject to the right of a
  543  federal or other non-Florida entity to limit access to the
  544  information contained therein. The office may furnish a copy of
  545  all examinations or reviews made of financial institutions or
  546  their affiliates to the state or federal agencies participating
  547  in the examination, investigation, or review, or as otherwise
  548  authorized under by s. 655.057.
  549         (b) If, as a part of an examination or investigation of a
  550  state financial institution, subsidiary, or service corporation,
  551  the office has reason to believe that the conduct or business
  552  operations of an affiliate may have a negative impact on the
  553  state financial institution, subsidiary, or service corporation,
  554  the office may conduct such examination or investigation of the
  555  affiliate as the office deems necessary.
  556         (c) The office may recover the costs of examination and
  557  supervision of a state financial institution, subsidiary, or
  558  service corporation that is determined by the office to be
  559  engaged in an unsafe or unsound practice. The office may also
  560  recover the costs of a any review conducted pursuant to
  561  paragraph (b) of an any affiliate of a state financial
  562  institution determined by the office to have contributed to an
  563  unsafe or unsound practice at a state financial institution,
  564  subsidiary, or service corporation.
  565         (d) As used in For the purposes of this section, the term
  566  “costs” means the salary and travel expenses directly
  567  attributable to the field staff examining the state financial
  568  institution, subsidiary, or service corporation, and the travel
  569  expenses of any supervisory staff required as a result of
  570  examination findings. The mailing of any costs incurred under
  571  this subsection must be postmarked within 30 days after the date
  572  of receipt of a notice stating that such costs are due. The
  573  office may levy a late payment of up to $100 per day or part
  574  thereof that a payment is overdue, unless excused for good
  575  cause. However, for intentional late payment of costs, the
  576  office may levy an administrative fine of up to $1,000 per day
  577  for each day the payment is overdue.
  578         (e) The office may require an audit of a state financial
  579  institution, subsidiary, or service corporation by an
  580  independent certified public accountant, or other person
  581  approved by the office, if the office, after conducting an
  582  examination of the state financial institution, subsidiary, or
  583  service corporation, or after accepting an examination of the
  584  such state financial institution by an appropriate state or
  585  federal regulatory agency, determines that an audit is necessary
  586  in order to ascertain the condition of the financial
  587  institution, subsidiary, or service corporation. The cost of
  588  such audit shall be paid by the state financial institution,
  589  subsidiary, or state service corporation audited.
  590         (2)(a) Each state financial institution, subsidiary, or
  591  service corporation shall submit a report, at least four times
  592  each calendar year, as of such dates as the commission or office
  593  determines. The Such report must include such information as the
  594  commission by rule requires for that type of institution.
  595         (a)(b) The office shall levy an administrative fine of up
  596  to $100 per day for each day the report is past due, unless it
  597  is excused for good cause. However,
  598         (b) For an intentional late filing of the report required
  599  under paragraph (a), the office shall levy an administrative
  600  fine of up to $1,000 per day for each day the report is past
  601  due.
  602         (3)(a) The board of directors of each state financial
  603  institution or, in the case of a credit union, the supervisory
  604  committee or audit committee shall perform or cause to be
  605  performed, within each calendar year, an internal audit of each
  606  state financial institution, subsidiary, or service corporation
  607  and to file a copy of the report and findings of such audit with
  608  the office on a timely basis. The Such internal audit must
  609  include such information as the commission by rule requires for
  610  that type of institution.
  611         (a)(b) With the approval of the office, the board of
  612  directors or, in the case of a credit union, the supervisory
  613  committee may elect, in lieu of such periodic audits, to adopt
  614  and implement an adequate continuous audit system and procedure
  615  that includes which must include full, adequate, and continuous
  616  written reports to, and review by, the board of directors or, in
  617  the case of a credit union, the supervisory committee, together
  618  with written statements of the actions taken thereon and reasons
  619  for omissions to take actions, all of which shall be noted in
  620  the minutes and filed among the records of the board of
  621  directors or, in the case of a credit union, the supervisory
  622  committee. If at any time such continuous audit system and
  623  procedure, including the reports and statements, becomes
  624  inadequate, in the judgment of the office, the state financial
  625  institution shall promptly make such changes as may be required
  626  by the office to cause the same to accomplish the purpose of
  627  this section.
  628         (b)(c)A Any de novo state financial institution open less
  629  than 4 months is exempt from the audit requirements of this
  630  section.
  631         (4) A copy of the report of each examination must be
  632  furnished to the entity examined and. Such report shall be
  633  presented to the board of directors at its next regular or
  634  special meeting.
  635         Section 9. Paragraph (a) of subsection (3) and subsections
  636  (4) through (6) of section 655.057, Florida Statutes, are
  637  amended to read:
  638         655.057 Records; limited restrictions upon public access.—
  639         (3) The provisions of this section do not prevent or
  640  restrict:
  641         (a) Publishing reports that are required to be submitted to
  642  the office pursuant to s. 655.045(2)(a) or required by
  643  applicable federal statutes or regulations to be published.
  644  
  645  Any confidential information or records obtained from the office
  646  pursuant to this subsection shall be maintained as confidential
  647  and exempt from the provisions of s. 119.07(1).
  648         (4)(a) Orders of courts or of administrative law judges for
  649  the production of confidential records or information must shall
  650  provide for inspection in camera by the court or the
  651  administrative law judge. and, After the court or administrative
  652  law judge determines has made a determination that the documents
  653  requested are relevant or would likely lead to the discovery of
  654  admissible evidence and that the information sought is not
  655  otherwise reasonably available from other sources, the said
  656  documents shall be subject to further orders by the court or the
  657  administrative law judge to protect the confidentiality thereof.
  658  Any order directing the release of information is shall be
  659  immediately reviewable, and a petition by the office for review
  660  of such order shall automatically stays stay further proceedings
  661  in the trial court or the administrative hearing until the
  662  disposition of such petition by the reviewing court. If any
  663  other party files such a petition for review, it will operate as
  664  a stay of such proceedings only upon order of the reviewing
  665  court.
  666         (b) Confidential records and information furnished pursuant
  667  to a legislative subpoena shall be kept confidential by the
  668  legislative body or committee that which received the records or
  669  information. However, except in a case involving investigation
  670  of charges against a public official subject to impeachment or
  671  removal, and then disclosure of such information shall be only
  672  to the extent necessary as determined by the legislative body or
  673  committee to be necessary.
  674         (c) Documents, statements, books, records, and any other
  675  information provided to the office by any person pursuant to an
  676  investigation, examination, or other supervisory activity by the
  677  office are not considered a waiver of any privilege or other
  678  legal right in an administrative or legal proceeding in which
  679  the office is not a party.
  680         (5) Every credit union and mutual association shall
  681  maintain, in the principal office where its business is
  682  transacted, full and correct records of the names and residences
  683  of all the members of the credit union or mutual association in
  684  the principal office where its business is transacted. Such
  685  records are shall be subject to the inspection by of all the
  686  members of the credit union or mutual association, and the
  687  officers authorized to assess taxes under state authority,
  688  during normal business hours of each business day. No member or
  689  any other person has the right to copy the membership records
  690  for any purpose other than in the course of business of the
  691  credit union or mutual association, as authorized by the office
  692  or the board of directors of the credit union or mutual
  693  association. A current list of members shall be made available
  694  to the office’s examiners for their inspection and, upon the
  695  request of the office, shall be submitted to the office. Except
  696  as otherwise provided in this subsection, the list of the
  697  members of the credit union or mutual association is
  698  confidential and exempt from the provisions of s. 119.07(1).
  699         (6) Every bank, trust company, and stock association shall
  700  maintain, in the principal office where its business is
  701  transacted, full and complete records of the names and
  702  residences of all the shareholders of the bank, trust company,
  703  or stock association and the number of shares held by each. Such
  704  records are shall be subject to the inspection of all the
  705  shareholders of the bank, trust company, or stock association,
  706  and the officers authorized to assess taxes under state
  707  authority, during normal business hours of each banking day. No
  708  shareholder or any other person has the right to copy the
  709  shareholder records for any purpose other than in the course of
  710  business of the bank, the trust company, or the stock
  711  association, as authorized by the office or the board of
  712  directors of the bank, the trust company, or the stock
  713  association. A current list of shareholders shall be made
  714  available to the office’s examiners for their inspection and,
  715  upon the request of the office, shall be submitted to the
  716  office. Except as otherwise provided in this subsection, any
  717  portion of this list which reveals the identities of the
  718  shareholders is confidential and exempt from the provisions of
  719  s. 119.07(1).
  720         Section 10. Section 655.0591, Florida Statutes, is created
  721  to read:
  722         655.0591 Trade secret documents.—
  723         (1) If any person who is required to submit documents or
  724  other information to the office pursuant to the financial
  725  institutions codes, or by rule or order of the office or
  726  commission, claims that such submission contains a trade secret,
  727  such person may file with the office a notice of trade secret
  728  when the information is submitted to the office as provided in
  729  this section. Failure to file such notice constitutes a waiver
  730  of any claim by such person that the document or information is
  731  a trade secret. The notice must provide the contact information
  732  of the person claiming ownership of the trade secret. The person
  733  claiming the trade secret is responsible for updating the
  734  contact information with the office.
  735         (a) Each page of such document or specific portion of a
  736  document claimed to be a trade secret must be clearly marked
  737  with the words “trade secret.”
  738         (b) All material identified as a trade secret shall be
  739  segregated from all other material, such as by being sealed in
  740  an envelope clearly marked with the words “trade secret.”
  741         (c) In submitting a notice of trade secret to the office or
  742  the Department of Financial Services, the submitting party shall
  743  include an affidavit certifying under oath to the truth of the
  744  following statements concerning all documents or information
  745  that are claimed to be trade secrets:
  746         1. [...I consider/my company considers...] this information
  747  a trade secret that has value and provides an advantage or an
  748  opportunity to obtain an advantage over those who do not know or
  749  use it.
  750         2. [...I have/my company has...] taken measures to prevent
  751  the disclosure of the information to anyone other than those who
  752  have been selected to have access for limited purposes, and
  753  [...I intend/my company intends...] to continue to take such
  754  measures.
  755         3. The information is not, and has not been, reasonably
  756  obtainable without [...my/our...] consent by other persons by
  757  use of legitimate means.
