State Codes and Statutes

Statutes > Wyoming > Title13 > Chapter3

CHAPTER 3 - BANKING OPERATIONS

 

ARTICLE 1 - GENERALLY

 

13-3-101. Bond required of officers and employees.

 

Thestate banking commissioner may require all active officers and employees ofbanks to furnish a fidelity bond in duplicate in an amount to be fixed by thestate banking commissioner and written by a surety company authorized to dobusiness in Wyoming. One (1) copy of the bond shall be filed with the statebanking commissioner.

 

13-3-102. Loans to executive officers, directors, principalshareholders or others with ownership interests.

 

Nobank shall loan any of its funds to executive officers, directors or to anyperson owning or controlling ten percent (10%) or more of the bank's or itsbank holding company's voting ownership interests, or to any person in whichany of the executive officers, directors or owners or controllers areinterested except upon the written application of the person and then only withthe prior approval of a majority of the board of directors. The approval of theloan, if allowed, shall be made a part of the records of the directors'meeting.

 

13-3-103. Preference to depositors or creditors prohibited;exceptions.

 

Abank shall not give preference to any depositor or creditor by pledging the assetsof the bank as security except that the bank may qualify as depository forUnited States deposits, postal savings funds or other public funds by depositof the securities required by law and except as otherwise permitted by thisact.

 

13-3-104. Repealed By Laws 1999, ch. 42, 3.

 

ARTICLE 2 - RESTRICTED OPERATIONS

 

13-3-201. Acquisition of real estate.

 

(a) No bank shall purchase, hold, convey or lease real estateexcept for the following purposes:

 

(i) Real estate and buildings necessary to transact thebusiness of a bank including its banking offices and other premises in the samebuildings to rent as a source of income. The property shall not be carried onthe books of the bank as an asset in an amount in excess of one hundred percent(100%) of the bank's capital and surplus and, with the prior approval of thestate banking commissioner, undivided profits and reserve accounts. When anybank ceases to use the real estate and improvements for banking purposes, itshall, within five (5) years from the date of vacation of the premises, sellthe property;

 

(ii) Real estate which is purchased by or conveyed to the bankin satisfaction of or on account of debts previously contracted in the courseof its business;

 

(iii) Real estate which is purchased at execution sale oracquired by decree under securities held by it.

 

(b) Any real estate acquired as provided in subsections (a)(ii)and (iii) of this section shall be entered on the books as other real estate atnot more than acquisition cost, or appraised fair market value, whichever isless, shall be appraised at least every twenty-four (24) months, and shall besold within ten (10) years after title to the property is acquired. Any realestate acquired prior to July 1, 1992 shall be carried on the bank's books atthe lower of the bank's book value for that property as of July 1, 1992 orappraised value.

 

(i) Repealed by Laws 1992, ch. 46, 2.

 

(ii) Repealed by Laws 1992, ch. 46, 2.

 

(c) If any real estate is not sold within the time required inthis section, it shall not thereafter be carried as an asset of the bank. Thissection shall not apply to real estate purchased with funds other than thecapital and resources of the banking business nor to real estate held in trust.

 

(d) Any bank acquiring any real estate in any manner other thanas provided by this section shall immediately charge it to a reserve for lossesor to undivided profits.

 

(e) Any appraisal required under subsection (b) of this sectionfor property which is carried on the bank's books at a value equal to orexceeding fifty thousand dollars ($50,000.00) shall be conducted by a realestate appraiser certified or licensed by the state in which the property islocated, who is not an officer or director of the bank and whose reports areacceptable to the state banking commissioner.

 

(f) Any appraisal required under subsection (b) of this sectionmay be waived by the state banking commissioner upon written application fromthe bank.

 

13-3-202. Investment in stock of other corporations.

 

(a) No bank shall invest any of its assets in the capital stockof any other corporation except as follows:

 

(i) In the capital stock of a federal reserve bank;

 

(ii) In stock acquired to save a loss on a preexisting debtwhich shall be sold within twelve (12) months from the date acquired unless alonger period of time is permitted by the state banking commissioner;

 

(iii) In the stock of a small business investment company asdefined by the federal Small Business Investment Act of 1958 as amended;

 

(iv) In the stock of the federal national mortgage association;

 

(v) In the stock of a corporation formed solely for the purposeof making agricultural loans and borrowing or discounting loans from banks andassociations of the farm credit system as authorized in the Farm Credit Act of1971 (P.L. 92-181), subject to such conditions and limitations as the statebanking commissioner may prescribe;

 

(vi) In the stock of a bank service corporation pursuant to W.S.13-9-101;

 

(vii) In mutual fund shares whose underlying securities consistsolely of obligations of the United States treasury or other federal agencyobligations which are unconditionally guaranteed by the United Statesgovernment;

 

(viii) In the stock of a federal home loan bank established underthe Federal Home Loan Bank Act;

 

(ix) In the stock of an operating subsidiary in accordance withW.S. 13-3-204;

 

(x) In the stock of a bank engaged exclusively in providingservices to state or national banks or their subsidiary corporations, bankholding companies or their subsidiary corporations, or other financialinstitutions, hereinafter referred to as a "banker's bank," subjectto the following limitations:

 

(A) The investing bank may not acquire or retain ownership,control or power to vote more than five percent (5%) of any class of votingstock or securities of a banker's bank; and

 

(B) The investing bank may not invest in a banker's bank morethan ten percent (10%) of its capital stock and paid in and unimpaired surplus.

 

13-3-203. Borrowing.

 

(a) A bank may borrow on and pledge assets of the bank assecurity for temporary purposes. If it appears that any bank is habituallyborrowing for the purpose of reloaning the state banking commissioner mayrequire the bank to pay off the borrowed money. A bank is not prevented fromrediscounting in good faith and endorsing any of its negotiable notes.

 

(b) Repealed by Laws 1992, ch. 46, 2.

 

(c) No bank shall sell or rediscount "withoutrecourse" any notes or other negotiable securities on which the bank is inany way liable under purchase or guarantee agreements and any purchaser ofnotes or negotiable securities purchased "without recourse" shalllook to the maker or guarantor of the notes or negotiable securities only forpayment.

 

(d) Any bank may borrow money from a federal reserve bank orfederal home loan bank in the manner required by the rules, laws andregulations of the federal reserve banks or federal home loan bank, asapplicable. A bank borrowing pursuant to this section may pledge assets of thebank as security for the borrowing.

 

(e) Repealed by Laws 1992, ch. 46, 2.

 

(f) State chartered banks may engage in other borrowingactivities subject to approval of the commissioner.

 

13-3-204. Operating subsidiaries; application; fee; new activities.

 

(a) With prior written approval of the commissioner, a bank maypurchase for its own account the stock in a corporation to perform functionsthat are authorized for the bank or that are usual or incidental to the businessof banking, subject to the following conditions:

 

(i) The bank shall own or control eighty percent (80%) or moreof the voting stock of the subsidiary corporation;

 

(ii) No officer, director or shareholder of the bank or anyperson in a substantially similar controlling or governing position of its bankholding company shall otherwise have a direct or indirect pecuniary interest inthe subsidiary corporation;

 

(iii) All transactions between the bank and the subsidiary shallbe subject to any limitations and restrictions applicable under the laws ofthis state and the United States;

 

(iv) All provisions of banking law applicable to the operationsof the bank shall apply equally to the operations of the subsidiary;

 

(v) Each subsidiary shall be subject to examination andsupervision by the commissioner in the same manner and to the same extent asthe bank. If the commissioner determines the subsidiary is violating anyapplicable law or that operation of the subsidiary is adversely affecting thesafety and soundness of the bank, the commissioner may order the bank todispose of all or any part of the subsidiary upon such terms as thecommissioner deems appropriate or take any other appropriate administrativeaction authorized in this act.

 

(b) The bank shall file an application for permission tooperate a subsidiary with the commissioner, together with an application fee ofseven hundred dollars ($700.00). The fee shall be deposited as provided in W.S.13-2-210(b) and may be expended as provided in that subsection. The applicationshall include:

 

(i) The name and location of the subsidiary and the date thesubsidiary will commence operations;

 

(ii) A description of the activities and nature of the businessto be conducted at the subsidiary; and

 

(iii) A description of the nature of the bank's investment in thesubsidiary.

 

(c) The commissioner shall approve the application and issue acertificate of authority to operate the subsidiary to the bank within twenty(20) days after receipt of the completed application and fee unless thecommissioner finds:

 

(i) The proposed activity or activities to be performed at thesubsidiary are not activities the bank is authorized to perform and are notactivities that are usual or incidental to the business of banking; or

 

(ii) Operation of the subsidiary will adversely affect thesafety and soundness of the bank.

 

(d) With the prior approval of the commissioner, an approvedsubsidiary of a bank may engage in a new activity. The bank shall file awritten application for approval of the new activity with the commissioner inthe form prescribed by the commissioner. The commissioner shall approve theapplication in writing no later than twenty (20) days after receipt of theapplication if the commissioner finds that the proposed new activity is anactivity that is authorized for the bank or is usual or incidental to thebusiness of the bank and the proposed new activity will not adversely affectthe safety and soundness of the bank.

