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HB 106: "An Act relating to the authorizations for state financial institutions; relating to confidential financial records of depositors and customers of certain financial institutions; relating to the Alaska Banking Code, Mutual Savings Bank Act, Alaska Small Loans Act, and Alaska Credit Union Act; and providing for an effective date."

00                              HOUSE BILL NO. 106                                                                         
01 "An Act relating to the authorizations for state financial institutions; relating to                                    
02 confidential financial records of depositors and customers of certain financial                                         
03 institutions; relating to the Alaska Banking Code, Mutual Savings Bank Act, Alaska                                      
04 Small Loans Act, and Alaska Credit Union Act; and providing for an effective date."                                     
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
07 to read:                                                                                                                
08       PURPOSE.  The primary purpose of this Act is to implement banking and other                                       
09 financial institution reforms in AS 06 in response to P.L. 106-102 (Gramm-Leach-Bliley Act)                             
10 in order to further this state as an attractive place for investment and other commerce                                 
11 involving banking and other financial institutions.                                                                     
12    * Sec. 2.  AS 06.01.020(a) is amended to read:                                                                     
13            (a)  Notwithstanding other provisions of this title, the department may by                                   
14       order [REGULATION] authorize state financial institutions, except licensees subject                       
01       to AS 06.20 or AS 06.40, to exercise any of the powers conferred upon, or to be                                   
02       subject to any of the limitations imposed upon, a federally chartered financial                                   
03       institution doing business in this state with deposits insured by an agency of the                                
04       federal government, if the department finds that the exercise of the power or                                     
05       imposition of the limitation both                                                                                 
06                 (1)  serves the public convenience and advantage; and                                                   
07                 (2)  equalizes and maintains the quality of competition between state                                   
08       financial institutions and federally chartered financial institutions.                                            
09    * Sec. 3.  AS 06.01 is amended by adding a new section to read:                                                    
10            Sec. 06.01.028.  Depositor and customer records confidential.  (a)  The                                    
11       financial records of depositors and customers of financial institutions are confidential                          
12       and may not be disclosed except when                                                                              
13                 (1)  the financial institution, customer, or depositor is compelled to                                  
14       disclose the records by court order, administrative subpoena or order, or other process                           
15       issued under supervision of a court or an administrative agency;                                                  
16                 (2)  their disclosure is required by federal or state statute or regulation;                            
17                 (3)  disclosure is authorized in writing by the depositor or customer;                                  
18                 (4)  disclosure is made to the holder of a negotiable instrument drawn                                  
19       on the financial institution as to whether the drawer has sufficient funds in the                                 
20       financial institution to cover the instrument; or                                                                 
21                 (5)  an inquiry has been made by a financial institution or by a credit-                                
22       reporting agency regulated under 15 U.S.C. 1681-1681u (Fair Credit Reporting Act),                                
23       as amended, solely for the express purpose of determining the credit worthiness of the                            
24       depositor or customer as an applicant for credit, and the information disclosed by the                            
25       financial institution or the entity making the inquiry under this paragraph pertains only                         
26       to the payment habits of the depositor or customer in connection with loans and other                             
27       credit accommodations and does not pertain to records concerning deposit balances in                              
28       savings or checking accounts.                                                                                     
29            (b)  Unless otherwise provided in this subsection, when disclosure of financial                              
30       institution records is required or allowed under (a)(1) or (2) of this section, the                               
31       financial institution shall notify the depositor or customer of the disclosure before the                         
01       disclosure is made.  If notification before disclosure is not possible, the financial                             
02       institution shall notify the customer or depositor of the disclosure as soon as                                   
03       practicable after the disclosure is made.  However, notification either before or after                           
04       disclosure may not be made if disclosure is made under a subpoena, subpoena duces                                 
05       tecum, search warrant issued by a court, or under a court order or subpoena issued at                             
06       the request of a grand jury, if the document requiring disclosure by one of these                                 
07       processes on its face requires confidentiality.                                                                   
08            (c)  When disclosure of financial institution records is compelled by a court                                
09       order under (a)(1) of this section, the court shall provide in the order for the                                  
10       reimbursement of the financial institution for the reasonable costs incurred in                                   
11       complying with the order.                                                                                         
12            (d)  A financial institution or any other person is liable to the depositor or                               
13       customer for intentional violations of this section in an amount equal to the greater of                          
14       $1,000 or actual damages caused by the disclosure of the confidential records of the                              
15       depositor or customer of the financial institution.  A financial institution or other                             
16       person that takes an action under this section, relying in good faith on any provision of                         
17       this section, is not liable to any person for its actions.                                                        
18    * Sec. 4.  AS 06.01.050(3) is amended to read:                                                                     
19                 (3)  "financial institution" means an institution subject to the regulation                             
20       of the department under this title; "financial institution" includes commercial                               
21       banks, savings banks, credit unions, premium finance companies, small loan                                    
22       companies, bank holding companies, financial holding companies, trust                                         
23       companies, and savings and loan associations.                                                                 
24    * Sec. 5.  AS 06.01.050 is amended by adding a new paragraph to read:                                              
25                 (4)  "state financial institution" means a financial institution that is                                
26       organized under this title, AS 10.13, or AS 44.81, or that is subject to examination by                           
27       the department under this title.                                                                                  
28    * Sec. 6.  AS 06.05.005(a) is amended to read:                                                                     
29            (a)  The department shall                                                                                    
30                 (1)  exercise general supervision over all state financial institutions and                             
31       their subsidiaries and affiliated corporations;                                                                   
01                 (2)  adopt regulations necessary to implement this chapter, including                                   
02       regulations providing for the retention and preservation of state bank records;                               
03                 (3)  review and approve or disapprove applications for new state banks                                  
04       under AS 06.05.344 [AS 06.05.345], new bank branches under AS 06.05.399, and                                  
05       international bank branches or interstate state bank branches [BRANCH BANKS]                              
06       under AS 06.05.555;                                                                                               
07                 (4)  issue permits authorizing bank holding companies to do business in                                 
08       this state under AS 06.05.235 and 06.05.570;                                                                      
09                 (5)  determine for each state bank the amount of paid-in capital                                        
10       necessary to operate under AS 06.05.305(a);                                                                       
11                 (6)  review and approve transfers of state bank ownership under                                     