  758         4. The information is not publicly available elsewhere.
  759         (2) If the office receives a public records request for a
  760  document or information that is marked and certified as a trade
  761  secret, the office shall promptly notify the person that
  762  certified the document as a trade secret. The notice shall be
  763  sent to the address provided with the most recent contact
  764  information provided to the office and must inform such person
  765  that, in order to avoid disclosure of the trade secret, the
  766  person must file an action in circuit court within 30 days after
  767  the date of the notice seeking a declaratory judgment that the
  768  document in question contains trade secrets and an order barring
  769  public disclosure of the document. The owner shall provide
  770  written notice to the office that the action was filed and the
  771  office may not release the documents pending the outcome of
  772  legal action. Failure to file an action within 30 days
  773  constitutes a waiver of any claim of confidentiality, and the
  774  office shall release the document as requested.
  775         (3) The office may disclose a trade secret, together with
  776  the claim that it is a trade secret, to an officer or employee
  777  of another governmental agency whose use of the trade secret is
  778  within the scope of his or her employment.
  779         Section 11. Section 655.50, Florida Statutes, is reordered
  780  and amended to read:
  781         655.50 Florida Control of Money Laundering and Terrorist
  782  Financing in Financial Institutions Act; reports of transactions
  783  involving currency or monetary instruments; when required;
  784  purpose; definitions; penalties.—
  785         (1) This section may be cited as the “Florida Control of
  786  Money Laundering and Terrorist Financing in Financial
  787  Institutions Act.”
  788         (2) It is The purpose of this section is to require the
  789  submission to the office of certain reports and the maintenance
  790  of certain records of customers, accounts, and transactions
  791  involving currency or monetary instruments or suspicious
  792  activities if when such reports and records deter using the use
  793  of financial institutions to conceal, move, or provide the
  794  proceeds obtained from or intended for of criminal or terrorist
  795  activities and if such reports and records activity and have a
  796  high degree of usefulness in criminal, tax, or regulatory
  797  investigations or proceedings.
  798         (3) As used in this section, the term:
  799         (a) “BSA/AML compliance officer” means the financial
  800  institution’s officer responsible for the development and
  801  implementation of the financial institution’s policies and
  802  procedures for complying with the requirements of this section
  803  relating to anti-money laundering (AML), and the requirements of
  804  the Bank Secrecy Act of 1970 (BSA), Pub. L. No. 91-508, as
  805  amended, the USA Patriot Act of 2001, Pub. L. No. 107-56, as
  806  amended, and federal and state rules and regulations adopted
  807  thereunder, and 31 C.F.R. parts 500-598, relating to the
  808  regulations of the Office of Foreign Assets Control (OFAC) of
  809  the United States Department of the Treasury.
  810         (b)(a) “Currency” means currency and coin of the United
  811  States or of any other country.
  812         (c)(b) “Financial institution” means a financial
  813  institution, as defined in 31 U.S.C. s. 5312, as amended,
  814  including a credit card bank, located in this state.
  815         (d)(c) “Financial transaction” means a transaction
  816  involving the movement of funds by wire, electronic funds
  817  transfer, or any other means, or involving one or more monetary
  818  instruments, which in any way or degree affects commerce, or a
  819  transaction involving the use of a financial institution that
  820  which is engaged in, or the activities of which affect, commerce
  821  in any way or degree.
  822         (e)(d) “Monetary instruments” means coin or currency of the
  823  United States or of any other country, travelers’ checks,
  824  personal checks, bank checks, money orders, stored value cards,
  825  prepaid cards, investment securities or in bearer form or
  826  otherwise in such form that title thereto passes upon delivery,
  827  and negotiable instruments in bearer form or otherwise in such
  828  form that title thereto passes upon delivery, or similar
  829  devices.
  830         (i)(e) “Transaction” means a purchase, sale, loan, pledge,
  831  gift, transfer, delivery, or other disposition, and with respect
  832  to a financial institution includes a deposit, withdrawal,
  833  transfer between accounts, exchange of currency, loan, extension
  834  of credit, purchase or sale of any stock, bond, certificate of
  835  deposit, or other monetary instrument, or any other payment,
  836  transfer, or delivery by, through, or to a financial
  837  institution, by whatever means effected.
  838         (f) “Report” means a report of each deposit, withdrawal,
  839  exchange of currency, or other payments or transfer, by,
  840  through, or to that financial institution, which that involves a
  841  transaction required or authorized to be reported by this
  842  section, and includes the electronic submission of such
  843  information in the manner provided for by rule of the
  844  commission.
  845         (g) “Specified unlawful activity” means any “racketeering
  846  activity” as defined in s. 895.02.
  847         (h) “Suspicious activity” means any transaction reportable
  848  as required and described under 31 C.F.R. s. 1020.320.
  849         (4) A financial institution shall designate and retain a
  850  BSA/AML compliance officer. The board of directors of a
  851  financial institution must ensure that the designated compliance
  852  officer is properly qualified and has sufficient authority and
  853  resources to administer an effective BSA/AML compliance program.
  854  The board is ultimately responsible for establishing the
  855  institution’s BSA/AML policies and overall BSA/AML compliance. A
  856  change in the BSA/AML compliance officer must be reported to the
  857  office.
  858         (5)(4)(a)A Every financial institution shall keep a record
  859  of each financial transaction occurring in this state known to
  860  it which involves to involve currency or other monetary
  861  instrument, as the commission prescribes by rule, has of a value
  862  greater than in excess of $10,000, and involves to involve the
  863  proceeds of specified unlawful activity, or is to be designed to
  864  evade the reporting requirements of this section, chapter 896,
  865  or any similar state or federal law, or which the financial
  866  institution reasonably believes is suspicious activity. Each
  867  financial institution and shall maintain appropriate procedures
  868  to ensure compliance with this section, chapter 896, and any
  869  other similar state or federal law. Any report of suspicious
  870  activity made pursuant to this subsection is entitled to the
  871  same confidentiality provided under 31 C.F.R. s. 1020.320,
  872  whether the report or information pertaining to or identifying
  873  the report is in the possession or control of the office or the
  874  reporting institution.
  875         (a)(b) Multiple financial transactions shall be treated as
  876  a single transaction if the financial institution has knowledge
  877  that they are made by or on behalf of any person and result in
  878  either cash in or cash out totaling more than $10,000 during any
  879  business day, as defined in s. 655.89(1).
  880         (b)(c)A Any financial institution may keep a record of any
  881  financial transaction occurring in this state, regardless of the
  882  value, if it suspects that the transaction involves to involve
  883  the proceeds of specified unlawful activity.
  884         (c)(d) A financial institution, or officer, employee, or
  885  agent thereof, which that files a report in good faith pursuant
  886  to this subsection section is not liable to any person for loss
  887  or damage caused in whole or in part by the making, filing, or
  888  governmental use of the report, or any information contained
  889  therein.
  890         (d)(5)(a) Each financial institution shall file a report
  891  with the office of the records record required under this
  892  subsection with the office paragraphs (4)(a) and (b) and any
  893  record maintained pursuant to paragraph (4)(c). Each report
  894  shall record filed pursuant to subsection (4) must be filed at
  895  such time and must contain such information as the commission
  896  requires by rule.
  897         (e)(b) The timely filing of the reports report required by
  898  31 U.S.C. s. 5313 and 31 C.F.R. part 1020 with the appropriate
  899  federal agency is deemed compliance with the reporting
  900  requirements of this subsection unless the reports are not
  901  regularly and comprehensively transmitted by the federal agency
  902  to the office.
  903         (6) Each financial institution shall maintain a record of
  904  each qualified business customer that is designation of a person
  905  granted an exemption under the authority of 31 U.S.C. s. 5313,
  906  including any name, address, and taxpayer identification number
  907  of the exempt customer person, as well as the name and address
  908  of the financial institution and the signature of the financial
  909  institution official designating the exempt customer person.
  910  Such record of exemptions shall be made available to the office
  911  for inspection and copying and shall be submitted to the office
  912  within 15 days after request.
  913         (7) All reports and records filed with the office pursuant
  914  to this section are confidential and exempt from s. 119.07(1).
  915  However, the office shall provide any report filed pursuant to
  916  this section, or information contained therein, to federal,
  917  state, and local law enforcement and prosecutorial agencies, and
  918  any federal or state agency responsible for the regulation or
  919  supervision of financial institutions.
  920         (8)(a) Each financial institution shall maintain:
  921         (a)For a minimum of 5 calendar years Full and complete
  922  records of all financial transactions, including all records
  923  required by 31 C.F.R. parts 500-598 and 1010 for a minimum of 5
  924  calendar years parts 103.33 and 103.34.
  925         (b) The financial institution shall retain A copy of all
  926  reports filed with the office under subsection (5) (4) for a
  927  minimum of 5 calendar years after submission of the report.
  928         (c) The financial institution shall retain A copy of all
  929  records of exemption for each qualified business customer
  930  designation of exempt person made pursuant to subsection (6) for
  931  a minimum of 5 calendar years after termination of exempt status
  932  of such customer.
  933         (9) The office, in addition to any other power conferred
  934  upon it to enforce and administer this chapter and the financial
  935  institutions codes, the office may:
  936         (a) Bring an action in any court of competent jurisdiction
  937  to enforce or administer this section. In such action, the
  938  office may seek an award of any civil penalty authorized by law
  939  and any other appropriate relief at law or equity.
  940         (b) Pursuant to s. 655.033, issue and serve upon a person
  941  an order requiring such person to cease and desist and take
  942  corrective action if whenever the office finds that such person
  943  is violating, has violated, or is about to violate any provision
  944  of this section, chapter 896, or any similar state or federal
  945  law; any rule or order adopted under this section, chapter 896,
  946  or any similar state or federal law; or any written agreement
  947  related to this section, chapter 896, or any similar state or
  948  federal law and entered into with the office.
  949         (c) Pursuant to s. 655.037, issue and serve upon any person
  950  an order of removal if whenever the office finds that such
  951  person is violating, has violated, or is about to violate any
  952  provision of this section, chapter 896, or any similar state or
  953  federal law; any rule or order adopted under this section,
  954  chapter 896, or any similar state or federal law; or any written
  955  agreement related to this section, chapter 896, or any similar
  956  state or federal law and entered into with the office.
