act-2000-0-89•Pennsylvania Act 2000-89 — BANKING CODE OF 1965 - OMNIBUS AMENDMENTS
Pennsylvania Act 2000-89 — BANKING CODE OF 1965 - OMNIBUS AMENDMENTS
act-2000-0-892000 Pa. Act 89Law
Act text
BANKING CODE OF 1965 - OMNIBUS AMENDMENTS
Act of Nov. 22, 2000, P.L. 660, No. 89 Cl. 07
Session of 2000
No. 2000-89
HB 2533
AN ACT
Amending the act of November 30, 1965 (P.L.847, No.356),
entitled "An act relating to and regulating the business of
banking and the exercise by corporations of fiduciary powers;
affecting persons engaged in the business of banking and
corporations exercising fiduciary powers and affiliates of
such persons; affecting the shareholders of such persons and
the directors, trustees, officers, attorneys and employes of
such persons and of the affiliates of such persons; affecting
national banks located in the Commonwealth; affecting persons
dealing with persons engaged in the business of banking,
corporations exercising fiduciary powers and national banks;
conferring powers and imposing duties on the Banking Board,
on certain departments and officers of the Commonwealth and
on courts, prothonotaries, clerks and recorders of deeds;
providing penalties; and repealing certain acts and parts of
acts," further providing for bank holding companies, for
authorization of reciprocal interstate operations of savings
banks, for corporations authorized to act as fiduciary, for
general corporate powers and duties of incorporated
institutions, for additional powers of incorporated
institutions related to conduct of business, for additional
powers related to conduct of business of incorporated
institutions other than trust companies, for real estate
loans by banks and bank and trust companies, for transactions
with respect to shares of corporate stock and capital
securities and for real estate loans by savings banks;
further prohibiting promoters' fees; further providing for
branches outside Pennsylvania, for audits and reports and for
preferential rates of interest; and making repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 102 of the act of November 30, 1965
(P.L.847, No.356), known as the Banking Code of 1965, is amended
by adding a subsection to read:
Section 102. Definitions
Subject to additional definitions contained in subsequent
chapters of this act which are applicable to specific chapters
or sections thereof, the following words and phrases when used
in this act shall have, unless the context clearly indicates
otherwise, the meanings given to them in this section:
* * *
(ii) "Subsidiary"--a corporation or other entity defined as
a subsidiary by section 2 of the Bank Holding Company Act of
1956 (70 Stat. 133, 12 U.S.C. § 1841 et seq.), regardless of
whether the corporation or other entity is a subsidiary of a
bank holding company.
Section 2. Sections 106(b) and 115 of the act, amended July
6, 1995 (P.L.271, No.39), are amended to read:
Section 106. Corporations Authorized to Act as Fiduciary
* * *
(b) Foreign fiduciaries--No corporation existing under the
laws of a state other than this Commonwealth [or national bank
located in another state, except an interstate bank, may act in
this Commonwealth as fiduciary unless:
(i) it shall be appointed fiduciary by will or other
testamentary writing, by a deed of trust or by a court or
register of wills of this Commonwealth or it shall be
designated as fiduciary by the beneficiaries or by one or
more other fiduciaries of the estate or trust pursuant to the
terms of the instrument, or
(ii) it shall be the successor by merger or
consolidation to a corporation lawfully acting as fiduciary
in this Commonwealth at the time of such merger or
consolidation
and unless the laws of such other state confer like powers on
corporations existing under the laws of this Commonwealth. No
corporation of another state or national bank located in another
state authorized to act as fiduciary pursuant to this subsection
(b) shall be authorized to establish a place of business in this
Commonwealth.] may act in this Commonwealth as fiduciary, except
that an incorporated institution possessing fiduciary powers
pursuant to the laws of another state shall have the same power
to engage in fiduciary activities within this Commonwealth as a
national banking association acting pursuant to 12 U.S.C. § 92a
or a Federal savings association 12 U.S.C. § 1464(n), provided
that:
(i) the state laws pursuant to which the incorporated
institution is operating provide equivalent privileges to an
incorporated institution chartered by the Commonwealth,
(ii) the incorporated institution complies with the
minimum capital requirements of section 1102, and
(iii) the incorporated institution provides written
notice to the department at least thirty days prior to the
commencement of fiduciary activities, which notice shall be
accompanied by documentation of its authorization to conduct
fiduciary activities issued by the appropriate regulatory
authority of the jurisdiction in which the institution is
chartered or organized, acknowledgment by the appropriate
regulatory authority of the jurisdiction in which the
institution is chartered or organized that equivalent
privileges are provided to incorporated institutions
chartered within this Commonwealth, proof the institution
complies with the minimum capital requirements of section
1102 and a certificate of authority to do business in this
Commonwealth issued by the Department of State pursuant to 15
Pa.C.S. Ch. 41 (relating to foreign business corporations).
