Committee Substitute
House Bill 2595 History
OTHER VERSIONS -
Introduced Version
|
Enrolled Version - Final Version
|
| Email
Key: Green = existing Code. Red = new code to be enacted
COMMITTEE SUBSTITUTE
FOR
H. B. 2595
(By Delegates Williams and Carper)
(Originating in the House Committee on Banking and Insurance)
[March 24, 1993]
A BILL 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 exchange
and other evidences of indebtedness, borrow money, receivedeposits 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 such 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 , subject to the following
limitations and for the following purposes:(a) Ssuch property as
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, unlessthe consent in writing of the commissioner of banking 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:
(b) (1) Such as shall be mortgaged to it in good faith as
security for debts in its favor;
(c) (2) Such as shall be conveyed to it in satisfaction of
debts previously contracted in the course of its business
dealings; and
(d) (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. and
(e) (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 (c) and (d) 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 In every case such
property shall be disposed of within ten years from the time itis acquired by the banking institution, unless an extension of
time is given in writing by the commissioner of banking.
(f) No such 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.