title: RCW 31.45.082

text:
(1) A licensee shall comply with all applicable state and federal laws when collecting a delinquent small loan. A licensee may charge a one-time fee as determined in rule by the director to any borrower in default on any loan or loans where the borrower's check has been returned unpaid by the financial institution upon which it was drawn. A licensee may take civil action under Title 62A RCW to collect upon a check that has been dishonored. If the licensee takes civil action, a licensee may charge the borrower the cost of collection as allowed under RCW 62A.3-515, but may not collect attorneys' fees or any other interest or damages as allowed under RCW 62A.3-515. A licensee may not threaten criminal prosecution as a method of collecting a delinquent small loan or threaten to take any legal action against the borrower which the licensee may not legally take.
(2) Unless invited by the borrower, a licensee may not visit a borrower's residence or place of employment for the purpose of collecting a delinquent small loan. A licensee may not impersonate a law enforcement official, or make any statements which might be construed as indicating an official connection with any federal, state, county, or city law enforcement agency, or any other governmental agency, while engaged in collecting a small loan.
(3) A licensee may not communicate with a borrower in such a manner as to harass, intimidate, abuse, or embarrass a borrower, including but not limited to communication at an unreasonable hour, with unreasonable frequency, by threats of force or violence, or by use of offensive language. A communication shall be presumed to have been made for the purposes of harassment if it is initiated by the licensee for the purposes of collection and:
(a) It is made with a borrower or spouse in any form, manner, or place, more than three times in a single week;
(b) It is made with a borrower at his or her place of employment more than one time in a single week or made to a borrower after the licensee has been informed that the borrower's employer prohibits such communications;
(c) It is made with the borrower or spouse at his or her place of residence between the hours of 9:00 p.m. and 7:30 a.m.; or
(d) It is made to a party other than the borrower, the borrower's attorney, the licensee's attorney, or a consumer reporting agency if otherwise permitted by law except for purposes of acquiring location or contact information about the borrower.
(4) A licensee is required to maintain a communication log of all telephone and written communications with a borrower initiated by the licensee regarding any collection efforts including date, time, and the nature of each communication.
(5) If a dishonored check is assigned to any third party for collection, this section applies to the third party for the collection of the dishonored check.
(6) For the purposes of this section, "communication" includes any contact with a borrower, initiated by the licensee, in person, by telephone, or in writing (including emails, text messages, and other electronic writing) regarding the collection of a delinquent small loan, but does not include any of the following:
(a) Communication while a borrower is physically present in the licensee's place of business;
(b) An unanswered telephone call in which no message (other than a caller ID) is left, unless the telephone call violates subsection (3)(c) of this section; and
(c) An initial letter to the borrower that includes disclosures intended to comply with the federal fair debt collection practices act.
(7) For the purposes of this section, (a) a communication occurs at the time it is initiated by a licensee regardless of the time it is received or accessed by the borrower, and (b) a call to a number that the licensee reasonably believes is the borrower's cell phone will not constitute a communication with a borrower at the borrower's place of employment.
(8) For the purposes of this section, "week" means a series of seven consecutive days beginning on a Sunday.
[ 2009 c 13 s 1; 2003 c 86 s 11.]

catchline: Delinquent small loan—Restrictions on collection by licensee or third party—Definitions.


doc_type: statute

jurisdiction: wa

title: RCW 31.45.084

text:
(1) If a borrower notifies a licensee that the borrower will be or is unable to repay a loan when it is due, the licensee must inform the borrower that the borrower may convert their small loan to an installment plan. The licensee must convert the small loan to an installment plan at the borrower's request. Each agreement for a loan installment plan must be in writing and acknowledged by both the borrower and the licensee. The licensee may not assess any other fee, interest charge, or other charge on the borrower as a result of converting the small loan into an installment plan. This installment plan must provide for the payment of the total of payments due on the small loan over a period not less than ninety days for a loan amount of up to and including four hundred dollars. For a loaned amount over four hundred dollars, the installment plan must be a period not less than one hundred eighty days. The borrower may pay the total of installments at any time. The licensee may not charge any penalty, fee, or charge to the borrower for prepayment of the loan installment plan by the borrower. Each licensee shall conspicuously disclose to each borrower in the small loan agreement or small loan note that the borrower has access to such an installment plan. A licensee's violation of such an installment plan constitutes a violation of this chapter.
(2) The licensee must return any postdated checks that the borrower has given to the licensee for the original small loan at the initiation of the installment plan.
(3) A licensee may take postdated checks for installment plan payments at the time the installment plan is originated. If any check accepted as payment under the installment plan is dishonored, the licensee may not charge the borrower any fee for the dishonored check. If a borrower defaults on the installment plan, the licensee may charge the borrower a one-time installment plan default fee of twenty-five dollars.
(4) If the licensee enters into an installment plan with the borrower through an accredited third party, with certified credit counselors, that is representing the borrower, the licensee's failure to comply with the terms of that installment plan constitutes a violation of this chapter.
[ 2009 c 510 s 4; 2003 c 86 s 12.]
Notes:
Finding—Intent—Liberal construction—2009 c 510: See note following RCW 31.45.010.
Effective date—2003 c 86 s 12: "Section 12 of this act takes effect October 1, 2003." [ 2003 c 86 s 20.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Small loan installment plan—Terms—Restrictions.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 31.45.085

text:
(1)(a) In addition to other disclosures required by this chapter, the application for a small loan must include a statement that is substantially similar to the following: "At the time you repay this loan, you should have sufficient funds to meet your other financial obligations. If you cannot pay other bills because you are paying off this debt, you should go into the installment plan offered in connection with this loan."
(b) The statement in (a) of this subsection must be on the front page of the loan application and must be in at least twelve point type.
(2) The director may adopt rules to implement this section.
[ 2009 c 510 s 5.]
Notes:
Finding—Intent—Liberal construction—2009 c 510: See note following RCW 31.45.010.


title: RCW 31.45.086

text:
A borrower may rescind a loan, on or before the close of business on the next day of business at the location where the loan was originated, by returning the principal in cash or the original check disbursed by the licensee to fund the small loan. The licensee may not charge the borrower for rescinding the loan and shall return to the borrower any postdated check taken as security for the loan or any electronic equivalent. The licensee shall conspicuously disclose to the borrower this right of rescission in writing in the small loan agreement or small loan note.
[ 2003 c 86 s 13.]

catchline: Small loans—Right of rescission.


title: RCW 31.45.088

text:
(1) When advertising the availability of small loans, if a licensee includes in an advertisement the fee or interest rate charged by the licensee for a small loan, then the licensee shall also disclose the annual percentage rate resulting from this fee or interest rate.
(2) When advertising the availability of small loans, compliance with all applicable state and federal laws and regulations, including the truth in lending act, 15 U.S.C. Sec. 1601 and Regulation Z, 12 C.F.R. Sec. [Part] 226 constitutes compliance with subsection (1) of this section.
(3) When making a small loan, each licensee shall disclose to the borrower the terms of the small loan, including the principal amount of the small loan, the total of payments of the small loan, the fee or interest rate charged by the licensee on the small loan, and the annual percentage rate resulting from this fee or interest rate.
(4) When making a small loan, disclosure of the terms of the small loan in compliance with all applicable state and federal laws and regulations, including the truth in lending act, 15 U.S.C. Sec. 1601 and Regulation Z, 12 C.F.R. Sec. [Part] 226 constitutes compliance with subsection (3) of this section.
[ 2003 c 86 s 14.]

catchline: Small loans—Disclosure requirements—Advertising—Making loan.


title: RCW 31.45.090

text:
(1) Each licensee shall submit to the director, in a form approved by the director, a report containing financial statements covering the calendar year or, if the licensee has an established fiscal year, then for such fiscal year, within one hundred five days after the close of each calendar or fiscal year. The licensee shall also file such additional relevant information as the director may require. Any information provided by a licensee in an annual report that constitutes a trade secret under chapter 19.108 RCW is exempt from disclosure under chapter 42.56 RCW, unless aggregated with information supplied by other licensees in such a manner that the licensee's individual information is not identifiable. Any information provided by the licensee that allows identification of the licensee may only be used for purposes reasonably related to the regulation of licensees to ensure compliance with this chapter.
(2) A licensee whose license has been suspended or revoked shall submit to the director, at the licensee's expense, within one hundred five days after the effective date of such surrender or revocation, a closing audit report containing audited financial statements as of such effective date for the twelve months ending with such effective date.
(3) The director shall adopt rules specifying the form and content of such audit reports and may require additional reporting as is necessary for the director to ensure compliance with this chapter.
[ 2005 c 274 s 257; 2003 c 86 s 15; 1994 c 92 s 282; 1991 c 355 s 9.]

catchline: Report requirements—Disclosure of information—Rules.


title: RCW 31.45.093

text:
(1) The director must, by contract with a vendor or service provider or otherwise, develop and implement a system by means of which a licensee may determine:
(a) Whether a consumer has an outstanding small loan;
(b) The number of small loans the consumer has outstanding;
(c) Whether the borrower is eligible for a loan under RCW 31.45.073;
(d) Whether the borrower is in an installment plan; and
(e) Any other information necessary to comply with this chapter.
(2) The director may specify the form and contents of the system by rule. Any system must provide that the information entered into or stored by the system is:
(a) Accessible to and usable by licensees and the director from any location in this state; and
(b) Secured against public disclosure, tampering, theft, or unauthorized acquisition or use.
(3) If the system described in subsection (1) of this section is developed and implemented, a licensee making small loans under this chapter must enter or update the required information in subsection (1) of this section at the time that the small loan transaction is conducted by the licensee.
(4) A licensee must continue to enter and update all required information for any loans subject to this chapter that are outstanding or have not yet expired after the date on which the licensee no longer has the license or small loan endorsement required by this chapter. Within ten business days after ceasing to make loans subject to this chapter, the licensee must submit a plan for continuing compliance with this subsection to the director for approval. The director must promptly approve or disapprove the plan and may require the licensee to submit a new or modified plan that ensures compliance with this subsection.
(5) If the system described in subsection (1) of this section is developed and implemented, the director shall adopt rules to set the fees licensees shall pay to the vendor or service provider for the operation and administration of the system and the administration of this chapter by the department.
(6) The director shall adopt rules establishing standards for the retention, archiving, and deletion of information entered into or stored by the system described in subsection (1) of this section.
(7) The information in the system described in subsection (1) of this section is not subject to public inspection or disclosure under chapter 42.56 RCW.
[ 2009 c 510 s 6.]
Notes:
Finding—Intent—Liberal construction—2009 c 510: See note following RCW 31.45.010.


