HB 1121

1	A bill to be entitled
2	An act relating to financial institutions; amending s.
3	655.005, F.S.; revising definitions relating to the
4	financial institutions codes; amending s. 655.013, F.S.;
5	updating a reference; creating s. 655.03855, F.S.;
6	authorizing the office to appoint provisional directors or
7	executive officers; specifying the rights, qualifications,
8	and reporting requirements of such directors and officers;
9	clarifying the liability of such directors and officers
10	and of the office; amending s. 655.044, F.S.; specifying
11	which accounting practice must be followed by financial
12	institutions; amending s. 655.045, F.S.; authorizing the
13	office to conduct additional examinations of financial
14	institutions if warranted; providing for the use of
15	certain examination methods; authorizing the office to
16	enter into agreements with other regulatory agencies
17	relating to examinations; amending s. 655.41, F.S.;
18	revising definitions to conform provisions to changes made
19	by the act; amending s. 655.411, F.S.; revising the
20	criteria for approval of a financial entity's plan of
21	conversion; amending s. 655.414, F.S.; providing for the
22	transfer of assets from a federally chartered or out-of-
23	state chartered institution; amending ss. 655.416,
24	655.417, and 655.418, F.S.; conforming provisions to
25	changes made by the act; amending s. 655.4185, F.S.;
26	revising provisions relating to emergency actions that may
27	be taken for a failing financial institution; authorizing
28	the office to provide prior approval for the chartering of
29	an entity acquiring control of a failing institution;
30	amending s. 655.419, F.S.; deleting a provision relating
31	to actions conducted outside this state; amending s.
32	655.947, F.S.; conforming a cross-reference; amending s.
33	657.038, F.S.; specifying the loan factors that must be
34	considered when computing a person's total obligations for
35	purposes of extending credit; amending s. 657.042, F.S.;
36	revising criteria that limit a credit union's investment
37	of funds; requiring a credit union to establish policies
38	and procedures for evaluating risk; amending ss. 657.063
39	and 657.064, F.S.; conforming cross-references; amending
40	s. 658.12, F.S.; conforming a cross-reference; deleting a
41	provision relating to the application of definitions in
42	the financial institutions codes; repealing s. 658.20(3),
43	F.S., relating to applications for prior approval of
44	officers or directors; amending s. 658.28, F.S.; providing
45	additional limitations on acquiring or controlling another
46	bank; repealing s. 658.295, F.S., relating to the Florida
47	Interstate Banking Act; amending s. 658.2953, F.S.;
48	revising and updating provisions relating to Florida bank
49	mergers with out-of-state banks; deleting legislative
50	intent; repealing s. 658.296, F.S., relating to the
51	control of deposit-taking institutions; amending s.
52	658.36, F.S.; authorizing the office to approve a special
53	stock offering plan under certain circumstances; amending
54	s. 658.41, F.S.; clarifying that state laws do not
55	restrict the right of a state bank or trust company to
56	merge with an out-of-state bank; amending s. 658.48, F.S.;
57	revising provisions relating to bank loans; specifying the
58	process for computing the liabilities of a person seeking
59	a loan; amending s. 658.53, F.S.; deleting a provision
60	providing that unpaid proceeds of sales are used to
61	evaluate the adequacy of a bank's capital; repealing ss.
62	658.65, 665.013(33), and 667.003(35), F.S., relating to
63	remote financial service units; amending s. 658.67, F.S.;
64	updating provisions relating to the investment powers of a
65	bank or trust company; requiring banks and trust companies
66	to establish procedures for evaluating risk; amending ss.
67	288.772, 288.99, 440.12, 440.20, 445.051, 489.503,
68	501.005, 501.165, 624.605, 626.321, 626.730, and 626.9885,
69	F.S.; conforming cross-references; providing an effective
70	date.
71
72	Be It Enacted by the Legislature of the State of Florida:
73
74	Section 1.  Section 655.005, Florida Statutes, is reordered
75	and amended to read:
76	655.005  Definitions.-
77	(1)  As used in the financial institutions codes, unless
78	the context otherwise requires, the term:
79	(a)  "Affiliate" means a holding company of a any financial
80	institution established holding company pursuant to state or
81	federal law, a or any subsidiary or service corporation of such
82	a holding company, or a subsidiary or service corporation of a
83	financial institution.
84	(b)  "Appropriate federal regulatory agency" means the
85	federal financial institution regulatory agency that has granted
86	federal statutory authority over a financial institution.
87	(c) "Bank holding company" means a business organization
88	that is a bank holding company under the Bank Holding Company
89	Act of 1956, as amended, 12 U.S.C. ss. 1841 et seq., or is
90	otherwise determined or authorized by the office to be a holding
91	company of a financial institution pursuant to ss. 658.27-
92	658.29.
93	(d)(c)  "Capital accounts" means the aggregate value of
94	unimpaired capital stock based on the par value of the shares,
95	plus any unimpaired surplus, and undivided profits or retained
96	earnings of a financial institution. For the purposes of
97	determining insolvency or imminent insolvency, the term does not
98	include allowances for loan or lease loss reserves, intangible
99	assets, subordinated debt, deferred tax assets, or similar
100	assets.
101	(e)(d)  "Capital stock" means the aggregate of shares of
102	stock issued to create nonwithdrawable capital issued.
103	(f)(e)  "Commission" means the Financial Services
104	Commission.
105	(h)(f)  "Executive officer" means an individual, whether or
106	not the individual has an official title or receives a salary or
107	other compensation, who participates or has authority to
108	participate, other than in the capacity of a director, in the
109	major policymaking functions of a the financial institution.;
110	The term does not include an individual who may have an official
111	title and may exercise discretion in the performance of duties
112	and functions, including discretion in the making of loans, but
113	who does not participate in the determination of major policies
114	of the financial institution and whose decisions are limited by
115	policy standards established by other officers other than such
116	individual, whether or not the such policy standards have been
117	adopted by the board of directors. The chair of the board of
118	directors, the president, the chief executive officer, the chief
119	financial officer, the senior loan officer, and every executive
120	vice president of a financial institution, and the senior trust
121	officer of a trust company, are presumed to be executive
122	officers unless any such officer is excluded, by resolution of
123	the board of directors or by the bylaws of the financial
124	institution, from participating, other than in the capacity of a
125	director, in major policymaking functions of the financial
126	institution and the individual holding such office so excluded
127	does not actually participate therein.
128	(i)(g)  "Federal financial institution" means a federally
129	or nationally chartered or organized financial institution.
130	(j)(h)  "Financial institution" means a state or federal
131	savings or thrift association, bank, savings bank, trust
132	company, international bank agency, international banking
133	corporation, international branch, international representative
134	office, international administrative office, international trust
135	company representative office, or credit union, or an agreement
136	corporation operating pursuant to s. 25 of the Federal Reserve
137	Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized
138	pursuant to s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss.
139	611 et seq.
140	(k)(i)  "Financial institution-affiliated party" means:
141	1.  A Any director, officer, employee, or controlling
142	stockholder, (other than a financial institution holding
143	company,) of, or agent for, a financial institution, subsidiary,
144	or service corporation;
145	2.  Any other person who has filed or is required to file a
146	change-of-control notice with the appropriate state or federal
147	regulatory agency;
148	3.  A Any stockholder, (other than a financial institution
149	holding company), a any joint venture partner, or any other
150	person as determined by the office who participates in the
151	conduct of the affairs of a financial institution, subsidiary,
152	or service corporation; or
153	4.  An Any independent contractor, (including an any
154	attorney, appraiser, consultant, or accountant,) who knowingly
155	or recklessly participates in:
156	a.  A Any violation of any law or regulation;
157	b.  A Any breach of fiduciary duty; or
158	c.  An Any unsafe and unsound practice,
159
160	which caused or is likely to cause more than a minimal financial
161	loss to, or a significant adverse effect on, the financial
162	institution, subsidiary, or service corporation.
163	(l)(j)  "Financial institutions codes" means:
164	1.  Chapter 655, relating to financial institutions
165	generally;
166	2.  Chapter 657, relating to credit unions;
167	3.  Chapter 658, relating to banks and trust companies;
168	4.  Chapter 660, relating to trust business;
169	5.  Chapter 663, relating to international banking
170	corporations;
171	6.  Chapter 665, relating to associations; and
172	7.  Chapter 667, relating to savings banks.
173	(m)  "Home state" means:
174	1.  The state where a financial institution is chartered.
175	2.  The state where the main office of a federal financial
176	institution is located.
177	3.  The state determined to be the home state of an
178	international banking corporation pursuant to 12 U.S.C. s.
179	3103(c).
180	(n) "Home state regulator" means, with respect to an out-
181	of-state state financial institution, the financial institution
182	regulatory agency of the state in which the institution is
183	chartered.
184	(o) "Host state" means a state, other than the home state,
185	in which the financial institution seeks to establish or
186	maintains a branch or nonbranch office.
187	(p)(k)  "Imminently insolvent" means a condition in which a
188	financial institution has total capital accounts, or equity in
189	the case of a credit union, of less than 2 percent of its total
190	assets, after adjustment for apparent losses.
191	(q)(l)  "Insolvent" means a condition in which:
192	1.  The capital accounts, or equity in the case of a credit
193	union, and all assets of a financial institution are
194	insufficient to meet liabilities;
195	2.  The financial institution is unable to meet current
196	obligations as they mature, even though assets may exceed
197	liabilities; or
198	3.  The capital accounts, or equity in the case of a credit
199	union, of a financial institution, or equity in the case of a
200	credit union, are exhausted by losses and no immediate prospect
201	of replacement exists.
202	(r)(m)  "Main office" or "principal office" of a financial
203	institution means the main business office designated or
204	provided for in its the articles of incorporation or bylaws of a
205	financial institution at an such identified location as has been
206	or is hereafter approved by the office of Financial Regulation,
207	in the case of a state financial institution, or by the
208	appropriate federal regulatory agency, in the case of a federal
209	financial institution.; and, With respect to the trust
210	department of a bank or association that has trust powers, the
211	each of these terms mean means the office or place of business
212	of the trust department at an such identified location, which
213	need not be the same location as the main office of the bank or
214	association exclusive of the trust department, as has been or is
215	hereafter approved by the office of Financial Regulation, in the
216	case of a state bank or association that has a trust department,
217	or by the appropriate federal regulatory agency, in the case of
218	a national bank or federal association that has a trust
219	department. The "main office" or "principal office" of a trust
220	company means the office designated or provided for as such in
221	its articles of incorporation, at an such identified location as
222	has been or is hereafter approved by the relevant chartering
223	authority.
224	(t)(n)  "Officer" of a financial institution means an any
225	individual duly elected or appointed to, or otherwise performing
226	the duties and functions appropriate to, any position or office
227	having the designation or title of chair of the board of
228	directors, vice chair of the board of directors, chair of the
229	executive committee, president, vice president, assistant vice
230	president, cashier or assistant cashier, comptroller, assistant
231	comptroller, trust officer, assistant trust officer, secretary
232	or assistant secretary (of a trust company), or any other office
233	or officer designated in, or as provided by, the articles of
234	incorporation or bylaws, or as determined by the office.
