COMMITTEE SUBSTITUTE
FOR
H. B. 4063
(By Delegates Ron Thompson, H. White and Perry)
(Originating in the House Committee on Banking and Insurance)
[February 9, 2006]
A BILL to amend and reenact §31A-4-2 of the Code of West
Virginia, 1931, as amended, relating to banks; authorizing
use of certain banking terms in connection with the name of
a business; and setting forth the limitations on such
authorization.
Be it enacted by the Legislature of West Virginia:
That §31A-4-2 of the Code of West Virginia,1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 4. BANKING INSTITUTIONS AND SERVICES GENERALLY.
§31A-4-2. Use of terms; unlawfully engaging in banking business;
penalties; enforcement.
(a) No person doing business in this state, except a banking
institution, a person authorized by the commissioner under the
terms of this section or an insurer licensed pursuant to article three, chapter thirty-three of this code under a name including the
terms set forth herein as of the thirty-first day of December, two
thousand three, may use or advertise in connection with such
business, or as a designation or title thereof, the term "bank,"
"banker," "banking," "banking company," "industrial bank," "savings
bank" or "trust company" and the Insurance Commissioner shall
notify the commissioner of each insurer so licensed.
Notwithstanding the foregoing restriction, the term "banker" may be
used in (1) the legal name of a real estate franchisor; and (2) the
tradename of a real estate brokerage firm who is a current or
future franchisee of a real estate franchise system, if in either
case the use of the term "banker" stems from a family surname
belonging to a principal or former principal of the firm, whether
or not such principal or former principal is currently living. No
person doing business in this state except a banking institution or
a person authorized by the commissioner under this article may
engage in the banking or trust business in this state. A
nonbanking subsidiary of a bank holding company or a nonbanking
subsidiary of a banking institution having a bank branch or bank
main office in this state that provides trust services pursuant to
section fourteen of this article may use the term "trust company"
in its title and advertising. A trust entity owned jointly by
federally insured depository institutions located within this state
and authorized by the commissioner to operate in this state may use the term "trust company" in its title and advertising.
(b) It is unlawful for any such person other than banking
institutions, as herein excepted, to advertise or hold himself,
herself, itself or themselves, as the case may be, out to the
public in any manner indicating, directly, indirectly or by
implication, that any of them is are engaged in the banking or
trust business or is authorized and approved to engage therein in
this state. A nonbanking subsidiary of a bank holding company or
nonbanking subsidiary of a banking institution having a bank branch
or bank main office in this state that provides trust services
pursuant to section fourteen of this article may hold itself out to
the public as engaged in the trust business. A trust entity owned
jointly by federally insured depository institutions located within
this state and authorized by the commissioner to operate in this
state may hold itself out to the public as engaged in the trust
business.
(c) The commissioner may authorize a person to utilize use the
term "bank," or "banc" in connection with nonprofit organizations
or medical businesses where the term would have a common meaning
separate and apart from a financial institution and would not
result in confusion to the public (e.g., food bank; medical
databank); and in connection with bank holding companies or their
nonbanking affiliates where the term denotes the entities' common
affiliation and would not result in confusion to the public.
(d) Any violation of the provisions of this section
constitutes is a misdemeanor offense, punishable as provided in
section fifteen, article eight of this chapter.
(e) The Commissioner of Banking, or any one or more banking
institutions, acting individually or jointly may petition the
circuit court of the county in which any violation of the
provisions of this section occur or are threatened to occur for
injunction or other appropriate judicial remedies for enforcement
of the provisions hereof of this section and the prevention of
further or continued violations thereof of this section.