HB 1825

1	A bill to be entitled
2	An act relating to banking; amending s. 494.0025, F.S.;
3	prohibiting the use of the name or logo of a financial
4	institution or its affiliates or subsidiaries under
5	certain circumstances without written consent; amending
6	ss. 516.07 and 520.995, F.S.; providing that the use of
7	the name or logo of a financial institution or its
8	affiliates or subsidiaries under certain circumstances
9	without written consent is grounds for denial of a license
10	or for disciplinary action; amending s. 626.9541, F.S.;
11	providing that deceptive use of a name is an unfair method
12	of competition and an unfair or deceptive act or practice;
13	amending ss. 655.005 and 655.0322, F.S.; including
14	international branches within the definitions of certain
15	financial institutions; amending s. 655.0385, F.S.;
16	clarifying an appointment notification requirement;
17	requiring a nonrefundable fee to accompany certain
18	notifications; amending s. 655.045, F.S.; exempting
19	certain financial institutions from certain audit
20	requirements; amending s. 655.059, F.S.; providing for
21	inspection and examination of a financial institution's
22	records and books pursuant to subpoena; requiring
23	reimbursement of reasonable costs and fees for compliance;
24	providing for setting reimbursement amount when certain
25	charges are contested; amending s. 655.921, F.S.;
26	providing an additional limitation on out-of-state
27	financial institution qualifications for certain exempt
28	transactions; removing language relating to authorization
29	to maintain an office in the state; amending s. 655.922,
30	F.S.; including financial institutions authorized to do
31	business in this state pursuant to the financial
32	institutions codes of another state within an
33	authorization to engage in certain business in this state;
34	expanding a list of names or titles limited to use by
35	financial institutions; prohibiting the use of the name or
36	logo of a financial institution or its affiliates or
37	subsidiaries under certain circumstances; requiring the
38	Financial Services Commission to adopt certain
39	implementing rules; amending s. 655.94, F.S.; removing a
40	limitation on notary publics authorized to open a safety
41	deposit box under certain circumstances; specifying use of
42	certified mail for sending certain certificate copies;
43	amending s. 658.16, F.S.; providing criteria for certain
44	banks or trust companies to be considered incorporated
45	under the financial institutions codes; providing
46	definitions; amending s. 658.23, F.S.; deleting a bylaws
47	filing requirement; amending s. 658.26, F.S.; authorizing
48	certain financial institutions to establish or relocate an
49	office under certain circumstances; providing for waiver
50	of certain application, fee, and publication requirements;
51	providing application requirements to relocate a branch;
52	requiring an application filing fee; providing for
53	compliance investigations by the office; prohibiting
54	moving a main office outside the state under certain
55	circumstances; deleting certain office relocation
56	provisions; amending s. 658.33, F.S.; expanding the list
57	of persons required to meet certain qualification criteria
58	to be an officer of a bank or trust company; providing an
59	additional criterion for granting a waiver of
60	qualification requirements; amending s. 658.37, F.S.;
61	prohibiting imminently insolvent banks from paying
62	dividends; amending s. 658.48, F.S.; prohibiting
63	imminently insolvent banks from making new loans or
64	discounts; providing exceptions; amending s. 658.67, F.S.;
65	providing an additional time criterion for determining the
66	value of certain property acquired as security; amending
67	s. 658.73, F.S.; limiting individuals or entities required
68	to pay a fee for a "certificate of good standing";
69	amending s. 663.16, F.S.; revising certain definitions;
70	amending s. 663.304, F.S.; deleting a requirement to
71	include evidence of a reservation of a proposed corporate
72	name with certain applications; amending s. 665.034, F.S.;
73	revising a minimum percentage requirement for designating
74	control of an association; amending s. 674.406, F.S.;
75	revising certain required time periods for purposes of
76	protecting against unauthorized signatures or alterations;
77	amending ss. 655.948, 658.60, 663.02, and 663.318, F.S.;
78	deleting provisions relating to a repealed section;
79	repealing s. 658.68, F.S., relating to liquidity
80	requirements for a state bank; providing an effective
81	date.
82
83	Be It Enacted by the Legislature of the State of Florida:
84
85	Section 1.  Subsection (10) is added to section 494.0025,
86	Florida Statutes, to read:
87	494.0025  Prohibited practices.--It is unlawful for any
88	person:
89	(10)  To use the name or logo of a financial institution as
90	defined in s. 655.005(1) or its affiliates or subsidiaries when
91	marketing or soliciting existing or prospective customers if
92	such marketing materials are used without the express written
93	consent of the financial institution and in a manner that would
94	lead a reasonable person to believe that the material or
95	solicitation originated from, was endorsed by, or is in any way
96	related to or the responsibility of the financial institution or
97	its affiliates or subsidiaries.
98	Section 2.  Paragraph (o) is added to subsection (1) of
99	section 516.07, Florida Statutes, to read:
100	516.07  Grounds for denial of license or for disciplinary
101	action.--
102	(1)  The following acts are violations of this chapter and
103	constitute grounds for denial of an application for a license to
104	make consumer finance loans and grounds for any of the
105	disciplinary actions specified in subsection (2):
106	(o)  Using the name or logo of a financial institution as
107	defined in s. 655.005(1) or its affiliates or subsidiaries when
108	marketing or soliciting existing or prospective customers if
109	such marketing materials are used without the express written
110	consent of the financial institution and in a manner that would
111	lead a reasonable person to believe that the material or
112	solicitation originated from, was endorsed by, or is in any way
113	related to or the responsibility of the financial institution or
114	its affiliates or subsidiaries.