235	(u) "Out-of-state financial institution" means a financial
236	institution whose home state is a state other than this state.
237	(v)  "Related interest" means, with respect to any person,
238	the person's spouse, partner, sibling, parent, child, or other
239	individual residing in the same household as the person. With
240	respect to any person, the term means a company, partnership,
241	corporation, or other business organization controlled by the
242	person. A person has control if the person:
243	1.  Owns, controls, or has the power to vote 25 percent or
244	more of any class of voting securities of the organization;
245	2.  Controls in any manner the election of a majority of
246	the directors of the organization; or
247	3.  Has the power to exercise a controlling influence over
248	the management or policies of the organization.
249	(w)(o)  "Service corporation" means a corporation that is
250	organized to perform, for two or more financial institutions,
251	services related or incidental to the business of a financial
252	institution and that is wholly or partially owned or controlled
253	by one or more financial institutions.
254	(x)  "State," when used in the context of a state other
255	than this state, means any other state of the United States, the
256	District of Columbia, and any territories of the United States.
257	(y)(p)  "State financial institution" means a state-
258	chartered or state-organized financial institution association,
259	bank, investment company, trust company, international bank
260	agency, international branch, international representative
261	office, international administrative office, international trust
262	company representative office, or credit union.
263	(z)(q)  "Subsidiary" means an any organization that
264	permitted by the office which is controlled by a financial
265	institution or a holding company of a financial institution.
266	(aa)(r)  "Unsafe or unsound practice" means any practice or
267	conduct found by the office to be contrary to generally accepted
268	standards applicable to a the specific financial institution, or
269	a violation of any prior agreement in writing or order of a
270	state or federal regulatory agency, which practice, conduct, or
271	violation creates the likelihood of loss, insolvency, or
272	dissipation of assets or otherwise prejudices the interest of
273	the specific financial institution or its depositors or members.
274	In making this determination, the office must consider the size
275	and condition of the financial institution, the gravity of the
276	violation, and the prior conduct of the person or institution
277	involved.
278	(bb)(s)  "Office" means the Office of Financial Regulation.
279	(cc)(t)  "Debt cancellation products" means loan, lease, or
280	retail installment contract terms, or modifications or addenda
281	to such loan, lease, or retail installment contracts, under
282	which a creditor agrees to cancel or suspend all or part of a
283	customer's obligation to make payments upon the occurrence of
284	specified events and includes, but is not limited to, debt
285	cancellation contracts, debt suspension agreements, and
286	guaranteed asset protection contracts offered by financial
287	institutions, insured depository institutions as defined in 12
288	U.S.C. s. 1813(c), and subsidiaries of such institutions.
289	However, The term "debt cancellation products" does not include
290	title insurance as defined in s. 624.608.
291	(2) Terms used but not defined in the financial
292	institutions codes, but which are defined in Title XXXIX,
293	entitled Commercial Relations, as enacted in chapters 668
294	through 680, have the meanings ascribed to them in Title XXXIX.
295	(2)  Terms which are defined in the financial institutions
296	codes, unless the context otherwise requires, have the meanings
297	ascribed to them therein.
298	Section 2.  Section 655.013, Florida Statutes, is amended
299	to read:
300	655.013  Effect on existing financial institutions.-The
301	charters of state financial institutions existing on July 1,
302	1992, at the time of the adoption of this act shall continue in
303	full force and effect. However, after that date, all state
304	financial institutions and, to the extent applicable, all
305	financial institutions shall operate hereafter be operated in
306	accordance with the provisions of the financial institutions
307	codes.
308	Section 3.  Section 655.03855, Florida Statutes, is created
309	to read:
310	655.03855  Provisional directors and executive officers.-
311	(1)  If a state financial institution has an insufficient
312	number of directors to meet the minimum requirements of s.
313	657.021 or s. 658.33 for 30 days or longer, there are an
314	insufficient number of executive officers, or the qualifications
315	of the executive officers are insufficient to operate the
316	financial institution in a safe and sound manner, the office may
317	appoint one or more provisional directors or executive officers
318	by order.
319	(2)  A provisional director has all the rights and powers
320	of a duly elected director, including the right to notice of and
321	to vote at meetings of directors. A provisional executive
322	officer has all the rights and powers provided in the financial
323	institution's articles of incorporation or bylaws, or as
324	specified by the office in the appointment order. A provisional
325	director or executive officer must be an impartial person and
326	may not be a shareholder, member, or creditor of the financial
327	institution or its affiliate. Additional qualifications, if any,
328	may be determined by the office consistent with the financial
329	institutions codes. Provisional directors and executive officers
330	shall serve until the provisional director's or executive
331	officer's tenure is ended by order of the office.
332	(3)  A provisional director or executive officer is not
333	liable for any action taken or decision made, except as provided
334	in the financial institutions codes and s. 607.0831. If directed
335	by the office, provisional directors and executive officers must
336	submit reports to the office as to the financial and operating
337	condition of the financial institution and recommendations as to
338	appropriate corrective actions to be taken by the institution.
339	(4)  The office shall allow reasonable compensation, if
340	applicable, to a provisional director or executive officer
341	appointed under this section for services rendered, and
342	reimbursement or direct payment of all reasonable costs and
343	expenses, which shall be paid by the financial institution. The
344	office is not liable for any appointment, action, or decision
345	made pursuant to this section.
346	Section 4.  Subsection (1) of section 655.044, Florida
347	Statutes, is amended to read:
348	655.044  Accounting practices; bad debts ineligible to be
349	carried as assets.-
350	(1)  Except as otherwise provided by law, a state financial
351	institution shall observe United States generally accepted
352	accounting principles and practices. The commission may
353	authorize by rule exceptions to such accounting practices by
354	rule as necessary.
355	Section 5.  Subsections (1) and (4) of section 655.045,
356	Florida Statutes, are amended to read:
357	655.045  Examinations, reports, and internal audits;
358	penalty.-
359	(1)(a)  The office shall conduct an examination of the
360	condition of each state financial institution during each 18-
361	month period, beginning July 1, 1981. The office may conduct
362	more frequent examinations based upon the risk profile of the
363	financial institution, prior examination results, or significant
364	changes in the institution or its operations. The office may use
365	continuous, phase, or other flexible scheduling examinations
366	methods for very large or complex state financial institutions
367	and financial institutions owned or controlled by a multi-
368	financial institution holding company. The office shall consider
369	examination guidelines from federal regulatory agencies in order
370	to facilitate, coordinate, and standardize examination
371	processes. The office may accept an examination made by the
372	appropriate federal regulator, insuring or guaranteeing
373	corporation, or agency with respect to the condition of the
374	state financial institution or may make a joint or concurrent
375	examination with the appropriate federal regulator, insuring or
376	guaranteeing corporation, or agency. However, at least once
377	during each 36-month period beginning on July 3, 1992, the
378	office shall conduct an examination of each state financial
379	institution in such a manner as to allow the preparation of a
380	complete examination report not subject to the right of any
381	federal or other non-Florida entity to limit access to the
382	information contained therein.
383	(a)  With respect to, and examination of, the condition of
384	a state institution, the office may accept an examination made
385	by an appropriate federal regulatory agency, or may make a joint
386	or concurrent examination with the federal agency. The office
387	may furnish a copy of all examinations or reviews made of
388	financial institutions or their affiliates to the state or
389	federal agencies participating in the examination,
390	investigation, or review, or as otherwise authorized by s.
391	655.057. The office may also enter into agreements with other
392	appropriate state and federal financial regulatory agencies to
393	facilitate the efficient utilization and coordination of
394	resources in the examinations.
395	(b)  If, as a part of an examination or investigation of a
396	state financial institution, subsidiary, or service corporation,
397	the office has reason to believe that an affiliate is engaged in
398	an unsafe or unsound practice or that the conduct or business
399	operations of an affiliate may have has a negative impact on the
400	state financial institution, subsidiary, or service corporation,
401	then the office may conduct such review such books and records
402	as are reasonably related to the examination or investigation of
403	the affiliate as the office deems necessary. The office may
404	furnish a copy of all examinations or reviews made of such
405	financial institutions or their affiliates to the state or
406	federal financial institution regulators participating in the
407	examination of a bank holding company; an association holding
408	company; or any of their subsidiaries, service corporations, or
409	affiliates; an insuring or guaranteeing corporation or agency or
410	its representatives; or state financial institution regulators
411	participating in the examination of a holding company or its
412	subsidiaries.
413	(c)(b)  The office may recover the costs of examination and
414	supervision of a state financial institution, subsidiary, or
415	service corporation that is determined by the office to be
416	engaged in an unsafe or unsound practice. The office may also
417	recover the costs of any review conducted pursuant to paragraph
418	(b) (a) of any affiliate of a state financial institution
419	determined by the office to have contributed to an unsafe or
420	unsound practice at a state financial institution, subsidiary,
421	or service corporation.
422	(d)(c)  For the purposes of this section, the term "costs"
423	means the salary and travel expenses directly attributable to
424	the field staff examining the state financial institution,
425	subsidiary, or service corporation, and the travel expenses of
426	any supervisory staff required as a result of examination
427	findings. The mailing of any costs incurred under this
428	subsection must be postmarked within not later than 30 days
429	after the date of receipt of a notice stating that such costs
430	are due. The office may levy a late payment of up to $100 per
431	day or part thereof that a payment is overdue, unless it is
432	excused for good cause. However, for intentional late payment of
433	costs, the office may levy an administrative fine of up to
434	$1,000 per day for each day the payment is overdue.
435	(e)(d)  The office may require an audit of a any state
436	financial institution, subsidiary, or service corporation by an
437	independent certified public accountant, or other person
438	approved by the office, if whenever the office, after conducting
439	an examination of the such state financial institution,
440	subsidiary, or service corporation, or after accepting an
441	examination of such state financial institution by an the
442	appropriate state or federal regulatory agency, determines that
443	such an audit is necessary in order to ascertain the condition
444	of the financial institution, subsidiary, or service
445	corporation. The cost of such audit shall be paid by the state
446	financial institution, subsidiary, or state service corporation.
447	(4)  A copy of the report of each examination must be
448	furnished to the entity financial institution examined. Such
449	report of examination shall be presented to the board of
450	directors at its next regular or special meeting.
451	Section 6.  Section 655.41, Florida Statutes, is amended to
452	read:
453	655.41  Cross-industry Conversions, mergers,
454	consolidations, and acquisitions; Definitions used in ss.
455	655.41-655.419.-As used in ss.      655.41-655.419, the
456	term:
457	(1)  "Financial entity" means a financial institution whose
458	an association, bank, credit union, savings bank, Edge Act or
459	agreement corporation, or trust company organized under the laws
460	of this state or organized under the laws of the United States
461	and having its principal office is place of business in this
462	state.
