CS/HB 707

1	A bill to be entitled
2	An act relating to international banking corporations;
3	amending ss. 655.005 and 663.01, F.S.; revising certain
4	definitions; amending s. 663.02, F.S.; expanding
5	application of state banking laws to include certain
6	international banking corporations and trust companies;
7	expanding legislative intent; prohibiting construction to
8	authorize international banking corporation or trust
9	companies to conduct trust business under certain
10	circumstances; amending s. 663.04, F.S.; revising
11	requirements for carrying on banking business to apply to
12	certain additional financial institutions; imposing
13	additional requirements; amending s. 663.05, F.S.;
14	revising requirements for licensing international banking
15	corporations; including requirements applicable to certain
16	trust representative offices; deleting certain
17	nonapplication provisions; amending s. 663.055, F.S.;
18	increasing certain net capital account requirements;
19	amending s. 663.06, F.S.; revising permissible activities
20	requirements for licensed international banking
21	corporations; amending s. 663.061, F.S.; revising a
22	permissible activity requirement for international bank
23	agencies; amending s. 663.062, F.S.; revising a
24	permissible activity requirement for licensed
25	international representative offices to apply to trust
26	companies; creating s. 663.0625, F.S.; specifying
27	permissible activities for international trust company
28	representative offices; specifying requirements; amending
29	s. 663.064, F.S.; revising application of provisions of
30	law to establishing branches of international banking
31	corporations; amending s. 663.065, F.S.; revising
32	application of provisions of law to organize a state-
33	chartered investment company; amending s. 663.11, F.S.;
34	providing for termination of an international banking
35	corporation's charter or authority; prohibiting
36	international banking corporations from continuing to
37	conduct licensed business in this state under certain
38	circumstances; amending s. 663.12, F.S.; increasing a
39	license application filing fee; imposing an annual
40	assessment upon certain entities; amending s. 663.16,
41	F.S.; revising definitions to conform to changes made by
42	the act; amending s. 663.17, F.S.; expanding criteria
43	under which the Office of Financial Regulation may take
44	possession of certain business and property of certain
45	international banking corporations; revising provisions to
46	conform to changes made by the act; amending ss. 663.171
47	and 663.172, F.S.; revising provisions to conform to
48	changes made by the act; providing an effective date.
49
50	Be It Enacted by the Legislature of the State of Florida:
51
52	Section 1.  Paragraphs (h) and (p) of subsection (1) of
53	section 655.005, Florida Statutes, are amended to read:
54	655.005  Definitions.-
55	(1)  As used in the financial institutions codes, unless
56	the context otherwise requires, the term:
57	(h)  "Financial institution" means a state or federal
58	savings or thrift association, bank, savings bank, trust
59	company, international bank agency, international banking
60	corporation organization, international branch, international
61	representative office, international administrative office,
62	international trust company representative office, or credit
63	union, or an agreement corporation operating pursuant to s. 25
64	of the Federal Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge
65	Act corporation organized pursuant to s. 25(a) of the Federal
66	Reserve Act, 12 U.S.C. ss. 611 et seq.
67	(p)  "State financial institution" means a state-chartered
68	or state-organized association, bank, investment company, trust
69	company, international bank agency, international branch,
70	international representative office, international
71	administrative office, international trust company
72	representative office, or credit union.
73	Section 2.  Subsections (3), (6), and (8) of section
74	663.01, Florida Statutes, are amended, subsections (9) and (10)
75	of that section are renumbered as subsections (10) and (11),
76	respectively, and a new subsection (9) is added to that section,
77	to read:
78	663.01  Definitions.-As used in this part, the term:
79	(3)  "Foreign country" means a country other than the
80	United States and includes any colony, dependency, or possession
81	of such country notwithstanding any definitions in chapter 658,
82	and any territory of the United States, including Guam, American
83	Samoa, the Virgin Islands, and the Commonwealth of Puerto Rico.
84	(6)  "International banking corporation" means a banking
85	corporation organized and licensed under the laws of a foreign
86	country, or, if organized and licensed under the laws of the
87	United States or any of the states of the United States of
88	America, a banking corporation:
89	(a)  Which is not a bank or bank holding company as defined
90	in the federal Bank Holding Company Act, as amended, 12 U.S.C.
91	ss. 1841-1850; and
92	(b)  Which maintained, on July 1, 1981, as its only United
93	States banking office, one state agency licensed by a state
94	other than this state.
95
96	The term "international banking corporation" includes, without
97	limitation, a foreign commercial bank, foreign merchant bank, or
98	other foreign institution that engages in banking activities
99	usual in connection with the business of banking in the country
100	where such foreign institution is organized or operating,
101	including a corporation: the sole shareholders of which are one
102	or more international banking corporations or holding companies
103	which own or control one or more international banking
104	corporations which are authorized to carry on a banking
105	business, or a central bank or government agency of a foreign
106	country and any affiliate or division thereof; which has the
107	power to receive deposits from the general public in the country
108	where it is chartered and organized; and which is under the
109	supervision of the central bank or other bank regulatory
110	authority of such country. The term also includes foreign trust
111	companies, or any similar business entities, including, but not
112	limited to, foreign banks with fiduciary powers, that conduct
113	trust business as defined in the financial institutions codes.
114	(8)  "International representative office" means an office
115	of an international banking corporation organized and licensed
116	under the laws of a foreign country that is established or
117	maintained in this state for the purpose of engaging in the
118	activities described in s. 663.062, or any affiliate,
119	subsidiary, or other person that engages whose primary business
120	is to engage in such activities, on behalf of such international
121	banking corporation, from an office located in this state.
