HF 2669

Introduction - 83rd Legislature (2003 - 2004)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to financial institutions; regulating the 
  1.3             investment authority of certain financial 
  1.4             institutions; removing obsolete references to the 
  1.5             credit union advisory task force; amending Minnesota 
  1.6             Statutes 2002, sections 47.10, subdivision 1; 52.062, 
  1.7             subdivision 2; repealing Minnesota Statutes 2002, 
  1.8             section 52.062, subdivision 3. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 47.10, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [AUTHORITY, APPROVAL, LIMITATIONS.] (a) 
  1.13  Except as otherwise specially provided, the net book value of 
  1.14  land and buildings for the transaction of the business of the 
  1.15  corporation, including parking lots and premises leased to 
  1.16  others, shall not be more than as follows:  
  1.17     (1) for a bank, trust company, savings bank, or stock 
  1.18  savings association, if investment is for acquisition and 
  1.19  improvements to establish a new bank banking office, or is for 
  1.20  improvements to existing property or acquisition and 
  1.21  improvements to adjacent property, approval by the commissioner 
  1.22  of commerce is not required if the total investment does not 
  1.23  exceed 50 percent of its existing capital stock and paid-in 
  1.24  surplus.  Upon written prior approval of the commissioner of 
  1.25  commerce, a bank, trust company, savings bank, or stock savings 
  1.26  association may invest in the property and improvements in 
  1.27  clause (1) or for acquisition of nonadjacent property for 
  2.1   expansion or future use, if the aggregate of all such 
  2.2   investments does not exceed 100 percent of its existing capital 
  2.3   stock and paid-in surplus; 
  2.4      (2) for a mutual savings association, five percent of its 
  2.5   net assets.  
  2.6      (b) For purposes of this subdivision, an intervening 
  2.7   highway, street, road, alley, other public thoroughfare, or 
  2.8   easement of any kind does not cause two parcels of real property 
  2.9   to be nonadjacent. 
  2.10     Sec. 2.  Minnesota Statutes 2002, section 52.062, 
  2.11  subdivision 2, is amended to read: 
  2.12     Subd. 2.  [SUSPENSION.] The commissioner of commerce may 
  2.13  suspend the operation of the credit union by giving notice to 
  2.14  its board of directors by certified mail with a copy to the 
  2.15  advisory council.  Said notice shall include a list of reasons 
  2.16  for said suspension and a list of any specific violations of 
  2.17  law, bylaw, or rule, and shall specify which operations of the 
  2.18  credit union may be continued during the period of suspension.  
  2.19  The notice shall also fix a time and place for a hearing before 
  2.20  the commissioner of commerce or such person or persons as the 
  2.21  commissioner of commerce may designate.  The hearing shall be 
  2.22  held within 60 days of the notice of suspension, and the 
  2.23  advisory council shall sit at such hearing for the purpose of 
  2.24  providing advice and counsel to the commissioner of commerce or 
  2.25  a representative.  Evidence may be produced at said hearing by 
  2.26  any party thereto, and the commissioner of commerce shall base 
  2.27  the decision as to the continued suspension of operation of the 
  2.28  credit union upon said evidence.  If the commissioner of 
  2.29  commerce decides to continue the suspension, the commissioner 
  2.30  shall give notice of the decision to the board of directors of 
  2.31  the credit union. 
  2.32     Sec. 3.  [REPEALER.] 
  2.33     Minnesota Statutes 2002, section 52.062, subdivision 3, is 
  2.34  repealed.