69U-105.206: Regulatory Standards for Evaluating Applications
PURPOSE AND EFFECT: The proposed rule amendment updates the rule to reflect changes in initial capital amounts in Section 658.21, Florida Statutes. Chapter 2008-75, Laws of Florida, increased minimum initial capital amounts to $8 million for banks and $3 million for trust companies.
SUMMARY: The proposed rule amendment updates the rule to reflect changes in initial capital amounts in Section 658.21, Florida Statutes. Chapter 2008-75, Laws of Florida, increased minimum initial capital amounts to $8 million for banks and $3 million for trust companies.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: 1) No requirement for a SERC was triggered under Section 120.541(1), F.S.; and 2) The amendments will not exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 655.012(2), 658.26(2)(a) FS.
LAW IMPLEMENTED: 517.051(5), 517.301, 517.311, 655.001(2)(c), (d), 655.0322, 655.037, 655.0385, 655.0386, 655.057(6), 658.19, 658.20, 658.21, 658.25, 658.26, 658.33, 665.013, 667.003 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Jeffrey Jones, Office of Financial Regulation, jeffrey.jones@flofr.com
THE FULL TEXT OF THE PROPOSED RULE IS:
69U-105.206 Regulatory Standards for Evaluating Applications.
(1) No change.
(2) Standards. In making its determination OFR shall consider the following statutory criteria:
(a) No change.
(b) Capital structure.
1. Capital should be adequate to enable the new state financial institution to provide necessary services for state financial institutions, including loans of sufficient size, to meet the needs of prospective customers.
2. Capital should be sufficient to purchase, build, or lease a suitable permanent facility complete with equipment.
3. The initial capital accounts, at opening, for a new bank or association shall not be less than $8.0 million $2.0 million in non-metropolitan areas and $4.0 million in metropolitan areas. OFR may determine that higher amounts are necessary based on local market conditions or the operating plans of the organizing group. A higher amount may not be required where the applicant is proposed as a subsidiary of a registered financial institution holding company upon a finding by OFR that the financial institution holding company and its affiliated financial institutions have demonstrated satisfactory performance records of meeting OFR requirements.
4. The initial capital accounts, at opening, for a new trust company shall not be less than $3.0 $2.0 million.
5. The capital referred to above shall be allocated among capital stock, paid-in surplus, and undivided profits in the ratios set forth in subsection (3) of Section 658.21, F.S.
6. With respect to all classes and series of voting stock, the voting rights, right to receive payment of dividends, right to receive payment in the event of liquidation, and any other rights or benefits of ownership shall be proportional to the amount of capital contributed in exchange for such shares.
(c) through (d) No change.
(3) through (5) No change.
Rulemaking Specific Authority 655.012(2) 655.012(3), 658.26(2)(a) FS. Law Implemented 517.051(5), 517.301, 517.311, 655.001(2)(c), (d), 655.0322, 655.037, 655.0385, 655.0386, 655.057(6), 658.19, 658.20, 658.21, 658.25, 658.26, 658.33, 665.013, 667.003 FS. History–New 5-24-78, Amended 6-9-81, Formerly 3C-10.051, Amended 6-20-90, Formerly 3C-10.0051, Amended 8-14-94, 4-15-98, Formerly 3C-105.206, Amended_________.