  957         (d) Impose and collect an administrative fine against any
  958  person found to have violated any provision of this section,
  959  chapter 896, or any similar state or federal law; any rule or
  960  order adopted under this section, chapter 896, or any similar
  961  state or federal law; or any written agreement related to this
  962  section, chapter 896, or any similar state or federal law and
  963  entered into with the office, in an amount up to not exceeding
  964  $10,000 per a day for each willful violation or $500 per a day
  965  for each negligent violation.
  966         (10)(a) Except as provided in paragraph (b), a person who
  967  willfully violates any provision of this section commits is
  968  guilty of a misdemeanor of the first degree, punishable as
  969  provided in s. 775.082 or s. 775.083.
  970         (b) A person who willfully violates or knowingly causes
  971  another to violate any provision of this section, when the
  972  violation involves:
  973         1. Financial transactions totaling or exceeding $300 but
  974  less than $20,000 in any 12-month period, commits is guilty of a
  975  felony of the third degree, punishable as provided in s. 775.082
  976  or s. 775.083; or
  977         2. Financial transactions totaling or exceeding $20,000 but
  978  less than $100,000 in any 12-month period, commits is guilty of
  979  a felony of the second degree, punishable as provided in s.
  980  775.082 or s. 775.083; or
  981         3. Financial transactions totaling or exceeding $100,000 in
  982  any 12-month period, commits is guilty of a felony of the first
  983  degree, punishable as provided in s. 775.082 or s. 775.083.
  984         (c) In addition to the penalties otherwise authorized by
  985  ss. 775.082 and 775.083, a person who has been convicted of or
  986  who has pleaded guilty or nolo contendere to having violated
  987  paragraph (b) may be sentenced to pay a fine of up to not
  988  exceeding $250,000 or twice the value of the financial
  989  transaction, whichever is greater, except that on a second or
  990  subsequent conviction for or plea of guilty or nolo contendere
  991  to a violation of paragraph (b), the fine may be up to $500,000
  992  or quintuple the value of the financial transaction, whichever
  993  is greater.
  994         (d) A financial institution as defined in s. 655.005 which
  995  that willfully violates this section is also liable for a civil
  996  penalty of not more than the greater of the value of the
  997  financial transaction involved or $25,000. However, the civil
  998  penalty may not exceed $100,000.
  999         (e) A person other than a financial institution as defined
 1000  in s. 655.005 who violates this section is also liable for a
 1001  civil penalty of not more than the greater of the value of the
 1002  financial transaction involved or $25,000.
 1003         (11) In any prosecution brought pursuant to this section,
 1004  the common law corpus delicti rule does not apply. The
 1005  defendant’s confession or admission is admissible during trial
 1006  without the state having to prove the corpus delicti if the
 1007  court finds in a hearing conducted outside the presence of the
 1008  jury that the defendant’s confession or admission is
 1009  trustworthy. Before the court admits the defendant’s confession
 1010  or admission, the state must prove by a preponderance of the
 1011  evidence that there is sufficient corroborating evidence that
 1012  tends to establish the trustworthiness of the statement by the
 1013  defendant. Hearsay evidence is admissible during the
 1014  presentation of evidence at the hearing. In making its
 1015  determination, the court may consider all relevant corroborating
 1016  evidence, including the defendant’s statements.
 1017         Section 12. Section 655.85, Florida Statutes, is amended to
 1018  read:
 1019         655.85 Settlement of checks.—If a Whenever any check is
 1020  forwarded or presented to a financial an institution for
 1021  payment, except when presented by the payee in person, the
 1022  paying institution or remitting institution shall settle the
 1023  amount of the check at par may pay or remit the same, at its
 1024  option, either in money or in exchange drawn on its reserve
 1025  agent or agents in the City of New York or in any reserve city
 1026  within the Sixth Federal Reserve District; however, an
 1027  institution may not settle any check drawn on it otherwise than
 1028  at par. The term “at par” applies only to the settlement of
 1029  checks between collecting and paying or remitting institutions
 1030  and does not apply to, or prohibit an institution from,
 1031  deducting from the face amount of the check drawn on it a fee
 1032  for paying the check if the check is presented to the
 1033  institution by the payee in person. The provisions of This
 1034  section does do not apply with respect to the settlement of a
 1035  check sent to such institution as a special collection item.
 1036         Section 13. The Legislature intends that the amendment to
 1037  s. 655.85, Florida Statutes, made by this act, clarify the
 1038  relevant portions of the financial institutions codes as defined
 1039  in s. 655.005, Florida Statutes, relating to fees imposed by a
 1040  financial institution for the payment of checks presented in
 1041  person without requiring further amendment.
 1042         Section 14. Section 655.921, Florida Statutes, is amended
 1043  to read:
 1044         655.921 Transaction of business by out-of-state financial
 1045  institutions; exempt transactions in the financial institutions
 1046  codes.—
 1047         (1) Nothing in The financial institutions codes do not
 1048  shall be construed to prohibit a financial institution or
 1049  business trust that has having its principal place of business
 1050  outside this state and that does not operate operating branches
 1051  in this state from:
 1052         (a) Contracting in this state with any person to acquire
 1053  from such person a part, or the entire, interest in a loan that
 1054  such person proposes to make, has heretofore made, or hereafter
 1055  makes, together with a like interest in any security instrument
 1056  covering real or personal property in the state proposed to be
 1057  given or hereafter or heretofore given to such person to secure
 1058  or evidence such loan.
 1059         (b) Entering into mortgage servicing contracts with persons
 1060  authorized to transact business in this state and enforcing in
 1061  this state the obligations heretofore or hereafter acquired by
 1062  it in the transaction of business outside this state or in the
 1063  transaction of any business authorized by this section.
 1064         (c) Acquiring, holding, leasing, mortgaging, contracting
 1065  with respect to, or otherwise protecting, managing, or conveying
 1066  property in this state which is has heretofore or may hereafter
 1067  be assigned, transferred, mortgaged, or conveyed to it as
 1068  security for, or in whole or in part in satisfaction of, a loan
 1069  or loans made by it or obligations acquired by it in the
 1070  transaction of any business authorized by this section.
 1071         (d) Making loans or committing to make loans to any person
 1072  located in this state and soliciting compensating deposit
 1073  balances in connection therewith.
 1074         (e) Filing suit in any court in this state to collect any
 1075  debt or foreclose on any security interest in collateral
 1076  securing a debt.
 1077         (2) A No such financial institution or business trust may
 1078  not shall be deemed to be transacting business in this state, or
 1079  be required to qualify so to do so, solely by reason of the
 1080  performance of any of the acts or business authorized in this
 1081  section.
 1082         Section 15. Section 655.922, Florida Statutes, is amended
 1083  to read:
 1084         655.922 Banking business by unauthorized persons; use of
 1085  name.—
 1086         (1) Only No person other than a financial institution
 1087  authorized to do business in this state pursuant to the
 1088  financial institutions codes of any state or federal law may
 1089  shall, in this state, engage in the business of soliciting or
 1090  receiving funds for deposit, or of issuing certificates of
 1091  deposit, or of paying checks in this state; and only such
 1092  financial institution may no person shall establish or maintain
 1093  a place of business in this state for any of the functions,
 1094  transactions, or purposes identified mentioned in this
 1095  subsection. A Any person who violates the provisions of this
 1096  subsection commits is guilty of a felony of the third degree,
 1097  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 1098  This subsection does not prohibit the issuance or sale by a
 1099  financial institution of traveler’s checks, money orders, or
 1100  other instruments for the transmission or payment of money, by
 1101  or through employees or agents of the financial institution off
 1102  the financial institution’s premises.
 1103         (2) Only No person other than a financial institution
 1104  authorized to do business shall, in this state as provided under
 1105  subsection (1) may:
 1106         (a) Transact or solicit business under any name or title
 1107  that contains the words “bank,” “banc,” “banco,” “banque,”
 1108  “banker,” “banking,” “trust company,” “savings and loan
 1109  association,” “savings bank,” or “credit union,” or words of
 1110  similar import, in any context or in any manner;
 1111         (b) Use any name, word, trademark, service mark, trade
 1112  name, Internet address, logo, sign, symbol, or device in any
 1113  context or in any manner; or
 1114         (c) Circulate or use any letterhead, billhead, circular,
 1115  paper, electronic media, Internet website or posting, or writing
 1116  of any kind or otherwise advertise or represent in any manner,
 1117  
 1118  which indicates or reasonably implies that the business being
 1119  solicited, conducted, or advertised is the kind or character of
 1120  business transacted or conducted by a financial institution or
 1121  which is likely to lead any person to believe that such business
 1122  is that of a financial institution; however, the words “bank,”
 1123  “banc,” “banco,” “banque,” “banker,” “banking,” “trust company,”
 1124  “savings and loan association,” “savings bank,” or “credit
 1125  union,” or the plural of any thereof, may be used by, and in the
 1126  corporate or other name or title of, any company that which is
 1127  or becomes a financial institution holding company of a
 1128  financial institution pursuant to state or federal law; any
 1129  subsidiary of any such financial institution holding company
 1130  which includes as a part of its name or title all or any part,
 1131  or abbreviations, of the name or title of the financial
 1132  institution holding company of which it is a subsidiary; any
 1133  trade organization or association, whether or not incorporated,
 1134  functioning for the purpose of promoting the interests of
 1135  financial institutions or financial institution holding
 1136  companies, the active members of which are financial
 1137  institutions or financial institution holding companies; and any
 1138  international development bank chartered pursuant to part II of
 1139  chapter 663.
 1140         (3) A No person may not use the name, trademark, service
 1141  mark, trade name, Internet address, or logo of a any financial
 1142  institution or an affiliate or subsidiary thereof, or use a name
 1143  similar to that of a financial institution or an affiliate or
 1144  subsidiary thereof, to market or solicit business from a
 1145  customer or prospective customer of such institution if:
 1146         (a) The solicitation is done without the written consent of
 1147  the financial institution or its affiliate or subsidiary; and
 1148         (b) A reasonable person would believe that the materials
 1149  originated from, are endorsed by, or are connected with the
 1150  financial institution or its affiliates or subsidiaries.
 1151         (4) A financial institution, affiliate, subsidiary, or
 1152  service corporation may not do business, solicit, or advertise
 1153  in this state using a name, trademark, service mark, trade name,
 1154  Internet address, or logo that may mislead consumers or cause
 1155  confusion as to the identification of the proper legal business
 1156  entity or the nature of the financial institution’s business.
