title: RCW 32.08.140

text:
Every savings bank incorporated under this title shall have, subject to the restrictions and limitations contained in this title, the following powers:
(1) To receive deposits of money, to invest the same in the property and securities prescribed in this title, to declare dividends in the manner prescribed in this title, and to exercise by its board of trustees or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of a savings bank;
(2) To issue transferable certificates showing the amounts contributed by any incorporator or trustee to the guaranty fund of such bank, or for the purpose of paying its expenses. Every such certificate shall show that it does not constitute a liability of the savings bank, except as otherwise provided in this title;
(3) To purchase, hold and convey real property as prescribed in RCW 32.20.280;
(4) To pay depositors as hereinafter provided, and when requested, pay them by drafts upon deposits to the credit of the savings bank in any city in the United States, and to charge current rates of exchange for such drafts;
(5) To borrow money in pursuance of a resolution adopted by a vote of a majority of its board of trustees duly entered upon its minutes whereon shall be recorded by ayes and noes the vote of each trustee, for the purpose of repaying depositors, and to pledge or hypothecate securities as collateral for loans so obtained. Immediate written notice shall be given to the director of all amounts so borrowed, and of all assets so pledged or hypothecated;
(6) Subject to such regulations and restrictions as the director finds to be necessary and proper, to borrow money in pursuance of a resolution, policy, or other governing document adopted by its board of trustees, for purposes other than that of repaying depositors and to pledge or hypothecate its assets as collateral for any such loans, provided that no amount shall at any time be borrowed by a savings bank pursuant to this subsection (6), if such amount, together with the amount then remaining unpaid upon prior borrowings by such savings bank pursuant to this subsection (6), exceeds thirty percent of the assets of the savings bank.
The sale of securities or loans by a bank subject to an agreement to repurchase the securities or loans shall not be considered a borrowing. Borrowings from federal, state, or municipal governments or agencies or instrumentalities thereof shall not be subject to the limits of this subsection;
(7) To collect or protest promissory notes or bills of exchange owned by such bank or held by it as collateral, and remit the proceeds of the collections by drafts upon deposits to the credit of the savings bank in any city in the United States, and to charge the usual rates or fees for such collection and remittance for such protest;
(8) To sell gold or silver received in payment of interest or principal of obligations owned by the savings bank or from depositors in the ordinary course of business;
(9) To act as insurance agent for the purpose of writing fire insurance on property in which the bank has an insurable interest, the property to be located in the city in which the bank is situated and in the immediate contiguous suburbs, notwithstanding anything in any other statute to the contrary;
(10) To let vaults, safes, boxes or other receptacles for the safekeeping or storage of personal property, subject to laws and regulations applicable to, and with the powers possessed by, safe deposit companies;
(11) To elect or appoint in such manner as it may determine all necessary or proper officers, agents, boards, and committees, to fix their compensation, subject to the provisions of this title, and to define their powers and duties, and to remove them at will;
(12) To make and amend bylaws consistent with law for the management of its property and the conduct of its business;
(13) To wind up and liquidate its business in accordance with this title;
(14) To adopt and use a common seal and to alter the same at pleasure;
(15) To exercise the powers and authorities conferred by *RCW 30.04.215;
(16) To exercise the powers and authorities that may be carried on by a subsidiary of the savings bank that has been determined to be a prudent investment pursuant to RCW 32.20.380;
(17) To do all other acts authorized by this title;
(18) To exercise the powers and authorities that may be exercised by an insured state bank in compliance with 12 U.S.C. Sec. 1831a.
[ 2013 c 76 s 24; 1999 c 14 s 17; 1996 c 2 s 23; 1994 c 92 s 319; 1981 c 86 s 2; 1977 ex.s. c 104 s 1; 1963 c 176 s 2; 1957 c 80 s 2; 1955 c 13 s 32.08.140. Prior: 1927 c 184 s 1; 1925 ex.s. c 86 s 1; 1915 c 175 s 10; RRS s 3322.]
Notes:
*Reviser's note: RCW 30.04.215 was recodified as RCW 30A.04.215 pursuant to 2014 c 37 s 4, effective January 5, 2015.
Contingent expiration date—2013 c 76 ss 9 and 24: See note following RCW 30A.08.140.
Severability—1981 c 86: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [ 1981 c 86 s 17.]
PDF
RCW 32.08.140
Powers of bank. (Contingent effective date.)
Every savings bank incorporated under this title shall have, subject to the restrictions and limitations contained in this title, the following powers:
(1) To receive deposits of money, to invest the same in the property and securities prescribed in this title, to declare dividends in the manner prescribed in this title, and to exercise by its board of trustees or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of a savings bank;
(2) To issue transferable certificates showing the amounts contributed by any incorporator or trustee to the guaranty fund of such bank, or for the purpose of paying its expenses. Every such certificate shall show that it does not constitute a liability of the savings bank, except as otherwise provided in this title;
(3) To purchase, hold and convey real property as prescribed in RCW 32.20.280;
(4) To pay depositors as hereinafter provided, and when requested, pay them by drafts upon deposits to the credit of the savings bank in any city in the United States, and to charge current rates of exchange for such drafts;
(5) To borrow money in pursuance of a resolution adopted by a vote of a majority of its board of trustees duly entered upon its minutes whereon shall be recorded by ayes and noes the vote of each trustee, for the purpose of repaying depositors, and to pledge or hypothecate securities as collateral for loans so obtained. Immediate written notice shall be given to the director of all amounts so borrowed, and of all assets so pledged or hypothecated;
(6) Subject to such regulations and restrictions as the director finds to be necessary and proper, to borrow money in pursuance of a resolution, policy, or other governing document adopted by its board of trustees, for purposes other than that of repaying depositors and to pledge or hypothecate its assets as collateral for any such loans, provided that no amount shall at any time be borrowed by a savings bank pursuant to this subsection (6), if such amount, together with the amount then remaining unpaid upon prior borrowings by such savings bank pursuant to this subsection (6), exceeds thirty percent of the assets of the savings bank.
The sale of securities or loans by a bank subject to an agreement to repurchase the securities or loans shall not be considered a borrowing. Borrowings from federal, state, or municipal governments or agencies or instrumentalities thereof shall not be subject to the limits of this subsection;
(7) To collect or protest promissory notes or bills of exchange owned by such bank or held by it as collateral, and remit the proceeds of the collections by drafts upon deposits to the credit of the savings bank in any city in the United States, and to charge the usual rates or fees for such collection and remittance for such protest;
(8) To sell gold or silver received in payment of interest or principal of obligations owned by the savings bank or from depositors in the ordinary course of business;
(9) To act as insurance agent for the purpose of writing fire insurance on property in which the bank has an insurable interest, the property to be located in the city in which the bank is situated and in the immediate contiguous suburbs, notwithstanding anything in any other statute to the contrary;
(10) To let vaults, safes, boxes or other receptacles for the safekeeping or storage of personal property, subject to laws and regulations applicable to, and with the powers possessed by, safe deposit companies;
(11) To elect or appoint in such manner as it may determine all necessary or proper officers, agents, boards, and committees, to fix their compensation, subject to the provisions of this title, and to define their powers and duties, and to remove them at will;
(12) To make and amend bylaws consistent with law for the management of its property and the conduct of its business;
(13) To wind up and liquidate its business in accordance with this title;
(14) To adopt and use a common seal and to alter the same at pleasure;
(15) To exercise the powers and authorities conferred by *RCW 30.04.215;
(16) To exercise the powers and authorities that may be carried on by a subsidiary of the savings bank that has been determined to be a prudent investment pursuant to RCW 32.20.380;
(17) To do all other acts authorized by this title;
(18) To exercise the powers and authorities that may be exercised by an insured state bank in compliance with 12 U.S.C. Sec. 1831a;
(19) To conduct a promotional contest of chance as authorized in RCW 9.46.0356(l)(b), as long as the conditions of RCW 9.46.0356(5) and * 30.22.260 are complied with to the satisfaction of the director.
[ 2013 c 76 s 25; 2011 c 303 s 8; 1999 c 14 s 17; 1996 c 2 s 23; 1994 c 92 s 319; 1981 c 86 s 2; 1977 ex.s. c 104 s 1; 1963 c 176 s 2; 1957 c 80 s 2; 1955 c 13 s 32.08.140. Prior: 1927 c 184 s 1; 1925 ex.s. c 86 s 1; 1915 c 175 s 10; RRS s 3322.]
Notes:
*Reviser's note: RCW 30.04.215 and 30.22.260 were recodified as RCW 30A.04.215 and 30A.22.260, respectively, pursuant to 2014 c 37 s 4, effective January 5, 2015.
Contingent effective date—2013 c 76 ss 10 and 25; 2011 c 303 ss 7 and 8: See note following RCW 30A.08.140.
Findings—Intent—2011 c 303: See note following RCW 9.46.0356.
Severability—1981 c 86: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [ 1981 c 86 s 17.]

catchline: Powers of bank. (Contingent expiration date.)


doc_type: statute

jurisdiction: wa

title: RCW 32.08.142

text:
(1) Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, express or implied, that a savings bank has under the laws of this state, a savings bank shall have the powers and authorities that any federal mutual savings bank had on July 28, 1985, or as of a subsequent date not later than July 28, 2013. As used in this section, "powers and authorities" include without limitation powers and authorities in corporate governance matters.
(2) A savings bank may exercise the powers and authorities granted, after July 28, 2013, to federal mutual savings banks or their successors under federal law only if the director finds that the exercise of such powers and authorities:
(a) Serves the convenience and advantage of depositors and borrowers, or the general public; and
(b) Maintains the fairness of competition and parity between state-chartered savings banks and federal savings banks or their successors under federal law.
(3) Notwithstanding any other provision of law, a savings bank has the powers and authorities that an out-of-state state savings bank or savings association operating a branch in Washington has if the director finds that the exercise of such powers and authorities serves the convenience and advantage of depositors and borrowers, or the general public, and maintains the fairness of competition and parity between savings banks and out-of-state state savings banks and savings associations.
(4) For the purposes of this section, "powers and authorities" include without limitation powers and authorities in corporate governance matters.
(5) The restrictions, limitations, and requirements applicable to specific powers and authorities of federal mutual savings banks or out-of-state state savings banks or savings associations, as applicable, shall apply to savings banks exercising those powers and authorities permitted under this section but only insofar as the restrictions, limitations, and requirements relate to exercising the powers and authorities granted savings banks solely under this section.
[ 2013 c 76 s 26; 2003 c 24 s 7; 1999 c 14 s 18; 1996 c 2 s 24; 1994 c 256 s 98; 1985 c 56 s 3; 1981 c 86 s 10.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.
Severability—1981 c 86: See note following RCW 32.08.140.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Additional powers of savings bank—Powers of federal mutual savings bank—Definition—Restrictions.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 32.08.145

text: See chapter 22.28 RCW.

