Colorado House Bill HB1381 Engrossed / Bill

                    Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 24-0578.01 Richard Sweetman x4333
HOUSE BILL 24-1381
House Committees Senate Committees
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CONTINUATION OF THE DIVISION OF FINANCIAL101
SERVICES IN THE DEPARTMENT OF REGULATORY AGENCIES , AND,102
IN CONNECTION THEREWITH , IMPLEMENTING THE103
RECOMMENDATIONS CONTAINED IN THE 2023 SUNSET REPORT104
BY THE DEPARTMENT OF REGULATORY AGENCIES .105
Bill Summary
(Note:  This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
Sunset Process - House Finance Committee. The bill implements
the recommendations of the department of regulatory agencies (DORA)
HOUSE
Amended 2nd Reading
April 18, 2024
HOUSE SPONSORSHIP
Kipp and Soper, deGruy Kennedy, Garcia, Joseph, Lindstedt, Snyder
SENATE SPONSORSHIP
Hansen and Mullica,
Shading denotes HOUSE amendment.  Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. in its sunset review and report on the division of financial services
(division), which is created within DORA. Specifically:
! Sections 1 through 3 of the bill continue the division and
the financial services board (board) for 15 years, until
2039;
! Section 4 authorizes a credit union to merge with a credit
union that is chartered in another state;
! Sections 5 and 8 increase the maximum civil penalty for
violating a cease-and-desist order or suspension order from
$1,000 per day to $5,000 per day;
! Section 6 repeals a provision that prohibits credit unions
from having overlapping geographic fields of membership
and repeals a requirement that the board send hearing
notices by certified or registered mail;
! Section 7 authorizes a credit union to determine the dates
upon which its fiscal year ends and its board of directors
annually meets;
! Section 9 repeals an obsolete statute; and
! Sections 4, 7, and 10 through 59 replace gender-specific
language with gender-neutral language.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2
(25)(a)(I); and add 
(34)(a)(IX) as follows:3
24-34-104.  General assembly review of regulatory agencies4
and functions for repeal, continuation, or reestablishment - legislative5
declaration - repeal. (25) (a)  The following agencies, functions, or both,6
are scheduled for repeal on September 1, 2024:7
(I)  The division of financial services created in article 44 of title8
11;9
(34) (a) The following agencies, functions, or both, are scheduled10
for repeal on September 1, 2033:11
(IX) THE DIVISION OF FINANCIAL SERVICES CREATED IN ARTICLE12
44 OF TITLE 11.     13
SECTION 2. In Colorado Revised Statutes, add 11-44-124 as14
1381-2- follows:1
11-44-124.  Repeal of article - review of functions. T
HIS ARTICLE2
44
 IS REPEALED, EFFECTIVE SEPTEMBER 1, 
2033. BEFORE THE REPEAL, THE3
DIVISION AND THE BOARD ARE SCHEDULED FOR REVIEW IN ACCORDANCE4
WITH SECTION 24-34-104.5
SECTION 3. In Colorado Revised Statutes, repeal 11-44-101.56
as follows:7
11-44-101.5.  Division subject to termination - repeal of article.8
(1)  The provisions of section 24-34-104, C.R.S., concerning the9
termination schedule for regulatory bodies of the state unless extended as10
provided in that section, are applicable to the division of financial11
services created by section 11-44-101.12
(2)  This article is repealed, effective September 1, 2024.13
SECTION 4. In Colorado Revised Statutes, 11-30-122, amend14
(5); and add (8) as follows:15
11-30-122.  Merger. (5)  The duplicate of the certificate of merger16
with the board's certificate of approval attached shall be filed with the17
secretary of state who shall make a record of said THE certificate and18
return it, with his THE SECRETARY OF STATE 'S certificate of record19
attached, to the board for permanent record. The fee for said THE filing20
shall be determined and collected pursuant to section 24-21-104 (3).21
C.R.S.22
(8)  A
 CREDIT UNION MAY MERGE WITH A CREDIT UNION THAT IS23
CHARTERED IN ANOTHER STATE SO LONG AS THE MERGER IS APPROVED BY24
THE BOARD OF DIRECTORS OF EACH CREDIT UNION , THE COMMISSIONER,25
AND THE FEDERAL NATIONAL CREDIT UNION ADMINISTRATION . BEFORE26
APPROVING A MERGER , THE COMMISSIONER SHALL CONSIDER THE27
1381
-3- CONDITION OF EACH CREDIT UNION THAT IS A PARTY TO THE MERGER AND1
WHETHER THE MERGER POSES ANY RISKS TO THE MEMBERS OF EACH2
CREDIT UNION.3
SECTION 5. In Colorado Revised Statutes, 11-30-106.5, amend4
(3) as follows:5
11-30-106.5.  Assessment of civil money penalties. (3)  In6
determining the amount of the A civil money penalty to be assessed, the7
commissioner shall consider the good faith of the person 
AGAINST WHOM8
THE PENALTY IS assessed, the gravity of the violation, any previous9
violations by the person 
AGAINST WHOM THE PENALTY IS assessed, and10
such
 other matters as THAT the commissioner may deem appropriate.11
except that The AMOUNT OF THE civil money penalty shall be MUST not12
more than one EXCEED FIVE thousand dollars per day for each day the13
person assessed is determined by the commissioner to be in violation of14
a cease-and-desist order or an order of suspension or removal.15
Alternatively, the commissioner may assess a civil money penalty for16
such A violation in a lump-sum amount not to exceed fifty thousand17
dollars.18
SECTION 6. In Colorado Revised Statutes, 11-30-101.7, amend19
(3)(a), (5) introductory portion, (5)(b), and (5)(c); and repeal (5)(d) as20
follows:21
11-30-101.7.  Hearing procedures for community field of22
membership credit unions. (3) (a)  The board shall give notice of a23
hearing on a community field of membership application at least thirty24
days before the hearing date by registered or certified mail, to the25
principal office of each credit union, savings and loan association, or26
bank within the neighborhood, community, or rural district sought to be27
1381
-4- served by the proposed community credit union and to such other persons1
or credit unions, savings and loan associations, or banks as THAT the2
board may designate.3
(5)  Within ninety days following the conclusion of AFTER a4
hearing, the board shall issue a written order granting a community field5
of membership if the board finds:6
(b)  That the credit union would benefit its members or proposed7
members, consistent with the purposes of this article, ARTICLE 30; that the8
general character and fitness of the incorporators is appropriate; and that9
it is advisable from an economic standpoint to establish the proposed10
credit union; 
AND11
(c)  That the neighborhood, community, or rural district is12
politically, geographically, socially, or economically well defined. and
13
(d)  That the members of other credit unions within the14
neighborhood, community, or rural district are specifically excluded from15
membership, except as otherwise provided by the board for good cause.16
SECTION 7. In Colorado Revised Statutes, amend 11-30-107 as17
follows:18
11-30-107.  Fiscal year - meetings. (1)  The fiscal year of all19
credit unions shall end December 31 of each year. The annual meeting20
shall be held within five months after the close of said fiscal year A21
BOARD OF DIRECTORS OF A CREDIT UNION MAY DETERMINE THE DATE22
UPON WHICH THE CREDIT UNION 'S FISCAL YEAR ENDS, SO LONG AS THE23
DATE COINCIDES WITH THE END OF A STANDARD FISCAL QUARTER .24
(2)  A
 BOARD OF DIRECTORS OF A CREDIT UNION MAY DETERMINE25	THE DATE OF THE CREDIT UNION'S ANNUAL MEMBERSHIP MEETING. Special26
meetings may be held in the manner indicated in the bylaws. At all27
1381
-5- meetings, a member shall have but a single HAS ONLY ONE vote, whatever1
his REGARDLESS OF THE MEMBER 'S share holdings. There shall NOT be no2
voting by proxy, but a member other than a natural person may cast a3
single vote through a delegated agent.4
SECTION 8. In Colorado Revised Statutes, 11-44-123, amend5
(3) as follows:6
11-44-123.  Assessment of civil money penalties. (3)  In7
determining the amount of the A civil money penalty to be assessed, the8
commissioner shall consider the good faith of the person 
AGAINST WHOM9
THE PENALTY IS assessed, the gravity of the violation, any previous10
violations by the person 
AGAINST WHOM THE PENALTY IS assessed, and11
such
 other matters as THAT the commissioner may deem appropriate.12
except that The AMOUNT OF THE civil money penalty shall be MUST not13
more than one EXCEED FIVE thousand dollars per day for each day the14
person assessed is determined by the commissioner to be in violation of15
a cease-and-desist order or an order of suspension or removal.16
Alternatively, the commissioner may assess a civil money penalty for17
such A violation in a lump-sum amount not to exceed fifty thousand18
dollars.19
SECTION 9. In Colorado Revised Statutes, repeal 11-30-124 as20
follows:21
11-30-124.  Transfer of functions - conforming of statutes.22
(1)  As of April 11, 1988, the powers, duties, and functions of the state23
bank commissioner under this article are transferred to the state24
commissioner of financial services.25
(2)  On April 11, 1988, all employees of the division of banking26
whose principal duties are concerned with the powers, duties, and27
1381
-6- functions transferred to the state commissioner of financial services and1
whose employment in the division of financial services is deemed2
necessary by the executive director of the department of regulatory3
agencies to carry out the purposes of this article are transferred to the4
division of financial services and shall become employees thereof. Such5
employees shall retain all rights to state personnel system and retirement6
benefits under the laws of this state, and their services shall be deemed to7
have been continuous.8
(3)  On April 11, 1988, all items of property, real and personal,9
including office furniture and fixtures, books, documents, and records of10
the division of banking pertaining to the powers, duties, and functions11
transferred to the state commissioner of financial services pursuant to this12
section shall be transferred to the division of financial services and shall13
become the property thereof.14
(4)  Whenever the state bank commissioner or the division of15
banking is referred to or designated by any contract or other document in16
connection with the powers, duties, and functions transferred to the state17
commissioner of financial services, such reference or designation shall be18
deemed to apply to the state commissioner of financial services or the19
division of financial services, as the case may be. All contracts entered20
into by the state bank commissioner or the division of banking prior to21
April 11, 1988, in connection with the powers, duties, and functions22
transferred to the state commissioner of financial services are hereby23
validated, with the state commissioner of financial services succeeding to24
all the rights and obligations of such contracts.25
(5)  On April 11, 1988, any unexpended appropriations of funds26
for the current fiscal year made to the division of banking and allocated27
1381
-7- for the administration and enforcement of this article shall be transferred1
to the division of financial services. The executive director of the2
department of regulatory agencies shall have the final authority to3
determine the allocation of funds for purposes of the transfer under this4
subsection (5).5
(6)  The revisor of statutes is authorized to change all references6
to the state bank commissioner in this article to refer to the state7
commissioner of financial services and to change all references to the8
division of banking in this article to refer to the division of financial9
services.10
SECTION 10. In Colorado Revised Statutes, 11-30-101, amend11
(5) as follows:12
11-30-101.  Definitions - organization - charter - investigation.13
(5)  After the said INCORPORATORS FILE A certified copy of articles of14
incorporation have been filed with the commissioner he AS DESCRIBED IN15
SUBSECTION (4) OF THIS SECTION, THE COMMISSIONER shall issue a charter16
for such THE credit union, at which time the credit union shall become17
BECOMES a body corporate having AND HAS the powers enumerated in18
section 7-103-102, C.R.S., except as otherwise provided or limited in this19
article ARTICLE 30.20
SECTION 11. In Colorado Revised Statutes, 11-30-106, amend21
(6) as follows:22
11-30-106.  Examinations - reports - powers of commissioner23
- rules - penalty. (6) (a)  The commissioner has the power to MAY:24
(I)  Issue subpoenas and require attendance of any and all officers,25
directors, agents, and employees OFFICER, DIRECTOR, AGENT, OR26
EMPLOYEE of any credit union and such ANY other witnesses as he THAT27
1381
-8- THE COMMISSIONER may deem necessary in relation to its THE CREDIT1
UNION'S affairs, transactions, and conditions; and may2