115	Section 3.  Paragraph (j) is added to subsection (1) of
116	section 520.995, Florida Statutes, to read:
117	520.995  Grounds for disciplinary action.--
118	(1)  The following acts are violations of this chapter and
119	constitute grounds for the disciplinary actions specified in
120	subsection (2):
121	(j)  Using the name or logo of a financial institution as
122	defined in s. 655.005(1) or its affiliates or subsidiaries when
123	marketing or soliciting existing or prospective customers if
124	such marketing materials are used without the express written
125	consent of the financial institution and in a manner that would
126	lead a reasonable person to believe that the material or
127	solicitation originated from, was endorsed by, or is in any way
128	related to or the responsibility of the financial institution or
129	its affiliates or subsidiaries.
130	Section 4.  Paragraph (bb) is added to subsection (1) of
131	section 626.9541, Florida Statutes, to read:
132	626.9541  Unfair methods of competition and unfair or
133	deceptive acts or practices defined.--
134	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
135	ACTS.--The following are defined as unfair methods of
136	competition and unfair or deceptive acts or practices:
137	(bb)  Deceptive use of name.--Using the name or logo of a
138	financial institution as defined in s. 655.005(1) or its
139	affiliates or subsidiaries when marketing or soliciting existing
140	or prospective customers if such marketing materials are used
141	without the express written consent of the financial institution
142	and in a manner that would lead a reasonable person to believe
143	that the material or solicitation originated from, was endorsed
144	by, or is in any way related to or the responsibility of the
145	financial institution or its affiliates or subsidiaries.
146	Section 5.  Paragraphs (h) and (p) of subsection (1) of
147	section 655.005, Florida Statutes, are amended to read:
148	655.005  Definitions.--
149	(1)  As used in the financial institutions codes, unless
150	the context otherwise requires, the term:
151	(h)  "Financial institution" means a state or federal
152	association, bank, savings bank, trust company, international
153	bank agency, international branch, representative office or
154	international administrative office, or credit union.
155	(p)  "State financial institution" means a state-chartered
156	or state-organized association, bank, investment company, trust
157	company, international bank agency, international branch,
158	international representative office, international
159	administrative office, or credit union.
160	Section 6.  Subsection (1) of section 655.0322, Florida
161	Statutes, is amended to read:
162	655.0322  Prohibited acts and practices; criminal
163	penalties.--
164	(1)  As used in this section, the term "financial
165	institution" means a financial institution as defined in s.
166	655.50 which includes a state trust company, state or national
167	bank, state or federal association, state or federal savings
168	bank, state or federal credit union, Edge Act or agreement
169	corporation, international bank agency, international branch,
170	representative office or administrative office, or other
171	business entity as defined by the commission by rule, whether
172	organized under the laws of this state, the laws of another
173	state, or the laws of the United States, which institution is
174	located in this state.
175	Section 7.  Subsection (1) of section 655.0385, Florida
176	Statutes, is amended, subsection (4) of said section is
177	renumbered as subsection (5), and a new subsection (4) is added
178	to said section, to read:
179	655.0385  Disapproval of directors and executive
180	officers.--
181	(1)  Each state financial institution shall notify the
182	office of the proposed appointment of any individual to the
183	board of directors or the appointment or employment of any
184	individual as an executive officer or equivalent position at
185	least 60 days before such appointment or employment becomes
186	effective, if the state financial institution:
187	(a)  Has been chartered for less than 2 years;
188	(b)  Has undergone a change in control or conversion within
189	the preceding 2 years. The office may exempt a financial
190	institution from this paragraph if it operates in a safe and
191	sound manner;
192	(c)  Is not in compliance with the minimum capital
193	requirements applicable to such financial institution; or
194	(d)  Is otherwise operating in an unsafe and unsound
195	condition, as determined by the office, on the basis of such
196	financial institution's most recent report of condition or
197	report of examination.
198	(4)  Beginning 1 year after a financial institution opens,
199	each notification of a proposed appointment of an individual to
200	the board of directors must be accompanied by a nonrefundable
201	fee of $35.
202	Section 8.   Paragraph (c) is added to subsection (3) of
203	section 655.045, Florida Statutes, to read:
204	655.045  Examinations, reports, and internal audits;
205	penalty.--
206	(3)
207	(c)  Any de novo state financial institution open for fewer
208	than 4 months shall be exempt from the audit requirements of
209	this section.
