Senate Bill sb1260c1
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Florida Senate - 2001 CS for SB 1260
By the Committee on Banking and Insurance; and Senator King
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1 A bill to be entitled
2 An act relating to financial institutions;
3 amending ss. 655.043, 655.411, and 658.23,
4 F.S.; deleting provisions relating to
5 reservation of proposed names of financial
6 entities with the Department of State;
7 providing legislative intent; specifying
8 certain deposits as pay-on-death designated
9 accounts under certain circumstances; amending
10 s. 655.50, F.S.; clarifying certain exemption
11 provisions relating to reports by financial
12 institutions for money laundering purposes;
13 amending s. 658.12, F.S.; revising a definition
14 of the term banker's bank; amending s. 658.165,
15 F.S.; providing criteria for formation of a
16 banker's bank; providing application; amending
17 s. 658.19, F.S.; providing for return and
18 resubmission of certain applications under
19 certain circumstances; amending s. 658.21,
20 F.S.; revising application approval criteria
21 relating to limitations on certain capital
22 accounts and experience of certain officers;
23 amending s. 658.235, F.S.; clarifying a
24 requirement for subscriptions for stock;
25 amending s. 658.25, F.S.; revising bank or
26 trust company opening for business date
27 criterion; amending s. 658.26, F.S.; clarifying
28 provisions relating to branch places of
29 transacting business; revising certain
30 operational characteristics; renumbering s.
31 663.066, F.S., as s. 658.285, F.S.; amending s.
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1 658.34, F.S.; revising a condition for the
2 issuance of authorized but unissued bank or
3 trust company capital stock; amending s.
4 658.73, F.S.; revising certain fees and
5 assessments provisions; imposing an additional
6 fee for certain certificates; amending s.
7 663.09, F.S.; deleting an administrative fine
8 provision for certain late audits; amending s.
9 658.48, F.S.; revising limitations on the
10 percentage of the capital accounts of the
11 lending bank which apply to loans made to any
12 one borrower on the security of shares of
13 capital stock; revising the circumstances in
14 which a bank may not make loans; repealing s.
15 655.81, F.S., relating to deposits in trust;
16 providing effective dates.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Section 655.043, Florida Statutes, is
21 amended to read:
22 655.043 Articles of incorporation; amendments;
23 approval.--
24 (1) A bank, trust company, or association may not
25 amend its articles of incorporation without the written
26 approval of the department.
27 (2) The department may not approve any amendment to
28 the articles of incorporation which requests a change in name
29 of the bank, trust company, or association without evidence
30 that the proposed new name has been reserved with the
31 Department of State.
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1 Section 2. (1) Because deposits in trust are also
2 accounts with a pay-on-death designation as described in
3 section 655.82, Florida Statutes, it is the intent of the
4 Legislature that the provisions of section 655.82, Florida
5 Statutes, shall apply to and govern deposits in trust.
6 References to section 655.81, Florida Statutes, in any
7 depository agreement shall be interpreted after the effective
8 date of this act as references to section 655.82, Florida
9 Statutes.
10 (2) This section shall take effect July 1, 2001, and
11 shall apply to deposits made to a depository account created
12 after December 31, 1994.
13 Section 3. Paragraph (c) of subsection (1) of section
14 655.411, Florida Statutes, is amended to read:
15 655.411 Conversion of charter.--
16 (1) Any financial entity may apply to the department
17 for permission to convert its charter without a change of
18 business form or convert its charter in order to do business
19 as another type of financial entity in accordance with the
20 following procedures:
21 (c) The department shall approve the plan if it finds
22 that:
23 1. The resulting financial entity would have an
24 adequate capital structure with regard to its activities and
25 its deposit liabilities.
26 2. The proposed conversion would not cause a
27 substantially adverse effect on the financial condition of any
28 financial entity already established in the primary service
29 area.
30 3. The officers and directors have sufficient
31 experience, ability, and standing to indicate reasonable
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1 promise for successful operation of the resulting financial
2 entity.
3 4. The proposed name of the resulting financial entity
4 has been reserved with the Department of State.
