House Bill 4007c1
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Florida House of Representatives - 2000 CS/HB 4007
By the Committees on Financial Services, Rules & Calendar
and Representative Bitner
1 A bill to be entitled
2 An act relating to the Florida Statutes;
3 repealing or deleting various statutory
4 provisions that have become obsolete, have had
5 their effect, have served their purpose, or
6 have been impliedly repealed or superseded;
7 amending s. 288.99, F.S.; reiterating a
8 deadline for certification as a certified
9 capital company; deleting obsolete provisions
10 relating to applying for certification as a
11 certified capital company and for an allocation
12 of premium tax credits for potential investors;
13 amending s. 494.008, F.S.; updating an obsolete
14 cross reference relating to administrative
15 penalties and fines; repealing s. 495.171,
16 F.S., relating to the effective date of the
17 1967 revision of ch. 495, F.S., relating to
18 registration of trademarks and service marks,
19 and the repeal of former provisions; amending
20 s. 497.002, F.S.; deleting findings relating to
21 the need to regulate funeral and cemetery
22 services; repealing s. 606.01(1), F.S.,
23 relating to findings on the need for the
24 Florida Business Coordination Act; repealing s.
25 620.9901(1) and (3), F.S., relating to
26 applicability of the Revised Uniform
27 Partnership Act of 1995 over a specified
28 period; repealing ch. 622, F.S., relating to
29 foreign unincorporated associations; amending
30 s. 220.03, F.S.; correcting a cross reference,
31 to conform; repealing s. 657.067, F.S.,
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1 relating to requirements for approval for
2 conversion of credit unions from federal to
3 state charter; repealing pt. II, ch. 657, F.S.,
4 the Florida Credit Union Guaranty Corporation
5 Act; amending ss. 655.057, 657.001, 657.002,
6 657.005, 657.008, 657.021, 657.026, 657.031,
7 657.0315, 657.038, 657.039, 657.043, 657.062,
8 657.063, 657.064, 657.065, 657.066, and
9 657.068, F.S.; revising or deleting references,
10 to conform; amending s. 716.02, F.S.; deleting
11 obsolete provisions relating to escheat of
12 funds in the possession of any federal court in
13 and for any district within this state;
14 repealing s. 717.137, F.S., relating to the
15 effect and application of the 1987 revision of
16 ch. 717, F.S., relating to disposition of
17 unclaimed property; providing an effective
18 date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsections (4) and (7) and paragraph (c)
23 of subsection (10) of section 288.99, Florida Statutes, are
24 amended to read:
25 288.99 Certified Capital Company Act.--
26 (4) CERTIFICATION; GROUNDS FOR DENIAL OR
27 DECERTIFICATION.--
28 (a) To operate as a certified capital company, a
29 corporation, partnership, or limited liability company must be
30 certified by the department by December 31, 1998, pursuant to
31
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1 this act and must be registered and maintain an active status
2 with the Department of State as required by law.
3 (b) An applicant for certification as a certified
4 capital company must file a verified application with the
5 department on or before December 1, 1998, in a form which the
6 department may prescribe by rule. The applicant shall submit
7 a nonrefundable application fee of $7,500 to the department.
8 The applicant shall provide:
9 1. The name of the applicant and the address of its
10 principal office and each office in this state.
11 2. The applicant's form and place of organization and
12 the relevant organizational documents, bylaws, and amendments
13 or restatements of such documents, bylaws, or amendments.
14 3. Evidence from the Department of State that the
15 applicant is registered with the Department of State as
16 required by law, maintains an active status with the
17 Department of State, and has not been dissolved or had its
18 registration revoked, canceled, or withdrawn.
19 4. The applicant's proposed method of doing business.
20 5. The applicant's financial condition and history,
21 including an audit report on the financial statements prepared
22 in accordance with generally accepted accounting principles
23 showing net capital of not less than $500,000 within 90 days
24 after the date the application is submitted to the department.
25 If the date of the application is more than 90 days after
26 preparation of the applicant's fiscal year-end financial
27 statements, the applicant may file financial statements
28 reviewed by an independent certified public accountant for the
29 period subsequent to the audit report, together with the
30 audited financial statement for the most recent fiscal year.
31 If the applicant has been in business less than 12 months, and
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1 has not prepared an audited financial statement, the applicant
2 may file a financial statement reviewed by an independent
3 certified public accountant.
4 (c) On December 31, 1998, the department shall grant
5 or deny certification as a certified capital company. If the
6 department denies certification within the time period
7 specified, the department shall inform the applicant of the
8 grounds for the denial. If the department has not granted or
9 denied certification within the time specified, the
10 application shall be deemed approved. The department shall
11 approve the application if the department finds that:
12 1. The applicant satisfies the requirements of
13 paragraph (b).
14 2. No evidence exists that the applicant has committed
15 any act specified in paragraph (d).
16 3. At least two of the principals have a minimum of 5
17 years of experience making venture capital investments out of
18 private equity funds, with not less than $20 million being
19 provided by third-party investors for investment in the early
20 stage of operating businesses. At least one full-time manager
21 or principal of the certified capital company who has such
22 experience must be primarily located in an office of the
23 certified capital company which is based in this state.
