MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Business and Financial Institutions
By: Senator(s) Johnson
AN ACT TO AMEND SECTION 81-5-100, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF "ELECTRONIC TERMINAL" AND TO DEFINE THE TERM "INTERACTIVE TELLER MACHINE"; TO PROVIDE THAT THE ESTABLISHMENT OF ELECTRONIC TERMINALS AND THE SETTING OR CHANGING OF FEES FOR THE USE OF ELECTRONIC TERMINALS ARE MATTERS TO BE DETERMINED BY A STATE BANK OR THRIFT IN ITS DISCRETION, ACCORDING TO SOUND BANKING JUDGMENT AND SAFE AND SOUND BANKING PRINCIPLES; TO AMEND SECTION 81-5-75, MISSISSIPPI CODE OF 1972, TO REVISE PROCEDURES FOR A STATE BANK TO DECLARE AND PAY DIVIDENDS; TO AMEND SECTION 81-3-15, MISSISSIPPI CODE OF 1972, TO REQUIRE THE APPROVAL OF THE COMMISSIONER OF BANKING AND CONSUMER FINANCE RATHER THAN THE STATE COMPTROLLER FOR RENEWALS OR AMENDMENTS TO THE CHARTER OR ARTICLES OF INCORPORATION OF BANKING CORPORATIONS; TO MODIFY THE PROCEDURE FOR SUCH RENEWALS OR AMENDMENTS; TO CREATE NEW SECTION 81-5-26, MISSISSIPPI CODE OF 1972, TO AUTHORIZE INVESTMENTS BY STATE-CHARTERED BANKS AND TRUST COMPANIES IN CERTAIN COMMUNITY AND ECONOMIC DEVELOPMENT ENTITIES, COMMUNITY DEVELOPMENT PROJECTS AND OTHER PUBLIC WELFARE INVESTMENTS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 81-5-100, Mississippi Code of 1972, is amended as follows:
81-5-100. (1) For the purposes of this section, the following words shall have the meaning herein described unless the context shall otherwise require:
(a) "Electronic
terminal" means an * * * unmanned electronic device owned or operated by a federally insured bank
or thrift through which a consumer may initiate an electronic fund transfer
automated, virtually staffed or unstaffed banking facility owned or operated
by, or operated exclusively for, a federally insured bank or thrift, such as an
automated teller machine (ATM), interactive teller machine (ITM), cash
dispensing machine or other remote electronic terminal, that is open to the
general public and at which deposits are accepted, cash is dispersed, money is
lent or an electronic fund transfer is initiated.
An "electronic terminal" is not a "branch" under Title 81, Mississippi Code of 1972, and is not subject to state licensing requirements.
(b) "Electronic fund transfer" means any of the following:
(i) The withdrawal
of cash from or the deposit of cash or checks into an * * * electronic
terminal, such as an * * * automatic automated teller machine, but not including
night depositories;
(ii) An
application for or acceptance of a loan through use of an * * * electronic
terminal;
(iii) The transfer
of funds between accounts through use of an * * * electronic
terminal; or
(iv) The issuance
of a check by an * * * electronic terminal.
(c) "Electronic fund transfer" does not mean access to accounts, the application for or acceptance of a loan, the transfer of funds between accounts or other banking services accomplished through the use of a personal computer or telephone.
(d) "Interactive teller machine" or "ITM" means an automated, virtually staffed or unstaffed facility, owned or operated by, or operated exclusively for, a federally insured bank or thrift, and that is equipped with video-based interactive technology allowing customers to conduct transactions and financial services driven by a centrally-based teller, in a real-time video or audio interaction.
(2) The establishment of
electronic terminals are matters to be determined by a state bank or thrift in
its discretion, according to sound banking judgment and safe and sound banking
principles. No prior approval of the Commissioner of Banking and Consumer
Finance is required for a state bank or thrift * * * to establish or decommission
electronic terminals.
