Florida Senate - 2018 SB 416
By Senator Thurston
33-00614-18 2018416__
1 A bill to be entitled
2 An act relating to governance of banks and trust
3 companies; amending s. 658.21, F.S.; revising
4 requirements relating to the financial institution
5 experience of certain proposed directors and officers
6 of a proposed bank or trust company; amending s.
7 658.33, F.S.; revising applicability of the residency
8 requirement for directors of a bank or trust company;
9 revising requirements relating to the financial
10 institution experience of certain officers of a bank
11 or trust company; amending s. 658.67, F.S.; revising a
12 limitation on investments by banks in corporations;
13 providing an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Subsection (4) of section 658.21, Florida
18 Statutes, is amended to read:
19 658.21 Approval of application; findings required.—The
20 office shall approve the application if it finds that:
21 (4) The proposed officers have sufficient financial
22 institution experience, ability, standing, and reputation and
23 the proposed directors have sufficient business experience,
24 ability, standing, and reputation to indicate reasonable promise
25 of successful operation, and none of the proposed officers or
26 directors has been convicted of, or pled guilty or nolo
27 contendere to, any violation of s. 655.50, relating to the
28 control of money laundering and terrorist financing; chapter
29 896, relating to offenses related to financial institutions; or
30 similar state or federal law. At least two of the proposed
31 directors who are not also proposed officers must have had at
32 least 1 year direct experience as an executive officer,
33 regulator, or director of a financial institution within the 5 3
34 years before the date of the application. However, if the
35 applicant demonstrates that at least one of the proposed
36 directors has very substantial experience as an executive
37 officer, director, or regulator of a financial institution more
38 than 5 3 years before the date of the application, the office
39 may modify the requirement and allow only one director to have
40 direct financial institution experience within the last 5 3
41 years. The proposed president or chief executive officer must
42 have had at least 1 year of direct experience as an executive
43 officer, director, or regulator of a financial institution
44 within the last 5 3 years.
45 Section 2. Subsections (2) and (5) of section 658.33,
46 Florida Statutes, are amended to read:
47 658.33 Directors, number, qualifications; officers.—
48 (2) Not less than a majority of the directors must, during
49 their whole term of service, be citizens of the United States,
50 and at least a majority three-fifths of the directors must have
51 resided in this state for at least 1 year preceding their
52 election and must be residents therein during their continuance
53 in office. In the case of a bank or trust company with total
54 assets of less than $150 million, at least one, and in the case
55 of a bank or trust company with total assets of $150 million or
56 more, two of the directors who are not also officers of the bank
57 or trust company must have had at least 1 year of direct
58 experience as an executive officer, regulator, or director of a
59 financial institution within the last 5 3 years.
60 (5) The president, chief executive officer, or any other
61 person, regardless of title, who has equivalent rank or leads
62 the overall operations of a bank or trust company must have had
63 at least 1 year of direct experience as an executive officer,
64 director, or regulator of a financial institution within the
65 last 5 3 years. This requirement may be waived by the office
66 after considering the overall experience and expertise of the
67 proposed officer and the condition of the bank or trust company,
68 as reflected in the most recent regulatory examination report
69 and other available data.
70 Section 3. Subsection (6) of section 658.67, Florida
71 Statutes, is amended to read:
72 658.67 Investment powers and limitations.—A bank may invest
73 its funds, and a trust company may invest its corporate funds,
74 subject to the following definitions, restrictions, and
75 limitations:
76 (6) INVESTMENTS IN CORPORATIONS.—Up to an aggregate of 10
77 percent of the total assets of A bank may not own be invested in
78 the stock, obligations, or other securities issued by an
79 individual corporation or entity which have an aggregate par
80 value greater than 10 percent of the total assets of such bank
81 of subsidiary corporations or other corporations or entities,
82 except as limited or prohibited by federal law, and except that
83 during the first 3 years of existence of a bank, such
84 investments are limited to 5 percent of the total assets. The
85 commission by rule, or the office by order, may further limit
86 any type of investment made pursuant to this subsection if it
87 finds that such investment would constitute an unsafe or unsound
88 practice.
89 Section 4. This act shall take effect July 1, 2018.