title: RCW 31.45.100

text:
The director or the director's designee may at any time examine and investigate the business and examine the books, accounts, records, and files, or other information, wherever located, of any licensee or person who the director has reason to believe is engaging in the business governed by this chapter. For these purposes, the director or the director's designee may require the attendance of and examine under oath all persons whose testimony may be required about the business or the subject matter of the investigation. The director or the director's designee may require the production of original books, accounts, records, files, or other information, or may make copies of such original books, accounts, records, files, or other information. The director or the director's designee may issue a subpoena or subpoena duces tecum requiring attendance and testimony, or the production of the books, accounts, records, files, or other information. The director shall collect from the licensee the actual cost of the examination or investigation.
[ 2003 c 86 s 16; 1994 c 92 s 283; 1991 c 355 s 10.]

catchline: Examination or investigation—Director's authority—Costs.


title: RCW 31.45.103

text:
(1) The director or authorized assistants may apply for and obtain a superior court order approving and authorizing a subpoena in advance of its issuance. The application may be made in the county where the subpoenaed person resides or is found, or the county where the subpoenaed documents, records, or evidence are located, or in Thurston county. The application must:
(a) State that an order is sought under this section;
(b) Adequately specify the documents, records, evidence, or testimony; and
(c) Include a declaration made under oath that an investigation is being conducted for a lawfully authorized purpose related to an investigation within the department's authority and that the subpoenaed documents, records, evidence, or testimony are reasonably related to an investigation within the department's authority.
(2) When an application under this section is made to the satisfaction of the court, the court must issue an order approving the subpoena. An order under this subsection constitutes authority of law for the agency to subpoena the documents, records, evidence, or testimony.
(3) The director or authorized assistants may seek approval and a court may issue an order under this section without prior notice to any person, including the person to whom the subpoena is directed and the person who is the subject of an investigation. An application for court approval is subject to the fee and process set forth in RCW 36.18.012(3).
[ 2011 c 93 s 10.]
Notes:
Finding—Intent—2011 c 93: See note following RCW 18.44.425.


title: RCW 31.45.105

text:
(1) It is a violation of this chapter for any person subject to this chapter to:
(a) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead any borrower, to defraud or mislead any lender, or to defraud or mislead any person;
(b) Directly or indirectly engage in any unfair or deceptive practice toward any person;
(c) Directly or indirectly obtain property by fraud or misrepresentation;
(d) Make a small loan to any person physically located in Washington through use of the internet, facsimile, telephone, kiosk, or other means without first obtaining a small loan endorsement; and
(e) Sell in a retail installment transaction under chapter 63.14 RCW open loop prepaid access (prepaid access as defined in 31 C.F.R. Part 1010.100(ww) and not closed loop prepaid access as defined in 31 C.F.R. Part 1010.100(kkk)).
(2) It is a violation of this chapter for any person subject to this chapter to:
(a) Advertise, print, display, publish, distribute, or broadcast or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast [broadcasted] any statement or representation that is false, misleading, or deceptive, or that omits material information;
(b) Fail to pay the annual assessment by the date and time as specified in RCW 31.45.050;
(c) Fail to pay any other fee, assessment, or moneys due the department.
(3) In addition to any other penalties, any transaction in violation of subsection (1) of this section is uncollectible and unenforceable.
[ 2012 c 17 s 10; 2007 c 81 s 1.]

catchline: Violations of chapter—Enforceability of transaction.


title: RCW 31.45.110

text:
(1) The director may issue and serve upon a licensee or applicant, or any director, officer, sole proprietor, partner, or controlling person of a licensee or applicant, a statement of charges if, in the opinion of the director, any licensee or applicant, or any director, officer, sole proprietor, partner, or controlling person of a licensee or applicant:
(a) Is engaging or has engaged in an unsafe or unsound financial practice in conducting a business governed by this chapter;
(b) Is violating or has violated this chapter, including violations of:
(i) Any rules, orders, or subpoenas issued by the director under any act;
(ii) Any condition imposed in writing by the director in connection with the granting of any application or other request by the licensee; or
(iii) Any written agreement made with the director;
(c) Is about to do the acts prohibited in (a) or (b) of this subsection when the opinion that the threat exists is based upon reasonable cause;
(d) Obtains a license by means of fraud, misrepresentation, concealment, or through mistake or inadvertence of the director;
(e) Provides false statements or omits material information on an application;
(f) Knowingly or negligently omits material information during or in response to an examination or in connection with an investigation by the director;
(g) Fails to pay a fee or assessment required by the director or any multistate licensing system prescribed by the director, or fails to maintain the required bond or deposit;
(h) Commits a crime against the laws of any jurisdiction involving moral turpitude, financial misconduct, or dishonest dealings. For the purposes of this section, a certified copy of the final holding of any court, tribunal, agency, or administrative body of competent jurisdiction is conclusive evidence in any hearing under this chapter;
(i) Knowingly commits or is a party to any material fraud, misrepresentation, concealment, conspiracy, collusion, trick, scheme, or device whereby any other person relying upon the word, representation, or conduct acts to his or her injury or damage;
(j) Converts any money or its equivalent to his or her own use or to the use of his or her principal or of any other person;
(k) Fails to disclose any information within his or her knowledge or fails to produce any document, book, or record in his or her possession for inspection by the director upon demand;
(l) Commits any act of fraudulent or dishonest dealing. For the purposes of this section, a certified copy of the final holding of any court, tribunal, agency, or administrative body of competent jurisdiction is conclusive evidence in any hearing under this chapter;
(m) Commits an act or engages in conduct that demonstrates incompetence or untrustworthiness, or is a source of injury and loss to the public;
(n) Violates any applicable state or federal law relating to the activities governed by this chapter.
(2) The statement of charges must be issued under chapter 34.05 RCW. The director or the director's designee may impose the following sanctions against any licensee or applicant, or any directors, officers, sole proprietors, partners, controlling persons, or employees of a licensee or applicant:
(a) Deny, revoke, suspend, or condition a license or small loan endorsement;
(b) Order the licensee or person to cease and desist from practices that violate this chapter or constitute unsafe and unsound financial practices;
(c) Impose a fine not to exceed one hundred dollars per day for each day's violation of this chapter;
(d) Order restitution or refunds to borrowers or other parties for violations of this chapter or take other affirmative action as necessary to comply with this chapter; and
(e) Remove from office or ban from participation in the affairs of any licensee any director, officer, sole proprietor, partner, controlling person, or employee of a licensee.
(3) The proceedings to impose the sanctions described in subsection (2) of this section, including any hearing or appeal of the statement of charges, are governed by chapter 34.05 RCW. The statute of limitations on actions not subject to RCW 4.16.160 that are brought under this chapter by the director is five years.
(4) Unless the licensee or person personally appears at the hearing or is represented by a duly authorized representative, the licensee is deemed to have consented to the statement of charges and the sanctions imposed in the statement of charges.
(5) Except to the extent prohibited by another statute, the director may engage in informal settlement of complaints or enforcement actions including, but not limited to, payment to the department for purposes of financial literacy and education programs authorized under RCW 43.320.150.
[ 2014 c 36 s 7; 2012 c 17 s 11; 2003 c 86 s 17; 1994 c 92 s 284; 1991 c 355 s 11.]

catchline: Violations or unsound financial practices—Statement of charges—Hearing—Sanctions—Director's authority—Statute of limitations.


title: RCW 31.45.120

text:
Whenever the director determines that the acts specified in RCW 31.45.110 or their continuation is likely to cause insolvency or substantial injury to the public, the director may also issue a temporary cease and desist order requiring the licensee to cease and desist from the violation or practice. The order becomes effective upon service upon the licensee and remains effective unless set aside, limited, or suspended by a court under RCW 31.45.130 pending the completion of the administrative proceedings under the notice and until such time as the director dismisses the charges specified in the notice or until the effective date of the cease and desist order issued against the licensee under RCW 31.45.110.
[ 2003 c 86 s 18; 1994 c 92 s 285; 1991 c 355 s 12.]

catchline: Violations or unsound practices—Temporary cease and desist order—Director's authority.


title: RCW 31.45.130

text:
Within ten days after a licensee has been served with a temporary cease and desist order, the licensee may apply to the superior court in the county of its principal place of business for an injunction setting aside, limiting, or suspending the order pending the completion of the administrative proceedings pursuant to the notice served under RCW 31.45.120. The superior court has jurisdiction to issue the injunction.
[ 1991 c 355 s 13.]

catchline: Temporary cease and desist order—Licensee's application for injunction.


title: RCW 31.45.140

text:
In the case of a violation or threatened violation of a temporary cease and desist order issued under RCW 31.45.120, the director may apply to the superior court of the county of the principal place of business of the licensee for an injunction.
[ 1994 c 92 s 286; 1991 c 355 s 14.]

catchline: Violation of temporary cease and desist order—Director's application for injunction.