(II)  Require such witnesses to appear and answer such questions3
as THAT THE COMMISSIONER may be put to them; by the commissioner,4
and may5
(III)  Require such witnesses to produce such books, papers, or6
documents in their possession. as may be required by the commissioner.7
(b)  Upon application of the commissioner, any person served with8
a subpoena issued by him THE COMMISSIONER may be required, by order9
of the district court of the county where the credit union has its principal10
office, to:11
(I)  Appear and answer such questions as THAT THE COMMISSIONER12
may be put to him by the commissioner THE PERSON; and be required to13
(II)  Produce such books, papers, or documents in his THE14
PERSON'S possession as may be required by THAT the commissioner MAY15
REQUIRE.16
SECTION 12. In Colorado Revised Statutes, 11-30-109, amend17
(3) as follows:18
11-30-109.  Directors and officers - compensation. (3)  A credit19
union may reasonably compensate a director for his or her THE20
DIRECTOR'S services to the credit union. Providing reasonable life, health,21
accident, and similar insurance protection is not considered22
compensation. Directors, officers, and committee members may be23
reimbursed for necessary expenses incidental to the performance of the24
official business of the credit union.25
SECTION 13. In Colorado Revised Statutes, amend 11-30-11026
as follows:27
1381
-9- 11-30-110.  Credit committee - credit officer. The credit1
committee or credit officer shall have the HAS general supervision of all2
loans to members. Applications for loans shall MUST be on a form3
approved by the credit committee or the credit officer. At least a majority4
of the members of the credit committee or the credit officer shall pass and5
approve or disapprove all loans; except that the credit committee or the6
credit officer may appoint DELEGATE TO one or more loan officers and7
delegate to the same the power to approve or disapprove loans which8
THAT are within limits prescribed by the credit committee or the credit9
officer. Each loan officer shall furnish to the credit committee or the10
credit officer a record of each loan application received by him THE LOAN11
OFFICER within seven days after the date of filing of the application IS12
FILED. All loans not approved by a loan officer may be considered by the13
credit committee or the credit officer. No A member of the credit14
committee shall 
NOT receive any compensation as a loan officer or be15
employed by the credit union in any other capacity. A credit officer may16
receive compensation in connection with the performance of his
 THE17
CREDIT OFFICER'S duties. The credit committee shall meet as often as may18
be necessary after due notice to each member. Vacancies in the credit19
committee shall be filled pursuant to section 11-30-109 (1)(e).20
SECTION 14. In Colorado Revised Statutes, amend 11-30-11221
as follows:22
11-30-112.  Capital. The capital of a credit union shall consist23
CONSISTS of the payments that have been made to it in shares by the24
several members thereof OF THE CREDIT UNION. The credit union has a25
lien on the shares and deposits of a member for any sum due to the credit26
union from said THE member or for any loan endorsed by him THE27
1381
-10- MEMBER. A credit union may charge an entrance fee and an annual1
membership fee, but such THE fees shall MUST be uniform to all members.2
SECTION 15. In Colorado Revised Statutes, amend 11-30-1133
as follows:4
11-30-113.  Minors. Shares may be issued and deposits received5
in the name of a minor. A member who is a minor shall be entitled to6
MAY withdraw or pledge any shares owned by him THE MINOR and to7
receive from the credit union any and all dividends or other moneys,8
MONEY at any time the same become DIVIDENDS OR OTHER MONEY9
BECOMES due, in the same manner and subject to the same conditions as10
an adult, and any receipt or acquittance signed by such a THE minor shall11
constitute CONSTITUTES a valid release and discharge to the credit union12
for the payment of such moneys MONEY. The board of directors of the13
credit union may provide in the bylaws of the credit union a minimum age14
of any minor to be eligible for membership in the credit union and to vote15
at any meeting of the members.16
SECTION 16. In Colorado Revised Statutes, 11-30-120, amend17
(1)(a), (1)(c), and (2) as follows:18
11-30-120.  Suspension - liquidation - procedures. (1) (a)  If it19
appears that any credit union is insolvent, or that it has willfully violated20
any provision of this article ARTICLE 30, or that it is operating in an unsafe21
or unsound manner, the commissioner may issue his order for such THE22
credit union to show cause why its operations should not be suspended23
until such THE insolvency, violation, or manner of operation is rectified24
and afford the credit union an opportunity for a hearing not less than ten25
days nor more than twenty days after such THE DATE THE order Such IS26
ISSUED. THE order shall MUST be in writing and delivered by registered or27
1381
-11- certified mail. If the credit union fails to answer such THE order, or if any1
officer or director of or attorney for the credit union fails to appear at the2
time set for the hearing, the commissioner 
MAY either may
 revoke the3
certificate of incorporation of the credit union or may order the immediate4
suspension of operations of the credit union, except 
FOR the collection of5
payments on outstanding loans or other obligations due 
TO the credit6
union, or both, and may enforce any such
 THE order by an action filed in7
the district court of the judicial district wherein WHERE the principal8
office of the credit union is located, seeking to enjoin further operations9
or to appoint a receiver for such THE credit union.10
(c)  If the commissioner revokes the charter of the credit union, he11
THE COMMISSIONER shall appoint a liquidating agent to liquidate the12
assets of the credit union pursuant to subsection (3) of this section.13
(2)  Any credit union may be voluntarily dissolved and liquidated14
upon majority vote of the entire membership thereof OF THE CREDIT15
UNION at a meeting especially called for the THAT purpose or at the annual16
meeting where notice of such THE proposed action is mailed to the17
members at least thirty days prior to such BEFORE THE meeting. In either18
event, a copy of the notice shall be delivered to the commissioner not less19
than ten days prior to such BEFORE THE meeting. Any member of a credit20
union may cast his THE MEMBER'S ballot for or against such THE21
dissolution and liquidation by mail within twenty days after such THE22
meeting. If a majority of the members of the credit union vote in favor of23
dissolution and liquidation, the board of directors, within five days after24
the close of voting, shall notify the commissioner of such THE action and25
specify the names and addresses of the directors and officers of the credit26
union who will conduct the dissolution and liquidation of the credit27
1381
-12- union. Upon such THE favorable vote, the credit union shall cease to do1
business except for the collection of payments on outstanding loans or2
other obligations due 
TO the credit union.3
SECTION 17. In Colorado Revised Statutes, 11-40-105, amend4
(2) as follows:5
11-40-105.  File annual reports. (2)  If any
 AN association fails6
to file such A report AS DESCRIBED IN SUBSECTION (1) OF THIS SECTION, or7
if any such THE report is delayed or withheld beyond the day when the8
report should be so filed, such THE association shall forfeit and pay the9
sum of ten dollars for every day such THE report is withheld or delayed or10
not completed, and any member of any association or any party in interest11
may maintain an action in his or her THE MEMBER'S OR OTHER PARTY'S12
own name to receive such THE penalty, and the penalty shall be paid to13
the state treasurer.14
SECTION 18. In Colorado Revised Statutes, amend 11-40-10915
as follows:16
11-40-109.  Suits interfering with business of association. No17
A
N order, A judgment, or A decree providing for an accounting of, or18
enjoining, restraining, or interfering with the transaction of, the business19
of any savings and loan association organized or doing business under the
20
provisions of articles 40 to 46 of this title TITLE 11 shall NOT be made or21
granted otherwise than upon the application of the attorney general, after22
his or her THE ATTORNEY GENERAL 'S approval of a written request23
therefor by the commissioner FOR THE ORDER, JUDGMENT, OR DECREE,24
except in an action by a judgment creditor or in proceedings25
supplementary to execution.26
SECTION 19. In Colorado Revised Statutes, 11-41-107, amend27
1381
-13- (2) introductory portion and (3) as follows:1
11-41-107.  Documents deposited with commissioner. (2)  Upon2
receipt of such THE documents DESCRIBED IN SUBSECTION (1) OF THIS3
SECTION, the commissioner shall immediately examine and investigate4
into the advisability of issuing a certificate of approval for such THE5
association, and he THE COMMISSIONER shall issue such A certificate of6
approval if, upon examination, the commissioner finds:7
(3)  If the commissioner's finding is adverse to the association in8
any of the particulars recited in COMMISSIONER FINDS THAT THE9
ASSOCIATION DOES NOT MEET ANY OF THE REQUIREMENTS OF subsection10
(2) of this section, he THE COMMISSIONER shall not issue a certificate of11
approval.12
SECTION 20. In Colorado Revised Statutes, amend 11-41-10813
as follows:14
11-41-108.  Refusal of certificate - appeal. If the commissioner,15
after an examination, believes for any reason that a certificate of approval16
should not be issued and refuses to issue the same, he A CERTIFICATE OF17
APPROVAL, THE COMMISSIONER shall file a written statement with a board18
consisting of the governor, the attorney general, and the state treasurer,19
of the state of Colorado giving in detail his THE COMMISSIONER'S reasons20
for such THE refusal. After notice to all concerned and after a hearing,21
said board THE GOVERNOR, ATTORNEY GENERAL, AND STATE TREASURER22
may order the commissioner to issue the certificate of approval or may23
approve his THE COMMISSIONER'S action in refusing a certificate of24
approval.25
SECTION 21. In Colorado Revised Statutes, 11-41-109, amend26
(1) introductory portion, (1)(a), (1)(c), and (2) as follows:27
1381
-14- 11-41-109.  Certificate of approval - where articles filed. (1)  If1
the commissioner finds affirmatively for the association upon all the2
matters set forth in section 11-41-107, he THE COMMISSIONER shall issue3
a certificate of approval under his hand and seal, executed in duplicate4
within sixty days thereafter, in AFTER THE FINDING, which shall be recited5
CERTIFICATE RECITES in substance the following:6
(a)  That the articles of incorporation and bylaws have been filed7
in his THE COMMISSIONER'S office;8
(c)  That he THE COMMISSIONER has approved the same ARTICLES9
OF INCORPORATION AND BYLAWS .10
(2)  The commissioner shall attach one of said THE certificates to11
each copy of the articles of incorporation, and shall retain one copy of the12
articles of incorporation and bylaws in his THE COMMISSIONER'S office,13
and return the other copy of the articles and bylaws, with the certificate14
of approval attached, thereto, to the association. Upon receipt from the15
commissioner of the articles of incorporation, the association shall file the16
same ARTICLES OF INCORPORATION with the secretary of state, and17
certified copies of the articles of incorporation shall be filed by the18
association in the office of the county clerk and recorder of each county19
in this state in which said THE association may own real estate. The20
failure to file a certified copy in the office of the clerk and recorder of any21
county in this state shall DOES not affect the validity of the incorporation22
of any association which THAT has made its filing with the secretary of23
state and has obtained a certificate of approval. In the event a true copy24
of such THE articles of incorporation is presented to the secretary of state25
with the request that the same ARTICLES OF INCORPORATION be certified,26
he THE SECRETARY OF STATE shall certify the same ARTICLES OF27
1381
-15- INCORPORATION for a fee which shall be IN AN AMOUNT THAT IS1
determined and collected pursuant to section 24-21-104 (3). C.R.S.,2
which THE certificate shall MUST contain, in addition to the usual3
statement, a statement that the same ATTACHED COPY is a true copy of the4
original articles of incorporation on file in his THE SECRETARY OF STATE'S5
office and a statement as to the date of the filing of such THE articles of6
incorporation. When articles of incorporation or amendments thereto TO7
ARTICLES OF INCORPORATION have been filed in the office of the secretary8
