House Bill 1735c1

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    Florida House of Representatives - 2000             CS/HB 1735

        By the Committee on Financial Services and Representative
    C. Green





  1                      A bill to be entitled

  2         An act relating to banking; providing

  3         legislative intent; specifying certain deposits

  4         as pay-on-death designated accounts under

  5         certain circumstances; amending s. 658.12,

  6         F.S.; revising a definition of banker's bank;

  7         amending s. 658.165, F.S.; providing criteria

  8         for formation of a banker's bank; providing

  9         application; amending s. 658.34, F.S.; revising

10         a condition for the issuance of authorized but

11         unissued bank or trust company capital stock;

12         repealing s. 655.81, F.S., relating to deposits

13         in trust; providing effective dates.

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15  Be It Enacted by the Legislature of the State of Florida:

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17         Section 1.  (1)  Because deposits in trust are also

18  accounts with a pay-on-death designation as described in s.

19  655.82, Florida Statutes, it is the intent of the Legislature

20  that the provisions of s. 655.82, Florida Statutes, shall

21  apply to and govern deposits in trust. References to s.

22  655.81, Florida Statutes, in any depository agreement shall be

23  interpreted after the effective date of this act as references

24  to s. 655.82, Florida Statutes.

25         (2)  This section shall take effect July 1, 2000, and

26  shall apply to deposits made to a depository account created

27  after December 31, 1994.

28         Section 2.  Subsection (3) of section 658.12, Florida

29  Statutes, is amended to read:

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    Florida House of Representatives - 2000             CS/HB 1735

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  1         658.12  Definitions.--Subject to other definitions

  2  contained in the financial institutions codes and unless the

  3  context otherwise requires:

  4         (3)  "Banker's bank" means a bank insured by the

  5  Federal Deposit Insurance Corporation, or a holding company

  6  which owns or controls such an insured bank, when the stock of

  7  such bank or holding company is owned exclusively by other

  8  banks and such bank or holding company and all subsidiaries

  9  thereof are engaged exclusively in providing services for

10  other financial depository institutions and their officers,

11  directors, and employees.

12         Section 3.  Subsection (4) of section 658.165, Florida

13  Statutes, is renumbered as subsection (6), and subsections (4)

14  and (5) are added to said section, to read:

15         658.165  Banker's banks; formation; applicability of

16  financial institutions codes; exceptions.--

17         (4)  A banker's bank may provide services at the

18  request of financial institutions in organizations that have:

19         (a)  Received conditional regulatory approval from the

20  department in the case of a state bank or preliminary approval

21  from the Office of the Comptroller of the Currency in the case

22  of a national bank.

23         (b)  Filed articles of incorporation pursuant to s.

24  658.23 in the case of a state bank, or filed acceptable

25  articles of incorporation and an organization certificate in

26  the case of a national bank.

27         (c)  Received capital funds in an amount not less than

28  the minimum capitalization required in any notice of or order

29  granting conditional regulatory approval.

30         (5)  A banker's bank may provide services to the

31  organizers of a proposed financial institution that has not

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    Florida House of Representatives - 2000             CS/HB 1735

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  1  received conditional regulatory approval; provided that such

  2  services are limited to the financing of the expenses of

  3  organizing such financial institution and expenses relating to

  4  the acquisition or construction of the institution's proposed

  5  operating facilities and associate fixtures and equipment.

  6         (6)(4)  If the department finds that any provision of

  7  this chapter is inconsistent with the purpose for which a

  8  banker's bank is organized and that the welfare of the public

  9  or any financial institution would not be jeopardized thereby,

10  it may by rule or order exempt a banker's bank from such

11  provision or limit the application thereof.

12         Section 4.  Paragraph (b) of subsection (4) of section

13  658.34, Florida Statutes, is amended to read:

14         658.34  Shares of capital stock.--

15         (4)  With the approval of the department, a bank or

16  trust company may issue less than all the number of shares of

17  any of its capital stock authorized by its articles of

18  incorporation. Such authorized but unissued shares may be

19  issued only for the following purposes:

20         (b)  To declare or pay a stock dividend, however any

21  such stock dividend shall comply with the provisions of this

22  section and s. 658.37 with the approval of the department.

23         Section 5.  Effective July 1, 2000, section 655.81,

24  Florida Statutes, is repealed.

25         Section 6.  Except as otherwise provided herein, this

26  act shall take effect upon becoming a law.

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