HOUSE BILL 24-1381
BY REPRESENTATIVE(S) Kipp and Soper, deGruy Kennedy, Garcia,
Joseph, Lindstedt, Snyder, Hamrick, Ricks;
also SENATOR(S) Hansen and Mullica.
C
ONCERNING THE CONTINUATION OF THE DIVISION OF FINANCIAL SERVICES
IN THE DEPARTMENT OF REGULATORY AGENCIES
, AND, IN
CONNECTION THEREWITH
, IMPLEMENTING THE RECOMMENDATIONS
CONTAINED IN THE
2023 SUNSET REPORT BY THE DEPARTMENT OF
REGULATORY AGENCIES
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal
(25)(a)(I); and add (34)(a)(XI) as follows:
24-34-104. General assembly review of regulatory agencies and
functions for repeal, continuation, or reestablishment - legislative
declaration - repeal. (25) (a) The following agencies, functions, or both,
are scheduled for repeal on September 1, 2024:
(I) The division of financial services created in article 44 of title 11;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (34) (a) The following agencies, functions, or both, are scheduled
for repeal on September 1, 2033:
(XI) T
HE DIVISION OF FINANCIAL SERVICES CREATED IN ARTICLE 44
OF TITLE 11.
SECTION 2. In Colorado Revised Statutes, add 11-44-124 as
follows:
11-44-124. Repeal of article - review of functions. T
HIS ARTICLE
44 IS REPEALED, EFFECTIVE SEPTEMBER 1, 2033. BEFORE THE REPEAL, THE
DIVISION AND THE BOARD ARE SCHEDULED FOR REVIEW IN ACCORDANCE
WITH SECTION
24-34-104.
SECTION 3. In Colorado Revised Statutes, repeal 11-44-101.5 as
follows:
11-44-101.5. Division subject to termination - repeal of article.
(1) The provisions of section 24-34-104, C.R.S., concerning the
termination schedule for regulatory bodies of the state unless extended as
provided in that section, are applicable to the division of financial services
created by section 11-44-101.
(2) This article is repealed, effective September 1, 2024.
SECTION 4. In Colorado Revised Statutes, 11-30-122, amend (5);
and add (8) as follows:
11-30-122. Merger. (5) The duplicate of the certificate of merger
with the board's certificate of approval attached shall be filed with the
secretary of state who shall make a record of said
THE certificate and return
it, with his THE SECRETARY OF STATE'S certificate of record attached, to the
board for permanent record. The fee for said THE filing shall be determined
and collected pursuant to section 24-21-104 (3). C.R.S.
(8) A CREDIT UNION MAY MERGE WITH A CREDIT UNION THAT IS
CHARTERED IN ANOTHER STATE SO LONG AS THE MERGER IS APPROVED BY
THE BOARD OF DIRECTORS OF EACH CREDIT UNION
, THE COMMISSIONER, AND
THE FEDERAL NATIONAL CREDIT UNION ADMINISTRATION
. BEFORE
APPROVING A MERGER
, THE COMMISSIONER SHALL CONSIDER THE CONDITION
PAGE 2-HOUSE BILL 24-1381 OF EACH CREDIT UNION THAT IS A PARTY TO THE MERGER AND WHETHER THE
MERGER POSES ANY RISKS TO THE MEMBERS OF EACH CREDIT UNION
.
SECTION 5. In Colorado Revised Statutes, 11-30-106.5, amend
(3) as follows:
11-30-106.5. Assessment of civil money penalties. (3) In
determining the amount of the
A civil money penalty to be assessed, the
commissioner shall consider the good faith of the person
AGAINST WHOM
THE PENALTY IS
assessed, the gravity of the violation, any previous
violations by the person
AGAINST WHOM THE PENALTY IS assessed, and such
other matters as THAT the commissioner may deem appropriate. except that
The AMOUNT OF THE civil money penalty shall be MUST not more than one
EXCEED FIVE thousand dollars per day for each day the person assessed is
determined by the commissioner to be in violation of a cease-and-desist
order or an order of suspension or removal. Alternatively, the commissioner
may assess a civil money penalty for such
A violation in a lump-sum amount
not to exceed fifty thousand dollars.
SECTION 6. In Colorado Revised Statutes, 11-30-101.7, amend
(3)(a), (5) introductory portion, (5)(b), and (5)(c); and repeal (5)(d) as
follows:
11-30-101.7. Hearing procedures for community field of
membership credit unions. (3) (a) The board shall give notice of a
hearing on a community field of membership application at least thirty days
before the hearing date by registered or certified mail,
to the principal office
of each credit union, savings and loan association, or bank within the
neighborhood, community, or rural district sought to be served by the
proposed community credit union and to such
other persons or credit
unions, savings and loan associations, or banks as THAT the board may
designate.
(5) Within ninety days following the conclusion of AFTER a hearing,
the board shall issue a written order granting a community field of
membership if the board finds:
(b) That the credit union would benefit its members or proposed
members, consistent with the purposes of this article,
ARTICLE 30; that the
general character and fitness of the incorporators is appropriate; and that it
PAGE 3-HOUSE BILL 24-1381 is advisable from an economic standpoint to establish the proposed credit
union;
AND
(c) That the neighborhood, community, or rural district is politically,
geographically, socially, or economically well defined. and
(d) That the members of other credit unions within the
neighborhood, community, or rural district are specifically excluded from
membership, except as otherwise provided by the board for good cause.
SECTION 7. In Colorado Revised Statutes, amend 11-30-107 as
follows:
11-30-107. Fiscal year - meetings. (1) The fiscal year of all credit
unions shall end December 31 of each year. The annual meeting shall be
held within five months after the close of said fiscal year A BOARD OF
DIRECTORS OF A CREDIT UNION MAY DETERMINE THE DATE UPON WHICH THE
CREDIT UNION
'S FISCAL YEAR ENDS, SO LONG AS THE DATE COINCIDES WITH
THE END OF A STANDARD FISCAL QUARTER
.
(2) A
BOARD OF DIRECTORS OF A CREDIT UNION MAY DETERMINE THE
DATE OF THE CREDIT UNION
'S ANNUAL MEMBERSHIP MEETING . Special
meetings may be held in the manner indicated in the bylaws. At all
meetings, a member shall have but a single
HAS ONLY ONE vote, whatever
his REGARDLESS OF THE MEMBER 'S share holdings. There shall NOT be no
voting by proxy, but a member other than a natural person may cast a single vote through a delegated agent.
SECTION 8. In Colorado Revised Statutes, 11-44-123, amend (3)
as follows:
11-44-123. Assessment of civil money penalties. (3) In
determining the amount of the
A civil money penalty to be assessed, the
commissioner shall consider the good faith of the person
AGAINST WHOM
THE PENALTY IS
assessed, the gravity of the violation, any previous
violations by the person
AGAINST WHOM THE PENALTY IS assessed, and such
other matters as THAT the commissioner may deem appropriate. except that
The AMOUNT OF THE civil money penalty shall be MUST not more than one
EXCEED FIVE thousand dollars per day for each day the person assessed is
determined by the commissioner to be in violation of a cease-and-desist
PAGE 4-HOUSE BILL 24-1381 order or an order of suspension or removal. Alternatively, the commissioner
may assess a civil money penalty for such A violation in a lump-sum amount
not to exceed fifty thousand dollars.
SECTION 9. In Colorado Revised Statutes, repeal 11-30-124 as
follows:
11-30-124. Transfer of functions - conforming of statutes. (1) As
of April 11, 1988, the powers, duties, and functions of the state bank
commissioner under this article are transferred to the state commissioner of
financial services.
(2) On April 11, 1988, all employees of the division of banking
whose principal duties are concerned with the powers, duties, and functions
transferred to the state commissioner of financial services and whose
employment in the division of financial services is deemed necessary by the
executive director of the department of regulatory agencies to carry out the
purposes of this article are transferred to the division of financial services
and shall become employees thereof. Such employees shall retain all rights
to state personnel system and retirement benefits under the laws of this
state, and their services shall be deemed to have been continuous.
(3) On April 11, 1988, all items of property, real and personal,
including office furniture and fixtures, books, documents, and records of the
division of banking pertaining to the powers, duties, and functions
transferred to the state commissioner of financial services pursuant to this
section shall be transferred to the division of financial services and shall
become the property thereof.
(4) Whenever the state bank commissioner or the division of
banking is referred to or designated by any contract or other document in
connection with the powers, duties, and functions transferred to the state
commissioner of financial services, such reference or designation shall be
deemed to apply to the state commissioner of financial services or the
division of financial services, as the case may be. All contracts entered into
by the state bank commissioner or the division of banking prior to April 11,
1988, in connection with the powers, duties, and functions transferred to the
state commissioner of financial services are hereby validated, with the state
commissioner of financial services succeeding to all the rights and
obligations of such contracts.
PAGE 5-HOUSE BILL 24-1381 (5) On April 11, 1988, any unexpended appropriations of funds for
the current fiscal year made to the division of banking and allocated for the
administration and enforcement of this article shall be transferred to the
division of financial services. The executive director of the department of
regulatory agencies shall have the final authority to determine the allocation
of funds for purposes of the transfer under this subsection (5).
(6) The revisor of statutes is authorized to change all references to
the state bank commissioner in this article to refer to the state commissioner
of financial services and to change all references to the division of banking
in this article to refer to the division of financial services.
SECTION 10. In Colorado Revised Statutes, 11-30-101, amend (5)
as follows:
11-30-101. Definitions - organization - charter - investigation.
(5) After the said INCORPORATORS FILE A certified copy of articles of
incorporation have been filed with the commissioner he AS DESCRIBED IN
SUBSECTION
(4) OF THIS SECTION, THE COMMISSIONER shall issue a charter
for such
THE credit union, at which time the credit union shall become
BECOMES a body corporate having AND HAS the powers enumerated in
section 7-103-102, C.R.S., except as otherwise provided or limited in this
article ARTICLE 30.
SECTION 11. In Colorado Revised Statutes, 11-30-106, amend (6)
as follows:
11-30-106. Examinations - reports - powers of commissioner -
rules - penalty. (6) (a) The commissioner has the power to MAY:
(I) Issue subpoenas and require attendance of any and all officers,
directors, agents, and employees OFFICER, DIRECTOR, AGENT, OR EMPLOYEE
of any credit union and such ANY other witnesses as he THAT THE
COMMISSIONER
may deem necessary in relation to its
THE CREDIT UNION'S
affairs, transactions, and conditions; and may
(II) Require such witnesses to appear and answer such questions as
THAT THE COMMISSIONER may be put to them; by the commissioner, and
may
PAGE 6-HOUSE BILL 24-1381 (III) Require such witnesses to produce such books, papers, or
documents in their possession. as may be required by the commissioner.
(b) Upon application of the commissioner, any person served with
a subpoena issued by him THE COMMISSIONER may be required, by order of
the district court of the county where the credit union has its principal
office, to:
(I) Appear and answer such
questions as THAT THE COMMISSIONER
may be put to him by the commissioner THE PERSON; and be required to
(II) Produce such books, papers, or documents in his THE PERSON'S
possession as may be required by THAT the commissioner MAY REQUIRE.