210	Section 9.  Paragraph (e) of subsection (1) of section
211	655.059, Florida Statutes, is amended to read:
212	655.059  Access to books and records; confidentiality;
213	penalty for disclosure.--
214	(1)  The books and records of a financial institution are
215	confidential and shall be made available for inspection and
216	examination only:
217	(e)  As compelled by a court of competent jurisdiction or
218	pursuant to a subpoena issued in accordance with and subject to
219	the provisions of the Florida Rules of Civil or Criminal
220	Procedure or the Federal Rules of Civil Procedure or pursuant to
221	a subpoena issued in accordance with the provisions of the laws
222	of this state or of the United States. Prior to the production
223	of the books and records of a financial institution, the party
224	seeking production shall reimburse the financial institution for
225	the reasonable costs and fees incurred in compliance with the
226	production. If the parties disagree regarding the amount of
227	reimbursement, the party seeking the records may request the
228	court or agency having jurisdiction over the matter to set the
229	amount of the reimbursement;
230	Section 10.  Section 655.921, Florida Statutes, is amended
231	to read:
232	655.921  Transaction of business by out-of-state financial
233	institutions; exempt transactions in the financial institutions
234	codes.--
235	(1)  Nothing in the financial institutions codes shall be
236	construed to prohibit a financial institution having its
237	principal place of business outside this state, and not
238	operating any branches in this state, from:
239	(a)  Contracting in this state with any person to acquire
240	from such person a part, or the entire, interest in a loan that
241	such person proposes to make, has heretofore made, or hereafter
242	makes, together with a like interest in any security instrument
243	covering real or personal property in the state proposed to be
244	given or hereafter or heretofore given to such person to secure
245	or evidence such loan.
246	(b)  Entering into mortgage servicing contracts with
247	persons authorized to transact business in this state and
248	enforcing in this state the obligations heretofore or hereafter
249	acquired by it in the transaction of business outside this state
250	or in the transaction of any business authorized by this
251	section.
252	(c)  Acquiring, holding, leasing, mortgaging, contracting
253	with respect to, or otherwise protecting, managing, or conveying
254	property in this state which has heretofore or may hereafter be
255	assigned, transferred, mortgaged, or conveyed to it as security
256	for, or in whole or in part in satisfaction of, a loan or loans
257	made by it or obligations acquired by it in the transaction of
258	any business authorized by this section.
259	(d)  Making loans or committing to make loans to any person
260	located in this state and soliciting compensating deposit
261	balances in connection therewith.
262	(2)  No such financial institution shall be deemed to be
263	transacting business in this state, or be required to qualify so
264	to do, solely by reason of the performance of any of the acts or
265	business authorized in this section. This section does not
266	authorize or permit any such financial institution to maintain
267	an office within the state.
268	Section 11.  Section 655.922, Florida Statutes, is amended
269	to read:
270	655.922  Banking business by unauthorized persons; use of
271	name.--
272	(1)  No person other than a financial institution
273	authorized to do business in this state pursuant to the
274	financial institutions codes of this state or another state or
275	federal law shall, in this state, engage in the business of
276	soliciting or receiving funds for deposit or of issuing
277	certificates of deposit or of paying checks; and no person shall
278	establish or maintain a place of business in this state for any
279	of the functions, transactions, or purposes mentioned in this
280	subsection. Any person who violates the provisions of this
281	subsection is guilty of a felony of the third degree, punishable
282	as provided in s. 775.082, s. 775.083, or s. 775.084. This
283	subsection does not prohibit the issuance or sale by a financial
284	institution of traveler's checks, money orders, or other
285	instruments for the transmission or payment of money, by or
286	through employees or agents of the financial institution off the
287	financial institution's premises.
288	(2)  No person other than a financial institution shall, in
289	this state:
290	(a)  Transact business under any name or title that
291	contains the words "bank," "banco," "banque," "banc," "banker,"
292	"banking," "trust company," "savings and loan association,"
293	"savings bank," or "credit union," or words of similar import,
294	in any context or in any manner;
295	(b)  Use any name, word, sign, symbol, or device in any
296	context or in any manner; or
297	(c)  Circulate or use any letterhead, billhead, circular,
298	paper, or writing of any kind or otherwise advertise or
299	represent in any manner,
300
301	which indicates or reasonably implies that the business being
302	conducted or advertised is the kind or character of business
303	transacted or conducted by a financial institution or which is
304	likely to lead any person to believe that such business is that
305	of a financial institution; however, the words "bank," "banco,"
306	banque," "banc," "banker," "banking," "trust company," "savings
307	and loan association," "savings bank," or "credit union," or the
308	plural of any thereof, may be used by, and in the corporate or
309	other name or title of, any company which is or becomes a
310	financial institution holding company pursuant to federal law;
311	any subsidiary of any such financial institution holding company
312	which includes as a part of its name or title all or any part,
313	or abbreviations, of the name or title of the financial
314	institution holding company of which it is a subsidiary; any
315	trade organization or association, whether or not incorporated,
316	functioning for the purpose of promoting the interests of
317	financial institutions or financial institution holding
318	companies, the active members of which are financial
319	institutions or financial institution holding companies; and any
320	international development bank chartered pursuant to part II of
321	chapter 663.
322	(3)  No person may use the name or logo of any financial
323	institution or an affiliate or subsidiary of such institution,
324	or use a name similar to that of a financial institution or an
325	affiliate or subsidiary of such institution, to market or
326	solicit business from a customer or prospective customer if:
327	(a)  The solicitation is done without the express written
328	consent of the financial institution or its affiliate or
329	subsidiary; and
330	(b)  A reasonable person would believe that the materials
331	originated from, are endorsed by, or are in any way connected
332	with the financial institution or its affiliates or
333	subsidiaries.
