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SCS CSHB 106(JUD): "An Act relating to the authorizations for certain state financial institutions of certain powers and limitations; relating to confidential records of depositors and customers of certain financial institutions; relating to the examination of certain institutions subject to AS 06; relating to the Alaska Banking Code, Mutual Savings Bank Act, Alaska Small Loans Act, and Alaska Credit Union Act; relating to credit cards; amending Rule 45, Alaska Rules of Civil Procedure, Rules 17 and 37, Alaska Rules of Criminal Procedure, and Rule 24, Alaska Bar Rules; and providing for an effective date."

00                 SENATE CS FOR CS FOR HOUSE BILL NO. 106(JUD)                                                            
01 "An Act relating to the authorizations for certain state financial institutions of certain                              
02 powers and limitations; relating to confidential records of depositors and customers of                                 
03 certain financial institutions; relating to the examination of certain institutions subject                             
04 to AS 06; relating to the Alaska Banking Code, Mutual Savings Bank Act, Alaska Small                                    
05 Loans Act, and Alaska Credit Union Act; relating to credit cards; amending Rule 45,                                     
06 Alaska Rules of Civil Procedure, Rules 17 and 37, Alaska Rules of Criminal Procedure,                                   
07 and Rule 24, Alaska Bar Rules; and providing for an effective date."                                                    
08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
09    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
10 to read:                                                                                                                
11       PURPOSE.  The primary purpose of this Act is to implement banking and other                                       
12 financial institution reforms in AS 06 in response to P.L. 106-102 (Gramm-Leach-Bliley Act)                             
13 in order to further this state as an attractive place for investment and other commerce                                 
01 involving banking and other financial institutions.                                                                     
02    * Sec. 2.  AS 06.01.015(a) is amended to read:                                                                     
03            (a)  Financial institutions regulated under this title are subject to at least one                           
04       examination every 18 months [EACH YEAR].  The department may conduct                                          
05       additional examinations at its discretion.                                                                        
06    * Sec. 3.  AS 06.01.020(a) is amended to read:                                                                     
07            (a)  Notwithstanding other provisions of this title, the department may by                                   
08       order [REGULATION] authorize state financial institutions, except licensees subject                       
09       to AS 06.20 or AS 06.40, to exercise any of the powers conferred upon, or to be                                   
10       subject to any of the limitations imposed upon, a federally chartered financial                                   
11       institution doing business in this state with deposits insured by an agency of the                                
12       federal government [,] if the department finds that the exercise of the power or                                  
13       imposition of the limitation both                                                                                 
14                 (1)  serves the public convenience and advantage; and                                                   
15                 (2)  equalizes and maintains the quality of competition between state                                   
16       financial institutions and federally chartered financial institutions.                                            
17    * Sec. 4.  AS 06.01 is amended by adding a new section to read:                                                    
18            Sec. 06.01.028.  Depositor and customer records confidential.  (a)  The                                    
19       records of financial institutions relating to their depositors and customers and the                              
20       information in the records are confidential.  A financial institution may not disclose                            
21       the records and information to another person except when, and only to the extent that,                           
22       the disclosure is                                                                                                 
23                 (1)  authorized in writing by the depositor or customer;                                                
24                 (2)  required by federal or state statute or regulation or by an order                                  
25       directed to the financial institution and issued by a court or administrative agency of                           
26       competent jurisdiction;                                                                                           
27                 (3)  made to the holder of a negotiable instrument drawn on the                                         
28       financial institution as to whether the drawer has sufficient funds in the financial                              
29       institution to cover the instrument;                                                                              
30                 (4)  made to a consumer reporting agency regulated under 15 U.S.C.                                      
31       1681 - 1681u (Fair Credit Reporting Act);                                                                         
01                 (5)  not prohibited by 15 U.S.C. 6801 - 6827 or the regulations adopted                                 
02       under those sections; or                                                                                          
03                 (6)  made in connection with the maintenance or servicing of the                                        
04       depositor's or customer's account with the financial institution, or with another entity                          
05       as part of a private label credit card or other extension of credit on behalf of the entity.                      
06            (b)  When disclosure of financial institution records is compelled by a                                      
07       subpoena, a search warrant, or another court or administrative agency order under                                 
08       (a)(2) of this section, the court or administrative agency shall provide in the order for                         
09       the reimbursement of the financial institution for the reasonable costs incurred in                               
10       complying with the order.  Nothing in this subsection imposes a reimbursement                                     
11       obligation on a government agency, or abrogates an otherwise established                                          
12       reimbursement obligation of a government agency, when the financial institution is the                            
13       subject of an audit, examination, or investigation and disclosure is sought under a                               
14       federal or state law or regulation.                                                                               
15            (c)  Unless otherwise provided in this subsection, when disclosure of financial                              
16       institution records is required under a court or administrative agency order under                                
17       (a)(2) of this section, the financial institution shall notify the depositor or customer of                       
18       the disclosure before the disclosure is made.  If notification before disclosure is not                           
19       possible, the financial institution shall notify the customer or depositor of the                                 
20       disclosure as soon as practicable after the disclosure is made.  However, notification                            
21       either before or after disclosure may not be made if disclosure is made under a court or                          
22       administrative agency order under (a)(2) of this section and the document requiring                               
23       disclosure requires on its face that the financial institution not notify or inform the                           
24       depositor or customer, or the document requiring disclosure is, or is accompanied by,                             
25       a court order that expressly directs the financial institution not to notify or inform the                        
26       depositor or customer.                                                                                            
27            (d)  Nothing in (a) - (c) of this section prohibits a financial institution from                             
28       disclosing information to a person if                                                                             
29                 (1)  the disclosure is necessary to                                                                     
30                      (A)  provide the services of the financial institution to a                                        
31            depositor or customer; or                                                                                    
01                      (B)  market financially related products or services of the                                        
02            financial institution and its marketing partners; and                                                        
03                 (2)  the person receiving the information has a written agreement with                                  
04       the financial institution to be bound by the requirements of (a) - (c) of this section.                           
