November 24, 2020
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       Florida Senate - 2010                                    SB 1264
       
       
       
       By Senator Richter
       
       
       
       
       37-01211A-10                                          20101264__
    1                        A bill to be entitled                      
    2         An act relating to international banking corporations;
    3         amending ss. 655.005 and 663.01, F.S.; revising
    4         certain definitions; amending s. 663.02, F.S.;
    5         expanding application of state banking laws to include
    6         certain international banking corporations; expanding
    7         legislative intent; prohibiting construction to
    8         authorize international banking corporation or trust
    9         companies to conduct trust business under certain
   10         circumstances; amending s. 663.04, F.S.; revising
   11         requirements for carrying on banking business to apply
   12         to certain additional financial institutions; imposing
   13         additional requirements; amending s. 663.05, F.S.;
   14         revising requirements for licensing international
   15         banking corporations; including requirements
   16         applicable to certain trust representative offices;
   17         deleting certain nonapplication provisions; amending
   18         s. 663.055, F.S.; increasing certain net capital
   19         account requirements; amending s. 663.06, F.S.;
   20         revising permissible activities requirements for
   21         licensed international banking corporations; amending
   22         s. 663.061, F.S.; revising a permissible activity
   23         requirement for international bank agencies; amending
   24         s. 663.062, F.S.; revising a permissible activity
   25         requirement for licensed international representative
   26         offices to apply to trust companies; creating s.
   27         663.0625, F.S.; specifying permissible activities for
   28         international trust company representative offices;
   29         specifying requirements; amending s. 663.064, F.S.;
   30         revising application of provisions of law to
   31         establishing branches of international banking
   32         corporations; amending s. 663.065, F.S.; revising
   33         application of provisions of law to organize a state
   34         chartered investment company; amending s. 663.11,
   35         F.S.; prohibiting international banking corporations
   36         from continuing to conduct licensed business in this
   37         state under certain circumstances; amending s. 663.12,
   38         F.S.; increasing a license application filing fee;
   39         imposing an annual assessment upon certain entities;
   40         amending s. 663.16, F.S.; revising definitions to
   41         conform to changes made by the act; amending s.
   42         663.17, F.S.; expanding criteria under which the
   43         Office of Financial Regulation may take possession of
   44         certain business and property of certain international
   45         banking corporations; revising provisions to conform
   46         to changes made by the act; amending ss. 663.171 and
   47         663.172, F.S.; revising provisions to conform to
   48         changes made by the act; providing an effective date.
   49  
   50  Be It Enacted by the Legislature of the State of Florida:
   51  
   52         Section 1. Paragraphs (h) and (p) of subsection (1) of
   53  section 655.005, Florida Statutes, are amended to read:
   54         655.005 Definitions.—
   55         (1) As used in the financial institutions codes, unless the
   56  context otherwise requires, the term:
   57         (h) “Financial institution” means a state or federal
   58  savings or thrift association, bank, savings bank, trust
   59  company, international bank agency, international banking
   60  corporation organization, international branch, international
   61  representative office, international administrative office,
   62  international trust company representative office, or credit
   63  union, or an agreement corporation operating pursuant to s. 25
   64  of the Federal Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge
   65  Act corporation organized pursuant to s. 25(a) of the Federal
   66  Reserve Act, 12 U.S.C. ss. 611 et seq.
   67         (p) “State financial institution” means a state-chartered
   68  or state-organized association, bank, investment company, trust
   69  company, international bank agency, international branch,
   70  international representative office, international
   71  administrative office, international trust company
   72  representative office, or credit union.
   73         Section 2. Subsections (3), (6), and (8) of section 663.01,
   74  Florida Statutes, are amended, subsections (9) and (10) of that
   75  section are renumbered as subsections (10) and (11),
   76  respectively, and a new subsection (9) is added to that section,
   77  to read:
   78         663.01 Definitions.—As used in this part, the term:
   79         (3) “Foreign country” means a country other than the United
   80  States and includes any colony, dependency, or possession of
   81  such country notwithstanding any definitions in chapter 658, and
   82  any territory of the United States, including Guam, American
   83  Samoa, the Virgin Islands, and the Commonwealth of Puerto Rico.
   84         (6) “International banking corporation” means a banking
   85  corporation organized and licensed under the laws of a foreign
   86  country, or, if organized and licensed under the laws of the
   87  United States or any of the states of the United States of
   88  America, a banking corporation:
   89         (a) Which is not a bank or bank holding company as defined
   90  in the federal Bank Holding Company Act, as amended, 12 U.S.C.
   91  ss. 1841-1850; and
   92         (b) Which maintained, on July 1, 1981, as its only United
   93  States banking office, one state agency licensed by a state
   94  other than this state.
