FINAL BILL REPORT

SHB 476

                                  C 420 L 87

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Lux, Chandler and P. King) 

Revising regulations for banks and banking activities.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions

SYNOPSIS AS ENACTED

BACKGROUND:

Directors of banks are required to meet at least once a month.

In 1981, the legislature authorized all state chartered financial institutions to pay interest on deposit accounts.  At that time, federal law limited the interest that could be paid on savings accounts and prohibited interest payments on other types of accounts.  The federal limitations have since been removed and all financial institutions are authorized to pay interest on deposit accounts without limitation.

In 1986, the legislature created the Washington Land Bank to provide credit to farmers and ranchers.  The act did not contain provisions for examination and oversight by the state supervisor of banking.

SUMMARY:

Directors of banks are no longer required to meet at least monthly but must meet at least quarterly.

Provisions authorizing the payment of interest on deposit accounts are repealed.

The State Land Bank Act is amended to grant the supervisor of banking broad regulatory authority to examine and monitor the bank for solvency.  These provisions parallel the regulatory powers of the supervisor in overseeing other state banks.

VOTES ON FINAL PASSAGE:

      House 94   1

      Senate    49     0(Senate amended)

      House 95   2(House concurred)

EFFECTIVE:July 26, 1987