SECTION 12. In Colorado Revised Statutes, 11-30-109, amend (3)
as follows:
11-30-109. Directors and officers - compensation. (3) A credit
union may reasonably compensate a director for his or her THE DIRECTOR'S
services to the credit union. Providing reasonable life, health, accident, and similar insurance protection is not considered compensation. Directors, officers, and committee members may be reimbursed for necessary expenses incidental to the performance of the official business of the credit union.
SECTION 13. In Colorado Revised Statutes, amend 11-30-110 as
follows:
11-30-110. Credit committee - credit officer. The credit committee
or credit officer shall have the
HAS general supervision of all loans to
members. Applications for loans shall MUST be on a form approved by the
credit committee or the credit officer. At least a majority of the members of
the credit committee or the credit officer shall pass and approve or
disapprove all loans; except that the credit committee or the credit officer
may appoint
DELEGATE TO one or more loan officers and delegate to the
same the power to approve or disapprove loans which THAT are within
limits prescribed by the credit committee or the credit officer. Each loan
officer shall furnish to the credit committee or the credit officer a record of
each loan application received by him
THE LOAN OFFICER within seven days
after the date of filing of the application IS FILED. All loans not approved by
PAGE 7-HOUSE BILL 24-1381 a loan officer may be considered by the credit committee or the credit
officer. No A member of the credit committee shall NOT receive any
compensation as a loan officer or be employed by the credit union in any
other capacity. A credit officer may receive compensation in connection
with the performance of his
THE CREDIT OFFICER'S duties. The credit
committee shall meet as often as may be necessary after due notice to each
member. Vacancies in the credit committee shall be filled pursuant to
section 11-30-109 (1)(e).
SECTION 14. In Colorado Revised Statutes, amend 11-30-112 as
follows:
11-30-112. Capital. The capital of a credit union shall consist
CONSISTS of the payments that have been made to it in shares by the several
members thereof OF THE CREDIT UNION. The credit union has a lien on the
shares and deposits of a member for any sum due to the credit union from
said
THE member or for any loan endorsed by him THE MEMBER. A credit
union may charge an entrance fee and an annual membership fee, but such
THE fees shall MUST be uniform to all members.
SECTION 15. In Colorado Revised Statutes, amend 11-30-113 as
follows:
11-30-113. Minors. Shares may be issued and deposits received in
the name of a minor. A member who is a minor shall be entitled to MAY
withdraw or pledge any shares owned by him THE MINOR and to receive
from the credit union any and all dividends or other moneys, MONEY at any
time the same become DIVIDENDS OR OTHER MONEY BECOMES due, in the
same manner and subject to the same conditions as an adult, and any receipt
or acquittance signed by such a
THE minor shall constitute CONSTITUTES a
valid release and discharge to the credit union for the payment of such
moneys
MONEY. The board of directors of the credit union may provide in
the bylaws of the credit union a minimum age of any minor to be eligible
for membership in the credit union and to vote at any meeting of the
members.
SECTION 16. In Colorado Revised Statutes, 11-30-120, amend
(1)(a), (1)(c), and (2) as follows:
11-30-120. Suspension - liquidation - procedures. (1) (a) If it
PAGE 8-HOUSE BILL 24-1381 appears that any credit union is insolvent, or that it has willfully violated
any provision of this article ARTICLE 30, or that it is operating in an unsafe
or unsound manner, the commissioner may issue his order for such THE
credit union to show cause why its operations should not be suspended until such
THE insolvency, violation, or manner of operation is rectified and
afford the credit union an opportunity for a hearing not less than ten days
nor more than twenty days after such
THE DATE THE order Such IS ISSUED.
T
HE order shall
MUST be in writing and delivered by registered or certified
mail. If the credit union fails to answer such THE order, or if any officer or
director of or attorney for the credit union fails to appear at the time set for
the hearing, the commissioner
MAY either may revoke the certificate of
incorporation of the credit union or may order the immediate suspension of
operations of the credit union, except
FOR the collection of payments on
outstanding loans or other obligations due
TO the credit union, or both, and
may enforce any such
THE order by an action filed in the district court of the
judicial district wherein WHERE the principal office of the credit union is
located, seeking to enjoin further operations or to appoint a receiver for
such
THE credit union.
(c) If the commissioner revokes the charter of the credit union, he
THE COMMISSIONER shall appoint a liquidating agent to liquidate the assets
of the credit union pursuant to subsection (3) of this section.
(2) Any credit union may be voluntarily dissolved and liquidated
upon majority vote of the entire membership thereof OF THE CREDIT UNION
at a meeting especially called for the THAT purpose or at the annual meeting
where notice of such THE proposed action is mailed to the members at least
thirty days prior to such BEFORE THE meeting. In either event, a copy of the
notice shall be delivered to the commissioner not less than ten days prior to
such BEFORE THE meeting. Any member of a credit union may cast his THE
MEMBER
'S ballot for or against such
THE dissolution and liquidation by mail
within twenty days after such THE meeting. If a majority of the members of
the credit union vote in favor of dissolution and liquidation, the board of
directors, within five days after the close of voting, shall notify the
commissioner of such
THE action and specify the names and addresses of
the directors and officers of the credit union who will conduct the
dissolution and liquidation of the credit union. Upon such
THE favorable
vote, the credit union shall cease to do business except for the collection of
payments on outstanding loans or other obligations due
TO the credit union.
PAGE 9-HOUSE BILL 24-1381 SECTION 17. In Colorado Revised Statutes, 11-40-105, amend (2)
as follows:
11-40-105. File annual reports. (2) If any AN association fails to
file such A report AS DESCRIBED IN SUBSECTION (1) OF THIS SECTION, or if
any such THE report is delayed or withheld beyond the day when the report
should be so filed, such THE association shall forfeit and pay the sum of ten
dollars for every day such THE report is withheld or delayed or not
completed, and any member of any association or any party in interest may
maintain an action in his or her
THE MEMBER'S OR OTHER PARTY'S own name
to receive such THE penalty, and the penalty shall be paid to the state
treasurer.
SECTION 18. In Colorado Revised Statutes, amend 11-40-109 as
follows:
11-40-109. Suits interfering with business of association. No AN
order, A judgment, or A decree providing for an accounting of, or enjoining,
restraining, or interfering with the transaction of, the business of any
savings and loan association organized or doing business under the
provisions of articles 40 to 46 of this title TITLE 11 shall NOT be made or
granted otherwise than upon the application of the attorney general, after his
or her THE ATTORNEY GENERAL'S approval of a written request therefor by
the commissioner
FOR THE ORDER, JUDGMENT, OR DECREE, except in an
action by a judgment creditor or in proceedings supplementary to execution.
SECTION 19. In Colorado Revised Statutes, 11-41-107, amend (2)
introductory portion and (3) as follows:
11-41-107. Documents deposited with commissioner. (2) Upon
receipt of such
THE documents DESCRIBED IN SUBSECTION (1) OF THIS
SECTION
, the commissioner shall immediately examine and investigate intothe advisability of issuing a certificate of approval for such THE association,
and he THE COMMISSIONER shall issue such A certificate of approval if, upon
examination, the commissioner finds:
(3) If the commissioner's finding is adverse to the association in any
of the particulars recited in COMMISSIONER FINDS THAT THE ASSOCIATION
DOES NOT MEET ANY OF THE REQUIREMENTS OF
subsection (2) of this
section, he
THE COMMISSIONER shall not issue a certificate of approval.
PAGE 10-HOUSE BILL 24-1381 SECTION 20. In Colorado Revised Statutes, amend 11-41-108 as
follows:
11-41-108. Refusal of certificate - appeal. If the commissioner,
after an examination, believes for any reason that a certificate of approval
should not be issued and refuses to issue the same, he
A CERTIFICATE OF
APPROVAL
, THE COMMISSIONER shall file a written statement with a boardconsisting of the governor, the attorney general, and the state treasurer, of
the state of Colorado giving in detail his THE COMMISSIONER'S reasons for
such THE refusal. After notice to all concerned and after a hearing, said
board THE GOVERNOR, ATTORNEY GENERAL, AND STATE TREASURER may
order the commissioner to issue the certificate of approval or may approve
his
THE COMMISSIONER'S action in refusing a certificate of approval.
SECTION 21. In Colorado Revised Statutes, 11-41-109, amend (1)
introductory portion, (1)(a), (1)(c), and (2) as follows:
11-41-109. Certificate of approval - where articles filed. (1) If
the commissioner finds affirmatively for the association upon all the matters
set forth in section 11-41-107, he
THE COMMISSIONER shall issue a
certificate of approval under his hand and seal, executed in duplicate within
sixty days thereafter, in AFTER THE FINDING, which shall be recited
CERTIFICATE RECITES in substance the following:
(a) That the articles of incorporation and bylaws have been filed in
his THE COMMISSIONER'S office;
(c) That he THE COMMISSIONER has approved the same ARTICLES OF
INCORPORATION AND BYLAWS
.
(2) The commissioner shall attach one of said
THE certificates to
each copy of the articles of incorporation, and shall retain one copy of the
articles of incorporation and bylaws in his THE COMMISSIONER'S office, and
return the other copy of the articles and bylaws, with the certificate of
approval attached, thereto,
to the association. Upon receipt from the
commissioner of the articles of incorporation, the association shall file the
same ARTICLES OF INCORPORATION with the secretary of state, and certified
copies of the articles of incorporation shall be filed by the association in the
office of the county clerk and recorder of each county in this state in which
said
THE association may own real estate. The failure to file a certified copy
PAGE 11-HOUSE BILL 24-1381 in the office of the clerk and recorder of any county in this state shall DOES
not affect the validity of the incorporation of any association which THAT
has made its filing with the secretary of state and has obtained a certificate
of approval. In the event a true copy of such THE articles of incorporation
is presented to the secretary of state with the request that the same ARTICLES
OF INCORPORATION
be certified, he
THE SECRETARY OF STATE shall certify
the same ARTICLES OF INCORPORATION for a fee which shall be IN AN
AMOUNT THAT IS
determined and collected pursuant to section 24-21-104
(3). C.R.S., which
THE certificate shall MUST contain, in addition to the
usual statement, a statement that the same ATTACHED COPY is a true copy of
the original articles of incorporation on file in his THE SECRETARY OF
STATE
'S office and a statement as to the date of the filing of such
THE
articles of incorporation. When articles of incorporation or amendments
thereto TO ARTICLES OF INCORPORATION have been filed in the office of the
secretary of state, he THE SECRETARY OF STATE shall record and carefully
preserve the same THEM in his THE SECRETARY OF STATE'S office, and a
copy thereof OF THE ARTICLES OF INCORPORATION OR AMENDMENTS , duly
certified by the secretary of state under the great seal of the state of
Colorado, shall be
IS evidence of the existence of such THE association and
prima facie evidence of the contents of said THE articles of incorporation or
such amendments. thereto.