   95  
   96  The term “international banking corporation” includes, without
   97  limitation, a foreign commercial bank, foreign merchant bank, or
   98  other foreign institution that engages in banking activities
   99  usual in connection with the business of banking in the country
  100  where such foreign institution is organized or operating,
  101  including a corporation: the sole shareholders of which are one
  102  or more international banking corporations or holding companies
  103  which own or control one or more international banking
  104  corporations which are authorized to carry on a banking
  105  business, or a central bank or government agency of a foreign
  106  country and any affiliate or division thereof; which has the
  107  power to receive deposits from the general public in the country
  108  where it is chartered and organized; and which is under the
  109  supervision of the central bank or other bank regulatory
  110  authority of such country. The term also includes foreign trust
  111  companies, or any similar business entities, including, but not
  112  limited to, foreign banks with fiduciary powers, that conduct
  113  trust business as defined in the financial institutions codes.
  114         (8) “International representative office” means an office
  115  of an international banking corporation organized and licensed
  116  under the laws of a foreign country that is established or
  117  maintained in this state for the purpose of engaging in the
  118  activities described in s. 663.062, or any affiliate,
  119  subsidiary, or other person that engages whose primary business
  120  is to engage in such activities, on behalf of such international
  121  banking corporation, from an office located in this state.
  122         (9) “International trust company representative office”
  123  means an office of an international banking corporation or trust
  124  company organized and licensed under the laws of a foreign
  125  country which office is established or maintained in this state
  126  for the purpose of engaging in nonfiduciary activities described
  127  in s. 663.0625, or any affiliate, subsidiary, or other person
  128  that engages in such activities on behalf of such international
  129  banking corporation or trust company from an office located in
  130  this state.
  131         Section 3. Section 663.02, Florida Statutes, is amended to
  132  read:
  133         663.02 Applicability of state banking laws.—
  134         (1) International banking corporations having offices in
  135  this state shall be subject to all the provisions of the
  136  financial institutions codes and chapter 655 as though such
  137  international banking corporations were state banks or trust
  138  companies, except where it may appear, from the context or
  139  otherwise, that such provisions are clearly applicable only to
  140  banks or trust companies organized under the laws of this state
  141  or the United States. Without limiting the foregoing general
  142  provisions, it is the intent of the Legislature that the
  143  following provisions shall be applicable to such banks or
  144  corporations: s. 655.031, relating to administrative enforcement
  145  guidelines; s. 655.032, relating to investigations, subpoenas,
  146  hearings, and witnesses; s. 655.0321, relating to hearings,
  147  proceedings, and related documents and restricted access
  148  thereto; s. 655.033, relating to cease and desist orders; s.
  149  655.037, relating to removal by the office of an officer,
  150  director, committee member, employee, or other person; s.
  151  655.041, relating to administrative fines and enforcement; s.
  152  655.50, relating to control of money laundering; and s. 658.49,
  153  relating to loans by banks not exceeding $50,000; and any
  154  provision of law for which the penalty is increased under s.
  155  775.31 for facilitating or furthering terrorism. International
  156  banking corporations shall not have the powers conferred on
  157  domestic banks by the provisions of s. 658.60, relating to
  158  deposits of public funds. The provisions of chapter 687,
  159  relating to interest and usury, shall apply to all loans not
  160  subject to s. 658.49.
  161         (2) Neither an international bank agency nor an
  162  international branch shall have any greater right under, or by
  163  virtue of, this section than is granted to banks organized under
  164  the laws of this state. Legal and financial terms used herein
  165  shall be deemed to refer to equivalent terms used by the country
  166  in which the international banking corporation is organized.
  167  This chapter and the financial institutions codes may not be
  168  construed to authorize any international banking corporation or
  169  trust company to conduct trust business, as defined in s.
  170  658.12, from an office in this state except for those activities
  171  specifically authorized by ss. 663.061(5) and 663.0625.
  172         Section 4. Section 663.04, Florida Statutes, is amended to
  173  read:
  174         663.04 Requirements for carrying on financial institution
  175  banking business.—An No international banking corporation or
  176  trust company, or any affiliate, subsidiary, or other person or
  177  business entity acting as an agent for, on behalf of, or for the
  178  benefit of such international banking corporation or trust
  179  company who engages in such activities from an office located in
  180  this state, may not shall transact a banking or trust business,
  181  or maintain in this state any office for carrying on such
  182  business, or any part thereof, unless such corporation, trust
  183  company, affiliate, subsidiary, person, or business entity has:
  184         (1) Has been authorized by its charter to carry on a
  185  banking or trust business and has complied with the laws of the
  186  jurisdiction in which it is chartered.