334	(4)(3)  Any court, in a proceeding brought by the office,
335	by any financial institution the principal place of business of
336	which is in this state, or by any other person residing, or
337	whose principal place of business is located, in this state and
338	whose interests are substantially affected thereby, may enjoin
339	any person from violating any of the provisions of this section.
340	For the purposes of this subsection, the interests of a trade
341	organization or association are deemed to be substantially
342	affected if the interests of any of its members are so affected.
343	In addition, the office may issue and serve upon any person who
344	violates any of the provisions of this section a complaint
345	seeking a cease and desist order in accordance with the
346	procedures and in the manner prescribed by s. 655.033.
347	(5)(4)  Nothing in this section shall be construed to
348	prohibit the lawful establishment or the lawful operations of a
349	financial institution and nothing in this code shall be
350	construed to prohibit any advertisement or other activity in
351	this state by any person if such prohibition would contravene
352	any applicable federal law which preempts the law of this state.
353	(6)  The commission shall develop rules to implement this
354	section.
355	Section 12.  Subsection (1) of section 655.94, Florida
356	Statutes, is amended to read:
357	655.94  Special remedies for nonpayment of rent.--
358	(1)  If the rental due on a safe-deposit box has not been
359	paid for 3 months, the lessor may send a notice by certified
360	registered mail to the last known address of the lessee stating
361	that the safe-deposit box will be opened and its contents stored
362	at the expense of the lessee unless payment of the rental is
363	made within 30 days. If the rental is not paid within 30 days
364	from the mailing of the notice, the box may be opened in the
365	presence of an officer of the lessor and of a notary public who
366	is not a director, officer, employee, or stockholder of the
367	lessor. The contents shall be sealed in a package by a notary
368	public who shall write on the outside the name of the lessee and
369	the date of the opening. The notary public shall execute a
370	certificate reciting the name of the lessee, the date of the
371	opening of the box, and a list of its contents. The certificate
372	shall be included in the package, and a copy of the certificate
373	shall be sent by certified registered mail to the last known
374	address of the lessee. The package shall then be placed in the
375	general vaults of the lessor at a rental not exceeding the
376	rental previously charged for the box. The lessor has a lien on
377	the package and its contents to the extent of any rental due and
378	owing plus the actual, reasonable costs of removing the contents
379	from the safe-deposit box.
380	Section 13.  Section 658.16, Florida Statutes, is amended
381	to read:
382	658.16  Creation of banking or trust corporation.--
383	(1)  When authorized by the office, as provided herein, a
384	corporation may be formed under the laws of this state for the
385	purpose of becoming a state bank or a state trust company and
386	conducting a general banking or trust business.
387	(2)  A bank or trust company that is chartered as a limited
388	liability company under the laws of any state is deemed to be
389	incorporated under the financial institutions codes if:
390	(a)  The institution is not subject to automatic
391	termination, dissolution, or suspension upon the occurrence of
392	some event, other than the passage of time, including, but not
393	limited to, the death, disability, bankruptcy, expulsion, or
394	withdrawal of an owner of the institution.
395	(b)  The exclusive authority to manage the institution is
396	vested in a board of managers or directors that is elected or
397	appointed by the owners and that operates in substantially the
398	same manner as, and has substantially the same rights, powers,
399	privileges, duties, and responsibilities as, a board of
400	directors of a bank or trust company chartered as a corporation.
401	(c)  Neither the laws of the state of the institution's
402	organization nor the institution's operating agreement bylaws or
403	other organizational documents:
404	1.  Provide that an owner of the institution is liable for
405	the debts, liabilities, and obligations of the institution in
406	excess of the amount of the owner's investment; or
407	2.  Require the consent of any other owner of the
408	institution in order for an owner to transfer an ownership
409	interest in the institution, including voting rights.
410	(3)  For purposes of the financial institutions codes:
411	(a)  The terms "stockholder" and "shareholder" include an
412	owner of any interest in a bank or trust company chartered as a
413	limited liability company, including a member or participant.
414	(b)  The term "director" includes a manager or director of
415	a bank or trust company chartered as a limited liability
416	company, or other person who has, with respect to such a bank or
417	trust company, authority substantially similar to that of a
418	director of a corporation.
419	(c)  The term "officer" includes an officer of a bank or
420	trust company chartered as a limited liability company, or other
421	person who has, with respect to such a bank or trust company,
422	authority substantially similar to that of an officer of a
423	corporation.
424	(d)  The terms "stock," "voting stock," "voting shares,"
425	and "voting securities" include similar ownership interests in a
426	bank or trust company chartered as a limited liability company,
427	as well as any certificates or other evidence of such ownership
428	interests.
429	(e)  The terms "articles of incorporation" and "bylaws" of
430	a bank or trust company chartered as a limited liability company
431	mean the institution's articles of organization and operating
432	agreement or other such organizational documentation as is
433	substantially similar to that of a corporation.
434	(f)  The term "par value" when used with respect to any
435	ownership interest in a bank or trust company chartered as a
436	limited liability company means the amount of capital which must
437	be invested for each unit of ownership.