 1157         (5)(4) Any court, in a proceeding brought by the office, by
 1158  a any financial institution the principal place of business of
 1159  which is in this state, or by any other person residing, or
 1160  whose principal place of business is located, in this state and
 1161  whose interests are substantially affected thereby, may enjoin
 1162  any person from violating any provision of the provisions of
 1163  this section. Except for a financial institution duly chartered
 1164  by the office, the office may also seek an order from the
 1165  circuit court for the annulment or dissolution of a corporation
 1166  or any other business entity found violating any provision of
 1167  this section. For the purposes of this subsection, the interests
 1168  of a trade organization or association are deemed to be
 1169  substantially affected if the interests of any of its members
 1170  are so affected. In addition, The office may also issue and
 1171  serve upon any person who violates any provision of the
 1172  provisions of this section an emergency cease and desist order
 1173  or a complaint seeking a cease and desist order in accordance
 1174  with the procedures and in the manner prescribed by s. 655.033.
 1175  The office is not required to make any finding or determination
 1176  that a violation of this section is likely to result in
 1177  insolvency, substantial dissipation of assets or earnings, or
 1178  substantial prejudice to any person in association with the
 1179  issuance of an emergency cease and desist order.
 1180         (6)(5)Nothing in This section does not shall be construed
 1181  to prohibit the lawful establishment or operation the lawful
 1182  operations of a financial institution, affiliate, subsidiary, or
 1183  service corporation or and nothing in this code shall be
 1184  construed to prohibit any advertisement or other activity in
 1185  this state by any person if such prohibition would contravene
 1186  any applicable federal law that which preempts the law of this
 1187  state.
 1188         Section 16. Subsection (4) of section 655.948, Florida
 1189  Statutes, is amended to read:
 1190         655.948 Significant events; notice required.—
 1191         (4)(a) The office shall must exempt a financial institution
 1192  from any of the provisions of this section if the office
 1193  determines that such financial institution is operating in a
 1194  safe and sound manner pursuant to commission rules relating to
 1195  safe and sound operations. The commission shall adopt rules
 1196  defining the term “safe and sound” and explicitly stating the
 1197  criteria that which shall constitute operating in a safe and
 1198  sound manner. Notwithstanding this subsection:
 1199         (a)(b)Notwithstanding paragraph (a), All newly chartered
 1200  financial institutions are shall be subject to the requirements
 1201  of subsections (1) and (2) for 3 years.
 1202         (b) All financial institutions must notify the office
 1203  within 30 days of any civil investigation or any civil or
 1204  administrative proceeding initiated by a county or municipality
 1205  against the financial institution or its subsidiary or service
 1206  corporation. No liability may be incurred by a financial
 1207  institution, subsidiary, service corporation, or financial
 1208  institution-affiliated party as a result of making a good faith
 1209  effort to fulfill this disclosure requirement.
 1210         Section 17. Section 655.955, Florida Statutes, is created
 1211  to read:
 1212         655.955 Liability of financial institution to third
 1213  parties.—A financial institution is not civilly liable to a
 1214  third party for the actions or operations of a person solely by
 1215  virtue of extending a loan or a line of credit to such person.
 1216  This section does not modify, limit, or restrict the authority
 1217  of a state agency under applicable law to conduct an
 1218  investigation, bring a civil or administrative action, or
 1219  otherwise enforce state or federal laws against a financial
 1220  institution.
 1221         Section 18. Section 657.008, Florida Statutes, is amended
 1222  to read:
 1223         657.008 Place of doing business.—
 1224         (1) A Every credit union authorized to transact business
 1225  pursuant to the laws of this state shall have one principal
 1226  place of doing business as designated in its bylaws and where
 1227  legal process may be served. A credit union may change its place
 1228  of business through an amendment to its bylaws.
 1229         (2)(a)Following With 30 days’ prior written notification
 1230  to the office or within such other time as is approved by the
 1231  office, a credit union operating in a safe and sound manner may
 1232  maintain branches without requiring prior office examination and
 1233  approval at locations other than its main office or relocate
 1234  branches previously established if the maintenance of such
 1235  branches is determined by the board of directors to be
 1236  reasonably necessary to furnish service to its members.
 1237         (a)A credit union that requires office examination and
 1238  approval before establishing or relocating a branch must submit
 1239  a written application in such form and supported by such
 1240  information, data, and records as the commission or office may
 1241  require to make all findings necessary for approval. Upon
 1242  receiving the application and a nonrefundable filing fee for the
 1243  establishment of the branch, the office shall consider the
 1244  following in determining whether to reject or approve the
 1245  application:
 1246         1.The sufficiency of the net worth of the credit union in
 1247  relation to its deposit liabilities, including the proposed
 1248  branch, and the additional fixed assets, if any, which are
 1249  proposed for the branch and its operations without undue risk to
 1250  the credit union or its depositors;
 1251         2.The sufficiency of earnings and earnings prospects of
 1252  the credit union necessary to support the anticipated expenses
 1253  and operating losses of the branch during its formative or
 1254  initial years;
 1255         3.The sufficiency and quality of management available to
 1256  operate the branch;
 1257         4.The name of the proposed branch in order to determine if
 1258  it reasonably identifies the branch as a branch of the main
 1259  office and is not likely to unduly confuse the public; and
 1260         5. The substantial compliance of the applicant with the
 1261  applicable law governing its operations.
 1262         (b) If any branch is located outside this state, the cost
 1263  of examining such branch shall be borne by the credit union.
 1264  Such cost includes shall include, but is shall not be limited
 1265  to, examiner travel expense and per diem.
 1266         (3) A credit union may share office space with one or more
 1267  credit unions and contract with any person or corporation to
 1268  provide facilities or personnel.
 1269         (4) A Any credit union organized under this state or
 1270  federal law, the members of which are presently, or were at the
 1271  time of admission into the credit union, employees of the state
 1272  or a political subdivision or municipality thereof, or members
 1273  of the immediate families of such employees, may apply for space
 1274  in any building owned or leased by the state or respective
 1275  political subdivision or municipality in the community or
 1276  district in which the credit union does business.
 1277         (a) The application shall be addressed to the officer
 1278  charged with the allotment of space in such building. If space
 1279  is available, the officer may allot space to the credit union at
 1280  a reasonable charge for rent or services.
 1281         (b) If the governing body having jurisdiction over the
 1282  building determines that the services rendered by the credit
 1283  union to the employees of the governing body are equivalent to a
 1284  reasonable charge for rent or services, available space may be
 1285  allotted to the credit union without charge for rent or
 1286  services.
 1287         (5)(a) The office may authorize foreign credit unions to
 1288  establish branches in this state Florida if all of the following
 1289  criteria are met:
 1290         1. The state in which the foreign credit union’s home
 1291  office is located permits Florida credit unions to do business
 1292  in the state under restrictions that are no greater than those
 1293  placed upon a domestic credit union doing business in that
 1294  state. For this purpose, such restrictions must shall include,
 1295  but are not limited to, any fees, bonds, or other charges levied
 1296  on domestic credit unions doing business in that state.
 1297         2. The deposits of such foreign credit union and its
 1298  proposed Florida branch must shall have insurance of accounts
 1299  with the National Credit Union Administration.
 1300         3. The credit union’s field of membership is so limited as
 1301  to be within that meaning of that term as defined in s. 657.002.
 1302         (b) Every foreign credit union operating in this state must
 1303  Florida shall keep the office informed of every location at
 1304  which it is operating.
 1305         (c) If the office has reason to believe that a foreign
 1306  credit union is operating a branch in this state in an unsafe
 1307  and unsound manner, it shall have the right to examine such
 1308  branch. If, upon examination, the office finds that such branch
 1309  is operating in an unsafe and unsound manner, it shall require
 1310  the branch office to make appropriate modifications to bring the
 1311  such branch operations into compliance with generally accepted
 1312  credit union operation in this state. The Such foreign credit
 1313  union shall reimburse the office for the full cost of such this
 1314  examination. Costs shall include examiner salaries, per diem,
 1315  and travel expenses.
 1316         (d) Any foreign credit union operating in this state shall,
 1317  in any connection therewith, be subject to suit in the courts of
 1318  this state, by this state and by the residents citizens of this
 1319  state.
 1320         (6) A credit union may provide, directly or through a
 1321  contract with another company, off-premises armored car services
 1322  to its members. Armored car services do not constitute a branch
 1323  for the purposes of this section.
 1324         Section 19. Section 657.028, Florida Statutes, is amended
 1325  to read:
 1326         657.028 Activities of directors, officers, committee
 1327  members, employees, and agents.—
 1328         (1) An individual may not disburse funds of the credit
 1329  union for any extension of credit approved by her or him.
 1330         (2) An elected officer, or director, or any committee
 1331  member, other than the chief executive officer, may not be
 1332  compensated for her or his service as such.
 1333         (3) Except with the prior approval of the office, a person
 1334  may not serve as an officer, director, or committee member of a
 1335  credit union if she or he:
 1336         (a) Has been convicted of a felony or of an offense
 1337  involving dishonesty, a breach of trust, a violation of this
 1338  chapter, or fraud, except with the prior approval of the office;
 1339         (b) Has been adjudicated bankrupt within the previous 7
 1340  years;
 1341         (c) Has been removed by any regulatory agency as a
 1342  director, officer, committee member, or employee of a any
 1343  financial institution, except with the prior approval of the
 1344  office;
 1345         (d) Has performed acts of fraud or dishonesty, or has
 1346  failed to perform duties, resulting in a loss that which was
 1347  subject to a paid claim under a fidelity bond, except with the
 1348  prior approval of the office; or
 1349         (e) Has been found guilty of a violation of s. 655.50,
 1350  relating to the Florida control of money laundering and
 1351  terrorist financing in Financial Institutions Act; chapter 896,
 1352  relating to offenses related to financial transactions; or any
 1353  similar state or federal law; or
 1354         (f) Has defaulted on a debt or obligation to a financial
 1355  institution which resulted in a material loss to the financial
 1356  institution.
 1357         (4) A person may not serve as a director of a credit union
 1358  if she or he is an employee of the credit union, other than the
 1359  chief executive officer of the credit union.