* * *
Section 115. Bank and Savings and Loan Holding Companies
[A] To the fullest extent as permissible under Federal law
and regulations, a bank holding company, as defined by the
Federal Bank Holding Company Act (70 Stat. 133, 12 U.S.C. § 1841
et seq.), and a savings and loan holding company, as defined by
section 10 of the Home Owners' Loan Act of 1933 (48 Stat. 128,
12 U.S.C. § 1467a), located in this Commonwealth, another state,
the District of Columbia or a territory or possession of the
United States may control one or more banks, bank and trust
companies, national banks [and], interstate banks, savings
banks, savings associations, building and loan associations or
Federal savings associations and, with the prior written
approval of the department, may acquire control of a bank, bank
and trust company [or], national bank, savings bank, savings
association, building and loan association or Federal savings
association located in this Commonwealth.
Section 3. Section 117 of the act is repealed.
Section 4. Sections 201 and 202 of the act are amended by
adding subsections to read:
Section 201. General Corporate Powers of Incorporated
Institutions
* * *
(c) Notwithstanding any conditions, limitations,
restrictions or other provisions of this act or any other law,
in addition to any other power as authorized by this act or
other law, an incorporated institution shall have the power:
(i) to engage in any activity permissible for a national
banking association, including those activities as authorized
by 12 U.S.C. § 24, subject to conditions, limitations and
restrictions as may be imposed by the department which shall
not be more restrictive than conditions, limitations and
restrictions otherwise imposed upon a national banking
association,
(ii) to engage in any activity permissible for a Federal
savings association, including those activities as authorized
by 12 U.S.C. § 1464, subject to conditions, limitations and
restrictions as may be imposed by the department which shall
not be more restrictive than conditions, limitations and
restrictions otherwise imposed upon a Federal savings
association,
(iii) to control or hold an interest in a subsidiary
that engages in any activity permissible for a national bank
to conduct through an operating or financial subsidiary,
provided that:
(A) any activity permissible for an operating
subsidiary shall be subject to conditions, limitations
and restrictions as may be imposed by the department
which shall not be more restrictive than conditions,
limitations and restrictions otherwise imposed upon an
operating subsidiary of a national banking association,
and
(B) any activity only permissible for a financial
subsidiary, and not permissible for an operating
subsidiary, shall comply with the requirements of section
121(d) of the Gramm-Leach-Bliley Act (Public Law 106-102,
113 Stat. 1338),
(iv) to control or hold an interest in a subsidiary that
engages in any activity permissible for a subsidiary of a
Federal savings association pursuant to 12 U.S.C. § 1464,
subject to conditions, limitations and restrictions as may be
imposed by the department which shall not be more restrictive
than conditions, limitations and restrictions otherwise
imposed upon a subsidiary of a Federal savings association,
or
(v) to engage in any activity or to control or hold an
interest in a subsidiary that engages in any activity
determined to be permissible for an insured state bank or the
subsidiary of an insured state bank by the Federal Deposit
Insurance Corporation pursuant to 12 U.S.C. § 1831a, subject
to conditions, limitations and restrictions as may be imposed
by the department with respect to the safety and soundness of
the incorporated institution.
(d) If an incorporated institution engages in an activity or
holds an interest permissible under more than one clause of
subsection (c), the incorporated institution may elect under
which clause notice as required by subsection (e) is given and
the activity is conducted or the interest is held.
(e) Unless earlier approval is granted by the department, an
incorporated institution shall provide at least thirty days'
prior written notice to the department before it engages in an
activity or acquires an interest only permissible under
subsection (c) or engages in an activity or acquires an interest
as otherwise authorized by this act, subject only to conditions,
limitations or restrictions as provided by subsection (c).
