House Bill 1330

AN ACT TO AMEND SECTION 81-5-25, MISSISSIPPI CODE OF 1972, TO AUTHORIZE BANKS TO INVEST IN SMALL BUSINESS INVESTMENT COMPANIES INCORPORATED OUTSIDE MISSISSIPPI AND IN LIMITED LIABILITY COMPANIES AND LIMITED LIABILITY PARTNERSHIPS; TO BRING FORWARD SECTION 81-5-45, MISSISSIPPI CODE OF 1972, WHICH REQUIRES THE BOARD OF DIRECTORS OF A BANK TO MEET AT LEAST QUARTERLY, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 81-5-25, Mississippi Code of 1972, is amended as follows:

81-5-25. Shares of stock issued by small business investment companies * * *~~, incorporated in this state and~~ licensed under the provisions of the Small Business Investment Act of 1958, Public Law 699, 85th Congress, and any amendments thereto, shall be legal investments for state chartered banks and trust companies, to the same extent that shares of small business investment companies are eligible for purchase by national banks under the provisions of * * *~~said~~ the Small Business Investment Act of 1958, and any amendments thereto. Investments in limited liability companies and limited liability partnerships shall be legal investments for state chartered banks and trust companies.

SECTION 2. Section 81-5-45, Mississippi Code of 1972, is brought forward as follows:

81-5-45. Every director of every state bank must be the owner, in his or her own right, of unencumbered stock therein to the amount of at least Two Hundred Dollars ($200.00) par value. He shall take and subscribe an annual oath that he will faithfully and diligently perform the duties of his office and will not knowingly violate or permit to be violated any provision of law. Such oath shall be immediately transmitted to the Department of Banking and Consumer Finance and filed in its office. Every executive officer, as defined in Regulation O promulgated by the Board of Governors of the Federal Reserve System, of every bank doing business under the laws of this state shall subscribe to a similar annual oath and immediately transmit the same to the Department of Banking and Consumer Finance. The board of directors of every banking corporation shall meet at least once each quarter in each calendar year and shall at such times consider generally the affairs of the bank. An executive and auditing committee selected by a majority of the board of directors shall meet at least in those months when the board of directors does not meet and shall at such times consider generally the affairs of the bank. However, if the board of directors of any bank meets every month, the executive and auditing committee of that bank shall meet at least two (2) times annually. The Commissioner of Banking and Consumer Finance, in his discretion, may prescribe such forms as he may deem necessary, which, when properly executed, shall reflect the activities of the board of directors or the executive and auditing committee. It shall be the responsibility of the board of directors and the executive and auditing committee at such meetings to complete the forms prescribed and furnished by the Department of Banking and Consumer Finance, and to file same in its office when required by the commissioner.

The results of the examinations by the board of directors and the executive and auditing committee shall be entered in the minutes of the bank.

SECTION 3. This act shall take effect and be in force from and after July 1, 2025.