title: RCW 31.45.150

text:
Whenever as a result of an examination or report it appears to the director that:
(1) The capital of any licensee is impaired;
(2) Any licensee is conducting its business in such an unsafe or unsound manner as to render its further operations hazardous to the public;
(3) Any licensee has suspended payment of its trust obligations;
(4) Any licensee has refused to submit its books, papers, and affairs to the inspection of the director or the director's examiner;
(5) Any officer of any licensee refuses to be examined under oath regarding the business of the licensee;
(6) Any licensee neglects or refuses to comply with any order of the director made pursuant to this chapter unless the enforcement of such order is restrained in a proceeding brought by such licensee;
the director may immediately take possession of the property and business of the licensee and retain possession until the licensee resumes business or its affairs are finally liquidated as provided in RCW 31.45.160. The licensee may resume business upon such terms as the director may prescribe.
[ 1994 c 92 s 287; 1991 c 355 s 15.]

catchline: Licensee's failure to perform obligations—Director's duty.


title: RCW 31.45.160

text:
Whenever the director has taken possession of the property and business of a licensee, the director may petition the superior court for the appointment of a receiver to liquidate the affairs of the licensee. During the time that the director retains possession of the property and business of a licensee, the director has the same powers and authority with reference to the licensee as is vested in the director under chapter 31.04 RCW, and the licensee has the same rights to hearings and judicial review as are granted under chapter 31.04 RCW.
[ 1997 c 101 s 4; 1994 c 92 s 288; 1991 c 355 s 16.]

catchline: Director's possession of property and business—Appointment of receiver.


title: RCW 31.45.180

text:
Any person who violates or participates in the violation of any provision of the rules or orders of the director or of this chapter is guilty of a misdemeanor.
[ 1994 c 92 s 290; 1991 c 355 s 18.]

catchline: Violation—Misdemeanor.


title: RCW 31.45.190

text:
The legislature finds and declares that any violation of this chapter substantially affects the public interest and is an unfair and deceptive act or practice and an unfair method of competition in the conduct of trade or commerce as set forth in RCW 19.86.020. Remedies available under chapter 19.86 RCW shall not affect any other remedy the injured party may have.
[ 1991 c 355 s 19.]


title: RCW 31.45.200

text:
The director has the power, and broad administrative discretion, to administer and interpret the provisions of this chapter to ensure the protection of the public.
[ 1994 c 92 s 291; 1991 c 355 s 20.]


title: RCW 31.45.210

text:
(1) A licensee shall:
(a) When collecting any delinquent small loan, not garnish any wages or salary paid for service in the armed forces;
(b) Defer for the duration of the posting all collection activity against a military borrower who has been deployed to a combat or combat support posting for the duration of the posting;
(c) Not contact the military chain of command of a military borrower in an effort to collect a delinquent small loan;
(d) Honor the terms of any repayment agreement between the licensee and any military borrower, including any repayment agreement negotiated through military counselors or third party credit counselors; and
(e) Not make a loan from a specific location to a person that the licensee knows is a military borrower when the military borrower's commander has notified the licensee in writing that the specific location is designated off-limits to military personnel under their command.
(2) For purposes of this section, "military borrower" means any active duty member of the armed forces of the United States, or any member of the national guard or the reserves of the armed forces of the United States who has been called to active duty.
[ 2005 c 256 s 1.]


title: RCW 31.45.900

text:
This act shall take effect January 1, 1992. The director shall take such steps as are necessary to ensure that this act is implemented on its effective date.
[ 1994 c 92 s 292; 1991 c 355 s 24.]

catchline: Effective date, implementation—1991 c 355.


title: RCW 31.45.901

text:
This act takes effect January 1, 2010.
[ 2009 c 510 s 10.]

catchline: Effective date—2009 c 510.


title: RCW 32.04.002

text:
This title may be known and cited as the Washington savings bank act.
[ 2014 c 37 s 501.]
Notes:
Legislative declarations—Effective date—2014 c 37: See RCW 30A.04.005 and 30A.04.902.

catchline: Short title.


title: RCW 32.04.010

text:
This title shall not be construed as amending or repealing any other law of the state authorizing the incorporation of banks or regulating the same, but shall be deemed to be additional legislation for the sole purpose of authorizing the incorporation and operation of mutual savings banks and mutual savings banks converted under chapter 32.32 RCW to stock form, as herein prescribed. Savings banks incorporated on the stock plan, other than converted mutual savings banks, and other stock banks having savings departments as authorized by *RCW 30.20.060, or by any other law of the state heretofore or hereafter enacted, shall not be in any manner affected by the provisions of this title, or any amendment thereto.
[ 1981 c 85 s 105; 1955 c 13 s 32.04.010. Prior: 1915 c 175 s 52; RRS s 3381.]
Notes:
*Reviser's note: RCW 30.20.060 was recodified as RCW 30A.20.060 pursuant to 2014 c 37 s 4, effective January 5, 2015.

catchline: Scope of title.


title: RCW 32.04.012

text:
Notwithstanding any other provisions of this title, a savings bank is subject to the same limits on loans and extensions of credit, and exceptions thereto, as set forth in *RCW 30.04.111.
[ 2013 c 76 s 23.]
Notes:
*Reviser's note: RCW 30.04.111 was recodified as RCW 30A.04.111 pursuant to 2014 c 37 s 4, effective January 5, 2015.

catchline: Limits on loans and extensions of credit.


title: RCW 32.04.015

text:
(1) Each savings bank and its directors, officers, employees, and agents, shall comply with:
(a) This title and chapter 11.100 RCW as applicable to each of them;
(b) The rules adopted by the department with respect to savings banks;
(c) Any lawful direction or order of the director;
(d) Any lawful supervisory agreement with the director; and
(e) The applicable statutes, rules, and regulations administered by the board of governors of the federal reserve system, the federal office of thrift supervision, and the federal deposit insurance corporation with respect to savings banks and holding companies.
(2) Each holding company, and its directors, officers, employees, and agents, shall comply with:
(a) The provisions of this title that are applicable to each of them;
(b) The rules of the department that are applicable with respect to holding companies;
(c) Any lawful direction or order of the director;
(d) Any lawful supervisory agreement with the director; and
(e) The applicable statutes, rules, and regulations administered by the board of governors of the federal reserve system or the federal office of thrift supervision, or applicable successor agency, with respect to holding companies, the violation of which would result in an unsafe and unsound practice or material violation of law with respect to the subsidiary savings bank of the holding company.
(3) The violation of any supervisory agreement, directive, order, statute, rule, or regulation referenced in this section, in addition to any other penalty provided in this title, shall, at the option of the director, subject the offender to a penalty of up to ten thousand dollars for each offense, payable upon issuance of any order or directive of the director, which may be recovered by the attorney general in a civil action in the name of the department.
[ 2010 c 88 s 39.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.

catchline: Duty to comply—Violations—Penalty.


title: RCW 32.04.020

text:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this title.
(1) "Adequately capitalized," "critically undercapitalized," "significantly undercapitalized," "undercapitalized," and "well-capitalized," respectively, have meanings consistent with the definitions these same terms have under the prompt corrective action provisions of the federal deposit insurance act, 12 U.S.C. Sec. 1831o, or any successor federal statute, and applicable enabling rules of the federal deposit insurance corporation.
(2) "Bank holding company" means a bank holding company under authority of the federal bank holding company act.
(3) "Branch" means an established office or facility other than the principal office, at which employees of the savings bank take deposits. "Branch" does not mean a machine permitting customers to leave funds in storage or communicate with savings bank employees who are not located at the site of that machine, unless employees of the savings bank at the site of that machine take deposits on a regular basis. An office of an entity other than the savings bank is not established by the savings bank, regardless of any affiliation, accommodation arrangement, or other relationship between the other entity and the savings bank.
(4) "Department" means the Washington state department of financial institutions.
(5)"Director" means the director of the department.
(6) "Financial holding company" means a financial services holding company under the authority of the federal bank holding company act.
(7) "Holding company" means a bank holding company, financial holding company, or thrift holding company of a savings bank organized under chapter 32.08 RCW, converted from a mutual savings bank to a stock savings bank under chapter 32.32 RCW, or converted to a state savings bank under chapter 32.34 RCW.
(8) "Mutual savings" when used as part of a name under which business of any kind is or may be transacted by any person, firm, or corporation, except such as were organized and in actual operation on June 9, 1915, or as may be thereafter operated under the requirements of this title is hereby prohibited.
(9) "Savings bank" or "mutual savings bank" means savings banks organized under chapter 32.08 or 32.35 RCW or converted under chapter 32.32 or 33.44 RCW.
(10) "Thrift holding company" means a thrift institution holding company under authority of laws and rules administered by the federal office of thrift supervision, or its successor agency.
[ 2010 c 88 s 38; 1999 c 14 s 13; 1997 c 101 s 5; 1996 c 2 s 20; 1994 c 92 s 293; 1985 c 56 s 1; 1981 c 85 s 106; 1955 c 13 s 32.04.020. Prior: 1915 c 175 s 49; RRS s 3378.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.

catchline: Definitions.


title: RCW 32.04.022

text:
The word "mortgage" as used in this title includes deed of trust.
[ 1969 c 55 s 13.]

catchline: "Mortgage" includes deed of trust.


title: RCW 32.04.025

text:
The words "real estate" and "real property" as used in this title shall include apartments or other portions, however designated, of horizontal property regimes, or a condominium interest in property, as may be created under any laws now in existence or hereafter enacted. A mutual savings bank may do any act necessary or appropriate in connection with its interest in or ownership of any portion of a horizontal property regime or condominium.
[ 1963 c 176 s 10.]
Notes:
Horizontal property regimes: Chapter 64.32 RCW.