24 (b)(d) The department may deny certification or
25 decertify a certified capital company if the grounds for
26 decertification are not removed or corrected within 90 days
27 after the notice of such grounds is received by the certified
28 capital company. The department may deny certification or
29 decertify a certified capital company if the certified capital
30 company fails to maintain a net worth of at least $500,000, or
31
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1 if the department determines that the applicant, or any
2 principal or director of the certified capital company, has:
3 1. Violated any provision of this section;
4 2. Made a material misrepresentation or false
5 statement or concealed any essential or material fact from any
6 person during the application process or with respect to
7 information and reports required of certified capital
8 companies under this section;
9 3. Been convicted of, or entered a plea of guilty or
10 nolo contendere to, a crime against the laws of this state or
11 any other state or of the United States or any other country
12 or government, including a fraudulent act in connection with
13 the operation of a certified capital company, or in connection
14 with the performance of fiduciary duties in another capacity;
15 4. Been adjudicated liable in a civil action on
16 grounds of fraud, embezzlement, misrepresentation, or deceit;
17 or
18 5.a. Been the subject of any decision, finding,
19 injunction, suspension, prohibition, revocation, denial,
20 judgment, or administrative order by any court of competent
21 jurisdiction, administrative law judge, or any state or
22 federal agency, national securities, commodities, or option
23 exchange, or national securities, commodities, or option
24 association, involving a material violation of any federal or
25 state securities or commodities law or any rule or regulation
26 adopted under such law, or any rule or regulation of any
27 national securities, commodities, or options exchange, or
28 national securities, commodities, or options association; or
29 b. Been the subject of any injunction or adverse
30 administrative order by a state or federal agency regulating
31 banking, insurance, finance or small loan companies, real
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1 estate, mortgage brokers, or other related or similar
2 industries.
3 (e) The certified capital company shall file a copy of
4 its certification with the office by January 31, 1999.
5 (c)(f) Any offering material involving the sale of
6 securities of the certified capital company shall include the
7 following statement: "By authorizing the formation of a
8 certified capital company, the State of Florida does not
9 endorse the quality of management or the potential for
10 earnings of such company and is not liable for damages or
11 losses to a certified investor in the company. Use of the
12 word 'certified' in an offering does not constitute a
13 recommendation or endorsement of the investment by the State
14 of Florida. Investments in a certified capital company prior
15 to the time such company is certified are not eligible for
16 premium tax credits. If applicable provisions of law are
17 violated, the state may require forfeiture of unused premium
18 tax credits and repayment of used premium tax credits by the
19 certified investor."
20 (d)(g) No insurance company or any affiliate of an
21 insurance company shall, directly or indirectly, manage or
22 control the direction of investments of a certified capital
23 company. This prohibition does not preclude a certified
24 investor, insurance company, or any other party from
25 exercising its legal rights and remedies, which may include
26 interim management of a certified capital company, if a
27 certified capital company is in default of its obligations
28 under law or its contractual obligations to such certified
29 investor, insurance company, or other party.
30 (e)(h) On or before December 31 of each year, each
31 certified capital company shall pay to the department an
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1 annual, nonrefundable renewal certification fee of $5,000. No
2 renewal fees shall be required within 6 months after the date
3 of initial certification.
4 (f)(i) The department shall administer and provide for
5 the enforcement of certification requirements for certified
6 capital companies as provided in this act. The department may
7 adopt any rules necessary to carry out its duties,
8 obligations, and powers related to certification, renewal of
9 certification, or decertification of certified capital
10 companies and may perform any other acts necessary for the
11 proper administration and enforcement of such duties,
12 obligations, and powers.
13 (g)(j) Decertification of a certified capital company
14 under this subsection does not affect the ability of certified
15 investors in such certified capital company from claiming
16 future premium tax credits earned as a result of an investment
17 in the certified capital company during the period in which it
18 was duly certified.
19 (7) ANNUAL TAX CREDIT; MAXIMUM AMOUNT; ALLOCATION
20 PROCESS.--
21 (a) The total amount of tax credits which may be
22 allocated by the office shall not exceed $150 million. The
23 total amount of tax credits which may be used by certified
24 investors under this act shall not exceed $15 million
25 annually.
26 (b) The office shall be responsible for allocating
27 premium tax credits as provided for in this act to certified
28 capital companies.
29 (c) Each certified capital company must apply to the
30 office for an allocation of premium tax credits for potential
31 certified investors by March 15, 1999, on a form developed by
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1 the office with the cooperation of the Department of Revenue.
2 The form shall be accompanied by an affidavit from each
3 potential certified investor confirming that the potential
4 certified investor has agreed to make an investment of
5 certified capital in a certified capital company up to a
6 specified amount, subject only to the receipt of a premium tax
7 credit allocation pursuant to this subsection. No allocation
8 shall be made to the potential investors of a certified
9 capital company unless such certified capital company has
10 filed premium tax allocation claims that would result in an
11 allocation to the potential investors in such certified
12 capital company of not less than $15 million in the aggregate.