5 4.5. The schedule for termination of any nonconforming
6 activities and disposition of any nonconforming assets and
7 liabilities is reasonably prompt, and the plan for such
8 termination and disposition does not include any unsafe or
9 unsound practice.
10 5.6. None of the officers or directors has been
11 convicted of, or pled guilty or nolo contendere to, a
12 violation of s. 655.50, relating to the Florida Control of
13 Money Laundering in Financial Institutions Act; chapter 896,
14 relating to offenses related to financial transactions; or any
15 similar state or federal law.
16
17 If the department disapproves the plan, it shall state its
18 objections and give an opportunity to the parties to amend the
19 plan to overcome such objections. The department may deny an
20 application by any financial entity which is subject to a
21 cease and desist order or other supervisory restriction or
22 order imposed by any state or federal supervisory authority,
23 insurer, or guarantor.
24 Section 4. Subsection (6) and paragraph (d) of
25 subsection (8) of section 655.50, Florida Statutes, are
26 amended to read:
27 655.50 Florida Control of Money Laundering in
28 Financial Institutions Act; reports of transactions involving
29 currency or monetary instruments; when required; purpose;
30 definitions; penalties.--
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1 (6) Unless otherwise provided by rule, a financial
2 institution may exempt from the reporting requirements of this
3 section deposits, withdrawals, exchanges, or payments exempted
4 from the reporting requirements of 31 U.S.C. s. 5313. Each
5 financial institution shall maintain a record of each
6 designation of a person granted exemption under the authority
7 of 31 U.S.C. s. 5313 granted, including any the name, address,
8 and type of business, taxpayer identification number of the
9 exempt person, as well as the name and address of the
10 financial institution, account number, and the signature of
11 the financial institution official designating the exempt
12 person customer granted the exemption; a written statement
13 describing in detail the customary conduct of the lawful
14 business of that customer and the reasons why such customer
15 qualified for such an exemption; the type of transactions
16 exempted; and the dollar limit of each exempt transaction.
17 Such record of exemptions shall be made available to the
18 department for inspection and copying and shall be submitted
19 to the department within 15 days after request.
20 (8)
21 (d) The financial institution shall retain a copy of
22 all records of exemption for each designation of exempt person
23 made customer granted pursuant to subsection (6) for a minimum
24 of 5 calendar years after termination of exempt status of such
25 customer. However, if it is known by the financial institution
26 that the customer or the transactions of the customer are the
27 subject of an existing criminal proceeding, the records shall
28 be retained for a minimum of 10 calendar years after
29 termination of exempt status of such customer.
30 Section 5. Subsection (3) of section 658.12, Florida
31 Statutes, is amended to read:
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1 658.12 Definitions.--Subject to other definitions
2 contained in the financial institutions codes and unless the
3 context otherwise requires:
4 (3) "Banker's bank" means a bank insured by the
5 Federal Deposit Insurance Corporation, or a holding company
6 which owns or controls such an insured bank, when the stock of
7 such bank or holding company is owned exclusively by other
8 banks and such bank or holding company and all subsidiaries
9 thereof are engaged exclusively in providing services for
10 other financial depository institutions and their officers,
11 directors, and employees.
12 Section 6. Present subsection (4) of section 658.165,
13 Florida Statutes, is renumbered as subsection (6), and new
14 subsections (4) and (5) are added to that section, to read:
15 658.165 Banker's banks; formation; applicability of
16 financial institutions codes; exceptions.--
17 (4) A banker's bank may provide services at the
18 request of financial institutions in organizations that have:
19 (a) Received conditional regulatory approval from the
20 department in the case of a state bank or preliminary approval
21 from the Office of the Comptroller of the Currency in the case
22 of a national bank.
23 (b) Filed articles of incorporation pursuant to s.
24 658.23 in the case of a state bank, or filed acceptable
25 articles of incorporation and an organization certificate in
26 the case of a national bank.
27 (c) Received capital funds in an amount not less than
28 the minimum capitalization required in any notice of or order
29 granting conditional regulatory approval.
