S-4014               _______________________________________________

                                                   SENATE BILL NO. 4799

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senators Barr, Hansen, Benitz and Bailey

Read first time 1/23/86 and referred to Committee on Agriculture.

AN ACT Relating to a state land bank; amending RCW 30.04.020; adding a new section to chapter 19.52 RCW; and adding a new section to chapter 43.19 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 43.19 RCW to read as follows:

          The director of general administration, by rule, shall establish a state land bank.  The state land bank shall be patterned after the federal land bank, within state constitutional limits, subject to the following:

          (1)  The director shall allow persons to organize cooperative associations for the purpose of loaning money on real estate. To the extent applicable, chapter 24.32 RCW applies to the formation of the cooperative associations.

          (2)  The director shall provide that the cooperatives may join together in a central land bank whose board of directors is directly elected by the members or stockholders of its constituent associations.

          (3)  Loans shall not exceed sixty-five percent of the value of the land.  Loans shall be made based on long-term profitability rather than short-term cash flow.

          (4)  Over the first five years of any loan, a borrower may borrow the payments due from the borrower.  Any payments borrowed under this subsection shall be added to the amount of the loan outstanding.

NEW SECTION. Sec. 2.  A new section is added to chapter 19.52 RCW to read as follows:

          The provisions of this chapter do not apply to loans made under section 1 of this act by the state land bank or its cooperative associations.

        Sec. 3.  Section 30.04.020, chapter 33, Laws of 1955 as last amended by section 2, chapter 42, Laws of 1983 and RCW 30.04.020 are each amended to read as follows:

          The name of every bank shall contain the word "bank" and the name of every trust company shall contain the word "trust," or the word "bank."  Except as provided in RCW 33.08.030, no person except:

          (1) A national bank;

          (2) A bank or trust company authorized by the laws of this state;

          (3) A bank established under section 1 of this 1986 act;

(4) A foreign corporation authorized by this title so to do, shall,

          (a) Use as a part of his or its name or other business designation or in any manner as if connected with his or its business or place of business any of the following words or the plural thereof, to wit:  "bank," "banking," "banker," "trust."

          (b) Use any sign at or about his or its place of business or use or circulate any advertisement, letterhead, billhead, note, receipt, certificate, blank, form, or any written or printed or part written and part printed paper, instrument or article whatsoever, directly or indirectly indicating that the business of such person is that of a bank or trust company.

          This section shall not prevent a lender approved by the United States secretary of housing and urban development for participation in any mortgage insurance program under the National Housing Act from using the words "mortgage banker" or "mortgage banking" in the conduct of its business, but only if both words are used together in either of the forms which appear in quotations in this sentence.

          Every person who, and every director and officer of every corporation which, to the knowledge of such director or officer violates any provision of this section shall be guilty of a gross misdemeanor.