catchline: Powers as to horizontal property regimes or condominiums.


title: RCW 32.04.030

text:
(1) A savings bank may not, without the written approval of the director, establish and operate branches in any place.
(2) A savings bank headquartered in this state desiring to establish a branch shall file a written application with the director, who shall approve or disapprove the application.
(3) The director's approval shall be conditioned on a finding that the savings bank has a satisfactory record of compliance with applicable laws and has a satisfactory financial condition. In making such findings, the director may rely on an application in the form filed with the federal deposit insurance corporation pursuant to 12 U.S.C. Sec. 1828(d). If the application for a branch is not approved, the savings bank shall have the right to appeal in the same manner and within the same time as provided by RCW 32.08.050 and 32.08.060. The savings bank when delivering the application to the director shall transmit to the director a check in an amount established by rule to cover the expense of the investigation. A savings bank headquartered in this state shall not move its headquarters or any branch more than two miles from its existing location without prior approval of the director. On or before the date on which it opens any office at which it will transact business in any state, territory, province, or other jurisdiction, a savings bank shall give written notice to the director of the location of this office. No such notice shall become effective until it has been delivered to the director.
(4) The board of trustees of a savings bank, after notice to the director, may discontinue the operation of a branch. The savings bank shall keep the director informed in the matter and shall notify the director of the date operation of the branch is discontinued.
(5) A savings bank that is headquartered in this state and is operating branches in another state, territory, province, or other jurisdiction may provide copies of state examination reports and reports of condition of the savings bank to the regulator having oversight responsibility with regard to its operations in that other jurisdiction, including the regulator of savings associations in the event such a savings bank is transacting savings and loan business pursuant to RCW 32.08.142 in that other jurisdiction.
(6) No savings bank headquartered in another state may establish, or acquire pursuant to RCW 32.32.500, and operate branches as a savings bank or foreign savings association in any place within this state unless:
(a) The savings bank has filed with the director an agreement to comply with the requirements of *RCW 30.38.040 for periodic reports by the savings bank or by the appropriate state superintendent or equivalent regulator of the savings bank under the laws of the state in which the savings bank is incorporated, unless the laws expressly require the provision of all the reports to the director;
(b) The savings bank has filed with the director (i) a duly executed instrument in writing, by its terms of indefinite duration and irrevocable, appointing the director and his or her successors its true and lawful attorney, upon whom all process in any action or proceeding against it in a cause of action arising out of business transacted by such savings bank in this state, may be served with the same force and effect as if it were a domestic corporation and had been lawfully served with process within the state, and (ii) a written certificate of designation, which may be changed from time to time by the filing of a new certificate of designation, specifying the name and address of the officer, agent, or other person to whom such process shall be forwarded by the director;
(c) The savings bank has supplied the director with such information as he or she shall require by rule, not to exceed the information on which the director may rely in approving a branch application pursuant to this section by a savings bank headquartered in this state; and
(d) The out-of-state savings bank would be permitted to establish or acquire and maintain branches in Washington state if it were chartered as a savings bank under this title.
[ 2013 c 76 s 22; 2005 c 348 s 4; 1996 c 2 s 21. Prior: 1994 c 256 s 93; 1994 c 92 s 294; 1985 c 56 s 2; 1955 c 80 s 1; 1955 c 13 s 32.04.030; prior: 1933 c 143 s 1; 1925 ex.s. c 86 s 10; 1915 c 175 s 15; RRS s 3344.]
Notes:
*Reviser's note: RCW 30.38.040 was recodified as RCW 30A.38.040 pursuant to 2014 c 37 s 4, effective January 5, 2015.
Effective date—2005 c 348: See note following RCW 30A.38.005.
Findings—Construction—1994 c 256: See RCW 43.320.007.


title: RCW 32.04.035

text:
On or before the date on which a mutual savings bank enters into any agency agreement authorizing another entity, as agent of the mutual savings bank, to receive deposits or renew time deposits, the mutual savings bank shall give written notice to the director of the existence of the agency agreement. The notice is not effective until it has been delivered to the office of the director.
[ 1996 c 2 s 22.]

catchline: Agency agreements—Written notice to director.


title: RCW 32.04.050

text:
A savings bank shall render to the director, in such form as he or she shall prescribe, at least three regular reports each year exhibiting its resources and liabilities as of such dates as the director shall designate, which shall be the dates designated by the comptroller of the currency of the United States for reports of national banking associations. Every such report, in a condensed form to be prescribed by the director, shall be published once in a newspaper of general circulation, published in the place where the bank is located. A savings bank shall also make such special reports as the director shall call for. A regular report shall be filed with the director within thirty days and proof of the publication thereof within forty days from the date of the issuance of the call for the report. A special report shall be filed within such time as the director shall indicate in the call therefor. A savings bank that fails to file within the prescribed time any report required by this section or proof of the publication of any report required to be published shall be subject to a penalty to the state of fifty dollars for each day's delay, recoverable by a civil action brought by the attorney general in the name of the state.
[ 1994 c 92 s 296; 1977 ex.s. c 241 s 1; 1955 c 13 s 32.04.050. Prior: 1925 ex.s. c 86 s 13; 1915 c 175 s 39; RRS s 3368a.]

catchline: Reports.


title: RCW 32.04.070

text:
Copies from the records, books, and accounts of a savings bank and its holding company shall be competent evidence in all cases, equal with originals thereof, if there is annexed to such copies an affidavit taken before a notary public or clerk of a court under seal, stating that the affiant is the officer of the savings bank or holding company having charge of the original records, and that the copy is true and correct and is full so far as the same relates to the subject matter therein mentioned.
[ 2010 c 88 s 40; 1955 c 13 s 32.04.070. Prior: 1915 c 175 s 47; RRS s 3376.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.

catchline: Certified copies of records as evidence.


title: RCW 32.04.080

text:
A mutual savings bank may provide for pensions or retirement benefits for its disabled or superannuated employees or health insurance benefits for its employees and may pay a part or all of the cost of providing such pensions or benefits in accordance with a plan adopted by its board of trustees or a board committee, none of whose members is an officer of the bank. The board of trustees of a savings bank or such a committee of the board may set aside from current earnings reserves in such amounts as the board or the committee shall deem wise to provide for the payment of future pensions or benefits.
[ 1999 c 14 s 14. Prior: 1994 c 256 s 95; 1994 c 92 s 297; 1955 c 80 s 2; 1955 c 13 s 32.04.080; prior: 1949 c 119 s 1; 1937 c 64 s 2; 1935 c 87 s 1; Rem. Supp. 1949 s 3366-1.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.

catchline: Employees' pension, retirement, or health insurance benefits—Payment.


title: RCW 32.04.082

text:
With respect to pension payments or retirement or health insurance benefits payable by a mutual savings bank to any employee heretofore or hereafter retired, such bank may waive all or any part of any offsets thereto attributable to social security benefits receivable by such employee.
[ 1999 c 14 s 15; 1957 c 80 s 7.]

catchline: Pension, retirement, or health insurance benefits—Waiver by bank of offsets attributable to social security.


title: RCW 32.04.085

text:
Any pension payment or retirement or health insurance benefits payable by a mutual savings bank to a former officer or employee, or to a person or persons entitled thereto by virtue of service performed by such officer or employee, in the discretion of a majority of all the trustees of such bank, may be supplemented from time to time. The board of trustees of a savings bank or a board committee, none of whose members is an officer of the bank, may set aside from current earnings, reserves in such amounts as the board or the committee shall deem appropriate to provide for the payments of future supplemental payments.
[ 1999 c 14 s 16. Prior: 1994 c 256 s 96; 1994 c 92 s 298; 1971 ex.s. c 222 s 1.]
Notes:
Findings—Construction—1994 c 256: See RCW 43.320.007.
Severability—1971 ex.s. c 222: "If any provision of this 1971 amendatory 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." [ 1971 ex.s. c 222 s 9.]

catchline: Pension, retirement, or health insurance benefits—Supplementation.


title: RCW 32.04.100

text:
Every person who knowingly subscribes to or makes or causes to be made any false statement or false entry in the books of any savings bank or its holding company, or knowingly subscribes to or exhibits any false or fictitious security, document or paper, with the intent to deceive any person authorized to examine into the affairs of any savings bank or its holding company, or makes or publishes any false statement of the amount of the assets or liabilities of any such savings bank or its holding company is guilty of a class B felony punishable according to chapter 9A.20 RCW.
[ 2010 c 88 s 41; 2003 c 53 s 194; 1955 c 13 s 32.04.100. Prior: 1931 c 132 s 11; RRS s 3379b.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.

catchline: Penalty for falsification.


title: RCW 32.04.110

text:
Every board trustee or director, officer, employee, or agent of any savings bank or its holding company who for the purpose of concealing any fact suppresses any evidence against himself or herself, or against any other person, or who abstracts, removes, mutilates, destroys, or secretes any paper, book, or record of any savings bank or its holding company, or of the director, or anyone connected with his or her office is guilty of a class B felony punishable according to chapter 9A.20 RCW.
[ 2010 c 88 s 42; 2003 c 53 s 195; 1994 c 92 s 299; 1955 c 13 s 32.04.110. Prior: 1931 c 132 s 12; RRS s 3379c.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.

catchline: Penalty for concealing or destroying evidence.


title: RCW 32.04.120

text:
The provisions of RCW 9.24.050, 9.24.040 and 9.24.030 shall apply to the corporations authorized under this title.
[ 1955 c 13 s 32.04.120. Prior: 1915 c 175 s 50; RRS s 3379.]

catchline: Specific penalties invoked.


title: RCW 32.04.130

text:
Any person who does anything forbidden by chapter 32.04, 32.08, 32.12, 32.16 or 32.24 RCW of this title for which a penalty is not provided in this title, or in some other law of the state, shall be guilty of a gross misdemeanor and be punished accordingly.
[ 1955 c 13 s 32.04.130. Prior: 1915 c 175 s 51; RRS s 3380.]