catchline: Safe deposit companies.


title: RCW 32.08.148

text:
In addition to all powers and authorities, express or implied, that a mutual savings bank has under the laws of this state, a mutual savings bank chartered under this title may exercise any powers and authorities at any branch outside Washington that are permissible for a savings bank operating in the jurisdiction where that branch is located, or for a bank, savings association, or similar financial institution operating in the jurisdiction if the laws of the jurisdiction do not provide for the operation of savings banks in the jurisdiction, except to the extent that the exercise of these powers and authorities is expressly prohibited or limited by the laws of this state or by any rule or order of the director applicable to the mutual savings bank. However, the director may waive any limitation in writing with respect to powers and authorities that the director determines do not threaten the safety or soundness of the mutual savings bank.
[ 1996 c 2 s 26.]

catchline: Operation of branch outside Washington—Powers and authorities.


title: RCW 32.08.150

text:
A mutual savings bank may issue savings certificates of deposit in such form and upon such terms as the bank may determine.
[ 1981 c 86 s 3; 1979 c 51 s 1; 1975 c 15 s 1; 1969 c 55 s 1; 1959 c 41 s 1; 1959 c 14 s 1; 1957 c 80 s 3; 1955 c 13 s 32.08.150. Prior: 1915 c 175 s 13; RRS s 3342.]
Notes:
Severability—1981 c 86: See note following RCW 32.08.140.

catchline: Certificates of deposit.


title: RCW 32.08.153

text:
(1) Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, express or implied, that a savings bank has under the laws of this state, a savings bank shall have the powers and authorities that any national bank had on July 28, 1985, or as of any subsequent date not later than July 28, 2013.
(2) Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, express or implied, that a savings bank has under the laws of this state, a savings bank has the powers and authorities conferred upon a national bank after July 28, 2013, only if the director finds that the exercise of such powers and authorities:
(a) Serves the convenience and advantage of depositors and borrowers, or the general public; and
(b) Maintains the fairness of competition and parity between savings banks and national banks.
(3) For the purposes of this section, "powers and authorities" include without limitation powers and authorities in corporate governance and operational matters.
(4) The restrictions, limitations, and requirements applicable to specific powers and authorities of national banks apply to savings banks exercising those powers and authorities permitted under this section but only insofar as the restrictions, limitations, and requirements relate to exercising the powers or authorities granted savings banks solely under this section. The director may require such a savings bank to provide notice prior to implementation of a plan to develop, improve, or continue holding an individual parcel of real estate, including capitalized and operating leases, acquired through any means in full or partial satisfaction of a debt previously contracted, under circumstances in which a national bank would be required to provide notice to the comptroller of the currency prior to implementation of such a plan. The director may adopt rules, orders, directives, standards, policies, memoranda, or other communications to specify guidance with regard to the exercise of the powers and authorities to expend such funds as are needed to enable such a savings bank to recover its total investment, to the fullest extent authorized for a national bank under the national bank act, 12 U.S.C. Sec. 29.
[ 2013 c 76 s 27; 2010 c 88 s 49; 2003 c 24 s 4.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.

catchline: Additional powers of savings bank—Powers and authorities of national banks on July 28, 1985, or a subsequent date not later than July 28, 2013—Definition—Restrictions.


title: RCW 32.08.157

text:
Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, express or implied, that a mutual savings bank has under this title, a mutual savings bank has the powers and authorities that a bank has under *Title 30 RCW. As used in this section, "powers and authorities" include without limitation powers and authorities in corporate governance matters.
The restrictions, limitations, and requirements applicable to specific powers or authorities of banks apply to mutual savings banks exercising those powers or authorities permitted under this section but only insofar as the restrictions, limitations, and requirements relate to exercising the powers or authorities granted mutual savings banks solely under this section.
[ 2003 c 24 s 6.]
Notes:
*Reviser's note: Title 30 RCW was recodified and/or repealed pursuant to 2014 c 37, effective January 5, 2015.

catchline: Additional powers—Powers and authorities of banks.


title: RCW 32.08.160

text:
When a savings bank is itself acting as an insurance agent, a trustee, officer, or employee of the bank shall not act as an insurance agent to write fire insurance on property in which the bank has an insurable interest, and no part of a room used by a savings bank in the transaction of its business shall be occupied or used by any person other than the bank in the writing of fire insurance.
[ 1955 c 13 s 32.08.160. Prior: 1925 ex.s. c 86 s 7; RRS s 3342a.]

catchline: Writing of fire insurance restricted.


title: RCW 32.08.210

text:
(1) A savings bank has the powers and authorities to engage in trust business that a state commercial bank authorized under RCW 30A.08.150 and subject also to the requirements and conditions for engaging in trust business set forth in this section.
(2) A mutual savings bank shall have the power to act as trustee under:
(a) A trust established by an inter vivos trust agreement or under the will of a deceased person.
(b) A trust established in connection with any collective bargaining agreement or labor negotiation wherein the beneficiaries of the trust include the employees concerned under the agreement or negotiation, or a trust established in connection with any pension, profit sharing, or retirement benefit plan of any corporation, partnership, association, or individual, including but not limited to retirement plans established pursuant to the provisions of the act of congress entitled "Self-Employed Individuals Tax Retirement Act of 1962", as now constituted or hereafter amended, or plans established pursuant to the provisions of the act of congress entitled "Employee Retirement Income Security Act of 1974", as now constituted or hereafter amended.
(3) A mutual savings bank may be appointed to and accept the appointment of personal representative of the last will and testament, or administrator with will annexed, of the estate of any deceased person and to be appointed and to act as guardian of the estate of minors, incompetent persons, and persons with a disability.
(4) The restrictions, limitations and requirements in Title 30A RCW shall apply to a mutual savings bank exercising the powers granted under this section insofar as the restrictions, limitations, and requirements relate to exercising the powers granted under this section. The incidental trust powers to act as agent in the management of trust property and the transaction of trust business in Title 30A RCW shall apply to a mutual savings bank exercising the powers granted under this section insofar as the incidental powers relate to exercising the powers granted under this section.
(5) Before engaging in trust business, a mutual savings bank shall apply to the director on such form as he or she shall determine and pay the same fee as required for a state bank to engage in trust business. In considering such application the director shall ascertain from the best source of information at his or her command and by such investigation as he or she may deem necessary whether the management and personnel of the mutual savings bank are such as to command confidence and warrant belief that the trust business will be adequately and efficiently conducted in accordance with law, whether the resources in the neighborhood of such place and in the surrounding country afford a reasonable promise of adequate support for the proposed trust business and whether the resources of the mutual savings bank are sufficient to support the conduct of such trust business, and that the mutual savings bank has and maintains, in addition to its guaranty fund, undivided profits against which the depositors have no prior claim in an amount not less than would be required of a state bank or trust company, which undivided profits shall be eligible for investment in the same manner as the guaranty fund of a mutual savings bank. Within sixty days after receipt of such application, the director shall either approve or refuse the same and forthwith return to the mutual savings bank a copy of the application upon which his or her decision has been endorsed. The director shall not be required to approve or refuse an application until thirty days after any appropriate approval has been obtained from a federal regulatory agency. The applicant shall have the right to appeal from an unfavorable determination in accordance with the procedures of the administrative procedure act, chapter 34.05 RCW, as now or hereafter amended. A mutual savings bank shall not use the word "trust" in its name, but may use the word "trust" in its business or advertising.
[ 2014 c 37 s 502; 1994 c 92 s 320; 1975 1st ex.s. c 265 s 1; 1969 c 55 s 12.]
Notes:
Legislative declarations—Effective date—2014 c 37: See RCW 30A.04.005 and 30A.04.902.

catchline: Power to act as trustee—Authorized trusts—Limitations—Application to act as trustee, fee—Approval or refusal of application—Right of appeal—Use of word "trust."


title: RCW 32.08.215

text:
No mutual savings bank or wholly owned subsidiary thereof shall act as trustee for common trust funds established for the benefit of more than one beneficiary under more than one trust agreement, unless the savings bank or subsidiary trust company shall first give written notice to the director, at least sixty days prior to the creation of any such fund.
[ 1994 c 92 s 321; 1985 c 56 s 4.]

catchline: Power to act as trustee for common trust funds under multiple trust agreements—Conditions.


title: RCW 32.08.220

text:
The legislature finds that [the] state of Washington needs investment of funds from out of state and from investors in the state of Washington to keep money for real estate and other forms of financing reasonably available for the needs of Washington citizens. Many innovations have taken place in the last several years to aid in the sale of loans or portions thereof to others including the sale of mortgage pass-through certificates, mortgage backed bonds, participation sales with varying rates, terms or priorities to various participants and the like. As the marketing of such investments continues, further innovations can be expected. It will benefit the state if mutual savings banks subject to the laws of this state have the broadest powers possible commensurate with their safety and soundness to take part in such activities. It is the purpose of RCW 32.08.225 and 32.08.230 to grant a broad power.
[ 1981 c 86 s 11.]
Notes:
Severability—1981 c 86: See note following RCW 32.08.140.

catchline: Findings—Purpose.


title: RCW 32.08.225

text:
Any mutual savings bank may through any device sell, purchase, exchange, issue evidence of a sale or exchange of, or in any manner deal in any form of sale or exchange of interest rate exchange agreements, loans, or any interest therein including but not being limited to mortgage pass-through issues, mortgage backed bond issues, and loan participations and may purchase a subordinated portion thereof, issue letters of credit to insure against losses on a portion thereof, agree to repurchase all or a portion thereof, guarantee all or a portion of the payments thereof, and without any implied limitation by the foregoing or otherwise, do any and all things necessary or convenient to take part in or effectuate any such sales or exchanges by a mutual savings bank itself or by a subsidiary thereof.
[ 1985 c 56 s 5; 1981 c 86 s 12.]
Notes:
Severability—1981 c 86: See note following RCW 32.08.140.