  187         (2) Has furnished to the office such proof as to the nature
  188  and character of its business and as to its financial condition
  189  as the commission or office requires.
  190         (3) Has filed with the office a certified copy of that
  191  information required to be supplied to the Department of State
  192  by those provisions of chapter 607 which are applicable to
  193  foreign corporations.
  194         (4) Has received a license duly issued to it by the office.
  195         (5) Has capital accounts no less than the minimums required
  196  per s. 663.055 and is not imminently insolvent or insolvent per
  197  s. 655.005(1).
  198         (6)(a) Is not in bankruptcy, conservatorship, receivership,
  199  liquidation, or similar status under the laws of any country.
  200         (b) Is not operating under the direct control of the
  201  government, regulatory, or supervisory authority of the
  202  jurisdiction of its incorporation through government
  203  intervention or any other extraordinary actions.
  204         (c) Has not been in such status or control at any time
  205  within the 7 years preceding the date of application for a
  206  license.
  207         Section 5. Section 663.05, Florida Statutes, is amended to
  208  read:
  209         663.05 Application for license; approval or disapproval.—
  210         (1) Every international banking corporation, before being
  211  licensed by the office to maintain any office in this state,
  212  shall subscribe and acknowledge, and submit to the office, an
  213  application which shall contain:
  214         (a) The name of the international banking corporation.
  215         (b) The proposed location by street and post office address
  216  and county where its business is to be transacted in this state
  217  and the name of the person who shall be in charge of the
  218  business and affairs of the office.
  219         (c) The location where its initial registered office will
  220  be located in this state.
  221         (d) The total amount of the capital accounts of the
  222  international banking corporation.
  223         (e) A complete and detailed statement of its financial
  224  condition as of a date within 180 days prior to the date of such
  225  application, except that the office in its discretion may, when
  226  necessary or expedient, accept such statement of financial
  227  condition as of a date within 240 days prior to the date of such
  228  application. The office in its discretion may, when necessary or
  229  expedient, require an independent opinion audit or the
  230  equivalent satisfactory to the office.
  231         (f) A listing of any occasion within the preceding 10-year
  232  period in which either the international banking corporation or
  233  any of its directors, executive officers, or principal
  234  shareholders has been arrested for, charged with, convicted of,
  235  or pled guilty or nolo contendere to, regardless of
  236  adjudication, any offense with respect to which the penalties
  237  include the possibility of imprisonment for 1 year or more, or
  238  to any offense involving money laundering, currency transaction
  239  reporting, facilitating or furthering terrorism, fraud, or
  240  otherwise related to the operation of a financial institution.
  241         (2) The office shall disallow any illegally obtained
  242  currency, monetary instruments, funds, or other financial
  243  resources from the capitalization requirements of this section,
  244  and the existence of such illegally obtained resources shall be
  245  grounds for denial of the application for license.
  246         (3) At the time an application is submitted to the office,
  247  the international banking corporation shall also submit a duly
  248  authenticated copy of its articles of incorporation and a copy
  249  of its bylaws, or an equivalent thereof satisfactory to the
  250  office. Such corporation shall also submit a certificate issued
  251  by the banking or supervisory authority of the country in which
  252  the international banking corporation is chartered stating that
  253  the international banking corporation is duly organized and
  254  licensed and lawfully existing in good standing and listing any
  255  instance in which the international banking corporation has been
  256  convicted of, or pled guilty or nolo contendere to, a violation
  257  of any currency transaction reporting or money laundering law
  258  which may exist in that country.
  259         (4) Application shall be made on a form prescribed by the
  260  office commission and shall contain such information as the
  261  commission or office requires.
  262         (5) The office may, in its discretion, approve or
  263  disapprove the application, but it shall not approve the
  264  application unless, in its opinion, the applicant meets each and
  265  every requirement of this part and any other applicable
  266  provision of the financial institutions codes. The office shall
  267  approve the application only if it has determined that the
  268  directors, executive officers, and principal shareholders of the
  269  international banking corporation are qualified by reason of
  270  their financial ability, reputation, and integrity and have
  271  sufficient banking and other business experience to indicate
  272  that they will manage and direct the affairs of the
  273  international banking corporation in a safe, sound, and lawful
  274  manner. In the processing of applications, the time limitations
  275  under the Administrative Procedure Act shall not apply as to
  276  approval or disapproval of the application.
  277         (6) The office may shall not issue a license to an
  278  international banking corporation unless:
  279         (a) It is chartered in a jurisdiction in which any bank or
  280  trust company having its principal place of business in this
  281  state may establish similar facilities or exercise similar
  282  powers; or
  283         (b) Federal law permits the appropriate federal regulatory
  284  authority to issue a comparable license to the international
  285  banking corporation.
