HOUSE BILL 971165
BY REPRESENTATIVES Grossman and Tate;
also SENATORS Wattenberg and Schroeder.
CONCERNING THE AUTHORITY OF THE DIVISION OF BANKING
TO ISSUE CAPITAL CALLS FOR TRUST COMPANIES.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 1123117,
Colorado Revised Statutes, 1987 Repl. Vol., as amended, is amended
BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to read:
1123117. Powers
banking board commissioner. (1.1) IF
THE BANKING BOARD HAS REASON TO BELIEVE THAT THE CAPITAL OF ANY
TRUST COMPANY IS INADEQUATE UNDER THE RULES OF THE BANKING BOARD,
THE BANKING BOARD MAY ASCERTAIN THE FACTS AND FURNISH THE TRUST
COMPANY WITH A COPY OF ITS DETERMINATION. IF THE BANKING BOARD
FINDS AN INADEQUACY OF CAPITAL BASED UPON SUCH DETERMINATION,
THE COMMISSIONER, WITH THE APPROVAL OF THE BANKING BOARD, MAY
DIRECT THE TRUST COMPANY TO LEVY AN ASSESSMENT IN A DESIGNATED
AMOUNT UPON THE HOLDERS OF RECORD OF COMMON STOCK TO REMEDY THE
INADEQUACY OF CAPITAL. UPON RECEIPT OF AN ORDER TO LEVY AN ASSESSMENT,
THE DIRECTORS SHALL CAUSE TO BE SENT TO ALL HOLDERS OF COMMON
STOCK, AT THEIR ADDRESSES, A COPY OF THE ORDER AND A COPY OF THIS
SUBSECTION (1.1). IF AN ASSESSMENT IS NOT PAID WITHIN THE TIME
PRESCRIBED IN THE ORDER OR SUCH SHORTER PERIOD AS THE DIRECTORS
DECIDE, BUT NOT LESS THAN THIRTY DAYS, THE TRUST COMPANY MAY,
WITHIN SIXTY DAYS THEREAFTER AS THE BANKING BOARD MAY PRESCRIBE
IN ITS ORDER, OFFER THE SHARES OF THE DEFAULTING STOCKHOLDERS
FOR SALE AT PUBLIC AUCTION OR PRIVATE SALE AT A PRICE THAT SHALL
NOT BE LESS THAN THE AMOUNT OF THE ASSESSMENT AND THE COST OF
THE SALE. ANY EXCESS SHALL BE PAID TO THE PRIOR OWNERS. THE METHOD
OF COLLECTION PROVIDED IN THIS SUBSECTION (1.1) SHALL BE THE SOLE
METHOD OF COLLECTING ASSESSMENTS. IF AN ASSESSMENT IS NOT PAID
WITHIN NINETY DAYS AFTER THE DATE OF THE ORDER TO LEVY OR AT SUCH
OTHER DATE AS MAY BE SPECIFIED IN THE ORDER, BUT IN NO EVENT LESS
THAN THIRTY DAYS, THE COMMISSIONER MAY, WITH THE APPROVAL OF THE
BANKING BOARD, PROCEED PURSUANT TO SECTION 1123122.
HOWEVER, FOR GOOD CAUSE SHOWN TO THE BANKING BOARD BY THE AFFECTED
TRUST COMPANY, THE BOARD MAY EXTEND THE NINETYDAY LIMIT.
(1.2) THE TERM "SHAREHOLDER"
SHALL APPLY NOT ONLY TO SUCH PERSONS AS APPEAR ON THE BOOKS OF
THE TRUST COMPANY AS SHAREHOLDERS, BUT ALSO TO EVERY OWNER OF
STOCK, LEGAL OR EQUITABLE, ALTHOUGH THE STOCK MAY STAND ON SUCH
BOOKS IN THE NAME OF ANOTHER PERSON, BUT NOT TO A PERSON THAT
HOLDS THE STOCK AS COLLATERAL SECURITY FOR THE PAYMENT OF A DEBT.
(1.3) ANY TRUST COMPANY SHAREHOLDER THAT
HAS TRANSFERRED SUCH SHAREHOLDER'S SHARES, CAUSED SUCH TRANSFER
TO APPEAR ON THE BOOKS OF THE TRUST COMPANY WITHIN SIXTY DAYS
BEFORE THE CAPITAL INADEQUACY OF SUCH TRUST COMPANY, OR THAT HAS
MADE SUCH TRANSFER WITH KNOWLEDGE OF SUCH IMPENDING CAPITAL INADEQUACY
SHALL BE LIABLE TO THE SAME EXTENT THAT THE TRANSFEREE OR SUBSEQUENT
TRANSFEREE FAILS TO MEET SUCH LIABILITY. THIS SECTION SHALL NOT
BE CONSTRUED TO AFFECT IN ANY WAY ANY RECOURSE THAT SUCH SHAREHOLDER
MIGHT OTHERWISE HAVE AGAINST THOSE IN WHOSE NAMES SUCH SHARES
APPEAR UPON THE BOOKS OF THE TRUST COMPANY AT THE TIME OF SUCH
CAPITAL INADEQUACY.
(1.4) NO STOCKHOLDER OF A TRUST COMPANY
SHALL SET OFF AGAINST THE STOCKHOLDER'S LIABILITY ANY CLAIM SUCH
STOCKHOLDER MAY HAVE AS A DEPOSITOR IN OR CREDITOR OF ANY INSOLVENT
TRUST COMPANY.
SECTION 2. Effective
date applicability. This act shall take effect
upon passage and shall apply to acts occurring on or after said
date.
SECTION 3. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Joan M. Albi
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO