Bill Text: MS HB1263 | 2026 | Regular Session | Engrossed
Bill Title: Banks; modernize approval process for certain requirement related to.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2026-03-03 - Died In Committee [HB1263 Detail]
Download: Mississippi-2026-HB1263-Engrossed.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Banking and Financial Services
By: Representative Aguirre
House Bill 1263
(As Passed the House)
AN ACT TO AMEND SECTION 81-3-15, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT RENEWALS OR AMENDMENTS TO A CHARTER OR ARTICLES OF INCORPORATION OF BANKING CORPORATIONS SHALL BE SENT DIRECTLY TO THE SECRETARY OF STATE UPON BEING APPROVED BY THE COMMISSIONER AND DO NOT REQUIRE APPROVAL FROM THE ATTORNEY GENERAL; TO AMEND SECTION 81-5-75, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A BANK TO DECLARE AND PAY DIVIDENDS NOT INCONSISTENT WITH THE BANK'S ARTICLES OF INCORPORATION OR BYLAWS; TO REQUIRE PRIOR WRITTEN APPROVAL OF THE COMMISSIONER ONLY WHEN CERTAIN CONDITIONS EXIST; TO AMEND SECTION 81-5-100, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT PRIOR APPROVAL OF THE COMMISSIONER IS NOT REQUIRED FOR A STATE BANK OR THRIFT TO ESTABLISH OR DECOMMISSION ELECTRONIC TERMINALS; TO CREATE NEW SECTION 81-5-26, MISSISSIPPI CODE OF 1972, TO AUTHORIZE INVESTMENTS BY STATE CHARTERED FINANCIAL INSTITUTIONS IN COMMUNITY AND ECONOMIC DEVELOPMENT ENTITIES, COMMUNITY DEVELOPMENT PROJECTS AND OTHER PUBLIC WELFARE INVESTMENTS; TO AMEND SECTION 81-5-85, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 81-3-15, Mississippi Code of 1972, is amended as follows:
81-3-15. The charter or articles of incorporation of banking corporations heretofore created or that may hereafter be created, may be renewed or amended in the following manner:
The stockholders in a
special or regular meeting, shall first, by a vote of a majority in amount of
all stock outstanding, adopt a resolution setting forth the proposed renewal or
amendment, subject to the approval of the * * * commissioner. Three (3)
copies of such resolution duly certified by the president or vice-president of
such bank shall be forwarded to the * * * commissioner for his or
her approval, together with the fee required by statute. If the proposed
amendment is approved by the * * * commissioner, he or
she shall attach his or her certificate of approval to each of the
copies and forward all three (3) copies * * * and * * * the fee required by statute to
the Secretary of State. * * * If and when approved by the Attorney General, all three copies of said
amendment shall be forwarded to the Governor for his approval, and when
approved by him shall be forwarded by the Governor to the Secretary of State.
The Secretary of State shall retain one (1) copy and file and record the
same in his or her office. He or she shall forward one (1)
copy thereof to the * * * commissioner, who shall retain and file the same
in his or her office. The remaining copy shall be returned to the bank,
and the bank shall immediately record the same in the office of the chancery
clerk of the county in which the bank is domiciled. * * * Such copy, after being so
recorded, shall be returned to the bank and retained by it in its files. It
shall not be necessary to publish such renewal or amendment.
SECTION 2. Section 81-5-75, Mississippi Code of 1972, is amended as follows:
81-5-75. * * * A state bank may, from time to
time, declare and pay dividends not inconsistent with the bank's articles of
incorporation or bylaws. However, prior written approval of the commissioner
is required if any of the following conditions exist:
(a) The bank is subject to a corrective plan or enforcement action; or
(b) After making the dividend, the bank would be undercapitalized. The definition of "undercapitalized" shall be consistent with the definition used by the applicable federal regulatory agency; or
(c) The commissioner has determined that conditions exist at the bank, posing a risk to its safety and soundness. Directors declaring a dividend in violation of the provisions of this section shall be personally liable to the full amount of the dividend so declared and it shall be the duty of the commissioner, upon discovering the payment of any such dividend, to forthwith make demand upon the directors that the same be restored to the bank, and upon their failure so to do he shall cause suit to be brought against them in the chancery court of the county in which the bank is located, either in his name or in the name of the bank, to recover the same for the benefit of the bank.
SECTION 3. Section 81-5-100, Mississippi Code of 1972, is amended as follows:
81-5-100. (1) For the purposes of this section, the following words shall have the meaning herein described unless the context shall otherwise require:
(a) "Electronic
terminal" means an * * *unmanned electronic device owned or operated by a federally insured bank
or thrift through which a consumer may initiate an electronic fund transfer
automated, virtually staffed or unstaffed banking facility owned or operated
by, or operated exclusively for, a federally insured bank or thrift, such as an
automated teller machine (ATM), interactive teller machine (ITM), cash dispensing
machine or other remote electronic terminal, that is open to the general public
and at which deposits are accepted, cash dispersed, money lent or an electronic
fund transfer is initiated. An "electronic terminal" is not a
"branch" within the meaning of Title 81, Mississippi Code of 1972,
and is not subject to state licensing requirements.
(b) "Electronic fund transfer" means any of the following:
(i) The withdrawal
of cash from or the deposit of cash or checks into an * * * electronic
terminal, such as an * * *automatic automated teller machine, but not including
night depositories;
(ii) An
application for or acceptance of a loan through use of an * * * electronic
terminal;
(iii) The transfer
of funds between accounts through use of an * * * electronic
terminal; or
(iv) The issuance
of a check by an * * * electronic terminal.
(c) "Electronic fund transfer" does not mean access to accounts, the application for or acceptance of a loan, the transfer of funds between accounts or other banking services accomplished through the use of a personal computer or telephone.