of state, he THE SECRETARY OF STATE shall record and carefully preserve9
the same THEM in his THE SECRETARY OF STATE'S office, and a copy10
thereof OF THE ARTICLES OF INCORPORATION OR AMENDMENTS , duly11
certified by the secretary of state under the great seal of the state of12
Colorado, shall be IS evidence of the existence of such THE association13
and prima facie evidence of the contents of said THE articles of14
incorporation or such amendments. thereto.15
SECTION 22. In Colorado Revised Statutes, 11-41-114, amend16
(1) introductory portion and (1)(i)(III) as follows:17
11-41-114.  How funds invested. (1)  Any A savings and loan18
association may invest any portion of its funds in any of the following:19
(i) (III)  No AN association organized under the laws of this state20
shall 
NOT acquire the capital stock, obligations, or other securities of any21
such
 corporation DESCRIBED IN SUBSECTION (1)(i)(I) OF THIS SECTION22
until there THE CORPORATION has been filed in the office of the23
commissioner a statement by such corporation agreeing to permit and pay24
all costs of such ANY examinations or audits of the corporation by the25
commissioner as he THAT THE COMMISSIONER deems necessary in order26
to confirm compliance with the provisions of this paragraph (i)27
1381
-16- SUBSECTION (1)(i).1
SECTION 23. In Colorado Revised Statutes, 11-41-117, amend2
(2) as follows:3
11-41-117.  Insurance of shares. (2)  The commissioner, in4
connection with all such insured associations, shall furnish said THE5
FEDERAL DEPOSIT insurance corporation with reports of THE ISSUANCE OF6
examination, orders, and requirements issued in connection therewith7
RELATING TO INSURED ASSOCIATIONS and other information coming to his8
THAT COMES TO THE COMMISSIONER 'S attention bearing on AND CONCERNS9
the financial condition and administration and OF INSURED ASSOCIATIONS.10
T
HE COMMISSIONER may collaborate with said
 THE FEDERAL DEPOSIT11
INSURANCE corporation in any merger, reorganization, dissolution,12
liquidation, or examination and audit of any such insured association.13
SECTION 24. In Colorado Revised Statutes, 11-41-117.5,14
amend (4) as follows:15
11-41-117.5.  Insurance of obligations. (4)  The commissioner or16
his duly designated representative THE COMMISSIONER'S DESIGNEE may17
investigate the affairs and examine the books, accounts, records, and files18
of the insurer at such intervals as THAT the commissioner deems prudent,19
but not less than once a year, and shall have free access for such purposes.20
Costs of such investigations and examinations shall be paid by the21
insurer. If any such investigation or examination reveals that the insurer22
is not conducting its affairs in accordance with this section or that the23
insurer is not actuarially sound or is impaired and may be unable to fulfill24
its obligations, the commissioner may exercise any powers available25
under article 44 of this title TITLE 11 until such time as compliance is26
restored or the impairment is terminated.27
1381
-17- SECTION 25. In Colorado Revised Statutes, 11-41-119, amend1
(5) as follows:2
11-41-119.  Loans to members and other loans. (5) (a)  Loans3
A
 LOAN secured by first lien trust deeds or mortgages
 A FIRST-LIEN TRUST4
DEED OR MORTGAGE upon improved real estate shall not be made until:5
(I)  A signed application for such THE loan has been submitted; nor6
until7
(II)  A signed appraisal has been submitted; nor until AND8
(III)  The loan has been approved by the board of directors or by9
a committee authorized by the board of directors.10
(b)  Appraisals may be made by any two of the association's11
directors, officers, employees, or attorneys or by an independent appraiser12
who is not a director, officer, employee, or attorney of the association; but13
no such EXCEPT THAT AN officer, A director, AN employee, or AN attorney14
shall 
NOT act as an appraiser nor
 OR act on any committee approving a15
loan in which he IF THE OFFICER, DIRECTOR, EMPLOYEE, OR ATTORNEY has16
an interest either in EITHER the property tendered as security or in the sale17
of the property.18
(c)  The association shall furnish to each borrower, Upon the19
closing of the loan, 
THE ASSOCIATION SHALL FURNISH TO EACH BORROWER20
a loan settlement statement indicating
 THAT INDICATES in detail the21
charges or fees such THE borrower has paid or obligated himself THE22
BORROWER to pay to the association or to any other person in connection23
with such THE loan, and THE ASSOCIATION SHALL RETAIN a copy of such24
THE statement. shall be retained in the records of the association.25
SECTION 26. In Colorado Revised Statutes, 11-41-121, amend26
(1.5)(c), (3), (4), and (6); and repeal (5) as follows:27
1381
-18- 11-41-121.  Merger, consolidation, and transfer.1
(1.5) (c)  Whenever a foreign association which THAT meets the criteria2
established by this subsection (1.5) proposes to merge with a domestic3
association, the foreign association shall make an application for prior4
approval to the commissioner in such THE form and with such THE5
information that the commissioner may require, and such THE application6
shall MUST be accompanied by a nonrefundable filing fee in such AN7
amount as determined by the commissioner. Upon receipt of a properly8
submitted application for merger, the commissioner shall proceed to9
investigate the application in accordance with the provisions of this10
section. The commissioner shall not grant approval of the merger until he11
THE COMMISSIONER is satisfied that the criteria imposed by this section12
have been met and that the merger is not contrary to the public interest.13
(3)  Copies of the proposed agreement of merger, signed by the14
president or vice president of such THE association and verified by his15
THE PRESIDENT'S OR VICE PRESIDENT'S affidavit and attested by the16
secretary or assistant secretary thereof OF THE ASSOCIATION, with the seal17
of the association thereunto affixed, shall be submitted together with a fee18
in the amount established by the commissioner to the commissioner for19
his THE COMMISSIONER 'S approval or disapproval, and he THE20
COMMISSIONER shall cause a certificate of approval or disapproval to be21
attached to said THE copies of the proposed agreement, one copy to be22
filed in the division and one returned to each of the associations.23
(4)  If approved by the commissioner such approved APPROVES AN24
AGREEMENT OF MERGER , THE agreement shall be presented to the25
members of each of the merging associations at special meetings called26
for the purpose of considering and voting upon such approved THE27
1381
-19- agreement; but, in the case of associations having permanent stock, only1
the holders of the permanent stock shall be ARE entitled to any notice2
other than the published notice of such THE special meeting or to vote3
upon the agreement of merger. The complete agreement of merger, as4
adopted by the boards of directors and approved by the commissioner,5
shall be furnished 
TO each member entitled to vote on such
 THE merger6
at the time 
THAT notice of such
 THE meetings, as required by section7
11-41-123, is given. If at such meetings A MEETING two-thirds of all votes8
of the members present in person or by proxy and entitled to vote on such9
THE merger are in favor of such THE approved agreement, the associations10
may proceed to merge. in accordance therewith. The proceedings of such11
THE meetings shall be submitted to the commissioner for his THE12
COMMISSIONER'S approval in the same manner as required for the13
submission of the agreement by the boards of directors. Unless the14
agreement of merger fixes a later effective date, thereof, the effective date15
of 
THE merger shall be
 IS the date upon which the commissioner accepts16
for filing the certified copies of the proceedings of the meetings of17
members adopting the approved agreement of merger.18
(5)  In the event any association involved in a proposed merger is19
a federal savings and loan association, the commissioner shall transmit to20
the federal office of thrift supervision or its successor, a copy of the21
proposed agreement of merger and shall not approve the agreement of22
merger unless and until he or she has been advised in writing by the23
federal office of thrift supervision or its successor that said office has no24
objection to the agreement.25
(6) (a)  No such A transfer shall DOES NOT:26
(I)  Prejudice the right of any creditor of any such association to27
1381
-20- have payment of his THE CREDITOR'S debt out of the assets and property1
thereof, nor shall any creditor be thereby deprived of or prejudiced OF THE2
ASSOCIATION; OR3
(II)  D
EPRIVE ANY CREDITOR OF , OR CREATE ANY PREJUDICE4
AGAINST ANY CREDITOR in, any right of action then existing against the5
officers or directors of said
 AN association for any neglect or misconduct.6
and the7
(b)  A reorganized association shall be IS liable for all obligations8
to members of the associations existing prior to such A consolidation.9
SECTION 27. In Colorado Revised Statutes, 11-41-123, amend10
(2), (4), and (5) as follows:11
11-41-123.  Directors and meetings. (2)  Public notice of the time12
and place of holding such elections DESCRIBED IN SUBSECTION (1) OF THIS13
SECTION and also of all special meetings of the members shall be14
published at least once, not more than thirty days nor less than ten days15
prior to BEFORE the date fixed for said OF EACH meeting, in a newspaper16
of general circulation printed in the county where the principal office of17
said THE corporation is located, and, if there is no such newspaper, then18
in a newspaper printed in an adjoining county, and, with respect to any19
special meeting or any annual meeting to be held at a time or place other20
than as specified in the articles of incorporation or bylaws of the21
association, by delivering personally to each member or depositing in the22
post office at least thirty days before such THE meeting a copy of said THE23
notice, addressed to each member entitled to vote, thereat, with24
INCLUDING the signature of the president or secretary, printed thereon,25
stating the time and, in case of special meetings, the objects of said THE26
meeting. and no Business shall NOT be transacted at any special meeting27
1381
-21- except such as shall be BUSINESS THAT IS mentioned in said THE notice.1
If any member fails to furnish the secretary with his THE MEMBER'S2
correct post-office address, he shall THE MEMBER IS not be entitled to3
separate notice.4
(4)  Members who are entitled to vote may vote either in person or5
by proxy at such meetings. Any number of members present in person or6
by proxy at a regular or special meeting of the members shall constitute7
CONSTITUTES a quorum unless otherwise specifically provided in articles8
40 to 46 of this title TITLE 11. If a majority of the votes represented at any9
annual or special meeting are in favor of adjournment, such THE meeting10
may be adjourned for a period not to exceed sixty days at one11
adjournment. Each member entitled to vote shall be permitted to MAY12
cast, in person or by proxy, one vote for each one hundred dollars, or13
fraction thereof, of the total certificate value of all his THE MEMBER'S14
shares and stock. A borrowing member holding a membership certificate15
shall be permitted MAY, as a borrower, to cast one vote and has such16
voting right in all cases where articles 40 to 46 of this title TITLE 11 give17
such right to shareholders.18
(5)  A majority of all votes cast at any meeting of members shall19
determine DETERMINES any question unless otherwise specifically20
provided. The members who are entitled to vote at any meeting of the21
members shall be those of record on the books of the association at the22
end of the calendar month next preceding the date of the meeting of23
members, except those who have ceased to be members. In balloting for24
directors, members may vote for as many directors as are to be elected, or,25
in case the certificate of incorporation of the association permits26
cumulative voting, each member may cumulate his THE MEMBER'S votes27
1381
-22- and give one candidate as many votes as the number of directors1
multiplied by the number of his THE MEMBER'S votes or distribute them2
on the same principle among as many candidates as he THE MEMBER may3
desire, and the person having the highest number of votes in consecutive4
order shall be declared IS elected. By the unanimous vote of all the5
members represented at such THE meeting, the secretary of the meeting6
may be authorized and instructed to cast one ballot for one or more of all7
the directors to be elected.8
SECTION 28. In Colorado Revised Statutes, amend 11-41-1269
as follows:10
11-41-126.  Bonds of officers. Every officer, employee, and agent11
