This bill proposes amendments to existing banking laws, primarily focusing on increasing lending limits for banks and shortening the de novo status period for new banks. Specifically, it raises the maximum amount a depository bank can loan to a single borrower by allowing the total liabilities of a borrower to exceed the federal limit if they meet certain conditions. The new limits stipulate that a bank can lend up to 20% of its capital and surplus, or 25% if the excess is fully secured by U.S. obligations of equal value. 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 and the time frame for any material changes in business plans, if deemed necessary for safety and soundness. The amendments also clarify the application process for state bank charters, requiring detailed information about the bank's organization and operational plans. Overall, these changes aim to enhance the flexibility and operational efficiency of banks while ensuring prudent lending practices.

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