catchline: General penalty.


title: RCW 32.04.170

text: See chapter 33.44 RCW.

catchline: Conversion to mutual savings bank of savings and loan association.


title: RCW 32.04.190

text: See chapter 30A.56 RCW.

catchline: Bank stabilization act.


title: RCW 32.04.200

text: See chapter 30A.36 RCW.

catchline: Capital notes or debentures.


title: RCW 32.04.211

text:
(1) The director, assistant director, or an examiner shall visit each savings bank at least once every eighteen months, and oftener if necessary, or as otherwise required by the rules and interpretations of applicable federal banking examination authorities, for the purpose of making a full investigation into the condition of such corporation, and for that purpose they are hereby empowered to administer oaths and to examine under oath any director, officer, employee, or agent of such corporation.
(2) The director may make such other full or partial examinations as deemed necessary and may examine any holding company that owns any portion of a savings bank chartered by the state of Washington and obtain reports of condition for any holding company that owns any portion of a savings bank chartered by the state of Washington.
(3) The director may visit and examine into the affairs of any nonpublicly held corporation in which the savings bank or its holding company has an investment or any publicly held corporation the capital stock of which is controlled by the savings bank or its holding company; may appraise and revalue such corporations' investments and securities; and shall have full access to all the books, records, papers, securities, correspondence, bank accounts, and other papers of such corporations for such purposes.
(4) Any willful false swearing in any examination is perjury in the second degree.
(5) The director may enter into cooperative and reciprocal agreements with the bank regulatory authorities of the United States, any state, the District of Columbia, or any trust territory of the United States for the periodic examination of domestic savings banks or holding companies owning banking institutions in other states, the District of Columbia, or trust territories, and subsidiaries of such domestic savings banks and holding companies, or of out-of-state holding companies owning a savings bank the principal operations of which are conducted in this state.
(6) The director may, in his or her discretion, accept in lieu of the examinations required in this section the examinations and reports conducted, as applicable, at the direction of the board of governors of the federal reserve system, the federal office of thrift supervision, the federal deposit insurance corporation, any successor federal thrift regulator or thrift holding company regulator, or other authorities, domestic, foreign, or alien.
(7) The director may enter into joint actions with other regulatory bodies having concurrent jurisdiction or may enter into such actions independently to carry out his or her responsibilities under this title and assure compliance with the laws of this state.
[ 2010 c 88 s 43; 1994 c 92 s 300; 1989 c 180 s 4.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.

catchline: Examinations directed—Cooperative agreements and actions.


title: RCW 32.04.220

text:
(1) All examination reports and all information obtained by the director and the director's staff in conducting examinations of savings banks, and information obtained by the director and the director's staff from other state or federal bank regulatory authorities with whom the director has entered into agreements pursuant to RCW 32.04.211, and information obtained by the director and the director's staff relating to examination and supervision of holding companies owning a savings bank in this state or subsidiaries of such holding companies, is confidential and privileged information and shall not be made public or otherwise disclosed to any person, firm, corporation, agency, association, governmental body, or other entity.
(2) Subsection (1) of this section notwithstanding, the director may furnish all or any part of examination reports, work papers, final orders, or other information obtained in the conduct of an examination or investigation prepared by the director's office to:
(a) Federal agencies empowered to examine savings banks;
(b) Bank regulatory authorities with whom the director has entered into agreements pursuant to RCW 32.04.211, and other bank regulatory authorities who are the primary regulatory authority or insurer of accounts for a holding company owning a savings bank the principal operations of which are conducted in this state or a subsidiary of such holding company; provided that the director shall first find that the reports of examination to be furnished shall receive protection from disclosure comparable to that accorded by this section;
(c) Officials empowered to investigate criminal charges subject to legal process, valid search warrant, or subpoena. If the director furnishes any examination report to officials empowered to investigate criminal charges, the director may only furnish that part of the report which is necessary and pertinent to the investigation, and the director may do this only after notifying the affected savings bank and any customer of the savings bank who is named in that part of the report of the order to furnish the part of the examination report unless the officials requesting the report first obtain a waiver of the notice requirement from a court of competent jurisdiction for good cause;
(d) The examined savings bank or holding company thereof;
(e) The attorney general in his or her role as legal advisor to the director;
(f) Liquidating agents of a distressed savings bank;
(g) A person or organization officially connected with the savings bank as officer, director, attorney, auditor, or independent attorney or independent auditor;
(h) The Washington public deposit protection commission as provided by RCW 39.58.105;
(i) Organizations insuring or guaranteeing the shares of, or deposits in, the savings bank; or
(j) Other persons as the director may determine necessary to protect the public interest and confidence.
(3) All examination reports, work papers, final orders, and other information obtained in the conduct of an examination or investigation furnished under subsections (2) and (4) of this section shall remain the property of the department of financial institutions, and be confidential, and no person, agency, or authority to whom reports are furnished or any officer, director, or employee thereof shall disclose or make public any of the reports or any information contained therein except in published statistical material that does not disclose the affairs of any individual or corporation: PROVIDED, That nothing herein shall prevent the use in a criminal prosecution of reports furnished under subsection (2) of this section.
(4) The examination report made by the department of financial institutions is designed for use in the supervision of the savings bank, and the director may furnish a copy of the report to the savings bank examined. The report shall remain the property of the director and will be furnished to the savings bank solely for its confidential use. Under no circumstances shall the savings bank or any of its trustees, officers, or employees disclose or make public in any manner the report or any portion thereof, to any person or organization not connected with the savings bank as officer, director, employee, attorney, auditor, or candidate for executive office with the bank. The savings bank may also, after execution of an agreement not to disclose information in the report, disclose the report or relevant portions thereof to a party proposing to acquire or merge with the savings bank.
(5) Examination reports and information obtained by the director and the director's staff in conducting examinations, or from other state and federal bank regulatory authorities with whom the director has entered into agreements pursuant to RCW 32.04.211, or relating to examination and supervision of holding companies owning a savings bank the principal operations of which are conducted in this state or a subsidiary of such holding company, shall not be subject to public disclosure under chapter 42.56 RCW.
(6) In any civil action in which the reports are sought to be discovered or used as evidence, any party may, upon notice to the director, petition the court for an in camera review of the report. The court may permit discovery and introduction of only those portions of the report which are relevant and otherwise unobtainable by the requesting party. This subsection shall not apply to an action brought or defended by the director.
(7) This section shall not apply to investigation reports prepared by the director and the director's staff concerning an application for a new savings bank or an application for a branch of a savings bank: PROVIDED, That the director may adopt rules making confidential portions of the reports if in the director's opinion the public disclosure of the portions of the report would impair the ability to obtain the information which the director considers necessary to fully evaluate the application.
(8) Notwithstanding any other provision of this section or other applicable law, a savings bank or holding company shall not be in violation of any provision of this section on account of its compliance with required reporting to the federal securities and exchange commission, including the disclosure of any order of the director.
(9) Every person who violates any provision of this section shall be guilty of a gross misdemeanor.
[ 2010 c 88 s 44; 2005 c 274 s 258; 1994 c 92 s 301; 1989 c 180 s 5; 1977 ex.s. c 245 s 2.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1977 ex.s. c 245: See note following RCW 30A.04.075.
Examination reports and information from financial institutions exempt: RCW 42.56.400.

catchline: Examination reports and other information—Confidential—Privileged—Penalty.


title: RCW 32.04.250

text:
(1) The director may issue and serve a notice of charges upon a savings bank when, in the opinion of the director:
(a) It has engaged in an unsafe and unsound practice in conducting or in relation to its business;
(b) It has violated any provision of RCW 32.04.015; or
(c) It is planning, attempting, or currently conducting any act prohibited in (a) or (b) of this subsection.
(2) The director may issue and serve a notice of charges upon a holding company when, in the opinion of the director:
(a) The holding company has committed a violation of RCW 32.04.015(2);
(b) The conduct of the holding company has resulted in an unsafe and unsound practice at the savings bank or a violation of any provision of RCW 32.04.015 by the savings bank; or
(c) The holding company is planning, attempting, or currently conducting any act prohibited in (a) or (b) of this subsection.
(3) The notice shall contain a statement of the facts constituting the alleged violation or violations or the practice or practices and shall fix a time and place at which a hearing will be held to determine whether an order to cease and desist should issue against the savings bank or holding company. The hearing shall be set not earlier than ten days or later than thirty days after service of the notice, unless a later date is set by the director at the request of the savings bank or holding company.
(4) Unless the savings bank or holding company shall appear at the hearing by a duly authorized representative, it shall be deemed to have consented to the issuance of the cease and desist order. In the event of this consent or if upon the record made at the hearing the director finds that any violation or practice specified in the notice of charges has been established, the director may issue and serve upon the savings bank or holding company an order to cease and desist from the violation or practice. The order may require the savings bank or holding company, and its trustees, officers, employees, and agents, to cease and desist from the violation or practice and may require the savings bank or holding company to take affirmative action to correct the conditions resulting from the violation or practice.
(5) A cease and desist order shall become effective at the expiration of ten days after the service of the order upon the savings bank or holding company concerned, except that a cease and desist order issued upon consent shall become effective at the time specified in the order and shall remain effective as provided therein, unless it is stayed, modified, terminated, or set aside by action of the director or a reviewing court.
[ 2010 c 88 s 45; 1994 c 92 s 302; 1979 c 46 s 1.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1979 c 46: "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." [ 1979 c 46 s 11.]

catchline: Notice of charges—Reasons for issuance—Grounds—Contents of notice—Hearing—Cease and desist orders.