30 (5) A banker's bank may provide services to the
31 organizers of a proposed financial institution that has not
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1 received conditional regulatory approval provided that such
2 services are limited to the financing of the expenses of
3 organizing such financial institution and expenses relating to
4 the acquisition or construction of the institution's proposed
5 operating facilities and associated fixtures and equipment.
6 Section 7. Subsection (3) is added to section 658.19,
7 Florida Statutes, to read:
8 658.19 Application for authority to organize a bank or
9 trust company.--
10 (3) Notwithstanding chapter 120, an application may be
11 returned to the applicant, on a one-time basis, for correction
12 of substantial deficiencies and may be resubmitted without
13 payment of an additional fee if such resubmission takes place
14 within 60 days after the date the department returns the
15 application.
16 Section 8. Section 658.21, Florida Statutes, is
17 amended to read:
18 658.21 Approval of application; findings
19 required.--The department shall approve the application if it
20 finds that:
21 (1) Local conditions indicate reasonable promise of
22 successful operation for the proposed state bank or trust
23 company. In determining whether an applicant meets the
24 requirements of this subsection, the department shall consider
25 all materially relevant factors, including:
26 (a) The purpose, objectives, and business philosophy
27 of the proposed state bank or trust company.
28 (b) The projected financial performance of the
29 proposed bank or trust company.
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1 (c) The feasibility of the proposed bank or trust
2 company, as stated in the business plan, particularly with
3 respect to asset and liability growth and management.
4 (2) The proposed capitalization is in such amount as
5 the department deems adequate, but in no case may the total
6 capital accounts at opening for a bank be less than $6 $4
7 million if the proposed bank is to be located in any county
8 which is included in a metropolitan statistical area, or $4 $2
9 million if the proposed bank is to be located in any other
10 county. The total capital accounts at opening for a trust
11 company may not be less than $2 million. Of total capital
12 accounts at opening, as noted in the application or amendments
13 or changes to the application, at least 25 percent of the
14 capital shall be directly owned or controlled by the
15 organizing directors of the bank. Directors of banks owned by
16 single-bank holding companies shall have direct ownership or
17 control of at least 25 percent of the bank holding company's
18 capital accounts. The department may disallow illegally
19 obtained currency, monetary instruments, funds, or other
20 financial resources from the capitalization requirements of
21 this section.
22 (3) The proposed capital structure is in such form as
23 the department may require, but, at a minimum, every state
24 bank or trust company hereafter organized shall establish:
25 (a) paid-in capital equal in amount to not less than
26 50 percent of its total capital accounts and.
27 (b) a paid-in surplus equal in amount to not less than
28 20 percent of its paid-in capital.
29 (c) A fund to be designated as undivided profits equal
30 in amount to not less than 5 percent of its paid-in capital.
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1 (4) The proposed officers have sufficient financial
2 institution experience, ability, standing, and reputation and
3 the proposed directors have sufficient business experience,
4 ability, standing, and reputation to indicate reasonable
5 promise of successful operation, and none of the proposed
6 officers or directors has been convicted of, or pled guilty or
7 nolo contendere to, any violation of s. 655.50, relating to
8 the Florida Control of Money Laundering in Financial
9 Institutions Act; chapter 896, relating to offenses related to
10 financial institutions; or any similar state or federal law.
11 At least two one of the proposed directors who are is not also
12 a proposed officers officer shall have had at least 1 year
13 direct experience as an executive officer, regulator, or
14 director of a financial institution within 3 years of the date
15 of the application. However, This requirement may be waived by
16 the department if the applicant demonstrates that at least one
17 of the proposed directors director has very substantial
18 experience as an executive officer, director, or regulator of
19 a financial institution more than 3 years before the date of
20 the application, the department may modify the requirement and
21 allow only one director to have direct financial institution
22 experience within the last 3 years. The proposed president or
23 chief executive officer shall have had at least 1 year of
24 direct experience as an executive officer, director, or
25 regulator of a financial institution within the last 3 years.
26 (5) The corporate name of the proposed state bank or
27 trust company is approved by reserved with the department of
28 State.
29 (6) Provision has been made for suitable quarters at
30 the location in the application.