05            (e)  A financial institution or any other person who violates this section is                                
06       liable to a depositor or customer for damages caused by the disclosure of the                                     
07       confidential records or information of the financial institution pertaining to the                                
08       depositor or customer.  A financial institution or other person who takes an action                               
09       under this section while relying in good faith on any provision of this section is not                            
10       liable under this section to any person for the action.                                                           
11            (f)  In this section, "financial institution" means a person subject to the                                  
12       regulation of the department under this title, including a BIDCO licensed under                                   
13       AS 10.13 (Alaska BIDCO Act).                                                                                      
14    * Sec. 5.  AS 06.01.040 is amended to read:                                                                        
15            Sec. 06.01.040.  Examination policy.  It shall be the policy of the department                             
16       to conduct, whenever reasonably possible, joint examinations with the Federal Deposit                             
17       Insurance Corporation or with the National Credit Union Administration of those                               
18       institutions subject to this title whose accounts are insured through those agencies                          
19       [THAT CORPORATION].                                                                                               
20    * Sec. 6.  AS 06.01.050(3) is amended to read:                                                                     
21                 (3)  "financial institution" means an institution subject to the regulation                             
22       of the department under this title; in this paragraph, "institution" includes a                               
23       commercial bank, savings bank, credit union, premium finance company, small                                   
24       loan company, bank holding company, financial holding company, trust company                                  
25       and savings and loan association.                                                                             
26    * Sec. 7.  AS 06.01.050 is amended by adding a new paragraph to read:                                              
27                 (4)  "state financial institution" means a financial institution that is                                
28       organized under this title or that is subject to examination by the department under this                         
29       title.                                                                                                            
30    * Sec. 8.  AS 06.05.005(a) is amended to read:                                                                     
31            (a)  The department shall                                                                                    
01                 (1)  exercise general supervision over all state financial institutions and                             
02       their subsidiaries and affiliated corporations;                                                                   
03                 (2)  adopt regulations necessary to implement this chapter, including                                   
04       regulations providing for the retention and preservation of state bank records;                               
05                 (3)  review and approve or disapprove applications for new state banks                                  
06       under AS 06.05.344 [AS 06.05.345], new bank branches under AS 06.05.399, and                                  
07       international bank branches or interstate state bank branches [BRANCH BANKS]                              
08       under AS 06.05.555;                                                                                               
09                 (4)  issue permits authorizing certain acquisitions by bank holding                                 
10       companies [TO DO BUSINESS IN THIS STATE] under AS 06.05.235 and                                                   
11       06.05.570;                                                                                                        
12                 (5)  determine for each state bank the amount of paid-in capital                                        
13       necessary to operate under AS 06.05.305(a);                                                                       
14                 (6)  review and approve transfers of state bank ownership under                                     
15       AS 06.05.327;                                                                                                     
16                 (7)  perform examinations of state banks, branch banks, and                                             
17       subsidiaries under AS 06.01.015.                                                                                  
18    * Sec. 9.  AS 06.05.050 is repealed and reenacted to read:                                                         
19            Sec. 06.05.050.  Publication of reports.  (a)  Condensed forms of all reports                              
20       of condition required by AS 06.05.045(a) shall be immediately                                                     
21                 (1)  published by the state bank in a newspaper of general circulation                                  
22       published in the place where the state bank is located; if a newspaper of general                                 
23       circulation is not published in that place, the report shall be published in the                                  
24       newspaper of general circulation published nearest to that place; or                                              
25                 (2)  posted                                                                                             
26                      (A)  at the primary Internet website of the state bank; and                                        
27                      (B)  in the lobby of the principal office and all branches of the                                  
28            state bank.                                                                                                  
29            (b)  Notice of the publication or posting of the reports of condition under (a) of                           
30       this section shall be posted in the lobby of the principal office and all branches of the                         
31       state bank.  Upon request, a copy of a report of condition shall be supplied to any                               
01       person at no cost.                                                                                                
02    * Sec. 10.  AS 06.05.065(a) is amended to read:                                                                    
03            (a)  A bank examiner of the department who deals with the regulation of                                      
04       financial institutions, a special agent selected by the department to do work relating to                         
05       financial institutions, the commissioner or deputy commissioner, or the director of                               
06       banking may not be an officer, employee, director, trustee, attorney, shareholder, or                             
07       partner of a financial institution, or receive, directly or indirectly, a payment or                              
08       gratuity from a financial institution.  A person subject to this section may not borrow                           
09       money from a state financial institution [THAT HAS A CERTIFICATE OF                                           
10       AUTHORITY UNDER THIS TITLE], except as provided in this section.                                                  
11    * Sec. 11.  AS 06.05.065(b) is amended to read:                                                                    
12            (b)  A person subject to this section may                                                                    
13                 (1)  be a depositor in a financial institution;                                                         
14                 (2)  purchase shares of a savings and loan association on the same                                      
15       terms available to the public;                                                                                    
16                 (3)  be a member of an employee credit union;                                                           
17                 (4)  be indebted to a state financial institution upon an installment debt                              
18       incurred by the employee in the purchase of goods for personal use only and                                       
19       transferred to the financial institution in the regular course of business, including debts                       
20       for household goods, mobile homes, motor vehicles, or boats; or                                                   
21                 (5)  retain a preexisting extension of credit that was incurred before                              
22       commencement of the employment that subjected the person to this section; any                                 
23       renegotiation of a preexisting extension of credit shall be treated as a new                                  
24       extension of credit that is subject to the prohibitions of this section [BE                                   
25       INDEBTED TO A STATE FINANCIAL INSTITUTION FOR A MORTGAGE                                                          
26       LOAN SECURED BY THE PERSON'S PRIMARY RESIDENCE, IF THE LOAN                                                       
27       CLOSED BEFORE THE PERSON BECAME AN EMPLOYEE SUBJECT TO THIS                                                       
28       SECTION].                                                                                                         
29    * Sec. 12.  AS 06.05.205 is repealed and reenacted to read:                                                        
30            Sec. 06.05.205.  Loans and extensions of credit.  (a)  The total loans and                                 
31       extensions of credit by a state bank to a person outstanding at one time and not fully                            
01       secured, as determined in a manner consistent with (b) of this section, by collateral                             
02       having a market value at least equal to the amount of the loan or extension of credit                             
03       may not exceed 15 percent of the unimpaired capital and unimpaired surplus of the                                 
04       state bank.                                                                                                       
05            (b)  The total loans and extensions of credit by a state bank to a person                                    
06       outstanding at one time and fully secured by readily marketable collateral having a                               
07       market value, as determined by reliable and continuously available price quotations, at                           
08       least equal to the amount of the money outstanding, may not exceed 10 percent of the                              
09       unimpaired capital and unimpaired surplus of the state bank.  The limitation in this                              
10       subsection is separate from and in addition to the limitation contained in (a) of this                            
11       section.                                                                                                          
12            (c)  The limitations contained in (a) and (b) of this section are subject to the                             
13       following exceptions:                                                                                             
14                 (1)  loans or extensions of credit arising from the discount of                                         
15       commercial or business paper evidencing an obligation to the person negotiating it                                
