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ENGROSSED SUBSTITUTE HOUSE BILL NO. 341
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AS AMENDED BY THE SENATE
C 498 L 87
State of Washington 50th Legislature 1987 Regular Session
By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Dellwo, Nutley, Chandler, Silver, Lux, Meyers, P. King, Ferguson, Betrozoff, C. Smith and May)
Read first time 3/6/87 and passed to Committee on Rules.
AN ACT Relating to banks and banking; amending RCW 30.04.900; adding a new section to chapter 30.04 RCW; and repealing RCW 30.04.200.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 30.04 RCW to read as follows:
(1) A bank or trust company, alone or in conjunction with other entities, may form, incorporate, or invest in corporations or other entities, whether or not such other corporation or entity is related to the bank or trust company's business. The aggregate amount of funds invested, or used in the formation of corporations or other entities under this section shall not exceed ten percent of the assets or fifty percent of the net worth, whichever is less, of the bank or trust company. For purposes of this subsection, "net worth" means the aggregate of capital, surplus, undivided profits, and all capital notes and debentures which are subordinate to the interest of depositors.
(2) A bank or trust company may engage in an activity permitted under this section only with the prior authorization of the supervisor. In approving or denying a proposed activity, the supervisor shall consider the financial and management strength of the institution, the convenience and needs of the public, and whether the proposed activity should be conducted through a subsidiary or affiliate of the bank. The supervisor may not authorize under this section and no bank or trust company may act as an insurance or travel agent unless otherwise authorized by state statute.
Sec. 2. Section 54, chapter 279, Laws of 1986 and RCW 30.04.900 are each amended to read as follows:
(1) The ((supervisor
of banking)) director of general administration shall study the
financial institution structure in the state and report to the governor and the
appropriate standing committees of the house of representatives and the senate
on changes which should be made to enable ((commercial banks)) state
chartered financial institutions to remain safe and sound and yet be
competitive with other federally chartered and nonchartered financial
institutions. In conducting the study the ((supervisor)) director
shall consider:
(a) The
powers which ((commercial banks)) financial institutions under
state regulatory authority should be entitled to exercise;
(b) The
level of supervision that is necessary to assure safe and sound ((commercial
banks)) financial institutions without unnecessarily restricting the
operation of the institutions;
(c) Whether
the distinction ((between)) among commercial banks, savings
banks, and savings and loan associations should be retained, and if so, whether
there should continue to be differences in their powers;
(d) The
general corporate powers that should be authorized for ((banking
corporations)) financial institutions; and
(e) Any
other matters deemed by the ((supervisor)) director to be
relevant.
(2) The ((supervisor))
director, in conducting the study required by subsection (1) of this
section shall consult with the supervisor of banking, with the supervisor of
savings and loans and with representatives from all types of financial
institutions, including large and small, urban and rural, commercial banks,
savings banks, and savings and loan associations and credit unions. The
((supervisor)) director shall also advise the appropriate
standing committees of the house of representatives and the senate of all
meetings held to consider the study conducted under this section.
(3) The ((supervisor
of banking)) director shall submit the report required by subsection
(1) of this section not later than November 1, 1987. ((A progress report
shall be submitted to the governor and the respective standing committees of
the house of representatives and the senate not later than December 1, 1986.))
NEW SECTION. Sec. 3. Section 30.04.200, chapter 33, Laws of 1955 and RCW 30.04.200 are each repealed.