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1 Section 9. Subsection (6) of section 658.23, Florida
2 Statutes, is amended to read:
3 658.23 Submission of articles of incorporation;
4 contents; form; approval; filing; commencement of corporate
5 existence; bylaws.--
6 (6) A bank or trust company may not amend its articles
7 of incorporation without the prior written approval of the
8 department. The department may not approve any amendment to
9 the articles of incorporation which requests a change in name
10 of the bank or trust company without evidence that the
11 proposed name has been reserved with the Department of State.
12 Section 10. Subsection (1) of section 658.235, Florida
13 Statutes, is amended to read:
14 658.235 Subscriptions for stock; approval of major
15 shareholders.--
16 (1) Within 6 months after commencement of corporate
17 existence, and at least 30 days prior to opening the issuance
18 of stock, the directors shall have completed the stock
19 offering and shall file with the department a final list of
20 subscribers to all of the capital stock of the proposed bank
21 or trust company showing the name and residence of each
22 subscriber and the amount of stock of every class subscribed
23 for by each.
24 Section 11. Subsection (1) of section 658.25, Florida
25 Statutes, is amended to read:
26 658.25 Opening for business.--
27 (1) A bank or trust company corporation shall open and
28 conduct a general commercial bank or trust business no later
29 than 12 6 months after the commencement of its corporate
30 existence. For good cause shown, the department may extend
31 the opening date for an additional period, not to exceed 6
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1 months, on its own motion or at the request of the bank or
2 trust company.
3 Section 12. Section 658.26, Florida Statutes, is
4 amended to read:
5 658.26 Places of transacting business; branches;
6 facilities.--
7 (1) Any bank or trust company heretofore or hereafter
8 incorporated pursuant to this chapter shall have one main
9 office, which shall be located within the state.
10 (2)(a) In addition, with the approval of the
11 department and upon such conditions as the department
12 prescribes, any bank or trust company may establish branches
13 within or outside the state. With the approval of the
14 department upon a determination that the resulting bank or
15 trust company will be of sound financial condition, any bank
16 or trust company incorporated pursuant to this chapter may
17 establish branches by merger with any other bank or trust
18 company.
19 (b) An application for a branch by a bank that does
20 not meet the requirements for the branch notification process
21 shall be in writing in such form as the department prescribes
22 and be supported by such information, data, and records as the
23 department may require to make findings necessary for
24 approval. Applications filed pursuant to this subsection shall
25 not be published in the Florida Administrative Weekly but
26 shall otherwise be subject to the provisions of chapter 120.
27 Upon the filing of an application and a nonrefundable filing
28 fee for the establishment of any branch permitted by paragraph
29 (a), the department shall make an investigation with respect
30 to compliance with the requirements of paragraph (a) and shall
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1 investigate and consider all factors relevant to such
2 requirements, including the following:
3 1. The sufficiency of capital accounts in relation to
4 the deposit liabilities of the bank, or in relation to the
5 number and valuation of fiduciary accounts of the trust
6 company, including the proposed branch, and the additional
7 fixed assets, if any, which are proposed for the branch and
8 its operations, without undue risk to the bank or its
9 depositors, or undue risk to the trust company or its
10 fiduciary accounts;
11 2. The sufficiency of earnings and earning prospects
12 of the bank or trust company to support the anticipated
13 expenses and any anticipated operating losses of the branch
14 during its formative or initial years;
15 3. The sufficiency and quality of management available
16 to operate the branch;
17 4. The name of the proposed branch to determine if it
18 reasonably identifies the branch as a branch of the main
19 office and is not likely to unduly confuse the public; and
20 5. Substantial compliance by the applicants with
21 applicable law governing their operations.
22 (3)(a) An office in this state may be relocated with
23 prior written approval of the department. An application for
24 relocation shall be in writing in such form as the department
25 prescribes and shall be supported by such information, data,
26 and records as the department may require to make findings
27 necessary for approval.
