H. B. 4299
(By Delegates Ron Thompson, Frich,
Hrutkay, Perry, H. White, Beach, Marshall,
Hamilton, G. White and Iaquinta)
[Introduced January 31, 2006; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §31A-2-8a, relating
to the authority of the Commissioner of Banking to enter into
contracts with depository institutions to provide loan review
services; and providing that funds obtained from contracts for
loan review services are treated the same as bank assessment
funds.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §31A-2-8a, to read as
follows:
ARTICLE 2. DIVISION OF BANKING.
§31A-2-8a. Contract for loan review services.
(a)(1) The commissioner is authorized to enter into contracts
to provide loan review services through the use of division
personnel to any federally insured depository institutions that may want to obtain the services.
(2) Notwithstanding subdivision (1) of this subsection:
(A) Neither the commissioner nor his or her delegate may
assign an individual who has participated in any part of a safety
and soundness examination or visitation of a particular depository
institution in the previous two years to provide the loan review
services under such a contract with that institution;
(B) Neither the commissioner nor his or her delegate may
assign an individual to participate in a safety and soundness
examination or visitation of a depository institution for a period
of two examination cycles after that same individual provided
contracted loan review services to that institution.
(3) This section does not require any federally insured
depository institutions to obtain loan review services through
contracts with the division.
(b) Any funds received pursuant to contracts authorized by
subsection (a) of this section shall be deposited in the same
special revenue account established for bank assessment funds
pursuant to section eight of this article and is subject to all
provisions contained in that section.
NOTE: The purpose of this bill is to
authorize the
Commissioner of Banking to enter into contracts with federally
insured depository institutions to provide loan review services by
Division of Banking employees.
This section is new; therefore, strike-throughs and underscoring have been omitted.