12       AS 06.05.327;                                                                                                     
13                 (7)  perform examinations of state banks, branch banks, and                                             
14       subsidiaries under AS 06.01.015.                                                                                  
15    * Sec. 7.  AS 06.05.050 is repealed and reenacted to read:                                                         
16            Sec. 06.05.050.  Publication of reports.  (a)  Condensed forms of all reports                              
17       of condition required by AS 06.05.045(a) shall be immediately                                                     
18                 (1)  published by the state bank in a newspaper of general circulation                                  
19       published in the place where the state bank is located; if a newspaper of general                                 
20       circulation is not published in that place, the report shall be published in the                                  
21       newspaper of general circulation published nearest to that place; or                                              
22                 (2)  posted at                                                                                          
23                      (A)  the primary Internet website of the state bank; and                                           
24                      (B)  in the lobby of the principal office and all branches of the                                  
25            state bank.                                                                                                  
26            (b)  Notice of the publication or posting of the reports of condition under (a) of                           
27       this section shall be posted in the lobby of the principal office and all branches of the                         
28       state bank.  Upon request, a copy of a report of condition shall be supplied to any                               
29       person at no cost.                                                                                                
30    * Sec. 8.  AS 06.05.065(a) is amended to read:                                                                     
31            (a)  A bank examiner of the department who deals with the regulation of                                      
01       financial institutions, a special agent selected by the department to do work relating to                         
02       financial institutions, the commissioner or deputy commissioner, or the director of                               
03       banking may not be an officer, employee, director, trustee, attorney, shareholder, or                             
04       partner of a financial institution, or receive, directly or indirectly, a payment or                              
05       gratuity from a financial institution.  A person subject to this section may not borrow                           
06       money from a state financial institution [THAT HAS A CERTIFICATE OF                                           
07       AUTHORITY UNDER THIS TITLE], except as provided in this section.                                                  
08    * Sec. 9.  AS 06.05.065(b) is amended to read:                                                                     
09            (b)  A person subject to this section may                                                                    
10                 (1)  be a depositor in a financial institution;                                                         
11                 (2)  purchase shares of a savings and loan association on the same                                      
12       terms available to the public;                                                                                    
13                 (3)  be a member of an employee credit union;                                                           
14                 (4)  be indebted to a state financial institution upon an installment debt                              
15       incurred by the employee in the purchase of goods for personal use only and                                       
16       transferred to the financial institution in the regular course of business, including debts                       
17       for household goods, mobile homes, motor vehicles, or boats; or                                                   
18                 (5)  retain a pre-existing extension of credit that was incurred                                    
19       before commencement of the employment that subjected the person to this                                       
20       section; any renegotiation of a pre-existing extension of credit shall be treated as                          
21       a new extension of credit that is subject to the prohibitions of this section [BE                             
22       INDEBTED TO A STATE FINANCIAL INSTITUTION FOR A MORTGAGE                                                          
23       LOAN SECURED BY THE PERSON'S PRIMARY RESIDENCE, IF THE LOAN                                                       
24       CLOSED BEFORE THE PERSON BECAME AN EMPLOYEE SUBJECT TO THIS                                                       
25       SECTION].                                                                                                         
26    * Sec. 10.  AS 06.05.205 is repealed and reenacted to read:                                                        
27            Sec. 06.05.205.  Loans and extensions of credit.  (a)  The total loans and                                 
28       extensions of credit by a state bank to a person outstanding at one time and not fully                            
29       secured, as determined in a manner consistent with (b) of this section, by collateral                             
30       having a market value at least equal to the amount of the loan or extension of credit                             
31       may not exceed 15 percent of the unimpaired capital and unimpaired surplus of the                                 
01       state bank.                                                                                                       
02            (b)  The total loans and extensions of credit by a state bank to a person                                    
03       outstanding at one time and fully secured by readily marketable collateral having a                               
04       market value, as determined by reliable and continuously available price quotations, at                           
05       least equal to the amount of the money outstanding, may not exceed 10 percent of the                              
06       unimpaired capital and unimpaired surplus of the state bank.  The limitation in this                              
07       subsection is separate from and in addition to the limitation contained in (a) of this                            
08       section.                                                                                                          
09            (c)  The limitations contained in (a) and (b) of this section are subject to the                             
10       following exceptions:                                                                                             
11                 (1)  loans or extensions of credit arising from the discount of                                         
12       commercial or business paper evidencing an obligation to the person negotiating it                                
13       with recourse are not subject to a limitation based on unimpaired capital and                                     
14       unimpaired surplus;                                                                                               
15                 (2)  the purchase of bankers' acceptances described in AS 06.05.275                                     
16       and issued by other banks are not subject to a limitation based on unimpaired capital                             
17       and unimpaired surplus;                                                                                           
18                 (3)  loans or extensions of credit secured by bills of lading, warehouse                                
19       receipts, or similar documents transferring or securing title to readily marketable                               
20       staples are subject to a limitation of 35 percent of unimpaired capital and unimpaired                            
21       surplus in addition to the general limitations if the market value of the staples securing                        
22       each additional loan or extension of credit at all times equals or exceeds 115 percent of                         
23       the outstanding amount of the loan or extension of credit; in order to be considered                              
24       under this paragraph, the staples must be fully covered by insurance whenever it is                               
25       customary to insure those staples;                                                                                
26                 (4)  loans or extensions of credit secured by bonds, notes, certificates of                             
27       indebtedness, or treasury bills of the United States or by other such obligations fully                           
28       guaranteed as to principal and interest by the United States are not subject to a                                 
29       limitation based on unimpaired capital and unimpaired surplus;                                                    
30                 (5)  loans or extensions of credit to, or secured by unconditional takeout                              
31       commitments or guarantees of, any department, agency, bureau, board, commission,                                  
01       or establishment of the United States or a corporation wholly owned directly or                                   
02       indirectly by the United States are not subject to a limitation based on unimpaired                               
03       capital and unimpaired surplus;                                                                                   
04                 (6)  loans or extensions of credit secured by a segregated deposit                                      
05       account in the lending state bank are not subject to a limitation based on unimpaired                             
06       capital and unimpaired surplus;                                                                                   
07                 (7)  loans or extensions of credit to a bank or to a receiver, conservator,                             
08       superintendent of banks, or other agent in charge of the business and property of that                            