 

(e) Nothing in this section shall prohibit a bank fromestablishing and operating a subsidiary in a state other than Wyoming, providedthat the bank complies with all applicable provisions of Wyoming law, the lawof the state where the subsidiary will be located and federal law.

 

ARTICLE 3 - ACCOUNTING PRACTICES

 

13-3-301. Losses to be charged to surplus fund.

 

Anylosses sustained by a bank in excess of its undivided profits shall be chargedto its surplus fund. The surplus fund shall subsequently be reimbursed fromearnings. No dividends shall be declared or paid by any bank in excess ofone-half (1/2) of its net earnings until the surplus fund is fully restored toits former amount or an amount equal to one hundred percent (100%) of the paidup capital.

 

13-3-302. Bad debts.

 

Alldemand and matured debts due to any bank on which interest has not been paidfor a period of at least twelve (12) months, unless in the judgment of thestate banking commissioner the debts are well secured or are in the process ofcollection, are bad debts and shall be charged in whole or in part to thereserve for losses or to undivided profits upon instructions of the statebanking commissioner or any duly appointed examiner.

 

13-3-303. Value of stocks held.

 

Allinvestments in any bank in stocks of any corporation authorized by W.S.13-3-202 shall be entered on the books of the bank at a sum not to exceed theactual cost to the bank. The state banking commissioner may require an asset tobe charged down to its actual value.

 

13-3-304. Dividends.

 

(a) The board of directors may, quarterly, semiannually orannually, declare a dividend of so much of the net profits of the bank as theyjudge proper, except that no dividends shall be declared until the surplus fundof the bank equals its common capital unless there has been carried to thesurplus fund not less than ten percent (10%) of the bank's net profits of thepreceding six (6) consecutive months in the case of quarterly or semiannualdividends, or not less than ten percent (10%) of its net profits of the precedingtwelve (12) consecutive months in the case of annual dividends. For thepurposes of this section, any amounts paid into a fund for the retirement ofany preferred stock of any bank out of its net profits for such period aredeemed to be additions to its surplus fund if, upon retirement of the preferredstock, the amounts paid into the retirement fund may then properly be carriedto surplus. In such case, the bank is obligated to transfer to surplus theamounts paid into the retirement fund on account of the preferred stock as thestock is retired.

 

(b) The approval of the state banking commissioner is requiredif the total of all dividends declared by the bank in any calendar year shallexceed the total of its net profits of that year combined with its retained netprofits of the preceding two (2) years, less any required transfers to surplusor a fund for the retirement of any preferred stock.

 

(c) For the purpose of this section:

 

(i) "Net profits" means the net income or lossreported by a bank in its report of condition and income;

 

(ii) "Retained net profits" for any period shall beequal to the net income or loss reported in the report of condition and incomeless any common or preferred stock dividends declared or otherwise charged tothe undivided profits of the period for which the retained net profits arecomputed.

 

(d) No dividend shall be declared by the board of directors ofany bank which is operating under any form of regulatory action without priorwritten approval of the state banking commissioner.

 

ARTICLE 4 - RESTRICTED TRANSACTIONS

 

13-3-401. Real estate loans.

 

(a) Any bank may make real estate loans upon real estatesecured by a mortgage, deed of trust or other instrument of similar securitywhich comprises a lien upon the secured property. A bank may make a real estateloan or purchase these obligations in whole or in part at any time prior to thematurity of the obligation if the participation interest of the bank isadequately protected by the terms of the participation agreement.

 

(b) Real estate loans may be made in an amount not to exceedninety percent (90%) of the appraised value of the real estate offered assecurity for a term not longer than thirty (30) years if the loan is secured byan instrument under the terms of which the installment payments are sufficientto amortize the entire principal of the loan within the period ending on thematurity. Any loan may also be made in an amount not to exceed ninety-fivepercent (95%) of the appraised value of the real estate offered for security ifthe amount of the loan in excess of ninety percent (90%) is insured by amortgage insurance corporation authorized to transact business within the stateof Wyoming.

 

(i) Repealed by Laws 1983, ch. 20, 2.

 

(ii) Repealed by Laws 1983, ch. 20, 2.

 

(iii) Redesignated by Laws 1983, ch. 20, 1.

 

(c) The restrictions of this section shall not prevent therenewal or extension of loans previously made nor apply to liens on real estatetaken to secure a debt previously contracted in good faith and real estateloans to the extent that the loans are insured or guaranteed by an agency ofthe federal government for the payment of the obligations of which the fullfaith and credit of the United States is pledged. Any loans so insured orguaranteed, in whole or in part, may be made for the same period of time forwhich the guarantee may be made.

 

(d) Repealed By Laws 1996, ch. 54, 1.

 

(e) Repealed by Laws 1992, ch. 46, 2.

 

(f) The restrictions of this section shall not apply to realestate loans originated for the purpose of sale without recourse to afinancially responsible third party within a reasonable time.

 

13-3-402. Individual indebtedness limitations; generally.

 

(a) Except as otherwise provided, no bank shall permit anyperson, firm, partnership, association or corporation to become indebted at anytime to the bank in an amount exceeding twenty percent (20%) of the amount ofthe capital stock of the bank actually paid in and unimpaired plus twentypercent (20%) of its unimpaired surplus fund plus twenty percent (20%) of itsunimpaired undivided profits.

 

(b) As used in this section, W.S. 13-3-403 and 13-3-404,"loans or extensions of credit", "indebted" and"obligations" means the direct liability of the maker or acceptor ofpaper discounted with or sold to a bank and includes, but are not limited to,outstanding letters of credit and unfunded commitments. Indebtedness of apartnership includes the obligations of the several members thereofindividually and indebtedness of a corporation includes all obligations of allsubsidiaries thereof in which the corporation owns or controls a majorityinterest.

 

(c) The board of directors shall review and give prior approvalfor all combinations of indebtedness of affiliated persons, firms,partnerships, associations or corporations which exceed the limits permitted bysubsection (a) of this section. For purposes of this section"affiliated" means that twenty-five percent (25%) or more of eachentity is owned or controlled by a common principal.

 

13-3-403. Individual indebtedness limitations; exceptions generally.

 

(a) The limitation of W.S. 13-3-402 does not apply to thefollowing:

 

(i) Repealed by Laws 1992, ch. 46, 2.

 

(ii) Repealed by Laws 1992, ch. 46, 2.

 

(iii) Repealed by Laws 1992, ch. 46, 2.

 

(iv) Obligations in the form of banker's acceptances of otherbanks;

 

(v) Loans or extensions of credit secured by a segregateddeposit account in the lending bank, if a security interest has been perfectedin the assigned account and, in the case of a deposit eligible for withdrawalprior to the maturity of the secured loan, the bank has established internalprocedures which will prevent the release of the security;

 

(vi) Loans or extensions of credit secured by certificates ofindebtedness, bonds, notes or treasury bills of the United States or by otherdebts fully guaranteed as to principal and interest by the United Statesgovernment. Collateral values shall fully secure the loan or extension ofcredit at current market value, provided that should market value decline belowthat of the loan or extension of credit, that within ten (10) days of thatdecline, the limitations of W.S. 13-3-402 will then apply;

 

(vii) Loans or extensions of credit made in connection with alender credit card, as defined in W.S. 40-14-140(a)(ix) not exceeding fivethousand dollars ($5,000.00).

 

(b) Repealed by Laws 1992, ch. 46, 2.

 

(c) Repealed by Laws 1992, ch. 46, 2.

 

(d) Repealed By Laws 1998, ch. 106, 2.

 

13-3-404. Individual indebtedness limitations; exceptions generally;federal obligations.

 

(a) W.S. 13-3-402 and 13-3-403 do not restrict the making ofloans in excess of the limitations to the extent that the repayment ofprincipal and interest is:

 

(i) An obligation of the United States;

 

(ii) An obligation of entities in which national banks areauthorized to invest as established by rule and regulation of the commissioner;or

 

(iii) Guaranteed or insured by any agency of the federalgovernment for the payment of the obligations of which the full faith andcredit of the United States is pledged. These commitments shall beunconditional and shall be performed by payment of cash or its equivalentwithin three (3) months after demand.

 

13-3-405. Acceptance of drafts and bills of exchange.

 

(a) Drafts or bills of exchange, drawn upon a bank having notmore than six (6) months' sight to run, may be accepted by a bank. Letters ofcredit may be issued by a bank only if they are based upon actual commercial oragricultural transactions.

 

(b) No bank shall accept drafts or bills of exchange or issueletters of credit for any one (1) person or entity to an amount equal at anytime in the aggregate to more than twenty percent (20%) of its paid up andunimpaired capital and surplus plus twenty percent (20%) of its unimpairedundivided profits unless the bank is secured either by attached documents or bysome other actual security growing out of the same transaction. The aggregateamount of acceptances of letters of credit to any one (1) person or entityshall not at any time exceed the paid-up unimpaired capital and surplus andunimpaired undivided profits of the bank.

