H. B. 4130


(By Delegates Williams, Phillips, H. White,
Harrison and Rutledge)

[Introduced January 25, 1994; referred to the
Committee on Banking and Insurance.]



A BILL to amend and reenact section forty, article four, chapter thirty-one-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to banking institutions and services generally; and the procedures for permissive closing of banking institutions.
Be it enacted by the Legislature of West Virginia:

That section forty, article four, chapter thirty-one-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 4. BANKING INSTITUTIONS AND SERVICES GENERALLY.

§ 31A - 4 - 40. Permissive closing on fixed weekday or portions of weekdays; emergency closings; procedures.

(a) In addition to Sundays and legal holidays any banking institution may remain closed on any one fixed weekday or portion of such a day in each calendar week, or on any one fixed weekday and a portion of another weekday in each calendar week, or on portions of two weekdays in each calendar week, which day and/or portion or portions of the day or days when the institution is to remain closed shall be designated by a resolution adopted by the board of directors thereof. Not less than fifteen nor more than thirty days in advance of closing on any such weekday and/or portion of one or more weekdays, such The banking institution shall post a notice in a conspicuous place in its banking room stating that on or after a day certain and until further notice given in like manner, such the banking institution will remain closed on a fixed weekday and/or portion of one or more weekdays thereof. Concurrently with the posting of such the notice of closure, such the banking institution shall cause a notice to be published as a Class II legal advertisement in compliance with the provisions of article three, chapter fifty-nine of this code, and the publication area for such the publication shall be the county in which the principal office of such the bank is located. Such The notice shall set forth the time or times on which said the bank will remain closed and the date when such the closing becomes effective. A certified copy of such the resolution certified by the cashier or secretary of such the banking institution, together with an affidavit of posting and proof of publication of the notice herein required shall be filed with the commissioner of banking.

(b) The commissioner may permit any banking institution to close, without notice, during any period of actual or threatened enemy attack affecting the community in which such the banking institution is located or during any period of other emergency including, but not limited to, fire, flood, hurricane, riot or civil commotion.
(c) Any fixed weekday and/or portion of one or more weekdays on which any banking institution shall elect to close and any period during which the commissioner may permit it to close pursuant to the authority of this section shall constitute a legal holiday with respect to such the banking institution and not a business day or banking day for the purposes of the law relating to negotiable instruments, and any act or contract authorized, required or permitted to be carried out or performed at, by or with respect to such the banking institution may be performed on the next business or banking day, and no liability or loss of rights on the part of any person or banking institution shall result therefrom.



NOTE: The purpose of this bill is to change the procedures banking institutions must follow to effect a permissive closing on one or more fixed weekdays or a portion or portions of a weekday.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.