 1360         (5) A director, officer, committee member, officer, agent,
 1361  or employee of the credit union may not in any manner, directly
 1362  or indirectly, participate in the deliberation upon or the
 1363  determination of any question affecting her or his pecuniary
 1364  interest or the pecuniary interest of any corporation,
 1365  partnership, or association, other than the credit union, in
 1366  which she or he or a member of her or his immediate family is
 1367  directly or indirectly interested.
 1368         (6) Within 30 days after election or appointment, a record
 1369  of the names and addresses of the members of the board, members
 1370  of committees, and all officers of the credit union, and the
 1371  credit manager shall be filed with the office on forms
 1372  prescribed by the commission.
 1373         Section 20. Section 657.041, Florida Statutes, is amended
 1374  to read:
 1375         657.041 Insurance; employee benefit plans.—
 1376         (1) A credit union may purchase for or make available to
 1377  its members credit life insurance, credit disability insurance,
 1378  life savings or depositors life insurance, or any other
 1379  insurance coverage which may be directly related to the
 1380  extension of credit or to the receipt of shares or deposits in
 1381  amounts related to the members’ respective ages, shares,
 1382  deposits, or credit balances, or to any combination thereof.
 1383         (2) A credit union may purchase and maintain insurance on
 1384  behalf of any person who is or was a director, officer,
 1385  employee, or agent of the credit union, or who is or was serving
 1386  at the request of the credit union as a director, officer,
 1387  employee, or agent of another corporation, partnership, joint
 1388  venture, trust, or other enterprise, against any liability
 1389  arising out of such person’s capacity or status with the credit
 1390  union, whether or not the credit union would have the power to
 1391  indemnify such person against the asserted liability.
 1392         (3) With the prior approval of members of a credit union
 1393  and the office, the credit union may pay the premiums for
 1394  reasonable health, accident, and related types of insurance
 1395  protection for members of the credit union’s board of directors,
 1396  credit committee, supervisory committee, or other volunteer
 1397  committee established by the board. Any insurance protection
 1398  purchased must cease upon the insured person’s leaving office
 1399  without residual benefits other than from pending claims, if
 1400  any, except that the credit union must comply with federal and
 1401  state laws providing departing officials the right to maintain
 1402  health insurance coverage at their own expense. The office shall
 1403  consider the credit union’s size and financial condition and the
 1404  duties of the board or other officials in its consideration of
 1405  the request for approval for insurance coverage and may withhold
 1406  approval if the request would create an unsafe or unsound
 1407  practice or condition for the credit union.
 1408         (4) With the prior approval of the board of a credit union
 1409  and the office, the credit union may fund employee benefit
 1410  plans. The office shall consider the credit union’s size and
 1411  financial condition and the duties of the employees and may
 1412  withhold approval if the request would create an unsafe or
 1413  unsound practice or condition for the credit union.
 1414         Section 21. Subsection (20) of section 658.12, Florida
 1415  Statutes, is amended to read:
 1416         658.12 Definitions.—Subject to other definitions contained
 1417  in the financial institutions codes and unless the context
 1418  otherwise requires:
 1419         (20) “Trust business” means the business of acting as a
 1420  fiduciary when such business is conducted by a bank, a state or
 1421  federal association, or a trust company, or and also when
 1422  conducted by any other business organization for compensation
 1423  that the office does not consider to be de minimis as its sole
 1424  or principal business.
 1425         Section 22. Subsection (4) of section 658.21, Florida
 1426  Statutes, is amended to read:
 1427         658.21 Approval of application; findings required.—The
 1428  office shall approve the application if it finds that:
 1429         (4) The proposed officers have sufficient financial
 1430  institution experience, ability, standing, and reputation and
 1431  the proposed directors have sufficient business experience,
 1432  ability, standing, and reputation to indicate reasonable promise
 1433  of successful operation, and none of the proposed officers or
 1434  directors has been convicted of, or pled guilty or nolo
 1435  contendere to, any violation of s. 655.50, relating to the
 1436  Florida control of money laundering and terrorist financing in
 1437  Financial Institutions Act; chapter 896, relating to offenses
 1438  related to financial institutions; or any similar state or
 1439  federal law. At least two of the proposed directors who are not
 1440  also proposed officers must shall have had at least 1 year
 1441  direct experience as an executive officer, regulator, or
 1442  director of a financial institution within the 3 years before of
 1443  the date of the application. However, if the applicant
 1444  demonstrates that at least one of the proposed directors has
 1445  very substantial experience as an executive officer, director,
 1446  or regulator of a financial institution more than 3 years before
 1447  the date of the application, the office may modify the
 1448  requirement and allow only one director to have direct financial
 1449  institution experience within the last 3 years. The proposed
 1450  president or chief executive officer must shall have had at
 1451  least 1 year of direct experience as an executive officer,
 1452  director, or regulator of a financial institution within the
 1453  last 3 years.
 1454         Section 23. Subsection (2) of section 658.235, Florida
 1455  Statutes, is amended to read:
 1456         658.235 Subscriptions for stock; approval of major
 1457  shareholders.—
 1458         (2) The directors shall also provide such detailed
 1459  financial, business, and biographical information as the
 1460  commission or office may reasonably require for each person who,
 1461  together with related interests, subscribes to 10 percent or
 1462  more of the voting stock or nonvoting stock that which is
 1463  convertible into voting stock of the proposed bank or trust
 1464  company. The office shall make an investigation of the
 1465  character, financial responsibility, and financial standing of
 1466  each such person in order to determine whether he or she is
 1467  likely to control the bank or trust company in a manner that
 1468  which would jeopardize the interests of the depositors and
 1469  creditors of the bank or trust company, the other stockholders,
 1470  or the general public. The This investigation must shall include
 1471  a determination of whether any such person has been convicted
 1472  of, or pled guilty or nolo contendere to, a violation of s.
 1473  655.50, relating to the Florida control of money laundering and
 1474  terrorist financing in Financial Institutions Act; chapter 896,
 1475  relating to offenses related to financial transactions; or any
 1476  similar state or federal law.
 1477         Section 24. Section 658.49, Florida Statutes, is repealed.
 1478         Section 25. Subsection (1) of section 663.02, Florida
 1479  Statutes, is amended to read:
 1480         663.02 Applicability of state banking laws.—
 1481         (1) International banking corporations having offices in
 1482  this state are shall be subject to all the provisions of the
 1483  financial institutions codes and chapter 655 as though such
 1484  international banking corporations were state banks or trust
 1485  companies, except where it may appear, from the context or
 1486  otherwise, that such provisions are clearly applicable only to
 1487  banks or trust companies organized under the laws of this state
 1488  or the United States. Without limiting the foregoing general
 1489  provisions, it is the intent of the Legislature that the
 1490  following provisions are applicable to such banks or trust
 1491  companies: s. 655.031, relating to administrative enforcement
 1492  guidelines; s. 655.032, relating to investigations, subpoenas,
 1493  hearings, and witnesses; s. 655.0321, relating to hearings,
 1494  proceedings, and related documents and restricted access
 1495  thereto; s. 655.033, relating to cease and desist orders; s.
 1496  655.037, relating to removal by the office of an officer,
 1497  director, committee member, employee, or other person; s.
 1498  655.041, relating to administrative fines and enforcement; s.
 1499  655.50, relating to the control of money laundering and
 1500  terrorist financing; s. 658.49, relating to loans by banks not
 1501  exceeding $50,000; and any provision of law for which the
 1502  penalty is increased under s. 775.31 for facilitating or
 1503  furthering terrorism. International banking corporations do
 1504  shall not have the powers conferred on domestic banks by the
 1505  provisions of s. 658.60, relating to deposits of public funds.
 1506  The provisions of Chapter 687, relating to interest and usury,
 1507  applies shall apply to all bank loans not subject to s. 658.49.
 1508         Section 26. Subsection (1) of section 663.09, Florida
 1509  Statutes, is amended to read:
 1510         663.09 Reports; records.—
 1511         (1) An Every international banking corporation doing
 1512  business in this state shall, at such times and in such form as
 1513  the commission prescribes, make written reports in the English
 1514  language to the office, under the oath of one of its officers,
 1515  managers, or agents transacting business in this state, showing
 1516  the amount of its assets and liabilities and containing such
 1517  other matters as the commission or office requires. An
 1518  international banking corporation that maintains two or more
 1519  offices may consolidate such information in one report unless
 1520  the office otherwise requires for purposes of its supervision of
 1521  the condition and operations of each such office. The late
 1522  filing of such reports is shall be subject to an the imposition
 1523  of the administrative fine as prescribed under by s.
 1524  655.045(2)(b). If any such international banking corporation
 1525  fails shall fail to make any such report, as directed by the
 1526  office, or if any such report contains a shall contain any false
 1527  statement knowingly made, the same shall be grounds for
 1528  revocation of the license of the international banking
 1529  corporation.
 1530         Section 27. Subsection (2) of section 663.12, Florida
 1531  Statutes, is amended to read:
 1532         663.12 Fees; assessments; fines.—
 1533         (2) Each international bank agency, international branch,
 1534  and state-chartered investment company shall pay to the office a
 1535  semiannual assessment, payable on or before January 31 and July
 1536  31 of each year, a semiannual assessment in an amount determined
 1537  by rule by the commission by rule and calculated in a manner so
 1538  as to recover the costs of the office incurred in connection
 1539  with the supervision of international banking activities
 1540  licensed under this part. The These rules must shall provide for
 1541  uniform rates of assessment for all licenses of the same type
 1542  and, shall provide for declining rates of assessment in relation
 1543  to the total assets of the licensee held in the state, but may
 1544  shall not result, in any event, provide for rates of assessment
 1545  which exceed the rate applicable to state banks pursuant to s.
 1546  658.73, unless the rate of assessment would result in a
 1547  semiannual assessment of less than $1,000. For the purposes of
 1548  this subsection, the total assets of an international bank
 1549  agency, international branch, or state-chartered investment
 1550  company must shall include amounts due the agency or branch or
 1551  state investment company from other offices, branches, or
 1552  subsidiaries of the international banking corporations or other
 1553  corporations of which the agency, branch, or state-chartered
 1554  investment company is a part or from entities related to that
 1555  international banking corporation. Each international
 1556  representative office, international administrative office, or
 1557  international trust company representative office shall pay to
 1558  the office an annual assessment in the amount of $2,000, payable
 1559  on or before January 31 of each year.