 

ARTICLE 5 - RECORDS

 

13-3-501. Retention generally.

 

Eachbank in this state shall retain its business records for the periods prescribedby W.S. 13-3-501 through 13-3-507. W.S. 13-3-501 through 13-3-507 apply tonational banks and trust companies where not in conflict with federal law, ruleor regulation.

 

13-3-502. Permanent records.

 

Eachbank shall permanently retain the minute books of meetings of its stockholdersand directors, its capital stock ledger and capital stock certificate ledger orstubs, its general ledger (or the record kept by the bank in lieu thereof), itsdaily statements of condition and all records which the state bankingcommissioner requires to be retained permanently.

 

13-3-503. Records retained 3 years.

 

Allbank records pertaining to other parties such as safekeeping and escrow recordsshall be retained for three (3) years after the completion of the transactionspertaining to the records.

 

13-3-504. Requirements of state banking commissioner.

 

Allother bank records shall be retained for the periods prescribed by the statebanking commissioner.

 

13-3-505. State banking commissioner to issue rules.

 

(a) The state banking commissioner shall issue rulesclassifying records kept by banks and prescribing the periods for which recordsof each class shall be retained. The rules shall be reviewed and considered forrevision at least once every five (5) years. When issuing rules the statebanking commissioner shall consider:

 

(i) Actions and administrative proceedings in which theproduction of bank records might be necessary or desirable;

 

(ii) State and federal statutes of limitation applicable toactions or proceedings;

 

(iii) The availability of information contained in bank recordsfrom other sources;

 

(iv) Other matters pertinent to the interests of bank customers,shareholders and the people of the state of Wyoming.

 

13-3-506. Duty to produce.

 

Afterthe period prescribed for the retention of records of its class the bank has noduty to produce the record in any action or proceeding if the records have beendisposed of.

 

13-3-507. Reproduction.

 

Anybank may cause any of its records including those held by it as a fiduciary, tobe photographed, microfilmed or otherwise reproduced in permanent form. Anyphotograph or reproduction has the same effect as the original and shall beadmitted in evidence in lieu of the original.

 

ARTICLE 6 - CERTIFIED CHECKS; NONPAYMENT OF INSTRUMENT

 

13-3-601. Renumbered as 2-1-203 by Laws 1979, ch. 142, 3.

 

13-3-602. Certified checks.

 

Theamount of any check certified shall immediately be charged to the drawer'saccount and credited to a certified check account from which the check ispayable.

 

13-3-603. Nonpayment of instrument when person influenced by alcoholor drugs.

 

Anybank may refuse to pay any check, draft or order upon it if the officers orowners of the bank have reason to believe that the person signing or endorsingthe instrument is or was so under the influence of alcohol or drugs as to makeit doubtful whether the person is or was capable of transacting business at thetime of signing or endorsing the instrument. No cause of action accrues againstthe bank by reason of the refusal of a bank or officer to pay an instrumentunder this section.

 

ARTICLE 7 - REPORTS AND EXAMINATIONS

 

13-3-701. Reports to state banking commissioner.

 

(a) Repealed By Laws 1998, ch. 64, 2.

 

(b) Repealed By Laws 1998, ch. 64, 2.

 

(c) Repealed By Laws 1998, ch. 64, 2.

 

(d) The state banking commissioner may call for special reportsverified under oath from any bank at any time as necessary to inform the statebanking commissioner of the condition of the bank.

 

(e) All reports required of financial institutions by thecommissioner under this act and all materials relating to examinations offinancial institutions under this act shall be subject to the provisions ofW.S. 9-1-512.

 

13-3-702. Inspection of banks; fees.

 

(a) Every bank is subject to the inspection of the statebanking commissioner. The state banking commissioner or a duly appointedexaminer shall visit and examine each bank as often as the commissioner deemsnecessary and at least as frequently as required by the federal depositinsurance corporation, with or without previous notice to the officers of oranyone interested in the bank. The state banking commissioner or a dulyappointed examiner shall make a complete and careful examination of thecondition and resources of the bank, the mode of managing bank affairs andconducting its business, the action of bank officers and directors in theinvestment and disposition of bank funds, the safety and prudence of bank management,the security afforded to those by whom bank engagements are held, whether therequirements of this act are being complied with and such other matters as thestate banking commissioner may prescribe. If the state banking commissionerexamines a bank more than twice in any calendar year, the bank shall pay to thestate banking commissioner an additional fee of fifty dollars ($50.00) perexaminer per day and actual expenses of each examiner.

 

(b) Repealed by Laws 1994, ch. 14, 2.

 

(c) On or before January 31 and July 31 each bank shall computeand pay supervisory fees to the state banking commissioner based on the totalasset base of the bank as of the preceding December 31 and June 30respectively. The supervisory fees are to provide for the generaladministration and operating costs of the office of the state bankingcommissioner for the administration of the laws and regulations governing thebanking industry generally. Such fees shall be established by regulation of thestate banking commissioner and shall be adjusted by regulations issued by thestate banking commissioner to assure consistency with the cost of supervisionand the fees paid by national banks. Other fees assessed for administrativeservices caused by applications or activities attributable to a specificfinancial institution or entity, shall be used to defray the cost of thespecial services and, to the extent possible, shall be recovered from thefinancial institution or entity which requires the special service.

 

13-3-703. Exchange with federal deposit insurance corporation andfederal reserve system authorized.

 

(a) The state banking commissioner may accept examinations ofbanks by or reports to the federal deposit insurance corporation or federalreserve system in lieu of examinations or reports required by this act.

 

(b) The state banking commissioner may furnish copies ofreports from and examinations of banks under state supervision and informationpossessed by the state banking commissioner with reference to the conditions ofaffairs of banks to the federal deposit insurance corporation or federalreserve system.

 

(c) The provisions of this section are in addition to otherprovisions of this act which authorize the commissioner to receive examinationor other reports or share examination or other reports with other banksupervisory agencies.

 

13-3-704. Repealed By Laws 1999, ch. 42, 3.

 

State Codes and Statutes

Statutes > Wyoming > Title13 > Chapter3

CHAPTER 3 - BANKING OPERATIONS

 

ARTICLE 1 - GENERALLY

 

13-3-101. Bond required of officers and employees.

 

Thestate banking commissioner may require all active officers and employees ofbanks to furnish a fidelity bond in duplicate in an amount to be fixed by thestate banking commissioner and written by a surety company authorized to dobusiness in Wyoming. One (1) copy of the bond shall be filed with the statebanking commissioner.

 

13-3-102. Loans to executive officers, directors, principalshareholders or others with ownership interests.

 

Nobank shall loan any of its funds to executive officers, directors or to anyperson owning or controlling ten percent (10%) or more of the bank's or itsbank holding company's voting ownership interests, or to any person in whichany of the executive officers, directors or owners or controllers areinterested except upon the written application of the person and then only withthe prior approval of a majority of the board of directors. The approval of theloan, if allowed, shall be made a part of the records of the directors'meeting.

 

13-3-103. Preference to depositors or creditors prohibited;exceptions.

 

Abank shall not give preference to any depositor or creditor by pledging the assetsof the bank as security except that the bank may qualify as depository forUnited States deposits, postal savings funds or other public funds by depositof the securities required by law and except as otherwise permitted by thisact.

 

13-3-104. Repealed By Laws 1999, ch. 42, 3.

 

ARTICLE 2 - RESTRICTED OPERATIONS

 

13-3-201. Acquisition of real estate.

 

(a) No bank shall purchase, hold, convey or lease real estateexcept for the following purposes:

 

(i) Real estate and buildings necessary to transact thebusiness of a bank including its banking offices and other premises in the samebuildings to rent as a source of income. The property shall not be carried onthe books of the bank as an asset in an amount in excess of one hundred percent(100%) of the bank's capital and surplus and, with the prior approval of thestate banking commissioner, undivided profits and reserve accounts. When anybank ceases to use the real estate and improvements for banking purposes, itshall, within five (5) years from the date of vacation of the premises, sellthe property;

 

(ii) Real estate which is purchased by or conveyed to the bankin satisfaction of or on account of debts previously contracted in the courseof its business;

 

(iii) Real estate which is purchased at execution sale oracquired by decree under securities held by it.

 

(b) Any real estate acquired as provided in subsections (a)(ii)and (iii) of this section shall be entered on the books as other real estate atnot more than acquisition cost, or appraised fair market value, whichever isless, shall be appraised at least every twenty-four (24) months, and shall besold within ten (10) years after title to the property is acquired. Any realestate acquired prior to July 1, 1992 shall be carried on the bank's books atthe lower of the bank's book value for that property as of July 1, 1992 orappraised value.

 

(i) Repealed by Laws 1992, ch. 46, 2.

 

(ii) Repealed by Laws 1992, ch. 46, 2.

 

(c) If any real estate is not sold within the time required inthis section, it shall not thereafter be carried as an asset of the bank. Thissection shall not apply to real estate purchased with funds other than thecapital and resources of the banking business nor to real estate held in trust.