16       with recourse are not subject to a limitation based on unimpaired capital and                                     
17       unimpaired surplus;                                                                                               
18                 (2)  the purchase of bankers' acceptances described in AS 06.05.275                                     
19       and issued by other banks are not subject to a limitation based on unimpaired capital                             
20       and unimpaired surplus;                                                                                           
21                 (3)  loans or extensions of credit secured by bills of lading, warehouse                                
22       receipts, or similar documents transferring or securing title to readily marketable                               
23       staples are subject to a limitation of 35 percent of unimpaired capital and unimpaired                            
24       surplus in addition to the general limitations if the market value of the staples securing                        
25       each additional loan or extension of credit at all times equals or exceeds 115 percent of                         
26       the outstanding amount of the loan or extension of credit; in order to be considered                              
27       under this paragraph, the staples must be fully covered by insurance whenever it is                               
28       customary to insure those staples;                                                                                
29                 (4)  loans or extensions of credit secured by bonds, notes, certificates of                             
30       indebtedness, or treasury bills of the United States or by other such obligations fully                           
31       guaranteed as to principal and interest by the United States are not subject to a                                 
01       limitation based on unimpaired capital and unimpaired surplus;                                                    
02                 (5)  loans or extensions of credit to, or secured by unconditional takeout                              
03       commitments or guarantees of, any department, agency, bureau, board, commission,                                  
04       or establishment of the United States or a corporation wholly owned directly or                                   
05       indirectly by the United States are not subject to a limitation based on unimpaired                               
06       capital and unimpaired surplus;                                                                                   
07                 (6)  loans or extensions of credit secured by a segregated deposit                                      
08       account in the lending state bank are not subject to a limitation based on unimpaired                             
09       capital and unimpaired surplus;                                                                                   
10                 (7)  loans or extensions of credit to a bank or to a receiver, conservator,                             
11       superintendent of banks, or other agent in charge of the business and property of that                            
12       bank, if approved by the department, are not subject to a limitation based on                                     
13       unimpaired capital and unimpaired surplus;                                                                        
14                 (8)  loans or extensions of credit arising from the discount of negotiable                              
15       or non-negotiable installment consumer paper that carries a full recourse endorsement                             
16       or unconditional guarantee by the person transferring the paper are subject under this                            
17       section to a maximum limitation equal to 25 percent of unimpaired capital and                                     
18       unimpaired surplus, notwithstanding the collateral requirements set out in (b) of this                            
19       section; however, if the state bank's files or the knowledge of its officers of the                               
20       financial condition of each maker of that consumer paper is reasonably adequate, and                              
21       an officer of the state bank designated for that purpose by the board of directors of the                         
22       state bank certifies in writing that the state bank is relying primarily upon the                                 
23       responsibility of each maker for payment of the loans or extensions of credit and not                             
24       upon any full or partial recourse endorsement or guarantee by the transferor, the                                 
25       limitations of (a) and (b) of this section as to the loans or extensions of credit of each                        
26       such maker are the sole applicable loan limitations;                                                              
27                 (9)  loans or extensions of credit secured by shipping documents or                                     
28       instruments transferring or securing title covering livestock or giving a lien on                                 
29       livestock when the market value of the livestock securing the obligation is not at any                            
30       time less than 115 percent of the face amount of the note covered are subject under                               
31       this section, notwithstanding the collateral requirements set out in (b) of this section,                         
01       to a maximum limitation equal to 25 percent of unimpaired capital and unimpaired                                  
02       surplus;                                                                                                          
03                 (10)  loans or extensions of credit, arising from the discount by dealers                               
04       in dairy cattle of paper given in payment for dairy cattle and carrying a full recourse                           
05       endorsement or unconditional guarantee of the seller, that are secured by the cattle                              
06       being sold are subject under this section, notwithstanding the collateral requirements                            
07       set out in (b) of this section, to a maximum limitation equal to 25 percent of                                    
08       unimpaired capital and unimpaired surplus.                                                                        
09            (d)  Except with the written prior approval of the department for an acquisition                             
10       or merger with another financial institution, or except with the written prior approval                           
11       of the department in order to prevent loss upon an indebtedness previously contracted                             
12       in good faith, a state bank may not                                                                               
13                 (1)  accept as security for a loan the capital stock of the state bank;                                 
14                 (2)  accept as security for a loan the capital stock of the state bank's                                
15       parent holding companies, unless the stock of the holding companies is publicly traded                            
16       on a nationally recognized exchange; or                                                                           
17                 (3)  loan money that is to be used to purchase the capital stock of the                                 
18       state bank or a parent holding company of the state bank.                                                         
19            (e)  The department may adopt regulations to administer and carry out the                                    
20       purposes of this section, including, notwithstanding any contrary provision of this                               
21       section, regulations to define or further define terms used in this section in order to                           
22       establish limits or requirements other than those specified in this section for particular                        
23       classes or categories of loans or extensions of credit.                                                           
24            (f)  For purposes of this section, the department may determine when a loan                                  
25       putatively made to a person shall be attributed to another person.                                                
26            (g)  In this section, "person" means an individual, sole proprietorship,                                     
27       partnership, joint venture, association, trust, estate, business trust, corporation, or any                       
28       similar entity or organization.                                                                                   
29    * Sec. 13.  AS 06.05.209(b) is amended to read:                                                                    
30            (b)  A state bank may issue a credit card or other similar credit granting device                        
31       to a customer for obtaining money, goods, services, or anything else of value, and,                           
01       notwithstanding AS 45.45.010, the state bank, when credit is extended under this                          
02       section, may impose a service charge at a monthly rate as agreed upon by contract                             
03       between the state bank and the customer receiving the credit granting device                                  
04       [THAT RESULTS IN AN ANNUAL RATE NOT IN EXCESS OF 17 PERCENT ON                                                    
05       THE OUTSTANDING BALANCE.  HOWEVER, IN ADDITION, WHEN CASH IS                                                      
06       ADVANCED UNDER THIS SECTION, THE BANK MAY IMPOSE A SETUP                                                          
07       CHARGE THAT DOES NOT EXCEED THREE PERCENT OF THE FUNDS                                                            
08       ADVANCED, OR $12, WHICHEVER IS LESS, EXCEPT THAT ON LOANS OF                                                      
09       UNDER $100 A MINIMUM NOT EXCEEDING $3 MAY BE CHARGED].                                                            
10    * Sec. 14.  AS 06.05.209(b) is amended to read:                                                                    
11            (b)  Subject to the restrictions imposed on a bank by AS 45.45.920, a [A]                                
12       state bank may issue a credit card or other similar credit granting device to a customer                          
13       for obtaining money, goods, services, or anything else of value, and, notwithstanding                             
14       AS 45.45.010,  the state bank, when credit is extended under this section, may impose                             
15       a service charge at a monthly rate as agreed upon by contract between the state bank                              
16       and the customer receiving the credit granting device.                                                            
17    * Sec. 15.  AS 06.05.210(a) is amended to read:                                                                    
18            (a)  Subject to the same terms and conditions applicable to other loans, a                                   
19       director or executive [,] officer [, OR EMPLOYEE] of a state bank may borrow up to                            
20       $100,000, or up to $250,000 for the director's or executive [,] officer's [, OR                               
21       EMPLOYEE'S] primary residence, from the state bank at the discretion of the chief                         
22       executive or managing officer of the state bank.  A loan to a director or executive [,]                   
23       officer [, OR EMPLOYEE] that makes the total amount owed to the state bank by the                             
24       director or executive [,] officer [, OR EMPLOYEE] in excess of the limits in this                             
25       subsection, or loans of any amount to the chief executive or managing officer of the                              