  286         (7) The office may not issue a license shall not be issued
  287  to an international banking corporation for the purpose of
  288  operating:
  289         (a) An international bank agency or an international branch
  290  in this state unless the international banking corporation:
  291         1.(a) Holds an unrestricted license to receive deposits
  292  from the general public, as authorized for that international
  293  banking corporation, in the foreign country under the laws of
  294  which it is organized and chartered.
  295         2.(b) Has been authorized by the foreign country’s bank
  296  regulatory authority to establish the proposed international
  297  bank office.
  298         3.(c) Is adequately supervised by the central bank or bank
  299  regulatory agency in the foreign country in which it is
  300  organized and chartered.
  301         (8) A license shall not be issued to an international
  302  banking corporation for the purpose of operating
  303         (b) An international representative office or an
  304  international administrative office in this state unless the
  305  international banking corporation:
  306         1.(a) Has been authorized by the foreign country’s bank
  307  regulatory authority to establish the proposed international
  308  bank office.; and
  309         2.(b) Is adequately supervised by the central bank or bank
  310  regulatory agency in the foreign country in which it is
  311  organized and chartered.
  312         (c) A trust representative office in this state unless the
  313  corporation:
  314         1. Holds an unrestricted license to conduct trust business
  315  in the foreign country under the laws of which it is organized
  316  and chartered.
  317         2. Has been authorized by the foreign country’s trust
  318  business regulatory authority to establish the proposed
  319  international trust representative office.
  320         3. Is adequately supervised by the central bank or trust
  321  regulatory agency in the foreign country in which it is
  322  organized and chartered.
  323         4. Meets all requirements under the financial institutions
  324  codes for the operation of a trust company or trust department
  325  as if it was a state chartered trust company or bank authorized
  326  to exercise fiduciary powers.
  327         (8)(9) The commission shall establish, by rule, the general
  328  principles which shall determine the adequacy of supervision of
  329  an international banking corporation’s foreign establishments.
  330  These principles shall be based upon the need for cooperative
  331  supervisory efforts and consistent regulatory guidelines and
  332  shall address, at a minimum, the capital adequacy, asset
  333  quality, management, earnings, liquidity, internal controls,
  334  audits, and foreign exchange operations and positions of the
  335  international banking corporation. This subsection shall not
  336  require examination by the home-country regulatory authorities
  337  of any office of an international banking corporation in this
  338  state. The commission may also establish, by rule, other
  339  standards for approval of an application for a license as
  340  considered necessary to ensure the safe and sound operations of
  341  the international bank or trust representative office in this
  342  state.
  343         (10) The requirements of subsection (7) shall not apply to
  344  any international banking corporation that held a license to
  345  operate an international bank agency in this state before July
  346  1, 1992.
  347         (11) The requirements of subsection (8) shall not apply to
  348  any international banking corporation that held a license to
  349  operate an international representative office or international
  350  administrative office in this state before July 1, 1992.
  351         Section 6. Section 663.055, Florida Statutes, is amended to
  352  read:
  353         663.055 Capital requirements.—
  354         (1) To qualify for a license under the provisions of this
  355  part, an international banking corporation must have net total
  356  capital accounts, calculated according to United States
  357  generally accepted accounting principles and practices, of at
  358  least:
  359         (a) Forty Twenty-five million dollars for the establishment
  360  of an international bank agency, an international branch, or an
  361  international administrative office; or
  362         (b) Twenty Ten million dollars for the establishment of an
  363  international representative office or international trust
  364  representative office.
  365         (2) Notwithstanding the provisions of paragraph (1)(a), the
  366  office may approve an application for a license to establish an
  367  international bank agency, an international branch, or an
  368  international administrative office if:
  369         (a) The international banking corporation is licensed to
  370  receive deposits from the general public in the country where it
  371  is organized and licensed and to engage in such other activities
  372  as are usual in connection with the business of banking in such
  373  country;
  374         (b) The office receives a certificate that is issued by the
  375  banking or supervisory authority of the country in which the
  376  international banking corporation is organized and licensed and
  377  states that the international banking corporation is duly
  378  organized and licensed and lawfully existing in good standing,
  379  and is empowered to conduct a banking business; and
  380         (c) The international banking corporation has been in the
  381  business of banking for at least 10 years and is ranked by the
  382  banking or supervisory authority of the country in which it is
  383  organized and licensed as one of the five largest banks in that
  384  country in terms of domestic deposits, as of the date of its
  385  most recent statement of financial condition. However, in no
  386  event shall the office approve an application under this
  387  subsection for any international banking corporation with
  388  capital accounts of less than $20 $10 million.