handling or having custody or charge of funds or securities belonging to12
a savings and loan association, before entering upon the discharge of his13
THE OFFICER'S, EMPLOYEE'S, OR AGENT'S duties, shall give a good and14
sufficient bond in such THE sum as may be fixed by the board of directors15
of any such association. Such THE bond shall MUST be in such THE form16
and provide such coverage as the commissioner may direct and shall17
MUST be made by a surety corporation authorized to do business in this18
state. The amount of such THE bond as to each person shall be IS subject19
to the approval of the commissioner. In lieu of individual bonds, a blanket20
bond covering all active officers, agents, and employees of such AN21
association may be executed, subject to approval by the commissioner.22
Every such bond shall be IS in force until ten days after notice IS23
PROVIDED to such THE commissioner that the same BOND is to be24
canceled.25
SECTION 29. In Colorado Revised Statutes, amend 11-41-12826
as follows:27
1381
-23- 11-41-128.  Acknowledgments. No A notary public or other1
public officer qualified to take acknowledgments or proof of written2
instruments shall 
NOT be disqualified from taking the acknowledgment or3
proof of an instrument in writing in which a savings and loan association4
is interested by reason of his
 THE NOTARY PUBLIC'S OR OTHER PUBLIC5
OFFICER'S employment by, or his THE NOTARY PUBLIC OR OTHER PUBLIC6
OFFICER being a member or officer of, the savings and loan association7
interested in such THE instrument.8
SECTION 30. In Colorado Revised Statutes, 11-41-129, amend9
(4) as follows:10
11-41-129.  Amendment of articles of incorporation. (4)  A11
certificate setting forth such AN amendment and the adoption thereof OF12
THE AMENDMENT, signed by the president or vice president of such THE13
association, verified by his THE PRESIDENT'S OR VICE PRESIDENT'S14
affidavit, and attested by the secretary or assistant secretary thereof OF15
THE ASSOCIATION, with the seal of the association thereunto affixed, shall16
be submitted together TO THE COMMISSIONER with the A fee IN AN17
AMOUNT established by the commissioner. to the commissioner for his18
approval or disapproval, and, If he THE COMMISSIONER approves he THE19
PROPOSED AMENDMENT , THE COMMISSIONER shall cause ATTACH a20
certificate of approval to be attached to said THE proposed amendment,21
and then the same AMENDMENT shall be filed in the same manner as THE22
articles of incorporation. and Thereafter, said THE amendment shall be IS23
in full force and effect, to the same extent, except as provided in section24
11-41-130.5, as if the same AMENDMENT had been included in the original25
articles of incorporation. No AN amendment to the articles of26
incorporation shall 
NOT be filed in the office of the secretary of state of
27
1381
-24- the state of Colorado or received by the secretary of state unless a1
certificate of approval by the commissioner is attached thereto TO THE2
AMENDMENT.3
SECTION 31. In Colorado Revised Statutes, 11-41-130, amend4
(1), (2), and (6) as follows:5
11-41-130.  Reorganization. (1)  The board of directors of any AN6
association at a meeting called for that purpose, may adopt a plan of7
reorganization of the association 
AT A MEETING CALLED FOR THAT8
PURPOSE. Two copies of the proposed plan of reorganization, signed by9
the president or vice president of such
 THE association, verified by his10
THE PRESIDENT'S OR VICE PRESIDENT'S affidavit, and attested by the11
secretary or assistant secretary thereof OF THE ASSOCIATION, with the seal12
of the association thereunto affixed, shall be submitted to the13
commissioner for his THE COMMISSIONER'S approval, or disapproval, and14
he THE COMMISSIONER shall cause ATTACH a certificate of approval or15
disapproval to be attached to said THE proposed plan, one copy to be filed16
in the division and one returned to the association. If 
A PLAN IS approved17
by the commissioner, such approved plan
 IT shall be presented to the18
members at a special meeting called for the purpose of considering and19
voting upon such approved THE plan. The complete plan of20
reorganization, as adopted by the board of directors and approved by the21
commissioner, shall be furnished 
TO each member at the time notice of22
such
 THE meeting IS GIVEN, as required by section 11-41-123. is given. If23
at such THE meeting two-thirds of all votes of the members present in24
person or by proxy are in favor of such THE approved plan, the25
association may proceed to reorganize. in accordance therewith.26
(2)  The proceedings of such A meeting TO APPROVE A27
1381
-25- REORGANIZATION PLAN shall be submitted to the commissioner for his1
THE COMMISSIONER'S approval in the same manner as required for the2
submission of the plan by the board of directors. Unless the plan of3
reorganization fixes a later effective date, thereof, the effective date of4
reorganization shall be IS the date upon which the commissioner accepts5
for filing the certified copies of the proceedings of the meetings of6
members adopting the approved plan of reorganization.7
(6)  The reorganization of such AN association shall DOES not8
prejudice the right of any creditor of any such THE association to have9
payment of his THE CREDITOR'S debt out of the assets and property thereof10
OF THE ASSOCIATION, nor shall DOES THE REORGANIZATION OF AN11
ASSOCIATION DEPRIVE any creditor be thereby deprived of, or prejudiced12
PREJUDICE ANY CREDITOR in, any right of action then existing against the13
officers or directors of said THE association for any neglect or14
misconduct. All obligations to any such prior association shall inure to the15
benefit of the reorganized association and shall be ARE enforceable by it16
and in its name, and demands, claims, and rights of action against any17
such PRIOR association may be enforced against it as fully and completely18
as they might have been enforced theretofore; and BEFORE THE19
ASSOCIATION'S REORGANIZATION. All deeds, notes, mortgages, contracts,20
judgments, transactions, and proceedings whatsoever theretofore made,21
received, entered into, carried on, or done by such AN association before22
such ITS reorganization shall be as ARE good, valid, and effectual in law23
as though such THE association had never been reorganized.24
SECTION 32. In Colorado Revised Statutes, 11-41-130.5,25
amend (1), (3)(a)(I), and (3)(b) as follows:26
11-41-130.5.  Cessation of business as an association -27
1381
-26- amendment of articles. (1)  Notwithstanding any provision of this article1
ARTICLE 41 to the contrary, in connection with the sale of all or a2
substantial part of its assets, the board of directors of any savings and loan3
association may propose an amendment to its articles of incorporation to4
amend the objects and purposes to conform to those authorized in the5
"Colorado Business Corporation Act", articles 101 to 117 of title 7,6
C.R.S., and to make such other amendments authorized by and not7
inconsistent with the provisions of article 110 of title 7. C.R.S. Such8
Proposed amendments shall be submitted to the members or, if the9
savings and loan association has permanent stock, to the stockholders of10
said THE association for their approval. Upon approval, said PROPOSED11
amendments shall be submitted to the commissioner, together with a plan12
pursuant to subsection (2) of this section, for his THE COMMISSIONER'S13
approval.14
(3) (a)  The commissioner shall approve a plan only if:15
(I)  He THE COMMISSIONER determines that an association has paid16
or has made provision through an assumption agreement or otherwise for17
its known and unclaimed liabilities to its depositors and account holders;18
(b)  In approving a plan, the commissioner may impose such terms19
and conditions as he THE COMMISSIONER deems necessary to protect the20
depositors, account holders, stockholders, members, and creditors of the21
savings and loan association.22
SECTION 33. In Colorado Revised Statutes, 11-41-131, amend23
(1), (3), and (4) as follows:24
11-41-131.  Dissolution. (1)  Any A domestic association may25
elect to abandon its certificate of authority, liquidate its affairs, and26
dissolve as provided in this section. The affirmative vote of at least a27
1381
-27- majority of the BOARD OF directors must be cast in favor of such proposal1
A PROPOSED DISSOLUTION at a special meeting thereof OF THE BOARD. A2
certified copy of such action shall THE VOTE MUST be furnished to the3
commissioner, who shall forthwith PROMPTLY examine said THE4
association, and, if he THE COMMISSIONER determines that such THE5
association is solvent and that it is to IN the best interests of the members6
that such liquidation be accomplished in the manner provided in7
ACCORDING TO this section, he THE COMMISSIONER shall certify his THE8
COMMISSIONER'S approval thereto. Upon the granting of such OF THE9
LIQUIDATION. AFTER THE COMMISSIONER'S approval, a special meeting of10
all members entitled to vote shall be called in the manner provided by11
PURSUANT TO section 11-41-123. If a majority vote of all such members12
of the association is cast in favor of the proposal to liquidate and13
ultimately dissolve such THE association under the provisions of this14
section, such THE proposal shall be IS deemed adopted. A certified copy15
of all proceedings taken prior to and at such THE meeting shall be filed16
with the commissioner, who shall determine whether or not such THE17
proceedings have been conducted in accordance with law. If the18
commissioner finds that such THE proceedings are legal and proper, he19
THE COMMISSIONER shall certify his THE COMMISSIONER'S approval20
thereon OF THE PROCEEDINGS and authorize said THE association to21
proceed with the liquidation in the manner provided in this section.22
(3)  The association, During the liquidation of the ITS assets, of the23
AN association shall be IS subject to the supervision of the commissioner24
and shall pay such THE fees and assessments as are provided for25
REQUIRED in articles 40 to 46 of this title TITLE 11 in the case of active26
associations and shall report the progress of such THE liquidation to the27
1381
-28- commissioner as he THE COMMISSIONER may require. Upon completion1
of liquidation, a final report and accounting of the affairs of the2
association shall be made to the commissioner. Upon the approval of such3
THE report by the commissioner, the board of directors, without the4
necessity of further action by the members of the association, shall5
proceed to dissolve such THE association in the manner provided by law6
in the case of general corporations.7
(4)  Nothing in this section shall prejudice the rights PREJUDICES8
THE RIGHT of the commissioner to take possession of any association9
under the authority vested in him THE COMMISSIONER by the provisions10
of section 11-44-110, upon determining that such THE procedure is to IN11
the best interest of the members.12
SECTION 34. In Colorado Revised Statutes, 11-41-132, amend13
(3) as follows:14
11-41-132.  Escheat proceedings. (3)  After thirty days from the15
date of the last publication, the commissioner shall pay to the state16
treasurer any such liquidating dividends in his THE COMMISSIONER'S17
possession, less the costs of publication and mailing, and shall file with18
the state treasurer the affidavit of publication by the publisher and the19
affidavit of mailing by the commissioner, showing the dates of such THE20
publications and mailing. The state shall be answerable for such funds21
THE MONEY, without interest, anytime within twenty-one years after the22
same have MONEY HAS been paid into the treasury, to such persons as23
shall be THAT ARE legally entitled thereto TO THE MONEY. After the lapse24
of twenty-one years from the time any such moneys have THE MONEY HAS25
been paid into the state treasury, 
IF no claim therefor having
 FOR THE26
MONEY HAS been made and established by any person entitled thereto,27
1381
-29- said moneys shall become TO THE MONEY, THE MONEY BECOMES the1
property of the state and shall be transferred to the general fund.2
SECTION 35. In Colorado Revised Statutes, 11-41-133, amend3
(3) introductory portion and (6)(c) as follows:4
11-41-133.  Acquisition of majority control over an existing5
association - definitions. (3)  After receipt of an application, the6
commissioner shall make an investigation and shall issue the certificate7
of approval only after he THE COMMISSIONER has determined:8
(6) (c)  Whenever IF a foreign association which THAT meets the9
criteria established by this subsection (6) proposes to acquire control of10
a domestic association, the foreign association shall make an application11
for prior approval to the commissioner in such THE form and with such12