09       bank, if approved by the department, are not subject to a limitation based on                                     
10       unimpaired capital and unimpaired surplus;                                                                        
11                 (8)  loans or extensions of credit arising from the discount of negotiable                              
12       or non-negotiable installment consumer paper that carries a full recourse endorsement                             
13       or unconditional guarantee by the person transferring the paper are subject under this                            
14       section to a maximum limitation equal to 25 percent of unimpaired capital and                                     
15       unimpaired surplus, notwithstanding the collateral requirements set out in (b) of this                            
16       section; however, if the state bank's files or the knowledge of its officers of the                               
17       financial condition of each maker of that consumer paper is reasonably adequate, and                              
18       an officer of the state bank designated for that purpose by the board of directors of the                         
19       state bank certifies in writing that the state bank is relying primarily upon the                                 
20       responsibility of each maker for payment of the loans or extensions of credit and not                             
21       upon any full or partial recourse endorsement or guarantee by the transferor, the                                 
22       limitations of (a) and (b) of this section as to the loans or extensions of credit of each                        
23       such maker are the sole applicable loan limitations;                                                              
24                 (9)  loans or extensions of credit secured by shipping documents or                                     
25       instruments transferring or securing title covering livestock or giving a lien on                                 
26       livestock when the market value of the livestock securing the obligation is not at any                            
27       time less than 115 percent of the face amount of the note covered, are subject under                              
28       this section, notwithstanding the collateral requirements set out in (b) of this section,                         
29       to a maximum limitation equal to 25 percent of unimpaired capital and unimpaired                                  
30       surplus;                                                                                                          
31                 (10)  loans or extensions of credit, arising from the discount by dealers                               
01       in dairy cattle of paper given in payment for dairy cattle and carrying a full recourse                           
02       endorsement or unconditional guarantee of the seller, that are secured by the cattle                              
03       being sold, are subject under this section, notwithstanding the collateral requirements                           
04       set out in (b) of this section, to a maximum limitation equal to 25 percent of                                    
05       unimpaired capital and unimpaired surplus.                                                                        
06            (d)  Except with the written prior approval of the department for an acquisition                             
07       or merger with another financial institution, or except with the written prior approval                           
08       of the department in order to prevent loss upon an indebtedness previously contracted                             
09       in good faith, a state bank may not                                                                               
10                 (1)  accept as security for a loan the capital stock of the state bank;                                 
11                 (2)  accept as security for a loan the capital stock of the state bank's                                
12       parent holding companies, unless the stock of the holding companies is publicly traded                            
13       on a nationally recognized exchange; or                                                                           
14                 (3)  loan money that is to be used to purchase the capital stock of the                                 
15       state bank or a parent holding company of the state bank.                                                         
16            (e)  The department may adopt regulations to administer and carry out the                                    
17       purposes of this section, including, notwithstanding any contrary provision of this                               
18       section, regulations to define or further define terms used in this section in order to                           
19       establish limits or requirements other than those specified in this section for particular                        
20       classes or categories of loans or extensions of credit.                                                           
21            (f)  For purposes of this section, the department may determine when a loan                                  
22       putatively made to a person shall be attributed to another person.                                                
23            (g)  In this section, "person" means an individual, sole proprietorship,                                     
24       partnership, joint venture, association, trust, estate, business trust, corporation, or any                       
25       similar entity or organization.                                                                                   
26    * Sec. 11.  AS 06.05.209(b) is amended to read:                                                                    
27            (b)  A state bank may issue a credit card or other similar credit granting device                        
28       to a customer for obtaining money, goods, services, or anything else of value, and                                
29       notwithstanding AS 45.45.010, the state bank, when credit is extended under this                          
30       section, may impose a service charge at a monthly rate as agreed upon by contract                             
31       between the state bank and the customer receiving the credit granting device                                  
01       [THAT RESULTS IN AN ANNUAL RATE NOT IN EXCESS OF 17 PERCENT ON                                                    
02       THE OUTSTANDING BALANCE.  HOWEVER, IN ADDITION, WHEN CASH IS                                                      
03       ADVANCED UNDER THIS SECTION, THE BANK MAY IMPOSE A SETUP                                                          
04       CHARGE THAT DOES NOT EXCEED THREE PERCENT OF THE FUNDS                                                            
05       ADVANCED, OR $12, WHICHEVER IS LESS, EXCEPT THAT ON LOANS OF                                                      
06       UNDER $100 A MINIMUM NOT EXCEEDING $3 MAY BE CHARGED].                                                            
07    * Sec. 12.  AS 06.05.210(a) is amended to read:                                                                    
08            (a) Subject to the same terms and conditions applicable to other loans, a                                    
09       director or executive [,] officer[, OR EMPLOYEE] of a state bank may borrow up to                             
10       $100,000, or up to $250,000 for the director's or executive [,] officer's [, OR                               
11       EMPLOYEE'S] primary residence from the state bank at the discretion of the chief                              
12       executive or managing officer of the state bank.  A loan to a director or executive [,]                   
13       officer [, OR EMPLOYEE] that makes the total amount owed to the state bank by the                             
14       director or executive [,] officer [, OR EMPLOYEE] in excess of the limits in this                             
15       subsection, or loans of any amount to the chief executive or managing officer of the                              
16       state bank, shall have the prior approval of the board of directors, shall be reported to                     
17       the department within 30 days, and shall be secured by adequate collateral.                                       
18    * Sec. 13.  AS 06.05.210 is amended by adding a new subsection to read:                                            
19            (c)  Notwithstanding (a) of this section, loans to directors, executive officers,                            
20       and other officers and employees of a state bank are subject to the lending limits                                
21       imposed by AS 06.05.205 and any regulations adopted under that section.                                           
22    * Sec. 14.  AS 06.05 is amended by adding a new section to read:                                                   
23            Sec. 06.05.237.  Financial holding company.  Notwithstanding the provisions                                
24       of AS 06.05.235 and regulations adopted under that section, a holding company                                     
25       formed under this title may apply to the Federal Reserve System for status as a                                   
26       financial holding company.  If the status is granted, the financial holding company has                           
27       powers as a financial holding company authorized by the Federal Reserve System if                                 
28                 (1)  at the time of application, the holding company provides the                                       
29       department with a complete copy of the application;                                                               
30                 (2)  the holding company provides the department copies of all                                          
31       correspondence concerning the application;                                                                        
01                 (3)  the holding company provides the department a copy of the                                          
02       approval by the Federal Reserve System within 10 days after the holding company                                   
03       receives that approval; and                                                                                       
04                 (4)  the department does not issue a letter denying financial holding                                   
05       company status within 30 days after the approval by the Federal Reserve System.                                   