26       state bank, shall have the prior approval of the board of directors, shall be reported to                     
27       the department within 30 days, and shall be secured by adequate collateral.                                       
28    * Sec. 16.  AS 06.05.210 is amended by adding a new subsection to read:                                            
29            (c)  Notwithstanding (a) of this section, loans to directors, executive officers,                            
30       and other officers and employees of a state bank are subject to the lending limits                                
31       imposed by AS 06.05.205 and the regulations adopted under that section.                                           
01    * Sec. 17.  AS 06.05 is amended by adding a new section to read:                                                   
02            Sec. 06.05.237.  Financial holding companies.  Notwithstanding the                                         
03       provisions of AS 06.05.235 and regulations adopted under that section, a holding                                  
04       company formed under this title may apply to the Federal Reserve System for status as                             
05       a financial holding company.  If the status is granted, the financial holding company                             
06       has powers as a financial holding company authorized by the Federal Reserve System                                
07       if                                                                                                                
08                 (1)  at the time of application, the holding company provides the                                       
09       department with a complete copy of the application;                                                               
10                 (2)  the holding company provides the department with copies of all                                     
11       correspondence concerning the application;                                                                        
12                 (3)  the holding company provides the department with a copy of the                                     
13       approval by the Federal Reserve System within 10 days after the holding company                                   
14       receives the approval; and                                                                                        
15                 (4)  the department does not issue a letter denying financial holding                                   
16       company status within 30 days after the approval by the Federal Reserve System.                                   
17    * Sec. 18.  AS 06.05.245 is amended to read:                                                                       
18            Sec. 06.05.245.  Disposition of property not needed in the conduct of a                                    
19       banking business.  All investments in real and personal property, regardless of how                     
20       acquired, not permitted [NECESSARY FOR THE CONVENIENT                                                     
21       TRANSACTION OR PROMOTION OF A BANKING BUSINESS] under                                                             
22       AS 06.05.230 that come [COMES] into the possession of a state bank shall be                                   
23       disposed of as soon as possible.  If the real or personal property is not sold within the                         
24       time limit set [PRESCRIBED] by the department in regulations, it shall be written off                         
25       and may not be carried as an asset of the state bank.                                                         
26    * Sec. 19.  AS 06.05.272(b) is amended to read:                                                                    
27            (b)  Under this section, a state bank's total investment in its subsidiaries                             
28       may not exceed that which is permissible for a federally chartered bank's total                               
29       investment in all subsidiaries as set out in 12 U.S.C. 24a, as amended [BANK                                  
30       MAY INVEST IN SUBSIDIARIES AN AMOUNT EQUAL TO THE LESSER OF                                                       
31       20 PERCENT OF ITS TOTAL ASSETS OR 50 PERCENT OF ITS TOTAL                                                         
01       CAPITAL ACCOUNTS].  Loans to subsidiaries are considered investments subject to                                   
02       the limitations of this subsection.                                                                               
03    * Sec. 20.  AS 06.05.301(a) is amended to read:                                                                    
04            (a)  Except for national banks with a principal place of business in the state,                              
05       and interstate state banks and international banks with a certificate of authority under                      
06       AS 06.05.555, a corporation may not engage in the banking business unless the                                     
07       corporation is organized under AS 10.06 (Alaska Corporations Code) and this title.                                
08    * Sec. 21.  AS 06.05.350(d) is amended to read:                                                                    
09            (d)  Except as authorized under this section, a person may not                                               
10                 (1)  engage in the business of receiving deposits, discounting evidences                                
11       of indebtedness, or receiving money for transmission;                                                             
12                 (2)  represent that the person is [, OR ACTS FOR,] a bank; or                                           
13                 (3)  use any form of the word "bank" in the person's name unless                                    
14       the person is a state bank formed under this title or a bank formed under the                                 
15       authority of another state or an agency of the federal government, or unless it is                            
16       clear that the use does not represent that the person is a bank; the prohibition in                           
17       this paragraph does not apply to a food bank, blood bank, or similar                                          
18       organization that cannot readily be confused with a bank [AN ARTIFICIAL OR                                    
19       CORPORATE NAME THAT PURPORTS TO BE OR SUGGESTS THAT IT IS                                                         
20       THE NAME OF A BANK].                                                                                              
21    * Sec. 22.  AS 06.05.350 is amended by adding a new subsection to read:                                            
22            (e)  A person prohibited by (d)(3) of this section from using any form of the                                
23       word "bank" in its name may apply to the commissioner for authority to use a form of                              
24       the word "bank" in its name.                                                                                      
25    * Sec. 23.  AS 06.05.426(b) is amended to read:                                                                    
26            (b)  A state bank may establish, maintain, and operate an automated teller                                   
27       machine at a location other than bank premises by notifying the department 30 days                            
28       before the date of establishment [WITH THE PRIOR APPROVAL OF THE                                              
29       DEPARTMENT].  An automated teller machine operated off bank premises shall be                                     
30       made available on a nondiscriminatory basis for use by depositors of other                                    
31       depository institutions [BANKS] authorized to do business in the state [AND THEIR                             
01       CUSTOMERS], upon the agreement of the other depository institutions [BANKS] to                                
02       pay a fair and equitable amount for the use of the machine.                                                       
03    * Sec. 24.  AS 06.05.426(c) is repealed and reenacted to read:                                                     
04            (c)  The notice required in (b) of this section must include                                                 
05                 (1)  the location and general description of the surrounding area,                                      
06       including a description of the business establishment, if any, in which the machine will                          
07       be located;                                                                                                       
08                 (2)  the manner of operation and the kinds of transactions that the                                     
09       machine will perform;                                                                                             
10                 (3)  the names of the other depository institutions that will share the                                 
11       machine's services; and                                                                                           
12                 (4)  other information required by the department.                                                      
13    * Sec. 25.  AS 06.05.426(d) is amended to read:                                                                    
14            (d)  A state bank may invest in a corporation organized to operate machines                                  
15       that perform automated teller services for two or more depository institutions                                
16       [BANKS, IF EACH BANK OWNS PART OF THE CAPITAL STOCK OF THE                                                        
17       CORPORATION].                                                                                                     
18    * Sec. 26.  AS 06.05.426 is amended by adding a new subsection to read:                                            
19            (e)  A person may not establish or operate an automated teller machine that                                  
20       accepts deposits unless those deposits are insured by the Federal Deposit Insurance                               
21       Corporation or another agency of the United States that insures deposits.                                         
22    * Sec. 27.  AS 06.05.435(c) is amended to read:                                                                    
23            (c)  Unless otherwise approved by the department, each director of a state                               
24       bank shall own, in the director's own right or jointly with the director's spouse, free of                        
25       any encumbrance, common or preferred stock of the state bank or of an entity that                             
26       controls the state bank that has an aggregate par value of at least $1,000, an                                
27       aggregate shareholder's equity of at least $1,000, or an aggregate fair market                                
28       value of at least $1,000 [CAPITAL STOCK OF THE BANK IN AN AMOUNT                                              
29       EQUAL TO AT LEAST $1,000 IN PAR VALUE].                                                                           
30    * Sec. 28.  AS 06.05.435 is amended by adding new subsections to read:                                             
31            (h)  In the case of an entity that owns more than one bank, a director may use                               
01       the director's equity interest in the controlling entity to satisfy, in whole or in part, the                     
02       equity interest requirement for one or all of the controlled banks.                                               
03            (i)  The value of the common or preferred stock held by a director of a state                                
04       bank or of an entity that controls the state bank is valued as of the date purchased, or                          
05       as of the date on which the individual became a director, whichever value is greater.                             