title: RCW 32.04.260

text:
(1) The director may also issue a temporary order requiring a savings bank or its holding company, or both, to cease and desist from any action or omission, as specified in RCW 32.04.250, or its continuation, which the director has determined:
(a) Constitutes an unsafe and unsound practice, or a material violation of RCW 32.04.015 affecting the savings bank;
(b) Has resulted in the savings bank being less than adequately capitalized; or
(c) Is likely to cause insolvency or substantial dissipation of assets or earnings of the savings bank, or to otherwise seriously prejudice the interests of the savings bank's depositors.
(2) The order is effective upon service on the savings bank or holding company, and remains effective unless set aside, limited, or suspended by the superior court in proceedings under RCW 32.04.270 pending the completion of the administrative proceedings under the notice and until such time as the director dismisses the charges specified in the notice or until the effective date of a cease and desist order issued against the savings bank or holding company under RCW 32.04.250.
[ 2010 c 88 s 46; 1994 c 92 s 303; 1979 c 46 s 2.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1979 c 46: See note following RCW 32.04.250.

catchline: Temporary cease and desist orders—Reasons for issuance.


title: RCW 32.04.270

text:
(1) Within ten days after a savings bank or holding company has been served with a temporary cease and desist order, the savings bank or holding company may apply to the superior court in the county of its principal place of business for an injunction setting aside, limiting, or suspending the order pending the completion of the administrative proceedings pursuant to the notice served under RCW 32.04.250.
(2) The superior court shall have jurisdiction to issue the injunction.
[ 2010 c 88 s 47; 1979 c 46 s 3.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1979 c 46: See note following RCW 32.04.250.

catchline: Temporary cease and desist order—Injunction to set aside, limit, or suspend temporary order.


title: RCW 32.04.280

text:
In the case of a violation or threatened violation of a temporary cease and desist order issued under RCW 32.04.260, the director may apply to the superior court of the county of the principal place of business of the mutual savings bank for an injunction to enforce the order. The court shall issue an injunction if it determines there has been a violation or threatened violation.
[ 1994 c 92 s 304; 1979 c 46 s 4.]
Notes:
Severability—1979 c 46: See note following RCW 32.04.250.

catchline: Violation of temporary cease and desist order—Injunction to enforce order.


title: RCW 32.04.290

text:
(1) Any administrative hearing provided in RCW 32.04.250 or 32.16.093 must be conducted in accordance with chapter 34.05 RCW and held at the place designated by the director, and may be conducted by the department. The hearing shall be private unless the director determines that a public hearing is necessary to protect the public interest after fully considering the views of the party afforded the hearing.
(2) Within sixty days after the hearing, the director shall render a decision which shall include findings of fact upon which the decision is based and shall issue and serve upon each party to the proceeding an order or orders consistent with RCW 32.04.250 or 32.16.093, as the case may be.
(3) Unless a petition for review is timely filed in the superior court of the county of the principal place of business of the affected mutual savings bank under subsection (5) of this section, and until the record in the proceeding has been filed as provided therein, the director may at any time modify, terminate, or set aside any order upon such notice and in such manner as he or she shall deem proper. Upon filing the record, the director may modify, terminate, or set aside any order only with permission of the court.
(4) The judicial review provided in this section shall be exclusive for orders issued under RCW 32.04.250 and 32.16.093.
(5) Any party to the proceeding or any person required by an order, temporary order, or injunction issued under RCW 32.04.250, 32.04.260, 32.04.280, or 32.16.093 to refrain from any of the violations or practices stated therein may obtain a review of any order served under subsection (1) of this section other than one issued upon consent by filing in the superior court of the county of the principal place of business of the affected mutual savings bank within ten days after the date of service of the order a written petition praying that the order of the director be modified, terminated, or set aside. A copy of the petition shall be immediately served upon the director and the director shall then file in the court the record of the proceeding. The court shall have jurisdiction upon the filing of the petition, which jurisdiction shall become exclusive upon the filing of the record, to affirm, modify, terminate, or set aside in whole or in part the order of the director except that the director may modify, terminate, or set aside an order with the permission of the court. The judgment and decree of the court shall be final, except that it shall be subject to appellate review under the rules of court.
(6) The commencement of proceedings for judicial review under subsection (5) of this section shall not operate as a stay of any order issued by the director unless specifically ordered by the court.
(7) Service of any notice or order required to be served under RCW 32.04.250, 32.04.260, or 32.16.093, or under RCW 32.16.090, as now or hereafter amended, shall be accomplished in the same manner as required for the service of process in civil actions in superior courts of this state.
[ 2010 c 88 s 48; 1994 c 92 s 305; 1979 c 46 s 5.]
Notes:
Effective date—2010 c 88: See RCW 32.50.900.
Severability—1979 c 46: See note following RCW 32.04.250.

catchline: Administrative hearing provided for in RCW 32.04.250 or 32.16.093—Procedure—Order—Judicial review.


title: RCW 32.04.300

text:
The director may apply to the superior court of the county of the principal place of business of the mutual savings bank affected for the enforcement of any effective and outstanding order issued under RCW 32.04.250 or 32.16.093, and the court shall have jurisdiction to order compliance therewith.
No court shall have jurisdiction to affect by injunction or otherwise the issuance or enforcement of any such order, or to review, modify, suspend, terminate, or set aside any such order, except as provided in RCW 32.04.270, 32.04.280, and 32.04.290.
[ 1994 c 92 s 306; 1979 c 46 s 6.]
Notes:
Severability—1979 c 46: See note following RCW 32.04.250.

catchline: Jurisdiction of courts as to cease and desist orders, orders to remove trustee, officer, or employee, etc.


title: RCW 32.04.310

text:
Chapter 19.174 RCW applies to automated teller machines and night depositories regulated under this title.
[ 1993 c 324 s 12.]
Notes:
Effective date—1993 c 324: See RCW 19.174.900.

catchline: Automated teller machines and night depositories security.


title: RCW 32.04.320

text:
The director or the director's designee may take such action as provided for in this title to enforce, investigate, or examine persons covered by chapter 19.144 RCW.
[ 2008 c 108 s 18.]
Notes:
Findings—2008 c 108: See RCW 19.144.005.

catchline: Director—Powers under chapter 19.144 RCW.


title: RCW 32.08.010

text:
When authorized by the director, as hereinafter provided, not less than nine nor more than thirty persons may form a corporation to be known as a "mutual savings bank." Such persons must be citizens of the United States; at least four-fifths of them must be residents of this state, and at least two-thirds of them must be residents of the county where the bank is to be located and its business transacted. They shall subscribe an incorporation certificate in triplicate which shall specifically state:
(1) The name by which the savings bank is to be known, which name shall include the words "mutual savings bank";
(2) The place where the bank is to be located, and its business transacted, naming the city or town and county;
(3) The name, occupation, residence, and post office address of each incorporator;
(4) The sums which each incorporator will contribute in cash to the initial guaranty fund, and to the expense fund respectively, as provided in RCW 32.08.090 and 32.08.100;
(5) Any provision the incorporators elect to so set forth which is permitted by RCW 23B.17.030;
(6) Any other provision the incorporators elect to so set forth which is not inconsistent with this chapter;
(7) A declaration that each incorporator will accept the responsibilities and faithfully discharge the duties of a trustee of the savings bank, and is free from all the disqualifications specified in RCW 32.16.010.
[ 1994 c 256 s 97; 1994 c 92 s 307; 1955 c 13 s 32.08.010. Prior: 1915 c 175 s 1; 1905 c 129 s 2; RRS s 3313.]
Notes:
Reviser's note: This section was amended by 1994 c 92 s 307 and by 1994 c 256 s 97, 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.


title: RCW 32.08.020

text:
At the time of executing the incorporation certificate, the proposed incorporators shall sign a notice of intention to organize the mutual savings bank, which shall specify their names, the name of the proposed corporation, and its location as set forth in the incorporation certificate. The original of such notice shall be filed in the office of the director within sixty days after the date of its execution, and a copy thereof shall be published at least once a week for four successive weeks in a newspaper designated by the director, the publication to be commenced within thirty days after such designation. At least fifteen days before the incorporation certificate is submitted to the director for examination, as provided in RCW 32.08.030, a copy of such notice shall be served upon each savings bank doing business in the city or town named in the incorporation certificate, by mailing such copy (postage prepaid) to such bank.
[ 1994 c 92 s 308; 1955 c 13 s 32.08.020. Prior: 1915 c 175 s 2; RRS s 3314.]

catchline: Notice of intention.