06    * Sec. 15.  AS 06.05.245 is amended to read:                                                                       
07            Sec. 06.05.245.  Disposition of property not needed in the conduct of a                                    
08       banking business.  All investments in real and personal property, regardless of how                     
09       acquired, not permitted [NECESSARY FOR THE CONVENIENT                                                     
10       TRANSACTION OR PROMOTION OF A BANKING BUSINESS] under                                                             
11       AS 06.05.230 that come [COMES] into the possession of a state bank shall be                                   
12       disposed of as soon as possible.  If the real or personal property is not sold within the                         
13       time limit set [PRESCRIBED] by the department in regulations, it shall be written off                         
14       and may not be carried as an asset of the state bank.                                                         
15    * Sec. 16.  AS 06.05.272(b) is amended to read:                                                                    
16            (b)  Under this section, a state bank's total investment in its subsidiaries                             
17       may not exceed that which is permissible for a federally chartered bank's total                               
18       investment in all subsidiaries as set out in 12 U.S.C. 24a, as amended [BANK                                  
19       MAY INVEST IN SUBSIDIARIES AN AMOUNT EQUAL TO THE LESSER OF                                                       
20       20 PERCENT OF ITS TOTAL ASSETS OR 50 PERCENT OF ITS TOTAL                                                         
21       CAPITAL ACCOUNTS].  Loans to subsidiaries are considered investments subject to                                   
22       the limitations of this subsection.                                                                               
23    * Sec. 17.  AS 06.05.301(a) is amended to read:                                                                    
24            (a)  Except for national banks with a principal place of business in the state,                              
25       and interstate state banks and international banks with a certificate of authority under                      
26       AS 06.05.555, a corporation may not engage in the banking business unless the                                     
27       corporation is organized under AS 10.06 (Alaska Corporations Code) and this title.                                
28    * Sec. 18.  AS 06.05.350(d) is amended to read:                                                                    
29            (d)  Except as authorized under this section, a person may not                                               
30                 (1)  engage in the business of receiving deposits, discounting evidences                                
31       of indebtedness, or receiving money for transmission;                                                             
01                 (2)  represent that the person is [, OR ACTS FOR,] a bank; or                                           
02                 (3)  use any form of the word "bank" in its name unless it is a state                               
03       bank formed under this title or a bank formed under the authority of another                                  
04       state or an agency of the federal government, or unless it is clear that the use does                         
05       not represent that the person is a bank; the prohibition in this paragraph does                               
06       not apply to a food bank, blood bank, or similar organization that cannot readily                             
07       be confused with a bank [AN ARTIFICIAL OR CORPORATE NAME THAT                                                 
08       PURPORTS TO BE OR SUGGESTS THAT IT IS THE NAME OF A BANK].                                                        
09    * Sec. 19.  AS 06.05.350 is amended by adding a new subsection to read:                                            
10            (e)  A person prohibited by (d) of this section from using any form of the word                              
11       "bank" in its name may apply to the commissioner for authority to do so.                                          
12    * Sec. 20.  AS 06.05.426(b) is amended to read:                                                                    
13            (b)  A state bank may establish, maintain, and operate an automated teller                                   
14       machine at a location other than bank premises by notifying the department 30 days                            
15       before the date of establishment [WITH THE PRIOR APPROVAL OF THE                                              
16       DEPARTMENT].  An automated teller machine operated off bank premises shall be                                     
17       made available on a nondiscriminatory basis for use by other depository institutions                          
18       [BANKS] authorized to do business in the state and their customers, upon the                                      
19       agreement of the other depository institutions [BANKS] to pay a fair and equitable                            
20       amount for the use of the machine.                                                                                
21    * Sec. 21.  AS 06.05.426(c) is repealed and reenacted to read:                                                     
22            (c)  The notice required in (b) of this section shall include                                                
23                 (1)  the location and general description of the surrounding area,                                      
24       including a description of the business establishment, if any, in which the machine will                          
25       be located;                                                                                                       
26                 (2)  the manner of operation and the kinds of transactions that the                                     
27       machine will perform;                                                                                             
28                 (3)  the names of the other depository institutions that will share the                                 
29       machine's services; and                                                                                           
30                 (4)  other information required by the department.                                                      
31    * Sec. 22.  AS 06.05.426(d) is amended to read:                                                                    
01            (d)  A state bank may invest in a corporation organized to operate machines                                  
02       that perform automated teller services for two or more depository institutions                                
03       [BANKS, IF EACH BANK OWNS PART OF THE CAPITAL STOCK OF THE                                                        
04       CORPORATION].                                                                                                     
05    * Sec. 23.  AS 06.05.426 is amended by adding a new subsection to read:                                            
06            (e)  A person may not establish or operate an automated teller machine that                                  
07       accepts deposits unless those deposits are insured by the Federal Deposit Insurance                               
08       Corporation or another agency of the United States that insures deposits.                                         
09    * Sec. 24.  AS 06.05.435(c) is amended to read:                                                                    
10            (c)  Unless otherwise approved by the department, each director of a state                               
11       bank shall own, in the director's own right or jointly with the director's spouse, free of                        
12       any encumbrance, common or preferred stock of the state bank or of a company                                  
13       that controls the state bank that has an aggregate par value of at least $1,000, an                           
14       aggregate shareholder's equity of at least $1,000, or an aggregate fair market                                
15       value of at least $1,000 [CAPITAL STOCK OF THE BANK IN AN AMOUNT                                              
16       EQUAL TO AT LEAST $1,000 IN PAR VALUE].                                                                           
17    * Sec. 25.  AS 06.05.435 is amended by adding new subsections to read:                                             
18            (h)  In the case of a company that owns more than one bank, a director may use                               
19       the director's equity interest in the controlling company to satisfy, in whole or in part,                        
20       the equity interest requirement for one or all of the controlled banks.                                           
21            (i)  The value of the common or preferred stock held by a director of a state                                
22       bank or of a company that controls the state bank is valued as of the date purchased, or                          
23       as of the date on which the individual became a director, whichever value is greater.                             