122	(9)  "International trust company representative office"
123	means an office of an international banking corporation or trust
124	company organized and licensed under the laws of a foreign
125	country which office is established or maintained in this state
126	for the purpose of engaging in nonfiduciary activities described
127	in s. 663.0625, or any affiliate, subsidiary, or other person
128	that engages in such activities on behalf of such international
129	banking corporation or trust company from an office located in
130	this state.
131	Section 3.  Section 663.02, Florida Statutes, is amended to
132	read:
133	663.02  Applicability of state banking laws.-
134	(1)  International banking corporations having offices in
135	this state shall be subject to all the provisions of the
136	financial institutions codes and chapter 655 as though such
137	international banking corporations were state banks or trust
138	companies, except where it may appear, from the context or
139	otherwise, that such provisions are clearly applicable only to
140	banks or trust companies organized under the laws of this state
141	or the United States. Without limiting the foregoing general
142	provisions, it is the intent of the Legislature that the
143	following provisions are shall be applicable to such banks or
144	trust companies corporations: s. 655.031, relating to
145	administrative enforcement guidelines; s. 655.032, relating to
146	investigations, subpoenas, hearings, and witnesses; s. 655.0321,
147	relating to hearings, proceedings, and related documents and
148	restricted access thereto; s. 655.033, relating to cease and
149	desist orders; s. 655.037, relating to removal by the office of
150	an officer, director, committee member, employee, or other
151	person; s. 655.041, relating to administrative fines and
152	enforcement; s. 655.50, relating to control of money laundering
153	; and s. 658.49, relating to loans by banks not exceeding
154	$50,000; and any provision of law for which the penalty is
155	increased under s. 775.31 for facilitating or furthering
156	terrorism. International banking corporations shall not have the
157	powers conferred on domestic banks by the provisions of s.
158	658.60, relating to deposits of public funds. The provisions of
159	chapter 687, relating to interest and usury, shall apply to all
160	loans not subject to s. 658.49.
161	(2)  Neither an international bank agency nor an
162	international branch shall have any greater right under, or by
163	virtue of, this section than is granted to banks organized under
164	the laws of this state. Legal and financial terms used herein
165	shall be deemed to refer to equivalent terms used by the country
166	in which the international banking corporation is organized.
167	This chapter and the financial institutions codes may not be
168	construed to authorize any international banking corporation or
169	trust company to conduct trust business, as defined in s.
170	658.12, from an office in this state except for those activities
171	specifically authorized by ss. 663.061(5) and 663.0625.
172	Section 4.  Section 663.04, Florida Statutes, is amended to
173	read:
174	663.04  Requirements for carrying on financial institution
175	banking business.-An No international banking corporation or
176	trust company, or any affiliate, subsidiary, or other person or
177	business entity acting as an agent for, on behalf of, or for the
178	benefit of such international banking corporation or trust
179	company who engages in such activities from an office located in
180	this state, may not shall transact a banking or trust business,
181	or maintain in this state any office for carrying on such
182	business, or any part thereof, unless such corporation, trust
183	company, affiliate, subsidiary, person, or business entity has:
184	(1)  Has been authorized by its charter to carry on a
185	banking or trust business and has complied with the laws of the
186	jurisdiction in which it is chartered.
187	(2)  Has furnished to the office such proof as to the
188	nature and character of its business and as to its financial
189	condition as the commission or office requires.
190	(3)  Has filed with the office a certified copy of that
191	information required to be supplied to the Department of State
192	by those provisions of chapter 607 which are applicable to
193	foreign corporations.
194	(4)  Has received a license duly issued to it by the
195	office.
196	(5)  Has capital accounts no less than the minimums
197	required per s. 663.055 and is not imminently insolvent or
198	insolvent per s. 655.005(1).
199	(6)(a)  Is not in bankruptcy, conservatorship,
200	receivership, liquidation, or similar status under the laws of
201	any country.
202	(b)  Is not operating under the direct control of the
203	government, regulatory, or supervisory authority of the
204	jurisdiction of its incorporation through government
205	intervention or any other extraordinary actions.
206	(c)  Has not been in such status or control at any time
207	within the 7 years preceding the date of application for a
208	license.
209	Section 5.  Section 663.05, Florida Statutes, is amended to
210	read:
211	663.05  Application for license; approval or disapproval.-
212	(1)  Every international banking corporation, before being
213	licensed by the office to maintain any office in this state,
214	shall subscribe and acknowledge, and submit to the office, an
215	application which shall contain:
216	(a)  The name of the international banking corporation.
217	(b)  The proposed location by street and post office
218	address and county where its business is to be transacted in
219	this state and the name of the person who shall be in charge of
220	the business and affairs of the office.
221	(c)  The location where its initial registered office will
222	be located in this state.
223	(d)  The total amount of the capital accounts of the
224	international banking corporation.
225	(e)  A complete and detailed statement of its financial
226	condition as of a date within 180 days prior to the date of such
227	application, except that the office in its discretion may, when
228	necessary or expedient, accept such statement of financial
229	condition as of a date within 240 days prior to the date of such
230	application. The office in its discretion may, when necessary or
231	expedient, require an independent opinion audit or the
232	equivalent satisfactory to the office.
233	(f)  A listing of any occasion within the preceding 10-year
234	period in which either the international banking corporation or
235	any of its directors, executive officers, or principal
236	shareholders has been arrested for, charged with, convicted of,
237	or pled guilty or nolo contendere to, regardless of
238	adjudication, any offense with respect to which the penalties
239	include the possibility of imprisonment for 1 year or more, or
240	to any offense involving money laundering, currency transaction
241	reporting, facilitating or furthering terrorism, fraud, or
242	otherwise related to the operation of a financial institution.