28 (b) Applications filed pursuant to this subsection
29 shall not be published in the Florida Administrative Weekly
30 but shall otherwise be subject to the provisions of chapter
31 120. However, an application for the relocation of a main
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1 office that has not been in operation for at least 24 months
2 shall be published in the Florida Administrative Weekly. Upon
3 the filing of a relocation application and a nonrefundable
4 filing fee, the department shall investigate to determine
5 substantial compliance by the financial institution with
6 applicable law governing its operations. Additional
7 investments in land, buildings, leases, and leasehold
8 improvements resulting from such relocation shall comply with
9 the limitations imposed by s. 658.67(7)(a). A main office may
10 not be moved outside this state unless expressly authorized by
11 the financial institutions codes or by federal law.
12 (c) A relocation application, filed by a strong,
13 well-managed state bank or trust company that is operating in
14 a safe and sound manner, which is not denied within 10 working
15 days after receipt shall be deemed approved unless the
16 department notifies the financial institution in writing that
17 the application was not complete.
18 (d) In addition to the application required by
19 paragraph (a), a financial institution whose main office in
20 this state has been in operation less than 24 months must
21 provide evidence that the criteria of s. 658.21(1) will be
22 met.
23 (e) With 30 days' prior written notice, an established
24 branch office may be consolidated with another established
25 branch office when the two offices are located within a 1-mile
26 radius. The notice shall include any information the
27 department may prescribe by rule.
28 (e)(f) A branch office may be closed with 30 days'
29 prior written notice to the department. The notice shall
30 include any information the department may prescribe by rule.
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1 (4) With prior written notification to the department,
2 any bank may operate facilities which are not physically
3 connected to the main or branch office of the bank, provided
4 that the facilities are situated on the property of the main
5 or branch office or property contiguous thereto. Property
6 which is separated from the main or branch office of a bank by
7 only a street, and one or more walkways and alleyways are
8 determined to be, for purposes of this subsection, contiguous
9 to the property of the main or branch office.
10 (5) A bank may provide, directly or through a contract
11 with another company, off-premises armored car service to its
12 customers. Armored car services shall not be considered a
13 branch for the purposes of subsection (2).
14 (6)(a) Any state bank that is a subsidiary of a bank
15 holding company may agree to receive deposits, renew time
16 deposits, close loans, service loans, and receive payments on
17 loans and other obligations, as an agent for an affiliated
18 depository institution.
19 (b) The term "close loan" does not include the making
20 of a decision to extend credit or the extension of credit.
21 (c) As used in this section, "receive deposits" means
22 the taking of deposits to be credited to an existing account
23 and does not include the opening or origination of new deposit
24 accounts at an affiliated institution by the agent
25 institution.
26 (d) Under this section, affiliated banks may act as
27 agents for one another regardless of whether the institutions
28 are located in the same or different states. This section
29 applies solely to affiliated depository institutions acting as
30 agents, and has no application to agency relationships
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1 concerning nondepositories as agent, whether or not affiliated
2 with the depository institution.
3 (e) In addition, under this section, agent banks may
4 perform ministerial functions for the principal bank making a
5 loan. Ministerial functions include, but are not limited to,
6 such activities as providing loan applications, assembling
7 documents, providing a location for returning documents
8 necessary for making the loan, providing loan account
9 information, and receiving payments. It does not include such
10 loan functions as evaluating applications or disbursing loan
11 funds.
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13 For the purposes of this section, a strong, well-managed state
14 bank or trust company is an institution that has been in
15 operation for at least 24 months, is well capitalized, has
16 received a satisfactory rating at the institution's most
17 recent state or federal safety and soundness examination, and
18 is not the object of any enforcement action.
19 Section 13. Section 663.066, Florida Statutes, is
20 transferred and renumbered as section 658.285, Florida
21 Statutes.
22 Section 14. Paragraph (b) of subsection (4) of section
23 658.34, Florida Statutes, is amended to read:
24 658.34 Shares of capital stock.--
25 (4) With the approval of the department, a bank or
26 trust company may issue less than all the number of shares of
27 any of its capital stock authorized by its articles of
28 incorporation. Such authorized but unissued shares may be
29 issued only for the following purposes:
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1 (b) To declare or pay a stock dividend, with the
2 approval of the department; however, any such stock dividend
3 must comply with the provisions of this section and s. 658.37.