SECTION 22. In Colorado Revised Statutes, 11-41-114, amend (1)
introductory portion and (1)(i)(III) as follows:
11-41-114. How funds invested. (1) Any A savings and loan
association may invest any portion of its funds in any of the following:
(i) (III) No AN association organized under the laws of this state
shall
NOT acquire the capital stock, obligations, or other securities of any
such
corporation DESCRIBED IN SUBSECTION (1)(i)(I) OF THIS SECTION until
there THE CORPORATION has been filed in the office of the commissioner a
statement by such corporation agreeing to permit and pay all costs of such
ANY examinations or audits of the corporation by the commissioner as he
THAT THE COMMISSIONER deems necessary in order to confirm compliance
with the provisions of this paragraph (i) SUBSECTION (1)(i).
SECTION 23. In Colorado Revised Statutes, 11-41-117, amend (2)
as follows:
PAGE 12-HOUSE BILL 24-1381 11-41-117. Insurance of shares. (2) The commissioner, in
connection with all such insured associations, shall furnish said THE
FEDERAL DEPOSIT
insurance corporation with reports of THE ISSUANCE OF
examination, orders, and requirements issued in connection therewithRELATING TO INSURED ASSOCIATIONS and other information coming to his
THAT COMES TO THE COMMISSIONER 'S attention bearing on AND CONCERNS
the financial condition and administration and OF INSURED ASSOCIATIONS.
T
HE COMMISSIONER may collaborate with said
THE FEDERAL DEPOSIT
INSURANCE
corporation in any merger, reorganization, dissolution,
liquidation, or examination and audit of any such
insured association.
SECTION 24. In Colorado Revised Statutes, 11-41-117.5, amend
(4) as follows:
11-41-117.5. Insurance of obligations. (4) The commissioner or
his duly designated representative THE COMMISSIONER'S DESIGNEE may
investigate the affairs and examine the books, accounts, records, and files
of the insurer at such
intervals as THAT the commissioner deems prudent,
but not less than once a year, and shall have free access for such purposes.
Costs of such investigations and examinations shall be paid by the insurer.
If any such investigation or examination reveals that the insurer is not
conducting its affairs in accordance with this section or that the insurer is
not actuarially sound or is impaired and may be unable to fulfill its
obligations, the commissioner may exercise any powers available under
article 44 of this title
TITLE 11 until such time as compliance is restored or
the impairment is terminated.
SECTION 25. In Colorado Revised Statutes, 11-41-119, amend (5)
as follows:
11-41-119. Loans to members and other loans. (5) (a) Loans A
LOAN secured by first lien trust deeds or mortgages A FIRST-LIEN TRUST
DEED OR MORTGAGE
upon improved real estate shall not be made until:
(I) A signed application for such
THE loan has been submitted; nor
until
(II) A signed appraisal has been submitted; nor until AND
(III) The loan has been approved by the board of directors or by a
PAGE 13-HOUSE BILL 24-1381 committee authorized by the board of directors.
(b) Appraisals may be made by any two of the association's
directors, officers, employees, or attorneys or by an independent appraiser
who is not a director, officer, employee, or attorney of the association; but
no such EXCEPT THAT AN officer, A director, AN employee, or AN attorney
shall
NOT act as an appraiser nor
OR act on any committee approving a loan
in which he IF THE OFFICER, DIRECTOR, EMPLOYEE, OR ATTORNEY has an
interest either in EITHER the property tendered as security or in the sale of
the property.
(c) The association shall furnish to each borrower, Upon the closing
of the loan,
THE ASSOCIATION SHALL FURNISH TO EACH BORROWER a loan
settlement statement indicating
THAT INDICATES in detail the charges or fees
such THE borrower has paid or obligated himself THE BORROWER to pay to
the association or to any other person in connection with such THE loan, and
THE ASSOCIATION SHALL RETAIN a copy of such THE statement. shall be
retained in the records of the association.
SECTION 26. In Colorado Revised Statutes, 11-41-121, amend
(1.5)(c), (3), (4), and (6); and repeal (5) as follows:
11-41-121. Merger, consolidation, and transfer.
(1.5) (c) Whenever a foreign association which THAT meets the criteria
established by this subsection (1.5) proposes to merge with a domestic
association, the foreign association shall make an application for prior
approval to the commissioner in such
THE form and with such THE
information that the commissioner may require, and such THE application
shall MUST be accompanied by a nonrefundable filing fee in such AN
amount as determined by the commissioner. Upon receipt of a properly
submitted application for merger, the commissioner shall proceed to
investigate the application in accordance with the provisions of
this section.
The commissioner shall not grant approval of the merger until he THE
COMMISSIONER
is satisfied that the criteria imposed by this section have
been met and that the merger is not contrary to the public interest.
(3) Copies of the proposed agreement of merger, signed by the
president or vice president of such
THE association and verified by his THE
PRESIDENT
'S OR VICE PRESIDENT'S affidavit and attested by the secretary or
assistant secretary thereof
OF THE ASSOCIATION, with the seal of the
PAGE 14-HOUSE BILL 24-1381 association thereunto affixed, shall be submitted together with a fee in the
amount established by the commissioner to the commissioner for his THE
COMMISSIONER
'S approval or disapproval, and he
THE COMMISSIONER shall
cause a certificate of approval or disapproval to be attached to said THE
copies of the proposed agreement, one copy to be filed in the division and one returned to each of the associations.
(4) If approved by
the commissioner such approved APPROVES AN
AGREEMENT OF MERGER
, THE agreement shall be presented to the members
of each of the merging associations at special meetings called for the
purpose of considering and voting upon such approved
THE agreement; but,
in the case of associations having permanent stock, only the holders of the
permanent stock shall be
ARE entitled to any notice other than the published
notice of such THE special meeting or to vote upon the agreement of merger.
The complete agreement of merger, as adopted by the boards of directors
and approved by the commissioner, shall be furnished
TO each member
entitled to vote on such THE merger at the time THAT notice of such THE
meetings, as required by section 11-41-123, is given. If at such meetings A
MEETING
two-thirds of all votes of the members present in person or by
proxy and entitled to vote on such
THE merger are in favor of such THE
approved agreement, the associations may proceed to merge. in accordance
therewith. The proceedings of such THE meetings shall be submitted to the
commissioner for his THE COMMISSIONER'S approval in the same manner as
required for the submission of the agreement by the boards of directors.
Unless the agreement of merger fixes a later effective date, thereof,
the
effective date of
THE merger shall be
IS the date upon which the
commissioner accepts for filing the certified copies of the proceedings of
the meetings of members adopting the approved agreement of merger.
(5) In the event any association involved in a proposed merger is a
federal savings and loan association, the commissioner shall transmit to the
federal office of thrift supervision or its successor, a copy of the proposed
agreement of merger and shall not approve the agreement of merger unless
and until he or she has been advised in writing by the federal office of thrift
supervision or its successor that said office has no objection to the
agreement.
(6) (a) No such A transfer shall DOES NOT:
(I) Prejudice the right of any creditor of any such association to have
PAGE 15-HOUSE BILL 24-1381 payment of his THE CREDITOR'S debt out of the assets and property thereof,
nor shall any creditor be thereby deprived of or prejudiced OF THE
ASSOCIATION
; OR
(II) DEPRIVE ANY CREDITOR OF, OR CREATE ANY PREJUDICE AGAINST
ANY CREDITOR
in, any right of action then existing against the officers or
directors of said
AN association for any neglect or misconduct. and the
(b) A reorganized association shall be IS liable for all obligations to
members of the associations existing prior to such A consolidation.
SECTION 27. In Colorado Revised Statutes, 11-41-123, amend
(2), (4), and (5) as follows:
11-41-123. Directors and meetings. (2) Public notice of the time
and place of holding such elections DESCRIBED IN SUBSECTION (1) OF THIS
SECTION
and also of all special meetings of the members shall be published
at least once, not more than thirty days nor less than ten days prior toBEFORE the date fixed for said OF EACH meeting, in a newspaper of general
circulation printed in the county where the principal office of said THE
corporation is located, and, if there is no such newspaper, then in a newspaper printed in an adjoining county, and, with respect to any special meeting or any annual meeting to be held at a time or place other than as specified in the articles of incorporation or bylaws of the association, by delivering personally to each member or depositing in the post office at least thirty days before such
THE meeting a copy of said THE notice,
addressed to each member entitled to vote, thereat, with INCLUDING the
signature of the president or secretary, printed thereon, stating the time and,
in case of special meetings, the objects of said THE meeting. and no
Business shall NOT be transacted at any special meeting except such as shall
be BUSINESS THAT IS mentioned in said THE notice. If any member fails to
furnish the secretary with his THE MEMBER'S correct post-office address, he
shall THE MEMBER IS not be entitled to separate notice.
(4) Members who are entitled to vote may vote either in person or
by proxy at such meetings. Any number of members present in person or by
proxy at a regular or special meeting of the members shall constitute
CONSTITUTES a quorum unless otherwise specifically provided in articles 40
to 46 of this title TITLE 11. If a majority of the votes represented at any
annual or special meeting are in favor of adjournment, such THE meeting
PAGE 16-HOUSE BILL 24-1381 may be adjourned for a period not to exceed sixty days at one adjournment.
Each member entitled to vote shall be permitted to MAY cast, in person or
by proxy, one vote for each one hundred dollars, or fraction thereof, of the
total certificate value of all his
THE MEMBER'S shares and stock. A
borrowing member holding a membership certificate shall be permitted
MAY, as a borrower, to cast one vote and has such voting right in all cases
where articles 40 to 46 of this title TITLE 11 give such right to shareholders.
(5) A majority of all votes cast at any meeting of members shall
determine DETERMINES any question unless otherwise specifically provided.
The members who are entitled to vote at any meeting of the members shall
be those of record on the books of the association at the end of the calendar
month next preceding the date of the meeting of members, except those who
have ceased to be members. In balloting for directors, members may vote
for as many directors as are to be elected, or, in case the certificate of
incorporation of the association permits cumulative voting, each member
may cumulate his
THE MEMBER'S votes and give one candidate as many
votes as the number of directors multiplied by the number of his THE
MEMBER
'S votes or distribute them on the same principle among as many
candidates as he
THE MEMBER may desire, and the person having the highest
number of votes in consecutive order shall be declared IS elected. By the
unanimous vote of all the members represented at such THE meeting, the
secretary of the meeting may be authorized and instructed to cast one ballot
for one or more of all the directors to be elected.