catchline: Sale, purchase, etc., of interest rate exchange agreements, loans, or interests therein.


title: RCW 32.08.230

text:
Any mutual savings bank engaging in any activity contemplated in RCW 32.08.225, whereby it holds or purchases subordinated securities, issues letters of credit to secure a portion of any sale or issue of loans sold or exchanged, or in any manner acts as a partial guarantor or insurer or repurchaser of any loans sold or exchanged, shall do so only in accordance with such reasonable restrictions and requirements as the director shall require and shall report and carry such transactions on its books and records in such manner as the director shall require. In establishing any requirements and restrictions hereunder, the director shall consider the effect the transaction and the reporting thereof will have on the safety and soundness of the mutual savings bank engaging in it.
[ 1994 c 92 s 322; 1981 c 86 s 13.]
Notes:
Severability—1981 c 86: See note following RCW 32.08.140.

catchline: Restrictions and requirements by director.


title: RCW 32.12.010

text:
Deposits made by individuals in a mutual savings bank under this chapter are governed by *chapter 30.22 RCW. In addition, other deposits which a savings bank may establish include but are not limited to the following:
(1) Deposits in the name of, or on behalf of, a partnership or other form of multiple ownership enterprise.
(2) Deposits in the name of a corporation, society, or unincorporated association.
(3) Deposits maintained by a person, society, or corporation as administrator, executor, guardian, or trustee under a will or trust agreement.
Every such bank may limit the aggregate amount which an individual or any corporation or society may have to his or her or its credit to such sum as such bank may deem expedient to receive; and may in its discretion refuse to receive a deposit, or may at any time return all or any part of any deposits or require the withdrawal of any dividends or interest. Any account in excess of one hundred thousand dollars may only be accepted or held in accordance with such regulations as the director may establish.
[ 1994 c 92 s 323; 1981 c 192 s 27; 1967 c 145 s 1; 1961 c 80 s 1; 1959 c 41 s 2; 1957 c 80 s 4; 1955 c 13 s 32.12.010. Prior: 1953 c 238 s 1; 1949 c 119 s 4; 1941 c 15 s 2; 1929 c 123 s 1; 1927 c 184 s 5; 1921 c 156 s 2; 1919 c 200 s 2; 1915 c 175 s 17; Rem. Supp. 1949 s 3346.]
Notes:
*Reviser's note: Chapter 30.22 RCW was recodified as chapter 30A.22 RCW pursuant to 2014 c 37 s 4, effective January 5, 2015.
Effective date—1981 c 192: See RCW 30A.22.900.

catchline: Deposits by individuals governed by chapter 30.22 RCW—Other deposits which a savings bank may establish—Limitations.


title: RCW 32.12.020

text:
The sums deposited with any savings bank, together with any dividends or interest credited thereto, shall be repaid to the depositors thereof respectively, or to their legal representatives, after demand in such manner, and at such times, and under such regulations, as the board of trustees shall prescribe, subject to the provisions of this section and *chapter 30.22 RCW. These regulations shall be available to depositors upon request, and shall be posted in a conspicuous place in the principal office and each branch in this state or, if the regulations are not so posted, a description of changes in the regulations after an account is opened shall be mailed to depositors pursuant to 12 U.S.C. Sec. 4305(c) or otherwise. All such rules and regulations, and all amendments thereto, from time to time in effect, shall be binding upon all depositors.
(1) Such bank may at any time by a resolution of its board of trustees require a notice of not more than six months before repaying deposits, in which event no deposit shall be due or payable until the required notice of intention to withdraw the same shall have been personally given by the depositor: PROVIDED, That such bank at its option may pay any deposit or deposits before the expiration of such notice. But no bank shall agree with its depositors or any of them in advance to waive the requirement of notice as herein provided: PROVIDED, That the bank may create a special class of depositors who shall be entitled to receive their deposits upon demand.
(2) The savings bank may pay dividend or interest, or repay a deposit or portion thereof, upon receipt of information in written, oral, visual, electronic, or other form satisfactory to such bank, that the recipient is entitled to receipt, and may pay any check drawn upon it by a depositor.
[ 1999 c 14 s 20; 1996 c 2 s 27; 1994 c 92 s 324; 1985 c 56 s 6; 1983 c 3 s 53; 1981 c 192 s 28; 1974 ex.s. c 117 s 40; 1969 c 55 s 2; 1967 c 145 s 2; 1963 c 176 s 3; 1961 c 80 s 2; 1959 c 41 s 3; 1955 c 13 s 32.12.020. Prior: 1945 c 228 s 6; 1921 c 156 s 3; 1915 c 175 s 18; Rem. Supp. 1945 s 3347.]
Notes:
*Reviser's note: Chapter 30.22 RCW was recodified as chapter 30A.22 RCW pursuant to 2014 c 37 s 4, effective January 5, 2015.
Effective date—1981 c 192: See RCW 30A.22.900.
Application, construction—Severability—Effective date—1974 ex.s. c 117: See RCW 11.02.080 and notes following.

catchline: Repayment of deposits and dividends.


title: RCW 32.12.025

text:
Subject to the provisions of RCW 32.12.020(1), a savings bank may, on instructions from a depositor, effect withdrawals from a savings account by the savings bank's drafts payable to parties and on terms as so instructed; to the extent of the subjection of accounts to such withdrawal instruction, such accounts may be specifically classified under RCW 32.12.090(2) and ineligible to receive interest or eligible only for limited interest.
[ 1967 c 145 s 3.]

catchline: Withdrawals by savings bank's drafts in accordance with depositor's instructions authorized.


title: RCW 32.12.050

text:
(1) No savings bank shall by any system of accounting, or any device of bookkeeping, directly or indirectly, enter any of its assets upon its books in the name of any other individual, partnership, unincorporated association, or corporation, or under any title or designation that is not in accordance with the actual facts.
(2) The bonds, notes, mortgages, or other interest bearing obligations purchased or acquired by a savings bank, shall not be entered on its books at more than the actual cost thereof, and shall not thereafter be carried upon its books for a longer period than until the next declaration of dividends, or in any event for more than one year, at a valuation exceeding their present cost as determined by amortization, that is, by deducting from the cost of any such security purchased for a sum in excess of the amount payable thereon at maturity and charging to "profit and loss" a sufficient sum to bring it to par at maturity, or adding to the cost of any such security purchased at less than the amount payable thereon at maturity and crediting to "profit and loss" a sufficient sum to bring it to par at maturity.
(3) No such bank shall enter, or at any time carry on its books, the real estate and the building or buildings thereon used by it as its place of business at a valuation exceeding their actual cost to the bank.
(4) Every such bank shall conform its methods of keeping its books and records to such orders in respect thereof as shall have been made and promulgated by the director. Any officer, agent, or employee of any savings bank who refuses or neglects to obey any such order shall be punished as hereinafter provided.
(5) Real estate acquired by a savings bank, other than that acquired for use as a place of business, may be entered on the books of the bank at the actual cost thereof but shall not be carried beyond the current dividend period at an amount in excess of the amount of the debt in protection of which such real estate was acquired, plus the cost of any improvements thereto.
An appraisal shall be made by a qualified person of every such parcel of real estate within six months from the date of conveyance. If the value at which such real estate is carried on the books is in excess of the value found on appraisal the book value shall, at the end of the dividend period during which such appraisal was made, be reduced to an amount not in excess of such appraised value.
(6) No such bank shall enter or carry on its books any asset which has been disallowed by the director or the trustees of such bank, unless the director upon application by such savings bank has fixed a valuation at which such asset may be carried as permitted in subsection (7) of this section.
(7) Notwithstanding the provisions of this section, no savings bank may maintain its books and records or enter and carry on its books any asset or liability at any valuation contrary to any accounting rules promulgated or adopted by the federal deposit insurance corporation or the director or contrary to generally accepted accounting principles.
[ 1994 c 256 s 100; 1994 c 92 s 325; 1985 c 56 s 7; 1983 c 44 s 1; 1955 c 13 s 32.12.050. Prior: 1941 c 15 s 1; 1915 c 175 s 16; Rem. Supp. 1941 s 3345.]
Notes:
Reviser's note: This section was amended by 1994 c 92 s 325 and by 1994 c 256 s 100, each without reference to the other. Both amendments are incorporated in the publication of this section pursuant to RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Accounting—Entry of assets, real estate, securities, etc.


title: RCW 32.12.070

text:
(1) Gross current operating earnings. Every savings bank shall close its books, for the purpose of computing its net earnings, at the end of any period for which a dividend is to be paid, and in no event less frequently than semiannually. To determine the amount of gross earnings of a savings bank during any dividend period the following items may be included:
(a) All earnings actually received during such period, less interest accrued and uncollected included in the last previous calculation of earnings;
(b) Interest accrued and uncollected upon debts owing to it secured by authorized collateral, upon which there has been no default for more than one year, and upon corporate bonds, or other interest bearing obligations owned by it upon which there is no default;
(c) The sums added to the cost of securities purchased for less than par as a result of amortization;
(d) Any profits actually received during such period from the sale of securities, real estate or other property owned by it;
(e) Such other items as the director, in his or her discretion and upon his or her written consent, may permit to be included.
(2) Net current earnings. To determine the amount of its net earnings for each dividend period the following items shall be deducted from gross earnings:
(a) All expenses paid or incurred, both ordinary and extraordinary, in the transaction of its business, the collection of its debts and the management of its affairs, less expenses incurred and interest accrued upon its debts deducted at the last previous calculation of net earnings for dividend purposes;
(b) Interest paid or accrued and unpaid upon debts owing by it;
(c) The amounts deducted through amortization from the cost of bonds or other interest bearing obligations purchased above par in order to bring them to par at maturity;
(d) Contributions to any corporation or any community chest fund or foundation organized and operated exclusively for religious, charitable, scientific, literary or educational purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual and no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation. The total contributions for any calendar year shall not exceed a sum equal to one-half of one percent of the net earnings of such savings bank for the preceding calendar year.
The balance thus obtained shall constitute the net earnings of the savings bank for such period.
(3) Earnings paid by a savings bank on deposits may be referred to as "dividends" or as "interest".
[ 1994 c 92 s 327; 1955 c 80 s 3; 1955 c 13 s 32.12.070. Prior: 1953 c 238 s 2; 1941 c 15 s 3; 1915 c 175 s 23; Rem. Supp. 1941 s 3352.]