463	(2)  "Capital stock financial institution" means a
464	financial entity that which is authorized to issue capital
465	stock.
466	(3)  "Mutual financial institution" means a financial
467	institution that entity which is not authorized to issue stock
468	and the assets of which are owned by its members.
469	Section 7.  Paragraphs (a) and (c) of subsection (1) of
470	section 655.411, Florida Statutes, are amended to read:
471	655.411  Conversion of charter.-
472	(1)  A Any financial entity may apply to the office for
473	permission to convert its charter without changing its a change
474	of business form or convert its charter in order to do business
475	as another type of financial entity in accordance with the
476	following procedures:
477	(a)  The board of directors must approve a plan of
478	conversion by a majority vote of a majority of all the
479	directors. The plan must include a statement of:
480	1.  The type of financial entity which would result if the
481	application were approved and the proposed name under which it
482	would do business.
483	2.  The method and schedule for terminating any activities
484	and disposing of any assets or liabilities that which would not
485	conform to the requirements of applicable to the resulting
486	financial entity.
487	3.  The competitive impact of such change on the financial
488	entity's business plan and operations, including any effect on
489	the availability of particular financial services in the market
490	area served by the financial entity.
491	4.  Such financial data as may be required to determine
492	compliance with the capital, reserve, and liquidity requirements
493	applicable to the resulting financial entity.
494	5.  Such other information as the commission may by rule
495	require.
496	(c)  The office shall approve the plan if it finds that:
497	1.  The resulting financial entity would have an adequate
498	capital structure with regard to its activities and its deposit
499	liabilities.
500	2.  The proposed conversion would not cause a substantially
501	adverse effect on the financial condition of the any financial
502	entity already established in the primary service area.
503	3.  The officers and directors have sufficient experience,
504	ability, and standing to indicate a reasonable promise for the
505	successful operation of the resulting financial entity.
506	4.  The schedule for termination of any nonconforming
507	activities and disposition of any nonconforming assets and
508	liabilities is reasonably prompt, and the plan for such
509	termination and disposition does not include an any unsafe or
510	unsound practice.
511	5.  None of The officers or directors have not has been
512	convicted of, or pled guilty or nolo contendere to, a violation
513	of s. 655.50, relating to the Florida Control of money
514	laundering in financial institutions Act; chapter 896, relating
515	to offenses related to financial transactions; or any similar
516	state or federal law.
517	6.  The resulting financial entity is able to comply with
518	the applicable terms of any regulatory action in effect before
519	the date of the conversion.
520	7.  The current and resulting primary federal regulatory
521	agencies do not object to the proposed conversion.
522
523	If the office disapproves the plan, it shall state its
524	objections and give the financial entity an opportunity to the
525	parties to amend the plan to overcome such objections. The
526	office may deny an application by an any financial entity that
527	which is subject to a cease and desist order or other
528	supervisory restriction or order imposed by a any state or
529	federal supervisory authority, insurer, or guarantor.
530	Section 8.  Section 655.414, Florida Statutes, is amended
531	to read:
532	655.414  Acquisition of assets; assumption of liabilities.-
533	With prior approval of the office and upon such conditions as
534	the commission prescribes by rule, a any financial entity may
535	acquire all or substantially all of the assets of, or assume all
536	or any part of the liabilities of, any other financial
537	institution entity in accordance with the procedures and subject
538	to the following conditions and limitations:
539	(1)  ADOPTION OF A PLAN.-The board of directors of the
540	acquiring or assuming financial entity and the board of
541	directors of the transferring financial institution entity must
542	adopt, by a majority vote, a plan for such acquisition,
543	assumption, or sale on such terms that as are mutually agreed
544	upon. The plan must include:
545	(a)  The names and types of financial institutions entities
546	involved.
547	(b)  A statement setting forth the material terms of the
548	proposed acquisition, assumption, or sale, including the plan
549	for disposition of all assets and liabilities not subject to the
550	plan.
551	(c)  A provision for liquidation, if applicable, of the
552	transferring financial institution entity upon execution of the
553	plan, or a provision setting forth the business plan for the
554	continued operation of each financial institution after the
555	execution of the plan.
556	(d)  A statement that the entire transaction is subject to
557	written approval of the office and approval of the members or
558	stockholders of the transferring financial institution entity.
559	(e)  If a stock financial institution is the transferring
560	financial institution entity and the proposed sale is not to be
561	for cash, a clear and concise statement that dissenting
562	stockholders of the institution such financial entity are
563	entitled to the rights set forth in s. 658.44(4) and (5).
564	(f)  The proposed effective date of the such acquisition,
565	assumption, or sale and such other information and provisions as
566	may be necessary to execute the transaction or as may be
567	required by the office.
568	(2)  APPROVAL OF OFFICE.-Following approval by the board of
569	directors of each participating financial institution entity,
570	the plan, together with certified copies of the authorizing
571	resolutions adopted by the boards and a completed application
572	with a nonrefundable filing fee, must be forwarded to the office
573	for its approval or disapproval. The office shall approve the
574	plan of acquisition, assumption, or sale if it appears that:
575	(a)  The resulting financial entity or entities would have
576	an adequate capital structure in relation to its activities and
577	its deposit liabilities;
578	(b)  The plan is fair to all parties; and
579	(c)  The plan is not contrary to the public interest.
580
581	If the office disapproves the plan, it shall state its
582	objections and give the parties an opportunity to the parties to
583	amend the plan to overcome such objections.
584	(3)  VOTE OF MEMBERS OR STOCKHOLDERS.-If the office
585	approves the plan, it may be submitted to the members or
586	stockholders of the transferring financial institution entity at
587	an annual meeting or at a any special meeting called to consider
588	such action. Upon a majority favorable vote of 51 percent or
589	more of the total number of votes eligible to be cast or, in the
590	case of a credit union, a majority vote 51 percent or more of
591	the members present at the meeting, the plan is adopted.
592	(4)  ADOPTED PLAN; CERTIFICATE; ABANDONMENT.-
593	(a)  If the plan is adopted by the members or stockholders
594	of the transferring financial institution entity, the president
595	or vice president and the cashier, manager, or corporate
596	secretary of such institution financial entity shall submit the
597	adopted plan to the office, together with a certified copy of
598	the resolution of the members or stockholders approving it.
599	(b)  Upon receipt of the certified copies and evidence that
600	the participating financial institutions entities have complied
601	with all applicable state and federal law and rules regulations,
602	the office shall certify, in writing, to the participants that
603	the plan has been approved.
604	(c)  Notwithstanding approval of the members or
605	stockholders or certification by the office, the board of
606	directors of the transferring financial institution entity may,
607	in its discretion, abandon such a transaction without further
608	action or approval by the members or stockholders, subject to
609	the rights of third parties under any contracts relating
610	thereto.
611	(5)  FEDERALLY CHARTERED OR OUT-OF-STATE INSTITUTION AS A
612	PARTICIPANT.-If one of the participants in a transaction under
613	this section is a federally chartered financial institution or
614	an out-of-state financial institution entity, all participants
615	must also comply with such requirements as may be imposed by
616	federal and other state law for the such an acquisition,
617	assumption, or sale and provide evidence of such compliance to
618	the office as a condition precedent to the issuance of a
619	certificate authorizing the transaction; however, if the
620	purchasing or assuming financial institution entity is a federal
621	or out-of-state state-chartered federally chartered financial
622	institution and the transferring state financial entity will be
623	liquidated, approval of the office is not required.
624	(6)  STOCK INSTITUTION ACQUIRING MUTUAL INSTITUTION.-A
625	mutual financial institution may not sell all or substantially
626	all of its assets to a stock financial institution entity until
627	it has first converted into a capital stock financial
628	institution in accordance with s. 665.033(1) and (2). For this
629	purpose, references in s. 665.033(1) and (2) to associations are
630	deemed to refer also refer to credit unions; but, in the case of
631	a credit union, the provision therein concerning proxy
632	statements does not apply.
633	Section 9.  Section 655.416, Florida Statutes, is amended
634	to read:
635	655.416  Book value of assets.-Upon the effective date of a
636	merger, consolidation, conversion, or acquisition pursuant to
637	ss. 655.41-655.419, an asset may not be carried on the books of
638	the resulting financial entity at a valuation higher than that
639	at which it was carried on the books of a participating or
640	converting financial institution entity at the time of its last
641	examination by a state or federal examiner before such the
642	effective date of such merger, consolidation, conversion, or
643	acquisition, without written approval from the office.
644	Section 10.  Section 655.417, Florida Statutes, is amended
645	to read:
646	655.417  Effect of merger, consolidation, conversion, or
647	acquisition.-From and after the effective date of a merger,
648	consolidation, conversion, or acquisition, the resulting
649	financial entity or entities may conduct business in accordance
650	with the terms of the plan as approved, subject to the following
651	conditions and limitations; provided that:
652	(1)  CONTINUING ENTITY.-Even though the charter of a
653	participating or converting financial institution may have
654	entity has been terminated, the resulting financial entity is
655	deemed to be a continuation of the participating or converting
656	financial institution entity such that all acquired property of
657	the participating or converting institution financial entity,
658	including rights, titles, and interests in and to all property
659	of whatsoever kind, whether real, personal, or mixed, and things
660	in action, and all rights, privileges, interests, and assets of
661	any conceivable value or benefit which are then existing, or
662	pertaining to it, or which would inure to it, are immediately
663	vested in and continue to be the property of the resulting
664	financial entity, by act of law and without any conveyance or
665	transfer and without further act or deed. The resulting; and
666	such financial entity has, holds, and enjoys the same in its own
667	right as fully and to the same extent as the same was possessed,
668	held, and enjoyed by the participating or converting financial
669	institution entity; and, at the time of the taking effect of
670	such merger, consolidation, conversion, or acquisition takes
671	effect, the resulting financial entity has and succeeds to all
672	the rights, obligations, and relations of the participating or
673	converting institution financial entity.
674	(2)  EFFECT ON JUDICIAL PROCEEDINGS.-Any pending action or
675	other judicial proceeding to which the participating or
676	converting financial institution entity is a party is not abated
677	by reason of such merger, consolidation, conversion, or
678	acquisition but may be prosecuted to final judgment, order, or
679	decree in the same manner as if such action had not been taken.;
680	and The resulting financial entity resulting from such merger,
681	consolidation, conversion, or acquisition may continue such
682	action in its new name,; and any judgment, order, or decree that
683	may be rendered for or against it which might have been rendered
684	for or against the participating or converting institution may
685	be rendered for or against the resulting financial entity
686	previously involved in such judicial proceeding.