INCLUDING ANY information that the commissioner shall require13
REQUIRES, and such THE application shall MUST be accompanied by a14
nonrefundable filing fee in such AN amount as determined by the15
commissioner. Upon receipt of a properly submitted application to16
acquire control of a domestic association, the commissioner shall proceed17
to investigate the application in accordance with the provisions of this18
section. The commissioner shall not grant approval of the merger until he19
THE COMMISSIONER is satisfied that the criteria imposed by this section20
have been met and that the acquisition is not contrary to the public21
interest.22
SECTION 36. In Colorado Revised Statutes, 11-42-108, amend23
(1) as follows:24
11-42-108.  Assessment to restore impaired permanent stock.25
(1)  Stockholders, after their stock has been fully paid, are not liable to26
creditors or for assessments upon their stock issued on or after July 1,27
1381
-30- 1981, except as provided by this section. If the commissioner, as a result1
of any examination or from any report made to him THE COMMISSIONER,2
finds that the permanent stock of any AN association is impaired, he THE3
COMMISSIONER shall notify the association that such THE impairment4
exists. In the event the amount of the impairment, as determined by the5
commissioner, is questioned by the association, then, upon application6
filed within ten days, the value of the assets in question shall be7
determined by appraisals made by independent appraisers acceptable to8
the commissioner and the association.9
SECTION 37. In Colorado Revised Statutes, 11-42-109, amend10
(1) as follows:11
11-42-109.  Sale of delinquent stock. (1)  If any A stockholder12
refuses or neglects to pay the assessment specified in such A notice13
PROVIDED PURSUANT TO SECTION 11-42-108 (2) within sixty days from14
AFTER the date of mailing, the directors of such THE association shall have15
the right to MAY sell to the highest bidder at public auction any part or all16
of the stock necessary to pay the assessment of such THE stockholder,17
after giving a previous notice of such THE sale for ten days in a newspaper18
of general circulation published in the county where the principal office19
of such THE association in this state is located. and A copy of such THE20
notice of sale shall also be served on such THE stockholder by mailing a21
copy of the notice to his THE STOCKHOLDER'S last known address ten days22
before the day fixed for such THE sale. or such THE stock may ALSO be23
sold at a private sale and without public notice; but EXCEPT THAT, before24
making such A private sale, thereof, THE BOARD OF DIRECTORS SHALL25
OBTAIN an offer in writing shall first be obtained and SERVE a copy26
thereof served OF THE OFFER upon the owner of record of the stock to be27
1381
-31- sold by mailing a copy of such THE offer to his THE OWNER'S last known1
address. and, If, after service of such THE offer, such THE owner still2
refuses or neglects to pay such THE assessment within FOR thirty days,3
from the time of the service of such offer, the directors may accept the4
offer and sell such THE stock to the person making such THE offer or to5
any other person making a larger AN offer than the IN A LARGER amount.6
named in the offer submitted to the stockholder, but such stock in no7
event shall be sold THE BOARD OF DIRECTORS SHALL NOT SELL THE STOCK8
for less than the amount of such THE assessment so called for and the9
expense of the sale.10
SECTION 38. In Colorado Revised Statutes, 11-42-112, amend11
(2) and (3) as follows:12
11-42-112.  Requirements for sale of permanent stock. (2)  If13
he THE COMMISSIONER finds that the proposed issue is such as OF STOCK14
will not mislead the public as to the nature of the investment or will not15
work a fraud upon the purchaser thereof OF THE STOCK, the commissioner16
shall issue to the association a permit authorizing it to issue and dispose17
of its stock in such THE amounts as PROVIDED BY the commissioner may18
in such permit provide IN THE PERMIT; otherwise, he THE COMMISSIONER19
shall deny the application and notify the association in writing of his THE20
COMMISSIONER'S decision.21
(3)  Every permit shall recite MUST STATE in bold type that the22
issuance thereof OF THE PERMIT is permissive only and does not constitute23
a recommendation or endorsement of the stock permitted to be issued.24
The commissioner may impose conditions requiring REQUIRE the25
impoundment of the proceeds from the sale of such stock, and limiting26
LIMIT the expense in connection with the sale thereof OF STOCK, and such27
1381
-32- IMPOSE ANY other conditions as he may deem THE COMMISSIONER DEEMS1
reasonable and necessary or advisable to insure the disposition of ENSURE2
THAT the proceeds from the sale of such stock ARE DISPOSED in the3
manner and for the purposes provided in such THE permit. The4
commissioner from time to time may amend, alter, or revoke any permit5
issued by him THE COMMISSIONER or temporarily suspend the rights of6
such AN association under such ITS permit. The commissioner has the7
power to MAY establish such rules and regulations as may be THAT ARE8
reasonable or necessary to carry out the purposes and provisions of this9
section.10
SECTION 39. In Colorado Revised Statutes, 11-42-115, amend11
(1) as follows:12
11-42-115.  Power to issue shares to minors or in trust.13
(1)  Every AN association has the power to MAY issue stock or shares to14
a minor of any age and either sex and receive payments thereon ON THE15
STOCK OR SHARES from, by, or for the minor. He shall be entitled to A16
MINOR MAY withdraw, transfer, or pledge any such shares owned by him17
THE MINOR and to receive from such THE association any dividends or18
other moneys at any time becoming MONEY THAT BECOMES due thereon19
ON THE SHARES in the same manner and subject to the same conditions as20
an adult, and his THE MINOR'S receipt or acquittance therefor shall21
constitute OF SUCH MONEY CONSTITUTES a valid release and discharge to22
the association for the payment of such moneys THE MONEY. The dealing23
of an association with a minor shall have HAS the same effect upon the24
association's liability as if the minor were of full legal capacity until his25
UNLESS THE MINOR'S guardian or conservator files with the association a26
certified copy of the order of a Colorado court having jurisdiction27
1381
-33- appointing the guardian or conservator and directing otherwise.1
SECTION 40. In Colorado Revised Statutes, amend 11-42-1232
as follows:3
11-42-123.  Matured shares. If, at the time shares in a savings4
and loan association have matured, the association has withdrawal notices5
on file to such an extent that the funds of the association, applicable to6
withdrawals, are not sufficient to pay off all shareholders desiring to7
withdraw, as well as shares which THAT have matured and are unpaid,8
and the holder of the matured shares desires to withdraw, he THE HOLDER9
OF THE MATURED SHARES shall file a notice of intention to withdraw. and10
Thereafter, be THE HOLDER OF THE MATURED SHARES IS subject to all the11
rights and liabilities of articles 40 to 46 of this title TITLE 11 governing12
withdrawing shareholders; except that he shall be THE HOLDER OF THE13
MATURED SHARES IS entitled to the full amount of any dividends declared14
on like shares during the time he THE HOLDER OF THE MATURED SHARES15
has a withdrawal notice on file on 
THE same.16
SECTION 41. In Colorado Revised Statutes, 11-44-102, amend17
(3) as follows:18
11-44-102.  Commissioner - duties - employees. (3)  The deputy19
commissioner, the secretary, and all other employees of the division shall
20
be ARE under the direct supervision of the commissioner. who shall have21
full power and control over such employees. Neither the commissioner22
nor any officer or employee of the division shall be IS personally liable23
for any acts done ACT PERFORMED in good faith IF THE COMMISSIONER,24
OFFICER, OR EMPLOYEE PERFORMED THE ACT while in the performance of25
his THE COMMISSIONER'S, OFFICER'S, OR EMPLOYEE'S duties as prescribed26
by law.27
1381
-34- SECTION 42. In Colorado Revised Statutes, amend 11-44-1031
as follows:2
11-44-103.  Powers of commissioner. The commissioner has3
general supervision and control over all domestic and foreign savings and4
loan associations doing business in this state and has full power to MAY5
grant, refuse, or revoke a permit or license to any association to do6
business in this state when such THE association is not conducting its7
business in conformity with the laws of the state or is conducting its8
business in such an unsafe manner as to render THAT RENDERS its further9
operations hazardous to the public or any of its THE ASSOCIATION'S10
shareholders. All articles of incorporation and amendments thereto TO11
THE ARTICLES, all bylaws and amendments thereto TO THE BYLAWS, and12
all certificates of stock and shares of associations subject to articles 40 to13
46 of this title TITLE 11 shall be submitted to said THE commissioner for14
his THE COMMISSIONER'S approval or disapproval, and said THE15
commissioner has the authority to MAY approve, modify, or reject any16
such articles of incorporation or amendments, thereto, bylaws or17
amendments, thereto, and OR certificates of stock or shares. The18
commissioner has full power and authority to MAY prescribe all necessary19
and proper rules and regulations for the conduct and operation of savings20
and loan associations in this state and shall prescribe the manner in which21
the books and records of associations doing business in this state shall be22
ARE kept.23
SECTION 43. In Colorado Revised Statutes, amend 11-44-103.524
as follows:25
11-44-103.5.  Record retention by the commissioner. The26
commissioner shall retain records pursuant to part 1 of article 80 of title27
1381
-35- 24 C.R.S., and may, in his or her THE COMMISSIONER'S discretion, destroy1
records pursuant to said part 1.2
SECTION 44. In Colorado Revised Statutes, amend 11-44-1043
as follows:4
11-44-104.  Commissioner may delegate powers. The5
commissioner may delegate such of his THE COMMISSIONER'S powers and6
authority to his THE COMMISSIONER'S deputies as he may deem THE7
COMMISSIONER DEEMS necessary for proper administration of the division8
and may designate appropriate titles for his THE COMMISSIONER'S deputies9
and any of his THE COMMISSIONER'S employees. Any such delegation or10
designation made may be rescinded by the commissioner at any time. All11
W
RITTEN RECORDS OF such actions shall be in writing and of record
12
RETAINED in the files of the division. The acts of deputies performing13
such WHO HAVE delegated powers and authority shall be of HAVE the14
same legal effect as if 
THE ACTS WERE performed personally by the15
commissioner.16
SECTION 45. In Colorado Revised Statutes, amend 11-44-10517
as follows:18
11-44-105.  Commissioner may institute suits. The19
commissioner shall report to the attorney general, and he
 THE ATTORNEY20
GENERAL shall institute and prosecute suits and actions to enjoin21
violations of articles 40 to 46 of this title TITLE 11 or violations of orders22
or decisions of the commissioner rendered pursuant to said articles and23
to enforce any civil penalties provided by said articles. The commissioner24
shall notify the proper district attorney of any violation of the provisions25
of articles 40 to 46 of this title which TITLE 11 THAT constitutes a felony26
or misdemeanor, and such THE district attorney shall forthwith PROMPTLY27
1381
-36- prosecute the person charged with such THE offense. Upon THE failure or1
refusal of the district attorney to so prosecute, it shall be the duty of the2
attorney general to conduct such prosecution SHALL PROSECUTE THE3
MATTER.4
SECTION 46. In Colorado Revised Statutes, amend 11-44-1065
as follows:6
11-44-106.  Issuance of subpoenas. (1)  The commissioner has7
the power to MAY:8
(a)  Issue subpoenas and require attendance of any and all officers,9
directors, agents, salesmen, collectors, and employees OFFICER, DIRECTOR,10
AGENT, SALESPERSON, COLLECTOR, OR EMPLOYEE of any association and11
such ANY other witnesses as he THAT THE COMMISSIONER may deem12
necessary in relation to its THE ASSOCIATION'S affairs, transactions, and13
conditions; and may14
(b)  Require such witnesses to appear and answer such questions15
as THAT THE COMMISSIONER may be put to them; by the commissioner,16
and may17
(c)  Require such witnesses to produce such books, papers, or18
documents in their possession. as may be required by the commissioner.19
(2)  Upon application of the commissioner, any person served with20
a subpoena issued by him THE COMMISSIONER may be required, by order21
of the district court of the county where the association has its principal22