438	(g)  The term "dividend" includes distributions of earnings
439	to the owners of a bank or trust company chartered as a limited
440	liability company.
441	Section 14.  Subsection (5) of section 658.23, Florida
442	Statutes, is amended to read:
443	658.23  Submission of articles of incorporation; contents;
444	form; approval; filing; commencement of corporate existence;
445	bylaws.--
446	(5)  Unless the articles of incorporation provide
447	otherwise, the board of directors shall have authority to adopt
448	or amend bylaws that do not conflict with bylaws that may have
449	been adopted by the stockholders. The bylaws shall be for the
450	governance government of the bank or trust company, subordinate
451	only to the articles of incorporation and the laws of the United
452	States and of this state. A current copy of the bylaws shall be
453	filed with the office at all times.
454	Section 15.  Section 658.26, Florida Statutes, is amended
455	to read:
456	658.26  Places of transacting business; branches;
457	facilities.--
458	(1)  Any bank or trust company heretofore or hereafter
459	incorporated pursuant to this chapter shall have one main
460	office, which shall be located within the state.
461	(2)(a)  In addition, with the approval of the office and
462	upon such conditions as the commission or office prescribes, any
463	state bank or trust company may establish branches or relocate
464	offices within or outside the state. With the approval of the
465	office upon a determination that the resulting bank or trust
466	company will be of sound financial condition, any bank or trust
467	company incorporated pursuant to this chapter may establish
468	branches by merger with any other bank or trust company.
469	(b)  As provided by commission rules, a financial
470	institution operating in a safe and sound manner may establish
471	or relocate an office by filing a written notice with the office
472	at least 30 days before opening or relocating that office. In
473	such case, the financial institution need not file an
474	application or pay an application fee. The notification shall
475	specify the name and location of the office and effective date
476	of the change. The relocation of a main office to a location
477	outside this state shall be by application only.
478	(c)  Applications filed pursuant to this subsection shall
479	not be published in the Florida Administrative Weekly but shall
480	otherwise be subject to the provisions of chapter 120.
481	(d)(b)  An application to establish for a branch by a bank
482	ineligible that does not meet the requirements for the branch
483	notification process shall be in writing in such form as the
484	commission prescribes and be supported by such information,
485	data, and records as the commission or office may require to
486	make findings necessary for approval. Applications filed
487	pursuant to this subsection shall not be published in the
488	Florida Administrative Weekly but shall otherwise be subject to
489	the provisions of chapter 120. Upon the filing of an application
490	and a nonrefundable filing fee for the establishment of any
491	branch permitted by paragraph (a), the office shall make an
492	investigation with respect to compliance with the requirements
493	of paragraph (a) and shall investigate and consider all factors
494	relevant to such requirements, including the following:
495	1.  The sufficiency of capital accounts in relation to the
496	deposit liabilities of the bank, or in relation to the number
497	and valuation of fiduciary accounts of the trust company,
498	including the proposed branch, and the additional fixed assets,
499	if any, which are proposed for the branch and its operations,
500	without undue risk to the bank or its depositors, or undue risk
501	to the trust company or its fiduciary accounts;
502	2.  The sufficiency of earnings and earning prospects of
503	the bank or trust company to support the anticipated expenses
504	and any anticipated operating losses of the branch during its
505	formative or initial years;
506	3.  The sufficiency and quality of management available to
507	operate the branch;
508	4.  The name of the proposed branch to determine if it
509	reasonably identifies the branch as a branch of the main office
510	and is not likely to unduly confuse the public; and
511	5.  Substantial compliance by the applicants with
512	applicable law governing their operations.
513	(e)(c)  As provided by commission rule, a financial
514	institution operating in a safe and sound manner may establish a
515	branch by filing a written notice with the office at least 30
516	days before opening that branch. In such case, the financial
517	institution need not file a branch application or pay a branch
518	application fee.
519	(f)  Upon the filing of a relocation application and
520	payment of a nonrefundable filing fee, the office shall
521	investigate to determine substantial compliance by the financial
522	institution with the applicable laws governing its operations.
523	Additional investments in land, buildings, leases, and leasehold
524	improvements resulting from such relocation shall comply with
525	the limitations imposed by s. 658.67(7)(a). A main office may
526	not be moved outside this state unless expressly authorized by
527	the financial institutions codes or by federal law. In addition,
528	a financial institution in operation for fewer than 24 months
529	must provide evidence that the criteria of s. 658.21(1) will be
530	met.
531	(3)(a)  An office in this state may be relocated with prior
532	written approval of the office. An application for relocation
533	shall be in writing in such form as the commission prescribes
534	and shall be supported by such information, data, and records as
535	the commission or office may require to make findings necessary
536	for approval.
537	(g)(b)  A state bank wanting to relocate a branch but
538	ineligible to do so by notification as provided in this
539	subsection shall file an application in the form required by the
540	commission. Applications filed pursuant to this subsection shall
541	not be published in the Florida Administrative Weekly but shall
542	otherwise be subject to the provisions of chapter 120. Upon the
543	filing of a relocation application and a nonrefundable filing
544	fee, the office shall investigate to determine substantial
545	compliance by the financial institution with applicable law
546	governing its operations. Additional investments in land,
547	buildings, leases, and leasehold improvements resulting from
548	such relocation shall comply with the limitations imposed by s.