13 (d) On or before April 1, 1999, the office shall
14 inform each certified capital company of its share of total
15 premium tax credits available for allocation to each of its
16 potential investors.
17 (c)(e) If a certified capital company does not receive
18 certified capital equaling the amount of premium tax credits
19 allocated to a potential certified investor for which the
20 investor filed a premium tax allocation claim within 10
21 business days after the investor received a notice of
22 allocation, the certified capital company shall notify the
23 office by overnight common carrier delivery service of the
24 company's failure to receive the capital. That portion of the
25 premium tax credits allocated to the certified capital company
26 shall be forfeited. If the office must make a pro rata
27 allocation under paragraph (d) (f), the office shall
28 reallocate such available credits among the other certified
29 capital companies on the same pro rata basis as the initial
30 allocation.
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1 (d)(f) If the total amount of capital committed by all
2 certified investors to certified capital companies in premium
3 tax allocation claims exceeds the aggregate cap on the amount
4 of credits that may be awarded, the premium tax credits that
5 may be allowed to any one certified investor shall be
6 allocated using the following ratio:
7
8 A/B = X/$150,000,000
9
10 where the letter "A" represents the total amount of certified
11 capital certified investors have agreed to invest in any one
12 certified capital company, the letter "B" represents the
13 aggregate amount of certified capital that all certified
14 investors have agreed to invest in all certified capital
15 companies, the letter "X" is the numerator and represents the
16 total amount of premium tax credits and certified capital that
17 may be allocated to a certified capital company in calendar
18 year 1999, and $150 million is the denominator and represents
19 the total amount of premium tax credits and certified capital
20 that may be allocated to all certified investors in calendar
21 year 1999. Any such premium tax credits are not first
22 available for utilization until annual filings are made in
23 2001 for calendar year 2000, and the tax credits may be used
24 at a rate not to exceed 10 percent annually.
25 (e)(g) The maximum amount of certified capital for
26 which premium tax allocation claims may be filed on behalf of
27 any certified investor and its affiliates by one or more
28 certified companies may not exceed $15 million.
29 (f)(h) To the extent that less than $150 million in
30 certified capital is raised in connection with the procedure
31 set forth in paragraphs (c)-(e) (c)-(g), the department may
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1 adopt rules to allow a subsequent allocation of the remaining
2 premium tax credits authorized under this section.
3 (10) DECERTIFICATION.--
4 (c) Any material violation of this section, or a
5 finding that the certified capital company or any principal or
6 director thereof has committed any act specified in paragraph
7 (4)(b)(d), shall be grounds for decertification of the
8 certified capital company. If the department determines that a
9 certified capital company is no longer in compliance with the
10 certification requirements of this act, the department shall,
11 by written notice, inform the officers of such company that
12 the company may be subject to decertification 90 days after
13 the date of mailing of the notice, unless the deficiencies are
14 corrected and such company is again found to be in compliance
15 with all certification requirements.
16 Section 2. Subsection (7) of section 494.008, Florida
17 Statutes, is amended to read:
18 494.008 Mortgages offered by land developers licensed
19 pursuant to the Florida Uniform Land Sales Practices Law;
20 requirements; prohibitions.--No mortgage loan which has a face
21 amount of $35,000 or less and is secured by vacant land
22 registered under the Florida Uniform Land Sales Practices Law,
23 chapter 498, shall be sold to a mortgagee, except a financial
24 institution, by any person unless all of the following
25 requirements are met:
26 (7) Willful failure to comply with any of the above
27 provisions shall subject the person to the penalties of s.
28 494.0041 494.05.
29 Section 3. Section 495.171, Florida Statutes, is
30 repealed.
31
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1 Section 4. Subsection (1) of section 497.002, Florida
2 Statutes, is amended to read:
3 497.002 Purpose and intent.--
4 (1) The Legislature recognizes that purchasers of
5 preneed burial rights, funeral or burial merchandise, or
6 funeral or burial services may suffer serious economic harm if
7 purchase money is not set aside for future use as intended by
8 the purchaser and that the failure to maintain cemetery
9 grounds properly may cause significant emotional stress.
10 Therefore, It is necessary in the interest of the public
11 welfare to regulate certificateholders, licensees,
12 registrants, and cemetery companies in this state. However,
13 restrictions shall be imposed only to the extent necessary to
14 protect the public from significant or discernible harm or
15 damage and not in a manner which will unreasonably affect the
16 competitive market.
17 Section 5. Subsection (1) of section 606.01, Florida
18 Statutes, is repealed.
19 Section 6. Subsections (1) and (3) of section
20 620.9901, Florida Statutes, are repealed.
21 Section 7. Sections 622.01, 622.02, 622.03, 622.04,
22 622.05, 622.06, and 622.07, Florida Statutes, are repealed.
