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ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 2595
(By Delegates Williams and Carper)
[Passed April 6, 1993; in effect from passage.]
AN ACT to amend and reenact section thirteen, article four,
chapter thirty-one-a of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
the powers of state banking institutions generally; the
authorization to own real property; and determining how
certain real estate is to be valued.
Be it enacted by the Legislature of West Virginia:
That section thirteen, article four, chapter thirty-one-a of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 4. BANKING INSTITUTIONS AND SERVICES GENERALLY.
§31A-4-13. Powers of state banking institutions generally.
(a) Any state-chartered banking institution shall have and
exercise all of the powers necessary for, or incidental to, the
business of banking, and without limiting or restricting such
general powers, it shall have the right to buy or discount
promissory notes and bonds, negotiate drafts, bills of exchangeand other evidences of indebtedness, borrow money, receive
deposits on such terms and conditions as its officers may
prescribe, buy and sell, exchange, bank notes, bullion or coin,
loan money on personal or other security, rent safe-deposit boxes
and receive on deposit, for safekeeping, jewelry, plate, stocks,
bonds and personal property of whatsoever description and provide
customer services incidental to the business of banking,
including, but not limited to, the issuance and servicing of and
lending money by means of credit cards as letters of credit or
otherwise. Any state-chartered banking institution may accept,
for payment at a future date, not to exceed one year, drafts
drawn upon it by its customers. Any state-chartered banking
institution may issue letters of credit, with a specified
expiration date or for a definite term, authorizing the holders
thereof to draw drafts upon it or its correspondents, at sight or
on time. Any such banking institution may organize, acquire,
own, operate, dispose of, and otherwise manage wholly owned
subsidiary corporations for purposes incident to the banking
powers and services authorized by this chapter.
(b) Any state-chartered banking institution may acquire,
own, hold, use and dispose of real estate, which shall in no case
be carried on its books at a value greater than the actual cost:
Provided,
That such property shall be necessary for the
convenient transaction of its business, including any buildings,
office space or other facilities to rent as a source of income:
Provided, however,
That such investment hereafter made shall not
exceed sixty-five percent of the amount of its capital stock and
surplus, unless the consent in writing of the commissioner ofbanking is first secured.
(c) Any state-chartered banking institution may acquire,
own, hold, use and dispose of real estate, which shall be carried
on its books at the lower of fair value or cost as defined in
rules promulgated by the commissioner of banking, subject to the
following limitations:
(1) Such as shall be mortgaged to it in good faith as
security for debts in its favor;
(2) Such as shall be conveyed to it in satisfaction of
debts previously contracted in the course of its business
dealings; and
(3) Such as it shall purchase at sales under judgments,
decrees, trust deeds or mortgages in its favor, or shall purchase
at private sale, to secure and effectuate the payment of debts
due to it.
(d) The value at which any real estate is held shall not be
increased by the addition thereto of taxes, insurance, interest,
ordinary repairs, or other charges which do not materially
enhance the value of the property.
(e) Any real estate acquired by any such banking institution
under subdivisions two and three of subsection (c) of this
section shall be disposed of by the banking institution at the
earliest practicable date, but the officers thereof shall have a
reasonable discretion in the matter of the time to dispose of
such property in order to save the banking institution from
unnecessary losses:
Provided,
That in every case such property
shall be disposed of within ten years from the time it is
acquired by the banking institution, unless an extension of timeis given in writing by the commissioner of banking.
(f) No state-chartered banking institution shall hereafter
invest more than twenty percent of the amount of its capital and
surplus in furniture and fixtures, whether the same be installed
in a building owned by such banking institution, or in quarters
leased by it, unless the consent in writing of the commissioner
of banking is first secured.