Revision: Nov. 6, 2017, 1:05 p.m.
HB 1487 - AS INTRODUCED
2018 SESSION
18-2505
03/01
HOUSE BILL 1487
AN ACT relative to banks and credit unions.
SPONSORS: Rep. Biggie, Hills. 23
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill requires the fidelity bond and errors and omissions liability insurance maintained by banks and credit unions be issued by an insurer licensed under New Hampshire law. This bill also makes technical corrections.
This bill was requested by the banking department.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2505
03/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to banks and credit unions.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Examination Costs; Reference Change. Amend RSA 383:11, II(a)(8) to read as follows:
(8) For purposes of this section, "fiduciary assets'' means those assets reported in accordance with RSA [383-A:5-511] 383-A:5-510, except that the term excludes any fiduciary asset that the entity holds, manages, or administers under an agreement with a New Hampshire family trust company.
2 Bank and Credit Union Act; Fidelity Bond. Amend RSA 383-A:4-405(a) to read as follows:
(a) A state bank or credit union shall maintain a fidelity bond that provides protection against losses from (i) any dishonest or criminal act of any person, including any of its directors, officers, employees, and agents, and (ii) any act such as robbery, burglary, or forgery by a person not associated with the bank. The fidelity bond shall be issued by an insurer licensed under New Hampshire law. The board of directors shall review the fidelity bond annually, or more often as circumstances require, to evaluate the adequacy of the amount of coverage. A bank or credit union shall give notice to the commissioner if the coverage is decreased by 25 percent or more under RSA 383-A:6-602.
3 Bank and Credit Union Act; Errors and Omissions Liability Insurance. Amend RSA 383-A:4-406(a) to read as follows:
(a) A state bank or credit union shall maintain a liability policy that insures against losses that any of its customers incurs by reason of the errors and omissions of the state bank or credit union or any of its directors, officers, employees, and agents. The errors and omissions liability insurance shall be issued by an insurer licensed under New Hampshire law. The board of directors shall review the liability policy annually, or as circumstances require, to evaluate the adequacy of coverage. A bank or credit union shall give notice to the commissioner if coverage is decreased by 25 percent or more under RSA 383-A:6-602.
4 Depository Bank Act; Loan Production Offices. Amend RSA 383-B:7-704 to read as follows:
383-B:7-704 Loan Production Offices. A depository bank and foreign bank that is authorized to make loans may engage in the business of loan production [in this state]. A loan production office is any place of business located within this state at which the bank engages solely in activities relating to loan production. A loan production office is not a branch office. A depository bank or foreign bank shall provide the commissioner with written notice of its intent to establish or relocate a loan production office under RSA 383-A:6-602 and may proceed to establish a loan production office after filing the notice without further action by the commissioner.
5 Effective Date. This act shall take effect 60 days after its passage.