| Notice Filed with SOS |
08/30/2024 |
| Rule |
ProposedRuleAttach2024-00426.docx
|
| Additional Information |
AddInfoAttach2024-00426.pdf
|
| Statutory Authority |
11-101-102. Declaration of policy.
11-102-104. Powers and duties of the banking board
11-109-103. Applicability of powers of banking board and bank commissioner to trust companies.
11-109-902. Investments |
| Description of Subjects/Issues |
The purpose of this rule is to establish specific guidelines for depository trust companies (DTCs) to purchase existing commercial loans or participations in existing commercial loans.
The purpose of this rulemaking is to amend Rule 3 CCR 701-6 TC18.
The Division finds that the proposed amendments this rule are necessary as follows:
Align Rule with the Office of the Comptroller of the Currency lending limit regulations (12 CFR Part 32) and FDIC capital regulations (12 CFR Part 324).
Include a reference to Section 11-109-907(2), C.R.S., which specifies two instances when a DTC may make a loan or extension of credit.
Update the types of depository institutions. The regulation of industrial banks was repealed July 1, 2013, with the passage of Senate Bill 13-154, and non-depository trust companies may not accept deposits and thus should be removed as depository institutions.
Include the Prompt Corrective Action “adequately capitalized” capital ratios through the incorporation by reference the following applicable code of federal regulation:
o Code of Federal Regulations Title 12 - Banks and Banking Chapter III - FDIC Subchapter B.
The incorporated material is available at https://banking.colorado.gov/banking-home/rules-statutes.
Allow the lender additional time to bring the nonconforming loan into compliance where judicial
proceedings, regulatory actions or other extraordinary occurrences would prevent the lender from
taking such action. |
| Purpose/Objective of Rule |
The purpose of this rule is to establish specific guidelines for depository trust companies to purchase existing commercial loans or participations in existing commercial loans. |
| Basis And Purpose |
BasisAndPurposeAttachment2024-00426.pdf
|
| Comments |
Align Rule with the OCC lending limit regulations (12 CFR Part 32) and FDIC capital regulations (12 CFR Part 324).
Include a reference to Section 11-109-907(2), C.R.S., which specifies two instances when a trust company may make a loan or extension of credit.
Update the types of depository institutions. The regulation of industrial banks was repealed effective July 1, 2013, & non-depository trust companies may not accept deposits & thus should be removed as depository institutions.
Include the Prompt Corrective Action “adequately capitalized” capital ratios through the incorporation of the following applicable code of federal regulation:
o Code of Federal Regulations Title 12 - Banks and Banking Chapter III - FDIC Subchapter B
Allow the lender additional time to bring the nonconforming loan into compliance where judicial proceedings, regulatory actions or other extraordinary occurrences would prevent the lender from taking such action. |
| Submitted in response to issues raised by COLS/OLLS? |
No
|
| Is this rule adopted in response to recent legislation? |
No
|
| Hearing Date |
10/17/2024 |
| Hearing Time |
10:00 AM |
| Hearing Location |
1560 Broadway, Suite 100D, Denver, Colorado |
| Contact Name |
Charles Siler |
| Contact Title |
Banking Board Administrator |
| Contact Telephone |
3038947584 |
| Contact email |
charles.siler@state.co.us |