H-3874              _______________________________________________

                                                   HOUSE BILL NO. 2648

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Dellwo, Locke, Zellinsky, Prince and Wineberry

Read first time 1/17/90 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to mutual savings banks; and amending RCW 32.08.142 and 32.16.070.

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

        Sec. 1.  Section 10, chapter 86, Laws of 1981 as amended by section 3, chapter 56, Laws of 1985 and RCW 32.08.142 are each amended to read as follows:

          Notwithstanding any restrictions, limitations, and requirements of law except RCW 32.16.070(2), in addition to all powers, express or implied, that a mutual savings bank has under the laws of this state, a mutual savings bank shall have the powers and authorities of federal mutual savings banks formed under the provisions of 12 U.S.C. Sec. 1464.

          The restrictions, limitations, and requirements applicable to specific powers or authorities of federal mutual savings banks shall apply to mutual savings banks exercising those powers or authorities permitted under this section but only insofar as the restrictions, limitations, and requirements relate to exercising the powers or authorities granted mutual savings banks solely under this section.

        Sec. 2.  Section 32.16.070, chapter 13, Laws of 1955 and RCW 32.16.070 are each amended to read as follows:

          (1) A trustee of a savings bank shall not

          (a) Have any interest, direct or indirect, in the gains or profits of the savings bank, except to receive dividends (i) upon the amounts contributed by him  or her to the guaranty fund and the expense fund of the savings bank as provided in RCW 32.08.090 and 32.08.100, and (ii) upon any deposit he or she may have in the bank, the same as any other depositor and under the same regulations and conditions.

          (b) Become a member of the board of directors of a bank, trust company, or national banking association of which board enough other trustees of the savings bank are members to constitute with him or her a majority of the board of trustees.

          (2) Neither a trustee nor an officer of a savings bank shall

          (a) For himself or herself or as agent or partner of another, directly or indirectly use any of the funds or deposits held by the savings bank, except to make such current and necessary payments as are authorized by the board of trustees.

          (b) Receive directly or indirectly and retain for his or her own use any commission on or benefit from any loan made by the savings bank, or any pay or emolument for services rendered to any borrower from the savings bank in connection with such loan, except as authorized by RCW 32.16.050.

          (c) Become an indorser, surety, or guarantor, or in any manner an obligor, for any loan made by the savings bank.

          (d) For himself or herself or as agent or partner of another, directly or indirectly borrow any of the funds or deposits held by the savings bank, or become the owner of real property upon which the savings bank holds a mortgage.  A loan to or a purchase by a corporation in which he or she is a stockholder to the amount of fifteen percent of the total outstanding stock, or in which he or she and other trustees of the savings bank hold stock to the amount of twenty-five percent of the total outstanding stock, shall be deemed a loan to or a purchase by such trustee or officer within the meaning of this section, except when the loan to or purchase by such corporation occurred without his or her knowledge or against his or her protest.  A deposit in a bank shall not be deemed a loan within the meaning of this section.