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Senate committee adopts amendment clarifying 'each renewal' in bank-acquisition bill; bill passes
Summary
The Senate Insurance & Commerce committee adopted an amendment changing wording from "a renewal" to "each renewal" and passed a bill that gives banks more time to address loans secured by stock after an acquisition, with discussion focused on fee responsibility and veterans' guardianship concerns.
Senator Ricky Hill, Senate District 11, told the Senate Insurance & Commerce committee the amendment "just changes two words on page 2, line 15," and moved to adopt it.
The change replaces the phrase "a renewal" with "each renewal" in language governing how loans secured by stock are treated after a bank acquisition. Committee members adopted the amendment and then passed the bill as amended.
The amendment and bill are intended to give a bank that acquires another institution extra latitude at the borrower’s next scheduled renewal or modification so the acquiring bank will not be automatically in violation of state rules at the moment of acquisition. Susanna Marshall, State Bank Commissioner, summarized the intent as allowing the acquiring bank time "so that they are not in violation automatically and that it does not burden the customer at that point in time."
Committee members pressed staff on how fees for renewals or modifications would be handled. Committee discussion made clear that fees charged at renewal are set by individual banks and are not dictated by the banking code, and that the bill does not itself set or require additional fees. Lawmakers also raised questions about a related situation involving banks that serve as guardians for veterans’ estates; one member noted a prior law that restricted banks from holding certain mortgages on veterans’ homes, and legislators discussed whether disputes in guardianship cases would instead be handled through court processes or other agency review.
The amendment was adopted on a voice vote, and the committee later approved the bill as amended. The committee did not enter a roll-call vote on the record in the transcript excerpt provided.
The bill will proceed from committee to the next steps in the Senate process with the amended language in place. Committee discussion emphasized that the change is narrowly focused on the timing and scope of renewals and modifications following an acquisition, not on creating new fee authorities for lenders.