office, to:23
(a)  Appear and answer such questions as THAT THE24
COMMISSIONER may be put to him by the commissioner THE PERSON; and25
be required to26
(b)  Produce such books, papers, or documents in his THE PERSON'S27
1381
-37- possession as may be required by THAT the commissioner MAY REQUIRE.1
SECTION 47. In Colorado Revised Statutes, 11-44-106.5,2
amend (2)(b) as follows:3
11-44-106.5.  Suspension or removal of directors, officers, or4
employees - penalty. (2) (b)  If the commissioner determines that a5
specific case involves extraordinary circumstances which THAT require6
immediate action, he THE COMMISSIONER may suspend or remove a7
person under subsection (1) of this section without notice or a hearing,8
but he THE COMMISSIONER shall conduct a hearing under section 24-4-1059
C.R.S., within thirty days after such THE suspension or removal.10
SECTION 48. In Colorado Revised Statutes, 11-44-109, amend11
(1), (1.5), (2), (3), and (4) as follows:12
11-44-109.  Examination by commissioner - procedure -13
penalty. (1)  The commissioner, in person or by his deputy or one or14
more of his or her employees, At such intervals as the commissioner shall15
determine DETERMINES to be necessary or desirable in order to ascertain16
that each association is conducting its business in a safe and authorized17
manner, 
THE COMMISSIONER OR THE COMMISSIONER 'S DEPUTY OR18
EMPLOYEE shall visit the home office and such
 branch offices as THAT the19
commissioner deems necessary and examine into the affairs of every20
domestic association doing business in this state. The commissioner's21
deputy or any employee, of the commissioner, before being entitled to22
make BEFORE MAKING such AN examination, shall produce under the hand23
A DOCUMENT THAT INCLUDES THE SIGNATURE and seal of the24
commissioner his or her AND A STATEMENT CONCERNING THE25
COMMISSIONER'S authority to make such THE examination. The26
commissioner and his OR THE COMMISSIONER'S deputy have the power to27
1381
-38- MAY administer oaths and to examine under oath any director, officer,1
employee, or agent of any association concerning the business and affairs2
thereof OF THE ASSOCIATION. If the association has neither been audited3
by a registered or certified public accountant, in such THE manner and by4
auditors satisfactory to the commissioner, within the twelve-month period5
immediately preceding the date of such THE examination or within the6
period that has elapsed since such THE last preceding examination,7
whichever is greater, nor adopted and maintained an internal audit8
program acceptable to the federal deposit insurance corporation or its9
successor and the division, the examination by the division shall MUST10
include an audit. The cost, as computed by the division, of any such THE11
audit shall be paid by the association audited; except that there shall be no12
charge by the division SHALL NOT CHARGE for making an audit when such13
THE audit has been made by reason of collaboration as provided in section14
11-41-117.15
(1.5)  In lieu of making his or her THE COMMISSIONER'S own16
examination, the commissioner may accept the examination report17
prepared by the federal office of thrift supervision or its successor or18
other AN appropriate FEDERAL regulatory authority.19
(2)  When, in the judgment of the commissioner, the condition of20
any AN association renders it necessary or expedient to make an extra21
examination or to devote any such extraordinary attention to its THE22
ASSOCIATION'S affairs, the commissioner has authority to MAY make any23
extra examinations and to devote any necessary extra attention to the24
conduct of its THE ASSOCIATION'S affairs and may cause a registered or25
certified public accountant, appointed by the commissioner, to make an26
audit or examination of such THE association's business and affairs. In any27
1381
-39- such case, the association shall pay a reasonable fee based on actual cost1
to be affixed by the commissioner for all such extra services rendered by2
the division or by such THE accountant. A copy of the commissioner's3
report on each examination must be furnished to the association4
examined, and each director must note thereon ON THE REPORT that he5
THE DIRECTOR has read the same REPORT.6
(3)  The commissioner or his THE COMMISSIONER'S deputy shall7
annually examine into the affairs of every foreign association doing8
business in this state, and for every such examination made outside this9
state, a reasonable expense and the actual traveling expenses incurred10
shall be paid by the association so examined. If the commissioner deems11
it necessary, he THE COMMISSIONER may cause a public accountant,12
appointed by the commissioner, to make an audit or examination of such13
THE association's business and affairs, and, in any such case, such THE14
association shall pay a reasonable price to be fixed by the commissioner15
for such THE extra services rendered by such THE accountant. Should IF16
any A foreign association fail FAILS to pay the costs incurred in any such17
THE examination, such THE costs shall be paid by the state treasurer upon18
the order of the commissioner, and the amount so paid shall be BECOMES19
a first lien upon all the assets and property of such THE association and20
may be recovered by suit by the attorney general on behalf of the state of21
Colorado and restored to the fund from which THE COSTS WERE paid.22
(4)  For the purpose of the examinations provided for in this23
section, the commissioner and his THE COMMISSIONER'S deputy or any24
other person authorized by him THE COMMISSIONER to make the25
examination:26
(a)  Has free access to all books and papers of the association27
1381
-40- which THAT relate to its business and to the books and papers kept by any1
officer, agent, or employee relating thereto TO THE ASSOCIATION or upon2
which any record of its business is kept; and3
(b)  May summon witnesses and administer oaths or affirmations4
in the examination of the directors, officers, agents, or employees of any5
such association or any other person in relation to its AN ASSOCIATION'S6
affairs, transactions, and conditions; He AND7
(c)  May require and compel the production of records, books,8
papers, contracts, or other documents by court action if necessary.9
SECTION 49. In Colorado Revised Statutes, 11-44-110, amend10
(1), (2), and (4)(e) as follows:11
11-44-110.  Power to take possession of association. (1)  If the12
commissioner as the result of any examination or from any report made13
to him, finds that any AN association doing business in this state is14
violating the provisions of its articles of incorporation or bylaws or of the15
laws of this state provided for its THE ASSOCIATION'S government, or is16
conducting its business in an unsafe or unauthorized manner, by an THE17
COMMISSIONER MAY order addressed to such THE association he may18
direct a discontinuance of such TO DISCONTINUE THE violations or unsafe19
or unauthorized practices. and a conformity with all the requirements of20
law.21
(2)  If such AN association refuses or neglects to comply with such22
AN order OF THE COMMISSIONER within the time specified therein IN THE23
ORDER, or if it appears to the commissioner that any AN association is in24
an unsafe condition or is conducting its business in an unsafe manner25
such as to render THAT RENDERS its further proceedings hazardous to the26
public or to any of its THE ASSOCIATION'S members, or if he THE27
1381
-41- COMMISSIONER finds that its THE ASSOCIATION'S assets are impaired to1
such an extent that it threatens loss to the withdrawable shares, or if any2
AN association refuses to submit its books, papers, and accounts to the3
inspection of the commissioner or any of his THE COMMISSIONER'S4
examiners, his deputy DEPUTIES, or his assistants, or if any officer refuses5
to be examined upon UNDER oath concerning the affairs of such THE6
OFFICER'S association, then the commissioner may revoke the certificate7
of authority of such THE association, which shall act REVOCATION SERVES8
as an injunction against the association issuing any new shares or stock,9
making any new loans, transferring any shares or stock, or making any10
change in its managerial or directorial personnel during the time such THE11
revocation is in effect.12
(4) (e) If a conservator is appointed, and THE CONSERVATOR is13
other than the federal deposit insurance corporation the office of thrift14
supervision or its successors, or an employee of the division of financial15
services, the conservator and any assistants shall provide a bond, payable16
to the association and executed by a surety company authorized to do17
business in this state, which SURETY COMPANY meets with the approval18
of the financial services board, for the faithful discharge of their ITS19
duties in connection with such THE conservatorship and the accounting20
for all moneys MONEY coming into their hands ITS POSSESSION. The cost21
of such THE bond shall be paid from the assets of the association. Suit22
may be maintained on such THE bond by any person injured by a breach23
of the conditions thereof OF THE BOND. This requirement may be deemed24
IS met if the financial services board determines that the association's25
fidelity bond covers the conservator and any assistants.26
SECTION 50. In Colorado Revised Statutes, 11-44-113, amend27
1381
-42- (1) and (3) as follows:1
11-44-113.  Procedure under court order. (1)  The commissioner2
may retain possession of any A savings and loan association for the3
purpose of liquidating its affairs, but before doing so, he THE4
COMMISSIONER shall furnish a bond, executed by some A surety company5
authorized to do business in this state and running to the people of the6
state of Colorado, in a penal sum equal to the value of the negotiable7
assets of the association, as nearly as may be determined, for the faithful8
discharge of his THE COMMISSIONER'S duties in connection with9
liquidating the affairs of the association and accounting for all moneys10
MONEY coming into his hands. Such THE COMMISSIONER'S POSSESSION.11
T
HE bond shall
 MUST be approved by the governor and be filed in the12
office of the secretary of state. The cost of such THE bond shall be paid13
from the assets of the association. Suits may be maintained on such THE14
bond by any person injured by a breach of the conditions thereof OF THE15
BOND.16
(3)  If the commissioner is in possession of the business, property,17
and assets of any AN association, regardless of whether or not he THE18
COMMISSIONER is liquidating the affairs of such THE association, the19
commissioner in his discretion, may apply to the district court of the20
county in which the principal office in this state of such THE association21
is located for an order confirming any action taken by the commissioner22
or authorizing the commissioner to do any act or to execute any23
instrument not expressly authorized by articles 40 to 46 of this title TITLE24
11, which order shall be made after a hearing, on such notice as the court25
shall prescribe. He THE COMMISSIONER may pay and discharge any26
secured claims against such THE association, and, within six months after27
1381
-43- taking such possession he OF THE ASSOCIATION, THE COMMISSIONER may1
disaffirm any executory contracts, including leases, to which such THE2
association is a party and disaffirm any partially executed contracts,3
including leases, to the extent that they remain executory.4
SECTION 51. In Colorado Revised Statutes, amend 11-44-1155
as follows:6
11-44-115.  Officers to furnish schedule of property. (1)  Upon7
taking possession of the property, business, and assets of any AN8
association, the commissioner shall require the president and secretary of9
such THE association to:10
(a)  Make a schedule of all its OF THE ASSOCIATION'S property and11
assets and of all collateral held by it THE ASSOCIATION as security for12
loans; and to make13
(b)  S
TATE UNDER oath that such
 THE schedule sets forth all such14
property, assets, and collateral which such THAT THE association owns or15
to which it is entitled; and to16
(c)  Deliver such TO THE COMMISSIONER THE schedule and the17
possession of all such property and collateral as may not have THAT HAS18
NOT been so previously delivered to the commissioner. who19
(2)  T
HE COMMISSIONER may examine under oath such
 THE20
president and secretary, the other officers of such THE association, or the21
directors, agents, or employees thereof UNDER OATH at any time to22
determine whether or not all the property, assets, and collateral which23
such THAT THE association owns or to which it is entitled have been24
transferred and delivered into his possession TO THE COMMISSIONER.25
SECTION 52. In Colorado Revised Statutes, 11-44-116, amend26