* * *
( * * *3) For the use of its electronic
terminals connected to sharing networks or systems, a bank may impose a fee if
imposition of the fee is disclosed at a time and in a manner that allows a user
to terminate or cancel the transaction without incurring the transaction fee. * * *
Because this power is an inherent element of a state banks' authority to conduct
the business of banking, the setting or changing of such fee amount is a matter
to be determined by a state bank or thrift in its discretion, according to
sound banking judgment and safe and sound banking principles.
An agreement to share electronic terminals shall not prohibit, limit or restrict the right of a bank to charge such fees for the use of its electronic terminals as allowed by state or federal law, or require a bank to limit or waive its rights or obligations under this section.
SECTION 2. Section 81-5-75, Mississippi Code of 1972, is amended as follows:
81-5-75. * * * (1) A state bank may, from
time to time, declare and pay dividends not inconsistent with the bank's
articles of incorporation or bylaws. However, prior written approval of the
Commissioner of Banking and Consumer Finance shall be required for a declaration
and payment of dividends if any of the following conditions exist:
(a) The bank is subject to a corrective plan or enforcement action;
(b) After making the dividend, the bank would be undercapitalized. For purposes of this paragraph (b), "undercapitalized" means that term as defined by the applicable federal regulatory agency based on bank type; or
(c) The Commissioner of Banking and Consumer Finance has determined that conditions exist at the bank that pose a risk to its safety and soundness.
(2) Directors declaring a dividend in violation of the provisions of this section shall be personally liable to the full amount of the dividend so declared and it shall be the duty of the commissioner, upon discovering the payment of any such dividend, to forthwith make demand upon the directors that the same be restored to the bank, and upon their failure so to do he shall cause suit to be brought against them in the chancery court of the county in which the bank is located, either in his name or in the name of the bank, to recover the same for the benefit of the bank.
SECTION 3. Section 81-3-15, Mississippi Code of 1972, is amended as follows:
81-3-15. The charter or articles of incorporation of banking corporations heretofore created or that may hereafter be created, may be renewed or amended in the following manner:
The stockholders in a
special or regular meeting, shall first, by a vote of a majority in amount of
all stock outstanding, adopt a resolution setting forth the proposed renewal or
amendment, subject to the approval of the * * * Commissioner of Banking
and Consumer Finance (commissioner). Three (3) copies of such
resolution duly certified by the president or vice-president of such bank shall
be forwarded to the * * * commissioner for his or her
approval, together with the fee required by statute. If the proposed amendment
is approved by the * * * commissioner, he or she shall attach
his or her certificate of approval to each of the copies and forward all
three (3) copies * * * to the Attorney General for his approval, and * * * the fee required by statute to
the Secretary of State. * * * If and when approved by the Attorney General, all three copies of said
amendment shall be forwarded to the Governor for his approval, and when
approved by him shall be forwarded by the Governor to the Secretary of State.
The Secretary of State shall retain one (1) copy and file and record the
same in his office. He shall forward one (1) copy thereof to the * * * commissioner, who
shall retain and file the same in his or her office. The remaining copy
shall be returned to the bank, and the bank shall immediately record the same
in the office of the chancery clerk of the county in which the bank is
domiciled. Said copy after being so recorded, shall be returned to the bank
and retained by it in its files. It shall not be necessary to publish such
renewal or amendment.
SECTION 4. The following shall be codified as Section 81-5-26, Mississippi Code of 1972:
81-5-26. Investments in community and economic development entities, community development projects and other public welfare investments as described in 12 USC § 24 (Eleventh) and 12 CFR Part 24, and any amendments thereto, shall be legal investments for state-chartered banks and trust companies, to the same extent that such are authorized investments for national banks under 12 USC § 24 (Eleventh) and 12 CFR Part 24, and any amendments thereto. Required notifications and approval requests shall be submitted to the Department of Banking, except that "eligible banks" as defined in Section 81-3-1 shall be exempt from any notification requirements and approval requests.
SECTION 5. This act shall take effect and be in force from and after July 1, 2026.