06    * Sec. 29.  AS 06.05.550 is amended to read:                                                                       
07            Sec. 06.05.550.  Authority of international bank, [OR] interstate state                                
08       bank, or interstate national bank to branch.  (a)  An international bank, [OR] an                             
09       interstate state bank, or an interstate national bank whose deposits are insured by                       
10       the Federal Deposit Insurance Corporation [,] may acquire a branch bank as the result                             
11       of a merger or consolidation of the international bank, [OR] interstate state bank, or                
12       interstate national bank with, or the purchase of all or substantially all of the assets                      
13       of, a state bank, a national bank with its principal office in this state, or a branch of the                     
14       state bank or national bank, unless the state bank or national bank is a recently formed                          
15       bank.                                                                                                             
16            (b)  An international bank may establish a new branch bank in this state or                                  
17       acquire a recently formed bank [,] if the department approves the establishment or                                
18       acquisition before the establishment or acquisition occurs.  An interstate state bank or                  
19       interstate national bank may not establish a branch bank in this state unless the                             
20       establishment occurs through an acquisition under (a) of this section of a bank located                           
21       in the state.  An interstate state bank or interstate national bank may not establish a                   
22       new branch bank in this state.                                                                                    
23            (c)  An interstate state bank, interstate national bank, or international bank                           
24       that opens, occupies, or maintains a branch bank in the state has the same powers                                 
25       under the laws of the state as a state or national bank of the same type.                                         
26    * Sec. 30.  AS 06.05.555(a) is amended to read:                                                                    
27            (a)  Before acquiring a branch bank under AS 06.05.550(a) or establishing a                                  
28       branch bank under AS 06.05.550(b), an interstate state bank or international bank                             
29       shall file an application with the department for and receive a certificate of authority to                       
30       operate a branch bank.  The application must include                                                              
31                 (1)  all information and fees required under AS 06.05.399;                                              
01                 (2)  the name of the bank and the address of its principal office;                                      
02                 (3)  if an international bank, the country under whose laws it is                                       
03       organized;                                                                                                        
04                 (4)  the amount of the bank's capital actually paid in cash and the                                     
05       amount subscribed for and unpaid;                                                                                 
06                 (5)  a complete and detailed statement of the bank's financial condition;                               
07                 (6)  the names of all other states and countries in which the bank is                                   
08       admitted or qualified to do business;                                                                             
09                 (7)  a copy of the bank's charter, articles of incorporation, and bylaws,                               
10       as applicable;                                                                                                    
11                 (8)  if an international bank, evidence satisfactory to the department                                  
12       that the bank is authorized to conduct a banking business under the laws of the country                           
13       of its organization, and the nature of the bank's business;                                                       
14                 (9)  a properly executed designation of the department as the bank's                                    
15       agent for service of process in an action or proceeding arising out of a transaction                              
16       involving the branch bank; the designation must include the name and address of the                               
17       officer, agent, or other person to whom the department is to forward the process; and                             
18                 (10)  other information necessary or appropriate for the department to                                  
19       determine whether the bank is entitled to a certificate of authority from the                                     
20       department.                                                                                                       
21    * Sec. 31.  AS 06.05.555(b) is amended to read:                                                                    
22            (b)  The department shall notify the interstate state bank or international bank                         
23       of its action on the application.  If the application and the accompanying documents do                           
24       not comply with the requirements of (a) of this section, the department shall return                              
25       them with an explanation of the noncompliance.  If the department does not respond                                
26       within 30 days of its receipt of the application, the application is considered to be                             
27       accepted.                                                                                                         
28    * Sec. 32.  AS 06.05.555(c) is amended to read:                                                                    
29            (c)  The interstate state bank or international bank shall publish notice of the                         
30       application in the manner provided in AS 06.05.344(d) - (e). The notice must state the                            
31       proposed location of the branch bank.                                                                             
01    * Sec. 33.  AS 06.05.555(d) is amended to read:                                                                    
02            (d)  Upon acceptance of the application, the department shall conduct an                                     
03       investigation to determine that                                                                                   
04                 (1)  if an interstate state bank,                                                                   
05                      (A)  the laws of the home state of the bank authorize a state                                      
06            bank of this state to acquire a branch bank in the home state without conditions                             
07            or restrictions on the operations of the branch bank; and                                                    
08                      (B)  the bank supervisor of the home state of the bank has                                         
09            agreed to provide to the department the examination reports that the                                         
10            department determines sufficient to permit the department to determine on a                                  
11            current basis the financial condition of the bank;                                                           
12                 (2)  the proposal is consistent with a sound and competitive banking                                    
13       system;                                                                                                           
14                 (3)  the capital structure of the bank is adequate in relation to the                                   
15       anticipated business and costs of operating the branch bank;                                                      
16                 (4)  the name of the bank is not deceptively similar to the name of                                     
17       another branch bank or state bank and is not otherwise misleading; and                                            
18                 (5)  the other requirements of this chapter have been met.                                              
19    * Sec. 34.  AS 06.05.555(e) is amended to read:                                                                    
20            (e)  Not later than 150 days after the department accepts an application by an                               
21       interstate state bank or international bank for a certificate of authority to operate a                       
22       branch bank, the department shall make a determination whether to approve the                                     
23       application.  Within 30 days after the second publication of the notice referred to in (c)                        
24       of this section, a person opposing the pending application may file written objections                            
25       with the department.  When it approves or denies the application, the department shall                            
26       notify the bank and any other person who requested in writing to be notified, and, if                         
27       the application is denied, the department shall state the reasons for its decision.                               