23 Section 8. Paragraph (e) of subsection (1) of section
24 220.03, Florida Statutes, is amended to read:
25 220.03 Definitions.--
26 (1) SPECIFIC TERMS.--When used in this code, and when
27 not otherwise distinctly expressed or manifestly incompatible
28 with the intent thereof, the following terms shall have the
29 following meanings:
30 (e) "Corporation" includes all domestic corporations;
31 foreign corporations qualified to do business in this state or
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1 actually doing business in this state; joint-stock companies;
2 limited liability companies, under chapter 608; common-law
3 declarations of trust, under chapter 609; corporations not for
4 profit, under chapter 617; agricultural cooperative marketing
5 associations, under chapter 618; professional service
6 corporations, under chapter 621; foreign unincorporated
7 associations, under chapter 622; private school corporations,
8 under chapter 623; foreign corporations not for profit which
9 are carrying on their activities in this state; and all other
10 organizations, associations, legal entities, and artificial
11 persons which are created by or pursuant to the statutes of
12 this state, the United States, or any other state, territory,
13 possession, or jurisdiction. The term "corporation" does not
14 include proprietorships, even if using a fictitious name;
15 partnerships of any type, as such; limited liability companies
16 that are taxable as partnerships for federal income tax
17 purposes; state or public fairs or expositions, under chapter
18 616; estates of decedents or incompetents; testamentary
19 trusts; or private trusts.
20 Section 9. Section 657.067, Florida Statutes, is
21 repealed.
22 Section 10. Sections 657.25, 657.251, 657.252,
23 657.253, 657.254, 657.256, 657.257, 657.258, 657.259, 657.260,
24 657.261, 657.262, 657.263, 657.264, 657.265, 657.266, 657.267,
25 657.268, and 657.269, Florida Statutes, are repealed.
26 Section 11. Subsections (3) and (7) of section
27 655.057, Florida Statutes, are amended to read:
28 655.057 Records; limited restrictions upon public
29 access.--
30 (3) The provisions of this section do not prevent or
31 restrict:
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1 (a) Publishing reports required to be submitted to the
2 department pursuant to s. 655.045(2)(a) or required by
3 applicable federal statutes or regulations to be published.
4 (b) Furnishing records or information to any other
5 state, federal, or foreign agency responsible for the
6 regulation or supervision of financial institutions, including
7 Federal Home Loan Banks.
8 (c) Furnishing records or information, in the case of
9 a credit union, to the Florida Credit Union Guaranty
10 Corporation, Inc.
11 (c)(d) Disclosing or publishing summaries of the
12 condition of financial institutions and general economic and
13 similar statistics and data, provided that the identity of a
14 particular financial institution is not disclosed.
15 (d)(e) Reporting any suspected criminal activity, with
16 supporting documents and information, to appropriate law
17 enforcement and prosecutorial agencies.
18 (e)(f) Furnishing information upon request to the
19 State Treasurer regarding the financial condition of any
20 financial institution that is, or has applied to be,
21 designated as a qualified public depository pursuant to
22 chapter 280.
23
24 Any confidential information or records obtained from the
25 department pursuant to this subsection shall be maintained as
26 confidential and exempt from the provisions of s. 119.07(1).
27 (7) Materials supplied to the department or to
28 employees of any financial institution by other governmental
29 agencies, federal or state, or the Florida Credit Union
30 Guaranty Corporation, Inc., shall remain the property of the
31 submitting agency or the corporation, and any document request
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1 must be made to the appropriate agency. Any confidential
2 documents supplied to the department or to employees of any
3 financial institution by other governmental agencies, federal
4 or state, or by the Florida Credit Union Guaranty Corporation,
5 Inc., shall be confidential and exempt from the provisions of
6 s. 119.07(1). Such information shall be made public only with
7 the consent of such agency or the corporation.
8 Section 12. Section 657.001, Florida Statutes, is
9 amended to read:
10 657.001 Short title.--This chapter part may be cited
11 as the "Florida Credit Union Act."
12 Section 13. Section 657.002, Florida Statutes, is
13 amended to read:
14 657.002 Definitions.--As used in this chapter part:
15 (1) "Capital" means shares, deposits, and equity.
16 (2) "Central credit union" means a credit union the
17 membership of which includes, but is not limited to, other
18 credit unions, members of credit unions, credit union
19 employees, employees of organizations serving credit unions,
20 and the families of such members.
21 (3) "Corporate credit union" means any central credit
22 union organized pursuant to any state or federal act for the
23 purpose of serving other credit unions.
24 (4) "The corporation" means the Florida Credit Union
25 Guaranty Corporation, Inc.
26 (4)(5) "Correspondent" means that person designated on
27 an application to organize a credit union as the person to
28 whom all correspondence regarding the application should be
29 sent.
30 (5)(6) "Credit union" means any cooperative society
31 organized pursuant to this chapter part.
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1 (6)(7) "Department" means the Department of Banking
2 and Finance.
3 (7)(8) "Deposits" means that portion of the capital
4 paid into the credit union by members on which a contractual
5 rate of interest will be paid.
6 (8)(9) "Equity" means undivided earnings, reserves,
7 and allowance for loan losses.
8 (9)(10) "Foreign credit union" means a credit union
9 organized and operating under the laws of another state.