  389         (3) The office may specify such other conditions as it
  390  determines appropriate, considering the public interest, the
  391  need to maintain a safe, sound, and competitive banking system,
  392  and the preservation of an environment conducive to the conduct
  393  of an international banking business in this state. In
  394  translating the capital accounts of an international banking
  395  corporation, the office may consider monetary corrections
  396  accounts that reflect results consistent with the requirements
  397  of generally accepted accounting principles in the United
  398  States.
  399         (4) For the purpose of this part, the capital accounts of
  400  an international banking corporation shall be determined in
  401  accordance with rules adopted by the commission. In adopting
  402  such rules, the commission shall consider similar rules adopted
  403  by bank regulatory agencies in the United States and the need to
  404  provide reasonably consistent regulatory requirements for
  405  international banking corporations which will maintain the safe
  406  and sound condition of international banking corporations doing
  407  business in this state.
  408         Section 7. Subsections (1), (2), and (3) of section 663.06,
  409  Florida Statutes, are amended to read:
  410         663.06 Licenses; permissible activities.—
  411         (1) An international banking corporation licensed to
  412  operate an office in this state may engage in the business
  413  authorized by this part at the office specified in such license
  414  for an indefinite period. An international banking corporation
  415  may operate more than one licensed office international bank
  416  agency, international branch, or international representative
  417  office, each at a different place of business, provided that
  418  each office shall be separately licensed. No license to operate
  419  an international bank office is transferable or assignable.
  420  However, the location of a licensed an international bank office
  421  may be changed after notification of the office. Every such
  422  license shall be, at all times, conspicuously displayed in the
  423  place of business specified therein.
  424         (2) An international banking corporation which proposes to
  425  terminate the operations of a licensed office in this state its
  426  international bank agency, international branch, international
  427  representative office, or international administrative office
  428  shall surrender the its license to the office and comply with
  429  such procedures as the commission may prescribe by rule.
  430         (3) The An international bank agency, international branch,
  431  international representative office, or international
  432  administrative office license for any international banking
  433  corporation office in this state may be suspended or revoked by
  434  the office, with or without examination, upon its determination
  435  that the international banking corporation or the licensed
  436  office does not meet all requirements for original licensing.
  437  Additionally, the office shall revoke the license of any
  438  licensed office that the office determines has been inactive for
  439  6 months or longer. The commission may by rule prescribe
  440  additional conditions or standards under which the license of an
  441  international bank agency, international branch, international
  442  representative office, international trust company
  443  representative office, or international administrative office
  444  may be suspended or revoked.
  445         Section 8. Subsection (3) of section 663.061, Florida
  446  Statutes, is amended to read:
  447         663.061 International bank agencies; permissible
  448  activities.—
  449         (3) Notwithstanding any provision of this chapter or
  450  chapter 658 to the contrary, an international banking
  451  corporation licensed under this part to operate an international
  452  bank agency may, if authorized by rule of the commission or
  453  office order, make any loan or investment or exercise any power
  454  which it could make or exercise if it were operating in this
  455  state as a federal agency under federal law. The commission and
  456  office shall, when adopting such rules or issuing such orders,
  457  consider the public interest and convenience and the need to
  458  maintain a safe, sound, and competitive state banking system.
  459  Unless otherwise provided by statute, an international bank
  460  agency may not exercise any powers that a federal agency is not
  461  authorized to exercise.
  462         Section 9. Section 663.062, Florida Statutes, is amended to
  463  read:
  464         663.062 International representative offices; permissible
  465  activities.—An international representative office may promote
  466  or assist the deposit-taking, lending, or other financial or
  467  banking activities of an international banking corporation. An
  468  international representative office may serve as a liaison in
  469  Florida between an international banking corporation and its
  470  existing and potential customers. Representatives and employees
  471  based at such office may solicit business for the international
  472  banking corporation and its subsidiaries and affiliates, provide
  473  information to customers concerning their accounts, answer
  474  questions, receive applications for extensions of credit and
  475  other banking services, transmit documents on behalf of
  476  customers, and make arrangements for customers to transact
  477  business on their accounts, but a representative office may not
  478  conduct any banking or trust business in this state.
  479         Section 10. Section 663.0625, Florida Statutes, is created
  480  to read:
  481         663.0625 International trust company representative
  482  offices; permissible activities; requirements.—An international
  483  trust company representative office may conduct any nonfiduciary
  484  activities that are ancillary to the fiduciary business of its
  485  international banking corporation or trust company, but may not
  486  act as a fiduciary. Permissible activities include advertising,
  487  marketing, and soliciting for fiduciary business on behalf of an
  488  international banking corporation or trust company; contacting
  489  existing or potential customers, answering questions, and
  490  providing information about matters related to their accounts;
  491  serving as a liaison in this state between the international
  492  banking corporation or trust company and its existing or
  493  potential customers; and engaging in any other activities
  494  approved by the office or under rules of the commission.