28    * Sec. 35.  AS 06.05.555(f) is amended to read:                                                                    
29            (f)  The department shall issue a certificate of authority to an interstate state                        
30       bank or international bank to operate a branch bank if                                                        
31                 (1)  the conditions imposed by the department in granting the certificate                               
01       have been fulfilled; and                                                                                          
02                 (2)  the requirements of this chapter are satisfied.                                                    
03    * Sec. 36.  AS 06.05 is amended by adding a new section to read:                                                   
04            Sec. 06.05.557.  Notice filing for interstate national banks.  An interstate                               
05       national bank acquiring a branch in this state under AS 06.05.550 shall file a notice of                          
06       the acquisition with the department along with a copy of the application filed with the                           
07       agency that primarily regulates the interstate national bank.  The notice and copy of                             
08       the application shall be filed with the department at the same time the application is                            
09       filed with the agency that primarily regulates the interstate national bank.                                      
10    * Sec. 37.  AS 06.05.565(a) is amended to read:                                                                    
11            (a)  An interstate state bank or international bank operating a branch bank in                           
12       the state is subject to the provisions of this title [,] and the regulations adopted and                          
13       orders issued under this title, except for the residency requirements in                                          
14       AS 06.05.435(a).                                                                                                  
15    * Sec. 38.  AS 06.05.565(c) is amended to read:                                                                    
16            (c)  A branch bank of an interstate state bank or international bank operating                           
17       in the state is subject to examination under AS 06.01.015 and assessments under                                   
18       AS 06.01.010.  Assessments under AS 06.01.010(d) are based on the branch bank's                                   
19       total deposits in the state.                                                                                      
20    * Sec. 39.  AS 06.05.565(d) is amended to read:                                                                    
21            (d)  When the department considers it necessary to protect the public interest,                              
22       the department or a competent person designated by the department may examine an                                  
23       interstate state bank or international bank with a branch in the state.  The interstate                       
24       state bank or international bank shall pay an examination fee established under                               
25       AS 06.01.010.                                                                                                     
26    * Sec. 40.  AS 06.05.565(e) is amended to read:                                                                    
27            (e)  The department may require periodic reports from an interstate state                                
28       bank or an interstate national bank [OUT-OF-STATE DEPOSITORY                                                  
29       INSTITUTION] that maintains a branch in this state and from a bank holding                                        
30       company that controls the interstate state bank or interstate national bank [OUT-                             
31       OF-STATE DEPOSITORY INSTITUTION].  The reports shall be made under oath                                           
01       and filed as frequently as required by the department.  The reports must contain the                              
02       information and detail that the department determines to be appropriate to assure                                 
03       continuing compliance of the interstate state bank or interstate national bank                                
04       [OUT-OF-STATE DEPOSITORY INSTITUTION] with the provisions                                                     
05       [PROVISION] of this title.                                                                                        
06    * Sec. 41.  AS 06.05.565 is amended by adding a new subsection to read:                                            
07            (g)  An interstate national bank operating a branch bank in this state is subject                            
08       to the provisions of AS 06.05.548 and 06.05.550 and the regulations adopted and                                   
09       orders issued under those sections.                                                                               
10    * Sec. 42.  AS 06.05.570(a) is amended to read:                                                                    
11            (a)  An out-of-state bank holding company may acquire and own all or a                                       
12       portion of the voting securities or other capital stock of, or all or substantially all of the                    
13       assets of, one or more state banks, domestic bank holding companies, or national                                  
14       banks conducting a banking business in the state, unless the state bank or national                               
15       bank is a recently formed bank.  Before an out-of-state bank holding company may                                  
16       acquire a state bank or bank holding company of a state bank doing business in this                       
17       state, the out-of-state bank holding company shall apply for and obtain a permit from                             
18       the department.  In considering whether to issue a permit, the department shall                                   
19       consider the benefits to the public, the preservation of a competitive banking industry,                          
20       and the maintenance of a safe and sound bank industry.  To assure full protection of                              
21       the public, the department may require an out-of-state bank holding company that                                  
22       directly or indirectly owns, holds, or controls stock in a state bank or domestic bank                            
23       holding company to post a bond with the department under conditions established by                                
24       the department.  The amount of the bond may not be more than the product obtained                                 
25       by multiplying the amount of paid-in capital and paid-in surplus of the state bank or                             
26       domestic bank holding company by the percentage of state bank or domestic bank                                    
27       holding company stock directly or indirectly owned, held, or controlled by the out-of-                            
28       state bank holding company.                                                                                       
29    * Sec. 43.  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; in this paragraph, "institution"                               
01       includes a commercial bank, savings bank, credit union, premium finance                                       
02       company, small loan company, bank holding company, financial holding                                          
03       company, trust company, and savings and loan association;                                                     
04    * Sec. 44.  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. 45.  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. 46.  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 or that is subject to examination by the department                                
31       under this title;                                                                                             
01    * Sec. 47.  AS 06.05.990 is amended by adding new paragraphs to read:                                              
02                 (29)  "extension of credit" means a negotiable instrument, and includes                                 
03       promissory notes, acknowledgments of advance, due bills, invoices, overdrafts,                                    
04       acceptances, and similar written or oral obligations or evidence of debt whether                                  
05       secured or unsecured; in this paragraph, "negotiable instrument" has the meaning                                  
06       given in AS 45.03.104;                                                                                            
07                 (30)  "financial holding company" means an existing, or newly formed,                                   
08       domestic bank holding company that has been approved as a financial holding                                       
09       company by the Federal Reserve System and not denied that status by the department                                
10       under AS 06.05.237;                                                                                               
11                 (31)  "interstate national bank" means a national bank whose principal                                  
12       office, as designated in its articles of incorporation, is not located in this state;                             
13                 (32)  "interstate state bank" means a person organized under the laws of                                
14       another state and holding a charter, license, or certificate  of authority from another                           
15       state to engage in a banking business.                                                                            
16    * Sec. 48.  AS 06.15.100 is repealed and reenacted to read:                                                        
17            Sec. 06.15.100.  Prohibited conduct of trustees.  A trustee may not                                        
18                 (1)  receive remuneration as trustee except reasonable fees for                                         
19       attendance at meetings of trustees or for services as a member of a committee of                                  
20       trustees;                                                                                                         
21                 (2)  use the position as trustee, or knowingly allow it to be used, to                                  
22       obtain preferential terms in dealings with the mutual bank for which the person is                                
23       trustee;                                                                                                          
24                 (3)  use the position as trustee, or knowingly allow it to be used, to                                  
25       induce an actual or prospective borrower from the mutual bank for which the person is                             
26       trustee to purchase goods or services at a direct or indirect profit to the trustee.                              