 

(d) Any bank acquiring any real estate in any manner other thanas provided by this section shall immediately charge it to a reserve for lossesor to undivided profits.

 

(e) Any appraisal required under subsection (b) of this sectionfor property which is carried on the bank's books at a value equal to orexceeding fifty thousand dollars ($50,000.00) shall be conducted by a realestate appraiser certified or licensed by the state in which the property islocated, who is not an officer or director of the bank and whose reports areacceptable to the state banking commissioner.

 

(f) Any appraisal required under subsection (b) of this sectionmay be waived by the state banking commissioner upon written application fromthe bank.

 

13-3-202. Investment in stock of other corporations.

 

(a) No bank shall invest any of its assets in the capital stockof any other corporation except as follows:

 

(i) In the capital stock of a federal reserve bank;

 

(ii) In stock acquired to save a loss on a preexisting debtwhich shall be sold within twelve (12) months from the date acquired unless alonger period of time is permitted by the state banking commissioner;

 

(iii) In the stock of a small business investment company asdefined by the federal Small Business Investment Act of 1958 as amended;

 

(iv) In the stock of the federal national mortgage association;

 

(v) In the stock of a corporation formed solely for the purposeof making agricultural loans and borrowing or discounting loans from banks andassociations of the farm credit system as authorized in the Farm Credit Act of1971 (P.L. 92-181), subject to such conditions and limitations as the statebanking commissioner may prescribe;

 

(vi) In the stock of a bank service corporation pursuant to W.S.13-9-101;

 

(vii) In mutual fund shares whose underlying securities consistsolely of obligations of the United States treasury or other federal agencyobligations which are unconditionally guaranteed by the United Statesgovernment;

 

(viii) In the stock of a federal home loan bank established underthe Federal Home Loan Bank Act;

 

(ix) In the stock of an operating subsidiary in accordance withW.S. 13-3-204;

 

(x) In the stock of a bank engaged exclusively in providingservices to state or national banks or their subsidiary corporations, bankholding companies or their subsidiary corporations, or other financialinstitutions, hereinafter referred to as a "banker's bank," subjectto the following limitations:

 

(A) The investing bank may not acquire or retain ownership,control or power to vote more than five percent (5%) of any class of votingstock or securities of a banker's bank; and

 

(B) The investing bank may not invest in a banker's bank morethan ten percent (10%) of its capital stock and paid in and unimpaired surplus.

 

13-3-203. Borrowing.

 

(a) A bank may borrow on and pledge assets of the bank assecurity for temporary purposes. If it appears that any bank is habituallyborrowing for the purpose of reloaning the state banking commissioner mayrequire the bank to pay off the borrowed money. A bank is not prevented fromrediscounting in good faith and endorsing any of its negotiable notes.

 

(b) Repealed by Laws 1992, ch. 46, 2.

 

(c) No bank shall sell or rediscount "withoutrecourse" any notes or other negotiable securities on which the bank is inany way liable under purchase or guarantee agreements and any purchaser ofnotes or negotiable securities purchased "without recourse" shalllook to the maker or guarantor of the notes or negotiable securities only forpayment.

 

(d) Any bank may borrow money from a federal reserve bank orfederal home loan bank in the manner required by the rules, laws andregulations of the federal reserve banks or federal home loan bank, asapplicable. A bank borrowing pursuant to this section may pledge assets of thebank as security for the borrowing.

 

(e) Repealed by Laws 1992, ch. 46, 2.

 

(f) State chartered banks may engage in other borrowingactivities subject to approval of the commissioner.

 

13-3-204. Operating subsidiaries; application; fee; new activities.

 

(a) With prior written approval of the commissioner, a bank maypurchase for its own account the stock in a corporation to perform functionsthat are authorized for the bank or that are usual or incidental to the businessof banking, subject to the following conditions:

 

(i) The bank shall own or control eighty percent (80%) or moreof the voting stock of the subsidiary corporation;

 

(ii) No officer, director or shareholder of the bank or anyperson in a substantially similar controlling or governing position of its bankholding company shall otherwise have a direct or indirect pecuniary interest inthe subsidiary corporation;

 

(iii) All transactions between the bank and the subsidiary shallbe subject to any limitations and restrictions applicable under the laws ofthis state and the United States;

 

(iv) All provisions of banking law applicable to the operationsof the bank shall apply equally to the operations of the subsidiary;

 

(v) Each subsidiary shall be subject to examination andsupervision by the commissioner in the same manner and to the same extent asthe bank. If the commissioner determines the subsidiary is violating anyapplicable law or that operation of the subsidiary is adversely affecting thesafety and soundness of the bank, the commissioner may order the bank todispose of all or any part of the subsidiary upon such terms as thecommissioner deems appropriate or take any other appropriate administrativeaction authorized in this act.

 

(b) The bank shall file an application for permission tooperate a subsidiary with the commissioner, together with an application fee ofseven hundred dollars ($700.00). The fee shall be deposited as provided in W.S.13-2-210(b) and may be expended as provided in that subsection. The applicationshall include:

 

(i) The name and location of the subsidiary and the date thesubsidiary will commence operations;

 

(ii) A description of the activities and nature of the businessto be conducted at the subsidiary; and

 

(iii) A description of the nature of the bank's investment in thesubsidiary.

 

(c) The commissioner shall approve the application and issue acertificate of authority to operate the subsidiary to the bank within twenty(20) days after receipt of the completed application and fee unless thecommissioner finds:

 

(i) The proposed activity or activities to be performed at thesubsidiary are not activities the bank is authorized to perform and are notactivities that are usual or incidental to the business of banking; or

 

(ii) Operation of the subsidiary will adversely affect thesafety and soundness of the bank.

 

(d) With the prior approval of the commissioner, an approvedsubsidiary of a bank may engage in a new activity. The bank shall file awritten application for approval of the new activity with the commissioner inthe form prescribed by the commissioner. The commissioner shall approve theapplication in writing no later than twenty (20) days after receipt of theapplication if the commissioner finds that the proposed new activity is anactivity that is authorized for the bank or is usual or incidental to thebusiness of the bank and the proposed new activity will not adversely affectthe safety and soundness of the bank.

 

(e) Nothing in this section shall prohibit a bank fromestablishing and operating a subsidiary in a state other than Wyoming, providedthat the bank complies with all applicable provisions of Wyoming law, the lawof the state where the subsidiary will be located and federal law.

 

ARTICLE 3 - ACCOUNTING PRACTICES

 

13-3-301. Losses to be charged to surplus fund.

 

Anylosses sustained by a bank in excess of its undivided profits shall be chargedto its surplus fund. The surplus fund shall subsequently be reimbursed fromearnings. No dividends shall be declared or paid by any bank in excess ofone-half (1/2) of its net earnings until the surplus fund is fully restored toits former amount or an amount equal to one hundred percent (100%) of the paidup capital.

 

13-3-302. Bad debts.

 

Alldemand and matured debts due to any bank on which interest has not been paidfor a period of at least twelve (12) months, unless in the judgment of thestate banking commissioner the debts are well secured or are in the process ofcollection, are bad debts and shall be charged in whole or in part to thereserve for losses or to undivided profits upon instructions of the statebanking commissioner or any duly appointed examiner.

 

13-3-303. Value of stocks held.

 

Allinvestments in any bank in stocks of any corporation authorized by W.S.13-3-202 shall be entered on the books of the bank at a sum not to exceed theactual cost to the bank. The state banking commissioner may require an asset tobe charged down to its actual value.

 

13-3-304. Dividends.

 

(a) The board of directors may, quarterly, semiannually orannually, declare a dividend of so much of the net profits of the bank as theyjudge proper, except that no dividends shall be declared until the surplus fundof the bank equals its common capital unless there has been carried to thesurplus fund not less than ten percent (10%) of the bank's net profits of thepreceding six (6) consecutive months in the case of quarterly or semiannualdividends, or not less than ten percent (10%) of its net profits of the precedingtwelve (12) consecutive months in the case of annual dividends. For thepurposes of this section, any amounts paid into a fund for the retirement ofany preferred stock of any bank out of its net profits for such period aredeemed to be additions to its surplus fund if, upon retirement of the preferredstock, the amounts paid into the retirement fund may then properly be carriedto surplus. In such case, the bank is obligated to transfer to surplus theamounts paid into the retirement fund on account of the preferred stock as thestock is retired.

 

(b) The approval of the state banking commissioner is requiredif the total of all dividends declared by the bank in any calendar year shallexceed the total of its net profits of that year combined with its retained netprofits of the preceding two (2) years, less any required transfers to surplusor a fund for the retirement of any preferred stock.

 

(c) For the purpose of this section:

 

(i) "Net profits" means the net income or lossreported by a bank in its report of condition and income;

 

(ii) "Retained net profits" for any period shall beequal to the net income or loss reported in the report of condition and incomeless any common or preferred stock dividends declared or otherwise charged tothe undivided profits of the period for which the retained net profits arecomputed.