10 (10)(11) "Immediate family" means parents, children,
11 spouse, or surviving spouse of the member, or any other
12 relative by blood, marriage, or adoption.
13 (11)(12) "Limited field of membership" means the
14 defined group of persons designated as eligible for membership
15 in the credit union who:
16 (a) Have a similar profession, occupation, or formal
17 association with an identifiable purpose; or
18 (b) Reside within an identifiable neighborhood,
19 community, rural district, or county; or
20 (c) Are employed by a common employer; or
21 (d) Are employed by the credit union; and
22
23 members of the immediate family of persons within such group.
24 (12)(13) "Shares" means that portion of the capital
25 paid into the credit union by members on which dividends may
26 be paid.
27 (13)(14) "Unimpaired capital" means capital which is
28 not impaired by losses that exceed applicable reserves.
29 Section 14. Paragraph (d) of subsection (3) of section
30 657.005, Florida Statutes, is amended to read:
31
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1 657.005 Notice of intent to organize; investigation by
2 department; application for authority to organize a credit
3 union.--
4 (3) The application shall be submitted to the
5 department on forms and in the manner prescribed by rules
6 adopted by the department and shall be accompanied by a
7 nonrefundable filing fee of $250. Such application shall
8 include:
9 (d) Any information required by the department to be
10 submitted to the corporation or insuring agency.
11 Section 15. Paragraph (a) of subsection (6) of section
12 657.008, Florida Statutes, is amended to read:
13 657.008 Place of doing business.--
14 (6)(a) The department may authorize foreign credit
15 unions to establish branches in Florida if all of the
16 following criteria are met:
17 1. The state in which the foreign credit union's home
18 office is located permits Florida credit unions to do business
19 in the state under restrictions that are no greater than those
20 placed upon a domestic credit union doing business in that
21 state. For this purpose, such restrictions shall include, but
22 are not limited to, any fees, bonds, or other charges levied
23 on domestic credit unions doing business in that state.
24 2. The deposits of such foreign credit union and its
25 proposed Florida branch will be insured or guaranteed by an
26 insurer or guarantor acceptable to the department. Insurance
27 or guarantee of accounts comparable to that provided by the
28 Florida Credit Union Guaranty Corporation is deemed to be
29 acceptable; however, acceptance of insurance or guarantee of
30 accounts by any insuring or guaranteeing agencies or companies
31 shall be subject to a determination by the department that the
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1 insuring or guaranteeing agency or company is in sound
2 financial condition and that its reserves with respect to its
3 insured or guaranteed accounts are no less than those of the
4 Florida Credit Union Guaranty Corporation.
5 3. The credit union's field of membership is so
6 limited as to be within that meaning of that term as defined
7 in s. 657.002.
8 Section 16. Paragraph (e) of subsection (7) of section
9 657.021, Florida Statutes, is amended to read:
10 657.021 Board of directors; executive committee.--
11 (7) The board of directors must exercise the following
12 duties which are nondelegable:
13 (e) Adequately provide for reserves as required by
14 this chapter part or by rules or order of the department or as
15 otherwise determined necessary by the board.
16 Section 17. Section 657.026, Florida Statutes, is
17 amended to read:
18 657.026 Supervisory or audit committee.--
19 (1) There shall be a supervisory or audit committee of
20 at least three members, which may be elected by the membership
21 or appointed by the board, or the board may appoint an audit
22 committee of directors in the manner prescribed in the bylaws.
23 An officer or employee may not serve on the supervisory or
24 audit committee.
25 (2) The supervisory or audit committee may audit, or
26 cause to be audited, the financial statements of the credit
27 union to determine compliance with policy, to ensure that
28 generally accepted accounting principles are consistently
29 applied, and to ensure an adequate system of internal
30 controls.
31 (3) The supervisory or audit committee shall:
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1 (a) Make or cause to be made a comprehensive annual
2 audit of the credit union, in accordance with the rules of the
3 department.
4 (b) Make or cause to be made such supplementary audits
5 or examinations as it deems necessary or as are requested by
6 the board of directors or the department.
7 (c) Submit a report of every required audit or
8 examination within a reasonable time to the board of directors
9 with a copy to the department and, depending upon which
10 organization is applicable, a copy to the corporation or the
11 National Credit Union Administration.
12 (d) Make a summary report, to the membership at the
13 annual meeting, of any audits or examinations conducted during
14 the preceding year.
15 (4) The supervisory or audit committee shall notify
16 the board of directors, the department, and, as applicable,
17 either the corporation or the National Credit Union
18 Administration of any violation of this chapter part, any
19 violation of the certificate of authorization or bylaws of the
20 credit union, or any practice of the credit union deemed by
21 the supervisory or audit committee to be unsafe, unsound, or
22 unauthorized.
23 (5) For the purposes of this section subsection,
24 two-thirds of the members of the supervisory or audit
25 committee constitutes a quorum.