27    * Sec. 49.  AS 06.15 is amended by adding a new section to read:                                                   
28            Sec. 06.15.105.  Trustee borrowing.  A person may borrow money from the                                    
29       mutual bank for which the person is trustee to the same extent that a director may                                
30       borrow money under AS 06.05.210.                                                                                  
31    * Sec. 50.  AS 06.20.010 is amended by adding a new subsection to read:                                            
01            (b)  A person who is doing business under and as permitted by any law of the                                 
02       state or of the United States relating to banks, savings banks, trust companies, building                         
03       and loan associations, or credit unions and who is exempt from the licensing                                      
04       requirement in (a) of this section shall comply with all other provisions of this chapter.                        
05    * Sec. 51.  AS 06.45.020(a) is amended to read:                                                                    
06            (a)  Seven or more natural persons who desire to form a credit union shall                                   
07       subscribe before an officer competent to administer oaths, articles of incorporation in                           
08       duplicate that must state                                                                                         
09                 (1)  the name of the credit union;                                                                      
10                 (2)  the location of the credit union and the territory in which it will                                
11       operate;                                                                                                          
12                 (3)  the names and addresses of the subscribers to the certificate and the                              
13       number of shares each subscribed;                                                                                 
14                 (4)  the par value of the shares, which must [SHALL] be a minimum                               
15       of $5 each;                                                                                                   
16                 (5)  the proposed field of membership specified in detail;                                              
17                 (6)  the term of the existence of the credit union, which may be                                        
18       perpetual; and                                                                                                    
19                 (7)  the fact that the articles of incorporation are adopted to enable the                              
20       persons to avail themselves of the advantages of this chapter.                                                    
21    * Sec. 52.  AS 06.45.060(5) is amended to read:                                                                    
22                 (5)  make loans, the maturities of which may not exceed 20 [12] years                               
23       except as provided in this chapter, and extend lines of credit to its members, to other                           
24       credit unions, and to credit union organizations and participate with other credit                                
25       unions, credit union organizations, or financial organizations in making loans to credit                          
26       union members in accordance with the following:                                                                   
27                      (A)  loans to members shall be made in conformity with                                             
28            regulations adopted by the commissioner, except that                                                         
29                           (i)  a residential real estate loan that [WHICH] is made                                  
30                 to finance the acquisition of a one- to four-family dwelling for the                                    
31                 principal residence of a credit union member that [WHICH] is secured                                
01                 by a first lien on the dwelling may have a maturity not exceeding 30                                    
02                 years;                                                                                                  
03                           (ii)  a loan to finance the purchase of a mobile home                                         
04                 that [, WHICH] is secured by a first lien on the mobile home, to be                                 
05                 used as the residence of a credit union member, or for the repair,                                      
06                 alteration, or improvement of a residential dwelling that is the residence                              
07                 of a credit union member must [SHALL] have a maturity not to exceed                                 
08                 20 [15] years unless the loan is insured or guaranteed under (iii) of this                          
09                 subparagraph;                                                                                           
10                           (iii)  a loan secured by the insurance or guarantee of the                                    
11                 federal government, of a state government, or an agency of either may                                   
12                 be made for the maturity and under the terms and conditions specified                                   
13                 in the law under which the insurance or guarantee is provided;                                          
14                           (iv)  a loan or aggregate of loans to a director or member                                    
15                 of the supervisory or credit committee of the credit union making the                                   
16                 loan that [WHICH] exceeds $20,000 [$5,000] plus pledged shares shall                            
17                 be approved by the board of directors;                                                                  
18                           (v)  loans to other members for which directors or                                            
19                 members of the supervisory or credit committee act as guarantor or                                      
20                 endorser shall be approved by the board of directors when the loans                                     
21                 standing alone or when added to an outstanding loan or loans of the                                     
22                 guarantor or endorser exceed $20,000 [$5,000];                                                      
23                           (vi)  the rate of interest may not exceed the greater of 15                                   
24                 percent a year or the rate specified in AS 45.45.010(b);                                                
25                           (vii)  the taking, receiving, reserving, or charging of a                                     
26                 rate  of interest greater than is allowed by this paragraph, when                                       
27                 knowingly done, is considered a forfeiture of the entire interest that the                              
28                 note, bill, or other evidence of debt carries with it, or that has been                                 
29                 agreed to be paid on the note, bill, or other evidence of debt; if a greater                            
30                 rate of interest has been paid, the person by whom it has been paid or                                  
31                 the person's legal representatives may recover back from the credit                                     
01                 union taking or receiving it the entire amount of interest paid, but the                                
02                 action must be commenced within two years from the time the usurious                                    
03                 collection was made;                                                                                    
04                           (viii)  a borrower may repay a loan before maturity in                                        
05                 whole or in part on any business day without penalty;                                                   
06                           (ix)  loans shall be paid or amortized under regulations                                      
07                 adopted by the commissioner that consider the needs or conditions of                                    
08                 the borrowers, the amounts and duration of the loans, the interests of                                  
09                 the members and the credit union, and other factors established in                                      
10                 regulations adopted by the commissioner;                                                                
11                           (x)  the total dollar amount of real estate loans and                                         
12                 mobile home loans outstanding may not exceed 25 percent of the assets                                   
13                 of the credit union without the written approval of the commissioner;                                   
14                           (xi)  a credit union with assets of less than $3,000,000                                      
15                 may make real estate loans with maturities in excess of 15 years only                                   
16                 with the approval of the commissioner;                                                                  
17                      (B)  a self-replenishing line of credit to a borrower may be                                       
18            established to a stated maximum amount on terms and conditions that may be                                   
19            different from terms and conditions established for another borrower;                                        
20                      (C)  loans to other credit unions require the approval of the                                      
21            board of directors of the loaning credit union;                                                              
22                      (D)  loans to credit union associations require the approval of                                    
23            the board of directors of the credit union and may not exceed one percent of                                 
24            the paid-in and unimpaired capital and surplus of the credit union;                                          
25                      (E)  participation loans with other credit unions, credit union                                    
26            associations, or financial organizations shall be made in accordance with                                    
27            written policies of the board of directors of the credit union, except that a credit                         
28            union that originates a loan for which participation arrangements are made in                                
29            accordance with this section shall retain an interest not less than 10 percent of                            
30            the face amount of the loan;                                                                                 
