SF0042 • 2021

Out-of-state state bank charter conversions.

AN ACT relating to banks and banking; authorizing out-of-state state banks to convert from their state charter to a Wyoming charter; providing definitions; making conforming amendments; and providing for an effective date.

Land

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Minerals
Last action: 2021-02-08
Official status: enrolled
Effective date: 7/1/2021

Plain English Breakdown

The official source material does not provide specific details on the impact of the bill or how it will affect Wyoming residents directly.

Out-of-State Banks Can Become Wyoming Banks

The bill allows out-of-state banks to change their charter and become Wyoming-chartered banks.

What This Bill Does

Allows out-of-state banks to convert from their current state's bank charter to a Wyoming bank charter.
Requires the State Banking Commissioner to approve conversions based on certain conditions, such as ensuring the bank is legally operating and meets Wyoming laws.
Defines an 'out-of-state state bank' for clarity in the law.

Who It Names or Affects

Out-of-state banks that want to operate under a Wyoming charter.
The State Banking Commissioner who will review and approve conversion requests.

Terms To Know

out-of-state state bank: A bank that is chartered by a different U.S. state than where it operates or wants to operate.

Limits and Unknowns

The bill does not specify how many out-of-state banks will convert to Wyoming charters.
It's unclear what the exact impact on Wyoming’s banking industry will be.
The law only applies to banks and doesn't cover other financial institutions.

Bill History

2021-02-08 LSO
Assigned Chapter Number 8
2021-02-08 Governor
Governor Signed SEA No. 0002
2021-02-05 House
H Speaker Signed SEA No. 0002
2021-02-04 Senate
S President Signed SEA No. 0002
2021-02-03 LSO
Assigned Number SEA No. 0002
2021-02-03 House
H 3rd Reading:Passed 59-0-1-0-0
2021-02-02 House
H 2nd Reading:Passed
2021-02-01 House
H COW:Passed
2021-02-01 House
H Placed on General File
2021-02-01 House
H09 - Minerals:Recommend Do Pass 9-0-0-0-0
2021-01-29 House
H Introduced and Referred to H09 - Minerals
2021-01-29 House
H Received for Introduction
2021-01-29 Senate
S 3rd Reading:Passed 28-0-1-1-0
2021-01-29 Senate
S 2nd Reading:Passed
2021-01-28 Senate
S COW:Passed
2021-01-27 Senate
S Placed on General File
2021-01-27 Senate
S09 - Minerals:Recommend Do Pass 4-0-0-1-0
2021-01-12 Senate
S Introduced and Referred to S09 - Minerals
2021-01-12 Senate
S Received for Introduction
2021-01-08 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 21LSO-0189
Bill No.:

SF0042

Effective:

7/1/2021 12:00:00 AM

LSO No.:

21LSO-0189

Enrolled Act No.:

SEA No. 0002

Chapter No.:

8

Prime Sponsor:

Joint Minerals, Business & Economic Development Interim Committee

Catch Title:

Out-of-state state bank charter conversions.

Subject:

Authorizing out-of-state state banks to convert to become Wyoming-chartered banks.

Summary/Major Elements:

Out-of-state state banks are banks that are operating under a charter that another state has issued.

The act authorizes out-of-state state banks to convert from their state charter to a Wyoming bank charter in order to operate and be based in Wyoming.

The act specifies conditions the State Banking Commissioner must find before approving the conversion of an out-of-state state bank to a Wyoming charter.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text

21LSO-0189

ORIGINAL Senate

File No
.
SF0042

ENROLLED ACT NO. 2,

SENATE

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2021 General Session

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 13
‑
4
‑
109(a) and (b)(i), 13
‑
9
‑
307(a) by creating a new paragraph (xviii) and 13
‑
9
‑
310(c) are amended to read:

13
‑
4
‑
109.

Conversion of national bank, federally chartered savings bank, out
‑
of
‑
state state bank or state savings and loan into state bank.

(a)

A national bank, including a federally chartered savings and loan and a federally chartered savings bank, located in this state which follows the procedure prescribed by the laws of the United States to convert into a state bank may be granted a state charter by the state banking commissioner if the state banking commissioner finds that adequate provision has been made for successors to fiduciary positions held by the converting bank, the national bank, federally chartered savings and loan or federally chartered savings bank is legally in operation and that the resulting bank complies with the laws of the state of Wyoming.

A state savings and loan chartered under chapter 6 of this act may convert into a state chartered bank in accordance with the provisions of this section.
An out
‑
of
‑
state state bank may convert into a state chartered bank if the commissioner finds that adequate provision has been made for successors to fiduciary positions held by the converting bank, the converting bank is legally in
operation and that the resulting bank complies with the laws of the state of Wyoming.
A state bank resulting from the conversion of a national bank, federally chartered savings and loan, federally chartered savings bank
, out
‑
of
‑
state state bank
or state savings and loan pursuant to this section may retain, operate and maintain the banking houses or offices of the converting national bank, federally chartered savings and loan, federally chartered savings bank
, out
‑
of
‑
state state bank
or state savings and loan
in accordance with W.S. 13
‑
2
‑
806
.
As used in this section, "out
‑
of
‑
state state bank" means as defined by W.S. 13
‑
2
‑
802(a)(xii).

(b)

A financial institution seeking to convert under subsection (a) of this section

may apply for a charter by filing with the state banking commissioner:

(i)

A certificate signed by its president or vice president, secretary or cashier, and a majority of the entire board of directors setting forth the corporate action taken in compliance with the provisions of the laws of the United States, or this state as appropriate,
confirming the conversion of a national to a state bank
supporting the proposed conversion
; and

13
‑
9
‑
307.

Definitions.

(a)

For purposes of this article:

(xviii)

"Out
‑
of
‑
state state bank" means as defined by W.S. 13
‑
2
‑
802(a)(xii).

13
‑
9
‑
310.

Standards for approval.

(c)

The commissioner shall not approve an application by an out
‑
of
‑
state bank holding company for an acquisition under this article unless the Wyoming bank to be acquired or all Wyoming bank subsidiaries of the bank holding company to be acquired, or a predecessor, have as of the proposed date of acquisition been in existence and in continuous operation for at least three (3) years.

A state bank resulting from the conversion of a federally chartered savings and loan, federally chartered savings bank or state savings and loan pursuant to W.S. 13
‑
4
‑
109
, an out
‑
of
‑
state
state bank pursuant to the procedures prescribed by the laws of the United States or of the state issuing a state charter for the out
‑
of
‑
state state bank
or a national bank resulting from the conversion of a federally chartered savings and loan or federally chartered savings bank pursuant to the procedures prescribed by the laws of the United States shall be deemed to have been in existence for the same period of time as the converting federally chartered savings and loan, federally chartered savings bank
, out
‑
of
‑
state state bank
or state savings and loan or a predecessor.

Section 2
.

This act is effective
July 1, 2021.

(END)