title: RCW 32.08.025

text:
(1) Notwithstanding any other provision of this title, if the conditions of this section are met, a savings bank, or a holding company of a savings bank, may be organized as, or convert to, a limited liability company under the Washington limited liability company act, chapter 25.15 RCW. As used in this section, "savings bank" includes an applicant to become a savings bank or holding company of a savings bank, and "holding company" means a holding company of a savings bank.
(2)(a) Before a savings bank or holding company may organize as, or convert to, a limited liability company, the savings bank or holding company must obtain approval of the director.
(b)(i) To obtain approval under this section from the director, the savings bank or holding company must file a request for approval with the director at least ninety days before the day on which the savings bank or holding company becomes a limited liability company.
(ii) If the director does not disapprove the request for approval within ninety days from the day on which the director receives the request, the request is considered approved.
(iii) When taking action on a request for approval filed under this section, the director may:
(A) Approve the request;
(B) Approve the request subject to terms and conditions the director considers necessary; or
(C) Disapprove the request.
(3) To approve a request for approval, the director must find that the savings bank or holding company:
(a) Will operate in a safe and sound manner; and
(b) Has the following characteristics:
(i) The certificate of formation and limited liability company require or set forth that the duration of the limited liability company is perpetual;
(ii) The savings bank or holding company is not otherwise subject to automatic termination, dissolution, or suspension upon the happening of some event other than the passage of time;
(iii) The exclusive authority to manage the savings bank or holding company is vested in a board of managers or directors that:
(A) Is elected or appointed by the owners;
(B) Is not required to have owners of the savings bank or holding company included on the board;
(C) Possesses adequate independence and authority to supervise the operation of the savings bank or holding company; and
(D) Operates with substantially the same rights, powers, privileges, duties, and responsibilities as the board of directors of a corporation;
(iv) Neither state law, nor the savings bank's or holding company's operating agreement, bylaws, or other organizational documents provide that an owner of the savings bank or holding company is liable for the debts, liabilities, and obligations of the savings bank or holding company in excess of the amount of the owner's investment;
(v) Neither state law, nor the savings bank's or holding company's operating agreement, bylaws, or other organizational documents require the consent of any other owner of the savings bank or holding company in order for any owner to transfer an ownership interest in the savings bank or holding company, including voting rights;
(vi) The savings bank or holding company is able to obtain new investment funding if needed to maintain adequate capital;
(vii) The savings bank or holding company is able to comply with all legal and regulatory requirements for a federally insured depository bank, or holding company of a federally insured depository bank, under applicable federal and state law; and
(viii) A savings bank or holding company that is organized as a limited liability company shall maintain the characteristics listed in this subsection (3)(b) during such time as it is authorized to conduct business under this title as a limited liability company.
(4)(a) All rights, privileges, powers, duties, and obligations of a savings bank or holding company, that is organized as a limited liability company, and its members and managers are governed by the Washington limited liability company act, chapter 25.15 RCW, except:
(i) To the extent chapter 25.15 RCW is in conflict with federal law or regulation respecting the organization of a federally insured depository institution as a limited liability company, such federal law or regulation supersedes the conflicting provisions contained in chapter 25.15 RCW in relation to a savings bank or holding company organized as a limited liability company pursuant to this section; and
(ii) Without limitation, the following are inapplicable to a savings bank or holding company organized as a limited liability company:
(A) Permitting automatic dissolution or suspension of a limited liability company as set forth in RCW 25.15.265(1), pursuant to a statement of limited duration which, though impermissible under subsection (3)(b)(i) of this section, has been provided for in a certificate of formation;
(B) Permitting automatic dissolution or suspension of a limited liability company, pursuant to the limited liability company agreement, as set forth in RCW 25.15.265(2);
(C) Permitting dissolution of the limited liability company agreement based upon agreement of all the members, as set forth in RCW 25.15.265(3);
(D) Permitting dissociation of all the members of the limited liability company, as set forth in RCW 25.15.265(4); and
(E) Permitting automatic dissolution or suspension of a limited liability company, pursuant to operation of law, as otherwise set forth in chapter 25.15 RCW.
(b) Notwithstanding (a) of this subsection:
(i) For purposes of transferring a member's interests in the savings bank or holding company, a member's interest in the savings bank or holding company is treated like a share of stock in a corporation; and
(ii) If a member's interest in the savings bank or holding company is transferred voluntarily or involuntarily to another person, the person who receives the member's interest obtains the member's entire rights associated with the member's interest in the savings bank or holding company including all economic rights and all voting rights.
(c) A savings bank or holding company may not by agreement or otherwise change the application of (a) of this subsection to the savings bank or holding company.
(5)(a) Notwithstanding any provision of chapter 25.15 RCW or this section to the contrary, all voting members remain liable and responsible as fiduciaries of a savings bank or holding company organized as a limited liability company, regardless of resignation, dissociation, or disqualification, to the same extent that directors of a savings bank or holding company organized as a corporation would be or remain liable or responsible to the department and applicable federal banking regulators; and
(b) If death, incapacity, or disqualification of all members of the limited liability company would result in a complete dissociation of all members, then the savings bank or holding company, or both, as applicable is deemed nonetheless to remain in existence for purposes of the department or an applicable federal regulator, or both, having standing under RCW 32.24.090 or applicable federal law, or both, to exercise the powers and authorities of a receiver for the savings bank or holding company.
(6) For the purposes of this section, and unless the context clearly requires otherwise, for the purpose of applying chapter 25.15 RCW to a savings bank or holding company organized as a limited liability company:
(a) "Articles of incorporation" includes a limited liability company's certificate of formation, as that term is used in RCW 25.15.006 and 25.15.071, and a limited liability company agreement as that term is used in RCW 25.15.006;
(b) "Board of directors" includes one or more persons who have, with respect to a savings bank or holding company described in subsection (1) of this section, authority that is substantially similar to that of a board of directors of a corporation;
(c) "Bylaws" includes a limited liability company agreement as that term is defined in RCW 25.15.006;
(d) "Corporation" includes a limited liability company organized under chapter 25.15 RCW;
(e) "Director" includes any of the following of a limited liability company:
(i) A manager;
(ii) A director; or
(iii) Other person who has, with respect to the savings bank or holding company described in subsection (1) of this section, authority substantially similar to that of a director of a corporation;
(f) "Dividend" includes distributions made by a limited liability company under RCW 25.15.211;
(g) "Incorporator" includes the person or persons executing the certificate of formation as provided in RCW 25.15.086;
(h) "Officer" includes any of the following of a savings bank or holding company:
(i) An officer; or
(ii) Other person who has, with respect to the savings bank or holding company, authority substantially similar to that of an officer of a corporation;
(i) "Security," "shares," or "stock" of a corporation includes a membership interest in a limited liability company and any certificate or other evidence of an ownership interest in a limited liability company; and
(j) "Stockholder" or "shareholder" includes an owner of an equity interest in a savings bank or holding company, including a member as defined in RCW 25.15.006 and 25.15.116.
[ 2015 c 188 s 120; 2006 c 48 s 3.]
Notes:
Effective date—2015 c 188: See RCW 25.15.903.

catchline: Limited liability company—Organization or conversion—Approval of director—Conditions—Application of chapter 25.15 RCW—Definitions.


title: RCW 32.08.030

text:
After the lapse of at least twenty-eight days from the date of the first due publication of the notice of intention to incorporate, and within ten days after the date of the last publication thereof, the incorporation certificate executed in triplicate shall be submitted for examination to the director at his or her office in Olympia, with affidavits showing due publication and service of the notice of intention to organize prescribed in RCW 32.08.020.
[ 1994 c 92 s 309; 1955 c 13 s 32.08.030. Prior: 1915 c 175 s 3; RRS s 3315.]

catchline: Submission of certificate—Proof of service of notice.


title: RCW 32.08.040

text:
When any such certificate has been filed for examination the director shall thereupon 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 character, responsibility, and general fitness of the person or persons named in such certificate are such as to command confidence and warrant belief that the business of the proposed bank will be honestly and efficiently conducted in accordance with the intent and purpose of this title, and whether the public convenience and advantage will be promoted by allowing such proposed bank to be incorporated and engage in business, and whether greater convenience and access to a savings bank would be afforded to any considerable number of depositors by opening a mutual savings bank in the place designated, whether the population in the neighborhood of such place, and in the surrounding country, affords a reasonable promise of adequate support for the proposed bank, and whether the contributions to the initial guaranty fund and expense fund have been paid in cash. After the director has satisfied himself or herself by such investigation whether it is expedient and desirable to permit such proposed bank to be incorporated and engage in business, he or she shall within sixty days after the date of the filing of the certificate for examination indorse upon each of the triplicates thereof over his or her official signature the word "approved" or the word "refused," with the date of such indorsement. In case of refusal he or she shall forthwith return one of the triplicates so indorsed to the proposed incorporators from whom the certificate was received.
[ 1994 c 92 s 310; 1955 c 13 s 32.08.040. Prior: 1915 c 175 s 4, part; RRS s 3316, part.]

catchline: Examination and action by director.


title: RCW 32.08.050

text:
From the director's refusal to issue a certificate of authorization, the applicants or a majority of them, may within thirty days from the date of the filing of the certificate of refusal with the secretary of state, appeal to a board of appeal composed of the governor or the governor's designee, the attorney general and the director by filing in the office of the director a notice that they appeal to such board from his or her refusal. The procedure upon the appeal shall be such as the board may prescribe, and its determination shall be certified, filed, and recorded in the same manner as the director's, and shall be final.
[ 1994 c 92 s 311; 1979 ex.s. c 57 s 6; 1955 c 13 s 32.08.050. Prior: 1915 c 175 s 4, part; RRS s 3316, part.]

catchline: Appeal from adverse decision.


title: RCW 32.08.060

text:
In case of approval, the director shall forthwith give notice thereof to the proposed incorporators, and file one of the duplicate certificates in his or her own office, and shall transmit the other to the secretary of state. Upon receipt from the proposed incorporators of the same fees as are required for filing and recording other incorporation certificates, the secretary of state shall file the certificate and record the same. Upon the filing of said incorporation certificate in duplicate approved as aforesaid in the offices of the director and the secretary of state, the persons named therein and their successors shall thereupon become and be a corporation, which corporation shall have the powers and be subject to the duties and obligations prescribed in this title and its corporate existence shall be perpetual, unless sooner terminated pursuant to law, but such corporation shall not receive deposits or engage in business until authorized so to do by the director as provided in RCW 32.08.070.
[ 1994 c 92 s 312; 1981 c 302 s 26; 1957 c 80 s 1; 1955 c 13 s 32.08.060. Prior: 1915 c 175 s 4, part; RRS s 3316, part.]
Notes:
Severability—1981 c 302: See note following RCW 19.76.100.

catchline: Procedure upon approval.