31    * Sec. 53.  AS 06.45.060(7) is amended by adding new subparagraphs to read:                                        
01                      (L)  in bankers' acceptances issued by a financial institution                                     
02            whose accounts are insured by an agency of the federal government;                                           
03                      (M)  in stock of a federal home loan bank; the investment must                                     
04            be limited to the minimum amount of stock required for membership in the                                     
05            federal home loan bank, plus any additional stock purchase required to obtain                                
06            an advance of funds from a federal home loan bank;                                                           
07                      (N)  in obligations of, or issued by, a state or political                                         
08            subdivision of the state, except that a credit union may not invest more than 10                             
09            percent of its unimpaired capital and surplus in the obligations of any one                                  
10            issuer, exclusive of general obligations of the issuer; in this subparagraph,                                
11            "political subdivision of the state" includes an agency, corporation, or                                     
12            instrumentality of a state or political subdivision;                                                         
13    * Sec. 54.  AS 06.45.060 is amended by adding a new paragraph to read:                                             
14                 (16)  issue solicited or unsolicited credit cards or other similar credit                               
15       granting devices to a member for obtaining money, goods, services or anything else of                             
16       value; notwithstanding (5)(A)(vi) of this section and AS 45.45.010, when credit is                                
17       extended under this section, the credit union may impose a service charge at a monthly                            
18       rate as agreed upon by contract between the credit union and the member receiving the                             
19       credit granting device, but the credit union may not hold the member liable for charges                           
20       made on a credit card or other credit granting device before its acceptance by the                                
21       member; before an unsolicited card is considered accepted by the member, the                                      
22       member shall execute and furnish to the credit union a written statement of                                       
23       acceptance; in addition, a credit union may charge fees for credit cards or other similar                         
24       credit granting devices.                                                                                          
25    * Sec. 55.  AS 06.45 is amended by adding a new section to read:                                                   
26            Sec. 06.45.295.  Automated teller machines.  (a)  A state credit union may                                 
27       establish, maintain, and operate an automated teller machine on the premises of the                               
28       main office or a branch office of the state credit union.                                                         
29            (b)  A state credit union may establish, maintain, and operate an automated                                  
30       teller machine at a location other than credit union premises by notifying the                                    
31       department 30 days before the date of establishment.  An automated teller machine                                 
01       operated off credit union premises shall be made available on a nondiscriminatory                                 
02       basis for use by depositors of other depository institutions authorized to do business in                         
03       the state, upon the agreement of the other depository institutions to pay a fair and                              
04       equitable amount for the use of the machine.                                                                      
05            (c)  The notice required by (b) of this section must include                                                 
06                 (1)  the location and general description of the surrounding area,                                      
07       including a description of the business establishment, if any, in which the machine will                          
08       be located;                                                                                                       
09                 (2)  the manner of operation and the kinds of transactions that the                                     
10       machine will perform;                                                                                             
11                 (3)  the names of the other depository institutions that will share the                                 
12       machine's services; and                                                                                           
13                 (4)  other information required by the department.                                                      
14            (d)  A state credit union may invest in a corporation organized to operate                                   
15       machines that perform automated teller services for two or more depository                                        
16       institutions.                                                                                                     
17            (e)  A person may not establish or operate an automated teller machine that                                  
18       accepts deposits unless those deposits are insured by the National Credit Union Share                             
19       Insurance Fund or another agency of the United States that insures deposits.                                      
20    * Sec. 56.  AS 45.45 is amended by adding a new section to read:                                                   
21            Sec. 45.45.920.  Calculation of credit card business use charges.  A bank or                               
22       credit card company may not include the amount of a purchase tax in the amount that                               
23       it uses to calculate the company's business use charge.  In this section,                                         
24                 (1)  "bank or credit card company" means a bank or company that                                         
25       extends credit to a person by issuing credit cards to the person to use to pay for                                
26       purchases;                                                                                                        
27                 (2)  "business" means a person who engages in the business of selling                                   
28       at retail goods, services, real property, or interests in real property;                                          
29                 (3)  "business use charge" means the amount a bank or credit card                                       
30       company charges a business to allow the business to accept the bank's or credit card                              
31       company's credit card from a customer as payment for a customer's purchase;                                       
01                 (4)  "credit card" means a card that authorizes purchases on credit;                                    
02                 (5)  "purchase tax" means a tax imposed on a retail purchase by the                                     
03       state or a municipality, including a sales tax, use tax, and a tax on overnight                                   
04       accommodations, but not including an income tax.                                                                  
05    * Sec. 57.  AS 06.05.005(b)(3), 06.05.175, 06.05.272(d), 06.05.990(18); and                                        
06 AS 06.20.330(a) are repealed.                                                                                           
07    * Sec. 58.  The uncodified law of the State of Alaska is amended by adding a new section to                        
08 read:                                                                                                                   
09       INDIRECT COURT RULE AMENDMENTS.  AS 06.01.028(b), added by sec. 4 of                                              
10 this Act, has the effect of changing Rule 45, Alaska Rules of Civil Procedure, Rules 17 and                             
11 37, Alaska Rules of Criminal Procedure, and Rule 24, Alaska Bar Rules, because                                          
12 AS 06.01.028(b) requires certain court orders compelling disclosure to provide for                                      
13 reimbursement of a financial institution's reasonable costs of complying with the order.                                
14    * Sec. 59.  The uncodified law of the State of Alaska is amended by adding a new section to                        
15 read:                                                                                                                   
16       TRANSITION:  REGULATIONS.  Notwithstanding sec. 63 of this Act, the                                               
17 Department of Community and Economic Development may immediately proceed to adopt                                       
18 regulations necessary to implement the changes made by this Act.  The regulations take effect                           
19 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the                                 
20 statutory changes.                                                                                                      
21    * Sec. 60.  The uncodified law of the State of Alaska is amended by adding a new section to                        
22 read:                                                                                                                   
23       INSTRUCTION TO REVISOR.  The revisor of statutes is instructed to change the                                      
24 catchline of                                                                                                            
25            (1)  AS 06.05.555 from "Certificate of authority for interstate and international                            
26 branching" to "Certificate of authority for interstate state bank and international bank                                
27 branching"; and                                                                                                         
28            (2)  AS 06.05.565 from "Applicability of title to interstate or international                                
29 banks, to out-of-state depository institutions, and to bank holding companies" to                                       
30 "Applicability of title to interstate state banks, interstate national banks, international banks,                      
31 and bank holding companies."                                                                                            
01    * Sec. 61.  Section 59 of this Act takes effect immediately under AS 01.10.070(c).                                 
02    * Sec. 62.  Sections 14 and 56 of this Act take effect July 1, 2002.                                               
03    * Sec. 63.  Except as provided in secs. 61 and 62 of this Act, this Act takes effect July 1,                       
04 2001.