HOUSE AMENDED
PRIOR PRINTER'S NOS. 1101, 1456, 1626 PRINTER'S NO. 2063
No. 1007 Session of 1991
INTRODUCED BY SALVATORE, APRIL 25, 1991
AS REPORTED FROM COMMITTEE ON BUSINESS AND COMMERCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 31, 1992
AN ACT
1 Amending the act of November 30, 1965 (P.L.847, No.356),
2 entitled "An act relating to and regulating the business of
3 banking and the exercise by corporations of fiduciary powers;
4 affecting persons engaged in the business of banking and
5 corporations exercising fiduciary powers and affiliates of
6 such persons; affecting the shareholders of such persons and
7 the directors, trustees, officers, attorneys and employes of
8 such persons and of the affiliates of such persons; affecting
9 national banks located in the Commonwealth; affecting persons
10 dealing with persons engaged in the business of banking,
11 corporations exercising fiduciary powers and national banks;
12 conferring powers and imposing duties on the Banking Board,
13 on certain departments and officers of the Commonwealth and
14 on courts, prothonotaries, clerks and recorders of deeds;
15 providing penalties; and repealing certain acts and parts of
16 acts," further providing FOR THE DUTIES OF THE ADVISORY <--
17 COMMISSION, FOR NONCONFORMING LOANS, for residency
18 requirements of directors or trustees AND FOR THE POWERS OF <--
19 THE DEPARTMENT.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Section 1403(b) of the act of November 30, 1965 <--
23 (P.L.847, No.356), known as the Banking Code of 1965, is amended
24 to read:
25 SECTION 1. SECTION 116(K) OF THE ACT OF NOVEMBER 30, 1965 <--
1 (P.L.847, NO.356), KNOWN AS THE BANKING CODE OF 1965, ADDED JUNE
2 25, 1986 (P.L.259, NO.69), IS AMENDED TO READ:
