SLS 20RS-852 ORIGINAL
2020 Regular Session
SENATE BILL NO. 468
BY SENATOR MORRIS
FINANCIAL INSTITUTIONS. Provides relative to the regulation of financial institutions
during a declared emergency. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 6:121(A) and 121.6(A) and R.S. 51:710(A)(1), relative to the
3 office of financial institutions; and to provide for related matters.
4 Be it enacted by the Legislature of Louisiana:
5 Section 1. R.S. 6:121(A) and 121.6(A) are hereby amended and reenacted to read
6 as follows:
7 §121. Regulatory powers; promulgation of rules and regulations
8 A. The commissioner shall have, in addition to those powers specifically
9 enumerated in this Title, any power necessary and appropriate to perform his duties
10 under this Title as well as any power necessary and appropriate to prevent or
11 terminate any condition which he may reasonably deem to create an emergency
12 relative to a particular financial institution or financial institutions in general. Such
13 power may include, but shall not be limited to, the granting of temporary lending
14 authority to a financial institution, taking into account that institution's current net
15 operating income and whether it has such negative undivided profits that might
16 render the bank unable to make a loan as provided in R.S. 6:415(A)(1), (2), or (3) or
17 to make a purchase or sell as provided in R.S. 6:303(A) and (B). In granting such
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 468
SLS 20RS-852 ORIGINAL
1 temporary lending authority, the amount of which shall be at the discretion of the
2 commissioner, the commissioner shall be guided by safety and soundness of the
3 financial institution.
4 * * *
5 §121.6. Authority of the commissioner; nondepository institutions; emergencies
6 A. In addition to any other powers specifically authorized, the commissioner
7 is authorized to may waive, suspend, or delay compliance with all or part of any
8 statute it is the duty of the commissioner to administer or enforce with respect to a
9 nondepository institution, if he reasonably deems compliance with such statute is
10 impossible or impractical as a result of conditions created during a declared state of
11 emergency or as a result of conditions the commissioner reasonably deems to create
12 an emergency.
13 * * *
14 Section 2. R.S. 51:710(A)(1) is hereby amended and reenacted to read as follows:
15 §710. Commissioner of securities; powers of commissioner and employees;
16 compensation and expenses; assistant commissioner
17 A.(1) The administration of the provisions of this Part shall be vested in the
18 commissioner of financial institutions, who is designated commissioner of securities.
19 Whenever the governor issues a declaration of emergency, the commissioner shall
20 have, in addition to those powers enumerated in this Part, any power necessary and
21 appropriate to perform his duties under this Part as well as the power necessary and
22 appropriate to prevent or terminate any condition which he may reasonably deem to
23 create an emergency relative to the registration of issuers, dealers, salesmen,
24 investment advisers, and securities, or any other matters regulated under this Part.
25 The commissioner, from time to time, may make, amend, and rescind rules, forms,
26 compliance agreements, and orders as are necessary to carry out the provisions of
27 this Part, where such action is consistent with the public interest and with the
28 purpose fairly intended by the policy and provisions of this Part.
29 * * *
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 468
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1 Section 3. This Act shall become effective upon signature by the governor or, if not
2 signed by the governor, upon expiration of the time for bills to become law without signature
3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
4 vetoed by the governor and subsequently approved by the legislature, this Act shall become
5 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ridge.
DIGEST
SB 468 Original 2020 Regular Session Morris
Present law provides for the regulatory authority of the commissioner of the office of
financial institutions during a gubernatorially declared emergency.
Proposed law retains present law and makes technical changes.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 6:121(A) and 121.6(A) and R.S. 51:710(A)(1))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.