  495  Representatives and employees at such office may not act as a
  496  fiduciary, including, but not limited to, accepting the
  497  fiduciary appointment, executing the fiduciary documents that
  498  create the fiduciary relationship, or making discretionary
  499  decisions regarding the investment or distribution of fiduciary
  500  accounts.
  501         Section 11. Section 663.064, Florida Statutes, is amended
  502  to read:
  503         663.064 International branches; permissible activities;
  504  requirements.—An international banking corporation that meets
  505  the requirements of ss. 658.26, 663.04, and 663.05 may, with the
  506  approval of the office, establish one or more branches in this
  507  state to the extent permitted to banks from other states. An
  508  international branch shall have the same rights and privileges
  509  as a federally licensed international branch. The operations of
  510  an international branch shall be conducted pursuant to
  511  requirements determined by the office as necessary to ensure
  512  compliance with the provisions of the financial institutions
  513  codes, including requirements for the maintenance of accounts
  514  and records separate from those of the international banking
  515  corporation of which it is a branch. An application to establish
  516  an international branch shall be made pursuant to s. 658.26.
  517         Section 12. Subsection (3) of section 663.065, Florida
  518  Statutes, is amended to read:
  519         663.065 State-chartered investment companies; formation;
  520  permissible activities; restrictions.—
  521         (3) An application for approval to organize a state
  522  chartered investment company shall be subject to the provisions
  523  of chapter 658 655 relating to the organization of de novo
  524  financial institutions and to rules adopted by the commission as
  525  necessary to ensure that the proposed state-chartered investment
  526  company will be operated in a safe and lawful manner, except
  527  that the applicant is not required to become a member of the
  528  Federal Reserve System or the Federal Deposit Insurance
  529  Corporation. State-chartered investment companies shall be
  530  subject to the examination and supervision of the office and are
  531  subject to the financial institutions codes to the same extent
  532  as international banking corporations pursuant to s. 663.02.
  533         Section 13. Section 663.11, Florida Statutes, is amended to
  534  read:
  535         663.11 Termination of international banking corporation’s
  536  charter or authority Dissolution.—In the event An international
  537  banking corporation that which is licensed to maintain an office
  538  in this state may not continue to conduct its licensed business
  539  in this state if the international banking corporation is
  540  dissolved, or its authority or existence is otherwise terminated
  541  or canceled in the jurisdiction of its incorporation, is in
  542  bankruptcy, conservatorship, receivership, liquidation, or
  543  similar status under the laws of any country, or is operating
  544  under the direct control of the government or the regulatory or
  545  supervisory authority of the jurisdiction of its incorporation
  546  through government intervention or any other extraordinary
  547  actions. A certificate of the official who is responsible for
  548  records of banking corporations of the jurisdiction of
  549  incorporation of such international banking corporation,
  550  attesting to the occurrence of any such event, or a certified
  551  copy of an order or decree of a court of such jurisdiction,
  552  directing the dissolution of such international banking
  553  corporation, the termination of its existence, or the
  554  cancellation of its authority, or declaring its status in
  555  bankruptcy, conservatorship, receivership, liquidation, or
  556  similar proceedings, or other reliable documentation that the
  557  international banking corporation is operating under the direct
  558  control of its government or a regulatory or supervisory
  559  authority, shall be delivered by the international banking
  560  corporation or its surviving officers and directors to the
  561  office. The filing of the certificate, order, documentation, or
  562  decree shall have the same effect as the revocation of the
  563  license of such international banking corporation as provided in
  564  s. 663.06.
  565         Section 14. Paragraph (e) of subsection (1) and subsection
  566  (2) of section 663.12, Florida Statutes, are amended to read:
  567         663.12 Fees; assessments; fines.—
  568         (1) Each application for a license under the provisions of
  569  this part shall be accompanied by a nonrefundable filing fee
  570  payable to the office in the following amount:
  571         (e) Five Two thousand dollars annually for establishing
  572  operating an international trust company representative office
  573  or international administrative office.