549	658.67(7)(a). A main office may not be moved outside this state
550	unless expressly authorized by the financial institutions codes
551	or by federal law.
552	(c)  A relocation application filed by a state bank or
553	trust company that is operating in a safe and sound manner which
554	is not denied within 10 working days after receipt shall be
555	deemed approved unless the office notifies the financial
556	institution in writing that the application was not complete.
557	(d)  In addition to the application required by paragraph
558	(a), a financial institution whose main office in this state has
559	been in operation less than 24 months must provide evidence that
560	the criteria of s. 658.21(1) will be met.
561	(h)(e)  A branch office may be closed with 30 days' prior
562	written notice to the office. The notice shall include any
563	information the commission prescribes by rule.
564	(3)(4)  With prior written notification to the office, any
565	bank may operate facilities which are not physically connected
566	to the main or branch office of the bank, provided that the
567	facilities are situated on the property of the main or branch
568	office or property contiguous thereto. Property which is
569	separated from the main or branch office of a bank by only a
570	street, and one or more walkways and alleyways are determined to
571	be, for purposes of this subsection, contiguous to the property
572	of the main or branch office.
573	(4)(5)  A bank may provide, directly or through a contract
574	with another company, off-premises armored car service to its
575	customers. Armored car services shall not be considered a branch
576	for the purposes of subsection (2).
577	(5)(6)(a)  Any state bank that is a subsidiary of a bank
578	holding company may agree to receive deposits, renew time
579	deposits, close loans, service loans, and receive payments on
580	loans and other obligations, as an agent for an affiliated
581	depository institution.
582	(b)  The term "close loan" does not include the making of a
583	decision to extend credit or the extension of credit.
584	(c)  As used in this section, "receive deposits" means the
585	taking of deposits to be credited to an existing account and
586	does not include the opening or origination of new deposit
587	accounts at an affiliated institution by the agent institution.
588	(d)  Under this section, affiliated banks may act as agents
589	for one another regardless of whether the institutions are
590	located in the same or different states. This section applies
591	solely to affiliated depository institutions acting as agents,
592	and has no application to agency relationships concerning
593	nondepositories as agent, whether or not affiliated with the
594	depository institution.
595	(e)  In addition, under this section, agent banks may
596	perform ministerial functions for the principal bank making a
597	loan. Ministerial functions include, but are not limited to,
598	such activities as providing loan applications, assembling
599	documents, providing a location for returning documents
600	necessary for making the loan, providing loan account
601	information, and receiving payments. It does not include such
602	loan functions as evaluating applications or disbursing loan
603	funds.
604	Section 16.  Subsection (5) of section 658.33, Florida
605	Statutes, is amended to read:
606	658.33  Directors, number, qualifications; officers.--
607	(5)  The president, the or chief executive officer, and any
608	other person, regardless of title, who has equivalent rank or
609	otherwise leads or directs the overall operations of a bank or
610	trust company must have had at least 1 year of direct experience
611	as an executive officer, director, or regulator of a financial
612	institution within the last 3 years. This requirement may be
613	waived by the office after considering the overall experience
614	and expertise of the proposed officer and the condition of the
615	bank or trust company as reflected in the most recent regulatory
616	report of examination and other data available to the office.
617	Section 17.  Section 658.37, Florida Statutes, is amended
618	to read:
619	658.37  Dividends and surplus.--
620	(1)  The directors of any bank or trust company, after
621	charging off bad debts, depreciation, and other worthless assets
622	if any, and making provision for reasonably anticipated future
623	losses on loans and other assets, may quarterly, semiannually,
624	or annually declare a dividend of so much of the aggregate of
625	the net profits of that period combined with its retained net
626	profits of the preceding 2 years as they shall judge expedient,
627	and, with the approval of the office, any bank or trust company
628	may declare a dividend from retained net profits which accrued
629	prior to the preceding 2 years, but each bank or trust company
630	shall, before the declaration of a dividend on its common stock,
631	carry 20 percent of its net profits for such preceding period as
632	is covered by the dividend to its surplus fund, until the same
633	shall at least equal the amount of its common and preferred
634	stock then issued and outstanding. No bank or trust company
635	shall declare any dividend at any time at which its net income
636	from the current year combined with the retained net income from
637	the preceding 2 years is a loss or which would cause the capital
638	accounts of the bank or trust company to fall below the minimum
639	amount required by law, regulation, order, or any written
640	agreement with the office or a state or federal regulatory
641	agency. A bank or trust company may, however, split up or divide
642	the issued shares of capital stock into a greater number of
643	shares without increasing or decreasing the capital accounts of
644	the bank or trust company, and such shall not be construed to be
645	a dividend within the meaning of this section.
646	(2)  No bank that has been determined to be imminently
647	insolvent shall pay dividends.
648	Section 18.  Subsection (10) of section 658.48, Florida
649	Statutes, is renumbered as subsection (11), and a new subsection
650	(10) is added to said section to read:
651	658.48  Loans.--A state bank may make loans and extensions
652	of credit, with or without security, subject to the following
653	limitations and provisions:
654	(10)  When the office has determined that a state bank is
655	imminently insolvent, the state bank may not make any new loans
656	or discounts otherwise than by discounting or purchasing bills
657	of exchange payable at sight.