243	(2)  The office shall disallow any illegally obtained
244	currency, monetary instruments, funds, or other financial
245	resources from the capitalization requirements of this section,
246	and the existence of such illegally obtained resources shall be
247	grounds for denial of the application for license.
248	(3)  At the time an application is submitted to the office,
249	the international banking corporation shall also submit a duly
250	authenticated copy of its articles of incorporation and a copy
251	of its bylaws, or an equivalent thereof satisfactory to the
252	office. Such corporation shall also submit a certificate issued
253	by the banking or supervisory authority of the country in which
254	the international banking corporation is chartered stating that
255	the international banking corporation is duly organized and
256	licensed and lawfully existing in good standing and listing any
257	instance in which the international banking corporation has been
258	convicted of, or pled guilty or nolo contendere to, a violation
259	of any currency transaction reporting or money laundering law
260	which may exist in that country.
261	(4)  Application shall be made on a form prescribed by the
262	office commission and shall contain such information as the
263	commission or office requires.
264	(5)  The office may, in its discretion, approve or
265	disapprove the application, but it shall not approve the
266	application unless, in its opinion, the applicant meets each and
267	every requirement of this part and any other applicable
268	provision of the financial institutions codes. The office shall
269	approve the application only if it has determined that the
270	directors, executive officers, and principal shareholders of the
271	international banking corporation are qualified by reason of
272	their financial ability, reputation, and integrity and have
273	sufficient banking and other business experience to indicate
274	that they will manage and direct the affairs of the
275	international banking corporation in a safe, sound, and lawful
276	manner. In the processing of applications, the time limitations
277	under the Administrative Procedure Act shall not apply as to
278	approval or disapproval of the application.
279	(6)  The office may shall not issue a license to an
280	international banking corporation unless:
281	(a)  It is chartered in a jurisdiction in which any bank or
282	trust company having its principal place of business in this
283	state may establish similar facilities or exercise similar
284	powers; or
285	(b)  Federal law permits the appropriate federal regulatory
286	authority to issue a comparable license to the international
287	banking corporation.
288	(7)  The office may not issue a license shall not be issued
289	to an international banking corporation for the purpose of
290	operating:
291	(a)  An international bank agency or an international
292	branch in this state unless the international banking
293	corporation:
294	1.(a)  Holds an unrestricted license to receive deposits
295	from the general public, as authorized for that international
296	banking corporation, in the foreign country under the laws of
297	which it is organized and chartered.
298	2.(b)  Has been authorized by the foreign country's bank
299	regulatory authority to establish the proposed international
300	bank office.
301	3.(c)  Is adequately supervised by the central bank or bank
302	regulatory agency in the foreign country in which it is
303	organized and chartered.
304	(8)  A license shall not be issued to an international
305	banking corporation for the purpose of operating
306	(b)  An international representative office or an
307	international administrative office in this state unless the
308	international banking corporation:
309	1.(a)  Has been authorized by the foreign country's bank
310	regulatory authority to establish the proposed international
311	bank office.; and
312	2.(b)  Is adequately supervised by the central bank or bank
313	regulatory agency in the foreign country in which it is
314	organized and chartered.
315	(c)  A trust representative office in this state unless the
316	corporation:
317	1.  Holds an unrestricted license to conduct trust business
318	in the foreign country under the laws of which it is organized
319	and chartered.
320	2.  Has been authorized by the foreign country's trust
321	business regulatory authority to establish the proposed
322	international trust representative office.
323	3.  Is adequately supervised by the central bank or trust
324	regulatory agency in the foreign country in which it is
325	organized and chartered.
326	4.  Meets all requirements under the financial institutions
327	codes for the operation of a trust company or trust department
328	as if it was a state chartered trust company or bank authorized
329	to exercise fiduciary powers.
330	(8)(9)  The commission shall establish, by rule, the
331	general principles which shall determine the adequacy of
332	supervision of an international banking corporation's foreign
333	establishments. These principles shall be based upon the need
334	for cooperative supervisory efforts and consistent regulatory
335	guidelines and shall address, at a minimum, the capital
336	adequacy, asset quality, management, earnings, liquidity,
337	internal controls, audits, and foreign exchange operations and
338	positions of the international banking corporation. This
339	subsection shall not require examination by the home-country
340	regulatory authorities of any office of an international banking
341	corporation in this state. The commission may also establish, by
342	rule, other standards for approval of an application for a
343	license as considered necessary to ensure the safe and sound
344	operations of the international bank or trust representative
345	office in this state.
346	(10)  The requirements of subsection (7) shall not apply to
347	any international banking corporation that held a license to
348	operate an international bank agency in this state before July
349	1, 1992.
350	(11)  The requirements of subsection (8) shall not apply to
351	any international banking corporation that held a license to
352	operate an international representative office or international
353	administrative office in this state before July 1, 1992.
354	Section 6.  Section 663.055, Florida Statutes, is amended
355	to read:
356	663.055  Capital requirements.-
357	(1)  To qualify for a license under the provisions of this
358	part, an international banking corporation must have net total
359	capital accounts, calculated according to United States
360	generally accepted accounting principles and practices, of at
361	least:
362	(a)  Forty Twenty-five million dollars for the
363	establishment of an international bank agency, an international
364	branch, or an international administrative office; or
365	(b)  Twenty Ten million dollars for the establishment of an
366	international representative office or international trust
367	representative office.