SECTION 28. In Colorado Revised Statutes, amend 11-41-126 as
follows:
11-41-126. Bonds of officers. Every officer, employee, and agent
handling or having custody or charge of funds or securities belonging to a
savings and loan association, before entering upon the discharge of his
THE
OFFICER
'S, EMPLOYEE'S, OR AGENT'S duties, shall give a good and sufficient
bond in such
THE sum as may be fixed by the board of directors of any such
association. Such THE bond shall MUST be in such THE form and provide
such coverage as the commissioner may direct and shall MUST be made by
a surety corporation authorized to do business in this state. The amount of
such
THE bond as to each person shall be IS subject to the approval of the
commissioner. In lieu of individual bonds, a blanket bond covering all
active officers, agents, and employees of such
AN association may be
executed, subject to approval by the commissioner. Every such bond shall
PAGE 17-HOUSE BILL 24-1381 be IS in force until ten days after notice IS PROVIDED to such THE
commissioner that the same BOND is to be canceled.
SECTION 29. In Colorado Revised Statutes, amend 11-41-128 as
follows:
11-41-128. Acknowledgments. No A notary public or other public
officer qualified to take acknowledgments or proof of written instruments
shall
NOT be disqualified from taking the acknowledgment or proof of an
instrument in writing in which a savings and loan association is interested
by reason of his
THE NOTARY PUBLIC'S OR OTHER PUBLIC OFFICER 'S
employment by, or his THE NOTARY PUBLIC OR OTHER PUBLIC OFFICER being
a member or officer of, the savings and loan association interested in such
THE instrument.
SECTION 30. In Colorado Revised Statutes, 11-41-129, amend (4)
as follows:
11-41-129. Amendment of articles of incorporation. (4) A
certificate setting forth such AN amendment and the adoption thereof OF THE
AMENDMENT
, signed by the president or vice president of such
THE
association, verified by his THE PRESIDENT'S OR VICE PRESIDENT'S affidavit,
and attested by the secretary or assistant secretary thereof OF THE
ASSOCIATION
, with the seal of the association thereunto
affixed, shall be
submitted together TO THE COMMISSIONER with the A fee IN AN AMOUNT
established by the commissioner. to the commissioner for his approval or
disapproval, and, If he THE COMMISSIONER approves he THE PROPOSED
AMENDMENT
, THE COMMISSIONER shall cause
ATTACH a certificate of
approval to be attached to said THE proposed amendment, and then the same
AMENDMENT shall be filed in the same manner as THE articles of
incorporation. and Thereafter, said THE amendment shall be IS in full force
and effect, to the same extent, except as provided in section 11-41-130.5,
as if the same AMENDMENT had been included in the original articles of
incorporation. No AN amendment to the articles of incorporation shall NOT
be filed in the office of the secretary of state of the state of Colorado or
received by the secretary of state unless a certificate of approval by the
commissioner is attached thereto
TO THE AMENDMENT.
SECTION 31. In Colorado Revised Statutes, 11-41-130, amend
(1), (2), and (6) as follows:
PAGE 18-HOUSE BILL 24-1381 11-41-130. Reorganization. (1) The board of directors of any AN
association at a meeting called for that purpose, may adopt a plan of
reorganization of the association
AT A MEETING CALLED FOR THAT PURPOSE.
Two copies of the proposed plan of reorganization, signed by the president
or vice president of such
THE association, verified by his THE PRESIDENT'S
OR VICE PRESIDENT
'S affidavit, and attested by the secretary or assistant
secretary thereof
OF THE ASSOCIATION, with the seal of the association
thereunto affixed, shall be submitted to the commissioner for his THE
COMMISSIONER
'S approval, or disapproval,
and he THE COMMISSIONER shall
cause ATTACH a certificate of approval or disapproval to be attached to said
THE proposed plan, one copy to be filed in the division and one returned to
the association. If
A PLAN IS approved by the commissioner, such approvedplan IT shall be presented to the members at a special meeting called for the
purpose of considering and voting upon such approved THE plan. The
complete plan of reorganization, as adopted by the board of directors and
approved by the commissioner, shall be furnished
TO each member at the
time notice of such
THE meeting IS GIVEN, as required by section 11-41-123.
is given. If at such THE meeting two-thirds of all votes of the members
present in person or by proxy are in favor of such THE approved plan, the
association may proceed to reorganize. in accordance therewith.
(2) The proceedings of such A meeting TO APPROVE A
REORGANIZATION PLAN
shall be submitted to the commissioner for his
THE
COMMISSIONER
'S approval in the same manner as required for the
submission of the plan by the board of directors. Unless the plan of
reorganization fixes a later effective date, thereof,
the effective date of
reorganization shall be IS the date upon which the commissioner accepts for
filing the certified copies of the proceedings of the meetings of members
adopting the approved plan of reorganization.
(6) The reorganization of such
AN association shall DOES not
prejudice the right of any creditor of any such THE association to have
payment of his THE CREDITOR'S debt out of the assets and property thereof
OF THE ASSOCIATION, nor shall DOES THE REORGANIZATION OF AN
ASSOCIATION DEPRIVE
any creditor be thereby deprived
of, or prejudiced
PREJUDICE ANY CREDITOR in, any right of action then existing against the
officers or directors of said THE association for any neglect or misconduct.
All obligations to any such prior association shall inure to the benefit of the
reorganized association and shall be ARE enforceable by it and in its name,
and demands, claims, and rights of action against any such PRIOR
PAGE 19-HOUSE BILL 24-1381 association may be enforced against it as fully and completely as they might
have been enforced theretofore; and BEFORE THE ASSOCIATION 'S
REORGANIZATION
. All deeds, notes, mortgages, contracts, judgments,
transactions, and proceedings whatsoever theretofore
made, received,
entered into, carried on, or done by such AN association before such ITS
reorganization shall be as ARE good, valid, and effectual in law as though
such THE association had never been reorganized.
SECTION 32. In Colorado Revised Statutes, 11-41-130.5, amend
(1), (3)(a)(I), and (3)(b) as follows:
11-41-130.5. Cessation of business as an association -
amendment of articles. (1) Notwithstanding any provision of this article
ARTICLE 41 to the contrary, in connection with the sale of all or a substantial
part of its assets, the board of directors of any savings and loan association
may propose an amendment to its articles of incorporation to amend the
objects and purposes to conform to those authorized in the "Colorado
Business Corporation Act", articles 101 to 117 of title 7, C.R.S.,
and to
make such other amendments authorized by and not inconsistent with the
provisions of article 110 of title 7. C.R.S. Such Proposed amendments shall
be submitted to the members or, if the savings and loan association has
permanent stock, to the stockholders of said
THE association for their
approval. Upon approval, said PROPOSED amendments shall be submitted
to the commissioner, together with a plan pursuant to subsection (2) of this
section, for his THE COMMISSIONER'S approval.
(3) (a) The commissioner shall approve a plan only if:
(I) He
THE COMMISSIONER determines that an association has paid
or has made provision through an assumption agreement or otherwise for
its known and unclaimed liabilities to its depositors and account holders;
(b) In approving a plan, the commissioner may impose such
terms
and conditions as he THE COMMISSIONER deems necessary to protect the
depositors, account holders, stockholders, members, and creditors of the
savings and loan association.
SECTION 33. In Colorado Revised Statutes, 11-41-131, amend
(1), (3), and (4) as follows:
PAGE 20-HOUSE BILL 24-1381 11-41-131. Dissolution. (1) Any A domestic association may elect
to abandon its certificate of authority, liquidate its affairs, and dissolve as
provided in this section. The affirmative vote of at least a majority of the
BOARD OF directors must be cast in favor of such proposal A PROPOSED
DISSOLUTION
at a special meeting thereof
OF THE BOARD. A certified copy
of such action shall THE VOTE MUST be furnished to the commissioner, who
shall forthwith PROMPTLY examine said THE association, and, if he THE
COMMISSIONER
determines that such
THE association is solvent and that it
is to IN the best interests of the members that such liquidation be
accomplished in the manner provided in ACCORDING TO this section, he THE
COMMISSIONER
shall certify his
THE COMMISSIONER'S approval thereto.
Upon the granting of such OF THE LIQUIDATION . AFTER THE
COMMISSIONER
'S approval, a special meeting of all members entitled to vote
shall be called in the manner provided by
PURSUANT TO section 11-41-123.
If a majority vote of all such members of the association is cast in favor of
the proposal to liquidate and ultimately dissolve such
THE association under
the provisions of this section, such THE proposal shall be IS deemed
adopted. A certified copy of all proceedings taken prior to and at such THE
meeting shall be filed with the commissioner, who shall determine whether or not such
THE proceedings have been conducted in accordance with law.
If the commissioner finds that such THE proceedings are legal and proper,
he THE COMMISSIONER shall certify his THE COMMISSIONER'S approval
thereon OF THE PROCEEDINGS and authorize said THE association to proceed
with the liquidation in the manner provided in this section.
(3) The association, During the liquidation of the ITS assets, of the
AN association shall be IS subject to the supervision of the commissioner
and shall pay such THE fees and assessments as are provided for REQUIRED
in articles 40 to 46 of this title TITLE 11 in the case of active associations
and shall report the progress of such THE liquidation to the commissioner
as he THE COMMISSIONER may require. Upon completion of liquidation, a
final report and accounting of the affairs of the association shall be made
to the commissioner. Upon the approval of such
THE report by the
commissioner, the board of directors, without the necessity of further action
by the members of the association, shall proceed to dissolve such
THE
association in the manner provided by law in the case of general corporations.
(4) Nothing in this section shall prejudice the rights
PREJUDICES THE
RIGHT
of the commissioner to take possession of any association under the
PAGE 21-HOUSE BILL 24-1381 authority vested in him THE COMMISSIONER by the provisions of section
11-44-110, upon determining that such THE procedure is to IN the best
interest of the members.
SECTION 34. In Colorado Revised Statutes, 11-41-132, amend (3)
as follows:
11-41-132. Escheat proceedings. (3) After thirty days from the
date of the last publication, the commissioner shall pay to the state treasurer
any such
liquidating dividends in his THE COMMISSIONER'S possession, less
the costs of publication and mailing, and shall file with the state treasurer
the affidavit of publication by the publisher and the affidavit of mailing by
the commissioner, showing the dates of such
THE publications and mailing.
The state shall be answerable for such funds THE MONEY, without interest,
anytime within twenty-one years after the same have MONEY HAS been paid
into the treasury, to such persons as shall be THAT ARE legally entitled
thereto TO THE MONEY. After the lapse of twenty-one years from the time
any such moneys have THE MONEY HAS been paid into the state treasury, IF
no claim therefor having FOR THE MONEY HAS been made and established
by any person entitled thereto, said moneys shall become TO THE MONEY,
THE MONEY BECOMES the property of the state and shall be transferred to the
general fund.
SECTION 35. In Colorado Revised Statutes, 11-41-133, amend (3)
introductory portion and (6)(c) as follows:
11-41-133. Acquisition of majority control over an existing
association - definitions. (3) After receipt of an application, the
commissioner shall make an investigation and shall issue the certificate of
approval only after he
THE COMMISSIONER has determined:
(6) (c) Whenever IF a foreign association which THAT meets the
criteria established by this subsection (6) proposes to acquire control of a
domestic association, the foreign association shall make an application for
prior approval to the commissioner in such
THE form and with such
INCLUDING ANY information that the commissioner shall require REQUIRES,
and such THE application shall MUST be accompanied by a nonrefundable
filing fee in such AN amount as determined by the commissioner. Upon
receipt of a properly submitted application to acquire control of a domestic
association, the commissioner shall proceed to investigate the application
PAGE 22-HOUSE BILL 24-1381 in accordance with the provisions of this section. The commissioner shall
not grant approval of the merger until he THE COMMISSIONER is satisfied
that the criteria imposed by this section have been met and that the
acquisition is not contrary to the public interest.