4 Section 15. Section 658.73, Florida Statutes, is
5 amended to read:
6 658.73 Fees and assessments.--
7 (1) Each state bank and state trust company shall pay
8 to the department examination fees and assessments as follows:
9 (a) A semiannual fee of $2,500; and
10 (b) A semiannual assessment, each in such amount as
11 may be determined by the department, by rule, but not
12 exceeding 15 cents for each $1,000 of total assets as shown on
13 the statement of condition of the bank or trust company as of
14 the last business day in June and the last business day in
15 December in each year. In its determination, the department
16 may consider examination fees and application fees received
17 from banks and trust companies in setting the semiannual
18 assessment for purposes of meeting the cost of regulation of
19 banks and trust companies subject to this chapter.
20 (2) Applications filed with the department shall be
21 accompanied by payment of the following nonrefundable fees:
22 (a) Fifteen thousand dollars for each application for
23 authority to organize a new state bank or state trust company.
24 (b) Two thousand five hundred dollars for each
25 application by an existing bank or association for trust
26 powers.
27 (c) Seven thousand five hundred dollars for each
28 application for authority to acquire a controlling interest in
29 a state bank or state trust company; however, if more than one
30 bank or trust company is being acquired in any such
31 application, the fee shall be increased by $3,500 for each
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1 additional bank or trust company. However, in no event shall
2 the fee exceed $15,000.
3 (d) Seven thousand five hundred dollars for each
4 application for conversion of a national bank to a state bank.
5 (e) Seven hundred fifty dollars for each application
6 to establish a branch of a strong, well-managed state bank or
7 trust company as defined in s. 658.26. One thousand five
8 hundred dollars for each application to establish a branch by
9 any other state bank or state trust company that does not
10 qualify for the branch notification process.
11 (f) One thousand five hundred dollars for each
12 application for authority to establish a trust service office
13 of a state trust company or of a trust department of a state
14 bank or association, and a like amount for each application by
15 a bank or association with trust powers which is not a state
16 bank or state association for authority to establish a trust
17 service office at a state bank, state association, or state
18 credit union.
19 (g) Seven thousand five hundred dollars for each
20 application for a merger or consolidation; however, if three
21 or more banks or trust companies are involved in any such
22 application, the fee shall be $3,500 for each involved
23 institution. However, in no event shall the fee exceed
24 $15,000.
25 (h) Two thousand five hundred dollars to establish a
26 successor institution.
27 (i) Seven Two hundred fifty dollars for each
28 application by a strong, well-managed state bank or trust
29 company, as defined in s. 658.26, to relocate the main office
30 of a state bank or a state trust company. Each other state
31 bank or trust company not operating in a safe and sound manner
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1 shall pay a fee of $750 for each application for relocation of
2 its main office.
3 (j) Two thousand five hundred dollars for each
4 application for the purchase of assets and the assumption of
5 liabilities. If, as a result of such application, the
6 applicant will establish more than 10 branch offices within
7 this state, an application fee of $100 is required for each
8 additional branch office.
9 (3)(a) If, as a result of any application filed with
10 the department, the department determines that an examination
11 is necessary to assess the financial condition of any
12 financial institution, the applying financial institution
13 shall pay to the department a nonrefundable examination fee,
14 pursuant to s. 655.045(1).
15 (b) The department may refund up to one-half of the
16 fee submitted with an application if the application is
17 withdrawn by the applicant prior to publication in the Florida
18 Administrative Weekly.
19 (4) Each state bank and state trust company shall pay
20 to the department $25 for each "certificate of good standing"
21 certifying that a state-chartered financial institution is
22 licensed to conduct business in this state under the financial
23 institutions codes. All such requests shall be in writing. The
24 department shall waive this fee when the request is by a state
25 or federal regulatory agency or law enforcement agency.
26 (5)(4) The amounts of all fees and assessments
27 provided for in this section shall be deemed to be maximum
28 amounts; and the department has the authority to establish, by
29 rule, and from time to time to change, fees and assessments in
30 amounts less than the maximum amounts stated in this section.