catchline: Computation of earnings.


title: RCW 32.12.080

text:
No savings bank shall put forth any sign or notice or publish or circulate any advertisement or advertising literature upon which or in which it is stated that such savings bank has a surplus or guaranty fund other than as determined in the manner prescribed by law.
[ 1955 c 13 s 32.12.080. Prior: 1929 c 123 s 5; 1915 c 175 s 27; RRS s 3356.]

catchline: Misleading advertisement of surplus or guaranty fund.


title: RCW 32.12.090

text:
(1) Every savings bank shall regulate the rate of interest upon the amounts to the credit of depositors therewith, in such manner that depositors shall receive as nearly as may be all the earnings of the bank after transferring the amount required by RCW 32.08.120 and such further amounts as its trustees may deem it expedient and for the security of the depositors to transfer to the guaranty fund, which to the amount of ten percent of the amount due its depositors the trustees shall gradually accumulate and hold. Such trustees may also deduct from its net earnings, and carry as reserves for losses, or other contingencies, or as undivided profits, such additional sums as they may deem wise.
(2) Every savings bank may classify its depositors according to the local market, character, amount, regularity, or duration of their dealings with the savings bank, and may regulate the interest in such manner that each depositor shall receive the same ratable portion of interest as all others of his or her class.
(3) Unimpaired contributions to the initial guaranty fund and to the expense fund, made by the incorporators or trustees of a savings bank, shall be entitled to have dividends apportioned thereon, which may be credited and paid to such incorporators or trustees.
Whenever the guaranty fund of any savings bank is sufficiently large to permit the return of such contributions, the contributors may receive interest thereon not theretofore credited or paid at the same rate paid to depositors.
(4) A savings bank may pay interest on deposits at such rates as its board or a committee or officer designated by the board shall from time to time determine.
(5) The trustees of any savings banks, other than a stock savings bank, whose undivided profits and guaranty fund, determined in the manner prescribed in RCW 32.12.070, amount to more than twenty-five percent of the amount due its depositors, shall at least once in three years divide equitably the accumulation beyond such twenty-five percent as an extra dividend to depositors in excess of the regular dividend authorized.
(6) A notice posted conspicuously in a savings bank of a change in the rate of interest shall be equivalent to a personal notice.
[ 1999 c 14 s 21; 1994 c 256 s 101; 1983 c 44 s 2; 1977 ex.s. c 104 s 2; 1969 c 55 s 3; 1961 c 80 s 3; 1957 c 80 s 5; 1955 c 13 s 32.12.090. Prior: 1953 c 238 s 3; 1921 c 156 s 4; 1919 c 200 s 3; 1915 c 175 s 25; RRS s 3354.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Interest—Rate—Notice of changed rate.


title: RCW 32.12.120

text:
Notice to any mutual savings bank doing business in this state of an adverse claim to a deposit standing on its books to the credit of any person shall not be effectual to cause said bank to recognize said adverse claimant unless said adverse claimant shall also either procure a restraining order, injunction, or other appropriate process against said bank from a court of competent jurisdiction in a cause therein instituted by him or her wherein the person to whose credit the deposit stands is made a party and served with summons or shall execute to said bank, in form and with sureties acceptable to it, a bond, in an amount which is double either the amount of said deposit or said adverse claim, whichever is the lesser, indemnifying said bank from any and all liability, loss, damage, costs, and expenses, for and on account of the payment of such adverse claim or the dishonor of the check or other order of the person to whose credit the deposit stands on the books of said bank: PROVIDED, That this law shall not apply in any instance where the person to whose credit the deposit stands is a fiduciary for such adverse claimant, and the facts constituting such relationship as also the facts showing reasonable cause of belief on the part of said claimant that the said fiduciary is about to misappropriate said deposit, are made to appear by the affidavit of such claimant.
This section shall not apply to accounts subject to *chapter 30.22 RCW.
[ 2011 c 336 s 751; 1981 c 192 s 31; 1963 c 176 s 13. Cf. 1961 c 280 s 4; RCW 30.20.090.]
Notes:
*Reviser's note: Chapter 30.22 RCW was recodified as chapter 30A.22 RCW pursuant to 2014 c 37 s 4, effective January 5, 2015.
Effective date—1981 c 192: See RCW 30A.22.900.

catchline: Adverse claim to a deposit to be accompanied by court order or bond—Exceptions.


title: RCW 32.16.010

text:
(1) There shall be a board of trustees who shall have the entire management and control of the affairs of the savings bank. The persons named in the certificate of authorization shall be the first trustees. The board shall consist of not less than nine nor more than thirty members.
(2) A person shall not be a trustee of a savings bank, if he or she:
(a) Is not a resident of a state of the United States;
(b) Has been adjudicated a bankrupt or has taken the benefit of any insolvency law, or has made a general assignment for the benefit of creditors;
(c) Has suffered a judgment recovered against him or her for a sum of money to remain unsatisfied of record or unsecured on appeal for a period of more than three months;
(d) Is a trustee, officer, clerk, or other employee of any other savings bank.
(3) Nor shall a person be a trustee of a savings bank solely by reason of his or her holding public office.
[ 2011 c 336 s 752; 1985 c 56 s 8; 1955 c 13 s 32.16.010. Prior: 1915 c 175 s 28; RRS s 3357.]


title: RCW 32.16.012

text:
The bylaws of a savings bank may prescribe a maximum age beyond which no person shall be eligible for election to the board of trustees and may prescribe a mandatory retirement age of seventy-five years or less for trustees subject to the following limitations:
(1) No person shall be eligible for initial election as a trustee after December 31, 1969, who is seventy years of age or more; and
(2) No person shall continue to serve as a trustee after December 31, 1973, who is seventy-five years of age or more and the office of any such trustee shall become vacant on the last day of the month in which the trustee reaches his or her seventy-fifth birthday or December 31, 1973, whichever is the latest.
If a savings bank does not adopt a bylaw prescribing a mandatory retirement age for trustees prior to January 1, 1970, or does not maintain thereafter a bylaw prescribing a mandatory retirement age, the office of a trustee of such savings bank shall become vacant on the last day of the month in which such trustee reaches his or her seventieth birthday or on December 31, 1969, whichever is the latest.
[ 2011 c 336 s 753; 1969 c 55 s 14.]

catchline: Age requirements.


title: RCW 32.16.020

text:
(1) Each trustee, whether named in the certificate of authorization or elected to fill a vacancy, shall, when such certificate of authorization has been issued, or when notified of such election, take an oath that he or she will, so far as it devolves on him or her, diligently and honestly administer the affairs of the savings bank, and will not knowingly violate, or willingly permit to be violated, any of the provisions of law applicable to such savings bank. Such oath shall be subscribed by the trustee making it and certified by the officer before whom it is taken, and shall be immediately transmitted to the director and filed and preserved in his or her office.
(2) Prior to the first day of March in each year, every trustee of every savings bank shall subscribe a declaration to the effect that he or she is, at the date thereof, a trustee of the savings bank, and that he or she has not resigned, become ineligible, or in any other manner vacated his or her office as such trustee. Such declaration shall be acknowledged in like manner as a deed to be entitled to record and shall be transmitted to the director and filed in his or her office prior to the tenth day of March in each year.
(3) This section does not apply to the directors of stock savings banks.
[ 1994 c 256 s 102; 1994 c 92 s 328; 1955 c 13 s 32.16.020. Prior: 1915 c 175 s 29; RRS s 3358.]
Notes:
Reviser's note: This section was amended by 1994 c 92 s 328 and by 1994 c 256 s 102, each without reference to the other. Both amendments are incorporated in the publication of this section pursuant to RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Oath of trustees—Declaration of incumbency—Not applicable to directors of stock savings banks.


title: RCW 32.16.030

text:
A vacancy in the board of trustees shall be filled by the board as soon as practicable, at a regular meeting thereof.
[ 1955 c 13 s 32.16.030. Prior: 1915 c 175 s 36; RRS s 3365.]

catchline: Vacancies, when to be filled.


title: RCW 32.16.040

text:
A quorum at any regular or special or adjourned meeting of the board of trustees shall consist of not less than five of whom the chief executive officer shall be one, except when he or she is prevented from attending by sickness or other unavoidable detention, when he or she may be represented in forming a quorum by such other officer as the board may designate; but less than a quorum shall have power to adjourn from time to time until the next regular meeting. However, a savings bank may adopt procedures which provide that, in the event of a national emergency, any trustee may act on behalf of the board to continue the operations of the savings bank. For purposes of this subsection, a national emergency is an emergency declared by the president of the United States or the person performing the president's functions, or a war, or natural disaster.
Regular meetings of the board of trustees shall be held as established from time to time by the board, not less than six times during each year.
[ 1999 c 14 s 22; 1985 c 56 s 9; 1969 c 55 s 4; 1955 c 13 s 32.16.040. Prior: 1915 c 175 s 31; RRS s 3360.]

catchline: Quorum—Meetings.


title: RCW 32.16.050

text:
(1) A trustee of a savings bank shall not directly or indirectly receive any pay or emolument for services as trustee, except as provided in this section.
(2) A trustee may receive, by affirmative vote of a majority of all the trustees, reasonable compensation for (a) attendance at meetings of the board of trustees; (b) service as an officer of the savings bank, provided his or her duties as officer require and receive his or her regular and faithful attendance at the savings bank; (c) service in appraising real property for the savings bank; and (d) service as a member of a committee of the board of trustees: PROVIDED, That a trustee receiving compensation for service as an officer pursuant to (b) shall not receive any additional compensation for service under (a), (c), or (d).
(3) An attorney for a savings bank, although he or she is a trustee thereof, may receive a reasonable compensation for his or her professional services, including examinations and certificates of title to real property on which mortgage loans are made by the savings bank; or if the bank requires the borrowers to pay all expenses of searches, examinations, and certificates of title, including the drawing, perfecting, and recording of papers, such attorney may collect of the borrower and retain for his or her own use the usual fees for such services, excepting any commissions as broker or on account of placing or accepting such mortgage loans.
(4) All incentive compensation, bonus, or supplemental compensation plans for officers and employees of a savings bank shall be approved by a majority of nonofficer trustees of the savings bank or approved by a committee of not less than three trustees, none of whom shall be officers of the savings bank. No such plan shall permit any officer or employee of a savings bank who has or exercises final authority with regard to any loan or investment to receive any commission on such loan or investment.
(5) If an officer or attorney of a savings bank receives, on any loan made by the bank, any commission which he or she is not authorized by this section to retain for his or her own use, he or she shall immediately pay the same over to the savings bank.
[ 1999 c 14 s 23; 1985 c 56 s 10; 1957 c 80 s 6; 1955 c 13 s 32.16.050. Prior: 1915 c 175 s 32; RRS s 3361.]