687	(3)  CREDITORS' RIGHTS.-The resulting financial entity in a
688	merger, consolidation, conversion, or acquisition is liable for
689	all obligations of the participating or converting financial
690	institution entity which existed before prior to such action,;
691	and the action taken does not prejudice the right of a creditor
692	of the participating or converting financial institution
693	financial entity to have his or her debts paid out of the assets
694	thereof, nor may such creditor be deprived of, or prejudiced in,
695	any action against the officers, directors, members, or other
696	persons participating in the conduct of the affairs of a
697	participating or converting financial institution entity for any
698	neglect or misconduct.
699	(4)  EXCEPTION.-In the case of an acquisition of assets or
700	assumption of liabilities pursuant to s. 655.414, the provisions
701	of subsections (1), (2), and (3) apply only to the assets
702	acquired and the liabilities assumed by the resulting financial
703	entity if, provided sufficient assets to satisfy all liabilities
704	not assumed by the resulting financial entity are retained by
705	the transferring financial institution entity.
706	Section 11.  Section 655.418, Florida Statutes, is amended
707	to read:
708	655.418  Nonconforming activities; cessation.-If, as a
709	result of a merger, consolidation, conversion, or acquisition
710	pursuant to ss. 655.41-655.419, the resulting financial entity
711	is to be of a different type or of a different character than
712	any one or all of the participating or converting financial
713	institutions entities, such resulting financial entity is will
714	be subject to the following conditions and limitations:
715	(1)  PLAN FOR TERMINATION.-The plan of merger,
716	consolidation, conversion, or acquisition must set forth the
717	method and schedule for terminating those activities that are
718	not permitted by the laws of this state for the resulting
719	financial entity but that were authorized for any of the
720	participating or converting financial institutions entities.
721	(2)  EFFECTIVE DATE.-The plan of merger, consolidation,
722	conversion, or acquisition must state that, from the effective
723	date of such action, the resulting financial entity will not
724	engage in any nonconforming activities, except to the extent
725	necessary to fulfill obligations existing before prior to the
726	merger, consolidation, conversion, or acquisition, pursuant to
727	subsection (4).
728	(3)  COMPLIANCE WITH LENDING AND INVESTMENT LIMITATIONS.-
729	If, as a result of such merger, consolidation, conversion, or
730	acquisition, the resulting financial entity will exceed any
731	lending, investment, or other limitations imposed by law, the
732	financial entity must shall conform to such limitations within
733	such period of time as is established by the office.
734	(4)  DIVESTITURE.-The office may, as a condition to such
735	merger, consolidation, conversion, or acquisition, require a
736	nonconforming activity to be divested in accordance with such
737	additional requirements as it considers appropriate under the
738	circumstances.
739	Section 12.  Section 655.4185, Florida Statutes, is amended
740	to read:
741	655.4185  Emergency action.-
742	(1)  Notwithstanding any other provision of the financial
743	institutions codes or of chapter 120, if the office or the
744	appropriate federal regulatory agency, or the appropriate home
745	state regulatory agency for an out-of-state state financial
746	institution, finds that immediate action is necessary in order
747	to prevent the probable failure of one or more financial
748	institutions, aid in the resolution of a receivership,
749	conservatorship, or liquidation of a financial institution, or
750	otherwise protect the depositors of a failing financial
751	institution, which in this subsection may be referred to as a
752	"failing financial entity," the office may, with the concurrence
753	of the appropriate federal regulatory agency in the case of any
754	financial institution the deposits of which are insured by the
755	Federal Deposit Insurance Corporation or the National Credit
756	Union Administration, issue an emergency order authorizing:
757	(a)  The merger of any such failing institution financial
758	entity with an appropriate state financial institution entity;
759	(b)  An appropriate state financial institution entity to
760	acquire any of the assets or and assume any of the liabilities,
761	or any combination thereof, of the any such failing institution
762	financial entity, including all rights, powers, and
763	responsibilities as fiduciary in an instance in which the
764	failing financial institution is actively engaged in the
765	exercise of trust powers;
766	(c)  The conversion of a any such failing institution
767	financial entity into a state financial institution that is not
768	failing entity; or
769	(d)  The chartering of a new state financial institution
770	entity to acquire any of the assets or and assume any of the
771	liabilities, or any combination thereof, of a any such failing
772	institution financial entity and to assume rights, powers, and
773	responsibilities as fiduciary in a case in which such failing
774	institution financial entity is engaged in the exercise of trust
775	powers;.
776	(e)  The direct or indirect acquisition of control of the
777	failing institution;
778	(f)  The appointment of provisional directors, executive
779	officers, or other employees for the failing institution
780	pursuant to s. 655.03855; or
781	(g)  Any other capital or liquidity restoration plan or
782	action deemed prudent by the office.
783	(2)  Any such finding by the office must be based upon
784	reports or other information furnished to it by the failing
785	financial institution, by a state or federal financial
786	institution examiner or regulatory entity, or upon other
787	evidence from which it is reasonable to conclude that the
788	failing such financial institution is insolvent, or is
789	threatened with imminent insolvency, or lacks a board of
790	directors or executive management that can operate the entity in
791	a safe and sound manner. The office may disallow intangible
792	assets, deferred tax assets, loan or lease loss reserves,
793	subordinated debt, and illegally obtained currency, monetary
794	instruments, funds, or other financial resources from the
795	capitalization requirements of the financial institutions codes.
796	The stockholders of a failing institution bank, association, or
797	trust company that is acquired by another financial institution
798	bank or trust company under this section are entitled to the
799	same procedural rights and to compensation for the remaining
800	value of their shares as is provided for dissenters in s.
801	658.44, except that they may not have no right to vote against
802	the transaction. Any transaction authorized by this section may
803	be accomplished through the organization of a successor
804	financial institution.
805	(3)  The office may provide prior approval of business
806	entities or individuals who, pursuant to this section, may
807	charter a new state financial institution or acquire control of,
808	purchase, merge with, or become directors and executive officers
809	of, a failing financial institution. The application for prior
810	approval must be in the form prescribed by the commission by
811	rule and be accompanied by a nonrefundable filing fee of $7,500.
812	Section 13.  Section 655.419, Florida Statutes, is amended
813	to read:
814	655.419  Effect.-The provisions of ss. 655.41-     655.419
815	relating to merger, consolidation, conversion, or acquisition of
816	assets of any financial institution entity are cumulative with
817	all other provisions of the financial institutions codes and do
818	not modify, limit, or repeal any of such other provisions except
819	as expressly provided in the codes or as stated in an emergency
820	order issued by the office pursuant to s. 655.4185 stated
821	herein. Additionally, the provisions of ss. 655.41-     655.419
822	do not grant any authority, directly or indirectly, for any
823	bank, association, trust company, association holding company,
824	or bank holding company, the operations of which are principally
825	conducted outside this state, to acquire, convert to, or merge
826	or consolidate with any financial entity.
827	Section 14.  Subsection (1) of section 655.947, Florida
828	Statutes, is amended to read:
829	655.947  Debt cancellation products.-
830	(1)  Debt cancellation products may be offered, and a fee
831	may be charged, by financial institutions and subsidiaries of
832	financial institutions subject to the provisions of this section
833	and the rules and orders of the commission or office. As used in
834	this section, the term "financial institutions" includes those
835	defined in s. 655.005(1)(h), insured depository institutions as
836	defined in 12 U.S.C. s. 1813, and subsidiaries of such
837	institutions.
838	Section 15.  Present subsections (8) through (16) of
839	section 657.038, Florida Statutes, are redesignated as
840	subsections (7) through (15), respectively, and subsections (6)
841	and (7) of that section are amended, to read:
842	657.038  Loan powers.-
843	(6)  As used in this section, the term "related interest"
844	means a person's interest in a partnership as a general partner,
845	and any limited partnership, corporation, or other business
846	organization controlled by that person. A limited partnership,
847	corporation, or other business organization is controlled by a
848	person who:
849	(a)  Owns, controls, or has the power to vote 25 percent or
850	more of any class of voting securities of any such business
851	organization;
852	(b)  Controls in any manner the election of a majority of
853	the directors of any such business organization; or
854	(c)  Has the power to exercise a controlling influence over
855	the management or policies of such business organization.
856	(6)(7)  In computing a person's the total obligations
857	outstanding liabilities of any person, all loans endorsed or
858	guaranteed as to repayment by that such person and by any
859	related interest of such person must be included. The credit
860	union must also include all of the person's potential
861	liabilities and obligations resulting from the person's
862	derivatives transactions, repurchase agreements, securities
863	lending and borrowing transactions, credit default swaps, and
864	similar contracts.
865	Section 16.  Subsection (7) of section 657.042, Florida
866	Statutes, is amended to read:
867	657.042  Investment powers and limitations.-A credit union
868	may invest its funds subject to the following definitions,
869	restrictions, and limitations:
870	(7)  SPECIAL PROVISIONS.-
871	(a)  A credit union may not invest its funds in None of the
872	bonds or other obligations described in this section shall be
873	eligible for investment by credit unions in any amount unless
874	the bonds or other obligations are current as to all payments of
875	principal and interest and unless rated in one of the four
876	highest classifications, or, in the case of commercial paper,
877	unless it is of prime quality and of the highest letter and
878	numerical rating, as established by a nationally recognized
879	investment rating service, or any comparable rating as
880	determined by the office.
881	(b)  A credit union shall establish written policies and
882	procedures for evaluating the systemic and specific risks and
883	benefits associated with investments authorized under this
884	section before making such investments and must conduct
885	appropriate risk management and monitoring for the duration of
886	the investment. An investment decision may not be based solely
887	on the rating of the bond or other obligation by an investment
888	rating service. The office may require a credit union to divest
889	itself of an investment that the office determines creates
890	excessive risk or the associated risk exceeds the ability of the
891	credit union to properly evaluate and manage.
892	(c)(b)  With prior office approval of the office, any
893	investment permitted in this section may also be made indirectly
894	by investment in a trust or mutual fund, the investments of
895	which are limited as set forth in this section., provided that
896	The credit union must maintain a current file on each investment
897	which contains sufficient information to determine whether the
898	investment complies with the requirements of this section. If
899	the investment fails to comply with the requirements of this
900	section, the credit union must divest itself of its investment,
901	unless otherwise approved by the office.
902	Section 17.  Subsection (5) of section 657.063, Florida
903	Statutes, is amended to read:
904	657.063  Involuntary liquidation.-
905	(5)  When the liquidating agent of the credit union has
906	been appointed, the office may waive or deem inapplicable the
907	fees required by this chapter and the examination required by s.
908	655.045(1)(a) if, provided the liquidating agent submits
909	periodic reports to the office on the status of the liquidation.
910	Section 18.  Subsection (8) of section 657.064, Florida
911	Statutes, is amended to read:
912	657.064  Voluntary liquidation.-A credit union may elect to
913	dissolve voluntarily and liquidate its affairs in the following
914	manner:
915	(8)  When the liquidating agent of the credit union has
916	been appointed, the office may waive or hold inapplicable the
917	fees required by this chapter and the examination required by s.
