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HB1268: relative to bank reserve and lending procedures.

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Version history, amendments, and roll-call votes were not present in the imported local bill data.

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HB 1268 - AS INTRODUCED

2003 SESSION

03-2129

06/01

HOUSE BILL 1268

AN ACT relative to bank reserve and lending procedures.

ANALYSIS

This bill prohibits the use of derivatives and fractional reserves as collateral for loans made by financial institutions.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-2129

06/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to bank reserve and lending procedures.

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

1 Investment Committee; Officers; Reserve Requirements. Amend RSA 384:4 to read as follows:

384:4 Investment Committee; Officers.

I. Said board shall elect an investment committee of not less than 3 of its members, and such officers as may be necessary for the transaction of the business of the corporation. The investment committee, the board of trustees of a savings bank or the board of directors of a trust company, or an officer, classification of officer or committee duly authorized by, and operating pursuant to policies approved by the board of trustees or board of directors shall approve all loans, all changes in mortgage or other security for loans, all purchases and sales of bonds, stocks, notes, and other investments and shall perform such other duties, not inconsistent herewith, as the by-laws may prescribe.

II. No investment committee, board of trustees of a savings bank or board of directors of a trust company, or officer or committee duly authorized by, and operating pursuant to policies approved by the board of trustees or board of directors shall approve any loan unless the financial institution has a 100 percent reserve of cash collateral, tangible assets, or assets secured by tangible assets. Use of derivatives or fractional reserves shall be prohibited.

2 Effective Date. This act shall take effect 60 days after its passage.