SECTION 36. In Colorado Revised Statutes, 11-42-108, amend (1)
as follows:
11-42-108. Assessment to restore impaired permanent stock.
(1) Stockholders, after their stock has been fully paid, are not liable to
creditors or for assessments upon their stock issued on or after July 1, 1981,
except as provided by this section. If the commissioner, as a result of any
examination or from any report made to him
THE COMMISSIONER, finds that
the permanent stock of any AN association is impaired, he THE
COMMISSIONER
shall notify the association that such
THE impairment exists.
In the event the amount of the impairment, as determined by the
commissioner, is questioned by the association, then, upon application filed
within ten days, the value of the assets in question shall be determined by
appraisals made by independent appraisers acceptable to the commissioner
and the association.
SECTION 37. In Colorado Revised Statutes, 11-42-109, amend (1)
as follows:
11-42-109. Sale of delinquent stock. (1) If any
A stockholder
refuses or neglects to pay the assessment specified in such A notice
PROVIDED PURSUANT TO SECTION 11-42-108 (2) within sixty days from
AFTER the date of mailing, the directors of such THE association shall have
the right to MAY sell to the highest bidder at public auction any part or all
of the stock necessary to pay the assessment of such THE stockholder, after
giving a previous notice of such THE sale for ten days in a newspaper of
general circulation published in the county where the principal office of
such
THE association in this state is located. and A copy of such THE notice
of sale shall also be served on such THE stockholder by mailing a copy of
the notice to his THE STOCKHOLDER'S last known address ten days before the
day fixed for such THE sale. or such THE stock may ALSO be sold at a
private sale and without public notice; but EXCEPT THAT, before making
such A private sale, thereof, THE BOARD OF DIRECTORS SHALL OBTAIN an
offer in writing shall first be obtained and SERVE a copy thereof served OF
THE OFFER
upon the owner of record of the stock to be sold
by mailing a
PAGE 23-HOUSE BILL 24-1381 copy of such THE offer to his THE OWNER'S last known address. and, If, after
service of such THE offer, such THE owner still refuses or neglects to pay
such THE assessment within FOR thirty days, from the time of the service of
such offer, the directors may accept the offer and sell such THE stock to the
person making such THE offer or to any other person making a larger AN
offer than the IN A LARGER amount. named in the offer submitted to the
stockholder, but such stock in no event shall be sold THE BOARD OF
DIRECTORS SHALL NOT SELL THE STOCK
for less than the amount of such
THE
assessment so called for and the expense of the sale.
SECTION 38. In Colorado Revised Statutes, 11-42-112, amend (2)
and (3) as follows:
11-42-112. Requirements for sale of permanent stock. (2) If he
THE COMMISSIONER finds that the proposed issue is such as OF STOCK will
not mislead the public as to the nature of the investment or will not work a
fraud upon the purchaser thereof
OF THE STOCK, the commissioner shall
issue to the association a permit authorizing it to issue and dispose of its
stock in such
THE amounts as PROVIDED BY the commissioner may in such
permit provide IN THE PERMIT; otherwise, he THE COMMISSIONER shall deny
the application and notify the association in writing of his THE
COMMISSIONER
'S decision.
(3) Every permit shall recite
MUST STATE in bold type that the
issuance thereof OF THE PERMIT is permissive only and does not constitute
a recommendation or endorsement of the stock permitted to be issued. The
commissioner may impose conditions requiring
REQUIRE the impoundment
of the proceeds from the sale of such stock, and limiting LIMIT the expense
in connection with the sale thereof OF STOCK, and such IMPOSE ANY other
conditions as he may deem THE COMMISSIONER DEEMS reasonable and
necessary or advisable to insure the disposition of ENSURE THAT the
proceeds from the sale of such stock ARE DISPOSED in the manner and for
the purposes provided in such THE permit. The commissioner from time to
time may amend, alter, or revoke any permit issued by him THE
COMMISSIONER
or temporarily suspend the rights of such
AN association
under such ITS permit. The commissioner has the power to MAY establish
such rules and regulations as may be THAT ARE reasonable or necessary to
carry out the purposes and provisions of this section.
SECTION 39. In Colorado Revised Statutes, 11-42-115, amend (1)
PAGE 24-HOUSE BILL 24-1381 as follows:
11-42-115. Power to issue shares to minors or in trust. (1) Every
AN association has the power to MAY issue stock or shares to a minor of any
age and either sex and receive payments thereon ON THE STOCK OR SHARES
from, by, or for the minor. He shall be entitled to A MINOR MAY withdraw,
transfer, or pledge any such shares owned by him THE MINOR and to receive
from such THE association any dividends or other moneys at any time
becoming MONEY THAT BECOMES due thereon ON THE SHARES in the same
manner and subject to the same conditions as an adult, and his THE MINOR'S
receipt or acquittance therefor shall constitute OF SUCH MONEY CONSTITUTES
a valid release and discharge to the association for the payment of such
moneys THE MONEY. The dealing of an association with a minor shall have
HAS the same effect upon the association's liability as if the minor were of
full legal capacity until his UNLESS THE MINOR'S guardian or conservator
files with the association a certified copy of the order of a Colorado court
having jurisdiction appointing the guardian or conservator and directing
otherwise.
SECTION 40. In Colorado Revised Statutes, amend 11-42-123 as
follows:
11-42-123. Matured shares. If, at the time shares in a savings and
loan association have matured, the association has withdrawal notices on
file to such an extent that the funds of the association, applicable to
withdrawals, are not sufficient to pay off
all shareholders desiring to
withdraw, as well as shares which THAT have matured and are unpaid, and
the holder of the matured shares desires to withdraw, he THE HOLDER OF THE
MATURED SHARES
shall file a notice of intention to withdraw. andThereafter, be THE HOLDER OF THE MATURED SHARES IS subject to all the
rights and liabilities of articles 40 to 46 of this title TITLE 11 governing
withdrawing shareholders; except that he shall be THE HOLDER OF THE
MATURED SHARES IS
entitled to the full amount of any dividends declared
on like shares during the time he
THE HOLDER OF THE MATURED SHARES has
a withdrawal notice on file on
THE same.
SECTION 41. In Colorado Revised Statutes, 11-44-102, amend (3)
as follows:
11-44-102. Commissioner - duties - employees. (3) The deputy
PAGE 25-HOUSE BILL 24-1381 commissioner, the secretary, and all other employees of the division shall
be ARE under the direct supervision of the commissioner. who shall have
full power and control over such employees. Neither the commissioner nor
any officer or employee of the division shall be IS personally liable for any
acts done ACT PERFORMED in good faith IF THE COMMISSIONER, OFFICER, OR
EMPLOYEE PERFORMED THE ACT
while in the performance of his
THE
COMMISSIONER
'S, OFFICER'S, OR EMPLOYEE'S duties as prescribed by law.
SECTION 42. In Colorado Revised Statutes, amend 11-44-103 as
follows:
11-44-103. Powers of commissioner. The commissioner has
general supervision and control over all domestic and foreign savings and
loan associations doing business in this state and has full power to
MAY
grant, refuse, or revoke a permit or license to any association to do business in this state when such
THE association is not conducting its business in
conformity with the laws of the state or is conducting its business in such
an unsafe manner as to render THAT RENDERS its further operations
hazardous to the public or any of its THE ASSOCIATION'S shareholders. All
articles of incorporation and amendments thereto TO THE ARTICLES, all
bylaws and amendments thereto TO THE BYLAWS, and all certificates of
stock and shares of associations subject to articles 40 to 46 of this title TITLE
11 shall be submitted to said THE commissioner for his THE
COMMISSIONER
'S approval or disapproval, and said
THE commissioner has
the authority to MAY approve, modify, or reject any such articles of
incorporation or amendments, thereto, bylaws or amendments, thereto, and
OR certificates of stock or shares. The commissioner has full power and
authority to MAY prescribe all necessary and proper rules and regulations for
the conduct and operation of savings and loan associations in this state and
shall prescribe the manner in which the books and records of associations
doing business in this state shall be
ARE kept.
SECTION 43. In Colorado Revised Statutes, amend 11-44-103.5
as follows:
11-44-103.5. Record retention by the commissioner. The
commissioner shall retain records pursuant to part 1 of article 80 of title 24
C.R.S.,
and may, in his or her THE COMMISSIONER'S discretion, destroy
records pursuant to said part 1.
PAGE 26-HOUSE BILL 24-1381 SECTION 44. In Colorado Revised Statutes, amend 11-44-104 as
follows:
11-44-104. Commissioner may delegate powers. The
commissioner may delegate such of his THE COMMISSIONER'S powers and
authority to his THE COMMISSIONER'S deputies as he may deem THE
COMMISSIONER DEEMS
necessary for proper administration of the division
and may designate appropriate titles for his
THE COMMISSIONER'S deputies
and any of his THE COMMISSIONER'S employees. Any such delegation or
designation made may be rescinded by the commissioner at any time. All
WRITTEN RECORDS OF such actions shall be in writing and of record
RETAINED in the files of the division. The acts of deputies performing such
WHO HAVE delegated powers and authority shall be of HAVE the same legal
effect as if
THE ACTS WERE performed personally by the commissioner.
SECTION 45. In Colorado Revised Statutes, amend 11-44-105 as
follows:
11-44-105. Commissioner may institute suits. The commissioner
shall report to the attorney general, and he
THE ATTORNEY GENERAL shall
institute and prosecute suits and actions to enjoin violations of articles 40
to 46 of this title
TITLE 11 or violations of orders or decisions of the
commissioner rendered pursuant to said articles and to enforce any civil
penalties provided by said articles. The commissioner shall notify the proper
district attorney of any violation of the provisions of
articles 40 to 46 of this
title which TITLE 11 THAT constitutes a felony or misdemeanor, and such
THE district attorney shall forthwith PROMPTLY prosecute the person charged
with such THE offense. Upon THE failure or refusal of the district attorney
to so prosecute, it shall be the duty of the attorney general to conduct such
prosecution SHALL PROSECUTE THE MATTER .
SECTION 46. In Colorado Revised Statutes, amend 11-44-106 as
follows:
11-44-106. Issuance of subpoenas. (1) The commissioner has the
power to MAY:
(a) Issue subpoenas and require attendance of any and all officers,
directors, agents, salesmen, collectors, and employees OFFICER, DIRECTOR,
AGENT, SALESPERSON, COLLECTOR, OR EMPLOYEE of any association and
PAGE 27-HOUSE BILL 24-1381 such ANY other witnesses as he THAT THE COMMISSIONER may deem
necessary in relation to its THE ASSOCIATION'S affairs, transactions, and
conditions; and may
(b) Require such witnesses to appear and answer such questions as
THAT THE COMMISSIONER may be put to them; by the commissioner, and
may
(c) Require such witnesses to produce such books, papers, or
documents in their possession. as may be required by the commissioner.
