Banks and banking; revise various definitions, procedures and provisions related to.

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To: Business and Financial
Institutions
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Johnson

SENATE BILL NO. 2383

AN ACT TO AMEND SECTION 81-5-100, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE DEFINITION OF "ELECTRONIC TERMINAL" AND TO DEFINE 2
THE TERM "INTERACTIVE TELLER MACHINE"; TO PROVIDE THAT THE 3
ESTABLISHMENT OF ELECTRONIC TERMINALS AND THE SETTING OR CHANGING 4
OF FEES FOR THE USE OF ELECTRONIC TERMINALS ARE MATTERS TO BE 5
DETERMINED BY A STATE BANK OR THRIFT IN ITS DISCRETION, ACCORDING 6
TO SOUND BANKING JUDGMENT AND SAFE AND SOUND BANKING PRINCIPLES; 7
TO AMEND SECTION 81-5-75, MISSISSIPPI CODE OF 1972, TO REVISE 8
PROCEDURES FOR A STATE BANK TO DECLARE AND PAY DIVIDENDS; TO AMEND 9
SECTION 81-3-15, MISSISSIPPI CODE OF 1972, TO REQUIRE THE APPROVAL 10
OF THE COMMISSIONER OF BANKING AND CONSUMER FINANCE RATHER THAN 11
THE STATE COMPTROLLER FOR RENEWALS OR AMENDMENTS TO THE CHARTER OR 12
ARTICLES OF INCORPORATION OF BANKING CORPORATIONS; TO MODIFY THE 13
PROCEDURE FOR SUCH RENEWALS OR AMENDMENTS; TO CREATE NEW SECTION 14
81-5-26, MISSISSIPPI CODE OF 1972, TO AUTHORIZE INVESTMENTS BY 15
STATE-CHARTERED BANKS AND TRUST COMPANIES IN CERTAIN COMMUNITY AND 16
ECONOMIC DEVELOPMENT ENTITIES, COMMUNITY DEVELOPMENT PROJECTS AND 17
OTHER PUBLIC WELFARE INVESTMENTS; AND FOR RELATED PURPOSES. 18
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 19
SECTION 1. Section 81-5-100, Mississippi Code of 1972, is 20
amended as follows: 21
81-5-100. (1) For the purposes of this section, the 22
following words shall have the meaning herein described unless the 23
context shall otherwise require: 24
(a) "Electronic terminal" means an * * * automated, 25
virtually staffed or unstaffed banking facility owned or operated 26
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by, or operated exclusively for, a federally insured bank or 27
thrift, such as an automated teller machine (ATM), interactive 28
teller machine (ITM), cash dispensing machine or other remote 29
electronic terminal, that is open to the general public and at 30
which deposits are accepted, cash is dispersed, money is lent or 31
an electronic fund transfer is initiated. 32
An "electronic terminal" is not a "branch" under Title 81, 33
Mississippi Code of 1972, and is not subject to state licensing 34
requirements. 35
(b) "Electronic fund transfer" means any of the 36
following: 37
(i) The withdrawal of cash from or the deposit of 38
cash or checks into an * * * electronic terminal, such as an * * * 39
automated teller machine, but not including night depositories; 40
(ii) An application for or acceptance of a loan 41
through use of an * * * electronic terminal; 42
(iii) The transfer of funds between accounts 43
through use of an * * * electronic terminal; or 44
(iv) The issuance of a check by an * * * 45
electronic terminal. 46
(c) "Electronic fund transfer" does not mean access to 47
accounts, the application for or acceptance of a loan, the 48
transfer of funds between accounts or other banking services 49
accomplished through the use of a personal computer or telephone. 50
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(d) "Interactive teller machine" or "ITM" means an 51
automated, virtually staffed or unstaffed facility, owned or 52
operated by, or operated exclusively for, a federally insured bank 53
or thrift, and that is equipped with video-based interactive 54
technology allowing customers to conduct transactions and 55
financial services driven by a centrally based teller, in a 56
real-time video or audio interaction. 57
(2) The establishment of electronic terminals are matters to 58
be determined by a state bank or thrift in its discretion, 59
according to sound banking judgment and safe and sound banking 60
principles. No prior approval of the Commissioner of Banking and 61
Consumer Finance is required for a state bank or thrift * * * to 62
establish or decommission electronic terminals. 63
* * * 64
( * * *3) For the use of its electronic terminals connected 65
to sharing networks or systems, a bank may impose a fee if 66
imposition of the fee is disclosed at a time and in a manner that 67
allows a user to terminate or cancel the transaction without 68
incurring the transaction fee. * * * Because this power is an 69
inherent element of a state banks' authority to conduct the 70
business of banking, the setting or changing of such fee amount is 71
a matter to be determined by a state bank or thrift in its 72
discretion, according to sound banking judgment and safe and sound 73