  574         (2) Each international bank agency, international branch,
  575  and state-chartered investment company shall pay to the office a
  576  semiannual assessment, payable on or before January 31 and July
  577  31 of each year, in an amount determined by rule by the
  578  commission and calculated in a manner so as to recover the costs
  579  of the office incurred in connection with the supervision of
  580  international banking activities licensed under this part. These
  581  rules shall provide for uniform rates of assessment for all
  582  licenses of the same type, shall provide for declining rates of
  583  assessment in relation to the total assets of the licensee held
  584  in the state, but shall not, in any event, provide for rates of
  585  assessment which exceed the rate applicable to state banks
  586  pursuant to s. 658.73, unless the rate of assessment would
  587  result in a semiannual assessment of less than $1,000. For the
  588  purposes of this subsection, the total assets of an
  589  international bank agency, international branch, or state
  590  chartered investment company shall include amounts due the
  591  agency or branch or state investment company from other offices,
  592  branches, or subsidiaries of the international banking
  593  corporations or other corporations of which the agency, branch,
  594  or state-chartered investment company is a part or from entities
  595  related to that international banking corporation. Each
  596  international representative office, international
  597  administrative office, or international trust company
  598  representative office shall pay to the office an annual
  599  assessment in the amount of $2,000, payable on or before January
  600  31 of each year.
  601         Section 15. Subsections (1), (4), (5), (11), and (12) of
  602  section 663.16, Florida Statutes, are amended to read:
  603         663.16 Definitions; ss. 663.17-663.181.—As used in ss.
  604  663.17-663.181, the term:
  605         (1) “Business and property in this state” includes, but is
  606  not limited to, all property of the international banking
  607  corporation, real, personal, or mixed, whether tangible or
  608  intangible:
  609         (a) Wherever situated, constituting a part of the business
  610  of the Florida licensed office agency and appearing on its books
  611  as such.
  612         (b) Situated within this state whether or not constituting
  613  part of the business of the Florida licensed office agency or so
  614  appearing on its books.
  615         (4) Except where the context otherwise requires,
  616  “international banking corporation” or “corporation” has the
  617  same meaning as that provided in s. 663.01 and includes means
  618  any licensed office of an international banking corporation bank
  619  agency or branch operating in this state.
  620         (5) “Officer” means the agent or other person in charge of
  621  an international banking corporation licensed office.
  622         (11) “Licensed office Branch or agency net obligations”
  623  means, with respect to a qualified financial contract, the
  624  amount, if any, that would have been owed by the international
  625  banking corporation to a party after netting only those
  626  transactions entered into by the licensed office branch or
  627  agency and such party under such qualified financial contract.
  628         (12) “Licensed office Branch or agency net payments
  629  entitlement” means, with respect to a qualified financial
  630  contract, the amount, if any, that would have been owed by a
  631  party to the international banking corporation after netting
  632  only those transactions entered into by the licensed office
  633  branch or agency and such party under such qualified financial
  634  contract.
  635         Section 16. Section 663.17, Florida Statutes, is amended to
  636  read:
  637         663.17 Liquidation; possession of business and property;
  638  inventory of assets; wages; depositing collected assets;
  639  appointing agents; appointment of judges.—
  640         (1) The office may, at its discretion, take possession of
  641  the business and property in this state of any international
  642  banking corporation that has been licensed to operate in this
  643  state upon finding that the corporation, or any of the
  644  corporation’s licensed offices international bank agency
  645  operating in this state has violated any law, has neglected or
  646  refused to comply with the terms of a duly issued order of the
  647  office, is insolvent or imminently insolvent, or is transacting
  648  business in an unsound, unsafe, or unauthorized manner such that
  649  the corporation is threatened with imminent insolvency, or that
  650  the corporation is dissolved, its authority or existence is
  651  otherwise terminated or canceled in the jurisdiction of its
  652  incorporation, it is in bankruptcy, conservatorship,
  653  receivership, liquidation, or similar status under the laws of
  654  any country, or it is operating under the direct control of the
  655  government or the regulatory or supervisory authority of the
  656  jurisdiction of its incorporation through government
  657  intervention or any other extraordinary actions in liquidation
  658  at its domicile or elsewhere. Title to such business and
  659  property shall vest by operation of law in the office upon
  660  taking possession. Thereafter, the office shall liquidate or
  661  otherwise deal with such business and property in accordance
  662  with the provisions of this part, chapter 658, and any other
  663  provision relating to the liquidation of banking corporations.
  664  The office may deal with such business and property and
  665  prosecute and defend any and all actions relating to the
  666  liquidation. Only the claims of creditors of the international
  667  banking corporation arising out of transactions those creditors
  668  had with the international banking corporation, or any of the
  669  corporation’s licensed offices international bank agency or
  670  agencies located in this state, shall be accepted by the office
  671  for payment out of the business and property which it has taken
  672  possession of in this state. Acceptance or rejection of such
  673  claims by the office shall not prejudice any creditor’s rights
  674  to otherwise share in other assets of the international banking
  675  corporation. The following claims shall not be accepted by the
  676  office for payment out of the business and property in the
  677  office’s possession in this state:
  678         (a) Claims which would not represent an enforceable legal
  679  obligation against an international banking corporation, or any
  680  of the corporation’s licensed offices located in this state, if
  681  such office was bank agency if such agency were a separate and
  682  independent legal entity.
