Senate Bill No. 25
(By Senators Minard and Plymale)
____________
[Introduced January 9, 2008; referred to the Committee on Banking
and Insurance; and then to the Committee on Finance.]
____________
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §31A-2-8b, relating
to the authority of the Commissioner of Banking to enter into
contracts with depository institutions to provide loan review
services; and providing that funds obtained from contracts for
loan review services shall be treated the same as bank
assessment funds established by said code.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §31A-2-8b, to read as
follows:
ARTICLE 2. DIVISION OF BANKING.
§31A-2-8b. Contract for loan review services.
(a) The commissioner is authorized to enter into contracts to
provide loan review services through the use of division personnel to any federally insured depository institutions that may want to
obtain such services: Provided, That neither the commissioner nor
his or her delegate may assign an individual who has participated
in any part of a safety and soundness examination or visitation of
a particular depository institution in the previous two years to
provide the loan review services under such a contract with that
institution: Provided, however, That neither the commissioner nor
his or her delegate may assign an individual to participate in a
safety and soundness examination or visitation of a depository
institution for a period of two examination cycles after that same
individual provided contracted loan review services to that
institution. Nothing herein shall be construed to require any
federally insured depository institutions to obtain loan review
services through contracts with the division.
(b) Any funds received by the division pursuant to contracts
authorized by subsection (a) of this section shall be deposited in
the same special revenue account established for bank assessment
funds pursuant to section eight of this article and shall be
subject to all provisions contained therein.
NOTE: The purpose of this bill is to authorize the
Commissioner of Banking to enter into contracts with federally
insured depository institutions to provide loan review services by
Division of Banking employees.
This section is new; therefore, strike-throughs and
underscoring have been omitted.