catchline: Compensation of trustees.


title: RCW 32.16.060

text:
The board of trustees of every savings bank may, by resolution incorporated in its bylaws, increase or reduce the number of trustees named in the original charter or certificate of authorization.
(1) The number may be increased to a number designated in the resolution not exceeding thirty: PROVIDED, That reasons therefor are shown to the satisfaction of the director and his or her written consent thereto is first obtained.
(2) The number may be reduced to a number designated in the resolution but not less than nine. The reduction shall be effected by omissions to fill vacancies occurring in the board.
[ 1994 c 92 s 329; 1955 c 13 s 32.16.060. Prior: 1915 c 175 s 33; RRS s 3362.]

catchline: Change in number of trustees.


title: RCW 32.16.070

text:
(1) A trustee of a savings bank shall not, except to the extent permitted for a director of a federal mutual savings bank:
(a) Have any interest, direct or indirect, in the gains or profits of the savings bank, except to receive dividends (i) upon the amounts contributed by him or her to the guaranty fund and the expense fund of the savings bank as provided in RCW 32.08.090 and 32.08.100, and (ii) upon any deposit he or she may have in the bank, the same as any other depositor and under the same regulations and conditions.
(b) Become a member of the board of directors of a bank, trust company, or national banking association of which board enough other trustees of the savings bank are members to constitute with him a majority of the board of trustees.
(2) Neither a trustee nor an officer of a savings bank shall, except to the extent permitted for a director or officer of a federal mutual savings bank:
(a) For himself or herself or as agent or partner of another, directly or indirectly use any of the funds or deposits held by the savings bank, except to make such current and necessary payments as are authorized by the board of trustees.
(b) Receive directly or indirectly and retain for his or her own use any commission on or benefit from any loan made by the savings bank, or any pay or emolument for services rendered to any borrower from the savings bank in connection with such loan, except as authorized by RCW 32.16.050.
(c) Become an indorser, surety, or guarantor, or in any manner an obligor, for any loan made by the savings bank.
(d) For himself or herself or as agent or partner of another, directly or indirectly borrow any of the funds or deposits held by the savings bank, or become the owner of real property upon which the savings bank holds a mortgage. A loan to or a purchase by a corporation in which he or she is a stockholder to the amount of fifteen percent of the total outstanding stock, or in which he or she and other trustees of the savings bank hold stock to the amount of twenty-five percent of the total outstanding stock, shall be deemed a loan to or a purchase by such trustee within the meaning of this section, except when the loan to or purchase by such corporation occurred without his or her knowledge or against his or her protest. A deposit in a bank shall not be deemed a loan within the meaning of this section.
[ 1994 c 256 s 103; 1955 c 13 s 32.16.070. Prior: 1925 ex.s. c 86 s 12; 1915 c 175 s 34; RRS s 3363.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Restrictions on trustees.


title: RCW 32.16.080

text:
(1) Whenever, in the judgment of three-fourths of the trustees, the conduct and habits of a trustee of any savings bank are of such character as to be injurious to such bank, or he or she has been guilty of acts that are detrimental or hostile to the interests of the bank, he or she may be removed from office, at any regular meeting of the trustees, by the affirmative vote of three-fourths of the total number thereof: PROVIDED, That a written copy of the charges made against him or her has been served upon him or her personally at least two weeks before such meeting, that the vote of such trustees by ayes and noes is entered in the record of the minutes of such meeting, and that such removal receives the written approval of the director which shall be attached to the minutes of such meeting and form a part of the record.
(2) The office of a trustee of a savings bank shall immediately become vacant whenever he or she:
(a) Fails to comply with any of the provisions of RCW 32.16.020 relating to his or her official oath and declaration;
(b) Becomes disqualified for any of the reasons specified in RCW 32.16.010(2);
(c) Has failed to attend the regular meetings of the board of trustees, or to perform any of his or her duties as trustee, for a period of six successive months, unless excused by the board for such failure;
(d) Violates any of the provisions of RCW 32.16.070 imposing restrictions upon trustees and officers, except subsection (2)(c) thereof.
(3) A trustee who has forfeited or vacated his or her office shall not be eligible to reelection, except when the forfeiture or vacancy occurred solely by reason of his or her:
(a) Failure to comply with the provisions of RCW 32.16.020, relating to his or her official oath and declaration; or
(b) Neglect of his or her official duties as prescribed in subsection (2)(c) of this section; or
(c) Disqualification through becoming a nonresident, or becoming a trustee, officer, clerk or other employee of another savings bank, or becoming a director of a bank, trust company, or national banking association under the circumstances specified in RCW 32.16.070(1)(b) and such disqualification has been removed.
[ 1994 c 92 s 330; 1955 c 13 s 32.16.080. Prior: 1915 c 175 s 35; RRS s 3364.]

catchline: Removal of trustees—Vacancies—Eligibility to reelection.


title: RCW 32.16.090

text:
The director may issue and serve a board director, officer, or employee of a savings bank with written notice of intent to remove the person from office or employment or to prohibit the person from participating in the conduct of the affairs of the savings bank or any other depository institution, trust company, bank holding company, thrift holding company, or financial holding company doing business in this state whenever, in the opinion of the director:
(1)(a) Reasonable cause exists to believe the person has committed a material violation of law, an unsafe and unsound practice, or a violation or practice involving a breach of fiduciary duty, personal dishonesty, recklessness, or incompetence; and
(b) The bank, trust company, or holding company has suffered or is likely to suffer substantial financial loss or other damage; or
(c) The interests of depositors or trust beneficiaries could be seriously prejudiced by reason of the violation or practice.
(2) The director may issue and serve a board director, officer, or employee of a holding company of a savings bank with written notice of intent to remove the person from office or employment or to prohibit the person from participating in the conduct of the affairs of the holding company, its subsidiary bank, or any other depository institution, trust company, bank holding company, thrift holding company, or financial holding company doing business in this state whenever, in the opinion of the director:
(a) Reasonable cause exists to believe the person has committed a material violation of law, an unsafe and unsound practice, or a violation or practice involving a breach of fiduciary duty, personal dishonesty, recklessness, or incompetence; and
(b) The subsidiary savings bank has suffered or is likely to suffer substantial financial loss or other damage; or
(c) The interests of depositors or trust beneficiaries of the subsidiary savings bank could be seriously prejudiced by reason of the violation or practice.
[ 2010 c 88 s 51; 1994 c 92 s 331; 1979 c 46 s 7; 1955 c 13 s 32.16.090. Prior: 1931 c 132 s 2; RRS s 3364a.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1979 c 46: See note following RCW 32.04.250.

catchline: Removal of a board director, officer, or employee—Prohibition from participation in conduct of affairs—Grounds—Notice.


title: RCW 32.16.0901

text:
The director may serve written notice of charges under RCW 32.16.090 to suspend a person from further participation in any manner in the conduct of the affairs of a savings bank or holding company, if the director determines that such an action is necessary for the protection of the savings bank or holding company, or the interests of the depositors. Any suspension notice issued by the director is effective upon service, and unless the superior court of the county of its principal place of business issues a stay of the order, remains in effect and enforceable until:
(1) The director dismisses the charges contained in the notice served to the person; or
(2) The effective date of a final order for removal of the person under RCW 32.16.093.
[ 2010 c 88 s 52.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.

catchline: Written notice of charges under RCW 32.16.090.


title: RCW 32.16.093

text:
(1) A notice of an intention to remove a board trustee or director, officer, or employee from office or to prohibit his or her participation in the conduct of the affairs of a savings bank or holding company shall contain a statement of the facts which constitute grounds therefor and shall fix a time and place at which a hearing will be held. The hearing shall be set not earlier than ten days or later than thirty days after the date of service of the notice unless an earlier or later date is set by the director at the request of the board trustee or director, officer, or employee for good cause shown or at the request of the attorney general of the state.
(2) Unless the board trustee or director, officer, or employee appears at the hearing personally or by a duly authorized representative, the person shall be deemed to have consented to the issuance of an order of removal or prohibition or both. In the event of such consent or if upon the record made at the hearing the director finds that any of the grounds specified in the notice have been established, the director may issue such orders of removal from office or prohibition from participation in the conduct of the affairs of the savings bank or holding company as the director may consider appropriate.
(3) Any order under this section shall become effective at the expiration of ten days after service upon the savings bank or holding company and the trustee, director, officer, or employee concerned except that an order issued upon consent shall become effective at the time specified in the order.
An order shall remain effective except to the extent it is stayed, modified, terminated, or set aside by the director or a reviewing court.
[ 2010 c 88 s 53; 1994 c 92 s 332; 1979 c 46 s 8.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1979 c 46: See note following RCW 32.04.250.
Administrative hearings, procedure, orders, and judicial review: RCW 32.04.290.
Jurisdiction of courts as to orders to remove trustee, officer, or employee: RCW 32.04.300.

catchline: Notice of intention to remove or prohibit participation in conduct of affairs—Hearing—Order of removal and/or prohibition.


title: RCW 32.16.095

text:
If at any time because of the removal of one or more trustees or directors under this chapter there shall be on the board of trustees or board of directors of a savings bank less than a quorum of trustees or directors, all powers and functions vested in, or exercisable by the board shall vest in, and be exercisable by the trustee or trustees or director or directors remaining, until such time as there is a quorum on the board of trustees or board of directors. If all of the trustees or directors of a savings bank are removed under this chapter, the director shall appoint persons to serve temporarily as trustees or directors until such time as their respective successors take office.
[ 2010 c 88 s 54; 1994 c 92 s 333; 1979 c 46 s 9.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1979 c 46: See note following RCW 32.04.250.

catchline: Removal of one or more trustees or directors—Lack of quorum—Temporary trustees.


