Florida Senate - 2018 CS for SB 416 By the Committee on Banking and Insurance; and Senator Thurston 597-02155-18 2018416c1 1 A bill to be entitled 2 An act relating to governance of banks and trust 3 companies; amending s. 658.21, F.S.; revising 4 requirements relating to the financial institution 5 experience of certain proposed directors and officers 6 of a proposed bank or trust company; amending s. 7 658.33, F.S.; revising the residency requirement for 8 certain directors of a bank or trust company; revising 9 requirements relating to the financial institution 10 experience of certain officers of a bank or trust 11 company; amending s. 658.67, F.S.; revising instances 12 during which a bank may not own certain stock, 13 obligations, and other securities; providing an 14 effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Subsection (4) of section 658.21, Florida 19 Statutes, is amended to read: 20 658.21 Approval of application; findings required.—The 21 office shall approve the application if it finds that: 22 (4) The proposed officers have sufficient financial 23 institution experience, ability, standing, and reputation and 24 the proposed directors have sufficient business experience, 25 ability, standing, and reputation to indicate reasonable promise 26 of successful operation, and none of the proposed officers or 27 directors has been convicted of, or pled guilty or nolo 28 contendere to, any violation of s. 655.50, relating to the 29 control of money laundering and terrorist financing; chapter 30 896, relating to offenses related to financial institutions; or 31 similar state or federal law. At least two of the proposed 32 directors who are not also proposed officers must have had at 33 least 1 year of direct experience as an executive officer, 34 regulator, or director of a financial institution within the 5
335 years before the date of the application. However, if the 36 applicant demonstrates that at least one of the proposed 37 directors has very substantial experience as an executive 38 officer, director, or regulator of a financial institution more 39 than 5 3years before the date of the application, the office 40 may modify the requirement and allow the applicant to have only 41 one director who has to havedirect financial institution 42 experience within the last 5 3years. The proposed president or 43 chief executive officer must have had at least 1 year of direct 44 experience as an executive officer, director, or regulator of a 45 financial institution within the last 5 3years. 46 Section 2. Subsections (2) and (5) of section 658.33, 47 Florida Statutes, are amended to read: 48 658.33 Directors, number, qualifications; officers.— 49 (2) Not less than a majority of the directors must, during 50 their whole term of service, be citizens of the United States, 51 and at least a majority three-fifthsof the directors must have 52 resided in this state for at least 1 year preceding their 53 election and must be residents therein during their continuance 54 in office. In the case of a bank or trust company with total 55 assets of less than $150 million, at least one, and in the case 56 of a bank or trust company with total assets of $150 million or 57 more, two of the directors who are not also officers of the bank 58 or trust company must have had at least 1 year of direct 59 experience as an executive officer, regulator, or director of a 60 financial institution within the last 5 3years. 61 (5) The president, chief executive officer, or any other 62 person, regardless of title, who has equivalent rank or leads 63 the overall operations of a bank or trust company must have had 64 at least 1 year of direct experience as an executive officer, 65 director, or regulator of a financial institution within the 66 last 5 3years. This requirement may be waived by the office 67 after considering the overall experience and expertise of the 68 proposed officer and the condition of the bank or trust company, 69 as reflected in the most recent regulatory examination report 70 and other available data. 71 Section 3. Subsection (6) of section 658.67, Florida 72 Statutes, is amended to read: 73 658.67 Investment powers and limitations.—A bank may invest 74 its funds, and a trust company may invest its corporate funds, 75 subject to the following definitions, restrictions, and 76 limitations: 77 (6) INVESTMENTS IN CORPORATIONS AND OTHER ENTITIES.—Except 78 as limited or prohibited by federal law, Up to an aggregate of79 10 percent of the total assets ofa bank may invest be invested80 in the stock, obligations, and orother securities of subsidiary 81 corporations and affiliates. The aggregate of such investments 82 may not exceed 10 percent of the total assets of the bank. or83 other corporations or entities, except as limited or prohibited84 by federal law, and except thatDuring the first 3 years of 85 existence of a bank, such investments are limited to 5 percent 86 of the total assets of the bank. The commission by rule, or the 87 office by order, may further limit any type of investment made 88 pursuant to this subsection if it finds that such investment 89 would constitute an unsafe or unsound practice. 90 Section 4. This act shall take effect July 1, 2018.