This bill proposes several amendments to existing banking laws, primarily aimed at increasing lending limits for banks and streamlining the chartering process for new banks. Specifically, it raises the maximum amount a depository bank can loan to a single borrower by allowing the total liabilities to exceed the federal limit if they are secured by U.S. obligations. The new limits are set at either 20% of the bank's capital and surplus or 25% if the excess is fully secured, with specific conditions for maintaining the security interest. Additionally, the bill modifies the definition of "capital and surplus" to align with federal regulations and reduces the initial operational planning period for new banks from five years to three years.

Furthermore, the bill introduces provisions that allow the commissioner to extend the operational planning period for new banks if deemed necessary for safety and soundness. It also requires that any material changes to a bank's business plan within three years of receiving its charter must be approved by the commissioner. The changes aim to enhance the operational flexibility of banks while ensuring that lending practices remain prudent and secure. The act will take effect immediately upon passage.

Statutes affected:
Introduced: 383-A:3-305, 383-A:3-318, 383-B:3-303
As Amended by the Senate: 383-B:3-303, 383-B:2-201, 383-A:3-305, 383-A:3-318
Version adopted by both bodies: 383-B:3-303, 383-B:2-201, 383-A:3-305, 383-A:3-318