24    * Sec. 26.  AS 06.05.550 is amended to read:                                                                       
25            Sec. 06.05.550.  Authority of international bank, [OR] interstate state                                
26       bank, or interstate national bank to branch.  (a)  An international bank, or an                             
27       interstate state bank or interstate national bank whose deposits are insured by the                       
28       Federal Deposit Insurance Corporation[,] may acquire a branch bank as the result of a                             
29       merger or consolidation of the international bank, [OR] interstate state bank, or                     
30       interstate national bank with, or the purchase of all or substantially all of the assets                      
31       of, a state bank, a national bank with its principal office in this state, or a branch of the                     
01       state [BANK] or national bank, unless the state [BANK] or national bank is a recently                             
02       formed bank.                                                                                                      
03            (b)  An international bank may establish a new branch bank in this state or                                  
04       acquire a recently formed bank, if the department approves the establishment or                                   
05       acquisition before the establishment or acquisition occurs.  An interstate state bank or                  
06       interstate national bank may not establish a branch bank in this state unless the                             
07       establishment occurs through an acquisition under (a) of this section of a bank located                           
08       in the state.  An interstate state bank or interstate national bank may not establish a                   
09       new branch bank in this state.                                                                                    
10            (c)  An interstate state bank, interstate national bank, or international bank                           
11       that opens, occupies, or maintains a branch bank in the state has the same powers                                 
12       under the laws of the state as a state or national bank of the same type.                                         
13    * Sec. 27.  AS 06.05.555(a) is amended to read:                                                                    
14            (a)  Before acquiring a branch bank under AS 06.05.550(a) or establishing a                                  
15       branch bank under AS 06.05.550(b), an interstate state bank or international bank                             
16       shall file an application with the department for and receive a certificate of authority to                       
17       operate a branch bank.  The application must include                                                              
18                 (1)  all information and fees required under AS 06.05.399;                                              
19                 (2)  the name of the bank and the address of its principal office;                                      
20                 (3)  if an international bank, the country under whose laws it is                                       
21       organized;                                                                                                        
22                 (4)  the amount of the bank's capital actually paid in cash and the                                     
23       amount subscribed for and unpaid;                                                                                 
24                 (5)  a complete and detailed statement of the bank's financial condition;                               
25                 (6)  the names of all other states and countries in which the bank is                                   
26       admitted or qualified to do business;                                                                             
27                 (7)  a copy of the bank's charter, articles of incorporation, and bylaws,                               
28       as applicable;                                                                                                    
29                 (8)  if an international bank, evidence satisfactory to the department                                  
30       that the bank is authorized to conduct a banking business under the laws of the country                           
31       of its organization, and the nature of the bank's business;                                                       
01                 (9)  a properly executed designation of the department as the bank's                                    
02       agent for service of process in an action or proceeding arising out of a transaction                              
03       involving the branch bank; the designation must include the name and address of the                               
04       officer, agent, or other person to whom the department is to forward the process; and                             
05                 (10)  other information necessary or appropriate for the department to                                  
06       determine whether the bank is entitled to a certificate of authority from the                                     
07       department.                                                                                                       
08    * Sec. 28.  AS 06.05.555(b) is amended to read:                                                                    
09            (b)  The department shall notify the interstate state bank or international bank                         
10       of its action on the application.  If the application and the accompanying documents do                           
11       not comply with the requirements of (a) of this section, the department shall return                              
12       them with an explanation of the noncompliance.  If the department does not respond                                
13       within 30 days of its receipt of the application, the application is considered to be                             
14       accepted.                                                                                                         
15    * Sec. 29.  AS 06.05.555(c) is amended to read:                                                                    
16            (c)  The interstate state bank or international bank shall publish notice of the                         
17       application in the manner provided in AS 06.05.344(d) - (e).  The notice must state the                           
18       proposed location of the branch bank.                                                                             
19    * Sec. 30.  AS 06.05.555(d) is amended to read:                                                                    
20            (d)  Upon acceptance of the application, the department shall conduct an                                     
21       investigation to determine that                                                                                   
22                 (1)  if an interstate state bank,                                                                   
23                      (A)  the laws of the home state of the bank authorize a state                                      
24            bank of this state to acquire a branch bank in the home state without conditions                             
25            or restrictions on the operations of the branch bank; and                                                    
26                      (B)  the bank supervisor of the home state of the bank has                                         
27            agreed to provide to the department the examination reports that the                                         
28            department determines sufficient to permit the department to determine on a                                  
29            current basis the financial condition of the bank;                                                           
30                 (2)  the proposal is consistent with a sound and competitive banking                                    
31       system;                                                                                                           
01                 (3)  the capital structure of the bank is adequate in relation to the                                   
02       anticipated business and costs of operating the branch bank;                                                      
03                 (4)  the name of the bank is not deceptively similar to the name of                                     
04       another branch bank or state bank and is not otherwise misleading; and                                            
05                 (5)  the other requirements of this chapter have been met.                                              
06    * Sec. 31.  AS 06.05.555(e) is amended to read:                                                                    
07            (e)  Not later than 150 days after the department accepts an application by an                               
08       interstate state bank or international bank for a certificate of authority to operate a                       
09       branch bank, the department shall make a determination whether to approve the                                     
10       application.  Within 30 days after the second publication of the notice referred to in (c)                        
11       of this section, a person opposing the pending application may file written objections                            
12       with the department.  When it approves or denies the application, the department shall                            
13       notify the bank and any other person who requested in writing to be notified, and if the                          
14       application is denied, the department shall state the reasons for its decision.                                   
15    * Sec. 32.  AS 06.05.555(f) is amended to read:                                                                    
16            (f)  The department shall issue a certificate of authority to an interstate state                        
17       bank or international bank to operate a branch bank if                                                        
18                 (1)  the conditions imposed by the department in granting the certificate                               
19       have been fulfilled; and                                                                                          
20                 (2)  the requirements of this chapter are satisfied.                                                    
21    * Sec. 33.  AS 06.05 is amended by adding a new section to read:                                                   
22            Sec. 06.05.557.  Notice filing for interstate national banks.  An interstate                               
23       national bank acquiring a branch in this state under AS 06.05.550 shall file a notice of                          
24       the acquisition with the department along with a copy of the application filed with the                           
25       agency that primarily regulates the interstate national bank.  The notice and copy of                             
26       the application shall be filed with the department at the same time the application is                            
27       filed with the agency that primarily regulates the interstate national bank.                                      
28    * Sec. 34.  AS 06.05.565(a) is amended to read:                                                                    
29            (a)  An interstate state bank or international bank operating a branch bank in                           
30       the state is subject to the provisions of this title, and the regulations adopted and orders                      
31       issued under this title, except for the residency requirements in AS 06.05.435(a).                                