 1560         Section 28. Subsection (3) of section 663.306, Florida
 1561  Statutes, is amended to read:
 1562         663.306 Decision by office.—The office may, in its
 1563  discretion, approve or disapprove the application, but it shall
 1564  not approve the application unless it finds that:
 1565         (3) The proposed officers and directors have sufficient
 1566  experience, ability, standing, and reputation to indicate
 1567  reasonable promise of successful operation and none of the
 1568  proposed officers or directors have been convicted of, or pled
 1569  guilty or nolo contendere to, a violation of s. 655.50, relating
 1570  to the Florida control of money laundering and terrorist
 1571  financing in Financial Institutions Act; chapter 896, relating
 1572  to offenses related to financial transactions; or any similar
 1573  state or federal law.
 1574         Section 29. Subsection (28) of section 665.013, Florida
 1575  Statutes, is amended to read:
 1576         665.013 Applicability of chapter 658.—The following
 1577  sections of chapter 658, relating to banks and trust companies,
 1578  are applicable to an association to the same extent as if the
 1579  association were a “bank” operating thereunder:
 1580         (28) Section 658.49, relating to loans by banks not
 1581  exceeding $50,000.
 1582         Section 30. Paragraph (c) of subsection (1) of section
 1583  665.033, Florida Statutes, is amended to read:
 1584         665.033 Conversion of state or federal mutual association
 1585  to capital stock association.—
 1586         (1) CONVERSION INTO CAPITAL STOCK ASSOCIATION.—Any state or
 1587  federal mutual association may apply to the office for
 1588  permission to convert itself into an association operated under
 1589  the provisions of this chapter in accordance with the following
 1590  procedures:
 1591         (c) The office may approve or disapprove the plan in its
 1592  discretion, but may it shall not approve the plan unless it
 1593  finds that the association will comply sufficiently with the
 1594  requirements of the financial institutions codes after
 1595  conversion to entitle it to become an association operating
 1596  under the financial institutions codes and the rules of the
 1597  commission. The office may deny an any application from any
 1598  federal association that is subject to a any cease and desist
 1599  order or other supervisory restriction or order imposed by any
 1600  state or the federal supervisory authority, or insurer, or
 1601  guarantor or that has been convicted of, or pled guilty or nolo
 1602  contendere to, a violation of s. 655.50, relating to the Florida
 1603  control of money laundering and terrorist financing in Financial
 1604  Institutions Act; chapter 896, relating to offenses related to
 1605  financial transactions; or any similar state or federal law.
 1606         Section 31. Paragraph (a) of subsection (2) of section
 1607  665.034, Florida Statutes, is amended to read:
 1608         665.034 Acquisition of assets of or control over an
 1609  association.—
 1610         (2) The office shall issue the certificate of approval only
 1611  after it has made an investigation and determined that:
 1612         (a) The proposed new owner or owners of voting capital
 1613  stock are qualified by character, experience, and financial
 1614  responsibility to control the association in a legal and proper
 1615  manner and none of the proposed new owners have been convicted
 1616  of, or pled guilty or nolo contendere to, a violation of s.
 1617  655.50, relating to the Florida control of money laundering and
 1618  terrorist financing in Financial Institutions Act; chapter 896,
 1619  relating to offenses related to financial transactions; or any
 1620  similar state or federal law.
 1621         Section 32. Subsection (29) of section 667.003, Florida
 1622  Statutes, is amended to read:
 1623         667.003 Applicability of chapter 658.—Any state savings
 1624  bank is subject to all the provisions, and entitled to all the
 1625  privileges, of the financial institutions codes except where it
 1626  appears, from the context or otherwise, that such provisions
 1627  clearly apply only to banks or trust companies organized under
 1628  the laws of this state or the United States. Without limiting
 1629  the foregoing general provisions, it is the intent of the
 1630  Legislature that the following provisions apply to a savings
 1631  bank to the same extent as if the savings bank were a “bank”
 1632  operating under such provisions:
 1633         (29) Section 658.49, relating to loans by banks not
 1634  exceeding $50,000.
 1635         Section 33. Paragraph (c) of subsection (1) of section
 1636  667.006, Florida Statutes, is amended to read:
 1637         667.006 Conversion of state or federal mutual savings bank
 1638  or state or federal mutual association to capital stock savings
 1639  bank.—
 1640         (1) CONVERSION INTO CAPITAL STOCK SAVINGS BANK.—Any state
 1641  or federal mutual savings bank or state or federal mutual
 1642  association may apply to the office for permission to convert
 1643  itself into a capital stock savings bank operated under the
 1644  provisions of this chapter in accordance with the following
 1645  procedures:
 1646         (c) The office may approve or disapprove the plan in its
 1647  discretion, but may it shall not approve the plan unless it
 1648  finds that the savings bank will comply sufficiently with the
 1649  requirements of the financial institutions codes after
 1650  conversion to entitle it to become a savings bank operating
 1651  under the financial institutions codes and the rules of the
 1652  commission. The office may deny any application from a any
 1653  federal savings bank that is subject to a any cease and desist
 1654  order or other supervisory restriction or order imposed by any
 1655  state or the federal supervisory authority, or insurer, or
 1656  guarantor or that has been convicted of, or pled guilty or nolo
 1657  contendere to, a violation of s. 655.50, relating to the Florida
 1658  control of money laundering and terrorist financing in Financial
 1659  Institutions Act; chapter 896, relating to offenses related to
 1660  financial transactions; or any similar state or federal law.
 1661         Section 34. Paragraph (a) of subsection (2) of section
 1662  667.008, Florida Statutes, is amended to read:
 1663         667.008 Acquisition of assets of or control over a savings
 1664  bank.—
 1665         (2) The office shall issue the certificate of approval only
 1666  after it has made an investigation and determined that:
 1667         (a) The proposed new owner or owners of voting capital
 1668  stock are qualified by character, experience, and financial
 1669  responsibility to control the savings bank in a legal and proper
 1670  manner and none of the proposed new owners have been convicted
 1671  of, or pled guilty or nolo contendere to, a violation of s.
 1672  655.50, relating to the Florida control of money laundering and
 1673  terrorist financing in Financial Institutions Act; chapter 896,
 1674  relating to offenses related to financial transactions; or any
 1675  similar state or federal law.
 1676         Section 35. Subsections (12) through (36) of section
 1677  494.001, Florida Statutes, are renumbered as subsections (13)
 1678  through (37), respectively, a new subsection (12) is added, and
 1679  present subsection (15) of that section is amended, to read:
 1680         494.001 Definitions.—As used in ss. 494.001-494.0077, the
 1681  term:
 1682         (12) “Indirect owner” means, with respect to direct owners
 1683  and other indirect owners in a multilayered organization:
 1684         (a) For an owner that is a corporation, each of its
 1685  shareholders that beneficially owns, has the right to vote, or
 1686  has the power to sell or direct the sale of, 25 percent or more
 1687  of voting security of the corporation.
 1688         (b) For an owner that is a partnership, each general
 1689  partner and each limited or special partner that has the right
 1690  to receive upon dissolution, or has contributed, 25 percent or
 1691  more of the partnership’s capital.
 1692         (c) For an owner that is a trust, the trust and each
 1693  trustee.
 1694         (d) For an owner that is a limited liability company:
 1695         1. Each member that has the right to receive upon
 1696  dissolution, or that has contributed, 25 percent or more of the
 1697  limited liability company’s capital; and
 1698         2. If managed by elected managers or appointed managers,
 1699  each elected or appointed manager.
 1700         (e) For an indirect owner, each parent owner of 25 percent
 1701  or more of its subsidiary.
 1702         (16)(15) “Loan origination fee” means the total
 1703  compensation from any source received by a mortgage broker
 1704  acting as a loan originator. Any payment for processing mortgage
 1705  loan applications must be included in the fee and must be paid
 1706  to the mortgage broker.
 1707         Section 36. Subsection (4) is added to section 494.0012,
 1708  Florida Statutes, to read:
 1709         494.0012 Investigations; complaints; examinations.—
 1710         (4) To reduce the burden on persons subject to this
 1711  chapter, the office may conduct a joint or concurrent
 1712  examination with a state or federal regulatory agency and may
 1713  furnish a copy of all examinations to an appropriate regulator
 1714  if the regulator agrees to abide by the confidentiality
 1715  provisions in chapter 119 and this chapter. The office may also
 1716  accept an examination from an appropriate regulator.
 1717         Section 37. Paragraph (y) of subsection (1) of section
 1718  494.00255, Florida Statutes, is amended, and paragraph (m) of
 1719  that subsection is reenacted, to read:
 1720         494.00255 Administrative penalties and fines; license
 1721  violations.—
 1722         (1) Each of the following acts constitutes a ground for
 1723  which the disciplinary actions specified in subsection (2) may
 1724  be taken against a person licensed or required to be licensed
 1725  under part II or part III of this chapter:
 1726         (m) In any mortgage transaction, violating any provision of
 1727  the federal Real Estate Settlement Procedures Act, as amended,
 1728  12 U.S.C. ss. 2601 et seq.; the federal Truth in Lending Act, as
 1729  amended, 15 U.S.C. ss. 1601 et seq.; or any regulations adopted
 1730  under such acts.
 1731         (y) Pursuant to an investigation by the Mortgage Testing
 1732  and Education Board acting on behalf of the registry, being
 1733  found in violation of Nationwide Mortgage Licensing System and
 1734  Registry Rules of Conduct.
 1735         Section 38. Section 494.0028, Florida Statutes, is
 1736  repealed.
 1737         Section 39. Subsection (3) is added to section 494.00313,
 1738  Florida Statutes, to read:
 1739         494.00313 Loan originator license renewal.—
 1740         (3) If a licensed loan originator fails to meet the
 1741  requirements of this section for annual license renewal on or
 1742  before December 31 but meets such requirements before March 1,
 1743  the loan originator’s license status shall be changed to “failed
 1744  to renew” pending review and renewal by the office. A
 1745  nonrefundable reinstatement fee of $150 shall be charged in
 1746  addition to registry fees. The license status shall not be
 1747  changed until the requirements of this section are met and all
 1748  fees are paid. If the licensee fails to meet the requirements of
 1749  this section and pay all required fees before March 1, such
 1750  license is expired and such loan originator must apply for a new
 1751  loan originator license under s. 494.00312.