368	(2)  Notwithstanding the provisions of paragraph (1)(a),
369	the office may approve an application for a license to establish
370	an international bank agency, an international branch, or an
371	international administrative office if:
372	(a)  The international banking corporation is licensed to
373	receive deposits from the general public in the country where it
374	is organized and licensed and to engage in such other activities
375	as are usual in connection with the business of banking in such
376	country;
377	(b)  The office receives a certificate that is issued by
378	the banking or supervisory authority of the country in which the
379	international banking corporation is organized and licensed and
380	states that the international banking corporation is duly
381	organized and licensed and lawfully existing in good standing,
382	and is empowered to conduct a banking business; and
383	(c)  The international banking corporation has been in the
384	business of banking for at least 10 years and is ranked by the
385	banking or supervisory authority of the country in which it is
386	organized and licensed as one of the five largest banks in that
387	country in terms of domestic deposits, as of the date of its
388	most recent statement of financial condition. However, in no
389	event shall the office approve an application under this
390	subsection for any international banking corporation with
391	capital accounts of less than $20 $10 million.
392	(3)  The office may specify such other conditions as it
393	determines appropriate, considering the public interest, the
394	need to maintain a safe, sound, and competitive banking system,
395	and the preservation of an environment conducive to the conduct
396	of an international banking business in this state. In
397	translating the capital accounts of an international banking
398	corporation, the office may consider monetary corrections
399	accounts that reflect results consistent with the requirements
400	of generally accepted accounting principles in the United
401	States.
402	(4)  For the purpose of this part, the capital accounts of
403	an international banking corporation shall be determined in
404	accordance with rules adopted by the commission. In adopting
405	such rules, the commission shall consider similar rules adopted
406	by bank regulatory agencies in the United States and the need to
407	provide reasonably consistent regulatory requirements for
408	international banking corporations which will maintain the safe
409	and sound condition of international banking corporations doing
410	business in this state.
411	Section 7.  Subsections (1), (2), and (3) of section
412	663.06, Florida Statutes, are amended to read:
413	663.06  Licenses; permissible activities.-
414	(1)  An international banking corporation licensed to
415	operate an office in this state may engage in the business
416	authorized by this part at the office specified in such license
417	for an indefinite period. An international banking corporation
418	may operate more than one licensed office international bank
419	agency, international branch, or international representative
420	office, each at a different place of business, provided that
421	each office shall be separately licensed. No license to operate
422	an international bank office is transferable or assignable.
423	However, the location of a licensed an international bank office
424	may be changed after notification of the office. Every such
425	license shall be, at all times, conspicuously displayed in the
426	place of business specified therein.
427	(2)  An international banking corporation which proposes to
428	terminate the operations of a licensed office in this state its
429	international bank agency, international branch, international
430	representative office, or international administrative office
431	shall surrender the its license to the office and comply with
432	such procedures as the commission may prescribe by rule.
433	(3)  The An international bank agency, international
434	branch, international representative office, or international
435	administrative office license for any international banking
436	corporation office in this state may be suspended or revoked by
437	the office, with or without examination, upon its determination
438	that the international banking corporation or the licensed
439	office does not meet all requirements for original licensing.
440	Additionally, the office shall revoke the license of any
441	licensed office that the office determines has been inactive for
442	6 months or longer. The commission may by rule prescribe
443	additional conditions or standards under which the license of an
444	international bank agency, international branch, international
445	representative office, international trust company
446	representative office, or international administrative office
447	may be suspended or revoked.
448	Section 8.  Subsection (3) of section 663.061, Florida
449	Statutes, is amended to read:
450	663.061  International bank agencies; permissible
451	activities.-
452	(3)  Notwithstanding any provision of this chapter or
453	chapter 658 to the contrary, an international banking
454	corporation licensed under this part to operate an international
455	bank agency may, if authorized by rule of the commission or
456	office order, make any loan or investment or exercise any power
457	which it could make or exercise if it were operating in this
458	state as a federal agency under federal law. The commission and
459	office shall, when adopting such rules or issuing such orders,
460	consider the public interest and convenience and the need to
461	maintain a safe, sound, and competitive state banking system.
462	Unless otherwise provided by statute, an international bank
463	agency may not exercise any powers that a federal agency is not
464	authorized to exercise.
465	Section 9.  Section 663.062, Florida Statutes, is amended
466	to read:
467	663.062  International representative offices; permissible
468	activities.-An international representative office may promote
469	or assist the deposit-taking, lending, or other financial or
470	banking activities of an international banking corporation. An
471	international representative office may serve as a liaison in
472	Florida between an international banking corporation and its
473	existing and potential customers. Representatives and employees
474	based at such office may solicit business for the international
475	banking corporation and its subsidiaries and affiliates, provide
476	information to customers concerning their accounts, answer
477	questions, receive applications for extensions of credit and
478	other banking services, transmit documents on behalf of
479	customers, and make arrangements for customers to transact
480	business on their accounts, but a representative office may not
481	conduct any banking or trust business in this state.
482	Section 10.  Section 663.0625, Florida Statutes, is created
483	to read:
484	663.0625  International trust company representative
485	offices; permissible activities; requirements.-An international
486	trust company representative office may conduct any nonfiduciary
487	activities that are ancillary to the fiduciary business of its
488	international banking corporation or trust company, but may not
489	act as a fiduciary. Permissible activities include advertising,
490	marketing, and soliciting for fiduciary business on behalf of an
491	international banking corporation or trust company; contacting
492	existing or potential customers, answering questions, and
493	providing information about matters related to their accounts;
494	serving as a liaison in this state between the international
495	banking corporation or trust company and its existing or
496	potential customers; and engaging in any other activities
497	approved by the office or under rules of the commission.
498	Representatives and employees at such office may not act as a
499	fiduciary, including, but not limited to, accepting the
500	fiduciary appointment, executing the fiduciary documents that
501	create the fiduciary relationship, or making discretionary
502	decisions regarding the investment or distribution of fiduciary
503	accounts.
