1123jb

___________________ moved that HB 1123 be amended as follows:

     On page 1 of the House Judiciary Committee engrossed bill, delete lines 4 to 8 , inclusive, and insert:

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     Section 1. That § 51A-1-2 be amended by adding thereto NEW SUBDIVISIONS to read as follows:

     "Articles of incorporation," articles of incorporation for a bank organized by incorporators as a corporation pursuant to chapters 47-2 to 47-9, inclusive, and articles of organization for a bank organized by organizers or members as a limited liability company pursuant to chapter 47-34A;

     "By-laws," by-laws for a bank organized by incorporators as a corporation pursuant to chapters 47-2 to 47-9, inclusive, and operating agreement for a bank organized by organizers or members as a limited liability company pursuant to chapter 47-34A;

     "Stockholder," a shareholder of a bank organized by incorporators as a corporation pursuant to chapters 47-2 to 47-9, inclusive, and a member for a bank organized by organizers or members as a member as a limited liability company pursuant to chapter 47-34A;

     "Board of directors," board of directors for a bank organized by incorporators as a corporation pursuant to chapters 47-2 to 47-9, inclusive, and a manager for a manager managed limited liability company or a member for a member managed limited liability company organized as a limited liability company pursuant to chapter 47-34A;

     "Stock," shares for the bank organized by incorporators as a corporation pursuant to chapters 47- 2 to 47-9, inclusive, and member equity for a bank organized as a limited liability company pursuant to chapter 47-34A;

     "Dividends," distributions for a corporation organized by incorporators as a corporation pursuant to chapters 47-2 to 47-9, inclusive; and distributions for a bank organized by organizers or members as a limited liability company pursuant to chapter 47-34A".

     On page 3 , after line 21, insert:

"      Section 6. That § 51A-3-2 be amended to read as follows:

     51A-3-2.   The For a bank organized as a corporation, the articles of incorporation of a bank corporation shall state:

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             (1)      That the corporation is formed for the purpose of engaging in the business of banking, or as a bank and trust company, or as a bank and trust department;

             (2)      The period for which such corporation is organized, not exceeding twenty years.

     The name of such bank shall be different from the name of any other bank or trust company in the county of its place of business. Its capital stock shall be divided into shares of not less than ten nor more than one hundred dollars each.

     For a bank organized as a limited liability company, the articles of organization shall state that the bank is formed for the purpose of engaging in the business of banking, or as a bank and trust company, or as a bank and trust department; and the period for which such limited liability company is organized, not exceeding twenty years. The name of such bank shall be different from the name of any other bank or trust company in the county of its place of business. Its members' equity shall be divided into units of not less than ten nor more than one hundred dollars each.

     Section 7. That § 51A-3-5 be amended to read as follows:

     51A-3-5.   The For a bank organized as a corporation, the original issue of bank stock shall be sold at a price of not less than twenty percent in excess of its par value and paid for in full in lawful money of the United States. The excess over the par value shall be credited on the books of the bank to the surplus.

     For a bank organized as a limited liability company the original issue of members' equity shall be sold at a price of not less than twenty percent in excess of its par value and paid for in full in lawful money of the United States. The excess over the par value shall be credited on the books of the bank to the surplus.

     Section 8. That § 51A-3-6 be amended to read as follows:

     51A-3-6.   One-tenth of the net profit for any dividend period shall be carried to the surplus fund until such fund shall amount to twenty percent of the capital stock and members' equity . Any losses sustained in excess of undivided profits may be charged to the surplus account, but no dividends shall thereafter be declared or paid until the surplus fund shall amount to twenty percent of the capital stock and members' equity .

     Section 9. That § 51A-5-6 be amended to read as follows:

     51A-5-6.   It is lawful for any national bank to engage in trust business in this state to the extent authorized by the laws of the United States, without incorporating or organizing under the laws of this state, but they shall otherwise comply with and be subject to all laws of this state which are applicable to state banks engaged in trust business including such examinations as may be deemed necessary, except that the authority of the commission and the director shall apply to their trust business only. The director may accept in lieu of an examination conducted under his the director's direction, any report of examination conducted by the appropriate federal regulatory agency.

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     Section 10. That § 51A-12-2 be amended to read as follows:

     51A-12-2.   Except as otherwise provided in this title, no bank organized as a corporation may loan, or otherwise extend credit, to any corporation, partnership, or individual, an amount greater than the sum of:

             (1)      Twenty percent of its capital stock and surplus; and

             (2)      Ten percent of its undivided profit.

     Such limit shall be determined for each calendar quarter on the basis of the bank's quarterly report of condition for the immediately previous calendar quarter.

     Such limit shall be determined for each calendar quarter on the basis of the bank's quarterly report of condition for the immediately previous calendar quarter. ".