 1752         Section 40. Subsection (3) is added to section 494.00322,
 1753  Florida Statutes, to read:
 1754         494.00322 Mortgage broker license renewal.—
 1755         (3) If a licensed mortgage broker fails to meet the
 1756  requirements of this section for annual license renewal on or
 1757  before December 31 but meets such requirements before March 1,
 1758  the mortgage broker’s license status shall be changed to “failed
 1759  to renew” pending review and renewal by the office. A
 1760  nonrefundable reinstatement fee of $250 shall be charged in
 1761  addition to registry fees. The license status shall not be
 1762  changed until the requirements of this section are met and all
 1763  fees are paid. If the licensee fails to meet the requirements of
 1764  this section and pay all required fees before March 1, such
 1765  license is expired and such mortgage broker must apply for a new
 1766  mortgage broker license under s. 494.00321.
 1767         Section 41. Subsection (3) of section 494.0036, Florida
 1768  Statutes, is amended, and subsections (4) and (5) are added to
 1769  that section, to read:
 1770         494.0036 Mortgage broker branch office license.—
 1771         (3) A branch office license must be renewed annually at the
 1772  time of renewing the mortgage broker license under s. 494.00322.
 1773  A nonrefundable branch renewal fee of $225 per branch office
 1774  must be submitted at the time of renewal. To renew a branch
 1775  office license, a mortgage broker must:
 1776         (a) Submit a completed license renewal form as prescribed
 1777  by commission rule.
 1778         (b) Submit a nonrefundable renewal fee.
 1779         (c) Submit any additional information or documentation
 1780  requested by the office and required by rule concerning the
 1781  licensee. Additional information may include documents that may
 1782  provide the office with the appropriate information to determine
 1783  eligibility for license renewal.
 1784         (4) The office may not renew a branch office license unless
 1785  the branch office continues to meet the minimum requirements for
 1786  initial licensure under this section and adopted rule.
 1787         (5) If a licensed branch office fails to meet the
 1788  requirements of this section for annual license renewal on or
 1789  before December 31 but meets such requirements before March 1,
 1790  the branch office’s license status shall be changed to “failed
 1791  to renew” pending review and renewal by the office. A
 1792  nonrefundable reinstatement fee of $225 shall be charged in
 1793  addition to registry fees. The license status shall not be
 1794  changed until the requirements of this section are met and all
 1795  fees are paid. If the licensee fails to meet the requirements of
 1796  this section and pay all required fees before March 1, such
 1797  license is expired and such branch office must apply for a new
 1798  mortgage broker branch office license under this section.
 1799         Section 42. Section 494.0038, Florida Statutes, is amended
 1800  to read:
 1801         494.0038 Loan origination and Mortgage broker fees and
 1802  disclosures.—
 1803         (1) A loan origination fee may not be paid except pursuant
 1804  to a written mortgage broker agreement between the mortgage
 1805  broker and the borrower which is signed and dated by the
 1806  principal loan originator or branch manager, and the borrower.
 1807  The unique registry identifier of each loan originator
 1808  responsible for providing loan originator services must be
 1809  printed on the mortgage broker agreement.
 1810         (a) The written mortgage broker agreement must describe the
 1811  services to be provided by the mortgage broker and specify the
 1812  amount and terms of the loan origination fee that the mortgage
 1813  broker is to receive.
 1814         1. Except for application and third-party fees, all fees
 1815  received by a mortgage broker from a borrower must be identified
 1816  as a loan origination fee.
 1817         2. All fees on the mortgage broker agreement must be
 1818  disclosed in dollar amounts.
 1819         3. All loan origination fees must be paid to a mortgage
 1820  broker.
 1821         (b) The agreement must be executed within 3 business days
 1822  after a mortgage loan application is accepted if the borrower is
 1823  present when the mortgage loan application is accepted. If the
 1824  borrower is not present, the licensee shall forward the
 1825  agreement to the borrower within 3 business days after the
 1826  licensee’s acceptance of the application and the licensee bears
 1827  the burden of proving that the borrower received and approved
 1828  the agreement.
 1829         (2) If the mortgage broker is to receive any payment of any
 1830  kind from the mortgage lender, the maximum total dollar amount
 1831  of the payment must be disclosed to the borrower in the written
 1832  mortgage broker agreement as described in paragraph (1)(a). The
 1833  commission may prescribe by rule an acceptable form for
 1834  disclosure of brokerage fees received from the lender. The
 1835  agreement must state the nature of the relationship with the
 1836  lender, describe how compensation is paid by the lender, and
 1837  describe how the mortgage interest rate affects the compensation
 1838  paid to the mortgage broker.
 1839         (a) The exact amount of any payment of any kind by the
 1840  lender to the mortgage broker must be disclosed in writing to
 1841  the borrower within 3 business days after the mortgage broker is
 1842  made aware of the exact amount of the payment from the lender
 1843  but not less than 3 business days before the execution of the
 1844  closing or settlement statement. The licensee bears the burden
 1845  of proving such notification was provided to the borrower.
 1846  Notification is waived if the exact amount of the payment is
 1847  accurately disclosed in the written mortgage broker agreement.
 1848         (b) The commission may prescribe by rule the form of
 1849  disclosure of brokerage fees.
 1850         (3) At the time a written mortgage broker agreement is
 1851  signed by the borrower or forwarded to the borrower for
 1852  signature, or at the time the mortgage broker business accepts
 1853  an application fee, credit report fee, property appraisal fee,
 1854  or any other third-party fee, but at least 3 business days
 1855  before execution of the closing or settlement statement, the
 1856  mortgage broker shall disclose in writing to any applicant for a
 1857  mortgage loan the following information:
 1858         (a) That the mortgage broker may not make mortgage loans or
 1859  commitments. The mortgage broker may make a commitment and may
 1860  furnish a lock-in of the rate and program on behalf of the
 1861  lender if the mortgage broker has obtained a written commitment
 1862  or lock-in for the loan from the lender on behalf of the
 1863  borrower for the loan. The commitment must be in the same form
 1864  and substance as issued by the lender.
 1865         (b) That the mortgage broker cannot guarantee acceptance
 1866  into any particular loan program or promise any specific loan
 1867  terms or conditions.
 1868         (c) A good faith estimate that discloses settlement charges
 1869  and loan terms.
 1870         1. Any amount collected in excess of the actual cost shall
 1871  be returned within 60 days after rejection, withdrawal, or
 1872  closing.
 1873         2. At the time a good faith estimate is provided to the
 1874  borrower, the loan originator must identify in writing an
 1875  itemized list that provides the recipient of all payments
 1876  charged the borrower, which, except for all fees to be received
 1877  by the mortgage broker, may be disclosed in generic terms, such
 1878  as, but not limited to, paid to lender, appraiser, officials,
 1879  title company, or any other third-party service provider. This
 1880  requirement does not supplant or is not a substitute for the
 1881  written mortgage broker agreement described in subsection (1).
 1882  The disclosure required under this subparagraph must be signed
 1883  and dated by the borrower.
 1884         (4) The disclosures required by this subsection must be
 1885  furnished in writing at the time an adjustable rate mortgage
 1886  loan is offered to the borrower and whenever the terms of the
 1887  adjustable rate mortgage loan offered materially change prior to
 1888  closing. The mortgage broker shall furnish the disclosures
 1889  relating to adjustable rate mortgages in a format prescribed by
 1890  ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
 1891  of the Federal Reserve System, as amended; its commentary, as
 1892  amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
 1893  1601 et seq., as amended; together with the Consumer Handbook on
 1894  Adjustable Rate Mortgages, as amended; published by the Federal
 1895  Reserve Board and the Federal Home Loan Bank Board. The licensee
 1896  bears the burden of proving such disclosures were provided to
 1897  the borrower.
 1898         (5) If the mortgage broker agreement includes a
 1899  nonrefundable application fee, the following requirements are
 1900  applicable:
 1901         (a) The amount of the application fee, which must be
 1902  clearly denominated as such, must be clearly disclosed.
 1903         (b) The specific services that will be performed in
 1904  consideration for the application fee must be disclosed.
 1905         (c) The application fee must be reasonably related to the
 1906  services to be performed and may not be based upon a percentage
 1907  of the principal amount of the loan or the amount financed.
 1908         (6) A mortgage broker may not accept any fee in connection
 1909  with a mortgage loan other than an application fee, credit
 1910  report fee, property appraisal fee, or other third-party fee
 1911  before obtaining a written commitment from a qualified lender.
 1912         (1)(7) Any third-party fee entrusted to a mortgage broker
 1913  must immediately, upon receipt, be placed into a segregated
 1914  account with a financial institution located in the state the
 1915  accounts of which are insured by the Federal Government. Such
 1916  funds shall be held in trust for the payor and shall be kept in
 1917  the account until disbursement. Such funds may be placed in one
 1918  account if adequate accounting measures are taken to identify
 1919  the source of the funds.
 1920         (2)(8) A mortgage broker may not pay a commission to any
 1921  person not licensed pursuant to this chapter.
 1922         (3)(9) This section does not prohibit a mortgage broker
 1923  from offering products and services, in addition to those
 1924  offered in conjunction with the loan origination process, for a
 1925  fee or commission.
 1926         Section 43. Subsections (2) and (3) of section 494.004,
 1927  Florida Statutes, are amended to read:
 1928         494.004 Requirements of licensees.—
 1929         (2) In every mortgage loan transaction, each licensee under
 1930  this part must notify a borrower of any material changes in the
 1931  terms of a mortgage loan previously offered to the borrower
 1932  within 3 business days after being made aware of such changes by
 1933  the mortgage lender but at least 3 business days before the
 1934  signing of the settlement or closing statement. The licensee
 1935  bears the burden of proving such notification was provided and
 1936  accepted by the borrower. A borrower may waive the right to
 1937  receive notice of a material change if the borrower determines
 1938  that the extension of credit is needed to meet a bona fide
 1939  personal financial emergency and the right to receive notice
 1940  would delay the closing of the mortgage loan. The imminent sale
 1941  of the borrower’s home at foreclosure during the 3-day period
 1942  before the signing of the settlement or closing statement is an
 1943  example of a bona fide personal financial emergency. In order to
 1944  waive the borrower’s right to receive notice, the borrower must
 1945  provide the licensee with a dated written statement that
 1946  describes the personal financial emergency, waives the right to
 1947  receive the notice, bears the borrower’s signature, and is not
 1948  on a printed form prepared by the licensee for the purpose of
 1949  such a waiver.