01    * Sec. 35.  AS 06.05.565(c) is amended to read:                                                                    
02            (c)  A branch bank of an interstate state bank or international bank operating                           
03       in the state is subject to examination under AS 06.01.015 and assessments under                                   
04       AS 06.01.010.  Assessments under AS 06.01.010(d) are based on the branch bank's                                   
05       total deposits in the state.                                                                                      
06    * Sec. 36.  AS 06.05.565(d) is amended to read:                                                                    
07            (d)  When the department considers it necessary to protect the public interest,                              
08       the department or a competent person designated by the department may examine an                                  
09       interstate state bank or international bank with a branch in the state.  The interstate                       
10       state bank or international bank shall pay an examination fee established under                               
11       AS 06.01.010.                                                                                                     
12    * Sec. 37.  AS 06.05.565(e) is amended to read:                                                                    
13            (e)  The department may require periodic reports from an interstate state                                
14       bank or an interstate national bank [OUT-OF-STATE DEPOSITORY                                                  
15       INSTITUTION] that maintains a branch in this state and from a bank holding                                        
16       company that controls the interstate state bank or interstate national bank [OUT-                             
17       OF-STATE DEPOSITORY INSTITUTION].  The reports shall be made under oath                                           
18       and filed as frequently as required by the department.  The reports must contain the                              
19       information and detail that the department determines to be appropriate to assure                                 
20       continuing compliance of the interstate state bank or interstate national bank                                
21       [OUT-OF-STATE DEPOSITORY INSTITUTION] with the provisions                                                     
22       [PROVISION] of this title.                                                                                        
23    * Sec. 38.  AS 06.05.565 is amended by adding a new subsection to read:                                            
24            (g)  An interstate national bank operating a branch bank in this state is subject                            
25       to the provisions of AS 06.05.548 and 06.05.550, and the regulations adopted and                                  
26       orders issued under these sections.                                                                               
27    * Sec. 39.  AS 06.05.570(a) is amended to read:                                                                    
28            (a)  An out-of-state bank holding company may acquire and own all or a                                       
29       portion of the voting securities or other capital stock of, or all or substantially all of the                    
30       assets of, one or more state banks, domestic bank holding companies, or national                                  
31       banks conducting a banking business in the state, unless the state bank or national                               
01       bank is a recently formed bank.  Before an out-of-state bank holding company may                                  
02       acquire a state bank or bank holding company of a state bank doing business in this                       
03       state, the out-of-state bank holding company shall apply for and obtain a permit from                             
04       the department.  In considering whether to issue a permit, the department shall                                   
05       consider the benefits to the public, the preservation of a competitive banking industry,                          
06       and the maintenance of a safe and sound bank industry.  To assure full protection of                              
07       the public, the department may require an out-of-state bank holding company that                                  
08       directly or indirectly owns, holds, or controls stock in a state bank or domestic bank                            
09       holding company to post a bond with the department under conditions established by                                
10       the department.  The amount of the bond may not be more than the product obtained                                 
11       by multiplying the amount of paid-in capital and paid-in surplus of the state bank or                             
12       domestic bank holding company by the percentage of state bank or domestic bank                                    
13       holding company stock directly or indirectly owned, held, or controlled by the out-of-                            
14       state bank holding company.                                                                                       
15    * Sec. 40.  AS 06.05.990(11) is amended to read:                                                                   
16                 (11)  "domestic bank holding company" means a corporation subject to                                
17       AS 06.05.235 that maintains its principal office and place of business in the state and                       
18       that has control over a bank or another domestic bank holding company in one of the                               
19       following ways:                                                                                                   
20                      (A)  the corporation directly or indirectly or acting through one                                  
21            or more other persons owns, controls, or has power to vote 25 percent or more                                
22            of a class of voting securities of the bank or holding company;                                              
23                      (B)  the corporation controls in any manner the election of a                                      
24            majority of the directors or trustees of the bank or holding company; [OR]                                   
25                      (C)  the department determines, after notice and opportunity for                                   
26            hearing, that the corporation directly or indirectly exercises a controlling                                 
27            influence over the management of the policies of the bank or holding                                         
28            company;                                                                                                     
29    * Sec. 41.  AS 06.05.990(13) is amended to read:                                                                   
30                 (13)  "financial institution" means an institution subject to the                                       
31       regulation of the department under this title; "financial institution" includes                               
01       commercial banks, savings banks, credit unions, premium finance companies,                                    
02       small loan companies, bank holding companies, financial holding companies,                                    
03       trust companies, and savings and loan associations;                                                           
04    * Sec. 42.  AS 06.05.990(19) is repealed and reenacted to read:                                                    
05                 (19)  "loan" includes an extension of credit resulting from direct or                                   
06       indirect negotiations between a lender and a debtor;                                                              
07    * Sec. 43.  AS 06.05.990(22) is amended to read:                                                                   
08                 (22)  "recently formed bank" means a state bank or national bank that                                   
09       conducts a banking business in the state and that commenced the banking business in                               
10       the state on or after July 1, 1982, and that has not been in existence and continuously                           
11       operating in the state for a period of three years or more; "recently formed bank" does                           
12       not include                                                                                                       
13                      (A)  a bank organized solely for the purpose of facilitating                                       
14            acquisition of a bank that either has been in existence and continuously                                     
15            operating in the state as a bank for a three-year period, or was conducting a                                
16            banking business in the state on or before June 30, 1982;                                                    
17                      (B)  a state bank that the department determines was not created                                   
18            directly or indirectly by an acquiring interstate state bank, interstate national                    
19            bank, international bank, or out-of-state bank holding company, and that does                            
20            not have the capacity to continue to conduct its business independently in a                                 
21            manner consistent with the public interest and the interest of depositors,                                   
22            creditors, and shareholders; or                                                                              
23                      (C)  a national bank that the board of governors of the Federal                                    
24            Reserve System, or their designee, determines is not chartered directly or                                   
25            indirectly by an acquiring out-of-state bank holding company, and that does                                  
26            not have the capacity to conduct its business independently in a manner                                      
27            consistent with the public interest of depositors, creditors, and shareholders;                              
28    * Sec. 44.  AS 06.05.990(24) is amended to read:                                                                   
29                 (24)  "state financial institution" means a financial institution that is                           
30       organized under this title, AS 10.13, or AS 44.81, or that is subject to examination                          
31       by the department under this title;                                                                           
01    * Sec. 45.  AS 06.05.990 is amended by adding new paragraphs to read:                                              
02                 (29)  "affiliates" with respect to a state bank, means                                                  
03                      (A)  a company that controls the state bank and another                                            
04            company that is controlled by the company that controls the state bank;                                      
05                      (B)  a bank subsidiary of the state bank;                                                          
06                      (C)  a company                                                                                     
07                           (i)  that is controlled directly or indirectly, by a trust or                                 
08                 otherwise, by or for the benefit of the shareholders who beneficially or                                
09                 otherwise control, direct or indirectly, by trust or otherwise, the state                               
10                 bank or a company that controls the state bank; or                                                      
11                           (ii)  in which a majority of its directors or trustees                                        
12                 constitute a majority of the persons holding that office with the state                                 
13                 bank or a company that controls the state bank;                                                         
14                      (D)  a company, including a real estate investment trust, that is                                  
15            sponsored and advised on a contractual basis by the state bank or a subsidiary                               
16            or affiliate of the state bank; or a investment company with respect to which a                              
17            state bank or any affiliate of the state bank is an investment advisor as defined                            
18            in 15 U.S.C. 80a-2(a)(20), as amended; and                                                                   
19                      (E)  a company that the department determines by order to have                                     
20            a relationship with the state bank or a subsidiary or affiliate of the state bank,                           
21            such that covered transactions by the state bank or its subsidiary with that                                 
22            company may be affected by the relationship of the state bank or its subsidiary;                             
23                 (30)  "extension of credit" means a negotiable instrument as defined in                                 
24       AS 45.03.104; "extension of credit" includes promissory notes, acknowledgments of                                 
25       advance, due bills, invoices, overdrafts, acceptances, and similar written or oral                                
26       obligations or evidence of debt whether secured or unsecured;                                                     
27                 (31)  "financial holding company" means an existing, or newly formed,                                   
28       domestic bank holding company that has been approved as a financial holding                                       
29       company by the Federal Reserve System and not denied that status by the department                                
30       under AS 06.05.237;                                                                                               
31                 (32)  "interstate national bank" means a national bank whose principal                                  
01       office, as designated in its articles of incorporation, is not located in this state;                             
02                 (33)  "interstate state bank" means a corporation, partnership, or                                      
03       association organized under the laws of another state and holding a charter, license, or                          
04       certificate  of authority from another state to engage in a banking business.                                     