 

(d) No dividend shall be declared by the board of directors ofany bank which is operating under any form of regulatory action without priorwritten approval of the state banking commissioner.

 

ARTICLE 4 - RESTRICTED TRANSACTIONS

 

13-3-401. Real estate loans.

 

(a) Any bank may make real estate loans upon real estatesecured by a mortgage, deed of trust or other instrument of similar securitywhich comprises a lien upon the secured property. A bank may make a real estateloan or purchase these obligations in whole or in part at any time prior to thematurity of the obligation if the participation interest of the bank isadequately protected by the terms of the participation agreement.

 

(b) Real estate loans may be made in an amount not to exceedninety percent (90%) of the appraised value of the real estate offered assecurity for a term not longer than thirty (30) years if the loan is secured byan instrument under the terms of which the installment payments are sufficientto amortize the entire principal of the loan within the period ending on thematurity. Any loan may also be made in an amount not to exceed ninety-fivepercent (95%) of the appraised value of the real estate offered for security ifthe amount of the loan in excess of ninety percent (90%) is insured by amortgage insurance corporation authorized to transact business within the stateof Wyoming.

 

(i) Repealed by Laws 1983, ch. 20, 2.

 

(ii) Repealed by Laws 1983, ch. 20, 2.

 

(iii) Redesignated by Laws 1983, ch. 20, 1.

 

(c) The restrictions of this section shall not prevent therenewal or extension of loans previously made nor apply to liens on real estatetaken to secure a debt previously contracted in good faith and real estateloans to the extent that the loans are insured or guaranteed by an agency ofthe federal government for the payment of the obligations of which the fullfaith and credit of the United States is pledged. Any loans so insured orguaranteed, in whole or in part, may be made for the same period of time forwhich the guarantee may be made.

 

(d) Repealed By Laws 1996, ch. 54, 1.

 

(e) Repealed by Laws 1992, ch. 46, 2.

 

(f) The restrictions of this section shall not apply to realestate loans originated for the purpose of sale without recourse to afinancially responsible third party within a reasonable time.

 

13-3-402. Individual indebtedness limitations; generally.

 

(a) Except as otherwise provided, no bank shall permit anyperson, firm, partnership, association or corporation to become indebted at anytime to the bank in an amount exceeding twenty percent (20%) of the amount ofthe capital stock of the bank actually paid in and unimpaired plus twentypercent (20%) of its unimpaired surplus fund plus twenty percent (20%) of itsunimpaired undivided profits.

 

(b) As used in this section, W.S. 13-3-403 and 13-3-404,"loans or extensions of credit", "indebted" and"obligations" means the direct liability of the maker or acceptor ofpaper discounted with or sold to a bank and includes, but are not limited to,outstanding letters of credit and unfunded commitments. Indebtedness of apartnership includes the obligations of the several members thereofindividually and indebtedness of a corporation includes all obligations of allsubsidiaries thereof in which the corporation owns or controls a majorityinterest.

 

(c) The board of directors shall review and give prior approvalfor all combinations of indebtedness of affiliated persons, firms,partnerships, associations or corporations which exceed the limits permitted bysubsection (a) of this section. For purposes of this section"affiliated" means that twenty-five percent (25%) or more of eachentity is owned or controlled by a common principal.

 

13-3-403. Individual indebtedness limitations; exceptions generally.

 

(a) The limitation of W.S. 13-3-402 does not apply to thefollowing:

 

(i) Repealed by Laws 1992, ch. 46, 2.

 

(ii) Repealed by Laws 1992, ch. 46, 2.

 

(iii) Repealed by Laws 1992, ch. 46, 2.

 

(iv) Obligations in the form of banker's acceptances of otherbanks;

 

(v) Loans or extensions of credit secured by a segregateddeposit account in the lending bank, if a security interest has been perfectedin the assigned account and, in the case of a deposit eligible for withdrawalprior to the maturity of the secured loan, the bank has established internalprocedures which will prevent the release of the security;

 

(vi) Loans or extensions of credit secured by certificates ofindebtedness, bonds, notes or treasury bills of the United States or by otherdebts fully guaranteed as to principal and interest by the United Statesgovernment. Collateral values shall fully secure the loan or extension ofcredit at current market value, provided that should market value decline belowthat of the loan or extension of credit, that within ten (10) days of thatdecline, the limitations of W.S. 13-3-402 will then apply;

 

(vii) Loans or extensions of credit made in connection with alender credit card, as defined in W.S. 40-14-140(a)(ix) not exceeding fivethousand dollars ($5,000.00).

 

(b) Repealed by Laws 1992, ch. 46, 2.

 

(c) Repealed by Laws 1992, ch. 46, 2.

 

(d) Repealed By Laws 1998, ch. 106, 2.

 

13-3-404. Individual indebtedness limitations; exceptions generally;federal obligations.

 

(a) W.S. 13-3-402 and 13-3-403 do not restrict the making ofloans in excess of the limitations to the extent that the repayment ofprincipal and interest is:

 

(i) An obligation of the United States;

 

(ii) An obligation of entities in which national banks areauthorized to invest as established by rule and regulation of the commissioner;or

 

(iii) Guaranteed or insured by any agency of the federalgovernment for the payment of the obligations of which the full faith andcredit of the United States is pledged. These commitments shall beunconditional and shall be performed by payment of cash or its equivalentwithin three (3) months after demand.

 

13-3-405. Acceptance of drafts and bills of exchange.

 

(a) Drafts or bills of exchange, drawn upon a bank having notmore than six (6) months' sight to run, may be accepted by a bank. Letters ofcredit may be issued by a bank only if they are based upon actual commercial oragricultural transactions.

 

(b) No bank shall accept drafts or bills of exchange or issueletters of credit for any one (1) person or entity to an amount equal at anytime in the aggregate to more than twenty percent (20%) of its paid up andunimpaired capital and surplus plus twenty percent (20%) of its unimpairedundivided profits unless the bank is secured either by attached documents or bysome other actual security growing out of the same transaction. The aggregateamount of acceptances of letters of credit to any one (1) person or entityshall not at any time exceed the paid-up unimpaired capital and surplus andunimpaired undivided profits of the bank.

 

ARTICLE 5 - RECORDS

 

13-3-501. Retention generally.

 

Eachbank in this state shall retain its business records for the periods prescribedby W.S. 13-3-501 through 13-3-507. W.S. 13-3-501 through 13-3-507 apply tonational banks and trust companies where not in conflict with federal law, ruleor regulation.

 

13-3-502. Permanent records.

 

Eachbank shall permanently retain the minute books of meetings of its stockholdersand directors, its capital stock ledger and capital stock certificate ledger orstubs, its general ledger (or the record kept by the bank in lieu thereof), itsdaily statements of condition and all records which the state bankingcommissioner requires to be retained permanently.

 

13-3-503. Records retained 3 years.

 

Allbank records pertaining to other parties such as safekeeping and escrow recordsshall be retained for three (3) years after the completion of the transactionspertaining to the records.

 

13-3-504. Requirements of state banking commissioner.

 

Allother bank records shall be retained for the periods prescribed by the statebanking commissioner.

 

13-3-505. State banking commissioner to issue rules.

 

(a) The state banking commissioner shall issue rulesclassifying records kept by banks and prescribing the periods for which recordsof each class shall be retained. The rules shall be reviewed and considered forrevision at least once every five (5) years. When issuing rules the statebanking commissioner shall consider:

 

(i) Actions and administrative proceedings in which theproduction of bank records might be necessary or desirable;

 

(ii) State and federal statutes of limitation applicable toactions or proceedings;

 

(iii) The availability of information contained in bank recordsfrom other sources;

 

(iv) Other matters pertinent to the interests of bank customers,shareholders and the people of the state of Wyoming.

 

13-3-506. Duty to produce.

 

Afterthe period prescribed for the retention of records of its class the bank has noduty to produce the record in any action or proceeding if the records have beendisposed of.

 

13-3-507. Reproduction.

 

Anybank may cause any of its records including those held by it as a fiduciary, tobe photographed, microfilmed or otherwise reproduced in permanent form. Anyphotograph or reproduction has the same effect as the original and shall beadmitted in evidence in lieu of the original.

 

ARTICLE 6 - CERTIFIED CHECKS; NONPAYMENT OF INSTRUMENT

 

13-3-601. Renumbered as 2-1-203 by Laws 1979, ch. 142, 3.

 

13-3-602. Certified checks.

 

Theamount of any check certified shall immediately be charged to the drawer'saccount and credited to a certified check account from which the check ispayable.

 

13-3-603. Nonpayment of instrument when person influenced by alcoholor drugs.

 

Anybank may refuse to pay any check, draft or order upon it if the officers orowners of the bank have reason to believe that the person signing or endorsingthe instrument is or was so under the influence of alcohol or drugs as to makeit doubtful whether the person is or was capable of transacting business at thetime of signing or endorsing the instrument. No cause of action accrues againstthe bank by reason of the refusal of a bank or officer to pay an instrumentunder this section.

 

ARTICLE 7 - REPORTS AND EXAMINATIONS

 

13-3-701. Reports to state banking commissioner.