(1), (3), (5), (6), (7), (8), and (11) as follows:27
1381
-44- 11-44-116.  Liquidation powers of commissioner. (1)  In1
liquidating the affairs of an association, the commissioner has the power2
to MAY:3
(a)  Collect all moneys MONEY due to and all claims of such THE4
association and give full receipt therefor; to FOR THE MONEY AND CLAIMS;5
(b)  Release or reconvey all real or personal property pledged,6
hypothecated, or transferred in trust as security for loans; to7
(c)  Approve and pay all just and equitable claims; to8
(d)  Commence and prosecute all actions and proceedings9
necessary to enforce liquidations; to10
(e)  Compound bad or doubtful debts and to compound and settle11
with any debtor or creditor of such THE association or with the persons12
having possession of its property or being in any way responsible at law13
or in equity to such THE association, upon such terms and conditions and14
in such manner as he THE COMMISSIONER deems just and beneficial to15
such THE association;16
(f)  In case of mutual dealings between the association and any17
person, to allow just setoffs in favor of such persons A PERSON in all cases18
in which the same ought to JUST SETOFFS SHOULD be allowed according19
to law and equity;20
(g)  In case of borrowers holding shares of the association pledged21
to the association as security for said A loan, to allow the amount paid in22
on said THE shares, together with all dividends legally declared thereon23
ON THE SHARES, to be set off against the amount due on said THE loan;24
and to25
(h)  Sell, convey, and transfer real and personal property.26
(3)  For the purpose of executing and performing any of the27
1381
-45- powers and duties conferred upon him THE COMMISSIONER, the1
commissioner, in the name of such AN association or in his THE2
COMMISSIONER'S own name, may:3
(a)  Prosecute and defend any and all suits and other legal4
proceedings SUIT OR OTHER LEGAL PROCEEDING ; and5
(b)  in the name of such association or in his own name, as6
commissioner, may Execute, acknowledge, and deliver any deeds,7
assignments, releases, and other instruments necessary and proper to8
effectuate any sale of real or personal property or other transaction in9
connection with the liquidation of such THE association. Any deed,10
assignment, release, or other instrument executed pursuant to the11
authority given shall be THIS SUBSECTION (3)(b) IS valid and effectual for12
all purposes as though the same had been IF IT WERE executed by the13
officers of such THE association by authority of its board of directors.14
(5)  Upon determining to liquidate an association, the15
commissioner shall cause REQUIRE an inventory of all the assets of such16
THE association to be made in duplicate, the original to be filed with the17
court and the duplicate in the office of the commissioner. He THE18
COMMISSIONER shall cause due notice to be given, by publication once a19
week for four successive weeks in some A newspaper of general20
circulation published at or near the principal place of business of such21
THE association in this state, to all persons having claims against it THE22
ASSOCIATION as creditors, or investors, or otherwise, to present and file23
same THE CLAIMS and make legal proof thereof OF THEM at a place and24
within a time to be designated in such THE publication, which time shall25
MUST be not less than two months after such THE first publication. Within26
ten days after such THE first publication, he THE COMMISSIONER shall27
1381
-46- cause a copy of such THE notice to be mailed to all persons whose names1
appear of record upon its THE ASSOCIATION'S books as creditors or2
investors. and, Upon the expiration of the time fixed for the presentation3
of claims, the commissioner shall prepare or cause to be prepared in4
duplicate a full and complete schedule of all claims presented, specifying5
by classes those that have been approved and those that have been6
disapproved, and shall file the original with the court and the duplicate in7
the office of the commissioner. Not later than five days after the time of8
filing such THE schedule with the court, THE COMMISSIONER SHALL MAIL9
written notice shall be mailed to all claimants whose claims have been10
rejected.11
(6)  Action to enforce the payment of any rejected claim must be12
brought and service had PROCESS SERVED within four months after the13
date of filing of the schedule of claims with the proper court; otherwise,14
all such actions shall be forever ARE barred. All claims of creditors,15
investors, or other persons against the association or against any property16
owned or held by it THE ASSOCIATION must be presented to the17
commissioner in writing 
AND verified by the claimant or someone in his
18
ACTING ON THE CLAIMANT'S behalf within the TIME period limited FIXED19
in the notice mentioned DESCRIBED in subsection (5) of this section for20
the presentation of claims. and Any claims not so presented shall be21
forever ARE barred; but the claim of EXCEPT THAT any investor appearing22
WHO MAKES A CLAIM THAT APPEARS upon the books of the association as23
a valid claim 
AND IS presented after the expiration of the time fixed in24
said
 THE notice shall be entitled to MAY share in any dividends declared25
subsequent to the presentation of such THE claim.26
(7) (a)  The commissioner under his hand and official seal may:27
1381
-47- (I)  Appoint one or more special deputies to assist in the duties of1
liquidation and distribution under his THE COMMISSIONER'S direction; and2
may also3
(II)  Employ such special legal counsel, accountants, and assistants4
as may be needful and requisite NECESSARY; and5
(III)  Fix the salaries and compensation to be allowed and paid to6
each, all to be in a reasonable and commensurate sum SPECIAL DEPUTIES,7
LEGAL COUNSEL, ACCOUNTANTS, AND ASSISTANTS.8
(b)  All such salaries, and compensation, and such other reasonable9
and necessary expenses as may be incurred in the liquidation OF AN10
ASSOCIATION shall be paid by the commissioner from the funds of such11
THE association. in his hands.12
(8)  From the net realization of such AN ASSOCIATION'S assets in13
excess of such salaries, compensation, and expenses, the commissioner14
shall first pay all approved claims other than to investors, and thereafter15
he THE COMMISSIONER shall distribute and pay dividends in liquidation to16
the shareholders and investors in the association, other than holders of17
permanent stock, until their THE SHAREHOLDERS' AND INVESTORS' claims18
are fully paid or such THE assets or funds are exhausted. Such19
Distributions shall be made as funds are available, therefor, to the extent20
of ten percent or more of the approved claims of the class of claimants21
then entitled to distribution, and shall continue until all the assets have22
been realized upon and a final dividend in liquidation is declared and23
paid.24
(11)  Whenever, in case of any AN association which THAT has25
issued permanent stock, the commissioner has fully liquidated all claims26
other than claims of such THE stockholders and has made due provision27
1381
-48- for any and all known or unclaimed liabilities, excepting claims of1
permanent stockholders, and has paid all expenses of liquidation, he THE2
COMMISSIONER shall call a meeting of the stockholders of said savings3
and loan THE association by giving notice thereof OF THE MEETING for4
thirty days in one or more newspapers published in the county in which5
the principal office of the association is located. At such THE meeting, the6
commissioner shall deliver to such THE stockholders all the property and7
effects of said THE association remaining in his THE COMMISSIONER'S8
possession, except its records, which 
THE COMMISSIONER shall be retained
9
by him as part of the records of his office, and, upon RETAIN. AFTER such10
transfer and delivery, he shall be THE COMMISSIONER IS discharged from11
any and all further liability to said THE association or its creditors, and12
thereupon the association shall be IS in the same position as though it13
THAT IT WOULD BE IN IF IT had never been authorized to transact a savings14
and loan business.15
SECTION 53. In Colorado Revised Statutes, amend 11-44-11716
as follows:17
11-44-117.  Setoffs. Credits on loan shares of all persons indebted18
to any savings and loan association in the possession of the19
commissioner, whether such THE indebtedness is due or to become due,20
shall be applied by him THE COMMISSIONER on account of such THE21
indebtedness.22
SECTION 54. In Colorado Revised Statutes, amend 11-44-11823
as follows:24
11-44-118.  Commissioner and deputy not to accept gifts.25
Neither the commissioner nor his THE COMMISSIONER'S deputy shall26
receive or accept any bribe, gratuity, or reward from any person or27
1381
-49- association for any purpose whatever or knowingly and willfully make1
any false or fraudulent report of the condition of any association for any2
purpose. whatsoever. One or more of the directors of any AN association3
may be present at any AN examination of the affairs thereof OF AN4
ASSOCIATION, but the absence of any or all of the officers or directors5
shall DOES not operate to prevent the commissioner or his THE6
COMMISSIONER'S deputy from proceeding with such AN examination.7
SECTION 55. In Colorado Revised Statutes, 11-44-120, amend8
(1) as follows:9
11-44-120.  Records of commissioner. (1)  The commissioner10
shall maintain annually revised summaries disclosing:11
(a)  The names of the officers and directors of all savings and loan12
associations doing business in the state of Colorado during the preceding13
year;14
(b)  The financial condition of such THE savings and loan15
associations, together with INCLUDING a statement of the assets, liabilities,16
and reserves of the associations; and17
(c)  Such ANY other information concerning the same SAVINGS18
AND LOAN ASSOCIATIONS as he may see THE COMMISSIONER DEEMS fit TO19
INCLUDE.20
SECTION 56. In Colorado Revised Statutes, amend 11-46-10621
as follows:22
11-46-106.  Effect of lessee's death or incompetence. Where IF23
a lessor, without written notice or actual knowledge of the death or of a24
determination of legal incompetence of the lessee, deals with said THE25
lessee or his THE LESSEE'S agent pursuant to a written power of attorney26
signed by such THE lessee, the transaction binds the lessor and the estate27
1381
-50- of the lessee.1
SECTION 57. In Colorado Revised Statutes, 11-46-108, amend2
(1) introductory portion and (1)(a) as follows:3
11-46-108.  Adverse claims to contents of safe deposit box.4
(1)  A lessor shall not deny access to a safe deposit box to 
IT'S A lessee5
unless the 
LESSEE'S claim of said lessee
 is adverse within the terms of this6
section. A claim shall be considered IS adverse when:7
(a)  The lessor is directed to deny such access by a court order8
issued in an action in which the lessee is served with process and named9
as a party by a name which THAT identified him THE LESSEE with the10
name in which the safe deposit box is leased; or11
SECTION 58. In Colorado Revised Statutes, 11-49-101, amend12
(4), (6), (7), (8), and (10) as follows:13
11-49-101. Definitions. As used in this article 49, unless the14
context otherwise requires:15
(4) "Entrance fee" means the total of any initial or deferred16
transfer to or for the benefit of a provider, of a sum of money or other17
property WHICH TRANSFER:18
(a) IS made or promised to be made as full or partial consideration19
for the acceptance or maintenance of a specified individual as a resident20
in a facility; and21
(b)  IS IN THE FORM OF:22
(I)  PROPERTY; OR23
(II) A SUM OF MONEY IN AN AMOUNT THAT IS GREATER THAN FOUR24
TIMES THE AMOUNT OF A REGULAR PERIODIC CHARGE UNDER A LIFE CARE25
CONTRACT AT THE FACILITY.26
(6) "Life care" means care provided, pursuant to a life care27
1381
-51- contract, for the life of an aged person, including but not limited to1
services such as OCCUPANCY OF A LIVING UNIT, health care, NUTRITION2
ASSISTANCE, medical services, board, lodging, or other necessities AND3
NURSING SERVICES WITHIN A LIVING UNIT.4
(7) "Life care contract" means a written contract to provide life5
care to a person for the duration of the person's life conditioned upon the6
transfer of an entrance fee to the provider of the services in addition to or7
in lieu of the payment of regular periodic charges for the care and8
services involved. Any A life care contract UNDER WHICH THE ENTRANCE9
FEE IS payable to or for the provider in four or more installments shall be10
IS subject to the provisions of the "Uniform Consumer Credit Code",11
articles 1 to 9 of title 5.12
(8) "Living unit" means a room, apartment, or other area THAT IS13
within a facility AND set aside for the exclusive use or control of one or14