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1 Section 16. Subsection (2) of section 663.09, Florida
2 Statutes, is amended to read:
3 663.09 Reports; records.--
4 (2) The international banking corporation of each
5 state-licensed international bank agency or international
6 branch shall perform or cause to be performed an audit of such
7 international bank agency or international branch. The
8 department shall, by rule, prescribe the minimum audit
9 procedures including the audit reporting requirements which
10 would satisfy the provisions of this subsection. The late
11 submission of an audit shall be subject to the imposition of
12 the administrative fine prescribed by s. 655.045(2)(b).
13 Section 17. Subsection (5) of section 658.48, Florida
14 Statutes, is amended to read:
15 658.48 Loans.--A state bank may make loans and
16 extensions of credit, with or without security, subject to the
17 following limitations and provisions:
18 (5) SPECIAL PROVISIONS.--
19 (a) A limitation of 25 percent of the capital accounts
20 of the lending bank applies to the aggregate of all loans made
21 to a corporation together with all loans secured by shares of
22 stock, bonds, or other obligations of the same corporation,
23 unless the stocks or bonds are listed and traded on a
24 recognized stock exchange or are registered under the
25 Securities Exchange Act of 1934 or are registered with the
26 Board of Governors of the Federal Reserve System, with the
27 Federal Deposit Insurance Corporation, or with the Comptroller
28 of the Currency, in which case no aggregate loan limit
29 applies.
30 (b) A limitation of 15 percent of the capital accounts
31 of the lending bank applies to loans made to any one borrower
19
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Florida Senate - 2001 CS for SB 1260
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1 on the security of shares of capital stock listed and traded
2 on a recognized exchange. A limitation of 10 percent of the
3 capital accounts of the lending bank applies to loans made to
4 any one borrower on the security of shares of capital stock
5 not listed on a recognized exchange or the obligations
6 subordinate to deposits of another bank. A limitation of 25
7 percent of the capital accounts of the lending state bank
8 applies to the aggregate of all loans secured by the shares of
9 capital stock or the obligations subordinate to deposits of
10 any one bank.
11 (c) No loan shall be made by a bank:
12 1. On the security of the shares of its own capital
13 stock, of stock of its own one-bank holding company, or of its
14 obligations subordinate to deposits.
15 2. On an unsecured basis for the purpose of the
16 purchase of shares of its own capital stock, stock of its own
17 one-bank holding company, or its obligations subordinate to
18 deposits.
19 3. On a secured or unsecured basis for the purpose of
20 the purchase of shares of the stock of its one-bank holding
21 company.
22 (d) Loans based upon the security of real estate
23 mortgages shall be documented as first liens, except that
24 liens other than first liens may be taken:
25 1. To protect a loan previously made in good faith;
26 2. To further secure a loan otherwise amply and
27 entirely secured;
28 3. As additional security for Federal Housing
29 Administration Title 1 loans or loans made with participation
30 or guaranty by the Small Business Administration;
31
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1 4. To secure a loan not in excess of 15 percent of the
2 capital accounts of the bank; or
3 5. As provided by rules of the department.
4 (e) In computing the total liabilities of any person,
5 there shall be included all loans endorsed or guaranteed as to
6 repayment by such person and by any related interest of such
7 person.
8 (f) All loan documentation shall be written in the
9 English language or contain an English translation of foreign
10 language provisions.
11 Section 18. Effective July 1, 2001, section 655.81,
12 Florida Statutes, is repealed.
13 Section 19. Except as otherwise expressly provided in
14 this act, this act shall take effect upon becoming a law.
15
16 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
17 SB 1260
18
19
1. Increases the precent of capital stock a one-bank
20 holding company may accept as collateral on a loan from
any one borrower from 10 to 15 percent of the capital of
21 the one-bank holding company, if the stock is listed and
traded on a recognized exchange. If a loan is
22 collateralized by capital stock that is not listed on a
recognized exchange, the one-bank holding company would
23 be permitted to accept loans with such collateral up to
10 percent of the capital of the one-bank holding
24 company.
25 2. Permits a one-bank holding company to make a loan using
its stock as collateral, as long as the loan would not
26 be used for the purchase of additional stock.
27
28
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30
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