05    * Sec. 46.  AS 06.15.100 is repealed and reenacted to read:                                                        
06            Sec. 06.15.100.  Prohibited conduct of trustees.  A trustee may not                                        
07                 (1)  receive remuneration as trustee except reasonable fees for                                         
08       attendance at meetings of trustees or for services as a member of a committee of                                  
09       trustees;                                                                                                         
10                 (2)  use the position as trustee, or knowingly allow it to be used, to                                  
11       obtain preferential terms in dealings with the mutual bank for which the person is                                
12       trustee;                                                                                                          
13                 (3)  use the position as trustee, or knowingly allow it to be used, to                                  
14       induce any actual or prospective borrower from the mutual bank for which the person                               
15       is trustee to purchase goods or services at a direct or indirect profit to the trustee.                           
16    * Sec. 47.  AS 06.15 is amended by adding a new section to read:                                                   
17            Sec. 06.15.105.  Trustee borrowing.  A person may borrow money from the                                    
18       mutual bank for which the person is trustee to the same extent that a director may                                
19       borrow money under AS 06.05.210.                                                                                  
20    * Sec. 48.  AS 06.20.010 is amended by adding a new subsection to read:                                            
21            (b)  A person who is doing business under and as permitted by any law of the                                 
22       state or of the United States relating to banks, savings banks, trust companies, building                         
23       and loan associations, or credit unions and who is exempt from the licensing                                      
24       requirement in (a) of this section shall comply with all other provisions of this chapter.                        
25    * Sec. 49.  AS 06.45.020(a) is amended to read:                                                                    
26            (a)  Seven or more natural persons who desire to form a credit union shall                                   
27       subscribe before an officer competent to administer oaths, articles of incorporation in                           
28       duplicate that must state                                                                                         
29                 (1)  the name of the credit union;                                                                      
30                 (2)  the location of the credit union and the territory in which it will                                
31       operate;                                                                                                          
01                 (3)  the names and addresses of the subscribers to the certificate and the                              
02       number of shares each subscribed;                                                                                 
03                 (4)  the par value of the shares, which shall be a minimum of $5 each;                              
04                 (5)  the proposed field of membership specified in detail;                                              
05                 (6)  the term of the existence of the credit union, which may be                                        
06       perpetual; and                                                                                                    
07                 (7)  the fact that the articles of incorporation are adopted to enable the                              
08       persons to avail themselves of the advantages of this chapter.                                                    
09    * Sec. 50.  AS 06.45.060(5) is amended to read:                                                                    
10                 (5)  make loans, the maturities of which may not exceed 20 [12] years                               
11       except as provided in this chapter, and extend lines of credit to its members, to other                           
12       credit unions, and to credit union organizations and participate with other credit                                
13       unions, credit union organizations, or financial organizations in making loans to credit                          
14       union members in accordance with the following:                                                                   
15                      (A)  loans to members shall be made in conformity with                                             
16            regulations adopted by the commissioner, except that                                                         
17                           (i)  a residential real estate loan which is made to finance                                  
18                 the acquisition of a one- to four-family dwelling for the principal                                     
19                 residence of a credit union member which is secured by a first lien on                                  
20                 the dwelling may have a maturity not exceeding 30 years;                                                
21                           (ii)  a loan to finance the purchase of a mobile home,                                        
22                 which is secured by a first lien on the mobile home, to be used as the                                  
23                 residence of a credit union member, or for the repair, alteration, or                                   
24                 improvement of a residential dwelling that is the residence of a credit                                 
25                 union member shall have a maturity not to exceed 20 [15] years unless                               
26                 the loan is insured or guaranteed under (iii) of this subparagraph;                                     
27                           (iii)  a loan secured by the insurance or guarantee of the                                    
28                 federal government, of a state government, or an agency of either may                                   
29                 be made for the maturity and under the terms and conditions specified                                   
30                 in the law under which the insurance or guarantee is provided;                                          
31                           (iv)  a loan or aggregate of loans to a director or member                                    
01                 of the supervisory or credit committee of the credit union making the                                   
02                 loan which exceeds $5,000 plus pledged shares shall be approved by                                      
03                 the board of directors;                                                                                 
04                           (v)  loans to other members for which directors or                                            
05                 members of the supervisory or credit committee act as guarantor or                                      
06                 endorser shall be approved by the board of directors when the loans                                     
07                 standing alone or when added to an outstanding loan or loans of the                                     
08                 guarantor or endorser exceed $5,000;                                                                    
09                           (vi)  the rate of interest may not exceed the greater of 15                                   
10                 percent a year or the rate specified in AS 45.45.010(b);                                                
11                           (vii)  the taking, receiving, reserving, or charging of a                                     
12                 rate of interest greater than is allowed by this paragraph, when                                        
13                 knowingly done, is considered a forfeiture of the entire interest that the                              
14                 note, bill, or other evidence of debt carries with it, or that has been                                 
15                 agreed to be paid on the note, bill, or other evidence of debt; if a greater                            
16                 rate of interest has been paid, the person by whom it has been paid or                                  
17                 the person's legal representatives may recover back from the credit                                     
18                 union taking or receiving it the entire amount of interest paid, but the                                
19                 action must be commenced within two years from the time the usurious                                    
20                 collection was made;                                                                                    
21                           (viii)  a borrower may repay a loan before maturity in                                        
22                 whole or in part on any business day without penalty;                                                   
23                           (ix)  loans shall be paid or amortized under regulations                                      
24                 adopted by the commissioner that consider the needs or conditions of                                    
25                 the borrowers, the amounts and duration of the loans, the interests of                                  
26                 the members and the credit union, and other factors established in                                      
27                 regulations adopted by the commissioner;                                                                
28                           (x)  the total dollar amount of real estate loans and                                         
29                 mobile home loans outstanding may not exceed 25 percent of the assets                                   
30                 of the credit union without the written approval of the commissioner;                                   
