HB0216 - Bank holding companies-amendments.
|
2001 |
State of Wyoming |
01LSO-0382 |
HOUSE BILL NO. HB0216
Bank holding companies-amendments.
Sponsored by: Representative(s) Law, Nicholas and Slater
and Senator(s)
Hawks and Larson
A BILL
for
1 AN ACT relating to
banking; revising various banking
2 statutes
to include bank holding companies as specified;
3
modifying provisions relating to bank holding companies;
4
making technical and conforming amendments; and providing
5 for
an effective date.
6
7 Be It Enacted by the Legislature of the State of Wyoming:
8
9 Section
1. W.S.
13-2-304(b), 13-3-102,
10 13-3-202(a)(intro) and (x)(B), 13-3-204(a)(i)
and (ii),
11 13-9-201(a) and (b), 13-9-203, 13-9-307(a)(i)(B)(I),
(II)
12 and (vii), 13-9-308(b)(iii), 13-9-309(c),
13-10-107(c),
13 13-10-203(a) and 13-10-204(b) are
amended to read:
14
15 13-2-304. Transfer of stock and other
ownership
16 interests.
Page 1
1
2 (b) Transfers
of stock voting
ownership interests of
3 a
bank or of a bank holding company shall be reported to
4 the
state banking commissioner not less than
ten (10) days
5
prior to being made if the transfer:
6
7 (i) Equals or
exceeds ten percent (10%) of the
8
bank's or the bank holding
company's outstanding shares
10
11 (ii) Is made to
a person owning or controlling
12 ten percent (10%) or more and less than
eighty percent
13 (80%) of the bank's or the bank holding company's
14 outstanding
shares voting ownership interests.
15
16 13-3-102. Loans to executive officers,
directors,
17 principal shareholders or others with ownership interests.
18
19 No bank shall loan any of its funds to
executive officers,
20 directors or to any person owning or
controlling ten
21 percent (10%) or more of the bank's outstanding stock or of
the stock of a
holding company of the bank or its bank
23 holding company's
voting ownership interests, or to any
24 firm or
corporation person in which its any of the
Page 2
1 executive
officers, or directors
or such principal
shareholders owners or controllers are interested except
3 upon
the written application of the person, firm or
company
5 board
of directors. The approval of the loan, if allowed,
6
shall be made a part of the records of the directors'
7
meeting.
8
9 13-3-202. Investment in stock of other corporations.
10
11 (a) No state bank shall invest any of its assets in
12 the capital stock of any other corporation
except as
13 follows:
14
15 (x) In the
stock of a bank engaged exclusively
16 in providing services to state or national
banks or their
17 subsidiary corporations, bank holding
companies or their
18 subsidiary corporations, or other financial
institutions,
19 hereinafter referred to as a "banker's
bank," subject to
20 the following limitations:
21
22 (B) The
investing state bank or holding
company
may not invest in a banker's bank more than ten
Page 3
1 percent
(10%) of its capital stock and paid in and
2
unimpaired surplus.
3
4 13-3-204. Operating subsidiaries;
application; fee;
5 new activities.
6
7 (a) With prior
written approval of the commissioner,
8 a
bank may purchase for its own account the stock in a
9
corporation to perform functions that are authorized for
10 the bank or that are usual or incidental to
the business of
11 banking, subject to the following
conditions:
12
13 (i) The bank
shall own or control eighty percent
14 (80%) or more of the voting stock of the
subsidiary
15 corporation;
16
17 (ii) No officer,
director or shareholder of the
18 bank or any
person in a substantially similar controlling
19 or governing
position of the bank’s its bank holding
20 company shall otherwise have a direct or
indirect pecuniary
21 interest in the subsidiary corporation;
22
23 13-9-201. Examination; fee.
24
Page 4
1 (a) Each corporation or individual bank holding
2 company owning or acquiring
the controlling interest of a
3 state bank is subject to the inspection of the state
banking commissioner. The state banking commissioner or a
5 duly
appointed examiner shall visit the offices of the
6 corporation or individual bank holding company whenever the
7 state banking commissioner feels it is necessary
or
8 expedient
and make a complete and careful examination of
9 the
conditions and resources of the corporation or
individual bank holding company, the mode of managing its
11 affairs and conducting its business and the
safety and
12 prudence of its management as it relates to
the policies of
13 the banks which it controls.
14
15 (b) The state banking commissioner shall collect from
16 every corporation
or individual bank holding company
17 subject to this section an amount equal to
the total cost
18 of the examination and all actual and
necessary expenses.