more identified residents AND WITHIN WHICH LIFE CARE IS PROVIDED BY15
THE PROVIDER. A RESIDENT'S LIVING UNIT MAY CHANGE BASED ON THE16
APPROPRIATE CARE NEEDS OF THE RESIDENT .17
(10) (a) "Provider" means a person who undertakes to provide18
services in a facility pursuant to a life care contract.19
(b) "PROVIDER" DOES NOT INCLUDE A UNIT OWNERS' ASSOCIATION,20
AS DEFINED IN SECTION 38-33.3-103 (3).21
SECTION 59. In Colorado Revised Statutes, 11-49-102, amend22
(1) introductory portion as follows:23
11-49-102.  Escrow account for entrance fees. (1)  Each provider24
shall establish an escrow account that provides that all of any entrance fee25
received by the provider prior to the date the resident is permitted to26
occupy his or her THE RESIDENT'S living unit in the facility be placed in27
1381
-52- escrow with a bank, trust company, or other licensed corporate escrow1
agent located in Colorado and approved by the commissioner, subject to2
the condition that the funds MONEY may be released only as follows:3
SECTION 60. In Colorado Revised Statutes, 11-49-103, amend4
(1) as follows:5
11-49-103.  Withdrawal or dismissal of person - refund. (1)  If6
the AN agreement permits withdrawal or dismissal of the A resident from7
the A life care institution prior to the expiration of the agreement, with or8
without cause, an amount equal to the difference between the amount paid9
in and the amount used for the care of the resident during the time he or10
she THE RESIDENT remained in the institution, based upon the per capita11
cost to the institution as determined in a manner acceptable to the12
commissioner, shall be refunded to the resident; but in cases where a13
consideration greater than the minimum charge has been paid for14
accommodations above standard, a sum equal to the difference between15
the amount paid in and the ratio of the amount paid to the minimum16
consideration for standard accommodations times the current per capita17
cost to the institution applied to the period the resident remained in the18
institution shall be refunded to the resident. If the per capita cost to the19
institution during the period cannot be established otherwise, the cost20
during the period shall be IS deemed to be the cost at the time of the21
withdrawal or dismissal. A
S USED IN THIS SECTION, for refund purposes,22
"cost" shall include
 INCLUDES a reasonable profit to the provider.23
SECTION 61. In Colorado Revised Statutes, 11-41-112, amend24
(1)(l) and (1)(m) as follows:25
11-41-112. Powers of savings and loan associations.26
(1)  Savings and loan associations have the following powers:27
1381
-53- (l)  To act as a trustee, custodian, or manager, or in any other1
fiduciary capacity to the same extent authorized and permitted from time2
to time by the laws and regulations applicable to federal savings and loan3
associations in Colorado, and, upon specific approval by the4
commissioner, by permission granted such federal associations by the5
federal office of thrift supervision or its successor, including specifically,6
but without limitation, the power to act as the trustee, custodian, or7
manager of any trust created or organized in the United States and8
forming a part of a stock bonus, pension, profit-sharing, or retirement9
plan that is qualified for specific tax treatment under the provisions of the10
federal "Self-Employed Individuals Tax Retirement Act of 1962", 2611
U.S.C. SEC. 401 ET SEQ., as from time to time amended or supplemented,12
or under the provisions of any other act of congress enacted after June 2,13
1971, as a substitute or replacement for the federal "Self-Employed14
Individuals Tax Retirement Act of 1962" or under the provisions of the15
federal "Employee Retirement Income Security Act of 1974", 29 U.S.C.16
sec. 1001 et seq., as from time to time amended or supplemented. The17
association managing funds of any such plan, trust, or fund shall have18
HAS, to the extent applicable to federal savings and loan associations in19
Colorado, all of the rights, powers, privileges, and immunities and shall20
be IS subject to the same obligations and duties as an individual fiduciary21
under like circumstances with power to make investments. All funds held22
in such fiduciary capacity by any association may be commingled for23
appropriate purposes of investment, but individual records shall be kept24
by the fiduciary for each participant and shall MUST show in proper detail25
all transactions engaged in under the authority of this paragraph (l)26
SUBSECTION (1)(l). An association acting as a trustee may control27
1381
-54- accounts in or securities of such AN association pursuant to the exercise1
of its authority as a trustee. The exercise by an association of any2
authority vested in it shall DOES not affect any other authority of such THE3
association.4
(m) To ESTABLISH, subject to the regulations of the United States5
FEDERAL treasury department, and the federal office of thrift supervision6
or its successor, establish a tax and loan account and serve as a depository7
for federal taxes or as a treasury tax and loan depository, and to satisfy8
any ASSOCIATED requirement; in connection therewith;9
SECTION 62. In Colorado Revised Statutes, 11-41-113, amend10
(1) as follows:11
11-41-113. Federal home loan bank membership. (1) Any12
savings and loan association organized and incorporated under the laws13
of this state as a savings and loan association that is eligible to become a14
member of the federal home loan bank, in accordance with the provisions15
of the act of congress known and cited as the "Federal Home Loan Bank16
Act", 12 U.S.C. sec. 1421 et seq., approved July 22, 1932 AS AMENDED,17
is authorized to subscribe for stock of the federal home loan bank for the18
district in which it is located and to invest its funds in such stock for the19
purpose and to the extent required and permitted by the provisions of the20
"Federal Home Loan Bank Act", 12 U.S.C. sec. 1421 et seq., or any21
amendment thereto AS AMENDED, and is further authorized to furnish to22
the federal office of thrift supervision or its successor and to the federal23
home loan bank reports of examinations of such associations made by the24
commissioner, and is further authorized to consent to an examination to25
be made by the federal office of thrift supervision or its successor or the26
federal home loan bank, and is further authorized to do all other things as27
1381
-55- may be required by the "Federal Home Loan Bank Act", 12 U.S.C. sec.1
1421 et seq., or any amendment thereto AS AMENDED, necessary to obtain2
and to continue membership in the federal home loan bank and to obtain3
advances therefrom FROM THE FEDERAL HOME LOAN BANK or that may be4
incidental to acquiring or holding membership and to obtaining advances5
therefrom FROM THE FEDERAL HOME LOAN BANK , and is authorized to6
assume all the duties, obligations, responsibilities, and liabilities and7
become entitled to all the benefits provided in the "Federal Home Loan8
Bank Act", 12 U.S.C. sec. 1421 et seq., AS AMENDED.9
SECTION 63. In Colorado Revised Statutes, 11-42-111, amend10
(14) as follows:11
11-42-111. Reserves and distribution of earnings.12
(14) Notwithstanding any other provision of the Colorado "Savings and13
Loan Association Law", article 40 ARTICLES 40 TO 46 of this title TITLE14
11, any association may distribute earnings on its shares on such other15
dates, on such other bases, and in accordance with such other terms and16
conditions as may from time to time be authorized by regulations made17
by the federal office of thrift supervision or its successor or the federal18
deposit insurance corporation or its successor for federal savings and loan19
associations when such THE regulations are approved by the20
commissioner.21
SECTION 64. In Colorado Revised Statutes, 11-44-107, amend22
(1)(c) and (1)(f) as follows:23
11-44-107. Confidentiality. (1) Neither the commissioner, the24
commissioner's deputy, nor any other person appointed by the25
commissioner shall divulge any information acquired in the discharge of26
the person's duties; except that:27
1381
-56- (c) The commissioner may furnish information as to the condition1
of a savings and loan association to the federal office of thrift supervision2
or its successors, a federal home loan bank, the savings and loan3
departments of other states, an insurer authorized to insure obligations or4
accounts pursuant to articles 40 to 47 of this title TITLE 11, the executive5
director of the department of regulatory agencies, or AND the division of6
banking;7
(f) Notwithstanding any provision contained in this article8
ARTICLE 44 to the contrary, the commissioner, the commissioner's9
deputies, or other persons appointed by the commissioner may disclose10
any information in the records of the division of financial services or11
acquired in the discharge of the person's duties that is available from the12
federal office of thrift supervision or its successors or IF the disclosure of13
which THE INFORMATION has been specifically authorized by the board of14
directors of the association to which such THE information relates.15
Nothing in this section shall be construed to authorize the board of16
directors of an association to waive any privileges that belong solely to17
the financial services board OR TO the division of financial services, or its18
employees.19
SECTION 65. In Colorado Revised Statutes, 11-45-101, amend20
(1) introductory portion and (1)(c) as follows:21
11-45-101. Conversion into federal association. (1) Any22
savings and loan association or other home-financing organization, by23
whatever name or style it may be designated, which THAT is eligible to24
become a federal savings and loan association may convert itself into a25
federal savings and loan association by the following procedure:26
(c)  Within a reasonable time and without any unnecessary delay27
1381
-57- after the adjournment of such THE meeting of shareholders, the1
association shall take such ANY action as THAT may be necessary to make2
it a federal savings and loan association. and, within ten days after receipt3
of the federal charter, there shall be filed in the office or division of this4
state having supervision of such association a copy of said charter issued5
to such association by the office of thrift supervision or its successor or6
a certificate showing the organization of such association as a federal7
savings and loan association certified by, or on behalf of, the office of8
thrift supervision or its successor. Upon the filing of such instrument,9
such association shall cease to be a state association and shall thereafter10
be a federal savings and loan association.11
SECTION 66. In Colorado Revised Statutes, 11-45-103, amend12
(1) as follows:13
11-45-103.  Conversion into state association. (1) Any federal14
savings and loan association may convert itself into an association under15
articles 40 to 46 of this title TITLE 11 by the majority vote of all members16
present in person or by proxy at an annual meeting or at any special17
meeting called to consider such THE action. Copies of the minutes of the18
proceedings of such THE meeting of members, verified by the affidavit of19
the secretary or an assistant secretary, shall be filed in the office of the20
commissioner and mailed to the office of thrift supervision, or its21
successor, within ten days after such THE meeting. Such THE verified22
copies of the proceedings of the meeting when so filed shall be ARE prima23
facie evidence of the holding and action of such THE meeting.24
SECTION 67. Act subject to petition - effective date -25
applicability. (1)  This act takes effect at 12:01 a.m. on the day following26
the expiration of the ninety-day period after final adjournment of the27
1381
-58- general assembly; except that, if a referendum petition is filed pursuant1
to section 1 (3) of article V of the state constitution against this act or an2
item, section, or part of this act within such period, then the act, item,3
section, or part will not take effect unless approved by the people at the4
general election to be held in November 2024 and, in such case, will take5
effect on the date of the official declaration of the vote thereon by the6
governor.7
(2)  This act applies to the operations of the division of financial8
services, the commissioner of financial services, the financial services9
board, credit unions, savings and loan associations, and life care10
institutions on or after the applicable effective date of this act, including11
the imposition of fines by the commissioner of financial services against12
a person who violates a cease-and-desist order or a suspension or removal13
order.14
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