(2) Upon application of the commissioner, any person served with
a subpoena issued by him THE COMMISSIONER may be required, by order of
the district court of the county where the association has its principal office,
to:
(a) Appear and answer such
questions as THAT THE COMMISSIONER
may be put to him by the commissioner THE PERSON; and be required to
(b) Produce such books, papers, or documents in his THE PERSON'S
possession as may be required by THAT the commissioner MAY REQUIRE.
SECTION 47. In Colorado Revised Statutes, 11-44-106.5, amend
(2)(b) as follows:
11-44-106.5. Suspension or removal of directors, officers, or
employees - penalty. (2) (b) If the commissioner determines that a specific
case involves extraordinary circumstances which THAT require immediate
action, he THE COMMISSIONER may suspend or remove a person under
subsection (1) of this section without notice or a hearing, but he THE
COMMISSIONER
shall conduct a hearing under section 24-4-105 C.R.S.,within thirty days after such THE suspension or removal.
SECTION 48. In Colorado Revised Statutes, 11-44-109, amend
(1), (1.5), (2), (3), and (4) as follows:
11-44-109. Examination by commissioner - procedure - penalty.
(1) The commissioner, in person or by his deputy or one or more of his or
her employees, At such intervals as the commissioner shall determine
DETERMINES to be necessary or desirable in order to ascertain that each
PAGE 28-HOUSE BILL 24-1381 association is conducting its business in a safe and authorized manner, THE
COMMISSIONER OR THE COMMISSIONER
'S DEPUTY OR EMPLOYEE shall visit
the home office and such
branch offices as THAT the commissioner deems
necessary and examine into the affairs of every domestic association doing
business in this state. The commissioner's deputy or any employee, of the
commissioner, before being entitled to make BEFORE MAKING such AN
examination, shall produce under the hand A DOCUMENT THAT INCLUDES
THE SIGNATURE
and seal of the commissioner his or her
AND A STATEMENT
CONCERNING THE COMMISSIONER
'S authority to make such
THE examination.
The commissioner and his OR THE COMMISSIONER'S deputy have the power
to MAY administer oaths and to examine under oath any director, officer,
employee, or agent of any association concerning the business and affairs
thereof
OF THE ASSOCIATION. If the association has neither been audited by
a registered or certified public accountant, in such THE manner and by
auditors satisfactory to the commissioner, within the twelve-month period
immediately preceding the date of such
THE examination or within the
period that has elapsed since such THE last preceding examination,
whichever is greater, nor adopted and maintained an internal audit program
acceptable to the federal deposit insurance corporation or its successor and
the division, the examination by the division shall
MUST include an audit.
The cost, as computed by the division, of any such THE audit shall be paid
by the association audited; except that there shall be no charge by the
division
SHALL NOT CHARGE for making an audit when such
THE audit has
been made by reason of collaboration as provided in section 11-41-117.
(1.5) In lieu of making his or her THE COMMISSIONER'S own
examination, the commissioner may accept the examination report prepared
by the federal office of thrift supervision or its successor or other
AN
appropriate FEDERAL regulatory authority.
(2) When, in the judgment of the commissioner, the condition of any
AN association renders it necessary or expedient to make an extra
examination or to devote any such extraordinary attention to its THE
ASSOCIATION
'S affairs, the commissioner has authority to
MAY make any
extra examinations and to devote any necessary extra attention to the
conduct of its THE ASSOCIATION'S affairs and may cause a registered or
certified public accountant, appointed by the commissioner, to make an
audit or examination of such
THE association's business and affairs. In any
such case, the association shall pay a reasonable fee based on actual cost to
be affixed by the commissioner for all such
extra services rendered by the
PAGE 29-HOUSE BILL 24-1381 division or by such THE accountant. A copy of the commissioner's report on
each examination must be furnished to the association examined, and each
director must note thereon
ON THE REPORT that he THE DIRECTOR has read
the same REPORT.
(3) The commissioner or his THE COMMISSIONER'S deputy shall
annually examine into the affairs of every foreign association doing
business in this state, and for every such examination made outside this
state, a reasonable expense and the actual traveling expenses incurred shall
be paid by the association so
examined. If the commissioner deems it
necessary, he THE COMMISSIONER may cause a public accountant, appointed
by the commissioner, to make an audit or examination of such THE
association's business and affairs, and, in any such case, such THE
association shall pay a reasonable price to be fixed by the commissioner for such
THE extra services rendered by such THE accountant. Should IF any A
foreign association fail FAILS to pay the costs incurred in any such THE
examination, such THE costs shall be paid by the state treasurer upon the
order of the commissioner, and the amount so paid shall be BECOMES a first
lien upon all the assets and property of such THE association and may be
recovered by suit by the attorney general on behalf of the state of Colorado
and restored to the fund from which THE COSTS WERE paid.
(4) For the purpose of the examinations provided for in this section,
the commissioner and his THE COMMISSIONER'S deputy or any other person
authorized by him THE COMMISSIONER to make the examination:
(a) Has free access to all books and papers of the association which
THAT relate to its business and to the books and papers kept by any officer,
agent, or employee relating thereto TO THE ASSOCIATION or upon which any
record of its business is kept; and
(b) May summon witnesses and administer oaths or affirmations in
the examination of the directors, officers, agents, or employees of any such
association or any other person in relation to its AN ASSOCIATION'S affairs,
transactions, and conditions; He AND
(c) May require and compel the production of records, books,
papers, contracts, or other documents by court action if necessary.
SECTION 49. In Colorado Revised Statutes, 11-44-110, amend
PAGE 30-HOUSE BILL 24-1381 (1), (2), and (4)(e) as follows:
11-44-110. Power to take possession of association. (1) If the
commissioner as the result of any examination or from any report made to
him, finds that any AN association doing business in this state is violating
the provisions of its articles of incorporation or bylaws or of the laws of this
state provided for its THE ASSOCIATION'S government, or is conducting its
business in an unsafe or unauthorized manner, by an THE COMMISSIONER
MAY
order addressed to such
THE association he may direct a
discontinuance of such TO DISCONTINUE THE violations or unsafe or
unauthorized practices. and a conformity with all the requirements of law.
(2) If such AN association refuses or neglects to comply with such
AN order OF THE COMMISSIONER within the time specified therein IN THE
ORDER
, or if it appears to the commissioner that any
AN association is in an
unsafe condition or is conducting its business in an unsafe manner such as
to render THAT RENDERS its further proceedings hazardous to the public or
to any of its THE ASSOCIATION'S members, or if he THE COMMISSIONER finds
that its THE ASSOCIATION'S assets are impaired to such an extent that it
threatens loss to the withdrawable shares, or if any AN association refuses
to submit its books, papers, and accounts to the inspection of the
commissioner or any of his
THE COMMISSIONER'S examiners, his deputy
DEPUTIES, or his assistants, or if any officer refuses to be examined upon
UNDER oath concerning the affairs of such THE OFFICER'S association, then
the commissioner may revoke the certificate of authority of such THE
association, which shall act REVOCATION SERVES as an injunction against
the association issuing any new shares or stock, making any new loans,
transferring any shares or stock, or making any change in its managerial or
directorial personnel during the time such
THE revocation is in effect.
(4) (e) If a conservator is appointed, and
THE CONSERVATOR is other
than the federal deposit insurance corporation the office of thrift
supervision or its successors, or an employee of the division of financial
services, the conservator and any assistants shall provide a bond, payable
to the association and executed by a surety company authorized to do
business in this state, which
SURETY COMPANY meets with the approval of
the financial services board, for the faithful discharge of their
ITS duties in
connection with such THE conservatorship and the accounting for all
moneys MONEY coming into their hands ITS POSSESSION. The cost of such
THE bond shall be paid from the assets of the association. Suit may be
PAGE 31-HOUSE BILL 24-1381 maintained on such THE bond by any person injured by a breach of the
conditions thereof OF THE BOND. This requirement may be deemed IS met
if the financial services board determines that the association's fidelity bond
covers the conservator and any assistants.
SECTION 50. In Colorado Revised Statutes, 11-44-113, amend (1)
and (3) as follows:
11-44-113. Procedure under court order. (1) The commissioner
may retain possession of any
A savings and loan association for the purpose
of liquidating its affairs, but before doing so, he THE COMMISSIONER shall
furnish a bond, executed by some A surety company authorized to do
business in this state and running to the people of the state of Colorado, in
a penal sum equal to the value of the negotiable assets of the association, as
nearly as may be determined, for the faithful discharge of his
THE
COMMISSIONER
'S duties in connection with liquidating the affairs of the
association and accounting for all moneys
MONEY coming into his hands.
Such THE COMMISSIONER'S POSSESSION. THE bond shall MUST be approved
by the governor and be filed in the office of the secretary of state. The cost
of such THE bond shall be paid from the assets of the association. Suits may
be maintained on such THE bond by any person injured by a breach of the
conditions thereof OF THE BOND.
(3) If the commissioner is in possession of the business, property,
and assets of any AN association, regardless of whether or not he THE
COMMISSIONER
is liquidating the affairs of such
THE association, the
commissioner in his discretion, may apply to the district court of the county
in which the principal office in this state of such THE association is located
for an order confirming any action taken by the commissioner or
authorizing the commissioner to do any act or to execute any instrument not
expressly authorized by articles 40 to 46 of this title
TITLE 11, which order
shall be made after a hearing, on such notice as the court shall prescribe. He
THE COMMISSIONER may pay and discharge any secured claims against such
THE association, and, within six months after taking such possession he OF
THE ASSOCIATION
, THE COMMISSIONER may disaffirm any executory
contracts, including leases, to which such
THE association is a party and
disaffirm any partially executed contracts, including leases, to the extent
that they remain executory.
SECTION 51. In Colorado Revised Statutes, amend 11-44-115 as
PAGE 32-HOUSE BILL 24-1381 follows:
11-44-115. Officers to furnish schedule of property. (1) Upon
taking possession of the property, business, and assets of any AN
association, the commissioner shall require the president and secretary of such
THE association to:
(a) Make a schedule of all its OF THE ASSOCIATION'S property and
assets and of all collateral held by it THE ASSOCIATION as security for loans;
and to make
(b) STATE UNDER oath that such THE schedule sets forth all such
property, assets, and collateral which such THAT THE association owns or to
which it is entitled; and to
(c) Deliver such TO THE COMMISSIONER THE schedule and the
possession of all such property and collateral as may not have THAT HAS
NOT
been so
previously delivered to the commissioner. who
(2) THE COMMISSIONER may examine under oath such THE president
and secretary, the other officers of such THE association, or the directors,
agents, or employees thereof UNDER OATH at any time to determine whether
or not all the property, assets, and collateral which such THAT THE
association owns or to which it is entitled have been transferred and delivered into his possession
TO THE COMMISSIONER.