26 Section 18. Subsections (10), (13), (16), and (28) of
27 section 657.031, Florida Statutes, are amended to read:
28 657.031 Powers.--A credit union shall have the power
29 to:
30 (10) Borrow money and issue evidences of indebtedness
31 for a loan or loans in the usual course of its business and
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1 secure such obligations by mortgage or pledge of any of its
2 assets. Aggregate borrowings shall not exceed 50 percent of
3 the unimpaired capital of the credit union. However, this
4 percentage limitation shall not apply to loans from the
5 corporation or from the National Credit Union Administration.
6 (13) Invest funds, as provided in this chapter part.
7 (16) Hold membership in central credit unions or
8 corporate credit unions organized under this chapter part or
9 under any other state or federal acts and membership in
10 associations and organizations of credit unions.
11 (28) Perform any act necessary to obtain and maintain
12 membership in the corporation or obtain and maintain insurance
13 of accounts through the National Credit Union Administration.
14 Section 19. Subsection (2) of section 657.0315,
15 Florida Statutes, is amended to read:
16 657.0315 Contracts for providing goods, products, or
17 services.--
18 (2) Enforcement of this section may be made only by
19 the board of directors of the credit union, unless the
20 contract had been authorized by specific action of the board;
21 by the corporation or National Credit Union Administration if
22 it is directed to assume control of the assets and business of
23 the credit union pursuant to s. 657.062; or by the liquidator
24 appointed pursuant to s. 657.063 or s. 657.064.
25 Section 20. Subsections (9) and (15) of section
26 657.038, Florida Statutes, are amended to read:
27 657.038 Loan powers.--
28 (9) A loan may not be made to any corporation, except
29 to the Florida Credit Union Guaranty Corporation, Inc., or a
30 corporation in which the credit union holds an equity
31 interest.
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1 (15) If approved by the board of directors, a credit
2 union may extend credit to other credit unions, or to the
3 corporation, in an amount not greater than 25 percent of the
4 unimpaired capital of the lending credit union.
5 Section 21. Paragraph (a) of subsection (1) of section
6 657.039, Florida Statutes, is amended to read:
7 657.039 Loan powers; extension of credit to directors,
8 officers, committee members, and certain employees.--
9 (1) A credit union may extend credit to its officers,
10 directors, credit manager, members of its supervisory, audit,
11 and credit committees, and any other person authorized to
12 approve extensions of credit, provided:
13 (a) The extension of credit complies with all
14 requirements under this chapter part with respect to credit
15 extended to other borrowers and is not on terms more favorable
16 than those extended to other borrowers.
17 Section 22. Paragraph (a) of subsection (4) and
18 subsection (9) of section 657.043, Florida Statutes, are
19 amended to read:
20 657.043 Reserves.--
21 (4) RISK ASSETS DEFINED.--The following assets shall
22 be considered risk assets:
23 (a) All loans, except:
24 1. Loans fully secured by a pledge of shares or
25 deposits in the lending credit union, equal to and maintained
26 to at least the amount of the loan outstanding.
27 2. Loans which are purchased from liquidating credit
28 unions and guaranteed by the corporation or insured by the
29 National Credit Union Administration or other insuring
30 agencies.
31 3. Investments in or loans to the corporation.
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1 (9) GUARANTY ASSISTANCE AGREEMENT.--The amount of any
2 liability arising out of a guaranty assistance agreement with
3 the corporation or National Credit Union Administration must
4 be maintained as a reserve and be included in the
5 determination of undivided earnings of the credit union.
6 Section 23. Subsection (1) of section 657.062, Florida
7 Statutes, is amended to read:
8 657.062 Assumption of control by guarantor or
9 insurer.--
10 (1) The department may direct the corporation or the
11 National Credit Union Administration, whichever is applicable,
12 to assume control of the property, assets, and business of its
13 member credit union and to operate it subject to the
14 directions of the department:
15 (a) Whenever the department finds that the credit
16 union:
17 1. Is engaging or has engaged in an unsafe or unsound
18 practice;
19 2. Is violating or has violated any provision of this
20 chapter; or
21 3. Is violating or has violated any department rule,
22 department order, or written agreement entered into with the
23 department,
24
25 in such a manner that the credit union is threatened with
26 imminent insolvency.
27 (b) Whenever a majority of the members of the board of
28 directors of the credit union have been removed by the
29 department or shall have resigned.
30 Section 24. Subsection (2) of section 657.063, Florida
31 Statutes, is amended to read:
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1 657.063 Involuntary liquidation.--
2 (2) The liquidator must be appointed by the
3 department. The corporation or The National Credit Union
4 Administration, whichever is applicable, must be given the
5 right of first refusal. The department may appoint another
6 entity if refused by the primary guarantor or insurer.
7 Section 25. Subsections (1), (4), (5), and (7) of
8 section 657.064, Florida Statutes, are amended to read:
9 657.064 Voluntary liquidation.--A credit union may
10 elect to dissolve voluntarily and liquidate its affairs in the
11 following manner:
12 (1) Before considering any resolution pertaining to
13 voluntary liquidation by the board of directors, the credit
14 union must inform the department and the corporation or the
15 National Credit Union Administration, whichever is applicable,
16 of the time and place of the meeting of the board of
17 directors. The notification must be transmitted at least 5
18 days before the board of directors meets.
