Louisiana House Bill HB666

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15
• Report Pass: 4/21/15
• Engrossed: 4/29/15
• Refer: 4/30/15
• Report Pass: 5/13/15
• Enrolled: 5/27/15
• Chaptered: 6/5/15
• Passed: 6/5/15

Caption

Provides relative to banking provisions and liability of banking directors and officers

Impact

The impact of HB 666 on state laws primarily involves enhancing banking operational efficiency by allowing clearer guidelines for handling unclaimed dividends and shares. By permitting the reversion of unclaimed ownership interests, the bill is set to ensure that banks maintain better control over their assets, which could lead to a more robust financial operation framework. Furthermore, it addresses the accountability of directors and officers by clarifying their liability limitations, thus promoting a more secure environment for banking operations.

Summary

House Bill 666 aims to amend and reenact certain provisions related to banking regulations in Louisiana, focusing on the incorporation processes for banks and bank holding companies. Key changes include provisions for the regulation of business conduct, specifically addressing the reversion of ownership interests in unclaimed dividends or shares. The bill provides banks with the authority to revert ownership of unclaimed assets back to the corporation after a designated period, thereby streamlining internal processes for asset management and shareholder equity.

Sentiment

The general sentiment surrounding HB 666 appears to be supportive from banking associations and financial professionals who argue that these amendments will reduce cumbersome processes and promote greater financial accountability. While some lawmakers and advocacy groups raised concerns about the implications of allowing reversion of ownership without adequate protections for shareholders, the consensus seems to lean toward the belief that these changes will modernize banking regulations in Louisiana.

Contention

Noteworthy points of contention include debates on the balance between empowering banking institutions and protecting shareholders. Critics of the bill have pointed out that the provisions allowing reversion of ownership interests could potentially disadvantage shareholders who do not engage with the corporation regularly. This raises questions about fair treatment and transparency in banking practices, with opponents calling for stricter guidelines to safeguard shareholder rights in the event of unclaimed assets.