3 SECTION 116. AUTHORIZATION OF RECIPROCAL INTERSTATE BANKING
4 * * *
5 (K) ESTABLISHMENT OF ADVISORY COMMISSION--FOR THE PURPOSE OF
6 ADVISING THE DEPARTMENT IN THE CONDUCT OF ITS FUNCTIONS UNDER
7 SUBSECTIONS (I) AND (J), THERE IS HEREBY ESTABLISHED AN ADVISORY
8 COMMISSION WHICH SHALL CONSIST OF NINE INDIVIDUALS SELECTED AS
9 FOLLOWS: FIVE MEMBERS APPOINTED BY THE GOVERNOR, ONE OF WHOM MAY
10 BE SELECTED FROM A LIST OF AT LEAST THREE NAMES SUBMITTED BY THE
11 PENNSYLVANIA BANKERS ASSOCIATION, ONE OF WHOM MAY BE SELECTED
12 FROM A LIST OF AT LEAST THREE NAMES SUBMITTED BY THE ASSOCIATION
13 OF SAVINGS INSTITUTIONS, ONE OF WHOM MAY BE SELECTED FROM A LIST
14 OF AT LEAST THREE NAMES SUBMITTED BY THE PENNSYLVANIA CREDIT
15 UNION LEAGUE, ONE OF WHOM SHALL HAVE BEEN SELECTED BY THE
16 GOVERNOR TO BROADLY REPRESENT BUSINESS INTERESTS AND ONE OF WHOM
17 SHALL HAVE BEEN SELECTED BY THE GOVERNOR TO BROADLY REPRESENT
18 CONSUMER INTEREST; AND ONE MEMBER EACH APPOINTED BY THE
19 PRESIDENT PRO TEMPORE AND THE MINORITY LEADER OF THE SENATE AND
20 THE SPEAKER AND MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES.
21 THE TERM OF THE INITIAL MEMBER OF THE ADVISORY COMMISSION SHALL
22 BE UNTIL DECEMBER 31, 1988, AND THE TERM OF EACH MEMBER
23 THEREAFTER SHALL BE TWO CALENDAR YEARS. THE SECRETARY OF BANKING
24 SHALL MEET WITH THE ADVISORY COMMISSION AT LEAST QUARTERLY FOR
25 THE FIRST YEAR AND THEREAFTER [AT LEAST ANNUALLY] AS DETERMINED
26 BY THE SECRETARY. EACH MEMBER SHALL BE ENTITLED TO RECEIVE
27 TRAVEL AND RELATED EXPENSES AND SUCH PER DIEM HONORARIUM AS THE
28 DEPARTMENT SHALL DETERMINE TO BE PAID FROM THE FEES RECEIVED BY
29 THE DEPARTMENT UNDER THIS SECTION. THE ADVISORY COMMISSION SHALL
30 PROVIDE INFORMATION, OPINIONS AND RECOMMENDATIONS AS TO
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1 GUIDELINES THE DEPARTMENT MAY ESTABLISH, FROM TIME TO TIME, FOR
2 THE PURPOSE OF DETERMINING THE OVERALL PERFORMANCE OF AN
3 INSTITUTION OR COMPANY UNDER SUBSECTION (I) AND THE AVAILABILITY
4 OF BASIC TRANSACTION ACCOUNT SERVICES UNDER SUBSECTION (J). ALL
5 DECISIONS AND DETERMINATIONS MADE UNDER THIS SECTION SHALL BE
6 MADE BY THE DEPARTMENT.
7 * * *
8 SECTION 2. SECTION 310(E) OF THE ACT IS AMENDED BY ADDING A
9 CLAUSE TO READ:
10 SECTION 310. REAL ESTATE LOANS
11 * * *
12 (E) EXCEPTED LOANS--THE RESTRICTIONS AND REQUIREMENTS OF
13 THIS SECTION SHALL NOT APPLY TO:
14 * * *
15 (VIII) A RESIDENTIAL MORTGAGE LOAN SECURED BY REAL
16 ESTATE LOCATED IN A LOW TO MODERATE INCOME AREA.
17 * * *
18 SECTION 3. SECTION 1403(B) OF THE ACT IS AMENDED TO READ:
19 Section 1403. Number, Qualifications and Eligibility of
20 Directors or Trustees
21 * * *
22 (b) Qualifications--Each director or trustee shall be a
23 citizen of the United States: PROVIDED, HOWEVER, THAT THIS <--
24 CITIZENSHIP REQUIREMENT MAY BE WAIVED FOR NOT MORE THAN TWENTY
25 PERCENT OF THE TOTAL NUMBER OF DIRECTORS OF AN INSTITUTION OR
26 TRUSTEES OF A SAVINGS BANK WITH THE PRIOR WRITTEN APPROVAL OF
27 THE DEPARTMENT and at least two-thirds of the directors or
28 trustees [shall be residents of Pennsylvania] must have resided
29 in Pennsylvania or within one hundred miles of the location of
30 the institution for at least one year immediately preceding
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1 their election and must be a resident RESIDENTS of Pennsylvania <--
2 or reside within one hundred miles of the location of the
3 institution during their continuance in office.
4 * * *
5 SECTION 4. SECTION 2005 OF THE ACT, AMENDED DECEMBER 17, <--
6 1982 (P.L.1367, NO.313), IS AMENDED TO READ:
7 SECTION 2005. ADDITIONAL POWERS OF THE DEPARTMENT OF BANKING
8 (A) FUNCTIONS OF DEPARTMENT.--THE FUNCTIONS OF THE
9 DEPARTMENT OF BANKING SHALL BE:
10 (I) TO EXERCISE THE POWER TO REMOVE FROM HIS OFFICE OR
11 POSITION AN OFFICER, EMPLOYE, DIRECTOR, TRUSTEE OR ATTORNEY
12 OF AN INSTITUTION PURSUANT TO THE PROVISIONS OF SECTION 501
13 OF THE DEPARTMENT OF BANKING CODE.
14 (II) TO EXERCISE THE POWER TO SUSPEND FROM HIS OFFICE OR
15 POSITION AN OFFICER, EMPLOYE, DIRECTOR, TRUSTEE OR ATTORNEY
16 OF AN INSTITUTION IF THE DEPARTMENT OF BANKING SERVES WRITTEN
17 NOTICE UNDER SECTION 501 OF THE DEPARTMENT OF BANKING CODE,
18 TO AN INSTITUTION, ITS OFFICERS, EMPLOYE, DIRECTOR, TRUSTEE
19 OR ATTORNEY OF THE DEPARTMENT'S INTENTION TO ISSUE AN ORDER
20 UNDER SUCH CLAUSE, THE DEPARTMENT MAY SUSPEND SUCH PARTY FROM
21 OFFICE OR PROHIBIT SUCH PARTY FROM FURTHER PARTICIPATION IN
22 ANY MANNER IN THE CONDUCT OF THE AFFAIRS OF THE INSTITUTION,
23 IF THE DEPARTMENT:
24 (A) DETERMINES THAT SUCH ACTION IS NECESSARY FOR THE
25 PROTECTION OF THE DEPOSITORY INSTITUTION OR THE INTERESTS
26 OF THE DEPOSITORY INSTITUTIONS'S DEPOSITORS; AND
27 (B) SERVES SUCH PARTY WITH WRITTEN NOTICE OF THE
28 SUSPENSION ORDER.
29 (B) EFFECT OF ORDER.--ANY SUSPENSION ORDER ISSUED UNDER THIS
30 SECTION SHALL BECOME EFFECTIVE UPON SERVICE AND UNLESS A COURT
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1 OF COMPETENT JURISDICTION ISSUES A STAY OF SUCH ORDER, SHALL
2 REMAIN IN EFFECT AND ENFORCEABLE UNTIL THE DATE THE DEPARTMENT
3 DISMISSES THE CHARGES ON THE EFFECTIVE DATE OF AN ORDER ISSUED
4 BY THE DEPARTMENT UNDER SECTION 501 OF THE DEPARTMENT OF BANKING
5 CODE.
6 Section 2 5. This act shall take effect in 30 days. <--
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