Title 30A — Title 30A WASHINGTON COMMERCIAL BANK ACT

Chapter 23, Laws of 2024 may be known and cited as the uniform special deposits act.[ 2024 c 23 s 1.]

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.(1) "Account agreement" means an agreement that:(a) Is in a record between a bank and one or more depositors;(b) May have one or more beneficiaries as additional parties; a…

(1) This chapter applies to a special deposit under an account agreement that states the intention of the parties to establish a special deposit governed by this chapter, regardless of whether a party to the account agreement or a transaction related to the special deposit, or th…

(1) The effect of RCW 30A.26.010 through 30A.26.050, 30A.26.070 through 30A.26.100, and 30A.26.130 may not be varied by agreement, except as provided in those sections. Subject to subsection (2) of this section, the effect of RCW 30A.26.060, 30A.26.110, and 30A.26.120 may be vari…

A deposit is a special deposit if it is:(1) A deposit of funds in a bank under an account agreement;(2) For the benefit of at least two beneficiaries, one or more of which may be a depositor;(3) Denominated in a medium of exchange that is currently authorized or adopted by a dome…

(1) A special deposit must serve at least one permissible purpose stated in the account agreement from the time the special deposit is created in the account agreement until termination of the special deposit.(2) If, before termination of the special deposit, the bank or a court …

(1) Unless the account agreement provides otherwise, the bank is obligated to pay a beneficiary if there are sufficient actually and finally collected funds in the balance of the special deposit.(2) Except as provided in subsection (3) of this section, the obligation to pay the b…

(1) Neither a depositor nor a beneficiary has a property interest in a special deposit.(2) Any property interest with respect to a special deposit is only in the right to receive payment if the bank is obligated to pay a beneficiary and not in the special deposit itself. Any prop…

(1) Subject to subsection (2) of this section, creditor process with respect to a special deposit is not enforceable against the bank holding the special deposit.(2) Creditor process is enforceable against the bank holding a special deposit with respect to an amount the bank is o…

A court may enjoin, or grant similar relief that would have the effect of enjoining, a bank from paying a depositor or beneficiary only if payment would constitute a material fraud or facilitate a material fraud with respect to a special deposit.[ 2024 c 23 s 10.]

(1) Except as provided in subsection (2) or (3) of this section, a bank may not exercise a right of recoupment or set off against a special deposit.(2) An account agreement may authorize the bank to debit the special deposit:(a) When the bank becomes obligated to pay a beneficiar…

(1) A bank does not have a fiduciary duty to any person with respect to a special deposit.(2) When the bank holding a special deposit becomes obligated to pay a beneficiary, a debtor-creditor relationship arises between the bank and beneficiary.(3) The bank holding a special depo…

(1) Unless otherwise provided in the account agreement, a special deposit terminates five years after the date the special deposit was first funded.(2) Unless otherwise provided in the account agreement, if the bank cannot identify or locate a beneficiary entitled to payment when…

Title 62A RCW, consumer protection law, law governing deposits generally, law related to escheat and abandoned or unclaimed property, and the principles of law and equity, including law related to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, dure…

In applying and construing this uniform act, a court shall consider the promotion of uniformity of the law among jurisdictions that enact it.[ 2024 c 23 s 15.]

This chapter applies to:(1) A special deposit made under an account agreement executed on or after July 1, 2024; and(2) A deposit made under an account agreement executed before July 1, 2024, if:(a) All parties entitled to amend the account agreement agree to make the deposit a s…

This act takes effect July 1, 2024.[ 2024 c 23 s 18.]

Any bank or mutual savings bank may become a member of the federal reserve system of the United States and to that end may comply with all laws of the United States and all rules, regulations and requirements promulgated pursuant thereto, including the investment of its funds in …

Any savings and loan association, building and loan association, bank, savings bank, or mutual savings bank may become a member of and invest its funds in the bonds and/or the capital stock of a federal home loan bank, and vote such stock in the manner prescribed by its board of …

Any such bank, insurance company, or association, may borrow from any home loan bank and as security for borrowing may pledge therewith the notes, mortgages, trust deeds which it holds as shall be required by federal law, and under such rules and regulations as shall be adopted b…

Any such bank, insurance company, or association, may designate a federal home loan bank as a depositary for its funds.[ 2014 c 37 s 203; 1955 c 33 s 30.32.040. Prior: 1933 c 105 s 3; RRS s 3294-3. Formerly RCW 30.32.040.]

Capital notes or debentures, where used in this chapter, shall mean notes or other obligations issued by a bank or mutual savings bank, for money obtained and used as additional capital or to replace impaired capital stock: PROVIDED, Such notes or other obligations are subordinat…

With the approval of the director, any bank or mutual savings bank may at any time, through action of its board of directors or trustees, issue and sell its capital notes or debentures. Such capital notes or debentures shall be subordinate to the claims of depositors and other cr…

Where any bank or mutual savings bank has issued and has outstanding capital notes or debentures, it may carry its capital stock on its books at a sum less than par, and it shall not be considered impaired so long as the amount of such capital notes or debentures equals or exceed…

Before such capital notes or debentures are retired or paid by the bank or mutual savings bank, any existing impairment of its capital stock must be overcome or corrected to the satisfaction of the director.[ 2014 c 37 s 207; 1994 c 92 s 78; 1955 c 33 s 30.36.040. Prior: 1935 c 4…

