SSB 1021

This bill relates to matters under the purview of the banking division of the department of commerce, including permissible investments, notice requirements, and requirements for a person obtaining control of a state bank.141. The bill provides that a person obtaining control of a state bank shall not jeopardize the interests of the bank, including the state bank’s plans to accept deposits, lend money, and process payments in the area that the state bank primarily serves. The bill provides that a state bank may invest up to percent of its aggregate capital in tax equity financing transactions that fund projects that generate tax credits. The state bank shall be a passive investor in the project but may take a majority financial position. The investment in a tax credit project is subject to certain restrictions, including that the state bank shall repay the bank’s investment and provide the expected rate of return.901(7)(a) shall be limited to percent of the bank’s aggregate capital. Current law provides that a bank is limited to percent of the bank’s aggregate capital.901(11), which allows a state bank to invest up to percent of its aggregate capital in innovative financial technology products or services.