 1950         (2)(3) Each mortgage broker shall submit to the registry
 1951  reports of condition, which must be in such form and shall
 1952  contain such information as the registry may require. The
 1953  commission may adopt rules prescribing the time by which a
 1954  mortgage broker must file a report of condition. For purposes of
 1955  this section, the report of condition is synonymous with the
 1956  registry’s Mortgage Call Report.
 1957         Section 44. Subsection (3) of section 494.0042, Florida
 1958  Statutes, is amended to read:
 1959         494.0042 Loan origination fees.—
 1960         (3) At the time of accepting a mortgage loan application, a
 1961  mortgage broker may receive from the borrower a nonrefundable
 1962  application fee. If the mortgage loan is funded, the
 1963  nonrefundable application fee shall be credited against the
 1964  amount owed as a result of the loan being funded. A person may
 1965  not receive any form of compensation for acting as a loan
 1966  originator other than a nonrefundable application fee, a fee
 1967  based on the mortgage amount being funded, or a fee which
 1968  complies with s. 494.00421.
 1969         Section 45. Section 494.00421, Florida Statutes, is
 1970  repealed.
 1971         Section 46. Paragraph (b) of subsection (2) of section
 1972  494.00611, Florida Statutes, is amended to read:
 1973         494.00611 Mortgage lender license.—
 1974         (2) In order to apply for a mortgage lender license, an
 1975  applicant must:
 1976         (b) Designate a qualified principal loan originator who
 1977  meets the requirements of s. 494.00665 494.0035 on the
 1978  application form.
 1979         Section 47. Subsection (3) is added to section 494.00612,
 1980  Florida Statutes, to read:
 1981         494.00612 Mortgage lender license renewal.—
 1982         (3) If a licensed mortgage lender fails to meet the
 1983  requirements of this section for annual license renewal on or
 1984  before December 31 but meets such requirements before March 1,
 1985  the mortgage lender’s license status shall be changed to “failed
 1986  to renew” pending review and renewal by the office. A
 1987  nonrefundable reinstatement fee of $475 shall be charged in
 1988  addition to registry fees. The license status shall not be
 1989  changed until the requirements of this section are met and all
 1990  fees are paid. If the licensee fails to meet the requirements of
 1991  this section and pay all required fees before March 1, such
 1992  license is expired and such mortgage lender must apply for a new
 1993  mortgage lender license under s. 494.00611.
 1994         Section 48. Subsection (3) of section 494.0066, Florida
 1995  Statutes, is amended, and subsections (4) and (5) are added to
 1996  that section, to read:
 1997         494.0066 Branch offices.—
 1998         (3) A branch office license must be renewed at the time of
 1999  renewing the mortgage lender license. A nonrefundable fee of
 2000  $225 per branch office must be submitted at the time of renewal.
 2001  To renew a branch office license, a mortgage lender must:
 2002         (a) Submit a completed license renewal form as prescribed
 2003  by commission rule.
 2004         (b) Submit a nonrefundable renewal fee.
 2005         (c) Submit any additional information or documentation
 2006  requested by the office and required by rule concerning the
 2007  licensee. Additional information may include documents that may
 2008  provide the office with the appropriate information to determine
 2009  eligibility for license renewal.
 2010         (4) The office may not renew a branch office license unless
 2011  the branch office continues to meet the minimum requirements for
 2012  initial licensure under this section and adopted rule.
 2013         (5) If a licensed branch office fails to meet the
 2014  requirements of this section for annual license renewal on or
 2015  before December 31 but meets such requirements before March 1,
 2016  the branch office’s license status shall be changed to “failed
 2017  to renew” pending review and renewal by the office. A
 2018  nonrefundable reinstatement fee of $225 shall be charged in
 2019  addition to registry fees. The license status shall not be
 2020  changed until the requirements of this section are met and all
 2021  fees are paid. If the licensee fails to meet the requirements of
 2022  this section and pay all required fees before March 1, such
 2023  license is expired and such branch office must apply for a new
 2024  mortgage lender branch office license under this section.
 2025         Section 49. Subsections (8) through (13) of section
 2026  494.0067, Florida Statutes, are amended to read:
 2027         494.0067 Requirements of mortgage lenders.—
 2028         (8) Each mortgage lender shall provide an applicant for a
 2029  mortgage loan a good faith estimate of the costs the applicant
 2030  can reasonably expect to pay in obtaining a mortgage loan. The
 2031  good faith estimate of costs must be mailed or delivered to the
 2032  applicant within 3 business days after the licensee receives a
 2033  written loan application from the applicant. The estimate of
 2034  costs may be provided to the applicant by a person other than
 2035  the licensee making the loan. The good faith estimate must
 2036  identify the recipient of all payments charged to the borrower
 2037  and, except for all fees to be received by the mortgage broker
 2038  and the mortgage lender, may be disclosed in generic terms, such
 2039  as, but not limited to, paid to appraiser, officials, title
 2040  company, or any other third-party service provider. The licensee
 2041  bears the burden of proving such disclosures were provided to
 2042  the borrower. The commission may adopt rules that set forth the
 2043  disclosure requirements of this section.
 2044         (9) The disclosures in this subsection must be furnished in
 2045  writing at the time an adjustable rate mortgage loan is offered
 2046  to the borrower and whenever the terms of the adjustable rate
 2047  mortgage loan offered have a material change prior to closing.
 2048  The lender shall furnish the disclosures relating to adjustable
 2049  rate mortgages in a format prescribed by ss. 226.18 and 226.19
 2050  of Regulation Z of the Board of Governors of the Federal Reserve
 2051  System, as amended; its commentary, as amended; and the federal
 2052  Truth in Lending Act, 15 U.S.C. ss. 1601 et seq., as amended;
 2053  together with the Consumer Handbook on Adjustable Rate
 2054  Mortgages, as amended; published by the Federal Reserve Board
 2055  and the Federal Home Loan Bank Board. The licensee bears the
 2056  burden of proving such disclosures were provided to the
 2057  borrower.
 2058         (10) In every mortgage loan transaction, each mortgage
 2059  lender shall notify a borrower of any material changes in the
 2060  terms of a mortgage loan previously offered to the borrower
 2061  within 3 business days after being made aware of such changes by
 2062  the lender but at least 3 business days before signing the
 2063  settlement or closing statement. The licensee bears the burden
 2064  of proving such notification was provided and accepted by the
 2065  borrower. A borrower may waive the right to receive notice of a
 2066  material change if the borrower determines that the extension of
 2067  credit is needed to meet a bona fide personal financial
 2068  emergency and the right to receive notice would delay the
 2069  closing of the mortgage loan. The imminent sale of the
 2070  borrower’s home at foreclosure during the 3-day period before
 2071  the signing of the settlement or closing statement constitutes
 2072  an example of a bona fide personal financial emergency. In order
 2073  to waive the borrower’s right to receive notice, the borrower
 2074  must provide the licensee with a dated written statement that
 2075  describes the personal financial emergency, waives the right to
 2076  receive the notice, bears the borrower’s signature, and is not
 2077  on a printed form prepared by the licensee for the purpose of
 2078  such a waiver.
 2079         (8)(11) A mortgage lender may close loans in its own name
 2080  but may not service the loan for more than 6 4 months unless the
 2081  lender has a servicing endorsement. Only a mortgage lender who
 2082  continuously maintains a net worth of at least $250,000 may
 2083  obtain a servicing endorsement.
 2084         (9)(12) A mortgage lender must report to the office the
 2085  failure to meet the applicable net worth requirements of s.
 2086  494.00611 within 2 days after the mortgage lender’s knowledge of
 2087  such failure or after the mortgage lender should have known of
 2088  such failure.
 2089         (10)(13) Each mortgage lender shall submit to the registry
 2090  reports of condition which are in a form and which contain such
 2091  information as the registry may require. The commission may
 2092  adopt rules prescribing the time by which a mortgage lender must
 2093  file a report of condition. For purposes of this section, the
 2094  report of condition is synonymous with the registry’s Mortgage
 2095  Call Report.
 2096         Section 50. Section 494.0068, Florida Statutes, is
 2097  repealed.
 2098         Section 51. Paragraphs (c), (d), and (e) of subsection (1)
 2099  of section 494.007, Florida Statutes, are amended to read:
 2100         494.007 Commitment process.—
 2101         (1) If a commitment is issued, the mortgage lender shall
 2102  disclose in writing:
 2103         (c) If the interest rate or other terms are subject to
 2104  change before expiration of the commitment:
 2105         1. The basis, index, or method, if any, which will be used
 2106  to determine the rate at closing. Such basis, index, or method
 2107  shall be established and disclosed with direct reference to the
 2108  movement of an interest rate index or of a national or regional
 2109  index that is available to and verifiable by the borrower and
 2110  beyond the control of the lender; or
 2111         2. The following statement, in at least 10-point bold type:
 2112  “The interest rate will be the rate established by the lender in
 2113  its discretion as its prevailing rate . . . days before
 2114  closing.”; and
 2115         (d) The amount of the commitment fee, if any, and whether
 2116  and under what circumstances the commitment fee is refundable;
 2117  and
 2118         (d)(e) The time, if any, within which the commitment must
 2119  be accepted by the borrower.
 2120         Section 52. Section 494.0073, Florida Statutes, is amended
 2121  to read:
 2122         494.0073 Mortgage lender when acting as a mortgage broker.
 2123  The provisions of this part do not prohibit a mortgage lender
 2124  from acting as a mortgage broker. However, in mortgage
 2125  transactions in which a mortgage lender acts as a mortgage
 2126  broker, the provisions of ss. 494.0038, 494.004(2), 494.0042,
 2127  and 494.0043(1), (2), and (3) apply.
 2128         Section 53. Part IV of chapter 494, Florida Statutes,
 2129  consisting of ss. 494.0078, 494.0079, 494.00791, 494.00792,
 2130  494.00793, 494.00794, 494.00795, 494.00796, and 494.00797, is
 2131  repealed.
 2132         Section 54. Section 494.008, Florida Statutes, is repealed.
 2133         Section 55. This act shall take effect July 1, 2014.