Senate Bill No. 272
(By Senators Minard, Jenkins, Barnes and Plymale)
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[Introduced January 25, 2006; referred to the Committee
on Banking and Insurance; and then to the Committee on Finance.]
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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 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.