HOUSE BILL REPORT

HB 476

BYRepresentatives Lux, Chandler and P. King 

Revising regulations for banks and banking activities.

House Committe on Financial Institutions & Insurance

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (13)

     Signed by Representatives Lux, Chair; Zellinsky, Vice Chair; Betrozoff, Chandler, Day, Dellwo, Ferguson, P. King, Meyers, Niemi, Nutley, Silver and Winsley.

House Staff:John Conniff (786-7119)

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

MARCH 4, 1987

BACKGROUND:

In 1981, in response to loss of deposits by financial institutions to money market mutual funds as a result of federal limitations on interest rates for savings accounts, the legislature authorized all state financial institutions to pay interest on deposit accounts. The federal limitations have since been removed and financial institutions are federally authorized to pay interest on deposit accounts without limitation as to interest paid on such accounts.

SUMMARY:

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

Technical amendments are made to the bank code to conform with the interstate banking provisions adopted in 1985.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The provisions authorizing banks to limit the liability of officers and directors, permitting banks to engage in the securities business, and the emergency clause are removed.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     None Presented.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     None Presented.

House Committee - Testimony Against: None Presented.