SECTION 52. In Colorado Revised Statutes, 11-44-116, amend
(1), (3), (5), (6), (7), (8), and (11) as follows:
11-44-116. Liquidation powers of commissioner. (1) In
liquidating the affairs of an association, the commissioner has the power to
MAY:
(a) Collect all moneys MONEY due to and all claims of such THE
association and give full receipt therefor; to FOR THE MONEY AND CLAIMS;
(b) Release or reconvey all real or personal property pledged,
hypothecated, or transferred in trust as security for loans; to
(c) Approve and pay all just and equitable claims; to
PAGE 33-HOUSE BILL 24-1381 (d) Commence and prosecute all actions and proceedings necessary
to enforce liquidations; to
(e) Compound bad or doubtful debts and to compound and settle
with any debtor or creditor of such THE association or with the persons
having possession of its property or being in any way responsible at law or
in equity to such
THE association, upon such terms and conditions and in
such manner as he THE COMMISSIONER deems just and beneficial to such
THE association;
(f) In case of mutual dealings between the association and any
person, to allow just setoffs in favor of such persons A PERSON in all cases
in which the same ought to JUST SETOFFS SHOULD be allowed according to
law and equity;
(g) In case of borrowers holding shares of the association pledged
to the association as security for said A loan, to allow the amount paid in on
said THE shares, together with all dividends legally declared thereon ON THE
SHARES
, to be set off against the amount due on said
THE loan; and to
(h) Sell, convey, and transfer real and personal property.
(3) For the purpose of executing and performing any of the powers
and duties conferred upon him THE COMMISSIONER, the commissioner, in
the name of such AN association or in his THE COMMISSIONER'S own name,
may:
(a) Prosecute and defend any and all suits and other legal
proceedings SUIT OR OTHER LEGAL PROCEEDING ; and
(b) in the name of such association or in his own name, as
commissioner, may Execute, acknowledge, and deliver any deeds,
assignments, releases, and other instruments necessary and proper to
effectuate any sale of real or personal property or other transaction in
connection with the liquidation of such
THE association. Any deed,
assignment, release, or other instrument executed pursuant to the authority
given shall be THIS SUBSECTION (3)(b) IS valid and effectual for all purposes
as though the same had been IF IT WERE executed by the officers of such
THE association by authority of its board of directors.
PAGE 34-HOUSE BILL 24-1381 (5) Upon determining to liquidate an association, the commissioner
shall cause REQUIRE an inventory of all the assets of such THE association
to be made in duplicate, the original to be filed with the court and the
duplicate in the office of the commissioner. He
THE COMMISSIONER shall
cause due notice to be given, by publication once a week for four successive
weeks in some
A newspaper of general circulation published at or near the
principal place of business of such THE association in this state, to all
persons having claims against it THE ASSOCIATION as creditors, or investors,
or otherwise, to present and file same THE CLAIMS and make legal proof
thereof OF THEM at a place and within a time to be designated in such THE
publication, which time shall MUST be not less than two months after such
THE first publication. Within ten days after such THE first publication, he
THE COMMISSIONER shall cause a copy of such THE notice to be mailed to
all persons whose names appear of record upon its THE ASSOCIATION'S
books as creditors or investors. and, Upon the expiration of the time fixed
for the presentation of claims, the commissioner shall prepare or cause to
be prepared in duplicate a full and complete schedule of all claims
presented, specifying by classes those that have been approved and those
that have been disapproved, and shall file the original with the court and the
duplicate in the office of the commissioner. Not later than five days after
the time of
filing such THE schedule with the court, THE COMMISSIONER
SHALL MAIL
written notice shall be mailed
to all claimants whose claims
have been rejected.
(6) Action to enforce the payment of any rejected claim must be
brought and service had PROCESS SERVED within four months after the date
of filing of the schedule of claims with the proper court; otherwise, all such
actions shall be forever
ARE barred. All claims of creditors, investors, or
other persons against the association or against any property owned or held
by it
THE ASSOCIATION must be presented to the commissioner in writing
AND verified by the claimant or someone in his ACTING ON THE CLAIMANT'S
behalf within the TIME period limited FIXED in the notice mentioned
DESCRIBED in subsection (5) of this section for the presentation of claims.
and Any claims not so presented shall be forever ARE barred; but the claim
of EXCEPT THAT any investor appearing WHO MAKES A CLAIM THAT APPEARS
upon the books of the association as a valid claim AND IS presented after the
expiration of the time fixed in said THE notice shall be entitled to MAY share
in any dividends declared subsequent to the presentation of such THE claim.
(7) (a) The commissioner under his hand and official seal may:
PAGE 35-HOUSE BILL 24-1381 (I) Appoint one or more special deputies to assist in the duties of
liquidation and distribution under his THE COMMISSIONER'S direction; and
may also
(II) Employ such special legal counsel, accountants, and assistants
as may be needful and requisite NECESSARY; and
(III) Fix the salaries and compensation to be allowed and paid to
each, all to be in a reasonable and commensurate sum SPECIAL DEPUTIES,
LEGAL COUNSEL, ACCOUNTANTS, AND ASSISTANTS.
(b) All such salaries, and compensation, and such other reasonable
and necessary expenses as may be incurred in the liquidation OF AN
ASSOCIATION
shall be paid by the commissioner from the funds of such
THE
association. in his hands.
(8) From the net realization of such AN ASSOCIATION'S assets in
excess of such salaries, compensation, and expenses, the commissioner shall
first pay all approved claims other than to investors, and thereafter he THE
COMMISSIONER
shall distribute and pay dividends in liquidation to the
shareholders and investors in the association, other than holders of
permanent stock, until their
THE SHAREHOLDERS' AND INVESTORS' claims are
fully paid or such THE assets or funds are exhausted. Such Distributions
shall be made as funds are available, therefor, to the extent of ten percent
or more of the approved claims of the class of claimants then entitled to
distribution, and shall continue until all the assets have been realized upon
and a final dividend in liquidation is declared and paid.
(11) Whenever, in case of any
AN association which THAT has issued
permanent stock, the commissioner has fully liquidated all claims other than
claims of such
THE stockholders and has made due provision for any and all
known or unclaimed liabilities, excepting claims of permanent stockholders,
and has paid all expenses of liquidation, he THE COMMISSIONER shall call a
meeting of the stockholders of said savings and loan THE association by
giving notice thereof OF THE MEETING for thirty days in one or more
newspapers published in the county in which the principal office of the
association is located. At such
THE meeting, the commissioner shall deliver
to such THE stockholders all the property and effects of said THE association
remaining in his THE COMMISSIONER'S possession, except its records, which
THE COMMISSIONER shall be retained by him as part of the records of his
PAGE 36-HOUSE BILL 24-1381 office, and, upon RETAIN. AFTER such transfer and delivery, he shall be THE
COMMISSIONER IS
discharged from any and all
further liability to said THE
association or its creditors, and thereupon the association shall be IS in the
same position as though it THAT IT WOULD BE IN IF IT had never been
authorized to transact a savings and loan business.
SECTION 53. In Colorado Revised Statutes, amend 11-44-117 as
follows:
11-44-117. Setoffs. Credits on loan shares of all persons indebted
to any savings and loan association in the possession of the commissioner,
whether such
THE indebtedness is due or to become due, shall be applied by
him THE COMMISSIONER on account of such THE indebtedness.
SECTION 54. In Colorado Revised Statutes, amend 11-44-118 as
follows:
11-44-118. Commissioner and deputy not to accept gifts. Neither
the commissioner nor his THE COMMISSIONER'S deputy shall receive or
accept any bribe, gratuity, or reward from any person or association for any
purpose whatever
or knowingly and willfully make any false or fraudulent
report of the condition of any association for any purpose. whatsoever. One
or more of the directors of any AN association may be present at any AN
examination of the affairs thereof OF AN ASSOCIATION, but the absence of
any or all of the officers or directors shall DOES not operate to prevent the
commissioner or his THE COMMISSIONER'S deputy from proceeding with
such AN examination.
SECTION 55. In Colorado Revised Statutes, 11-44-120, amend (1)
as follows:
11-44-120. Records of commissioner. (1) The commissioner shall
maintain annually revised summaries disclosing:
(a) The names of the officers and directors of all savings and loan
associations doing business in the state of Colorado during the preceding
year;
(b) The financial condition of such THE savings and loan
associations, together with INCLUDING a statement of the assets, liabilities,
PAGE 37-HOUSE BILL 24-1381 and reserves of the associations; and
(c) Such ANY other information concerning the same SAVINGS AND
LOAN ASSOCIATIONS
as he may see
THE COMMISSIONER DEEMS fit TO
INCLUDE
.
SECTION 56. In Colorado Revised Statutes, amend 11-46-106 as
follows:
11-46-106. Effect of lessee's death or incompetence. Where
IF a
lessor, without written notice or actual knowledge of the death or of a
determination of legal incompetence of the lessee, deals with said
THE
lessee or his THE LESSEE'S agent pursuant to a written power of attorney
signed by such THE lessee, the transaction binds the lessor and the estate of
the lessee.
SECTION 57. In Colorado Revised Statutes, 11-46-108, amend (1)
introductory portion and (1)(a) as follows:
11-46-108. Adverse claims to contents of safe deposit box. (1) A
lessor shall not deny access to a safe deposit box to its A lessee unless the
LESSEE'S claim of said lessee is adverse within the terms of this section. A
claim shall be considered IS adverse when:
(a) The lessor is directed to deny such access by a court order issued
in an action in which the lessee is served with process and named as a party
by a name which
THAT identified him THE LESSEE with the name in which
the safe deposit box is leased; or
SECTION 58. In Colorado Revised Statutes, 11-49-101, amend
(4), (6), (7), (8), and (10) as follows:
11-49-101. Definitions. As used in this article 49, unless the context
otherwise requires:
(4) "Entrance fee" means the total of any initial or deferred transfer
to or for the benefit of a provider, of a sum of money or other property
WHICH TRANSFER:
(a) I
S made or promised to be made as full or partial consideration
PAGE 38-HOUSE BILL 24-1381 for the acceptance or maintenance of a specified individual as a resident in
a facility; and
(b) I
S IN THE FORM OF:
(I) P
ROPERTY; OR
(II) A SUM OF MONEY IN AN AMOUNT THAT IS GREATER THAN FOUR
TIMES THE AMOUNT OF A REGULAR PERIODIC CHARGE UNDER A LIFE CARE
CONTRACT AT THE FACILITY
.
(6) "Life care" means care provided, pursuant to a life care contract,
for the life of an aged person, including but not limited to services such as
OCCUPANCY OF A LIVING UNIT, health care, NUTRITION ASSISTANCE, medical
services, board, lodging, or other necessities
AND NURSING SERVICES WITHIN
A LIVING UNIT
.