658	Section 19.  Paragraph (a) of subsection (9) of section
659	658.67, Florida Statutes, is amended to read:
660	658.67  Investment powers and limitations.--A bank may
661	invest its funds, and a trust company may invest its corporate
662	funds, subject to the following definitions, restrictions, and
663	limitations:
664	(9)  ACQUISITIONS OF PROPERTY AS SECURITY.--A bank or trust
665	company may acquire property of any kind to secure, protect, or
666	satisfy a loan or investment previously made in good faith, and
667	such property shall be entered on the books of the bank or trust
668	company and held and disposed of subject to the following
669	conditions and limitations:
670	(a)  The book entry shall be the lesser of the balance of
671	the loan or investment plus acquisition costs and accrued
672	interest or the appraisal value or market value of the property
673	acquired which shall be determined and dated within 1 year prior
674	or 90 days subsequent to the date of acquisition and in
675	compliance with s. 655.60.
676	Section 20.  Subsection (4) of section 658.73, Florida
677	Statutes, is amended to read:
678	658.73  Fees and assessments.--
679	(4)  Any individual or entity other than a financial
680	institution chartered or licensed in this state Each state bank
681	and state trust company shall pay to the office $25 for each
682	"certificate of good standing" certifying that a state-chartered
683	financial institution is licensed to conduct business in this
684	state under the financial institutions codes. All such requests
685	shall be in writing. The office shall waive this fee when the
686	request is by a state or federal regulatory agency or law
687	enforcement agency.
688	Section 21.  Subsections (4) and (7) of section 663.16,
689	Florida Statutes, are amended to read:
690	663.16  Definitions; ss. 663.17-663.181.--As used in ss.
691	663.17-663.181, the term:
692	(4)  Except where the context otherwise requires,
693	"international banking corporation" or "corporation" means any
694	international bank agency or branch operating in this state.
695	(7)  "Control" means any person or group of persons acting
696	in concert, directly or indirectly, owning, controlling, or
697	holding the power to 25 vote more than 50 percent or more of the
698	voting stock of a company, or having the ability in any manner
699	to elect a majority of directors of a corporation, or otherwise
700	exercising a controlling influence over the management and
701	policies of a corporation as determined by the office.
702	Section 22.  Paragraph (b) of subsection (1) of section
703	663.304, Florida Statutes, is amended to read:
704	663.304  Application for authority to organize an
705	international development bank.--
706	(1)  A written application for authority to organize an
707	international development bank shall be filed with the office by
708	the proposed incorporator and shall include:
709	(b)  The proposed corporate name and evidence of
710	reservation of the proposed corporate name with the Department
711	of State.
712	Section 23.  Paragraph (a) of subsection (4) of section
713	665.034, Florida Statutes, is amended to read:
714	665.034  Acquisition of assets of or control over an
715	association.--
716	(4)  For purposes of this section, a person or group of
717	persons shall be deemed to have control of an association if
718	such person or group of persons:
719	(a)  Directly or indirectly, or acting in concert with one
720	or more persons or through one or more subsidiaries, owns,
721	controls, holds with powers to vote, or holds proxies
722	representing more than 25 percent or more of the voting common
723	stock of such association.
724	Section 24.  Subsections (2) and (6) of section 674.406,
725	Florida Statutes, are amended to read:
726	674.406  Customer's duty to discover and report
727	unauthorized signature or alteration.--
728	(2)  If the items are not returned to the customer, the
729	person retaining the items shall either retain the items or, if
730	the items are destroyed, maintain the capacity to furnish
731	legible copies of the items until the expiration of 5 7 years
732	after receipt of the items. A customer may request an item from
733	the bank that paid the item, and that bank must provide in a
734	reasonable time either the item or, if the item has been
735	destroyed or is not otherwise obtainable, a legible copy of the
736	item.
737	(6)  Without regard to care or lack of care of either the
738	customer or the bank, a customer who does not within 180 days 1
739	year after the statement or items are made available to the
740	customer (subsection (1)) discover and report the customer's
741	unauthorized signature on or any alteration on the item or who
742	does not within 1 year from that time discover and report any
743	unauthorized endorsement is precluded from asserting against the
744	bank the unauthorized signature or alteration. If there is a
745	preclusion under this subsection, the payor bank may not recover
746	for breach of warranty under s. 674.2081 with respect to the
747	unauthorized signature or alteration to which the preclusion
748	applies.
749	Section 25.  Paragraph (a) of subsection (2) of section
750	655.948, Florida Statutes, is amended to read:
751	655.948  Significant events; notice required.--
752	(2)  Events for which disclosure forms must be filed and
753	the filing schedule for each are as follows:
754	(a)  To be disclosed within 30 days of the occurrence of
755	the event:
756	1.  The addition, resignation, or termination of a
757	director, executive officer, independent internal auditor, or
758	independent credit review officer;
759	2.  The acquisition or divestiture of an asset or assets
760	the value of which exceeds 20 percent of capital as of the date
761	of the most recent call report. Any assets listed in s.