19 (4) Upon adoption by the board of directors of a
20 resolution recommending that the credit union be voluntarily
21 liquidated, the corporation or the National Credit Union
22 Administration, whichever is applicable, may restrict control
23 or give directions with respect to the continued business of
24 the credit union pending consideration of the voluntary
25 liquidation by the members. During such period, no member
26 shall withdraw an aggregate amount in excess of the insurance
27 or guaranty covered by the credit union. No new extensions of
28 credit shall be funded during the period between the board of
29 directors' adoption of the resolution recommending the
30 voluntary liquidation and the membership meeting called to
31 consider the voluntary liquidation, except for loans fully
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1 secured by a pledge of shares and for the funding of
2 outstanding loan commitments approved before the board of
3 directors adopts the resolution.
4 (5) The notice required by subsection (3) shall also
5 be mailed to the department within 5 days after the action of
6 the board of directors. Within 10 days after the meeting of
7 the membership, the board of directors shall notify the
8 department and the corporation or the National Credit Union
9 Administration, whichever is applicable, in writing of the
10 action taken by the members.
11 (7) The corporation or The National Credit Union
12 Administration, whichever is applicable, shall have the right
13 of first refusal to be appointed as liquidator of any
14 liquidating credit union which it guarantees or insures. The
15 liquidator shall have all of the powers provided in s. 657.063
16 regarding involuntary liquidation. If the corporation or the
17 National Credit Union Administration shall decline to serve as
18 liquidator, the board of directors shall appoint a reasonable
19 person as liquidator and specify the extent of
20 responsibilities and authority delegated to the liquidator.
21 Section 26. Paragraph (b) of subsection (1) of section
22 657.065, Florida Statutes, is amended to read:
23 657.065 Merger.--
24 (1) Any state or federal credit union may merge with
25 another state or federal credit union under the existing
26 certificate of authorization of the other credit union,
27 pursuant to any plan agreed upon by the majority of the board
28 of directors of each credit union joining in the merger, if:
29 (b) The merger is consented to by the corporation or
30 the National Credit Union Administration, whichever is
31 applicable; and
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1 Section 27. Section 657.066, Florida Statutes, is
2 amended to read:
3 657.066 Conversion from state credit union to federal
4 credit union and conversely.--Any credit union organized under
5 this chapter part may convert into a federal credit union and
6 any federal credit union may convert into a credit union
7 organized pursuant to this chapter part upon approval of the
8 authority under the supervision of which the converted credit
9 union will operate and upon compliance with applicable laws.
10 (1) Any action by the board of directors proposing
11 conversion shall be by resolution and shall require the
12 affirmative vote of an absolute majority of the board of
13 directors. Upon adoption of a resolution relating to
14 conversion, a copy of the resolution shall be mailed to each
15 member, together with a notice setting forth the time,
16 location, and purpose of a meeting of the membership which
17 shall be held not less than 10 nor more than 30 days following
18 the mailing of the notice.
19 (2) A ballot allowing an affirmative or negative vote
20 on the proposed conversion shall also be mailed to each
21 member. Any ballot received by the credit union prior to the
22 meeting called to consider the conversion shall be counted
23 along with the votes cast at the meeting. Each member shall
24 have but one vote. A majority of the votes cast by the
25 members shall be required to approve the conversion.
26 (3) Within 10 days after the approval of the
27 membership, the board of directors shall cause to be
28 transmitted to the authority under the supervision of which
29 the converted credit union will operate a copy of the
30 resolution adopted by the board of directors and approved by
31 the membership.
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1 (4) Upon the written approval of the authority under
2 the supervision of which the converting credit union is to
3 operate, the converting credit union shall become a credit
4 union under this chapter or under the laws of the United
5 States, as the case may be, and thereupon all assets shall
6 become the property of the converted credit union, subject to
7 all existing liabilities against the credit union. All shares
8 and deposits shall remain intact. Any federal credit union
9 seeking to convert to a state-chartered credit union shall pay
10 a nonrefundable filing fee of $500. The department may
11 conduct an examination of any converting federal credit union
12 before approving the conversion and the converting credit
13 union shall pay a nonrefundable examination fee as provided in
14 s. 655.411(1)(b).
15 (5) Every conversion must be completed within 90 days
16 after the approval of the authority under the supervision of
17 which the converted credit union will operate. Upon receiving
18 its certificate of authorization or charter from the authority
19 under the supervision of which the converted credit union will
20 operate, the old certificate of authorization or charter shall
21 be returned to the proper authority and shall be canceled.
22 (6) In consummation of the conversion, the old credit
23 union may execute, acknowledge, and deliver to the newly
24 chartered credit union the instruments of transfer necessary
25 to accomplish the transfer of any property and all right,
26 title, and interest therein.