 

(a) Repealed By Laws 1998, ch. 64, 2.

 

(b) Repealed By Laws 1998, ch. 64, 2.

 

(c) Repealed By Laws 1998, ch. 64, 2.

 

(d) The state banking commissioner may call for special reportsverified under oath from any bank at any time as necessary to inform the statebanking commissioner of the condition of the bank.

 

(e) All reports required of financial institutions by thecommissioner under this act and all materials relating to examinations offinancial institutions under this act shall be subject to the provisions ofW.S. 9-1-512.

 

13-3-702. Inspection of banks; fees.

 

(a) Every bank is subject to the inspection of the statebanking commissioner. The state banking commissioner or a duly appointedexaminer shall visit and examine each bank as often as the commissioner deemsnecessary and at least as frequently as required by the federal depositinsurance corporation, with or without previous notice to the officers of oranyone interested in the bank. The state banking commissioner or a dulyappointed examiner shall make a complete and careful examination of thecondition and resources of the bank, the mode of managing bank affairs andconducting its business, the action of bank officers and directors in theinvestment and disposition of bank funds, the safety and prudence of bank management,the security afforded to those by whom bank engagements are held, whether therequirements of this act are being complied with and such other matters as thestate banking commissioner may prescribe. If the state banking commissionerexamines a bank more than twice in any calendar year, the bank shall pay to thestate banking commissioner an additional fee of fifty dollars ($50.00) perexaminer per day and actual expenses of each examiner.

 

(b) Repealed by Laws 1994, ch. 14, 2.

 

(c) On or before January 31 and July 31 each bank shall computeand pay supervisory fees to the state banking commissioner based on the totalasset base of the bank as of the preceding December 31 and June 30respectively. The supervisory fees are to provide for the generaladministration and operating costs of the office of the state bankingcommissioner for the administration of the laws and regulations governing thebanking industry generally. Such fees shall be established by regulation of thestate banking commissioner and shall be adjusted by regulations issued by thestate banking commissioner to assure consistency with the cost of supervisionand the fees paid by national banks. Other fees assessed for administrativeservices caused by applications or activities attributable to a specificfinancial institution or entity, shall be used to defray the cost of thespecial services and, to the extent possible, shall be recovered from thefinancial institution or entity which requires the special service.

 

13-3-703. Exchange with federal deposit insurance corporation andfederal reserve system authorized.

 

(a) The state banking commissioner may accept examinations ofbanks by or reports to the federal deposit insurance corporation or federalreserve system in lieu of examinations or reports required by this act.

 

(b) The state banking commissioner may furnish copies ofreports from and examinations of banks under state supervision and informationpossessed by the state banking commissioner with reference to the conditions ofaffairs of banks to the federal deposit insurance corporation or federalreserve system.

 

(c) The provisions of this section are in addition to otherprovisions of this act which authorize the commissioner to receive examinationor other reports or share examination or other reports with other banksupervisory agencies.

 

13-3-704. Repealed By Laws 1999, ch. 42, 3.

 


State Codes and Statutes

State Codes and Statutes

Statutes > Wyoming > Title13 > Chapter3

CHAPTER 3 - BANKING OPERATIONS

 

ARTICLE 1 - GENERALLY

 

13-3-101. Bond required of officers and employees.

 

Thestate banking commissioner may require all active officers and employees ofbanks to furnish a fidelity bond in duplicate in an amount to be fixed by thestate banking commissioner and written by a surety company authorized to dobusiness in Wyoming. One (1) copy of the bond shall be filed with the statebanking commissioner.

 

13-3-102. Loans to executive officers, directors, principalshareholders or others with ownership interests.

 

Nobank shall loan any of its funds to executive officers, directors or to anyperson owning or controlling ten percent (10%) or more of the bank's or itsbank holding company's voting ownership interests, or to any person in whichany of the executive officers, directors or owners or controllers areinterested except upon the written application of the person and then only withthe prior approval of a majority of the board of directors. The approval of theloan, if allowed, shall be made a part of the records of the directors'meeting.

 

13-3-103. Preference to depositors or creditors prohibited;exceptions.

 

Abank shall not give preference to any depositor or creditor by pledging the assetsof the bank as security except that the bank may qualify as depository forUnited States deposits, postal savings funds or other public funds by depositof the securities required by law and except as otherwise permitted by thisact.

 

13-3-104. Repealed By Laws 1999, ch. 42, 3.

 

ARTICLE 2 - RESTRICTED OPERATIONS

 

13-3-201. Acquisition of real estate.

 

(a) No bank shall purchase, hold, convey or lease real estateexcept for the following purposes:

 

(i) Real estate and buildings necessary to transact thebusiness of a bank including its banking offices and other premises in the samebuildings to rent as a source of income. The property shall not be carried onthe books of the bank as an asset in an amount in excess of one hundred percent(100%) of the bank's capital and surplus and, with the prior approval of thestate banking commissioner, undivided profits and reserve accounts. When anybank ceases to use the real estate and improvements for banking purposes, itshall, within five (5) years from the date of vacation of the premises, sellthe property;

 

(ii) Real estate which is purchased by or conveyed to the bankin satisfaction of or on account of debts previously contracted in the courseof its business;

 

(iii) Real estate which is purchased at execution sale oracquired by decree under securities held by it.

 

(b) Any real estate acquired as provided in subsections (a)(ii)and (iii) of this section shall be entered on the books as other real estate atnot more than acquisition cost, or appraised fair market value, whichever isless, shall be appraised at least every twenty-four (24) months, and shall besold within ten (10) years after title to the property is acquired. Any realestate acquired prior to July 1, 1992 shall be carried on the bank's books atthe lower of the bank's book value for that property as of July 1, 1992 orappraised value.

 

(i) Repealed by Laws 1992, ch. 46, 2.

 

(ii) Repealed by Laws 1992, ch. 46, 2.

 

(c) If any real estate is not sold within the time required inthis section, it shall not thereafter be carried as an asset of the bank. Thissection shall not apply to real estate purchased with funds other than thecapital and resources of the banking business nor to real estate held in trust.

 

(d) Any bank acquiring any real estate in any manner other thanas provided by this section shall immediately charge it to a reserve for lossesor to undivided profits.

 

(e) Any appraisal required under subsection (b) of this sectionfor property which is carried on the bank's books at a value equal to orexceeding fifty thousand dollars ($50,000.00) shall be conducted by a realestate appraiser certified or licensed by the state in which the property islocated, who is not an officer or director of the bank and whose reports areacceptable to the state banking commissioner.

 

(f) Any appraisal required under subsection (b) of this sectionmay be waived by the state banking commissioner upon written application fromthe bank.

 

13-3-202. Investment in stock of other corporations.

 

(a) No bank shall invest any of its assets in the capital stockof any other corporation except as follows:

 

(i) In the capital stock of a federal reserve bank;

 

(ii) In stock acquired to save a loss on a preexisting debtwhich shall be sold within twelve (12) months from the date acquired unless alonger period of time is permitted by the state banking commissioner;

 

(iii) In the stock of a small business investment company asdefined by the federal Small Business Investment Act of 1958 as amended;

 

(iv) In the stock of the federal national mortgage association;

 

(v) In the stock of a corporation formed solely for the purposeof making agricultural loans and borrowing or discounting loans from banks andassociations of the farm credit system as authorized in the Farm Credit Act of1971 (P.L. 92-181), subject to such conditions and limitations as the statebanking commissioner may prescribe;

 

(vi) In the stock of a bank service corporation pursuant to W.S.13-9-101;

 

(vii) In mutual fund shares whose underlying securities consistsolely of obligations of the United States treasury or other federal agencyobligations which are unconditionally guaranteed by the United Statesgovernment;

 

(viii) In the stock of a federal home loan bank established underthe Federal Home Loan Bank Act;

 

(ix) In the stock of an operating subsidiary in accordance withW.S. 13-3-204;

 

(x) In the stock of a bank engaged exclusively in providingservices to state or national banks or their subsidiary corporations, bankholding companies or their subsidiary corporations, or other financialinstitutions, hereinafter referred to as a "banker's bank," subjectto the following limitations:

 

(A) The investing bank may not acquire or retain ownership,control or power to vote more than five percent (5%) of any class of votingstock or securities of a banker's bank; and

 

(B) The investing bank may not invest in a banker's bank morethan ten percent (10%) of its capital stock and paid in and unimpaired surplus.

 

13-3-203. Borrowing.

 

(a) A bank may borrow on and pledge assets of the bank assecurity for temporary purposes. If it appears that any bank is habituallyborrowing for the purpose of reloaning the state banking commissioner mayrequire the bank to pay off the borrowed money. A bank is not prevented fromrediscounting in good faith and endorsing any of its negotiable notes.

 

(b) Repealed by Laws 1992, ch. 46, 2.

 

(c) No bank shall sell or rediscount "withoutrecourse" any notes or other negotiable securities on which the bank is inany way liable under purchase or guarantee agreements and any purchaser ofnotes or negotiable securities purchased "without recourse" shalllook to the maker or guarantor of the notes or negotiable securities only forpayment.