918	655.045(1)(a) if, provided the liquidating agent submits
919	periodic reports to the office on the status of the liquidation.
920	Section 19.  Subsections (4) and (25) of section 658.12,
921	Florida Statutes, are amended to read:
922	658.12  Definitions.-Subject to other definitions contained
923	in the financial institutions codes and unless the context
924	otherwise requires:
925	(4)  "Branch" or "branch office" of a bank means any office
926	or place of business of a bank, other than its main office and
927	the facilities and operations authorized by ss. 658.26(4),
928	658.65, and 660.33, at which deposits are received, checks are
929	paid, or money is lent. With respect to a bank that which has a
930	trust department, the terms "branch" and "branch office" have
931	the meanings herein ascribed to a branch or a branch office of a
932	trust company and mean. "Branch" or "branch office" of a trust
933	company means any office or place of business of a trust
934	company, other than its main office and its trust service
935	offices established pursuant to s. 660.33, where trust business
936	is transacted with its customers.
937	(25)  Terms used but not defined in this code, but which
938	are defined in Revised Article 3 or Article 4 of the Uniform
939	Commercial Code as enacted in chapters 673 and 674 shall, in
940	this code, unless the context otherwise requires, have the
941	meanings ascribed to them in chapters 673 and 674.
942	Section 20.  Subsection (3) of section 658.20, Florida
943	Statutes, is repealed.
944	Section 21.  Subsection (1) of section 658.28, Florida
945	Statutes, is amended to read:
946	658.28  Acquisition of control of a bank or trust company.-
947	(1)  If In any case in which a person or a group of
948	persons, directly or indirectly or acting by or through one or
949	more persons, proposes to purchase or acquire a controlling
950	interest in a any state bank or state trust company, and thereby
951	to change the control of that bank or trust company, such each
952	person or group of persons must shall first submit an make
953	application to the office for a certificate of approval of such
954	proposed change of control of the bank or trust company.
955	(a)  The application must shall contain the name and
956	address, and such other relevant information as the commission
957	or office requires, including information relating to other and
958	former addresses and the reputation, character, responsibility,
959	and business affiliations, of the proposed new owner or each of
960	the proposed new owners of the controlling interest.
961	(b)  The office shall issue a certificate of approval only
962	after it has made an investigation and determined that the
963	proposed new owner or owners of the interest are qualified by
964	reputation, character, experience, and financial responsibility
965	to control and operate the bank or trust company in a legal and
966	proper manner and that the interests of the other stockholders,
967	if any, and the depositors and creditors of the bank or trust
968	company, and the interests of the public generally will not be
969	jeopardized by the proposed change in ownership, controlling
970	interest, or management.
971	(c)  A No person who has been convicted of, or pled guilty
972	or nolo contendere to, a violation of s. 655.50, relating to the
973	Florida Control of money laundering in financial institutions
974	Act; chapter 896, relating to offenses related to financial
975	transactions; or any similar state or federal law may not
976	receive shall be given a certificate of approval by the office.
977	(d)  A business organization that is not a bank holding
978	company authorized by the office or the federal Bank Holding
979	Company Act of 1956, as amended, 12 U.S.C. ss. 1841 et seq., may
980	not control a bank.
981	Section 22.  Section 658.295, Florida Statutes, is
982	repealed.
983	Section 23.  Section 658.2953, Florida Statutes, is amended
984	to read:
985	658.2953  Interstate branching.-
986	(1)  SHORT TITLE.-This section may be cited as the "Florida
987	Interstate Branching Act."
988	(2)  PURPOSE.-The purpose of this section is to provide for
989	the regulation of permit interstate branching, effective May 31,
990	1997, by a merger transaction under s. 102 of the Riegle-Neal
991	Interstate Banking and Branching Efficiency Act of 1994, Pub. L.
992	No. 103-328, in accordance with this section and consistent with
993	the Federal Deposit Insurance Act, as amended, 12 U.S.C. ss.
994	1811 et seq.; the Bank Holding Company Act of 1956, as amended,
995	12 U.S.C. ss. 1841 et seq., and 12 U.S.C. s. 5451; and Pub. L.
996	No. 111-203.
997	(3)  LEGISLATIVE INTENT.-The Legislature finds it is in the
998	interest of the citizens of this state, and declares it to be
999	the intent of this section, to:
1000	(a)  Supervise, regulate, and examine persons, firms,
1001	corporations, associations, and other business entities
1002	furnishing depository, lending, and associated financial
1003	services in this state.
1004	(b)  Protect the interests of shareholders, members,
1005	depositors, and other customers of financial institutions
1006	operating in this state.
1007	(c)  Preserve the competitive equality of state financial
1008	institutions as compared with federal financial institutions.
1009	(d)  Promote the availability, efficiency, and
1010	profitability of financial services in the communities of this
1011	state.
1012	(e)  Preserve the advantages of the dual banking system.
1013	(f)  Cooperate with federal regulators and regulators from
1014	other states in regulating financial institutions, in improving
1015	the quality of regulation, and in promoting the interests of
1016	this state in interstate matters.
1017	(g)  Provide the commission and office sufficient powers
1018	and responsibilities to carry out such purposes.
1019	(3)(4)  DEFINITIONS.-As used in this section, the term
1020	unless a different meaning is required by the context:
1021	(a)  "Bank" has the meaning set forth in 12 U.S.C. s.
1022	1813(h), provided the term "bank" does not include any "foreign
1023	bank" as defined in 12 U.S.C. s. 3101(7), except such term
1024	includes any foreign bank organized under the laws of a
1025	territory of the United States, Puerto Rico, Guam, American
1026	Samoa, or the Virgin Islands, the deposits of which are insured
1027	by the Federal Deposit Insurance Corporation.
1028	(b)  "Bank holding company" has the meaning set forth in 12
1029	U.S.C. s. 1841(a)(1).
1030	(c)  "Bank regulatory agency" means:
1031	1.  Any agency of another state with primary responsibility
1032	for chartering and regulating banks.
1033	2.  The Office of the Comptroller of the Currency, the
1034	Federal Deposit Insurance Corporation, the Board of Governors of
1035	the Federal Reserve System, and any successor to such agencies.
1036	(d)  "Branch" has the meaning set forth in s. 658.12.
1037	(e)  "De novo branch" means a branch of a bank located in a
1038	host state which:
1039	1.  Is originally established by the bank as a branch.
1040	2.  Does not become a branch of the bank as a result of:
1041	a.  The acquisition of another bank or a branch of another
1042	bank; or
1043	b.  The merger, consolidation, or conversion involving any
1044	such bank or branch.
1045	(f)  "Control" shall be construed consistently with the
1046	provisions of 12 U.S.C. s. 1841(a)(2).
1047	(g)  "Failing financial entity" means an out-of-state state
1048	bank that has been determined by its home state regulator or the
1049	appropriate federal regulatory agency to be imminently insolvent
1050	or to require immediate action to prevent its probable failure.
1051	(h)  "Home state" means:
1052	1.  With respect to a state bank, the state by which the
1053	bank is chartered.
1054	2.  With respect to a national bank, the state in which the
1055	main office of the bank is located.
1056	3.  With respect to a foreign bank, the state determined to
1057	be the home state of such foreign bank under 12 U.S.C. s.
1058	3103(c).
1059	(i)  "Home state regulator" means, with respect to an out-
1060	of-state state bank, the bank's regulatory agency of the state
1061	in which such bank is chartered.
1062	(j)  "Host state" means a state, other than the home state
1063	of a bank, in which the bank maintains or seeks to establish and
1064	maintain a branch.
1065	(k)  "Insured depository institution" has the meaning set
1066	forth in 12 U.S.C. s. 1813(c)(2) and (3).
1067	(a)(l)  "Interstate merger transaction" means the merger or
1068	consolidation of banks with different home states, and the
1069	conversion of branches of any bank involved in the merger or
1070	consolidation into branches of the resulting bank.
1071	(m)  "Out-of-state bank" means a bank whose home state is a
1072	state other than this state.
1073	(n)  "Out-of-state state bank" means a bank chartered under
1074	the laws of any state other than this state.
1075	(b)(o)  "Resulting bank" means a bank that results has
1076	resulted from an interstate merger transaction under this
1077	section.
1078	(p)  "State" means any state of the United States, the
1079	District of Columbia, any territory of the United States, Puerto
1080	Rico, Guam, American Samoa, the Trust Territory of the Pacific
1081	Islands, the Virgin Islands, and the Northern Mariana Islands.
1082	(c)(q)  "Florida bank" means a bank whose home state is
1083	this state.
1084	(r)  "State bank" means a bank chartered under the laws of
1085	this state.
1086	(5)  INTERSTATE BRANCHING BY DE NOVO ENTRY PROHIBITED.-An
1087	out-of-state bank that does not operate a branch in this state
1088	is prohibited from establishing a de novo branch in this state.
1089	(4)(6)  AUTHORITY OF STATE BANKS TO ESTABLISH INTERSTATE
1090	BRANCHES BY MERGER.-With the prior written approval of the
1091	office, a state bank may establish, maintain, and operate one or
1092	more branches in a state other than this state pursuant to an
1093	interstate merger transaction in which the state bank is the
1094	resulting bank. No later than the date on which the required
1095	application for the interstate merger transaction is filed with
1096	the appropriate responsible federal bank regulatory agency, the
1097	applicant state bank shall file an application on a form
1098	prescribed by the commission accompanied by the required fee
1099	pursuant to s. 658.73. The applicant must shall also comply with
1100	the provisions of ss. 658.40-658.45.
1101	(5)(7)  INTERSTATE MERGER TRANSACTIONS AND BRANCHING
1102	PERMITTED.-
1103	(a)  One or more Florida banks may enter into an interstate
1104	merger transaction with one or more out-of-state banks. An out-
1105	of-state bank resulting from such transaction may maintain and
1106	operate the branches of a Florida bank that participated in such
1107	transaction if, provided that the conditions and filing
1108	requirements of this section are met.
1109	(b)  Except as otherwise expressly provided in this
1110	section, an interstate merger transaction is shall not be
1111	permitted if, upon consummation of such transaction, the
1112	resulting bank, including all insured depository institutions
1113	that would be "affiliates," as defined in 12 U.S.C. s. 1841(k),
1114	of the resulting bank, would control 30 percent or more of the
1115	total amount of deposits held by all insured depository
1116	institutions in this state. However, this paragraph does not
1117	apply to initial entry into this state by an out-of-state bank
1118	or bank holding company.
1119	(c)  An interstate merger transaction resulting in the
1120	acquisition by an out-of-state bank of a Florida bank shall not
1121	be permitted under this section unless such Florida bank has
1122	been in existence and continuously operating, on the date of
1123	such acquisition, for more than 3 years.