During the review period provided by this subsection, the
department may:
(i) request further information concerning any proposed
activity or interest,
(ii) impose any conditions, limitations or restrictions
upon such interests or activities to the extent authorized by
subsection (c), or
(iii) prohibit an incorporated institution from engaging
in an activity or acquiring an interest if to do so would
have a significant adverse impact upon the safety and
soundness of the incorporated institution.
Except as otherwise agreed to by an incorporated institution,
the department shall be deemed to have granted approval for an
incorporated institution to engage in an activity or acquire an
interest if within thirty days of receipt of written notice from
an incorporated institution the department does not impose
conditions, limitations or restrictions upon interests or
activities as authorized by subsection (c) or prohibit the
incorporated institution from engaging in an activity or
acquiring an interest authorized by subsection (c).
(f) Notwithstanding any other provisions of this act or any
other law, an incorporated institution shall have the same power
to engage in fiduciary activities, both within and outside of
this Commonwealth, as a national banking association pursuant to
12 U.S.C. § 92a. The department shall interpret the provisions
of 12 U.S.C. § 92a in a manner consistent with regulations and
interpretations as provided by the Comptroller of the Currency.
Section 202. Additional Powers of Incorporated Institutions
Related to Conduct of Business
An incorporated institution shall have in addition to other
powers granted by this act or its articles and subject to the
limitations and restrictions contained in this act or in its
articles:
* * *
(k) Delivery service--the power to pick up from and deliver
to customers cash or other valuables relating to financial
services provided by the incorporated institution using a
contract carrier or employes or affiliates of the incorporated
institution. No separate authorization or approval by the
department shall be required for an incorporated institution to
provide delivery service, provided that the incorporated
institution complies with other laws and regulations applicable
to the provision of delivery service.
Section 5. Sections 203(d) and 306(d) of the act, amended
July 6, 1984 (P.L.621, No.128), are amended to read:
Section 203. Additional Powers Related to Conduct of Business
of Incorporated Institutions Other Than Trust
Companies
A bank, a bank and trust company and a savings bank shall
have in addition to other powers granted by this act or its
articles and subject to the limitations and restrictions
contained in this act or in its articles:
* * *
(d) Subsidiaries--in addition to the power to acquire and
hold interests in a subsidiary permissible under section
201(c)(iii), (iv) and (v), the power to acquire and hold,
without limitation of amount, the stock of subsidiary
corporations engaged in activities permissible for such
institution and activities permissible under the Bank Service
Corporation Act (Public Law 87-856, 12 U.S.C. § 1861 et seq.),
[if the shares are acquired with the prior written approval of
the department and in accordance with the terms and conditions
of transfer prescribed by the department.] subject to any
conditions, limitations and restrictions comparable to those
which may be imposed pursuant to section 201(c)(iii), (iv) and
(v) and to notice and review as provided by section 201(e).
* * *
Section 306. Limits on Indebtedness of One Customer (Including
Purchased Paper)
* * *
(d) Regulation--The department may by regulation not
inconsistent with the provisions of this section and section
1414(c) prescribe definitions of and requirements for
transactions included in or excluded from the indebtedness to
which the fifteen percent limitation of this section applies.
* * *
Section 6. Section 310(a) of the act, amended December 21,
1988 (P.L.1416, No.173), is amended to read:
Section 310. Real Estate Loans
(a) Permissible loans; [maximum amount and] term and maximum
amount--An institution may, subject to the requirements of this
section, make or acquire a loan secured by a lien on real estate
(including a lease-hold) located in any state or the District of
Columbia, in a dependency or insular possession of the United
States or in the Commonwealth of Puerto Rico[, in an amount and
for a term not to exceed]:
(i) in the case of improved real estate, including farm
land, for a term not to exceed:
(A) [two-thirds of the value for] ten years, if
unamortized, or
(B) [four-fifths of the value for thirty] forty
years, if the terms of the loan require substantially
equal payments at successive intervals of not more than
one year each and in an amount sufficient to pay all
principal of and interest on the loan within the term of
the loan, except that a loan to a commercial or
industrial borrower is exempted from the requirement of
substantially equal payments and the date of the initial
payment on a loan to such borrower may be deferred for a
period not in excess of [three] five years from the date
of the loan; or
[(C) ninety percent of the value of a one family
residential property for thirty years, in an amount not
to exceed forty thousand dollars ($40,000), or such
larger amount as the department may permit by regulation,
subject to the same requirements set forth in clause (B);
or
(D) ninety-five percent of the value for thirty
years, if that principal portion of the loan in excess of
seventy-five percent of the value is made in reliance
upon a private company mortgage insurance or guarantee
acceptable to the Department of Banking, subject to the
same requirements set forth in clause (B); or]
(ii) in the case of unimproved real estate to be
acquired or developed with the proceeds of the loan, [three-
fourths of the value for five years.] for a term not to
exceed five years; and
(iii) in an amount not to exceed ninety percent of the
value of the loan except that if the amount of the loan does
not exceed one hundred thousand dollars ($100,000) or is made
in reliance upon a private mortgage insurance or guarantee
acceptable to the department regardless of the amount of the
loan, then one hundred percent of the value of the loan.