 

(d) Any bank may borrow money from a federal reserve bank orfederal home loan bank in the manner required by the rules, laws andregulations of the federal reserve banks or federal home loan bank, asapplicable. A bank borrowing pursuant to this section may pledge assets of thebank as security for the borrowing.

 

(e) Repealed by Laws 1992, ch. 46, 2.

 

(f) State chartered banks may engage in other borrowingactivities subject to approval of the commissioner.

 

13-3-204. Operating subsidiaries; application; fee; new activities.

 

(a) With prior written approval of the commissioner, a bank maypurchase for its own account the stock in a corporation to perform functionsthat are authorized for the bank or that are usual or incidental to the businessof banking, subject to the following conditions:

 

(i) The bank shall own or control eighty percent (80%) or moreof the voting stock of the subsidiary corporation;

 

(ii) No officer, director or shareholder of the bank or anyperson in a substantially similar controlling or governing position of its bankholding company shall otherwise have a direct or indirect pecuniary interest inthe subsidiary corporation;

 

(iii) All transactions between the bank and the subsidiary shallbe subject to any limitations and restrictions applicable under the laws ofthis state and the United States;

 

(iv) All provisions of banking law applicable to the operationsof the bank shall apply equally to the operations of the subsidiary;

 

(v) Each subsidiary shall be subject to examination andsupervision by the commissioner in the same manner and to the same extent asthe bank. If the commissioner determines the subsidiary is violating anyapplicable law or that operation of the subsidiary is adversely affecting thesafety and soundness of the bank, the commissioner may order the bank todispose of all or any part of the subsidiary upon such terms as thecommissioner deems appropriate or take any other appropriate administrativeaction authorized in this act.

 

(b) The bank shall file an application for permission tooperate a subsidiary with the commissioner, together with an application fee ofseven hundred dollars ($700.00). The fee shall be deposited as provided in W.S.13-2-210(b) and may be expended as provided in that subsection. The applicationshall include:

 

(i) The name and location of the subsidiary and the date thesubsidiary will commence operations;

 

(ii) A description of the activities and nature of the businessto be conducted at the subsidiary; and

 

(iii) A description of the nature of the bank's investment in thesubsidiary.

 

(c) The commissioner shall approve the application and issue acertificate of authority to operate the subsidiary to the bank within twenty(20) days after receipt of the completed application and fee unless thecommissioner finds:

 

(i) The proposed activity or activities to be performed at thesubsidiary are not activities the bank is authorized to perform and are notactivities that are usual or incidental to the business of banking; or

 

(ii) Operation of the subsidiary will adversely affect thesafety and soundness of the bank.

 

(d) With the prior approval of the commissioner, an approvedsubsidiary of a bank may engage in a new activity. The bank shall file awritten application for approval of the new activity with the commissioner inthe form prescribed by the commissioner. The commissioner shall approve theapplication in writing no later than twenty (20) days after receipt of theapplication if the commissioner finds that the proposed new activity is anactivity that is authorized for the bank or is usual or incidental to thebusiness of the bank and the proposed new activity will not adversely affectthe safety and soundness of the bank.

 

(e) Nothing in this section shall prohibit a bank fromestablishing and operating a subsidiary in a state other than Wyoming, providedthat the bank complies with all applicable provisions of Wyoming law, the lawof the state where the subsidiary will be located and federal law.

 

ARTICLE 3 - ACCOUNTING PRACTICES

 

13-3-301. Losses to be charged to surplus fund.

 

Anylosses sustained by a bank in excess of its undivided profits shall be chargedto its surplus fund. The surplus fund shall subsequently be reimbursed fromearnings. No dividends shall be declared or paid by any bank in excess ofone-half (1/2) of its net earnings until the surplus fund is fully restored toits former amount or an amount equal to one hundred percent (100%) of the paidup capital.

 

13-3-302. Bad debts.

 

Alldemand and matured debts due to any bank on which interest has not been paidfor a period of at least twelve (12) months, unless in the judgment of thestate banking commissioner the debts are well secured or are in the process ofcollection, are bad debts and shall be charged in whole or in part to thereserve for losses or to undivided profits upon instructions of the statebanking commissioner or any duly appointed examiner.

 

13-3-303. Value of stocks held.

 

Allinvestments in any bank in stocks of any corporation authorized by W.S.13-3-202 shall be entered on the books of the bank at a sum not to exceed theactual cost to the bank. The state banking commissioner may require an asset tobe charged down to its actual value.

 

13-3-304. Dividends.

 

(a) The board of directors may, quarterly, semiannually orannually, declare a dividend of so much of the net profits of the bank as theyjudge proper, except that no dividends shall be declared until the surplus fundof the bank equals its common capital unless there has been carried to thesurplus fund not less than ten percent (10%) of the bank's net profits of thepreceding six (6) consecutive months in the case of quarterly or semiannualdividends, or not less than ten percent (10%) of its net profits of the precedingtwelve (12) consecutive months in the case of annual dividends. For thepurposes of this section, any amounts paid into a fund for the retirement ofany preferred stock of any bank out of its net profits for such period aredeemed to be additions to its surplus fund if, upon retirement of the preferredstock, the amounts paid into the retirement fund may then properly be carriedto surplus. In such case, the bank is obligated to transfer to surplus theamounts paid into the retirement fund on account of the preferred stock as thestock is retired.

 

(b) The approval of the state banking commissioner is requiredif the total of all dividends declared by the bank in any calendar year shallexceed the total of its net profits of that year combined with its retained netprofits of the preceding two (2) years, less any required transfers to surplusor a fund for the retirement of any preferred stock.

 

(c) For the purpose of this section:

 

(i) "Net profits" means the net income or lossreported by a bank in its report of condition and income;

 

(ii) "Retained net profits" for any period shall beequal to the net income or loss reported in the report of condition and incomeless any common or preferred stock dividends declared or otherwise charged tothe undivided profits of the period for which the retained net profits arecomputed.

 

(d) No dividend shall be declared by the board of directors ofany bank which is operating under any form of regulatory action without priorwritten approval of the state banking commissioner.

 

ARTICLE 4 - RESTRICTED TRANSACTIONS

 

13-3-401. Real estate loans.

 

(a) Any bank may make real estate loans upon real estatesecured by a mortgage, deed of trust or other instrument of similar securitywhich comprises a lien upon the secured property. A bank may make a real estateloan or purchase these obligations in whole or in part at any time prior to thematurity of the obligation if the participation interest of the bank isadequately protected by the terms of the participation agreement.

 

(b) Real estate loans may be made in an amount not to exceedninety percent (90%) of the appraised value of the real estate offered assecurity for a term not longer than thirty (30) years if the loan is secured byan instrument under the terms of which the installment payments are sufficientto amortize the entire principal of the loan within the period ending on thematurity. Any loan may also be made in an amount not to exceed ninety-fivepercent (95%) of the appraised value of the real estate offered for security ifthe amount of the loan in excess of ninety percent (90%) is insured by amortgage insurance corporation authorized to transact business within the stateof Wyoming.

 

(i) Repealed by Laws 1983, ch. 20, 2.

 

(ii) Repealed by Laws 1983, ch. 20, 2.

 

(iii) Redesignated by Laws 1983, ch. 20, 1.

 

(c) The restrictions of this section shall not prevent therenewal or extension of loans previously made nor apply to liens on real estatetaken to secure a debt previously contracted in good faith and real estateloans to the extent that the loans are insured or guaranteed by an agency ofthe federal government for the payment of the obligations of which the fullfaith and credit of the United States is pledged. Any loans so insured orguaranteed, in whole or in part, may be made for the same period of time forwhich the guarantee may be made.

 

(d) Repealed By Laws 1996, ch. 54, 1.

 

(e) Repealed by Laws 1992, ch. 46, 2.

 

(f) The restrictions of this section shall not apply to realestate loans originated for the purpose of sale without recourse to afinancially responsible third party within a reasonable time.

 

13-3-402. Individual indebtedness limitations; generally.

 

(a) Except as otherwise provided, no bank shall permit anyperson, firm, partnership, association or corporation to become indebted at anytime to the bank in an amount exceeding twenty percent (20%) of the amount ofthe capital stock of the bank actually paid in and unimpaired plus twentypercent (20%) of its unimpaired surplus fund plus twenty percent (20%) of itsunimpaired undivided profits.

 

(b) As used in this section, W.S. 13-3-403 and 13-3-404,"loans or extensions of credit", "indebted" and"obligations" means the direct liability of the maker or acceptor ofpaper discounted with or sold to a bank and includes, but are not limited to,outstanding letters of credit and unfunded commitments. Indebtedness of apartnership includes the obligations of the several members thereofindividually and indebtedness of a corporation includes all obligations of allsubsidiaries thereof in which the corporation owns or controls a majorityinterest.

