Bill 2075

                    Current Status

Bill Number:               2075
Ratification Number:       74
Act Number:                46
Introducing Body:          House
Subject:                        Banker's banks

(A46, R74, H2075)

AN ACT TO AUTHORIZE THE ESTABLISHMENT OF "BANKER'S BANKS" TO PROVIDE BANKING SERVICES FOR OWNER BANKS, TO DEFINE "BANKER'S BANKS", AND PROVIDE FOR THEIR REGULATION BY THE STATE BOARD OF FINANCIAL INSTITUTIONS.

Be it enacted by the General Assembly of the State of South Carolina:

Definition

SECTION 1. As used in this act, "banker's bank" means a bank insured by the Federal Deposit Insurance Corporation or the holding company which owns or controls such an insured bank where the stock of the bank or holding company is owned exclusively by other banks and the bank or holding company and all its subsidiaries are engaged exclusively in providing services for other depository institutions, their officers, directors, and employees.

Corporation may be formed

SECTION 2. With the approval of the State Board of Financial Institutions, a corporation may be formed under the laws of this State for the purpose of becoming a banker's bank.

Bank subject to provisions

SECTION 3. A banker's bank chartered pursuant to this act is subject to the appropriate banking provisions in Title 34 of the 1976 Code and the regulations thereunder and except as specifically provided in this act or by order of the State Board of Financial Institutions, a banker's bank is vested with and subject to the same rights, privileges, duties, restrictions, penalties, liabilitites, conditions, and limitations that would apply to a state bank.

Bank may repurchase stock

SECTION 4. Notwithstanding any provision of Title 34 of the 1976 Code, a banker's bank may repurchase, for its own account, shares of its own capital stock, but the outstanding capital stock may not be reduced below the minimum required by law without the prior approval of the State Board of Financial Institutions.

Board of Financial Institutions may exempt bank

SECTION 5. If the State Board of Financial Institutions determines that any provision of Title 34 of the 1976 Code is inconsistent with the purpose for which a banker's bank is organized and that the public welfare or any financial institution would not be jeopardized thereby, it may by regulation exempt a banker's bank from the provision or limit its application.

Investment of capital stock

SECTION 6. Notwithstanding any other provision of law, up to fifteen percent of the capital accounts of a bank may be invested in the capital stock of a banker's bank, except that no purchase of stock may result in acquisition of more than five percent of any class of voting securities of the banker's bank.

Time effective

SECTION 7. This act shall take effect upon approval by the Governor.