27 Section 28. Paragraph (a) of subsection (2) and
28 subsection (4) of section 657.068, Florida Statutes, are
29 amended to read:
30 657.068 Central credit unions.--
31
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1 (2) Membership in a central credit union shall be
2 limited to:
3 (a) Credit unions organized and operating under this
4 chapter part or any other credit union act;
5 (4) A central credit union shall have all the powers
6 of any credit union organized under this chapter part and
7 shall have the following powers, notwithstanding any
8 limitations or restrictions herein:
9 (a) A central credit union may make loans to other
10 credit unions, purchase shares of and make deposits in other
11 credit unions, and obtain or acquire the assets and
12 liabilities of any credit union operating in this state which
13 liquidates, provided such assets are otherwise eligible for
14 investment by the acquiring credit union.
15 (b) A central credit union may invest in and grant
16 loans to associations of credit unions, central funds of
17 credit unions, or organizations chartered to provide services
18 to credit unions.
19 Section 29. Section 716.02, Florida Statutes, is
20 amended to read:
21 716.02 Escheat of funds in the possession of federal
22 agencies.--All property within the provisions of subsections
23 (1), (2), (3), and (4) and (5), are declared to have
24 escheated, or to escheat, including all principal and interest
25 accruing thereon, and to have become the property of the
26 state.
27 (1) All money or other property which has remained in,
28 or has been deposited in the custody of, or under the control
29 of, any court of the United States, in and for any district
30 within this state, or which has been deposited with and is in
31 the custody of any depository, registry, clerk or other
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1 officer of such court, or the United States treasury, which
2 money or other property the rightful owner or owners thereof,
3 either:
4 (a) Has been unknown for a period of 5 or more
5 consecutive years; or,
6 (b) Has died, without having disposed thereof, and
7 without having left heirs, next of kin or distributees, or
8 (c) Has made no demand for such money or other
9 property for 5 years;
10
11 are declared to have escheated, or to escheat, together with
12 all interest accrued thereon, and to have become the property
13 of the state.
14 (2) After June 16, 1947, all money or other property
15 which has remained in, or has been deposited in the custody
16 of, or under the control of, any court of the United States,
17 in and for any district within this state, for a period of 4
18 years, the rightful owner or owners of which, either:
19 (a) Shall have been unknown for a period of 4 years;
20 or,
21 (b) Shall have died without having disposed thereof,
22 and without having left or without leaving heirs, next of kin
23 or distributees; or,
24 (c) Shall have failed within 4 years to demand the
25 payment or delivery of such funds or other property;
26
27 is hereby declared to have escheated, or to escheat, together
28 with all interest accrued thereon, and to have become the
29 property of the state.
30 (2)(3) All money or other property which has remained
31 in, or has been deposited in the custody of, or under the
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1 control of any officer, department or agency of the United
2 States for 5 or more consecutive years, which money or other
3 property had its situs or source in this state, except as
4 hereinafter provided in subsection (3) (4), the sender of
5 which is unknown, or who sent the money or other property for
6 an unknown purpose, or money which is credited as "unknown,"
7 and which said governmental agency is unable to credit to any
8 particular account, or the sender of which has been unknown
9 for a period of 5 or more consecutive years; or when known,
10 has died without having disposed thereof, and without leaving
11 heirs, next of kin or distributees, or for any reason is
12 unclaimed from such governmental agency.
13 (3)(4) In the event any money is due to any resident
14 of this state as a refund, rebate or tax rebate from the
15 United States Commissioner of Internal Revenue, the United
16 States Treasurer, or other governmental agency or department,
17 which said resident will, or is likely to have her or his
18 rights to apply for and secure such refund or rebate barred by
19 any statute of limitations or, in any event, has failed for a
20 period of 1 year after said resident could have filed a claim
21 for said refund or rebate, the Department of Banking and
22 Finance is hereby appointed agent of such resident to demand,
23 file and apply for said refund or rebate, and is hereby
24 appointed to do any act which a natural person could do to
25 recover said money, and it is hereby declared that when the
26 department files said application or any other proceeding to
27 secure said refund or rebate, its agency is coupled with an
28 interest in the money sought and money recovered.
29 (4)(5) It is the purpose of this chapter to include
30 all funds or other property in the possession of the
31 government of the United States, and of its departments,
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1 officers, and agencies, which property has its situs in this
2 state or belonged to a resident thereof, and not to limit the
3 application of this chapter by the naming of any particular
4 agency. This chapter shall include all funds held in the
5 United States Department of Veterans Affairs, Comptroller of
6 Currency, United States Treasury, Department of Internal
7 Revenue, federal courts, registry of federal courts, and such
8 evidences of indebtedness as adjusted service bonds, old
9 matured debts issued prior to 1917, unclaimed and interest
10 thereon, postal savings bonds, liberty bonds, victory notes,
11 treasury bonds, treasury notes, certificates of indebtedness,
12 treasury bills, treasurer's savings certificates, bonuses and
13 adjusted compensation, allotments, and all unclaimed refunds
14 or rebates of whatever kind or nature, which are subjects of
15 escheat, under the terms of this chapter. Provided, however,
16 that nothing in this chapter shall be construed to mean that
17 any refunds due ratepayers under order of any court of the
18 United States shall become the property of the state.
19 Section 30. Section 717.137, Florida Statutes, is
20 repealed.
21 Section 31. This act shall take effect upon becoming a
22 law.
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