banking principles. 74
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An agreement to share electronic terminals shall not 75
prohibit, limit or restrict the right of a bank to charge such 76
fees for the use of its electronic terminals as allowed by state 77
or federal law, or require a bank to limit or waive its rights or 78
obligations under this section. 79
SECTION 2. Section 81-5-75, Mississippi Code of 1972, is 80
amended as follows: 81
81-5-75. * * * (1) A state bank may, from time to time, 82
declare and pay dividends not inconsistent with the bank's 83
articles of incorporation or bylaws. However, prior written 84
approval of the Commissioner of Banking and Consumer Finance shall 85
be required for a declaration and payment of dividends if any of 86
the following conditions exist: 87
(a) The bank is subject to a corrective plan or 88
enforcement action; 89
(b) After making the dividend, the bank would be 90
undercapitalized. For purposes of this paragraph (b), 91
"undercapitalized" means that term as defined by the applicable 92
federal regulatory agency based on bank type; or 93
(c) The Commissioner of Banking and Consumer Finance 94
has determined that conditions exist at the bank that pose a risk 95
to its safety and soundness. 96
(2) Directors declaring a dividend in violation of the 97
provisions of this section shall be personally liable to the full 98
amount of the dividend so declared and it shall be the duty of the 99
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commissioner, upon discovering the payment of any such dividend, 100
to forthwith make demand upon the directors that the same be 101
restored to the bank, and upon their failure so to do he shall 102
cause suit to be brought against them in the chancery court of the 103
county in which the bank is located, either in his name or in the 104
name of the bank, to recover the same for the benefit of the bank. 105
SECTION 3. Section 81-3-15, Mississippi Code of 1972, is 106
amended as follows: 107
81-3-15. The charter or articles of incorporation of banking 108
corporations heretofore created or that may hereafter be created, 109
may be renewed or amended in the following manner: 110
The stockholders in a special or regular meeting, shall 111
first, by a vote of a majority in amount of all stock outstanding, 112
adopt a resolution setting forth the proposed renewal or 113
amendment, subject to the approval of the * * * Commissioner of 114
Banking and Consumer Finance (commissioner). Three (3) copies of 115
such resolution duly certified by the president or vice president 116
of such bank shall be forwarded to the * * * commissioner for his 117
or her approval, together with the fee required by statute. If 118
the proposed amendment is approved by the * * * commissioner, he 119
or she shall attach his or her certificate of approval to each of 120
the copies and forward all three (3) copies * * * and * * * the 121
fee required by statute to the Secretary of State. * * * The 122
Secretary of State shall retain one (1) copy and file and record 123
the same in his office. He shall forward one (1) copy thereof to 124
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ST: Banks and banking; revise various
definitions, procedures and provisions related
to.
the * * * commissioner, who shall retain and file the same in his 125
or her office. The remaining copy shall be returned to the bank, 126
and the bank shall immediately record the same in the office of 127
the chancery clerk of the county in which the bank is domiciled. 128
Said copy after being so recorded, shall be returned to the bank 129
and retained by it in its files. It shall not be necessary to 130
publish such renewal or amendment. 131
SECTION 4. The following shall be codified as Section 132
81-5-26, Mississippi Code of 1972: 133
81-5-26. Investments in community and economic development 134
entities, community development projects and other public welfare 135
investments as described in 12 USC § 24 (Eleventh) and 12 CFR Part 136
24, and any amendments thereto, shall be legal investments for 137
state-chartered banks and trust companies, to the same extent that 138
such are authorized investments for national banks under 12 USC § 139
24 (Eleventh) and 12 CFR Part 24, and any amendments thereto. 140
Required notifications and approval requests shall be submitted to 141
the Department of Banking, except that "eligible banks" as defined 142
in Section 81-3-1 shall be exempt from any notification 143
requirements and approval requests. 144
SECTION 5. This act shall take effect and be in force from 145
and after July 1, 2026. 146