504	Section 11.  Section 663.064, Florida Statutes, is amended
505	to read:
506	663.064  International branches; permissible activities;
507	requirements.-An international banking corporation that meets
508	the requirements of ss. 658.26, 663.04, and 663.05 may, with the
509	approval of the office, establish one or more branches in this
510	state to the extent permitted to banks from other states. An
511	international branch shall have the same rights and privileges
512	as a federally licensed international branch. The operations of
513	an international branch shall be conducted pursuant to
514	requirements determined by the office as necessary to ensure
515	compliance with the provisions of the financial institutions
516	codes, including requirements for the maintenance of accounts
517	and records separate from those of the international banking
518	corporation of which it is a branch. An application to establish
519	an international branch shall be made pursuant to s. 658.26.
520	Section 12.  Subsection (3) of section 663.065, Florida
521	Statutes, is amended to read:
522	663.065  State-chartered investment companies; formation;
523	permissible activities; restrictions.-
524	(3)  An application for approval to organize a state-
525	chartered investment company shall be subject to the provisions
526	of chapter 658 655 relating to the organization of de novo
527	financial institutions and to rules adopted by the commission as
528	necessary to ensure that the proposed state-chartered investment
529	company will be operated in a safe and lawful manner, except
530	that the applicant is not required to become a member of the
531	Federal Reserve System or the Federal Deposit Insurance
532	Corporation. State-chartered investment companies shall be
533	subject to the examination and supervision of the office and are
534	subject to the financial institutions codes to the same extent
535	as international banking corporations pursuant to s. 663.02.
536	Section 13.  Section 663.11, Florida Statutes, is amended
537	to read:
538	663.11  Termination of charter or authority Dissolution.-In
539	the event An international banking corporation that which is
540	licensed to maintain an office in this state may not continue to
541	conduct its licensed business in this state if the international
542	banking corporation is dissolved, or its authority or existence
543	is otherwise terminated or canceled in the jurisdiction of its
544	incorporation, is in bankruptcy, conservatorship, receivership,
545	liquidation, or similar status under the laws of any country, or
546	is operating under the direct control of the government or the
547	regulatory or supervisory authority of the jurisdiction of its
548	incorporation through government intervention or any other
549	extraordinary actions. A certificate of the official who is
550	responsible for records of banking corporations of the
551	jurisdiction of incorporation of such international banking
552	corporation, attesting to the occurrence of any such event, or a
553	certified copy of an order or decree of a court of such
554	jurisdiction, directing the dissolution of such international
555	banking corporation, the termination of its existence, or the
556	cancellation of its authority, or declaring its status in
557	bankruptcy, conservatorship, receivership, liquidation, or
558	similar proceedings, or other reliable documentation that the
559	international banking corporation is operating under the direct
560	control of its government or a regulatory or supervisory
561	authority, shall be delivered by the international banking
562	corporation or its surviving officers and directors to the
563	office. The filing of the certificate, order, documentation, or
564	decree shall have the same effect as the revocation of the
565	license of such international banking corporation as provided in
566	s. 663.06.
567	Section 14.  Paragraph (e) of subsection (1) and subsection
568	(2) of section 663.12, Florida Statutes, are amended to read:
569	663.12  Fees; assessments; fines.-
570	(1)  Each application for a license under the provisions of
571	this part shall be accompanied by a nonrefundable filing fee
572	payable to the office in the following amount:
573	(e)  Five Two thousand dollars annually for establishing
574	operating an international trust company representative office
575	or international administrative office.
576	(2)  Each international bank agency, international branch,
577	and state-chartered investment company shall pay to the office a
578	semiannual assessment, payable on or before January 31 and July
579	31 of each year, in an amount determined by rule by the
580	commission and calculated in a manner so as to recover the costs
581	of the office incurred in connection with the supervision of
582	international banking activities licensed under this part. These
583	rules shall provide for uniform rates of assessment for all
584	licenses of the same type, shall provide for declining rates of
585	assessment in relation to the total assets of the licensee held
586	in the state, but shall not, in any event, provide for rates of
587	assessment which exceed the rate applicable to state banks
588	pursuant to s. 658.73, unless the rate of assessment would
589	result in a semiannual assessment of less than $1,000. For the
590	purposes of this subsection, the total assets of an
591	international bank agency, international branch, or state-
592	chartered investment company shall include amounts due the
593	agency or branch or state investment company from other offices,
594	branches, or subsidiaries of the international banking
595	corporations or other corporations of which the agency, branch,
596	or state-chartered investment company is a part or from entities
597	related to that international banking corporation. Each
598	international representative office, international
599	administrative office, or international trust company
600	representative office shall pay to the office an annual
601	assessment in the amount of $2,000, payable on or before January
602	31 of each year.
603	Section 15.  Subsections (1), (4), (5), (11), and (12) of
604	section 663.16, Florida Statutes, are amended to read:
605	663.16  Definitions; ss. 663.17-663.181.-As used in ss.
606	663.17-663.181, the term:
607	(1)  "Business and property in this state" includes, but is
608	not limited to, all property of the international banking
609	corporation, real, personal, or mixed, whether tangible or
610	intangible:
611	(a)  Wherever situated, constituting a part of the business
612	of the Florida licensed office agency and appearing on its books
613	as such.
614	(b)  Situated within this state whether or not constituting
615	part of the business of the Florida licensed office agency or so
616	appearing on its books.
617	(4)  Except where the context otherwise requires,
618	"international banking corporation" or "corporation" has the
619	same meaning as that provided in s. 663.01 and includes means
620	any licensed office of an international banking corporation bank
621	agency or branch operating in this state.