title: RCW 32.08.061

text:
A mutual savings bank may amend its incorporation certificate to extend the period of its corporate existence for a further definite time or perpetually by a resolution adopted by a majority vote of its board of trustees. Duplicate copies of the resolution, subscribed and acknowledged by the president and secretary of such bank, shall be filed in the office of the director within thirty days after its adoption. If the director finds that the resolution conforms to law he or she shall, within sixty days after the date of the filing thereof, endorse upon each of the duplicates thereof, over his or her official signature, his or her approval and forthwith give notice thereof to the bank and shall file one of the certificates in his or her own office and shall transmit the other to the secretary of state. Upon receipt from the mutual savings bank of the same fees as are required of general corporations for filing corresponding instruments, the secretary of state shall file the resolution and record the same. Upon the filing of said resolution in duplicate, approved as aforesaid in the offices of the director and the secretary of state, the corporate existence of said bank shall continue for the period set forth in said resolution unless sooner terminated pursuant to law.
[ 1994 c 92 s 313; 1981 c 302 s 27; 1963 c 176 s 1; 1957 c 80 s 8.]
Notes:
Severability—1981 c 302: See note following RCW 19.76.100.

catchline: Extension of period of existence—Procedure.


title: RCW 32.08.070

text:
Before a mutual savings bank shall be authorized to do any business the director shall be satisfied that the corporation has in good faith complied with all the requirements of law and fulfilled all the conditions precedent to commencing business imposed by this title. If satisfied that the corporation has in good faith complied with all the requirements of law, and fulfilled all the conditions precedent to commencing business imposed by this title, the director shall within six months after the date upon which the proposed organization certificate was filed with him or her for examination, but in no case after the expiration of that period, issue under his or her hand and official seal in triplicate an authorization certificate to such corporation. Such authorization certificate shall state that the corporation therein named has complied with all the requirements of law, that it is authorized to transact at the place designated in its certificate of incorporation, the business of a mutual savings bank. One of the triplicate authorization certificates shall be transmitted by the director to the corporation therein named, and the other two authorization certificates shall be filed by the director in the same public offices where the certificate of incorporation is filed, and shall be attached to said incorporation certificate.
[ 1994 c 92 s 314; 1981 c 302 s 28; 1955 c 13 s 32.08.070. Prior: 1915 c 175 s 5; RRS s 3317.]
Notes:
Severability—1981 c 302: See note following RCW 19.76.100.

catchline: Authorization certificate.


title: RCW 32.08.080

text:
Before such corporation shall be authorized to receive deposits or transact business other than the completion of its organization, the director shall be satisfied that:
(1) The incorporators have made the deposit of the initial guaranty fund required by this title;
(2) The incorporators have made the deposit of the expense fund required by RCW 32.08.090 and if the director shall so require, have entered into the agreement or undertaking with him or her and have filed the same and the security therefor as prescribed in said section;
(3) The corporation has transmitted to the director the name, residence, and post office address of each officer of the corporation;
(4) Its certificate of incorporation in triplicate has been filed in the respective public offices designated in this title.
[ 1994 c 92 s 315; 1955 c 13 s 32.08.080. Prior: 1915 c 175 s 6; RRS s 3318.]

catchline: Conditions precedent to reception of deposits.


title: RCW 32.08.090

text:
Before any mutual savings bank shall be authorized to do business, its incorporators shall create an expense fund from which the expense of organizing such bank and its operating expenses may be paid, until such time as its earnings are sufficient to pay its operating expenses in addition to such dividends as may be declared and credited to its depositors from its earnings. The incorporators shall deposit to the credit of such savings bank in cash as an expense fund the sum of five thousand dollars. They shall also enter into such an agreement or undertaking with the director as trustee for the depositors with the savings bank as he or she may require to make such further contributions in cash to the expense fund as may be necessary to pay its operating expenses until such time as it can pay them from its earnings, in addition to such dividends as may be declared and credited to its depositors. Such agreement or undertaking shall fix the maximum liability assumed thereby which shall be a reasonable amount approved by the director and the same shall be secured to his or her satisfaction, which security in his or her discretion may be by a surety bond executed by a domestic or foreign corporation authorized to transact within this state the business of surety. The agreement or undertaking and security shall be filed in the office of the director. Such agreement or undertaking and such security need not be made or furnished unless the director shall require the same. The amounts contributed to the expense fund of said savings bank by the incorporators or trustees shall not constitute a liability of the savings bank except as hereinafter provided.
[ 1994 c 92 s 316; 1955 c 13 s 32.08.090. Prior: 1915 c 175 s 8; RRS s 3320.]

catchline: Expense fund—Agreement to contribute further—Security.


title: RCW 32.08.100

text:
Before any mutual savings bank shall be authorized to do business, its incorporators shall create a guaranty fund for the protection of its depositors against loss on its investments, whether arising from depreciation in the market value of its securities or otherwise:
(1) Such guaranty fund shall consist of payments in cash made by the original incorporators and of all sums credited thereto from the earnings of the savings bank as hereinafter required.
(2) The incorporators shall deposit to the credit of such savings bank in cash as an initial guaranty fund at least five thousand dollars.
(3) Prior to the liquidation of any such savings bank such guaranty fund shall not be in any manner encroached upon, except for losses and the repayment of contributions made by incorporators or trustees as hereinafter provided, until such fund together with undivided profits exceeds twenty-five percent of the amount due depositors.
(4) The amounts contributed to such guaranty fund by the incorporators or trustees shall not constitute a liability of the savings bank, except as hereinafter provided, and any loss sustained by the savings bank in excess of that portion of the guaranty fund created from earnings may be charged against such contributions pro rata.
[ 1955 c 13 s 32.08.100. Prior: 1915 c 175 s 7; RRS s 3319.]

catchline: Guaranty fund.


title: RCW 32.08.110

text:
The contributions of the incorporators, or trustees of any such savings bank under the provisions of RCW 32.08.100, and the sums credited thereto from its net earnings under the provisions of RCW 32.08.120, shall constitute a guaranty fund for the security of its depositors, and shall be held to meet any contingency or loss in its business from depreciation of its securities or otherwise, and for no other purpose except as provided in RCW 32.08.130, and RCW 32.12.090(5).
[ 1955 c 13 s 32.08.110. Prior: 1915 c 175 s 21; RRS s 3350.]

catchline: Guaranty fund—Purpose.


title: RCW 32.08.115

text:
It is hereby recognized that the savings banks of the state of Washington are affected adversely by the uncertainties and ambiguities in the law relating to guaranty funds. It is the express purpose of the legislature in enacting RCW 32.08.116 to clarify that the law permits payment of interest and dividends from the guaranty funds of savings banks and RCW 32.08.116 shall be liberally construed to that end.
[ 1982 c 5 s 1.]

catchline: Guaranty fund—Payment of interest and dividends—Legislative declaration.


title: RCW 32.08.116

text:
A savings bank not having net earnings or undivided profits or other surplus may pay interest and dividends from its guaranty fund upon prior written approval of the director, which approval shall not be withheld unless the director has determined that such payments would place the savings bank in an unsafe and unsound condition.
[ 1994 c 92 s 317; 1982 c 5 s 2.]

catchline: Guaranty fund—Payment of interest and dividends—When authorized.


title: RCW 32.08.120

text:
(1) If at the close of any dividend period the guaranty fund of a savings bank is less than ten percent of the amount due to depositors, there shall be deducted from its net earnings and credited to its guaranty fund not less than five percent of its net earnings for such period.
(2) The balance of its net earnings for such dividend period, plus any earnings from prior accounting periods not previously disbursed and not reserved for losses or other contingencies or required to be maintained in the guaranty fund, shall be available for dividends.
While the trustees of such savings bank are paying its expenses or any portion thereof, the amounts to be credited to its guaranty fund shall be computed at the same percentage upon the total dividends credited to its depositors instead of upon its net earnings. If the guaranty fund accumulated from earnings equals or exceeds ten percent of the amount due to depositors, the minimum dividend shall be four percent, if the net earnings for such period are sufficient therefor.
[ 1955 c 13 s 32.08.120. Prior: 1941 c 15 s 4; 1929 c 123 s 3; 1927 c 184 s 6; 1915 c 175 s 24; Rem. Supp. 1941 s 3353.]

catchline: Guaranty fund—Replenishment—Dividends.


title: RCW 32.08.130

text:
When the portion of the guaranty fund created from earnings amounts to not less than five thousand dollars (including in the case of a savings bank converted from a building and loan or savings and loan association or society the amount of the initial guaranty fund), the board of trustees, with the written consent of the director, may establish a reimbursement fund from which to repay contributors to the expense fund and the initial guaranty fund (excepting the initial guaranty fund in the case of a bank converted from a building and loan or savings and loan association or society), and may transfer to the reimbursement fund any unexpended balance of contributions to the expense fund. At the close of each dividend period the trustees may place to the credit of the reimbursement fund not more than one percent of the net earnings of the bank during that period. Payments from the reimbursement fund may be made from time to time in such amounts as the board of trustees shall determine, and shall be made first to the contributors to the expense fund in proportion to their contributions thereto until they shall have been repaid in full, and then shall be made to the contributors to the guaranty fund in proportion to their contributions thereto until they shall have been repaid in full. In case of the liquidation of the savings bank before the contributions to the expense fund and the initial guaranty fund have been fully repaid as above contemplated, any portion of the contributions not needed for the payment of the expenses of liquidation and the payment of depositors in full shall be paid to the contributors to the expense fund in proportion to their contributions thereto until they have been repaid in full, and then shall be paid to the contributors to the guaranty fund in proportion to their contributions thereto until they have been repaid in full.
[ 1994 c 92 s 318; 1955 c 13 s 32.08.130. Prior: 1945 c 135 s 1; 1927 c 178 s 1; 1915 c 175 s 9; Rem. Supp. 1945 s 3321.]

catchline: Reimbursement fund.