31                           (xi)  a credit union with assets of less than $3,000,000                                      
01                 may make real estate loans with maturities in excess of 15 years only                                   
02                 with the approval of the commissioner;                                                                  
03                      (B)  a self-replenishing line of credit to a borrower may be                                       
04            established to a stated maximum amount on terms and conditions that may be                                   
05            different from terms and conditions established for another borrower;                                        
06                      (C)  loans to other credit unions require the approval of the                                      
07            board of directors of the loaning credit union;                                                              
08                      (D)  loans to credit union associations require the approval of                                    
09            the board of directors of the credit union and may not exceed one percent of                                 
10            the paid-in and unimpaired capital and surplus of the credit union;                                          
11                      (E)  participation loans with other credit unions, credit union                                    
12            associations, or financial organizations shall be made in accordance with                                    
13            written policies of the board of directors of the credit union, except that a credit                         
14            union that originates a loan for which participation arrangements are made in                                
15            accordance with this section shall retain an interest not less than 10 percent of                            
16            the face amount of the loan;                                                                                 
17    * Sec. 51.  AS 06.45.060(7) is amended by adding new subparagraphs to read:                                        
18                      (L)  in bankers' acceptances issued by a financial institution                                     
19            whose accounts are insured by an agency of the federal government;                                           
20                      (M)  stock of a federal home loan bank; the investment must be                                     
21            limited to the minimum amount of stock required for membership in a federal                                  
22            home loan bank, plus any additional stock purchase required to obtain an                                     
23            advance of funds from a federal home loan bank;                                                              
24                      (N)  in obligations of, or issued by, any state or political                                       
25            subdivision of the state, except that a credit union may not invest more than 10                             
26            percent of its unimpaired capital and surplus in the obligations of any one                                  
27            issuer, exclusive of general obligations of the issuer; in this subparagraph,                                
28            "political subdivision of the state" includes an agency, corporation, or                                     
29            instrumentality of a state or political subdivision;                                                         
30    * Sec. 52.  AS 06.45.060 is amended by adding a new paragraph to read:                                             
31                 (16)  issue solicited or unsolicited credit cards or other similar credit                               
01       granting devices to a member for obtaining money, goods, services or anything else of                             
02       value; notwithstanding (5)(A)(vi) of this section and AS 45.45.010, when credit is                                
03       extended under this section, the credit union may impose a service charge at a monthly                            
04       rate as agreed upon by contract between the credit union and the member receiving the                             
05       credit granting device, but the credit union may not hold the member liable for charges                           
06       made on a credit card or other credit granting device before its acceptance by the                                
07       member; before an unsolicited card is considered accepted by the member, the                                      
08       member shall execute and furnish to the credit union a written statement of                                       
09       acceptance; in addition, a credit union may charge fees for credit cards or other similar                         
10       credit granting devices.                                                                                          
11    * Sec. 53.  AS 06.45 is amended by adding a new section to read:                                                   
12            Sec. 06.45.295.  Automated teller machines.  (a)  A state credit union may                                 
13       establish, maintain, and operate an automated teller machine on the premises of the                               
14       main office or a branch office of the state credit union.                                                         
15            (b)  A state credit union may establish, maintain, and operate an automated                                  
16       teller machine at a location other than credit union premises by notifying the                                    
17       department 30 days before the date of establishment.  An automated teller machine                                 
18       operated off credit union premises shall be made available on a nondiscriminatory                                 
19       basis for use by other depository institutions authorized to do business in the state and                         
20       their customers, upon the agreement of the other depository institutions to pay a fair                            
21       and equitable amount for the use of the machine.                                                                  
22            (c)  The notice required in (b) of this section shall include                                                
23                 (1)  the location and general description of the surrounding area,                                      
24       including a description of the business establishment, if any, in which the machine will                          
25       be located;                                                                                                       
26                 (2)  the manner of operation and the kinds of transactions that the                                     
27       machine will perform;                                                                                             
28                 (3)  the names of the other depository institutions that will share the                                 
29       machine's services; and                                                                                           
30                 (4)  other information required by the department.                                                      
31            (d)  A state credit union may invest in a corporation organized to operate                                   
01       machines that perform automated teller services for two or more depository                                        
02       institutions.                                                                                                     
03            (e)  A person may not establish or operate an automated teller machine that                                  
04       accepts deposits unless those deposits are insured by the National Credit Union Share                             
05       Insurance Fund or another agency of the United States that insures deposits.                                      
06    * Sec. 54.  AS 06.05.175, 06.05.005(4), 06.05.272(d), 06.05.990(18); and AS 06.20.330(a)                           
07 are repealed.                                                                                                           
08    * Sec. 55.  The uncodified law of the State of Alaska is amended by adding a new section to                        
09 read:                                                                                                                   
10       REVISOR'S INSTRUCTION.  The revisor of statutes is instructed to                                                  
11            (1)  change the heading of AS 06.05.555 from "Certificate of authority for                                   
12 interstate and international branching" to "Certificate of authority for interstate state bank and                      
13 international bank branching"; and                                                                                      
14            (2)  change the heading of AS 06.05.565 from "Applicability of title to                                      
15 interstate or international banks, to out-of-state depository institutions, and to bank holding                         
16 companies" to "Applicability of title to interstate state banks, interstate national banks,                             
17 international banks, and bank holding companies".                                                                       
18    * Sec. 56.  The uncodified law of the State of Alaska is amended by adding a new section to                        
19 read:                                                                                                                   
20       TRANSITION:  REGULATIONS.  Notwithstanding sec. 58 of this Act, the                                               
21 Department of Community and Economic Development may immediately proceed to adopt                                       
22 regulations necessary to implement the changes made by this Act.  The regulations take effect                           
23 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the                                 
24 statutory changes.                                                                                                      
25    * Sec. 57.  Section 56 of this Act takes effect immediately under AS 01.10.070(c).                                 
26    * Sec. 58.  Except as provided in sec. 57 of this Act, this Act takes effect July 1, 2001.