(7) "Life care contract" means a written contract to provide life care
to a person for the duration of the person's life conditioned upon the transfer
of an entrance fee to the provider of the services in addition to or in lieu of
the payment of regular periodic charges for the care and services involved.
Any
A life care contract UNDER WHICH THE ENTRANCE FEE IS payable to or
for the provider in four or more installments shall be IS subject to the
provisions of the "Uniform Consumer Credit Code", articles 1 to 9 of title
5.
(8) "Living unit" means a room, apartment, or other area
THAT IS
within a facility AND set aside for the exclusive
use or control of one or
more identified residents
AND WITHIN WHICH LIFE CARE IS PROVIDED BY THE
PROVIDER
. A RESIDENT'S LIVING UNIT MAY CHANGE BASED ON THE
APPROPRIATE CARE NEEDS OF THE RESIDENT
.
(10) (a) "Provider" means a person who undertakes to provide
services in a facility pursuant to a life care contract.
(b) "P
ROVIDER" DOES NOT INCLUDE A UNIT OWNERS' ASSOCIATION,
AS DEFINED IN SECTION 38-33.3-103 (3).
SECTION 59. In Colorado Revised Statutes, 11-49-102, amend (1)
introductory portion as follows:
PAGE 39-HOUSE BILL 24-1381 11-49-102. Escrow account for entrance fees. (1) Each provider
shall establish an escrow account that provides that all of any entrance fee
received by the provider prior to the date the resident is permitted to occupy
his or her
THE RESIDENT'S living unit in the facility be placed in escrow with
a bank, trust company, or other licensed corporate escrow agent located in
Colorado and approved by the commissioner, subject to the condition that
the funds
MONEY may be released only as follows:
SECTION 60. In Colorado Revised Statutes, 11-49-103, amend (1)
as follows:
11-49-103. Withdrawal or dismissal of person - refund. (1) If the
AN agreement permits withdrawal or dismissal of the A resident from the A
life care institution prior to the expiration of the agreement, with or without
cause, an amount equal to the difference between the amount paid in and
the amount used for the care of the resident during the time he or she THE
RESIDENT
remained in the institution, based upon the per capita cost to the
institution as determined in a manner acceptable to the commissioner, shall
be refunded to the resident; but in cases where a consideration greater than
the minimum charge has been paid for accommodations above standard, a
sum equal to the difference between the amount paid in and the ratio of the
amount paid to the minimum consideration for standard accommodations
times the current per capita cost to the institution applied to the period the
resident remained in the institution shall be refunded to the resident. If the
per capita cost to the institution during the period cannot be established
otherwise, the cost during the period shall be
IS deemed to be the cost at the
time of the withdrawal or dismissal. A
S USED IN THIS SECTION, for refund
purposes, "cost" shall include
INCLUDES a reasonable profit to the provider.
SECTION 61. In Colorado Revised Statutes, 11-41-112, amend
(1)(l) and (1)(m) as follows:
11-41-112. Powers of savings and loan associations. (1) Savings
and loan associations have the following powers:
(l) To act as a trustee, custodian, or manager, or in any other
fiduciary capacity to the same extent authorized and permitted from time to
time by the laws and regulations applicable to federal savings and loan
associations in Colorado, and, upon specific approval by the commissioner,
by permission granted such federal associations by the federal office of
PAGE 40-HOUSE BILL 24-1381 thrift supervision or its successor, including specifically, but without
limitation, the power to act as the trustee, custodian, or manager of any trust
created or organized in the United States and forming a part of a stock
bonus, pension, profit-sharing, or retirement plan that is qualified for
specific tax treatment under the provisions of
the federal "Self-Employed
Individuals Tax Retirement Act of 1962", 26
U.S.C. SEC. 401 ET SEQ., as
from time to time
amended or supplemented, or under the provisions of any
other act of congress enacted after June 2, 1971, as a substitute or
replacement for the federal "Self-Employed Individuals Tax Retirement Act
of 1962" or under the provisions of
the federal "Employee Retirement
Income Security Act of 1974", 29 U.S.C. sec. 1001 et seq., as from time to
time amended or supplemented. The association managing funds of any
such plan, trust, or fund shall have HAS, to the extent applicable to federal
savings and loan associations in Colorado, all of the rights, powers,
privileges, and immunities and shall be
IS subject to the same obligations
and duties as an individual fiduciary under like circumstances with power
to make investments. All funds held in such fiduciary capacity by any
association may be commingled for appropriate purposes of investment, but
individual records shall be kept by the fiduciary for each participant and
shall
MUST show in proper detail all transactions engaged in under the
authority of this paragraph (l) SUBSECTION (1)(l). An association acting as
a trustee may control accounts in or securities of such AN association
pursuant to the exercise of its authority as a trustee. The exercise by an
association of any authority vested in it shall
DOES not affect any other
authority of such THE association.
(m) To
ESTABLISH, subject to the regulations of the United States
FEDERAL treasury department, and the federal office of thrift supervision or
its successor, establish a tax and loan account and serve as a depository for
federal taxes or as a treasury tax and loan depository, and to satisfy any
ASSOCIATED requirement; in connection therewith;
SECTION 62. In Colorado Revised Statutes, 11-41-113, amend (1)
as follows:
11-41-113. Federal home loan bank membership. (1) Any
savings and loan association organized and incorporated under the laws of
this state as a savings and loan association that is eligible to become a
member of the federal home loan bank, in accordance with the provisions
of the act of congress known and cited as the "Federal Home Loan Bank
PAGE 41-HOUSE BILL 24-1381 Act", 12 U.S.C. sec. 1421 et seq., approved July 22, 1932 AS AMENDED, is
authorized to subscribe for stock of the federal home loan bank for the
district in which it is located and to invest its funds in such stock for the
purpose and to the extent required and permitted by the provisions of
the
"Federal Home Loan Bank Act", 12 U.S.C. sec. 1421 et seq., or any
amendment thereto AS AMENDED, and is further authorized to furnish to the
federal office of thrift supervision or its successor and to the federal home
loan bank reports of examinations of such associations made by the
commissioner, and is further authorized to consent to an examination to be
made by the federal office of thrift supervision or its successor or the
federal home loan bank, and is further authorized to do all other things as may be required by the "Federal Home Loan Bank Act", 12 U.S.C. sec. 1421 et seq., or any amendment thereto
AS AMENDED, necessary to obtain
and to continue membership in the federal home loan bank and to obtain
advances therefrom
FROM THE FEDERAL HOME LOAN BANK or that may be
incidental to acquiring or holding membership and to obtaining advances
therefrom
FROM THE FEDERAL HOME LOAN BANK , and is authorized to
assume all the duties, obligations, responsibilities, and liabilities and
become entitled to all the benefits provided in the "Federal Home Loan
Bank Act", 12 U.S.C. sec. 1421 et seq.,
AS AMENDED.
SECTION 63. In Colorado Revised Statutes, 11-42-111, amend
(14) as follows:
11-42-111. Reserves and distribution of earnings.
(14) Notwithstanding any other
provision of the Colorado "Savings and
Loan Association Law", article 40 ARTICLES 40 TO 46 of this title TITLE 11,
any association may distribute earnings on its shares on such other dates, on
such other bases, and in accordance with such other terms and conditions
as may from time to time be authorized by regulations made by the federal
office of thrift supervision or its successor or the federal deposit insurance
corporation or its successor for federal savings and loan associations when
such
THE regulations are approved by the commissioner.
SECTION 64. In Colorado Revised Statutes, 11-44-107, amend
(1)(c) and (1)(f) as follows:
11-44-107. Confidentiality. (1) Neither the commissioner, the
commissioner's deputy, nor any other person appointed by the commissioner
shall divulge any information acquired in the discharge of the person's
PAGE 42-HOUSE BILL 24-1381 duties; except that:
(c) The commissioner may furnish information as to the condition
of a savings and loan association to the federal office of thrift supervision
or its successors, a federal home loan bank, the savings and loan
departments of other states, an insurer authorized to insure obligations or
accounts pursuant to articles 40 to 47 of this title
TITLE 11, the executive
director of the department of regulatory agencies, or AND the division of
banking;
(f) Notwithstanding any provision contained in this article ARTICLE
44 to the contrary, the commissioner, the commissioner's deputies, or other
persons appointed by the commissioner may disclose any information in the
records of the division of financial services
or acquired in the discharge of
the person's duties that is available from the federal office of thrift
supervision or its successors or IF the disclosure of which THE INFORMATION
has been specifically authorized by the board of directors of the association to which such
THE information relates. Nothing in this section shall be
construed to authorize the board of directors of an association to waive any
privileges that belong solely to the financial services board
OR TO the
division of financial services, or its employees.
SECTION 65. In Colorado Revised Statutes, 11-45-101, amend (1)
introductory portion and (1)(c) as follows:
11-45-101. Conversion into federal association. (1) Any savings
and loan association or other home-financing organization, by whatever
name or style it may be designated, which
THAT is eligible to become a
federal savings and loan association may convert itself into a federal
savings and loan association by the following procedure:
(c) Within a reasonable time and without any unnecessary delay
after the adjournment of such
THE meeting of shareholders, the association
shall take such ANY action as THAT may be necessary to make it a federal
savings and loan association. and, within ten days after receipt of the federal
charter, there shall be filed in the office or division of this state having
supervision of such association a copy of said charter issued to such
association by the office of thrift supervision or its successor or a certificate
showing the organization of such association as a federal savings and loan
association certified by, or on behalf of, the office of thrift supervision or
PAGE 43-HOUSE BILL 24-1381 its successor. Upon the filing of such instrument, such association shall
cease to be a state association and shall thereafter be a federal savings and
loan association.
SECTION 66. In Colorado Revised Statutes, 11-45-103, amend (1)
as follows:
11-45-103. Conversion into state association. (1) Any federal
savings and loan association may convert itself into an association under
articles 40 to 46 of this title
TITLE 11 by the majority vote of all members
present in person or by proxy at an annual meeting or at any special meeting
called to consider such
THE action. Copies of the minutes of the proceedings
of such THE meeting of members, verified by the affidavit of the secretary
or an assistant secretary, shall be filed in the office of the commissioner and
mailed to the office of thrift supervision, or its successor, within ten days
after such THE meeting. Such THE verified copies of the proceedings of the
meeting when so filed shall be ARE prima facie evidence of the holding and
action of such THE meeting.
SECTION 67. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly; except that, if a referendum petition is filed pursuant to
section 1 (3) of article V of the state constitution against this act or an item,
section, or part of this act within such period, then the act, item, section, or
part will not take effect unless approved by the people at the general
election to be held in November 2024 and, in such case, will take effect on
the date of the official declaration of the vote thereon by the governor.
(2) This act applies to the operations of the division of financial
services, the commissioner of financial services, the financial services
board, credit unions, savings and loan associations, and life care institutions
on or after the applicable effective date of this act, including the imposition
PAGE 44-HOUSE BILL 24-1381 of fines by the commissioner of financial services against a person who
violates a cease-and-desist order or a suspension or removal order.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 45-HOUSE BILL 24-1381