622	(5)  "Officer" means the agent or other person in charge of
623	an international banking corporation licensed office.
624	(11)  "Licensed office Branch or agency net obligations"
625	means, with respect to a qualified financial contract, the
626	amount, if any, that would have been owed by the international
627	banking corporation to a party after netting only those
628	transactions entered into by the licensed office branch or
629	agency and such party under such qualified financial contract.
630	(12)  "Licensed office Branch or agency net payments
631	entitlement" means, with respect to a qualified financial
632	contract, the amount, if any, that would have been owed by a
633	party to the international banking corporation after netting
634	only those transactions entered into by the licensed office
635	branch or agency and such party under such qualified financial
636	contract.
637	Section 16.  Section 663.17, Florida Statutes, is amended
638	to read:
639	663.17  Liquidation; possession of business and property;
640	inventory of assets; wages; depositing collected assets;
641	appointing agents; appointment of judges.-
642	(1)  The office may, at its discretion, take possession of
643	the business and property in this state of any international
644	banking corporation that has been licensed to operate in this
645	state upon finding that the corporation, or any of the
646	corporation's licensed offices international bank agency
647	operating in this state has violated any law, has neglected or
648	refused to comply with the terms of a duly issued order of the
649	office, is insolvent or imminently insolvent, or is transacting
650	business in an unsound, unsafe, or unauthorized manner such that
651	the corporation is threatened with imminent insolvency, or that
652	the corporation is dissolved, its authority or existence is
653	otherwise terminated or canceled in the jurisdiction of its
654	incorporation, it is in bankruptcy, conservatorship,
655	receivership, liquidation, or similar status under the laws of
656	any country, or it is operating under the direct control of the
657	government or the regulatory or supervisory authority of the
658	jurisdiction of its incorporation through government
659	intervention or any other extraordinary actions in liquidation
660	at its domicile or elsewhere. Title to such business and
661	property shall vest by operation of law in the office upon
662	taking possession. Thereafter, the office shall liquidate or
663	otherwise deal with such business and property in accordance
664	with the provisions of this part, chapter 658, and any other
665	provision relating to the liquidation of banking corporations.
666	The office may deal with such business and property and
667	prosecute and defend any and all actions relating to the
668	liquidation. Only the claims of creditors of the international
669	banking corporation arising out of transactions those creditors
670	had with the international banking corporation, or any of the
671	corporation's licensed offices international bank agency or
672	agencies located in this state, shall be accepted by
673	for payment out of the business and property which it has taken
674	possession of in this state. Acceptance or rejection of such
675	claims by the office shall not prejudice any creditor's rights
676	to otherwise share in other assets of the international banking
677	corporation. The following claims shall not be accepted by the
678	office for payment out of the business and property in the
679	office's possession in this state:
680	(a)  Claims which would not represent an enforceable legal
681	obligation against an international banking corporation, or any
682	of the corporation's licensed offices located in this state, if
683	such office was bank agency if such agency were a separate and
684	independent legal entity.
685	(b)  Amounts due and other liabilities to other offices,
686	agencies, and branches of and affiliates of such international
687	banking corporation.
688	(2)  Whenever all accepted claims, together with interest
689	on such claims, and the expenses of the liquidation have been
690	paid in full or properly provided for, the office, upon the
691	order of a court of competent jurisdiction, shall transfer the
692	remaining assets to the principal office of such international
693	banking corporation, or to the duly appointed domiciliary
694	liquidator or receiver of such corporation. Dividends and other
695	amounts that remain unclaimed or unpaid and are in the
696	possession of the office for 6 months after such transfer shall
697	be deposited by the office as provided by law.
698	(3)  When the office takes possession of the property and
699	business of any international banking corporation, including any
700	of the corporation's licensed offices located in this state, the
701	office shall:
702	(a)  Give notice of such fact to all corporations,
703	unincorporated associations, partnerships, governmental
704	entities, and other entities and individuals known by the office
705	to hold any assets of such corporation. No corporation,
706	unincorporated association, partnership, governmental entity, or
707	other entity or individual having notice or knowledge that the
708	office has taken possession of such property and business of a
709	international banking corporation shall have a lien or charge
710	for any payment, advance, or clearance thereafter made against
711	any of the assets of such corporation for liability thereafter
712	incurred.
713	(b)  Upon written demand of the office, any corporation,
714	unincorporated association, partnership, governmental entity, or
715	other entity or individual holding assets of such corporation
716	shall deliver such assets to the office and shall be discharged
717	from liability with respect to any claim upon such assets;
718	provided, such demand shall not affect the right of a secured
719	creditor with a perfected security interest, or other valid lien
720	or security interest enforceable against third parties, to
721	retain collateral, including any right of such secured creditor
722	under any security agreement related to a qualified financial
723	contract to retain collateral and apply such collateral in
724	accordance with the provisions of the financial institutions
725	codes.
726	(c)  Nothing in paragraphs (a) and (b) shall affect any
727	right of setoff permitted under applicable law; provided, in
728	connection with the liquidation of a licensed office an
729	international bank agency of any other international banking
730	corporation pursuant to this part, no entity or individual may
731	set off the business and property in this state of an
732	international banking corporation being liquidated under this
733	subsection, against the liabilities of such corporation other
734	than those that arise out of transactions engaged in by such
735	entity or individual with such licensed office international
736	bank agency. For purposes of this paragraph, liabilities shall
737	be deemed to include, in the case of qualified financial
738	contracts, the lesser of the two amounts calculated with respect
739	to any such qualified financial contract pursuant to s.
740	663.172(3), and this paragraph shall not be deemed to authorize
741	setoff except as otherwise permissible under applicable law.
