January 30, 2024 - Introduced by Representatives Rettinger, O’Connor and Myers, cosponsored by Senators Feyen, Tomczyk and Taylor. Referred to Committee on Financial Institutions.
AB1031,,22An Act to repeal 215.03 (6), 215.21 (2), 215.25 and 215.26 (5); and to amend 215.02 (11) (a), 215.02 (14) (a), 215.13 (39), 215.21 (5) (a), 215.21 (14), 215.21 (15), 215.21 (28), 215.33 (4), 215.51 (2) and 215.71 (2) of the statutes; relating to: operations of state-chartered savings and loan associations. AB1031,,33Analysis by the Legislative Reference Bureau This bill makes changes relating to the authorized activities of state-chartered savings and loan (S&L) associations.
Under current law, the Division of Banking (division) in the Department of Financial Institutions regulates S&L associations. Current law specifies various authorized activities, restrictions, and requirements applicable to S&L associations.
The bill makes the following changes related to these authorized activities, restrictions, and requirements:
1. Current law authorizes an S&L association to make mortgage loans but limits the lending area of an S&L association to a radius of 100 miles of the S&L association’s home office. In general, an S&L association may establish branch offices within its lending area. The bill eliminates the lending-area restriction on an S&L association and, consequently, the limitation that a branch office must be located within the lending area.
2. Current law limits an S&L association’s aggregate of mortgage loans to a single borrower to 10 percent of the association’s aggregate of savings accounts or its net worth, whichever is less. The bill instead limits the aggregate of mortgage loans to a single borrower to 10 percent of the S&L association’s assets.