S-4660               _______________________________________________

                                                   SENATE BILL NO. 6833

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senators von Reichbauer, Moore, Sellar and Fleming

Read first time 1/30/90 and referred to Committee on  Financial Institutions & Insurance.

AN ACT Relating to industrial loan companies; amending RCW 31.04.220; and prescribing penalties.

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

        Sec. 1.  Section 19, chapter 172, Laws of 1923 as amended by section 6, chapter 312, Laws of 1981 and RCW 31.04.220 are each amended to read as follows:

          (1) Every officer, director, agent, stockholder, or employee of a corporation under the provisions of this chapter who shall fraudulently receive money or money's worth in exchange for the issuance of any choses in action of such corporation, when he knows or has good reason to believe that such corporation is insolvent shall be deemed guilty of a felony, and punished upon conviction, thereof, by a fine not exceeding one thousand dollars, or imprisoned in the state penitentiary not exceeding ten years, or both such fine and imprisonment, at the discretion of the court.

          (2) Every officer, director, agent, stockholder, or employee of a corporation under the provisions of this chapter, who shall directly or indirectly, receive a bonus, commission, compensation, remuneration, gift, speculative interest or gratuity of any kind from any person, firm, or corporation for granting, procuring or endeavoring to procure, for any person, firm or corporation, any loan by or out of the funds of such corporation, or the purchase or sale of any securities or property for or on account of such corporation, shall be guilty of a felony.

          (3) Every officer, director or employee of such corporation who shall borrow or shall knowingly permit any of its officers, directors or employees to borrow any of its funds in violation of the provisions of this chapter, shall be personally liable for any loss or damages which the corporation, its shareholders or any person may sustain in consequence thereof, and shall also be guilty of a felony.

          (4) Every corporation under the provisions of this chapter, which fails to file any report, required to be filed by this chapter within the time herein specified shall be subject to a penalty of fifty dollars per day for each day's delay‑-a civil action for the recovery of any such penalty may be brought by the attorney general in the name of the state.

          (5) Every person who shall willfully and knowingly violate, or willfully and knowingly aid or abet the violation of ((any provision of this chapter; for which no penalty has been prescribed,)) RCW 31.04.090, 31.04.095, or 31.04.100, or any related rule of the supervisor of banking adopted pursuant to this chapter, and every person who willfully and knowingly fails to perform any act which it is made his or her duty to perform ((herein and for which failure no penalty has been prescribed)) under the provisions of RCW 31.04.090, 31.04.095, or 31.04.100, or any related rule of the supervisor of banking adopted pursuant to this chapter, shall be guilty of a misdemeanor.  No person who has been convicted for the violation of the banking laws of this or any other state, or of the United States shall be permitted to engage in, or become an officer or official of any corporation organized under the provisions of this chapter.