742	(4)  Any licensed office of an international banking
743	corporation of which the office has taken possession or which is
744	operating under restrictions imposed by duly constituted
745	authority may be permitted to resume business subject to the
746	office's discretion and any conditions that the office may
747	impose.
748	(5)  After the office takes possession of and determines to
749	liquidate the property and business of any licensed office of an
750	international banking corporation, the office shall make an
751	inventory, in duplicate, of the assets of such licensed office
752	corporation. One copy of such inventory shall be filed with the
753	office and one copy shall be filed with a court of competent
754	jurisdiction in the county in which the licensed office
755	principal office of such corporation is located.
756	(6)  Notwithstanding s. 658.84, all wages actually owing to
757	the employees of an international banking corporation for
758	services rendered within 3 months prior to the date possession
759	was taken by the office, and not exceeding $10,000 $2,000 to
760	each employee, shall be paid prior to the payment of any other
761	debt or claim, and, in the discretion of the office, may be paid
762	as soon as practicable after taking possession, except that at
763	all times the office shall reserve such funds as will, in the
764	office's opinion, be sufficient for the expenses of
765	administration.
766	(7)  The office is authorized, upon taking possession of
767	any licensed office of an international banking corporation, to
768	liquidate the affairs of such licensed office corporation and to
769	do all acts and to make such expenditures as in the office's
770	judgment are necessary to conserve the assets and business of
771	the corporation. The office shall proceed to collect the debts
772	due to the corporation. The office may, upon an order of a court
773	of competent jurisdiction, sell, assign, compromise, or
774	otherwise dispose of all bad or doubtful debts held by, and
775	compromise claims against, such corporation, other than deposit
776	claims, provided, whenever the principal amount of any such debt
777	or claim owed by or owing to such corporation does not exceed
778	$50,000, the office may sell, assign, compromise, or otherwise
779	dispose of such debt or claim upon such terms as the office may
780	deem to be in the best interests of such corporation wherever
781	situated. When the real property of an international banking
782	corporation, to be disposed of pursuant to this subsection, is
783	located in a county in this state other than a county in which
784	an application to the court for leave to dispose is made, the
785	office shall file a certified copy of the order of such court
786	authorizing such disposal in the office of the clerk of the
787	county in which such real property is located.
788	(8)  Moneys collected by the office in liquidating a
789	licensed office of an international banking corporation shall
790	be:
791	(a)  Deposited on demand, time or otherwise, in one or more
792	banks, associations, or trust companies organized under the laws
793	of this state and, in the case of insolvency or voluntary or
794	involuntary liquidation of the depositary, such deposits shall
795	be entitled to priority of payment equally with any other
796	priority given under the financial institutions codes;
797	(b)  Deposited on demand, time or otherwise, in one or more
798	national banks with a principal office located in this state and
799	with total assets exceeding $1 billion; or
800	(c)  Invested in obligations of the United States, or
801	obligation for which the full faith and credit of the United
802	States is pledged to provide for the payment of interest and
803	principal.
804	(9)  The office may appoint one or more persons as agent or
805	agents to assist in the liquidation of the business and affairs
806	of any international banking corporation, or any of the
807	corporation's licensed offices located in this state, in the
808	office's possession. The office shall serve a copy of the file a
809	certificate of such appointment to the international banking
810	corporation in the headquarters of the office and shall file a
811	certified copy of such certificate with a court of competent
812	jurisdiction in the county in which the licensed principal
813	office of such corporation is located in this state. The office
814	may employ such counsel and expert assistants under such titles
815	that the office shall assign to them, and may retain such
816	officers or employees of such corporation as the office deems
817	necessary in the liquidation and distribution of the
818	corporation's assets. The office may require such security as it
819	may deem proper from the agents and assistants appointed
820	pursuant to the provisions of this subsection.
821	(10)  When the office has taken possession of and is
822	liquidating the business and property in this state of any
823	international banking corporation under the provisions of this
824	part, the office shall be entitled to the appointment of a
825	single judge to supervise the liquidation in the judicial
826	circuit in which the licensed principal office of such
827	corporation is located. Such judge shall have the power to order
828	expedited or simplified procedures or order a reference whenever
829	necessary to resolve a matter in such liquidation.
830	(11)  The compensation of agents and any other employees
831	appointed by the office to assist in the liquidation of an
832	international banking corporation, or any of the corporation's
833	licensed offices located in this state bank agency, the
834	distribution of its assets, or the expenses of supervision,
835	shall be paid out of the assets of the corporation agency in the
836	hands of the office. Expenses of liquidation and approved claims
837	for fees and assessments due the office shall be given first
838	priority among unsecured creditors.
839	Section 17.  Section 663.171, Florida Statutes, is amended
840	to read:
841	663.171  Liquidation; repudiation of contracts.-
842	(1)  Except as otherwise provided in this section, when the
843	office has taken possession of the business and property in this
844	state of an international banking corporation, or any of the
845	corporation's licensed offices located in this state, the office
846	may assume or repudiate any contract, including an unexpired
847	lease, of the corporation:
848	(a)  To which such corporation is a party.
849	(b)  The performance of which the office, in its
850	discretion, determines to be burdensome.
851	(c)  The repudiation of which the office, in its
852	discretion, determines will promote the orderly administration
853	of the corporation's affairs.
854	(2)  After the expiration of 90 days after the date the
855	office takes possession of the business and property of an
856	international banking corporation, or any of the corporation's
857	licensed offices located in this state, any party to a contract
858	with such corporation may demand in writing that the office
859	assume or repudiate such contract. If the office has not assumed
860	or repudiated the contract within 15 calendar days after the
861	date of receipt of such demand, the affected party may bring an
862	action in a court of competent jurisdiction in the county in
863	which the licensed principal office of the corporation is
864	located to obtain an order requiring the office to assume or
865	repudiate the contract. If the office has not assumed or
866	repudiated the contract by at least 1 month before the last date
867	for filing claims against the corporation, such contract shall
868	be deemed repudiated.