title: RCW 32.16.097

text:
Any present or former trustee, board director, officer, or employee of a savings bank or holding company or any other person against whom there is outstanding an effective final order issued under RCW 32.16.093, which order has been served upon the person, and who, in violation of the order, (1) participates in any manner in the conduct of the affairs of the savings bank or holding company involved; or (2) directly or indirectly solicits or procures, transfers or attempts to transfer, or votes or attempts to vote any proxies, consents, or authorizations with respect to any voting rights in the savings bank or holding company; or (3) without the prior approval of the director, votes for a board trustee or director or serves or acts as a trustee, director, officer, employee, or agent of any savings bank or holding company, shall be guilty of a gross misdemeanor, and, upon conviction, shall be punishable as prescribed under chapter 9A.20 RCW.
[ 2010 c 88 s 55; 1994 c 92 s 334; 1979 c 46 s 10.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1979 c 46: See note following RCW 32.04.250.

catchline: Penalty for violation of order issued under RCW 32.16.093.


title: RCW 32.16.100

text:
The trustees of every savings bank, by a committee of not less than three of their number, shall at least annually fully examine the records and affairs of such savings bank for the purpose of determining its financial condition. The trustees may employ such assistants as they deem necessary in making the examination. A report of each such examination shall be presented to the board of trustees at a regular meeting within thirty days after the completion of the same, and shall be filed in the records of the savings bank.
[ 1994 c 256 s 104; 1955 c 13 s 32.16.100. Prior: 1941 c 15 s 5; 1915 c 175 s 38; Rem. Supp. 1941 s 3367.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Examination by trustees' committee—Report.


title: RCW 32.16.110

text:
The board of trustees shall elect from their number, or otherwise, a president and two vice presidents and such other officers as they may deem fit.
[ 1955 c 13 s 32.16.110. Prior: 1915 c 175 s 30; RRS s 3359.]

catchline: Officers.


title: RCW 32.16.120

text:
The trustees of every savings bank shall have power to require from the officers, clerks, and agents thereof such security for their fidelity and the faithful performance of their duties as the trustees deem necessary. Such security may be accepted from any company authorized to furnish fidelity bonds and doing business under the laws of this state, and the premiums therefor may be paid as a necessary expense of the savings bank.
[ 1955 c 13 s 32.16.120. Prior: 1915 c 175 s 37; RRS s 3366.]

catchline: Fidelity bonds.


title: RCW 32.16.130

text:
In the event a savings and loan association is converted to a mutual savings bank, any person, who at the time of such conversion was a director of the savings and loan association, may serve as a trustee of the mutual savings bank until he or she reaches the age of seventy-five years or until one year following the date of conversion of such savings and loan association, whichever is later. The bylaws of any mutual savings bank may modify this provision by requiring earlier retirement of any trustee affected hereby.
[ 2011 c 336 s 754; 1971 ex.s. c 222 s 2.]
Notes:
Severability—1971 ex.s. c 222: See note following RCW 32.04.085.

catchline: Conversion of savings and loan association to mutual savings bank—Director may serve as trustee.


title: RCW 32.16.140

text:
If the trustees or directors of any savings bank or holding company shall knowingly violate, or knowingly permit any of the officers, agents, or employees of the savings bank or holding company to violate any of the provisions of this title or any lawful regulation or directive of the director, and if the trustees or directors are aware that such facts and circumstances constitute such violations, then each trustee or director who participated in or assented to the violation is personally and individually liable for all damages which the state or any insurer of the deposits of the savings bank sustains due to the violation.
[ 2010 c 88 s 56; 1994 c 92 s 335; 1989 c 180 s 9.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.

catchline: Violations—Trustees' or directors' liability.


title: RCW 32.20.010

text:
The words "mutual savings bank" and "savings bank," whenever used in this chapter, shall mean a mutual savings bank organized and existing under the laws of the state of Washington.
The words "its funds," whenever used in this chapter, shall mean and include moneys deposited with or borrowed by a mutual savings bank, sums credited to the guaranty fund of a mutual savings bank, and the income derived from such deposits or fund, or both, and the principal balance of any outstanding capital notes, and capital debentures.
[ 1999 c 14 s 24; 1977 ex.s. c 241 s 2; 1955 c 13 s 32.20.010. Prior: 1929 c 74 s 1; RRS s 3381-1.]

catchline: Definitions.


title: RCW 32.20.020

text:
A mutual savings bank shall have the power to invest its funds in the manner set forth in chapter 32.08 RCW and in this chapter and not otherwise.
[ 1999 c 14 s 25; 1955 c 13 s 32.20.020. Prior: 1929 c 74 s 2; RRS s 3381-2.]

catchline: Power to invest funds—Restrictions.


title: RCW 32.20.030

text:
A mutual savings bank may invest its funds in the bonds or obligations of the United States or the Dominion of Canada or those for which the faith of the United States or the Dominion of Canada is pledged to provide for the payment of the interest and principal, including bonds of the District of Columbia: PROVIDED, That in the case of bonds of the Dominion or those for which its faith is pledged the interest and principal is payable in the United States or with exchange to a city in the United States and in lawful money of the United States or its equivalent.
[ 1955 c 13 s 32.20.030. Prior: 1937 c 95 s 1; 1929 c 74 s 3; 1925 ex.s. c 86 s 2; 1921 c 156 ss 11, 11a; RRS s 3381-3.]

catchline: Bonds or obligations of United States and Canada.


title: RCW 32.20.035

text:
Except as may be limited by the director by rule, a mutual savings bank may invest its funds in obligations of the United States, as authorized by RCW 32.20.030, either directly or in the form of securities of, or other interests in, an open-end or closed-end management type investment company or investment trust registered under the federal investment company act of 1940, as now or hereafter amended, if both of the following conditions are met:
(1) The portfolio of the investment company or investment trust is limited to obligations of the United States and to repurchase agreements fully collateralized by such obligations; and
(2) The investment company or investment trust takes delivery of the collateral for any repurchase agreement either directly or through an authorized custodian.
[ 1994 c 92 s 336; 1989 c 97 s 2.]

catchline: Investment trusts or companies.


title: RCW 32.20.040

text:
A mutual savings bank may invest its funds:
(1) In such loans and advances of credit and purchases of obligations representing loans and advances of credit as are eligible for insurance by the Federal Housing Administrator, and may obtain such insurance.
(2) In such loans secured by mortgage on real property as the Federal Housing Administrator insures or makes a commitment to insure, and may obtain such insurance.
(3) In such other loans or contracts or advances of credit as are insured or guaranteed or which are covered by a repurchase agreement in whole or in part by the United States or through any corporation, administrator, agency or instrumentality which is or hereafter may be created by the United States, and may obtain such insurance or guarantee.
(4) In capital stock, notes, bonds, debentures, or other such obligations of any national mortgage association.
(5) In such loans as are secured by contracts of the United States or any agency or department thereof assigned under the "Assignment of Claims Act of 1940," approved October 9, 1940, and acts amendatory thereof or supplementary thereto, and may participate with others in such loans.
(6) In notes or bonds secured by mortgages issued under sections 500 to 505, inclusive, of Title III of the Servicemen's Readjustment Act of 1944 (Public Law 346, 78th congress), and any amendments thereto, and the regulations, orders or rulings promulgated thereunder.
No law of this state prescribing the nature, amount, or form of security or requiring security or prescribing or limiting interest rates or prescribing or limiting the term, shall be deemed to apply to loans, contracts, advances of credit or purchases made pursuant to the foregoing subdivisions (1), (2), (3), (4), (5), and (6).
[ 1963 c 176 s 5; 1955 c 13 s 32.20.040. Prior: 1945 c 228 s 1; 1941 c 15 s 6; 1939 c 33 s 1; 1935 c 10 s 1; 1929 c 74 s 3a; Rem. Supp. 1945 s 3381-3a.]

catchline: Federally insured or secured loans, securities, etc.


title: RCW 32.20.045

text:
A mutual savings bank may invest its funds in capital stock, notes, bonds, debentures, or other such obligations of any corporation which is or hereafter may be created by the United States as a governmental agency or instrumentality: PROVIDED, That the total amount a mutual savings bank may invest pursuant to this section shall not exceed fifteen percent of the funds of such savings bank: PROVIDED FURTHER, That the amounts heretofore or hereafter invested by a mutual savings bank pursuant to any law of this state other than this section, even if such investment might also be authorized under this section, shall not be limited by the provisions of this section and amounts so invested pursuant to any such other law of this state shall not be included in computing the maximum amount which may be invested pursuant to this section.
[ 1967 c 145 s 4; 1957 c 80 s 10.]

catchline: Obligations of corporations created as federal agency or instrumentality.


title: RCW 32.20.047

text:
A savings bank may purchase and hold for its own investment account stock in small business investment companies licensed and regulated by the United States, as authorized by the Small Business Act, Public Law 85-536, 72 Statutes at Large 384, in an amount not to exceed one percent of the guaranty fund of such mutual savings bank.
[ 1959 c 185 s 2.]

catchline: Stock of small business investment companies regulated by United States.


title: RCW 32.20.050

text:
A mutual savings bank may invest its funds in the bonds or interest bearing obligations of this state, or any agency thereof, issued pursuant to the authority of any law of this state, whether such bonds or interest bearing obligations are general or limited obligations of the state or such agency.
[ 1955 c 13 s 32.20.050. Prior: 1953 c 238 s 4; 1929 c 74 s 9; 1921 c 156 s 11b; RRS s 3381-4.]

catchline: Bonds of state of Washington and its agencies.


title: RCW 32.20.060

text:
A mutual savings bank may invest its funds in the bonds or obligations of any other state of the United States upon which there is no default.
[ 1955 c 13 s 32.20.060. Prior: 1937 c 95 s 2; 1929 c 74 s 5; 1921 c 156 s 11c; RRS s 3381-5.]

catchline: Bonds of other states.


title: RCW 32.20.070

text:
A mutual savings bank may invest its funds in the valid warrants or bonds of any county, city, town, school district, port district, water-sewer district, or other municipal corporation in the state of Washington issued pursuant to law and for the payment of which the faith and credit of such county, municipality, or district is pledged and taxes are leviable upon all taxable property within its limits.
A mutual savings bank may invest its funds in the water revenue, sewer revenue, or electric revenue bonds of any city or public utility district of this state for the payment of which the entire revenue of the city's or district's water system, sewer system, or electric system, less maintenance and operating costs, is irrevocably pledged.
[ 1999 c 153 s 26; 1955 c 13 s 32.20.070. Prior: 1941 c 15 s 7; 1937 c 95 s 3; 1929 c 74 s 6; 1925 ex.s. c 86 s 3; 1921 c 156 s 11d; Rem. Supp. 1941 s 3381-6.]
Notes:
Part headings not law—1999 c 153: See note following RCW 57.04.050.