* * *
Section 7. Section 311 of the act is amended by adding
subsections to read:
Section 311. Transactions With Respect to Shares of Corporate
Stock and Capital Securities
* * *
(c.1) Collateral loans with affiliates--An institution may
engage in a covered transaction with an affiliate, including the
acceptance of securities issued by an affiliate as collateral
security for a loan or extension of credit, if the institution
complies with the requirements of 12 U.S.C. § 371c. The
department shall interpret the requirements of 12 U.S.C. § 371c
in a manner consistent with regulations, orders and
interpretations as issued by the Board of Governors of the
Federal Reserve System.
* * *
(e.1) Transactions with affiliates--An institution may
engage in a transaction with an affiliate, including the
extension of credit to acquire or hold shares of capital
securities of an affiliate, if the institution complies with the
requirements of 12 U.S.C. § 371c-1. The department shall
interpret the requirements of 12 U.S.C. § 371c-1 in a manner
consistent with regulations, orders and interpretations as
issued by the Board of Governors of the Federal Reserve System.
(f) Determination of surplus--For the purposes of this
section, an institution may determine its surplus in the same
manner as calculated for purposes of satisfying limitations upon
the ownership of shares of banks and holding companies as
provided by 12 U.S.C. § 24.
Section 8. Section 403(g) of the act is repealed.
Section 9. Section 505(a) of the act, amended December 21,
1988 (P.L.1416, No.173), is amended to read:
Section 505. Real Estate Loans
(a) Permissible loans; [maximum amount and] term and maximum
amount--A savings bank may, subject to the requirements of this
section, make or acquire a loan secured by a lien on real estate
(including a leasehold) located in any state or the District of
Columbia, in a dependency or insular possession of the United
States or in the Commonwealth of Puerto Rico[, in an amount and
for a term not to exceed]:
(i) in the case of improved real estate, including farm
land, for a term not to exceed:
(A) [two-thirds of the value for] ten years, if
unamortized[, or three-fourths of the value for five
years, if unamortized]; or
(B) [four-fifths of the value for thirty] forty
years, if the terms of the loan require payments which
are substantially equal except for the last payment at
successive intervals of not more than one year each and
in an amount sufficient to pay all principal of and
interest on the loan within [thirty years] the term of
the loan, except that a loan to a commercial or
industrial borrower is exempted from the requirement of
substantially equal payments and the date of the initial
payment on a loan to such borrower may be deferred for a
period not in excess of five years from the date of the
loan; or
[(C) ninety percent of the value of a one family
residential property for thirty years, in an amount not
to exceed forty thousand dollars ($40,000), unless the
department by regulation approves the granting of loans
under this subsection in greater amounts, subject to the
same requirements set forth in clause (B); or
(D) ninety-five percent of the value for thirty
years, if that portion of the loan in excess of seventy-
five percent of the value is made in reliance upon a
private company mortgage insurance or guarantee
acceptable to the Department of Banking, subject to the
same requirements set forth in clause (B); or]
(ii) in the case of unimproved real estate to be
acquired or developed with the proceeds of the loan, [three-
fourths of the value for five years.] for a term not to
exceed five years; and
(iii) in an amount not to exceed ninety percent of the
value of the loan except that, if the amount of the loan does
not exceed one hundred thousand dollars ($100,000) or is made
in reliance upon a private mortgage insurance or guarantee
acceptable to the department regardless of the amount of the
loan, then one hundred percent of the value of the loan.