1124	(6)(8)  NOTICE AND FILING REQUIREMENTS.-An Any out-of-state
1125	bank that will be the resulting bank pursuant to an interstate
1126	merger transaction involving a Florida bank must shall notify
1127	the office of the proposed merger within 15 days after the date
1128	on which it files an application for an interstate merger
1129	transaction with the appropriate federal regulatory agency and
1130	the home state regulatory agency, if applicable. Thereafter, the
1131	out-of-state bank and the Florida bank must, upon request of the
1132	office, submit status updates with such information as the
1133	office specifies until the merger transaction is completed or
1134	the merger application is withdrawn or denied.
1135	(7)(9)  EXAMINATIONS; PERIODIC REPORTS; COOPERATIVE
1136	AGREEMENTS; ASSESSMENT OF FEES.-
1137	(a)  The office may examine any Florida branch of an out-
1138	of-state state bank which the office deems necessary for the
1139	purpose of determining whether the branch is being operated in
1140	compliance with the laws of this state and in accordance with
1141	safe and sound banking practices.
1142	(b)  The office may enter into cooperative, coordinating,
1143	or information-sharing agreements with other bank regulatory
1144	agencies or any organization affiliated with or representing one
1145	or more bank regulatory agencies to facilitate the regulation of
1146	out-of-state state branches doing business in this state.
1147	(c)  The office may accept reports of examinations or
1148	investigations, or other records from other regulatory agencies
1149	having concurrent jurisdiction over a state bank or a bank
1150	holding company that controls out-of-state state banks that
1151	operate branches in this state in lieu of conducting its own
1152	examinations or investigations.
1153	(d)  The office may assess supervisory and examination fees
1154	that are shall be payable by state banks and out-of-state state
1155	bank holding companies doing business in this state in
1156	connection with the office's performance of its duties under
1157	this section and as prescribed by the commission. Such fees may
1158	be shared with other bank regulatory agencies or any
1159	organizations affiliated with or representing one or more bank
1160	regulatory agencies in accordance with agreements between them
1161	and the office.
1162	(8)(10)  LAWS APPLICABLE TO INTERSTATE BRANCHING
1163	OPERATIONS.-Laws of this state regarding consumer protection,
1164	fair lending, and establishment of intrastate branches apply to
1165	any out-of-state bank branch doing business in this state to the
1166	same extent as the laws of this state apply to a state bank,
1167	unless except:
1168	(a)  When Federal law preempts the application of the laws
1169	of this state.
1170	(b)  When The Comptroller of the Currency determines that
1171	the application of the such laws of this state would have a
1172	discriminatory effect on the branch of a national bank in
1173	comparison with the effect the application of such state laws
1174	would have with respect to branches of a state bank.
1175	(9)(11)  ENFORCEMENT.-
1176	(a)  If the office determines that a branch maintained by
1177	an out-of-state state bank in this state is being operated in
1178	violation of any provision of law of this state, or that such
1179	branch is being operated in an unsafe and unsound manner, the
1180	office may take all such enforcement actions as it would be
1181	empowered to take if the branch were a state bank if, provided
1182	that the office shall promptly gives give notice to the home
1183	state regulator of each enforcement action taken against the an
1184	out-of-state state bank and, to the extent practicable, consults
1185	and cooperates shall consult and cooperate with the home state
1186	regulator in pursuing and resolving the said enforcement action.
1187	(b)  The office may take any action jointly with other
1188	regulatory agencies having concurrent jurisdiction over out-of-
1189	state banks and bank holding companies that operate branches in
1190	this state, or take such action independently, to carry out its
1191	responsibilities.
1192	(10)(12)  NOTICE OF SUBSEQUENT MERGER.-
1193	(a)  Each out-of-state state bank that has established and
1194	maintains a branch in this state must pursuant to this section
1195	shall give at least 30 days' prior written notice to the office
1196	of any merger, consolidation, or other transaction that would
1197	cause a change of control pursuant to home state or federal law
1198	with respect to such bank or any bank holding company that
1199	controls such bank.
1200	(b)  Notwithstanding any other provisions of the financial
1201	institutions codes or of chapter 120, In the case of a failing
1202	financial institution entity, the office shall have the power,
1203	with the concurrence of the appropriate regulatory agencies
1204	agency, may to issue an emergency order authorizing any
1205	necessary interstate banking or branching transaction pursuant
1206	to s. 655.4185.:
1207	1.  The merger or interstate merger transaction of any such
1208	failing financial entity with a state bank or bank holding
1209	company that controls a state bank;
1210	2.  Any bank to acquire assets and assume liabilities of
1211	the Florida branches of any such failing financial entity;
1212	3.  The conversion of any such failing financial entity
1213	into a state bank or trust company;
1214	4.  The chartering of a new state bank to acquire the
1215	Florida branches of any such failing financial entity; or
1216	5.  The chartering of a new state trust company to acquire
1217	assets and assume liabilities and rights, powers, and
1218	responsibilities as fiduciary of such failing financial entity.
1219	(11)(13)  DE NOVO INTERSTATE BRANCHING BY STATE BANKS.-
1220	(a)  With the prior approval of the office, a any state
1221	bank may establish and maintain a de novo branch or acquire a
1222	branch in a state other than this state by submitting an
1223	application with the office pursuant to s. 658.26.
1224	(b)  A state bank desiring to establish and maintain a
1225	branch in another state pursuant to s. 658.26 shall pay the
1226	branch application fee set forth in s. 658.73. In acting on the
1227	application, the office shall consider the views of the
1228	appropriate bank regulatory agencies.
1229	(c)  An out-of-state bank may establish and maintain a de
1230	novo branch or acquire a branch in this state upon compliance
1231	with chapter 607 or chapter 608 relating to doing business in
1232	this state as a foreign business entity, including maintaining a
1233	registered agent for service of process and other legal notice
1234	pursuant to s. 655.0201.
1235	(12)(14)  ADDITIONAL BRANCHES; POWERS.-
1236	(a)  An out-of-state bank that has lawfully acquired or
1237	established a branch in this state or bank holding company that
1238	has acquired a bank in this state pursuant to s. 658.295, or by
1239	interstate merger pursuant to this section, may establish an
1240	additional branch or additional branches in this state to the
1241	same extent that any Florida bank may establish a branch or
1242	branches in this state.
1243	(b)  An out-of-state bank may conduct only those activities
1244	at its Florida branch or branches which that are authorized
1245	under the laws of this state or of the United States. However,
1246	an out-of-state bank with trust powers resulting from an
1247	interstate merger transaction with one or more Florida banks
1248	with trust powers shall be entitled to and may exercise all
1249	trust powers in this state as a Florida bank with trust powers
1250	that participated in the transaction.
1251	Section 24.  Section 658.296, Florida Statutes, is
1252	repealed.
1253	Section 25.  Section 658.36, Florida Statutes, is amended
1254	to read:
1255	658.36  Changes in capital.-
1256	(1)  A No state bank or trust company may not shall reduce
1257	the number of shares of its outstanding capital stock without
1258	first obtaining the approval of the office., and such Approval
1259	shall be withheld if the reduction will cause the outstanding
1260	capital accounts stock to be less than the minimum required
1261	pursuant to the financial institutions codes.
1262	(2)  A Any state bank or trust company may provide for an
1263	increase in its number of outstanding shares of capital stock
1264	after filing a written notice with the office at least 15 days
1265	before prior to making such increase. The office may waive the
1266	time requirement upon a demonstration of good cause.
1267	(3) If a bank or trust company's capital accounts have been
1268	diminished by losses to less than the minimum required pursuant
1269	to the financial institutions codes, the market value of its
1270	shares of capital stock is less than the present par value, and
1271	the bank or trust company cannot reasonably issue and sell new
1272	shares of stock to restore its capital accounts at a share price
1273	of par value or greater of the previously issued capital stock,
1274	the office, notwithstanding any other provisions of chapter 607
1275	or the financial institutions codes, may approve special stock
1276	offering plans.
1277	(a)  Such plans may include, but are not limited to,
1278	mechanisms for stock splits including reverse splits;
1279	revaluations of par value of outstanding stock; changes in
1280	voting rights, dividends, or other preferences; and creation of
1281	new classes of stock.
1282	(b)  The plan must be approved by majority vote of the bank
1283	or trust company's entire board of directors and by holders of
1284	two-thirds of the outstanding shares of stock.
1285	(c)  The office shall disapprove a plan that provides
1286	unfair or disproportionate benefits to existing shareholders,
1287	directors, executive officers, or their related interests. The
1288	office shall also disapprove any plan that is not likely to
1289	restore the capital accounts to sufficient levels to achieve a
1290	sustainable, safe, and sound financial institution.
1291	(d)  For any bank or trust company that the office
1292	determines to be a failing financial institution pursuant to s.
1293	655.4185, the office may approve special stock offering plans
1294	without a vote of the shareholders.
1295	Section 26.  Subsection (2) of section 658.41, Florida
1296	Statutes, is amended to read:
1297	658.41  Merger; resulting state or national bank.-
1298	(2)  Nothing in The laws law of this state do not shall
1299	restrict the right of a state bank or state trust company to
1300	merge with a resulting national bank or out-of-state bank. In
1301	such case the action to be taken by a constituent state bank or
1302	state trust company, and its rights and liabilities and those of
1303	its shareholders, are shall be the same as those prescribed for
1304	constituent national banks at the time of the action by the
1305	applicable federal law of the United States and not by the law
1306	of this state.
1307	Section 27.  Subsections (3) through (11) of section
1308	658.48, Florida Statutes, are amended to read:
1309	658.48  Loans.-A state bank may make loans and extensions
1310	of credit, with or without security, subject to the following
1311	limitations and provisions:
1312	(3)  LOANS TO OTHER PERSONS.-A No bank may not shall extend
1313	credit, including the granting of a line of credit, to any other
1314	person not included in subsection (2), including a any related
1315	interest of that person, which that, if when aggregated with the
1316	amount of all other extensions of credit to that person and any
1317	related interest of that person, exceeds 15 percent of the
1318	capital accounts of the lending bank, unless the extension of
1319	credit has been approved in advance by a majority of the entire
1320	board of directors or by all members of an authorized committee
1321	thereof within not more than 1 year before prior to the time
1322	when such credit is extended.
1323	(4)  RELATED INTERESTS.-As used in this section, the term
1324	"related interest" means, with respect to any person, any
1325	partnership, corporation, or other business organization
1326	controlled by that person. A corporation is controlled by a
1327	person who:
1328	(a)  Owns, controls, or has the power to vote 25 percent or
1329	more of any class of voting securities of the corporation;
1330	(b)  Controls in any manner the election of a majority of
1331	the directors of the corporation; or
1332	(c)  Has the power to exercise a controlling influence over
1333	the management or policies of the corporation.