Such capital notes or debentures shall in no case be subject to any assessment. The holders of such capital notes or debentures shall not be held individually responsible, as such holders, for any debts, contracts or engagements of such institution, and as such holders, shall not…

As used in this chapter, unless a different meaning is required by the context, the following words and phrases have the following meanings:(1) "Bank" means any national bank, state bank, and district bank, as those terms are defined in 12 U.S.C. Sec. 1813(a), and any savings ass…

(1) An out-of-state bank may engage in banking in this state without violating RCW 30A.04.280 only if the conditions and filing requirements of this chapter are met and the bank was lawfully engaged in banking in this state on July 22, 2010, or the bank's in-state banking activit…

(1) An out-of-state bank that does not have a branch in Washington may, under this chapter, establish and maintain:(a) A de novo branch in this state; or(b) A branch in this state through the acquisition of a branch.(2) An out-of-state bank desiring to establish and maintain a de…

An out-of-state bank with host branches in this state may relocate its head office in Washington and reincorporate as a Washington state bank if the director finds that the bank meets the standards as to capital structures, operations, business experience, and character of office…

(1) If authorized to engage in banking in this state under RCW 30A.38.010, an out-of-state bank may maintain and operate the branches in Washington of a Washington bank with which the out-of-state bank or its predecessors engaged in an interstate combination.(2) The out-of-state …

(1) The director may make examinations of any branch in this state of an out-of-state state bank as the director deems necessary to determine whether the branch is being operated in compliance with the laws of this state or is conducting its activities in accordance with safe and…

If the director determines that a branch maintained by an out-of-state state bank in this state is being operated in violation of the laws of this state, or that the branch is being operated in an unsafe and unsound manner, the director has the authority to take all enforcement a…

The director may adopt those rules necessary to implement chapter 2, Laws of 1996.[ 1996 c 2 s 16. Formerly RCW 30.38.060.]

(1) Any out-of-state state bank that will be the resulting bank pursuant to an interstate combination involving any bank with branches in Washington, if RCW 30A.49.125(5) does not apply, shall notify the director of the proposed combination not later than three days after the dat…

(1) The laws of Washington applicable to Washington state banks regarding community reinvestment, consumer protection, fair lending, and the establishment of intrastate branches apply to any branch in Washington of an out-of-state national bank or out-of-state state bank to the s…

The purpose of this chapter is to establish a legal and regulatory framework for operation by alien banks in the state of Washington that will:(1) Create a financial climate which will benefit the economy of the state of Washington;(2) Provide a well regulated and supervised fina…

For the purposes of this chapter, the following terms shall be defined as follows:(1) "Agency" means an office of an alien bank that is exercising the powers authorized by RCW 30A.42.180.(2) "Alien bank" means a bank organized under the laws of a foreign country and having its pr…

An alien bank shall not establish and operate an office or bureau in this state unless it is authorized to do so by the director and unless it first complies with all of the provisions of this chapter and then only to the extent expressly permitted by this chapter.[ 1994 c 92 s 8…

An alien bank shall not be permitted to have more than one office in this state.[ 1973 1st ex.s. c 53 s 4. Formerly RCW 30.42.040.]

An alien bank shall not take over or acquire an existing federal or state-chartered bank, trust company, mutual savings bank, savings and loan association, or credit union or any branch of any such bank, trust company, mutual savings bank, savings and loan association, or credit …

An alien bank shall not hereafter open an office in this state until it has met the following conditions:(1) It has filed with the director an application in such form and containing such information as shall be prescribed by the director.(2) It has designated the director by a d…

The capital allocated as required in RCW 30A.42.060(3) shall be maintained within this state at all times in cash or in director approved interest bearing bonds, notes, debentures, or other obligations: (1) Of the United States or of any agency or instrumentality thereof, or guar…

Every alien bank maintaining an office in this state shall keep the assets of its Washington office entirely separate and apart from the assets of its other operations as though the Washington office was conducted as a separate and distinct entity. Every such alien bank shall kee…

The director may give or withhold his or her approval of an application by an alien bank to establish an office in this state at his or her discretion. The director's decision shall be based on the information submitted to his or her office in the application required by RCW 30A.…

If the director approves the application, he or she shall notify the alien bank of his or her approval and shall file certified copies of its charter, certificate or other authorization to do business with the secretary of state. Upon such filing, the director shall issue a certi…

An approved branch of an alien bank shall have the same power to make loans and guarantee obligations as a state bank chartered pursuant to this title: PROVIDED, HOWEVER, That the base for computing the applicable loan limitation shall be the entire capital and surplus of the ali…

(1) Any branch of an alien bank that received approval of its branch application pursuant to RCW 30A.42.090, or that had filed its branch application pursuant to RCW 30A.42.060, on or before July 27, 1978, and any approved branch of an alien bank that has designated Washington as…

A branch shall not commence to transact in this state the business of accepting deposits or transact such business thereafter unless it has met the following requirements:(1) It has obtained federal deposit insurance corporation insurance covering its eligible deposit liabilities…

The director may take possession of the office of an alien bank for the reasons stated and in the manner provided in chapter 30A.44 RCW. Upon the director taking such possession of a branch, no deposit liabilities of which are insured by the federal deposit insurance corporation,…