sb 0051

CHAPTER 263

SB 51 - FINAL VERSION

AN ACT relative to financial holding companies, establishing a cash dispensing machines study committee, and relative to the participation in meetings by out-of-state, nondepository trust company directors, and clarifying the status of student loans.

SPONSORS: Sen. Larsen, Dist 15; Rep. T. Reardon, Merr 23

(1) Adds references to financial holding companies to provisions regarding incorporation of banks.

(3) Permits out-of-state directors of nondepository trust companies to be physically present at fewer directors' meetings under certain circumstances.

(4) Clarifies that student loans are not subject to regulation as consumer credit transactions under RSA 358-K.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

263:1 Financial Holding Companies; Incorporators. Amend RSA 386-A:1 to read as follows:

386-A:1 Incorporators. Except as provided in this paragraph, 10 persons may subscribe to articles of agreement in writing for the purpose of forming a mutual savings bank or a guaranty savings bank and may, upon compliance with the provisions of this chapter, become a corporation with all the powers and privileges and subject to all the duties, restrictions, and liabilities of either a mutual savings bank or a guaranty savings bank, as set forth in the general laws now or hereafter in force relating to such corporations. If the bank is being organized by a bank holding company or a financial holding company as defined by the federal Bank Holding Company Act of 1956, as amended, or by a savings and loan holding company as defined by the federal Savings and Loan Holding Company Act, as amended, or by any other type of company that will directly or indirectly hold all of the shares of the saving bank's capital stock, or in connection with a reorganization of a bank into a holding company structure, then only the holding company or, if applicable, the subsidiary of the holding company that will hold all of the shares of the saving bank's capital stock, is required to subscribe to the articles of agreement.

263:2 Financial Holding Companies; Incorporators. Amend RSA 392:2 to read as follows:

392:2 Incorporators. Except as provided in this paragraph, 10 persons may subscribe to articles of agreement in writing for the purpose of forming a trust company and may, upon compliance with the provisions of this chapter, become a corporation with all the powers and privileges and subject to all the duties, restrictions, and liabilities of a trust company, as set forth in the general laws now or hereafter in force relating to such corporations. If a trust company is being organized by a bank holding company or a financial holding company as defined by the federal Bank Holding Company Act of 1956, as amended, or by a savings and loan holding company as defined by the federal Savings and Loan Holding Company Act, as amended, or by any other type of company that will directly or indirectly hold all of the shares of the trust company's capital stock, or in connection with a reorganization of a trust company into a holding company structure, then only the holding company or, if applicable, the subsidiary of the holding company that will hold all of the shares of the trust company's capital stock, is required to subscribe to the articles of agreement.

I. There is established a committee to study the regulation of cash dispensing machines and their operators, servicing agents, and processors.

(1) Two members of the house of representatives, appointed by the speaker of the house.

(b) Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

III. The duty of the committee shall be to study the regulation of cash dispensing machines and their operators, servicing agents, and processors.

IV. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Two members of the committee shall constitute a quorum.

V. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the senate president, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2001.

263:4 Directors; Participation in Meetings. Amend RSA 384:7-b to read as follows:

384:7-b Participation in Meetings. Unless the charter or bylaws provide otherwise, a board of directors or trustees may permit any or all directors or trustees to participate in a regular or special meeting by, or conduct the meeting through the use of, any means of communication by which all of the directors or trustees participating may simultaneously hear each other during the meeting. A director or trustee participating in a meeting by this means is deemed to be present in person at the meeting. However, a director or trustee shall be physically present at a majority of the meetings such director or trustee attends. If any member of the board of directors of a nondepository trust company resides outside of the state of New Hampshire, the board may permit such out-of-state director to be physically present at a lesser number of meetings, if such arrangement is approved in writing by the bank commissioner, based upon a finding that the safety and soundness of such trust company will not be impaired by such less frequent physical presence.

263:5 Consumer Credit Transactions; Application of Chapter to Student Loans. Amend RSA 358-K:6 to read as follows:

358-K:6 Application of Chapter to Types of Transactions. The provisions of this chapter shall apply to all consumer credit transactions, both secured and unsecured, including those transactions secured by a real property mortgage. The provisions of this chapter shall not apply to student loans, the proceeds of which are exclusively for the payment of tuition and other education-related expenses.