catchline: Bonds and warrants of counties, municipalities, etc., of Washington.


title: RCW 32.20.080

text:
A mutual savings bank may invest its funds in the valid bonds of any incorporated city having a population in excess of three thousand inhabitants as shown by the last decennial federal census or of any county or school district situated in one of the states of the United States which adjoins the state of Washington: PROVIDED, That the indebtedness of such city or school district, together with the indebtedness of any other district or other municipal corporation or subdivision (except a county) which is wholly or in part included within the boundaries or limits of the city or school district, less its water debt and sinking fund, does not exceed twelve percent, or the indebtedness of the county less its sinking fund does not exceed seven percent, of the valuation thereof for the purposes of taxation.
[ 1955 c 13 s 32.20.080. Prior: 1937 c 95 s 4; 1929 c 74 s 7; 1925 ex.s. c 86 s 4; 1921 c 156 s 11e; RRS s 3381-7.]

catchline: Municipal bonds in adjoining state.


title: RCW 32.20.090

text:
A mutual savings bank may invest in housing or industrial development bonds or municipal obligations issued by a state, county, parish, borough, city, or district situated in the United States, or by any instrumentality thereof, provided such bonds or obligations at the time of purchase are prudent investments.
[ 1985 c 56 s 11; 1955 c 13 s 32.20.090. Prior: 1937 c 95 s 5; 1929 c 74 s 8; 1921 c 156 s 11f; RRS s 3381-8.]

catchline: Housing and industrial development bonds and municipal obligations in any state.


title: RCW 32.20.100

text:
A mutual savings bank may invest its funds in the water revenue or electric revenue bonds of any incorporated city situated in the United States: PROVIDED, That the city has a population as shown by the last decennial federal census of at least forty-five thousand inhabitants, and the entire revenue of the city's water or electric system less maintenance and operating costs is irrevocably pledged to the payment of the interest and principal of the bonds.
[ 1955 c 13 s 32.20.100. Prior: 1941 c 15 s 8; 1937 c 95 s 6; Rem. Supp. 1941 s 3381-8a.]

catchline: Revenue bonds of certain cities in any state.


title: RCW 32.20.110

text:
A mutual savings bank may invest its funds in the bonds of any port district, sanitary district, water-sewer district, tunnel district, bridge district, flood control district, park district, or highway district in the United States which has a population as shown by the last decennial federal census of not less than one hundred fifty thousand inhabitants, and has taxable real property with an assessed valuation in excess of two hundred million dollars and has power to levy taxes on the taxable real property therein for the payment of the bonds without limitation of rate or amount.
[ 1999 c 153 s 27; 1955 c 13 s 32.20.110. Prior: 1937 c 95 s 7; RRS s 3381-8b.]
Notes:
Part headings not law—1999 c 153: See note following RCW 57.04.050.

catchline: District bonds secured by taxing power.


title: RCW 32.20.120

text:
A mutual savings bank may invest not to exceed fifteen percent of its funds in the bonds or warrants of any local improvement district of any city or town of this state (except bonds or warrants issued for an improvement consisting of grading only), unless the total indebtedness of the district after the completion of the improvement for which the bonds or warrants are issued, plus the amount of all other assessments of a local or special nature against the land assessed or liable to be assessed to pay the bonds, exceed fifty percent of the value of the benefited property, exclusive of improvements, at the time the bonds or warrants are purchased or taken by the bank, according to the actual valuation last placed upon the property for general taxation.
Before any such bonds or warrants are purchased or taken as security the condition of the district's affairs shall be ascertained and the property of the district examined by at least two members of the board of investment who shall report in writing their findings and recommendations; and no bonds or warrants shall be taken unless such report is favorable, nor unless the executive committee of the board of trustees after careful investigation is satisfied of the validity of the bonds or warrants and of the validity and sufficiency of the assessment or other means provided for payment thereof: PROVIDED, That, excepting bonds issued by local improvement districts in cities of the first or second class, for improvements ordered after June 7, 1927, no local improvement district bonds falling within the twenty-five percent in amount of any issue last callable for payment, shall be acquired or taken as security.
[ 1955 c 13 s 32.20.120. Prior: 1953 c 238 s 5; 1929 c 74 s 9; 1921 c 156 s 11h; RRS s 3381-9.]

catchline: Local improvement district bonds.


title: RCW 32.20.130

text:
A mutual savings bank may invest not to exceed five percent of its funds in the bonds of any irrigation, diking, drainage, diking improvement, or drainage improvement district of this state, unless the total indebtedness of the district after the completion of the improvement for which the bonds are issued, plus the amount of all other assessments of a local or special nature against the land assessed or liable to be assessed to pay the bonds, exceeds forty percent of the value of the benefited property, exclusive of improvements, at the time the bonds are purchased or taken by the bank, according to the actual valuation last placed upon the property for general taxation.
Before any such bonds are purchased or taken as security the condition of the district's affairs shall be ascertained and the property of the district examined by at least two members of the board of investment of the mutual savings bank, who shall report in writing their findings and recommendations; and no bonds shall be taken unless such report is favorable, nor unless the executive committee of the board of trustees after careful investigation is satisfied of the validity of the bonds and of the sufficiency of the assessment or other means provided for payment thereof: PROVIDED, That no mutual savings bank shall invest a sum greater than three percent of its funds, or, in any event, more than three hundred thousand dollars, in the bonds of any one district described in this section.
[ 1955 c 13 s 32.20.130. Prior: 1929 c 74 s 10; 1921 c 156 s 11h; RRS s 3381-10.]

catchline: Bonds of irrigation, diking, drainage districts.


title: RCW 32.20.210

text:
A mutual savings bank may invest not to exceed five percent of its funds in interest bearing obligations of the International Bank for Reconstruction and Development.
[ 1955 c 13 s 32.20.210. Prior: 1949 c 119 s 3; Rem. Supp. 1949 s 3381-16b.]

catchline: Obligations of International Bank for Reconstruction and Development.


title: RCW 32.20.215

text:
A mutual savings bank may invest not to exceed five percent of its funds in obligations issued or guaranteed by the Inter-American Development Bank.
[ 1963 c 176 s 14.]

catchline: Obligations issued or guaranteed by Inter-American Development Bank.


title: RCW 32.20.217

text:
A mutual savings bank may invest not to exceed five percent of its funds in obligations issued or guaranteed by the Asian Development Bank.
[ 1971 ex.s. c 222 s 7.]
Notes:
Severability—1971 ex.s. c 222: See note following RCW 32.04.085.

catchline: Obligations of Asian Development Bank.


title: RCW 32.20.219

text:
A mutual savings bank may invest not to exceed five percent of its funds in obligations issued or guaranteed by the African Development Bank or in obligations issued or guaranteed by any multilateral development bank in which the United States government formally participates.
[ 1985 c 301 s 1.]

catchline: Obligations issued or guaranteed by African Development Bank or other multilateral development bank.


title: RCW 32.20.220

text:
A mutual savings bank may invest not to exceed twenty percent of its funds in the following:
(1) Bankers' acceptances, and bills of exchange made eligible by law for rediscount with federal reserve banks, provided the same are accepted by a bank or trust company which is a member of the federal reserve system and which has a capital and surplus of not less than two million dollars, or commercial paper which is a prudent investment.
(2) Bills of exchange drawn by the seller on the purchaser of goods and accepted by such purchaser, of the kind made eligible by law for rediscount with federal reserve banks, provided the same are indorsed by a bank or trust company which is a member of the federal reserve system and which has a capital and surplus of not less than two million dollars.
The aggregate amount of the liability of any bank or trust company to any mutual savings bank, whether as principal or indorser, for acceptances held by such savings bank and deposits made with it, shall not exceed twenty-five percent of the paid up capital and surplus of such bank or trust company, and not more than five percent of the funds of any mutual savings bank shall be invested in the acceptances of or deposited with a bank or trust company of which a trustee of such mutual savings bank is a director.
[ 1985 c 56 s 12; 1955 c 13 s 32.20.220. Prior: 1929 c 74 s 17; RRS s 3381-17.]

catchline: Bankers' acceptances, bills of exchange, and commercial paper.


title: RCW 32.20.230

text:
A mutual savings bank may invest its funds in promissory notes payable to the order of the savings bank, secured by the pledge or assignment of investments lawfully purchasable by a savings bank. No such loan shall exceed ninety percent of the cash market value of such investments so pledged. Should any of the investments so held in pledge depreciate in value after the making of such loan, the savings bank shall require an immediate payment of such loan, or of a part thereof, or additional security therefor, so that the amount loaned thereon shall at no time exceed ninety percent of the market value of the investments so pledged for such loan.
[ 1969 c 55 s 5; 1963 c 176 s 6; 1955 c 13 s 32.20.230. Prior: 1945 c 228 s 2; 1929 c 74 s 18; Rem. Supp. 1945 s 3381-18.]
Notes:
Interest and usury in general: Chapter 19.52 RCW.

catchline: Notes secured by investments.


title: RCW 32.20.240

text:
A mutual savings bank may invest its funds in promissory notes made payable to the order of the savings bank, secured by the pledge or assignment of the account of the mutual savings bank as collateral security for the payment thereof. No such loan shall exceed the balance due the holder of such account.
[ 1967 c 145 s 5; 1955 c 13 s 32.20.240. Prior: 1945 c 228 s 3; 1929 c 74 s 19; 1921 c 156 s 11m; Rem. Supp. 1945 s 3381-19.]
Notes:
Interest and usury in general: Chapter 19.52 RCW.

catchline: Notes secured by pledge or assignment of account.


title: RCW 32.20.253

text:
A mutual savings bank may invest its funds in loans secured by real estate or on the security of mobile homes or other movable buildings or any interest or estate in any of the foregoing. Such loans may be on such terms and conditions and subject to such limitations and restrictions as the board of trustees shall from time to time establish.
[ 1981 c 86 s 14.]
Notes:
Severability—1981 c 86: See note following RCW 32.08.140.

