A Bill for an Act
Page 1, Line 101Concerning authorizing credit unions to purchase bank
Page 1, Line 102assets.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill authorizes a credit union to purchase the assets and liabilities of a state bank. The banking board may approve up to 5 purchases by credit unions per year.
Prior to approving a purchase, a prospective credit union purchaser must conduct an analysis of the anticipated impacts to small business and agricultural lending and the intended prospective credit union purchaser's current and anticipated lending data for low- and moderate-income areas, including demonstrating that the purchase will meet the needs of the community. The analyses shall be reviewed by the department of regulatory agencies and made available to the public; except that any trade secrets or other privileged information protected by the "Colorado Open Records Act" incorporated into the analyses shall not be made publicly available.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 11-103-709, amend (1), (3), (4), (5), and (6); and add (7) as follows:
Page 2, Line 311-103-709. Sale of all assets of bank, branch, or department.
Page 2, Line 4(1)
AnyPage 2, Line 5bank may sell to any other bank or credit union all, or substantially all,
Page 2, Line 6of the selling bank's assets and business or all, or substantially all, of the assets and business of any department or branch of the selling bank.
Page 2, Line 7(3)
ThePage 2, Line 8and approved by the banking board and by the vote of a majority of the
Page 2, Line 9stockholders of the purchasing bank or a majority of the board of
Page 2, Line 10directors of the purchasing credit union, as applicable, and of
Page 2, Line 11the selling
banksPage 2, Line 12as meetings to approve mergers are called and filed with the
Page 2, Line 13commissioner, accompanied by evidence of such stockholders' or
Page 2, Line 14directors' approval in like manner as agreements of merger are filed.
Page 2, Line 15After such approval is given by the stockholders or directors, a notice
Page 2, Line 16of such sale shall be published once a week for three successive weeks in
Page 2, Line 17a newspaper of general circulation in the county in which the selling bank
Page 2, Line 18has its principal office. Proof of such publication shall be filed with the division.
Page 2, Line 19(4) Notwithstanding any term of the agreement, or of
his or herPage 3, Line 1depositor's contract of deposit, any depositor whose business is thus
Page 3, Line 2sold has the right, upon payment of any indebtedness owing by the
Page 3, Line 3depositor to the bank, to withdraw
his or herPage 3, Line 4full on demand after such sale unless, by dealing with the purchasing
Page 3, Line 5bank or credit union with knowledge of the purchase, the depositor ratifies the transfer.
Page 3, Line 6(5) The agreement of sale may provide for the transfer to the
Page 3, Line 7purchasing bank or credit union of all fiduciary positions held by the selling bank pursuant to section 11-106-105.
Page 3, Line 8(6)
NoPage 3, Line 9respect of the assets or business sold, shall not be released or impaired
Page 3, Line 10by the sale until one year
fromPage 3, Line 11notice, pursuant to subsection (3) of this section, but, after the expiration
Page 3, Line 12of such year,
noPage 3, Line 13account of any deposit, obligation, trust, or asset transferred to or liability assumed by the purchasing bank or credit union.
Page 3, Line 14(7) (a) Notwithstanding any provision of the "Colorado
Page 3, Line 15Banking Code", articles 101 to 109 and article 10.5 of this title
Page 3, Line 1611, to the contrary, the banking board may approve up to five
Page 3, Line 17transactions per year in which a credit union purchases either
Page 3, Line 18all, or substantially all, of the selling bank's assets and
Page 3, Line 19business or all, or substantially all, of the assets and business of any department or branch of the selling bank.
Page 3, Line 20(b) (I) Except as provided in subsection (7)(b)(II) of this
Page 3, Line 21section, prior to any approval of a purchase by the banking
Page 3, Line 22board, a prospective credit union purchaser must conduct the
Page 3, Line 23following analyses, reviewed by the relevant divisions of the
Page 4, Line 1department of regulatory agencies prior to the sale and made available to the public:
Page 4, Line 2(A) An analysis of the anticipated impacts to small business and agricultural lending; and
Page 4, Line 3(B) An analysis of the prospective purchasing credit
Page 4, Line 4union's current and anticipated lending data for low- and
Page 4, Line 5moderate-income areas, including a demonstration that the purchase will meet the needs of the community.
Page 4, Line 6(II) Nothing in this subsection (7)(b) authorizes public
Page 4, Line 7inspection of a record that is protected from inspection
Page 4, Line 8pursuant to section 24-72-204 (3)(a)(IV) or another provision of
Page 4, Line 9the "Colorado Open Records Act", part 2 of article 72 of title 24.
Page 4, Line 10SECTION 2. Act subject to petition - effective date. This act
Page 4, Line 11takes effect at 12:01 a.m. on the day following the expiration of the
Page 4, Line 12ninety-day period after final adjournment of the general assembly; except
Page 4, Line 13that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 4, Line 14of the state constitution against this act or an item, section, or part of this
Page 4, Line 15act within such period, then the act, item, section, or part will not take
Page 4, Line 16effect unless approved by the people at the general election to be held in
Page 4, Line 17November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.