1334	(4)(5)  SPECIAL PROVISIONS.-
1335	(a)  A limitation of 25 percent of the capital accounts of
1336	the lending bank applies to the aggregate of all loans made to a
1337	corporation, together with all loans secured by shares of stock,
1338	bonds, or other obligations of the same corporation, unless the
1339	stocks or bonds are listed and traded on a recognized stock
1340	exchange, or are registered under the Securities Exchange Act of
1341	1934, or are registered with the Board of Governors of the
1342	Federal Reserve System, with the Federal Deposit Insurance
1343	Corporation, or with the Comptroller of the Currency, in which
1344	case no aggregate loan limit applies.
1345	(b)  A limitation of 15 percent of the capital accounts of
1346	the lending bank applies to loans made to any one borrower on
1347	the security of shares of capital stock listed and traded on a
1348	recognized exchange. A limitation of 10 percent of the capital
1349	accounts of the lending bank applies to loans made to any one
1350	borrower on the security of shares of capital stock not listed
1351	on a recognized exchange or the obligations subordinate to
1352	deposits of another bank. A limitation of 25 percent of the
1353	capital accounts of the lending state bank applies to the
1354	aggregate of all loans secured by the shares of capital stock or
1355	the obligations subordinate to deposits of any one bank.
1356	(c)  A No loan may not shall be made by a bank:
1357	1.  On the security of the shares of its own capital stock
1358	or of its obligations subordinate to deposits.
1359	2.  On an unsecured basis for the purpose of purchasing the
1360	purchase of shares of its own capital stock or its obligations
1361	subordinate to deposits.
1362	3.  On a secured or unsecured basis for the purpose of
1363	purchasing the purchase of shares of the stock of its one-bank
1364	holding company.
1365	(d)  A one-bank holding company bank may make loans on its
1366	own one-bank holding company stock. For capital stock that is
1367	listed and traded on a recognized exchange, the stock may not be
1368	valued at more than 70 percent of its current market value, and
1369	for capital stock that is not listed and traded on a recognized
1370	exchange, the stock may not be valued at more than 70 percent of
1371	its current book value.
1372	(e)  Loans based upon the security of real estate mortgages
1373	shall be documented as first liens, except that liens other than
1374	first liens may be taken:
1375	1.  To protect a loan previously made in good faith;
1376	2.  To further secure a loan otherwise amply and entirely
1377	secured;
1378	3.  As additional security for Federal Housing
1379	Administration Title 1 loans or loans made with participation or
1380	guaranty by the Small Business Administration;
1381	4.  To secure a loan not in excess of 15 percent of the
1382	capital accounts of the bank; or
1383	5.  As provided by rules of the commission.
1384	(e)(f)  In computing the total liabilities of any person,
1385	there shall be included all loans or lines of credit endorsed or
1386	guaranteed as to repayment by such person and by any related
1387	interest of such person must be included. Purchased
1388	participations in pools of loans which are carried as loans
1389	subject to the limits of this section must be aggregated when
1390	computing the total liabilities of a person who is a borrower,
1391	originator, seller, broker, or guarantor, or has a repurchase
1392	agreement obligation for the individual and pooled loans. The
1393	computation of total liabilities must also include all potential
1394	liabilities and obligations of the person, and any related
1395	interest, resulting from the person's derivatives transactions,
1396	repurchase agreements, securities lending and borrowing
1397	transactions, credit default swaps, and similar contracts.
1398	(f)(g)  All loan documentation must shall be written in the
1399	English language or contain an English translation of foreign
1400	language provisions.
1401	(5)(6)  APPLICABILITY OF LOAN LIMITATIONS.-The loan
1402	limitations otherwise provided in this section do not apply to:
1403	(a)  Loans that which are fully secured by assignment of a
1404	savings account or certificate of deposit of the lending bank;
1405	(b)  Loans that which are fully secured by notes, bonds, or
1406	other evidences of indebtedness issued by the United States
1407	Government or fully guaranteed as to repayment by the United
1408	States Government or its agencies, bureaus, boards, or
1409	commissions; or
1410	(c)  Loans made to district school boards if when such
1411	loans are secured by the assignment of revenues reasonably
1412	expected to be received from the state and are otherwise made in
1413	compliance with statutes governing borrowings by such boards;
1414	or.
1415	(d)  Purchased participations in pools of loans which are
1416	carried as investments subject to the limitations of s. 658.67.
1417	(6)(7)  APPROVAL BY BOARD.-The requirements of this section
1418	concerning approval of lending activities by the board of
1419	directors or an authorized committee therefrom are have been met
1420	only if when such approvals are recorded in the formal minutes
1421	of the actions of the board and its committees by name of
1422	borrower, amount of loan, maturity of loan, and general type of
1423	collateral. If, at the time of approval of a line of credit,
1424	such information is not available, the name of the borrower and
1425	the amount of the approved line of credit must shall be recorded
1426	in the minutes. Any action required by this section to be taken
1427	by the board of directors or an authorized committee therefrom
1428	may be taken pursuant to s. 607.0820(4) if the minutes of the
1429	proceedings of the board or of the committee reflect such action
1430	and each director taking such action signs the minutes
1431	reflecting such action at the next regular meeting of the board
1432	or committee attended by such director.
1433	(7)(8)  LIABILITY OF OFFICERS AND DIRECTORS.-Officers and
1434	directors are personally liable, jointly and severally, for any
1435	loss that may be occasioned by a any willful violation of this
1436	section.
1437	(8)(9)  If When a bank's capital has been diminished by
1438	losses so that its ability to honor legally binding written loan
1439	commitments is impaired, the office may approve limited
1440	expansion of the lending limitations set forth in this section.
1441	(10)  IMMINENTLY INSOLVENT BANK.-When the office has
1442	determined that a state bank is imminently insolvent, the bank
1443	may not make any new loans or discounts other than by
1444	discounting or purchasing bills of exchange payable at sight.
1445	(9)(11)  FEDERAL RESTRICTIONS AND LIMITATIONS.-Nothing in
1446	This section does not expand, enlarge shall be construed as
1447	expanding, enlarging, or otherwise affect affecting any lending
1448	limits, restrictions, or procedures now provided by federal law
1449	applicable to state banks in conjunction with any loan or loans
1450	to any borrower or class of borrowers.
1451	Section 28.  Subsection (4) of section 658.53, Florida
1452	Statutes, is amended to read:
1453	658.53  Borrowing; limits of indebtedness.-
1454	(4)  Unrepaid proceeds of sales of capital notes and
1455	capital debentures are, as provided herein, shall be considered
1456	as a part of the aggregate amount of capital and surplus in
1457	computing loan and investment limitations and in evaluating
1458	adequacy of capital of the issuing bank if the issuing bank is
1459	not in default thereunder.
1460	Section 29.  Section 658.65, subsection (33) of section
1461	665.013, and subsection (35) of section 667.003, Florida
1462	Statutes, are repealed.
1463	Section 30.  Paragraph (c) of subsection (5) and
1464	subsections (6) and (10) of section 658.67, Florida Statutes,
1465	are amended to read:
1466	658.67  Investment powers and limitations.-A bank may
1467	invest its funds, and a trust company may invest its corporate
1468	funds, subject to the following definitions, restrictions, and
1469	limitations:
1470	(5)  INVESTMENTS IN RELATED COMPANIES.-A bank or trust
1471	company may invest in the stock of incorporated companies to the
1472	extent hereinafter defined:
1473	(c)  Up to 10 percent of the capital accounts of a bank may
1474	be invested in a clearing corporation as defined in s. 678.1021
1475	678.102(3).
1476	(6)  INVESTMENTS IN CORPORATIONS.-Up to an aggregate of 10
1477	percent of the total assets of a bank may be invested in the
1478	stock, obligations, or other securities of subsidiary
1479	corporations or other corporations or entities, except as
1480	limited or prohibited by federal law, and except that during the
1481	first 3 years of existence of a bank, such investments are
1482	limited to 5 percent of the total assets. Any bank whose
1483	aggregate investment on June 30, 1992, exceeds the limitation in
1484	this subsection has 5 years within which to achieve compliance;
1485	additional time may be approved by the office if the office
1486	finds that compliance with this subsection will result in more
1487	than a minimal loss to the bank. The commission may, by rule, or
1488	the office by order, may further limit any type of investment
1489	made pursuant to this subsection if it finds that such
1490	investment would constitute an unsafe or unsound practice.
1491	(10)  SPECIAL PROVISIONS.-
1492	(a)  None of The bonds or other obligations described in
1493	this section are not shall be eligible for investment in any
1494	amount unless current as to all payments of principal and
1495	interest and unless rated in one of the four highest
1496	classifications, or, in the case of commercial paper, unless it
1497	is of prime quality and of the highest letter and numerical
1498	rating, as established by a nationally recognized rating service
1499	or any comparable rating as determined by the office. Bonds or
1500	other obligations which are unrated shall not be eligible for
1501	investment unless otherwise supported as to investment quality
1502	and marketability by a credit rating file compiled and
1503	maintained in current status by the purchasing bank or trust
1504	company. Banks and trust companies shall establish written
1505	policies and procedures to evaluate the systemic and specific
1506	risks and benefits associated with all investments authorized in
1507	this section before making such investments and must provide for
1508	appropriate risk management and monitoring for the duration of
1509	the investment. An investment decision may not be based solely
1510	on the rating of the bond or other obligation by an investment
1511	rating service. The office may require a bank or trust company
1512	to divest itself of any investment that the office determines
1513	creates excessive risk or that has an associated risk that
1514	exceeds the ability of the bank or trust company to properly
1515	evaluate and manage.
1516	(b)  Investment securities shall be entered on the books of
1517	the bank or trust company at the fair market value on the date
1518	of acquisition. Premiums paid in excess of par value shall be
1519	amortized either over the life of the security or to the first
1520	call date at its call price and thereafter to subsequent call
1521	dates at their respective call prices until maturity. Discount
1522	may be accredited over the life of the security.
1523	Section 31.  Subsection (5) of section 288.772, Florida
1524	Statutes, is amended to read:
1525	288.772  Definitions.-For purposes of ss. 288.771-288.778:
1526	(5)  "Financial institution" shall have the same meaning as
1527	that term is defined in s. 655.005(1)(h).
1528	Section 32.  Paragraph (b) of subsection (5) of section
1529	288.99, Florida Statutes, is amended to read:
1530	288.99  Certified Capital Company Act.-
1531	(5)  INVESTMENTS BY CERTIFIED CAPITAL COMPANIES.-
1532	(b)  All capital not invested in qualified investments by
1533	the certified capital company:
1534	1.  Must be held in a financial institution as defined in
1535	by s. 655.005(1)(h) or held by a broker-dealer registered under
1536	s. 517.12, except as set forth in sub-subparagraph 3.g.
1537	2.  Must not be invested in a certified investor of the
1538	certified capital company or any affiliate of the certified
1539	investor of the certified capital company, except for an
1540	investment permitted by sub-subparagraph 3.g. if, provided
1541	repayment terms do not permit the obligor to directly or
1542	indirectly manage or control the investment decisions of the
1543	certified capital company.