catchline: Loans secured by real estate, mobile homes, movable buildings.


title: RCW 32.20.265

text:
When, under any provision of this title, a written report is required of members of the board of investment of a mutual savings bank certifying according to their best judgment the value of any property to be mortgaged such value may be determined upon the signed opinion in writing of an appraiser appointed by the board of trustees of such bank.
[ 1957 c 80 s 9.]

catchline: Valuation of property to be mortgaged—Appraiser's opinion.


title: RCW 32.20.280

text:
A mutual savings bank may invest its funds in real estate as follows:
(1) A tract of land whereon there is or may be erected a building or buildings suitable for the convenient transaction of the business of the savings bank, from portions of which not required for its own use revenue may be derived: PROVIDED, That the cost of the land and building or buildings for the transaction of the business of the savings bank shall in no case exceed fifty percent of the guaranty fund, undivided profits, reserves, and subordinated securities of the savings bank, except with the approval of the director; and before the purchase of such property is made, or the erection of a building or buildings is commenced, the estimate of the cost thereof, and the cost of the completion of the building or buildings, shall be submitted to and approved by the director. "The cost of the land and building or buildings" means the amounts paid or expended therefor less the reasonable depreciation thereof taken by the bank against such improvements during the time they were held by the bank.
(2) Such lands as shall be conveyed to the savings bank in satisfaction of debts previously contracted in the course of its business.
(3) Such lands as the savings bank shall purchase at sales under judgments, decrees, or mortgages held by it.
All real estate purchased by any such savings bank, or taken by it in satisfaction of debts due it, under this section, shall be conveyed to it directly by name, or in the name of a corporation all of the stock of which is owned by the bank, or in such other manner as the bank shall determine to be in the best interest of the bank, and the conveyance shall be immediately recorded in the office of the proper recording officer of the county in which such real estate is situated.
(4) Every parcel of real estate purchased or acquired by a savings bank under subsections (2) and (3) of this section, shall be sold by it within five years from the date on which it was purchased or acquired, or in case it was acquired subject to a right of redemption, within five years from the date on which the right of redemption expires, unless:
(a) There is a building thereon occupied by the savings bank and its offices,
(b) The director, on application of the board of trustees of the savings bank, extends the time within which such sale shall be made, or
(c) The property is held by the bank as an investment under the provisions of RCW 32.20.285, as now or hereafter amended.
[ 1994 c 92 s 337; 1981 c 86 s 4; 1973 1st ex.s. c 31 s 6; 1969 c 55 s 7; 1955 c 13 s 32.20.280. Prior: 1929 c 74 s 22; 1921 c 156 s 110; 1915 c 175 s 12; RRS s 3381-22.]
Notes:
Severability—1981 c 86: See note following RCW 32.08.140.
Construction—1973 1st ex.s. c 31: See RCW 32.20.500.

catchline: Investments in real estate.


title: RCW 32.20.285

text:
Subject to such requirements, restrictions, or other conditions as the director may adopt by rule, order, directive, standard, policy, memorandum[,] or other communication with regard to the investment, a savings bank may invest its funds in such real estate, improved or unimproved, and its fixtures and equipment, as the savings bank shall purchase either alone or with others or through ownership of interests in entities holding such real estate. The savings bank may improve property which it owns, and rent, lease, sell, and otherwise deal in such property, the same as any other owner thereof. The total amount a savings bank may invest pursuant to this section shall not exceed twenty percent of its funds. No officer or board trustee or director of the savings bank shall own or hold any interest in any property in which the savings bank owns an interest, and in the event the bank owns an interest in property hereunder with or as a part of another entity, no officer or board trustee or director of the savings bank shall own more than two and one-half percent of the equity or stock of any entity involved, and all of the officers and board trustees or directors of the savings bank shall not own more than five percent of the equity or stock of any entity involved.
[ 2010 c 88 s 57; 1981 c 86 s 5; 1969 c 55 s 15.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1981 c 86: See note following RCW 32.08.140.

catchline: Investments through purchase of real estate—Improvements.


title: RCW 32.20.310

text:
A savings bank may deposit securities owned by it, for safekeeping, with any duly designated depositary for the bank's funds. The written statement of the depositary that it holds for safekeeping specified securities of a savings bank may be taken as evidence of the facts therein shown by any public officer or any officer of the bank or committee of its trustees whose duty it is to examine the affairs and assets of the bank.
[ 1955 c 13 s 32.20.310. Prior: 1929 c 74 s 24; 1927 c 184 s 4; RRS s 3381-24.]

catchline: Deposit of securities.


title: RCW 32.20.320

text:
The trustees of every savings bank shall as soon as practicable invest the moneys deposited with it in the securities prescribed in this title.
The purchase by a savings bank of a negotiable certificate of deposit or similar security issued by a bank need not be considered a deposit if the certificate or security is eligible for investment by a savings bank under any other provision of this title.
[ 1969 c 55 s 8; 1955 c 13 s 32.20.320. Prior: 1929 c 74 s 25; 1925 ex.s. c 86 s 11; 1915 c 175 s 20; RRS s 3381-25.]

catchline: Investment of funds.


title: RCW 32.20.330

text:
A mutual savings bank may invest in loans to sole proprietorships, partnerships, limited liability companies, corporations, or other entities, or in preferred stock or discounted or other interest bearing obligations issued, guaranteed, or assumed by limited liability companies or corporations commonly accepted as industrial corporations or engaged in communications, transportation, agriculture, furnishing utility professional services, manufacturing, construction, mining, fishing, processing or merchandising of goods, food, or information, banking, or commercial or consumer financing, doing business or incorporated under the laws of the United States, or any state thereof, or the District of Columbia, or the Dominion of Canada, or any province thereof, subject to the following conditions:
(1) Not more than two percent of the bank's funds shall be invested, pursuant to this section, in the aggregate of loans to and preferred stock and obligations of any person, as defined in *RCW 32.32.228(1)(c), and such person's affiliates, as defined in RCW 32.32.025(1), incorporating the definition of control in RCW 32.32.025(8).
(2) Such loans or securities shall be prudent investments.
(3) Pursuant to this section, the total amount a savings bank may invest shall not exceed fifty percent of its funds, and not more than fifteen percent of the bank's funds may be invested in such loans to or securities of any industry.
[ 1999 c 14 s 26; 1985 c 56 s 13; 1973 1st ex.s. c 31 s 7; 1971 ex.s. c 222 s 6; 1955 c 80 s 6.]
Notes:
*Reviser's note: RCW 32.32.228 was amended by 2005 c 348 s 5, changing subsection (1)(c) to subsection (1)(d).
Construction—1973 1st ex.s. c 31: See RCW 32.20.500.
Severability—1971 ex.s. c 222: See note following RCW 32.04.085.

catchline: Investments—Loans, preferred stock, or interest-bearing obligations—Restrictions.


title: RCW 32.20.335

text:
A mutual savings bank may invest in loans or securities that are qualified thrift investments for a savings association subject to the limits specified in 12 U.S.C. Sec. 1467a(m).
[ 1999 c 14 s 27.]


title: RCW 32.20.370

text:
A mutual savings bank may invest its funds in bonds or other interest bearing or discounted obligations of corporations not otherwise eligible for investment by the savings bank which are prudent investments for such bank in the opinion of its board of trustees or of a committee thereof whose action is ratified by such board at its regular meeting next following such investment. The total amount a mutual savings bank may invest pursuant to this section shall not exceed ten percent of its funds.
[ 1977 ex.s. c 104 s 5; 1967 c 145 s 9; 1959 c 41 s 6.]

catchline: Corporate bonds and other interest-bearing or discounted obligations.


title: RCW 32.20.380

text:
A mutual savings bank may invest its funds in stocks or other securities of corporations not otherwise eligible for investment by the savings bank which are prudent investments for the bank in the opinion of its board of trustees or of a committee thereof whose action is ratified by the board at its regular meeting next following the investment. The total amount a mutual savings bank may invest pursuant to this section shall not exceed fifty percent of the total of its guaranty fund, undivided profits, and unallocated reserves, or five percent of its deposits, whichever is less.
[ 1981 c 86 s 6; 1963 c 176 s 16.]
Notes:
Severability—1981 c 86: See note following RCW 32.08.140.

catchline: Stocks, securities, of corporations not otherwise eligible for investment.


title: RCW 32.20.390

text:
A mutual savings bank may invest its funds:
(1) In capital stock, notes, bonds, debentures, participating certificates, and other obligations of any corporation or association which is or hereafter may be created pursuant to any law of the United States for the purpose of insuring or marketing real estate mortgages: PROVIDED, That the amount a mutual savings bank may invest in the capital stock of any one such corporation shall not exceed five percent of the funds of the mutual savings bank and the total amount it may invest in capital stock pursuant to this subsection (1) shall not exceed ten percent of the funds of the mutual savings bank.
(2) In such loans, advances of credit, participating certificates, and purchases of obligations representing loans and advances of credit as are eligible for insurance by any corporation or association which is or hereafter may be created pursuant to any law of the United States for the purpose of insuring real estate mortgages. The bank may do all acts necessary or appropriate to obtain such insurance. No law of this state prescribing the nature, amount, or form of security, or prescribing or limiting the period for which loans or advances of credit may be made shall apply to loans, advances of credit, or purchases made pursuant to this subsection (2).
[ 1963 c 176 s 17.]

catchline: Obligations of corporations or associations federally authorized to insure or market real estate mortgages—Loans, etc., eligible for insurance.


title: RCW 32.20.400

text:
A mutual savings bank may invest not to exceed twenty percent of its funds pursuant to this section in loans for home or property repairs, alterations, appliances, improvements, or additions, home furnishings, for installation of underground utilities, for educational purposes, or for nonbusiness family purposes: PROVIDED, That the application therefor shall state that the proceeds are to be used for one of the above purposes.
[ 1999 c 14 s 28; 1981 c 86 s 7; 1977 ex.s. c 104 s 6; 1969 c 55 s 9; 1967 c 145 s 10; 1963 c 176 s 18.]
Notes:
Severability—1981 c 86: See note following RCW 32.08.140.

catchline: Loans for home or property repairs, alterations, appliances, improvements, additions, furnishings, underground utilities, education or nonbusiness family purposes.