19 The fees and expenses collected shall be
remitted to the
20 state treasurer as collected and credited to
the financial
21 institutions administration account within
the earmarked
22 revenue fund. Expenditures shall be made
from the account
23 by warrants drawn by the state auditor, upon
vouchers
24 issued and signed by the director or
commissioner. Funds
Page 5
1
from the account shall be expended only to carry out the
2
duties of the commissioner or the state banking board.
3
4 13-9-203. Financial responsibility.
5
6 The
state banking commissioner shall examine
the capital
7 and other ownership structure of each corporation or
individual bank
holding company subject to W.S. 13-9-201
9 and
shall require the same degree of financial
10 responsibility of the corporation or individual bank
11 holding company
required by this act of the bank
12 controlled.
13
14 13-9-307. Definitions.
15
16 (a) For purposes of this article:
17
18 (i) "Acquire" means:
19
20 (B) For a
company to assume direct or
21 indirect ownership or control of:
22
23 (I) More than
twenty-five percent
24 (25%) of any class of voting shares ownership
interests of
Page 6
1 a
bank holding company or a bank, if the acquiring company
2 was
not a bank holding company prior to the acquisition;
3
4 (II) More than
five percent (5%) of
5 any
class of voting shares ownership interests of a bank
6
holding company or a bank, if the acquiring company was a
7
bank holding company prior to the acquisition; or
8
9 (vii) "Company"
has the meaning set forth in the
Bank
Holding Company Act, 12 U.S.C. section 1841(b) and
includes
a bank holding company same meaning as
"bank
12 holding
company" as defined in W.S. 13-1-101;
13
14 13-9-308. Permitted acquisitions.
15
16 (b) The
prohibition in subsection (a) of this section
17 shall not apply where the acquisition is
made:
18
19 (iii) In a
transaction in which a bank forms its
20 own bank holding company, if the ownership
rights of the
21 former bank shareholders are substantially
similar to those
22 of the shareholders
holders of the ownership interests
of
23 the new bank holding company.
24
Page 7
1 13-9-309. Required application; fees.
2
3 (c) If the
applicant is an out-of-state bank holding
4
company that is not incorporated or otherwise
formed under
5 the
laws of this state, it shall submit with the
6
application proof that the applicant has complied with any
7
applicable requirements of W.S. 17-16-1503,
17-16-1506 and
17-16-1507 title 17.
9
10 13-10-107. Failure to report or
cooperate with state
11 banking commissioner.
12
13 (c) Any
officer, director or employee of a bank who
14 willfully and knowingly fails to report any
transfer of
15 ownership
interests of the bank or of its
bank holding
16 company stock to
the state banking commissioner as
required
17 by this act is guilty of a misdemeanor
punishable by a fine
18 of not less than five hundred dollars
($500.00) nor more
19 than one thousand dollars ($1,000.00),
imprisonment for not
20 less than six (6) months nor more than one
(1) year, or
21 both.
22
Page 8
1 13-10-203. Cease and desist orders;
Wyoming financial
2 institutions; bank holding
companies notice; opportunity
3 for hearing.
4
5 (a) After
notice and opportunity for hearing, the
6
commissioner shall issue a final cease and desist order to
7 a
Wyoming financial institution if the Wyoming financial
8
institution or any officer, director, employee or agent of
9 the
institution is violating or is about to violate any
10 state statute or rule relating to financial
institutions or
11 is engaging or is about to engage in an
unauthorized or
12 unsafe and unsound practice. After notice
and opportunity
13 for hearing, the commissioner shall issue a
final cease and
14 desist order to a bank holding company if
the bank holding
15 company or any officer, director, manager, employee or
16 agent of the bank
holding company is violating or is about
17 to violate any state or federal statute or
rule relating to
18 bank holding companies or is engaging or is
about to engage
19 in an unauthorized or unsafe and unsound
practice relating
20 to Wyoming financial institutions owned or
controlled by
21 the bank holding company.
22
23 13-10-204. Temporary cease and desist
order; Wyoming
24 financial institutions; bank holding companies; service.
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1
2 (b) If the
commissioner believes the actions of a
3
bank holding company or of any officer, director, manager,
4
employee or agent of the bank holding
company pose an
5
immediate threat to the safety and soundness of a Wyoming
6
financial institution owned or controlled by the holding
7
company or to the interests of the depositors, creditors or
8
shareholders of the financial institution, the commissioner
9 may
issue a temporary cease and desist order to the bank
10 holding company pending final action on the
proposed cease
11 and desist order issued pursuant to W.S. 13-10-203.
12
13 Section 2. This act is effective July 1, 2001.
14
15 (END)
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