* * *
Section 10. Section 907(c) of the act, added July 6, 1995
(P.L.271, No.39), is amended to read:
Section 907. Branches Outside Pennsylvania
* * *
(c) An institution may maintain branches in any other state,
the District of Columbia or a territory or possession of the
United States upon receiving the prior written approval of the
department after filing an application and paying a fee to the
department in a form and amount prescribed by the department,
except no approval is required for national banks or Federal
savings associations under this subsection.
Section 11. Section 1003(a) of the act is amended to read:
Section 1003. Prohibition of Promoters' Fees
(a) Prohibited fees--An institution shall not pay any fee,
compensation or commission for promotion in connection with its
organization or apply any money received on account of shares or
subscriptions for shares to promoters' fees for obtaining
subscriptions, selling shares or other services in connection
with its organization, except legal fees and other usual and
ordinary expenses, including reasonable brokers' fees,
commissions and underwriting costs, necessary for its
organization.
* * *
Section 12. Section 1407 of the act is amended by adding a
subsection to read:
Section 1407. Audits and Reports by Directors or Trustees;
Accountants; Internal Auditors
* * *
(d) Accounting standards--Audits and reports shall be deemed
to satisfy the requirements of this section to the extent the
audits and reports conform to accounting standards and
principles applicable pursuant to 12 U.S.C. § 1831n to reports
or statements required to be filed with Federal banking
agencies.
Section 13. Section 1414 of the act, amended April 8, 1982
(P.L.262, No.79), is amended to read:
Section 1414. Preferential Rates of Interest
(a) Preferences prohibited--[An] Notwithstanding the
provisions of section 306 and except as provided by subsection
(c), an institution shall not pay to any director, trustee,
executive officer or attorney a higher rate of interest on
deposits than the rate paid to any other depositor on similar
deposits and shall not grant to any such individual a lower rate
of interest on a loan, or a lower rate of charge on an agreement
for the payment of money, than the rate granted to other
customers under similar circumstances.
[(b) Limited definition--The term "executive officer" for
the purposes of this section shall be defined by regulation of
the Department of Banking.]
(c) Authorized activities--Notwithstanding any other
provision of this act, an institution may extend credit to any
director, trustee, executive officer, attorney or principal
shareholder, or to any related interest of such a person, to the
extent permissible pursuant to 12 U.S.C. §§ 375a and 375b. The
department shall interpret the provisions of 12 U.S.C. §§ 375a
and 375b in a manner consistent with regulations, orders and
interpretations as issued by the Board of Governors of the
Federal Reserve System. A regulation, order or interpretation of
the provisions of 12 U.S.C. §§ 375a and 375b by the Board of
Governors of the Federal Reserve System shall take effect for
the purposes of this subsection within thirty days of
promulgation by the Board of Governors except that the
department may for good cause suspend the application of such
regulation, order or interpretation for up to a one-year period.
Notice of such suspension shall be published by the department
in the Pennsylvania Bulletin. Thereafter, the regulation, order
or interpretation shall take effect for the purposes of this
subsection unless the department adopts administrative
regulations setting forth a contrary interpretation of the
provisions of 12 U.S.C. §§ 375a and 375b. A regulation, order or
interpretation of the provisions of 12 U.S.C. §§ 375a and 375b
by the Board of Governors of the Federal Reserve System may take
effect for the purposes of this subsection within less than
thirty days of promulgation by the Board of Governors if
approved by the department.
Section 14. Sections 1415 and 2102(c) of the act are
repealed.
Section 15. (a) The following acts and parts of acts are
repealed to the extent specified:
Sections 114 and 212.1 of the act of December 14, 1967
(P.L.746, No.345), known as the Savings Association Code of
1967.
(b) All other acts and parts of acts are repealed insofar as
they are inconsistent with this act.
Section 16. This act shall take effect immediately.
APPROVED--The 22nd day of November, A. D. 2000.
THOMAS J. RIDGE
Continua la tua ricerca in ChatGPT o Claude
Collega Omnilex per cercare nel corpus legale dal tuo assistente IA.