Audit, Dept. of

Banking Division

Chapter 2: Miscellaneous Bank Matters

Effective Date: 10/02/2001 to Current

Rule Type: Current Rules & Regulations

Reference Number: 021.0002.2.10022001

CHAPTER 2 – MISCELLANEOUS BANK MATTERS

Section 1. Authority.

This Chapter is promulgated pursuant to W.S. 13-1-603(c)(v) and 13-2-101(a)(xiii).

Section 2. Surplus Accounts.

The Surplus Account of a bank shall be considered as permanent capital and shall not be decreased except to sustain a loss in excess of its undivided profits or reserve for loan losses or conversion to paid-up capital stock, and then only when authorized by the Commissioner.

Section 3. Lease Financing.

A bank may become the owner and lessor of personal property acquired upon the specific request and for the use of a customer, and may incur such additional obligations as may be incident to becoming the owner and lessor of such property. The aggregate of such leases to any one person shall not exceed fifteen percent (15%) of the bank's available capital. The total amount of all leases made under this Section plus all indebtedness permitted under W.S. 13-3-402 shall not exceed twenty percent (20%) of the bank's available capital.

Section 4. Indemnification of Directors and Officers of Financial institutions; Authority to Indemnify; Reserved Powers of the Commissioner.

(a) A bank, an interim bank and a savings and loan association may include in its articles of incorporation a provision permitting the board of directors to indemnify directors and officers to the fullest extent permitted under 12 CFR 359.

(b) A trust company may include in its articles of incorporation a provision permitting the board of directors to indemnify Directors, officers and employees to the fullest extent permitted under Title 17, Chapter 16, Article 8, Subarticle E, of the Wyoming Statutes.

(c) A financial institution may elect to afford indemnification to an extent less than the maximum permitted under this Section and may elect not to indemnify any of its personnel at all.

(d) The Commissioner may order any financial institution to cease and desist from any actual or proposed indemnification permitted under this Chapter if he determines that the same poses a threat to the safety and soundness of the financial institution. The Commissioner may also order a financial institution to modify or eliminate any indemnification provisions included or proposed to be included in its articles of incorporation if he determines that such inclusion is inconsistent with applicable federal or Wyoming law.