HB 1834-1_ Filed 02/14/2003, 10:56


Text Box

Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

11

                                                        NO:
0

MR. SPEAKER:
    Your Committee on       Financial Institutions     , to which was referred       House Bill 1834     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

SOURCE: Page 5, line 12; (03)AM183401.5. -->     Page 5, between lines 12 and 13, begin a new paragraph and insert:
SOURCE: IC 28-6.1-8-8; (03)AM183401.7. -->     "SECTION 7. IC 28-6.1-8-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. Subject to any limitations imposed by the department through policy, a A savings bank may do any of the following:
        (1) Invest the money deposited in the savings bank in the shares of the capital stock, bonds, debentures, notes, or other obligations of a federal home loan bank of the United States.
        (2) Become a member of the federal home loan bank of this or an adjoining district.
        (3) Borrow money from:
            (A) a bank described in subdivision (2);
            (B) the Federal Deposit Insurance Corporation; or
            (C) any other corporation.
        (4) Transfer, assign to, and pledge with a bank described in subdivision (2), the Federal Deposit Insurance Corporation, or other corporation, any of the bonds, notes, contracts, mortgages, securities, or other property of the savings bank held or acquired, as security for the payment of loans entered into under subdivision (3).
        (5) Exercise all rights, powers, and privileges conferred upon, and to do all things and perform all acts required of, members or shareholders of a federal home loan bank by the Federal Home Loan Bank Act (12 U.S.C. 1421 through 1449).".
SOURCE: Page 14, line 27; (03)AM183401.14. -->     Page 14, line 27, delete "public".
    Page 15, between lines 33 and 34, begin a new paragraph and insert:
SOURCE: IC 28-11-4-5; (03)AM183401.19. -->     "SECTION 19. IC 28-11-4-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. If the department enters into a consent to a final order under section 7 of this chapter with a financial institution, director, or officer, or employee, the director is not required to issue and serve a notice of charges upon the financial institution, director, or officer under section 2 or 3 of this chapter. A consent agreement may be negotiated and entered into before or after the issuance of a notice of charges.
SOURCE: IC; (03)AM183401.20. -->     SECTION 20. IC 28-11-4-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. (a) If the department determines that an alleged practice, a violation, or an act specified in a notice served under this chapter is likely to:
        (1) cause insolvency of the financial institution;
        (2) cause substantial dissipation of assets or earnings of the financial institution; or
        (3) otherwise seriously prejudice the interests of the depositors of the financial institution;
the department may issue a temporary order without a hearing.
    (b) A temporary order may
        (1) require the financial institution to cease and desist from the practice or violation. or
        (2) temporarily remove a director or an officer of the financial institution.
    (c) A temporary order is effective upon service and remains effective and enforceable until the earliest of the following:
        (1) The issuance of an injunction by a court under subsection (d).
        (2) The dismissal of the charges by the department.
        (3) The effective date of a final order under section 7 of this chapter.
    (d) A financial institution a director, or an officer served with a temporary order under this section may apply to a court having jurisdiction for an injunction to stay, modify, or vacate the order.".
SOURCE: Page 16, line 15; (03)AM183401.16. -->     Page 16, line 15, after "cause shown." insert " A final order issued under this chapter may be made public by the department.".
    Page 17, line 16, delete "company" and insert " company, savings bank, or savings association".
    Page 17, line 18, delete "company or savings bank." and insert " company, savings bank, or savings association.".
    Page 17, line 19, delete "company" and insert " company, savings bank, or savings association".
    Page 17, line 20, after "protection of" insert " the depositors of".
    Page 17, line 21, strike "company's depositors," and insert " company, savings bank, or savings association,".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1834 as introduced.)

and when so amended that said bill do pass.

__________________________________

Representative Bardon


AM183401/DI 108    2003