HD40 - The Laws Governing Savings Institutions, the Interstate Activities of Financial Institutions and the Interest Rate Laws of the Commonwealth

  • Published: 1987
  • Author: Joint Subcommittee
  • Enabling Authority: House Joint Resolution 41 (Regular Session, 1986)

Executive Summary:
The joint subcommittee studying the laws governing savings institutions, the interstate activities of financial institutions and the interest rate laws of the Commonwealth was established pursuant to House Joint Resolution No. 30 of the 1984 Session of the General Assembly'. During the 1984 interim the subcommittee studied all three issues and recommended legislation to revise the laws governing the savings institutions and the interstate activities of the savings institutions and to enact statutes regulating interstate banking. Both of those bills were passed by the 1985 Session of the General Assembly and enacted into law. House Document No. 20 printed, January, 1985, is the report of the subcommittee on its work during the I984 interim. The subcommittee recommended in that report that a resolution be passed by the 1985 General Assembly to continue the study of the subcommittee in order that it may further deliberate and consider the revision of the interest rate laws of the Commonwealth and to monitor the interstate activities of the banks and savings institutions of Virginia and to monitor newly revised savings institution statutes. The 1985 General Assembly passed House Joint Resolution No. 217 to continue the study. During the 1985 interim the subcommittee studied the interest rate laws of the Commonwealth and recommended legislation to revise the interest rate statutes. House Document No. 28, printed January, 1986, is the report of the subcommittee's work during the 1985 interim. House Bill No. 400 was introduced in the 1986 General Assembly, but due to its complexity and the issue concerning the regulation of second mortgage lenders the bill was carried over to the 1987 legislative session. House Joint Resolution No. 41 was introduced during the 1986 session to continue the study of the interest rate laws and it was passed by the 1986 General Assembly. The resolution also directed the joint subcommittee to study the credit card situation in Virginia, to consider some sort of regulatory scheme for unsupervised lenders and to study add-on interest rates to determine if they should be abolished.