(d) "Interactive teller machine" or "ITM" means an automated, virtually staffed or unstaffed facility, owned or operated by, or operated exclusively for, a federally insured bank or thrift, and equipped with video-based interactive technology allowing customers to conduct transactions and financial services driven by a centrally based teller, in a real time video or audio interaction.
(2) * * * The establishment of electronic terminals
are matters to be determined by a state bank or thrift in its discretion,
according to sound banking judgment and safe and sound banking principles. No prior approval of the commissioner is required for a
state bank or thrift * * *
to establish or decommission electronic terminals.
* * *
( * * *3) For the use of its electronic
terminals connected to sharing networks or systems, a bank may impose a fee if
imposition of the fee is disclosed at a time and in a manner that allows a user
to terminate or cancel the transaction without incurring the transaction fee. * * *
Because this power is an inherent element of a state bank's authority to
conduct the business of banking, the setting or changing of such fee amount is
a matter to be determined by a state bank or thrift in its discretion,
according to sound banking judgment and safe and sound banking principles.
An agreement to share electronic terminals shall not prohibit, limit or restrict the right of a bank to charge such fees for the use of its electronic terminals as allowed by state or federal law, or require a bank to limit or waive its rights or obligations under this section.
SECTION 4. The following shall be codified as Section 81-5-26, Mississippi Code of 1972:
81-5-26. Community and economic development entities, community development projects, and other public welfare investments as legal investments.
Investments in community and economic development entities, community development projects, and other public welfare investments as described in 12 USC 24 (Eleventh) and 12 CFR Part 24, and any amendments thereto, shall be legal investments for state chartered banks and trust companies, to the same extent that such are authorized investments for national banks under 12 USC 24 (Eleventh) and 12 CFR Part 24, and any amendments thereto. Required notifications and approval requests shall be submitted to the Department of Banking and Consumer Finance, except that "eligible banks" as defined in Section 81-3-1 shall be exempt from any notification requirements and approval requests.
SECTION 5. Section 81-5-85, Mississippi Code of 1972, is amended as follows:
81-5-85. A bank chartered
by the State of Mississippi, may, with the approval of the commissioner, enter
into a business combination with another bank, savings bank, savings and loan
association or other entity, on such terms and conditions, as may be lawfully
agreed upon, adopted and approved in a plan of merger or share exchange in
accordance with Article 11, Chapter 4 of Title 79, Mississippi Code of
1972, and provided that the survivor is a financial institution insured by the
Federal Deposit Insurance Corporation. Following receipt of the required
corporate approvals and approval of the plan of merger or share exchange plan
by the commissioner, the resulting amendments to charters of the survivor shall
be approved and filed * * * in accordance with
Section 81-3-15. The capital stock of the survivor shall not be less than that
required under applicable law for the survivor. And all the rights, franchises
and interests of the institutions so consolidated in and to every species of
property, personal and mixed, and choses in action thereto belonging, shall be
deemed to be transferred to and vested in such survivor without any deed or
other transfer, and the said survivor shall hold and enjoy the same and all
rights of property, franchises and interests in the same manner and to the same
extent as were held and enjoyed by the institutions so combined.
A bank chartered by the State of Mississippi may, with the approval of the commissioner, sell or transfer all, or substantially all, of its assets, liabilities, and businesses only to another bank, savings bank, savings and loan association or other entity, in a transaction agreed upon, adopted and approved in accordance with Article 12, Chapter 4, Title 79, Mississippi Code of 1972, and provided that the buyer or transferee is a financial institution insured by the Federal Deposit Insurance Corporation.
Any national bank, state or federal savings and loan association, or state or federal savings bank may apply for conversion into a state-chartered bank upon the affirmative vote of the shareholders owning at least two-thirds (2/3) of its capital stock outstanding, or of fifty-one percent (51%) or more of the total number of the members, at a meeting called by the directors, notice of which, specifying the purpose, shall be given the manner required by the bylaws, or in the absence of such bylaw, then by sending the notice to each shareholder of record by registered mail at least ten (10) days before the meeting. Upon such affirmative vote, the converting institution may apply for a certificate of authority by filing with the commissioner a certificate signed by its president and cashier which sets forth the corporate action herein prescribed and asserts that the institution has complied with the provisions of the laws of the United States. The converting institution shall also file with the commissioner the plan of conversion and the proposed amendments to its articles of incorporation as approved by the stockholders for the operation of the institution as a state bank. Upon receipt of the prescribed application, the commissioner shall examine all facts associated with the conversion. The expenses and cost incurred for such special examination shall be paid by the institution applying for permission to convert. The commissioner shall present his findings and recommendations to the State Board of Banking Review for consideration. Upon approval by the State Board of Banking Review, the commissioner shall issue a certificate of authority to the applicant allowing the conversion to proceed.
Any bank, savings and loan association or savings bank chartered by the State of Mississippi is hereby authorized to convert into, consolidate with, or merge with a national bank, with the national bank charter surviving, without approval of the Department of Banking and Consumer Finance, the Commissioner of Banking and Consumer Finance, or any state authority whatsoever.
Notwithstanding any provision of law to the contrary, if any bank, savings and loan association or savings bank chartered by the State of Mississippi has or proposes to engage in a business combination or sale or transfer of substantially all assets that is not authorized under this section, the commissioner shall enforce the provisions of this section by issuing a cease-and-desist order.
The bank, savings and loan association or savings bank may appeal such order to the First Judicial District of Hinds County, Mississippi. Said appeal must be filed within thirty (30) days from the date the order was issued.
SECTION 6. This act shall take effect and be in force from and after July 1, 2026.