1544	3.  Must be invested only in:
1545	a.  Any United States Treasury obligations;
1546	b.  Certificates of deposit or other obligations, maturing
1547	within 3 years after acquisition of such certificates or
1548	obligations, issued by any financial institution or trust
1549	company incorporated under the laws of the United States;
1550	c.  Marketable obligations, maturing within 10 years or
1551	less after the acquisition of such obligations, which are rated
1552	"A" or better by any nationally recognized credit rating agency;
1553	d.  Mortgage-backed securities that have, with an average
1554	life of 5 years or less, after the acquisition of such
1555	securities, which are rated "A" or better by a any nationally
1556	recognized credit rating agency;
1557	e.  Collateralized mortgage obligations and real estate
1558	mortgage investment conduits that are direct obligations of an
1559	agency of the United States Government; are not private-label
1560	issues; are in book-entry form; and do not include the classes
1561	of interest only, principal only, residual, or zero;
1562	f.  Interests in money market funds, the portfolio of which
1563	is limited to cash and obligations described in sub-
1564	subparagraphs a.-d.; or
1565	g.  Obligations that are issued by an insurance company
1566	that is not a certified investor of the certified capital
1567	company making the investment, that has provided a guarantee
1568	indemnity bond, insurance policy, or other payment undertaking
1569	in favor of the certified capital company's certified investors
1570	as permitted by subparagraph (3)(l)1. or an affiliate of such
1571	insurance company as defined by subparagraph (3)(a)3. that is
1572	not a certified investor of the certified capital company making
1573	the investment, provided that such obligations are:
1574	(I)  Issued or guaranteed as to principal by an entity
1575	whose senior debt is rated "AA" or better by Standard & Poor's
1576	Ratings Group or such other nationally recognized credit rating
1577	agency as the commission may determine by rule determine.
1578	(II)  Not subordinated to other unsecured indebtedness of
1579	the issuer or the guarantor.
1580	(III)  Invested by such issuing entity in accordance with
1581	sub-subparagraphs 3.a.-f.
1582	(IV)  Readily convertible into cash within 5 business days
1583	for the purpose of making a qualified investment unless such
1584	obligations are held to provide a guarantee, indemnity bond,
1585	insurance policy, or other payment undertaking in favor of the
1586	certified capital company's certified investors as permitted by
1587	subparagraph (3)(l)1.
1588	Section 33.  Subsection (1) of section 440.12, Florida
1589	Statutes, is amended to read:
1590	440.12  Time for commencement and limits on weekly rate of
1591	compensation.-
1592	(1)  No Compensation is not shall be allowed for the first
1593	7 days of the disability, except for benefits provided for in s.
1594	440.13. However, if the injury results in disability of more
1595	than 21 days of disability, compensation is shall be allowed
1596	from the commencement of the disability. All weekly compensation
1597	payments, except for the first payment, must shall be paid by
1598	check or, if authorized by the employee, deposited directly into
1599	the employee's account at a financial institution. As used in
1600	this subsection, the term "financial institution" means a
1601	financial institution as defined in s. 655.005(1)(h).
1602	Section 34.  Paragraph (a) of subsection (1) of section
1603	440.20, Florida Statutes, is amended to read:
1604	440.20  Time for payment of compensation and medical bills;
1605	penalties for late payment.-
1606	(1)(a)  Unless the carrier it denies compensability or
1607	entitlement to benefits, the carrier shall pay compensation
1608	directly to the employee as required by ss. 440.14, 440.15, and
1609	440.16, in accordance with those the obligations set forth in
1610	such sections. If authorized by the employee, the carrier's
1611	obligation to pay compensation directly to the employee is
1612	satisfied when the carrier directly deposits, by electronic
1613	transfer or other means, compensation into the employee's
1614	account at a financial institution. As used in this paragraph,
1615	the term "financial institution" means a financial institution
1616	as defined in s. 655.005(1)(h). Compensation by direct deposit
1617	is considered paid on the date the funds become available for
1618	withdrawal by the employee.
1619	Section 35.  Paragraph (c) of subsection (2) of section
1620	445.051, Florida Statutes, is amended to read:
1621	445.051  Individual development accounts.-
1622	(2)  As used in this section, the term:
1623	(c)  "Financial institution" has the same meaning means a
1624	financial institution as defined in s. 655.005(1)(h).
1625	Section 36.  Subsection (18) of section 489.503, Florida
1626	Statutes, is amended to read:
1627	489.503  Exemptions.-This part does not apply to:
1628	(18)  The monitoring of an alarm system by a direct
1629	employee of any state or federally chartered financial
1630	institution, as defined in s. 655.005(1)(h), or any parent,
1631	affiliate, or subsidiary thereof, so long as:
1632	(a)  The institution is subject to, and in compliance with,
1633	s. 3 of the Federal Bank Protection Act of 1968, 12 U.S.C. s.
1634	1882;
1635	(b)  The alarm system is in compliance with all applicable
1636	firesafety standards as set forth in chapter 633; and
1637	(c)  The monitoring is limited to an alarm system
1638	associated with:
1639	1.  The commercial property where banking operations are
1640	housed or where other operations are conducted by a state or
1641	federally chartered financial institution, as defined in s.
1642	655.005(1)(h), or any parent, affiliate, or subsidiary thereof;
1643	or
1644	2.  The private property occupied by the institution's
1645	executive officers, as defined in s. 655.005(1)(f),
1646
1647	and does not otherwise extend to the monitoring of residential
1648	systems.
1649	Section 37.  Paragraph (b) of subsection (15) of section
1650	501.005, Florida Statutes, is amended to read:
1651	501.005  Consumer report security freeze.-
1652	(15)  The provisions of this section do not apply to the
1653	following entities:
1654	(b)  A deposit account information service company that,
1655	which issues reports regarding account closures due to fraud,
1656	substantial overdrafts, automatic teller machine abuse, or
1657	similar negative information regarding a consumer to an
1658	inquiring banks or other financial institution as defined in s.
1659	655.005 institutions for use only in reviewing a consumer
1660	request for a deposit account at the inquiring bank or financial
1661	institution, as defined in s. 655.005(1)(g) or (h), or in
1662	federal law.
1663	Section 38.  Paragraph (d) of subsection (2) of section
1664	501.165, Florida Statutes, is amended to read:
1665	501.165  Automatic renewal of service contracts.-
1666	(2)  SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.-
1667	(d)  This subsection does not apply to:
1668	1.  A financial institution as defined in s. 655.005(1)(h)
1669	or any depository institution as defined in 12 U.S.C. s.
1670	1813(c)(2).
1671	2.  A foreign bank maintaining a branch or agency licensed
1672	under the laws of any state of the United States.
1673	3.  Any subsidiary or affiliate of an entity described in
1674	subparagraph 1. or subparagraph 2.
1675	4.  A health studio as defined in s. 501.0125(1).
1676	5.  Any entity licensed under chapter 624, chapter 627,
1677	chapter 634, chapter 636, or chapter 641.
1678	6.  Any electric utility as defined in s. 366.02(2).
1679	7.  Any private company as defined in s. 180.05 providing
1680	services described in chapter 180 which that is competing
1681	against a governmental entity or has a governmental entity
1682	providing billing services on its behalf.
1683	Section 39.  Paragraph (r) of subsection (1) of section
1684	624.605, Florida Statutes, is amended to read:
1685	624.605  "Casualty insurance" defined.-
1686	(1)  "Casualty insurance" includes:
1687	(r)  Insurance for debt cancellation products.-Insurance
1688	that a creditor may purchase against the risk of financial loss
1689	from the use of debt cancellation products with consumer loans
1690	or leases or retail installment contracts. Insurance for debt
1691	cancellation products is not liability insurance but is shall be
1692	considered credit insurance only for the purposes of s.
1693	631.52(4).
1694	1.  For purposes of this paragraph, the term "debt
1695	cancellation products" means loan, lease, or retail installment
1696	contract terms, or modifications to loan, lease, or retail
1697	installment contracts, under which a creditor agrees to cancel
1698	or suspend all or part of a customer's obligation to make
1699	payments upon the occurrence of specified events and includes,
1700	but is not limited to, debt cancellation contracts, debt
1701	suspension agreements, and guaranteed asset protection
1702	contracts. However, the term "debt cancellation products" does
1703	not include title insurance as defined in s. 624.608.
1704	2.  Debt cancellation products may be offered by financial
1705	institutions, as defined in s. 655.005(1)(h), insured depository
1706	institutions as defined in 12 U.S.C. s. 1813(c), and
1707	subsidiaries of such institutions, as provided in the financial
1708	institutions codes; by sellers as defined in s. 721.05, or by
1709	the parents, subsidiaries, or affiliated entities of sellers, in
1710	connection with the sale of timeshare interests; or by other
1711	business entities as may be specifically authorized by law, and
1712	such products are shall not constitute insurance for purposes of
1713	the Florida Insurance Code.
1714	Section 40.  Paragraph (g) of subsection (1) of section
1715	626.321, Florida Statutes, is amended to read:
1716	626.321  Limited licenses.-
1717	(1)  The department shall issue to a qualified individual,
1718	or a qualified individual or entity under paragraphs (c), (d),
1719	(e), and (i), a license as agent authorized to transact a
1720	limited class of business in any of the following categories:
1721	(g)  Credit property insurance.-A license covering only
1722	credit property insurance may be issued to any individual except
1723	an individual employed by or associated with a lending or
1724	financial institution as defined in s. 655.005(1)(g), (h), or
1725	(p) and authorized to sell such insurance only with respect to a
1726	borrower or debtor, not to exceed the amount of the loan.
1727	Section 41.  Subsection (4) of section 626.730, Florida
1728	Statutes, is amended to read:
1729	626.730  Purpose of license.-
1730	(4)  This section does not shall not be deemed to prohibit
1731	the licensing under a limited license as to motor vehicle
1732	physical damage and mechanical breakdown insurance or the
1733	licensing under a limited license for credit property insurance
1734	of any person employed by or associated with a motor vehicle
1735	sales or financing agency, a retail sales establishment, or a
1736	consumer loan office, other than a consumer loan office owned by
1737	or affiliated with a financial institution as defined in s.
1738	655.005(1)(g), (h), or (p), with respect to insurance of the
1739	interest of such agency in a motor vehicle sold or financed by
1740	it or in personal property if when used as collateral for a
1741	loan. This section does not apply with respect to the interest
1742	of a real estate mortgagee in or as to insurance covering such
1743	interest or in the real estate subject to such mortgage.
1744	Section 42.  Section 626.9885, Florida Statutes, is amended
1745	to read:
1746	626.9885  Financial institutions conducting insurance
1747	transactions.-A financial institution, as defined in s.
1748	655.005(1)(g), (h), or (p), may conduct insurance transactions
1749	only through Florida-licensed insurance agents representing
1750	Florida-authorized insurers or representing Florida-eligible
1751	surplus lines insurers.
1752	Section 43.  This act shall take effect July 1, 2011.

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