 

(c) The board of directors shall review and give prior approvalfor all combinations of indebtedness of affiliated persons, firms,partnerships, associations or corporations which exceed the limits permitted bysubsection (a) of this section. For purposes of this section"affiliated" means that twenty-five percent (25%) or more of eachentity is owned or controlled by a common principal.

 

13-3-403. Individual indebtedness limitations; exceptions generally.

 

(a) The limitation of W.S. 13-3-402 does not apply to thefollowing:

 

(i) Repealed by Laws 1992, ch. 46, 2.

 

(ii) Repealed by Laws 1992, ch. 46, 2.

 

(iii) Repealed by Laws 1992, ch. 46, 2.

 

(iv) Obligations in the form of banker's acceptances of otherbanks;

 

(v) Loans or extensions of credit secured by a segregateddeposit account in the lending bank, if a security interest has been perfectedin the assigned account and, in the case of a deposit eligible for withdrawalprior to the maturity of the secured loan, the bank has established internalprocedures which will prevent the release of the security;

 

(vi) Loans or extensions of credit secured by certificates ofindebtedness, bonds, notes or treasury bills of the United States or by otherdebts fully guaranteed as to principal and interest by the United Statesgovernment. Collateral values shall fully secure the loan or extension ofcredit at current market value, provided that should market value decline belowthat of the loan or extension of credit, that within ten (10) days of thatdecline, the limitations of W.S. 13-3-402 will then apply;

 

(vii) Loans or extensions of credit made in connection with alender credit card, as defined in W.S. 40-14-140(a)(ix) not exceeding fivethousand dollars ($5,000.00).

 

(b) Repealed by Laws 1992, ch. 46, 2.

 

(c) Repealed by Laws 1992, ch. 46, 2.

 

(d) Repealed By Laws 1998, ch. 106, 2.

 

13-3-404. Individual indebtedness limitations; exceptions generally;federal obligations.

 

(a) W.S. 13-3-402 and 13-3-403 do not restrict the making ofloans in excess of the limitations to the extent that the repayment ofprincipal and interest is:

 

(i) An obligation of the United States;

 

(ii) An obligation of entities in which national banks areauthorized to invest as established by rule and regulation of the commissioner;or

 

(iii) Guaranteed or insured by any agency of the federalgovernment for the payment of the obligations of which the full faith andcredit of the United States is pledged. These commitments shall beunconditional and shall be performed by payment of cash or its equivalentwithin three (3) months after demand.

 

13-3-405. Acceptance of drafts and bills of exchange.

 

(a) Drafts or bills of exchange, drawn upon a bank having notmore than six (6) months' sight to run, may be accepted by a bank. Letters ofcredit may be issued by a bank only if they are based upon actual commercial oragricultural transactions.

 

(b) No bank shall accept drafts or bills of exchange or issueletters of credit for any one (1) person or entity to an amount equal at anytime in the aggregate to more than twenty percent (20%) of its paid up andunimpaired capital and surplus plus twenty percent (20%) of its unimpairedundivided profits unless the bank is secured either by attached documents or bysome other actual security growing out of the same transaction. The aggregateamount of acceptances of letters of credit to any one (1) person or entityshall not at any time exceed the paid-up unimpaired capital and surplus andunimpaired undivided profits of the bank.

 

ARTICLE 5 - RECORDS

 

13-3-501. Retention generally.

 

Eachbank in this state shall retain its business records for the periods prescribedby W.S. 13-3-501 through 13-3-507. W.S. 13-3-501 through 13-3-507 apply tonational banks and trust companies where not in conflict with federal law, ruleor regulation.

 

13-3-502. Permanent records.

 

Eachbank shall permanently retain the minute books of meetings of its stockholdersand directors, its capital stock ledger and capital stock certificate ledger orstubs, its general ledger (or the record kept by the bank in lieu thereof), itsdaily statements of condition and all records which the state bankingcommissioner requires to be retained permanently.

 

13-3-503. Records retained 3 years.

 

Allbank records pertaining to other parties such as safekeeping and escrow recordsshall be retained for three (3) years after the completion of the transactionspertaining to the records.

 

13-3-504. Requirements of state banking commissioner.

 

Allother bank records shall be retained for the periods prescribed by the statebanking commissioner.

 

13-3-505. State banking commissioner to issue rules.

 

(a) The state banking commissioner shall issue rulesclassifying records kept by banks and prescribing the periods for which recordsof each class shall be retained. The rules shall be reviewed and considered forrevision at least once every five (5) years. When issuing rules the statebanking commissioner shall consider:

 

(i) Actions and administrative proceedings in which theproduction of bank records might be necessary or desirable;

 

(ii) State and federal statutes of limitation applicable toactions or proceedings;

 

(iii) The availability of information contained in bank recordsfrom other sources;

 

(iv) Other matters pertinent to the interests of bank customers,shareholders and the people of the state of Wyoming.

 

13-3-506. Duty to produce.

 

Afterthe period prescribed for the retention of records of its class the bank has noduty to produce the record in any action or proceeding if the records have beendisposed of.

 

13-3-507. Reproduction.

 

Anybank may cause any of its records including those held by it as a fiduciary, tobe photographed, microfilmed or otherwise reproduced in permanent form. Anyphotograph or reproduction has the same effect as the original and shall beadmitted in evidence in lieu of the original.

 

ARTICLE 6 - CERTIFIED CHECKS; NONPAYMENT OF INSTRUMENT

 

13-3-601. Renumbered as 2-1-203 by Laws 1979, ch. 142, 3.

 

13-3-602. Certified checks.

 

Theamount of any check certified shall immediately be charged to the drawer'saccount and credited to a certified check account from which the check ispayable.

 

13-3-603. Nonpayment of instrument when person influenced by alcoholor drugs.

 

Anybank may refuse to pay any check, draft or order upon it if the officers orowners of the bank have reason to believe that the person signing or endorsingthe instrument is or was so under the influence of alcohol or drugs as to makeit doubtful whether the person is or was capable of transacting business at thetime of signing or endorsing the instrument. No cause of action accrues againstthe bank by reason of the refusal of a bank or officer to pay an instrumentunder this section.

 

ARTICLE 7 - REPORTS AND EXAMINATIONS

 

13-3-701. Reports to state banking commissioner.

 

(a) Repealed By Laws 1998, ch. 64, 2.

 

(b) Repealed By Laws 1998, ch. 64, 2.

 

(c) Repealed By Laws 1998, ch. 64, 2.

 

(d) The state banking commissioner may call for special reportsverified under oath from any bank at any time as necessary to inform the statebanking commissioner of the condition of the bank.

 

(e) All reports required of financial institutions by thecommissioner under this act and all materials relating to examinations offinancial institutions under this act shall be subject to the provisions ofW.S. 9-1-512.

 

13-3-702. Inspection of banks; fees.

 

(a) Every bank is subject to the inspection of the statebanking commissioner. The state banking commissioner or a duly appointedexaminer shall visit and examine each bank as often as the commissioner deemsnecessary and at least as frequently as required by the federal depositinsurance corporation, with or without previous notice to the officers of oranyone interested in the bank. The state banking commissioner or a dulyappointed examiner shall make a complete and careful examination of thecondition and resources of the bank, the mode of managing bank affairs andconducting its business, the action of bank officers and directors in theinvestment and disposition of bank funds, the safety and prudence of bank management,the security afforded to those by whom bank engagements are held, whether therequirements of this act are being complied with and such other matters as thestate banking commissioner may prescribe. If the state banking commissionerexamines a bank more than twice in any calendar year, the bank shall pay to thestate banking commissioner an additional fee of fifty dollars ($50.00) perexaminer per day and actual expenses of each examiner.

 

(b) Repealed by Laws 1994, ch. 14, 2.

 

(c) On or before January 31 and July 31 each bank shall computeand pay supervisory fees to the state banking commissioner based on the totalasset base of the bank as of the preceding December 31 and June 30respectively. The supervisory fees are to provide for the generaladministration and operating costs of the office of the state bankingcommissioner for the administration of the laws and regulations governing thebanking industry generally. Such fees shall be established by regulation of thestate banking commissioner and shall be adjusted by regulations issued by thestate banking commissioner to assure consistency with the cost of supervisionand the fees paid by national banks. Other fees assessed for administrativeservices caused by applications or activities attributable to a specificfinancial institution or entity, shall be used to defray the cost of thespecial services and, to the extent possible, shall be recovered from thefinancial institution or entity which requires the special service.

 

13-3-703. Exchange with federal deposit insurance corporation andfederal reserve system authorized.

 

(a) The state banking commissioner may accept examinations ofbanks by or reports to the federal deposit insurance corporation or federalreserve system in lieu of examinations or reports required by this act.

 

(b) The state banking commissioner may furnish copies ofreports from and examinations of banks under state supervision and informationpossessed by the state banking commissioner with reference to the conditions ofaffairs of banks to the federal deposit insurance corporation or federalreserve system.

 

(c) The provisions of this section are in addition to otherprovisions of this act which authorize the commissioner to receive examinationor other reports or share examination or other reports with other banksupervisory agencies.

 

13-3-704. Repealed By Laws 1999, ch. 42, 3.

 

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