869	(3)  Notwithstanding subsection (2), with respect to an
870	unexpired lease of the corporation for rental of real property
871	under which the corporation was a lessee, if the office remains
872	in possession of the leasehold, the office shall not be required
873	to assume or repudiate such lease and may continue in possession
874	of such leasehold for the remainder of the term of the lease in
875	accordance with the terms of the lease; provided, if the office
876	later repudiates the lease before the end of the lease term, any
877	amounts that may be due the lessor with respect to such lease
878	shall be calculated as provided by law.
879	(4)  Notwithstanding any other provision of this section
880	relating to liquidating an international banking corporation, or
881	any of the corporation's licensed offices located in this state,
882	the office shall not assume or repudiate any qualified financial
883	contract that the international banking corporation bank agency
884	entered into which is subject to a multibranch or multiagency
885	netting agreement or arrangement that provides for netting
886	present or future payment obligations or payment entitlements,
887	including termination or closeout values relating to the
888	obligations or entitlements, among the parties to the contract
889	and agreement or arrangement and the office may, but shall not
890	be required to, assume or repudiate any other qualified
891	financial contract an international banking corporation bank
892	agency entered into; provided, upon the repudiation of any
893	qualified financial contract or the termination or liquidation
894	of any qualified financial contract in accordance with its
895	terms, the liability of the office under such qualified
896	financial contract shall be determined in accordance with s.
897	663.172.
898	Section 18.  Section 663.172, Florida Statutes, is amended
899	to read:
900	663.172  Liability on repudiation or termination of
901	contracts.-
902	(1)  Except as otherwise provided in this section, upon the
903	repudiation or termination of any contract pursuant to s.
904	663.171, the liability of the office shall be limited to the
905	actual direct compensatory damages of the parties to the
906	contract, determined as of the date the office took possession
907	of the business and property of the international banking
908	corporation or the corporation's licensed offices located in
909	this state. The office shall not be liable for any future wages
910	other than severance payments, to the extent such payments are
911	reasonable standards, or for payments for future service, costs
912	of cover, or any consequential, punitive, or exemplary damages,
913	damages for lost profits or lost opportunity, or damages for
914	pain and suffering.
915	(2)  Except as otherwise provided in this section, the
916	liability of the office, upon the repudiation of any qualified
917	financial contract or in connection with the termination or
918	liquidation of any qualified financial contract in accordance
919	with the terms of such contract, shall be limited as provided in
920	subsection (1), except compensatory damages shall be deemed to
921	include normal and reasonable costs of cover or other reasonable
922	measures of damages used among participants in the market for
923	qualified financial contract claims, calculated as of the date
924	of repudiation or the date of the termination of such qualified
925	financial contract in accordance with the terms of the contract.
926	Upon the repudiation of any qualified financial contract or in
927	connection with the termination or liquidation of any qualified
928	financial contract in accordance with the terms of such
929	contract, the office shall be entitled to damages and such
930	damages shall be paid to the office upon written demand from the
931	office to the other party or parties to the contract.
932	(3)  In the case of the liquidation of the business and
933	property of an international banking corporation, or any of the
934	corporation's licensed offices located in this state, bank
935	agency of an international banking corporation by the office,
936	with respect to qualified financial contracts subject to netting
937	agreements or arrangements that provide for netting present or
938	future payment obligations or payment entitlements, including
939	termination or closeout values relating to the obligations or
940	entitlements, among the parties to the contracts and agreements
941	or arrangements, the liability of the office to any party to any
942	such qualified financial contract upon the repudiation or in any
943	connection with the termination or liquidation of such qualified
944	financial contract in accordance with the terms of such contract
945	shall be limited to the lesser of:
946	(a)  The global net payment obligation; or
947	(b)  The licensed office branch-to-agency or agency-to-
948	agency net payment obligation.
949	(4)  The liability of the office to a party under this
950	section shall be reduced by any amount otherwise paid or
951	received by the party with respect to the global net payment
952	obligation pursuant to such qualified financial contract which,
953	if added to the liability of the office under subsection (1),
954	would exceed the global net payment obligation. The liability of
955	the office under this section to a party to a qualified
956	financial contract also shall be reduced by the fair market
957	value or the amount of any proceeds of collateral that secures
958	and has been applied to satisfy the obligations of the
959	international banking corporation to the party pursuant to such
960	qualified financial contract. If netting under the applicable
961	netting agreement or arrangement results in a licensed office
962	branch-to-agency net payment entitlement, notwithstanding any
963	provision in any such contract that purports to effect a
964	forfeiture of such entitlement, the office may make written
965	demand for and shall be entitled to receive from the party to
966	such contract an amount not to exceed the lesser of the global
967	net payment entitlement or the licensed office branch-to-agency
968	net payment entitlement.
969	(5)  The liability of a party under this section shall be
970	reduced by any amount otherwise paid to or received by the
971	office or any other liquidator or receiver of the international
972	banking corporation or licensed office with respect to the
973	global net payment entitlement pursuant to such qualified
974	financial contract which, if added to the liability of the party
975	under this section, would exceed the global net payments
976	entitlement. The liability of a party under this section to the
977	office pursuant to such qualified financial contract also shall
978	be reduced by the fair market value of the amount of any
979	proceeds of the collateral that secures and has been applied to
980	satisfy the obligations of the party to the international
981	banking corporation pursuant to such qualified financial
982	contract.
983	Section 19.  This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.