Public depositories.

Authors: Senator Brandt Hershman

Digest

Provides that a financial institution is ineligible to become a depository and receive public funds of the state if the financial institution has been found by: (1) the department of financial institutions (department); or (2) the financial institution's primary federal regulator; to not be in substantial compliance with, or to have violated, the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (act). Sets forth procedures that the department must follow if the department receives credible evidence that a financial institution is not in substantial compliance with, or has violated, the act. Provides that if it is determined under these procedures that the financial institution is not in substantial compliance with the act, or has violated the act, the department shall notify immediately the chairperson of the board for depositories of the determination.