762	657.042(1) or s. 658.67(1) are excluded from such disclosure
763	requirements;
764	3.  Any change in general counsel or outside auditors who
765	are used to certify financial statements;
766	4.  Any interruption of fidelity insurance coverage;
767	5.  Any credit extension to an executive officer and his or
768	her related interests that, when aggregated with the amount of
769	all other extensions of credit to that executive officer and his
770	or her related interests, exceeds 15 percent of the capital
771	accounts of the financial institution;
772	6.  The failure to meet the minimum daily liquidity
773	required of s. 658.68;
774	6.7.  Any suspected criminal act perpetrated against a
775	financial institution, subsidiary, or service corporation.
776	However, no liability shall be incurred by any financial
777	institution, subsidiary, service corporation, or financial
778	institution-affiliated party as a result of making a good faith
779	effort to fulfill this disclosure requirement; or
780	7.8.  The acquisition or divestiture of a wholly owned or
781	majority owned subsidiary or service corporation.
782	Section 26.  Subsection (2) of section 658.60, Florida
783	Statutes, is amended to read:
784	658.60  Depositories of public moneys and pledge of
785	assets.--
786	(2)  Notwithstanding any other provision of this section or
787	the provisions of any other law requiring security for deposits
788	of funds in the form of surety bond, in the form of the deposit
789	or pledge of securities, or in any other form, security for such
790	deposits shall not be required to the extent that such deposits
791	are insured under the provisions of the Federal Deposit
792	Insurance Act, as now or hereafter amended. Recognition is
793	accorded to the custom and usage, and its practicality, of the
794	deposit or pledge of securities by banks, as security for
795	deposits, in an aggregate amount which, because of the
796	fluctuation from time to time of the aggregate amount of the
797	deposits secured thereby, may at times be in an amount in excess
798	of the required amount of such security without withdrawing and
799	redepositing securities with each decrease and increase of the
800	aggregate amount of deposits secured thereby. In order to
801	effectuate the provisions of the first sentence of this
802	subsection, and in recognition of the availability of such
803	excess securities for inclusion in the liquidity of state banks
804	as provided in s. 658.68, whenever the amount of securities
805	deposited or pledged exceeds the amount required for the
806	deposits secured thereby, securities in an amount equal to such
807	excess shall, for all purposes and laws, while such excess
808	exists be, and be treated as, freed and discharged from such
809	deposit and pledge even though not physically withdrawn or
810	removed from such deposit or pledge, and, in determining the
811	securities which are so freed and discharged, those securities
812	which are eligible for inclusion in a state bank's liquidity as
813	provided in s. 658.68 shall first be included in such
814	determination. However, such excess securities which are not
815	physically withdrawn or removed from deposit or from the pledge
816	thereof shall immediately and automatically, for all purposes
817	and laws, be, and be treated as, redeposited and repledged at
818	such time or times as, and to the extent that, there is an
819	increase in the amount of security required for funds deposited
820	with the bank, and, in determining the securities which are so
821	automatically and immediately redeposited and repledged, there
822	shall first be included those securities which are not eligible
823	for the aforesaid liquidity under s. 658.68.
824	Section 27.  Subsection (1) of section 663.02, Florida
825	Statutes, is amended to read:
826	663.02  Applicability of state banking laws.--
827	(1)  International banking corporations having offices in
828	this state shall be subject to all the provisions of the
829	financial institutions codes and chapter 655 as though such
830	international banking corporations were state banks, except
831	where it may appear, from the context or otherwise, that such
832	provisions are clearly applicable only to banks or trust
833	companies organized under the laws of this state or the United
834	States. Without limiting the foregoing general provisions, it is
835	the intent of the Legislature that the following provisions
836	shall be applicable to such banks or corporations: s. 655.031,
837	relating to administrative enforcement guidelines; s. 655.032,
838	relating to investigations, subpoenas, hearings, and witnesses;
839	s. 655.0321, relating to hearings, proceedings, and related
840	documents and restricted access thereto; s. 655.033, relating to
841	cease and desist orders; s. 655.037, relating to removal by the
842	office of an officer, director, committee member, employee, or
843	other person; s. 655.041, relating to administrative fines and
844	enforcement; and s. 658.49, relating to loans by banks not
845	exceeding $50,000. International banking corporations shall not
846	have the powers conferred on domestic banks by the provisions of
847	s. 658.60, relating to deposits of public funds. International
848	banking corporations shall not be subject to the provisions of
849	s. 658.68, relating to liquidity. The provisions of chapter 687,
850	relating to interest and usury, shall apply to all loans not
851	subject to s. 658.49.
852	Section 28.  Subsection (3) of section 663.318, Florida
853	Statutes, is amended to read:
854	663.318  Reserve requirements.--
855	(3)  The amounts of liquidity reserves of an international
856	development bank organized under chapter 607 as a corporation
857	for profit shall be subject to the provisions of s. 658.68,
858	relating to liquidity reserves, in the same manner and to the
859	same extent as a state bank, except that the amounts of such
860	reserves required to be maintained by an international
861	development bank shall be those specified in Regulation D of the
862	Board of Governors of the Federal Reserve System.
863	Section 29.  Section 658.68, Florida Statutes, is repealed.
864	Section 30.  This act shall take effect upon becoming a
865	law.

CODING: Words stricken are deletions; words underlined are additions.