  683         (b) Amounts due and other liabilities to other offices,
  684  agencies, and branches of and affiliates of such international
  685  banking corporation.
  686         (2) Whenever all accepted claims, together with interest on
  687  such claims, and the expenses of the liquidation have been paid
  688  in full or properly provided for, the office, upon the order of
  689  a court of competent jurisdiction, shall transfer the remaining
  690  assets to the principal office of such international banking
  691  corporation, or to the duly appointed domiciliary liquidator or
  692  receiver of such corporation. Dividends and other amounts that
  693  remain unclaimed or unpaid and are in the possession of the
  694  office for 6 months after such transfer shall be deposited by
  695  the office as provided by law.
  696         (3) When the office takes possession of the property and
  697  business of any international banking corporation, including any
  698  of the corporation’s licensed offices located in this state, the
  699  office shall:
  700         (a) Give notice of such fact to all corporations,
  701  unincorporated associations, partnerships, governmental
  702  entities, and other entities and individuals known by the office
  703  to hold any assets of such corporation. No corporation,
  704  unincorporated association, partnership, governmental entity, or
  705  other entity or individual having notice or knowledge that the
  706  office has taken possession of such property and business of a
  707  international banking corporation shall have a lien or charge
  708  for any payment, advance, or clearance thereafter made against
  709  any of the assets of such corporation for liability thereafter
  710  incurred.
  711         (b) Upon written demand of the office, any corporation,
  712  unincorporated association, partnership, governmental entity, or
  713  other entity or individual holding assets of such corporation
  714  shall deliver such assets to the office and shall be discharged
  715  from liability with respect to any claim upon such assets;
  716  provided, such demand shall not affect the right of a secured
  717  creditor with a perfected security interest, or other valid lien
  718  or security interest enforceable against third parties, to
  719  retain collateral, including any right of such secured creditor
  720  under any security agreement related to a qualified financial
  721  contract to retain collateral and apply such collateral in
  722  accordance with the provisions of the financial institutions
  723  codes.
  724         (c) Nothing in paragraphs (a) and (b) shall affect any
  725  right of setoff permitted under applicable law; provided, in
  726  connection with the liquidation of a licensed office an
  727  international bank agency of any other international banking
  728  corporation pursuant to this part, no entity or individual may
  729  set off the business and property in this state of an
  730  international banking corporation being liquidated under this
  731  subsection, against the liabilities of such corporation other
  732  than those that arise out of transactions engaged in by such
  733  entity or individual with such licensed office international
  734  bank agency. For purposes of this paragraph, liabilities shall
  735  be deemed to include, in the case of qualified financial
  736  contracts, the lesser of the two amounts calculated with respect
  737  to any such qualified financial contract pursuant to s.
  738  663.172(3), and this paragraph shall not be deemed to authorize
  739  setoff except as otherwise permissible under applicable law.
  740         (4) Any licensed office of an international banking
  741  corporation of which the office has taken possession or which is
  742  operating under restrictions imposed by duly constituted
  743  authority may be permitted to resume business subject to the
  744  office’s discretion and any conditions that the office may
  745  impose.
  746         (5) After the office takes possession of and determines to
  747  liquidate the property and business of any licensed office of an
  748  international banking corporation, the office shall make an
  749  inventory, in duplicate, of the assets of such licensed office
  750  corporation. One copy of such inventory shall be filed with the
  751  office and one copy shall be filed with a court of competent
  752  jurisdiction in the county in which the licensed office
  753  principal office of such corporation is located.
  754         (6) Notwithstanding s. 658.84, all wages actually owing to
  755  the employees of an international banking corporation for
  756  services rendered within 3 months prior to the date possession
  757  was taken by the office, and not exceeding $10,000 $2,000 to
  758  each employee, shall be paid prior to the payment of any other
  759  debt or claim, and, in the discretion of the office, may be paid
  760  as soon as practicable after taking possession, except that at
  761  all times the office shall reserve such funds as will, in the
  762  office’s opinion, be sufficient for the expenses of
  763  administration.
  764         (7) The office is authorized, upon taking possession of any
  765  licensed office of an international banking corporation, to
  766  liquidate the affairs of such licensed office corporation and to
  767  do all acts and to make such expenditures as in the office’s
  768  judgment are necessary to conserve the assets and business of
  769  the corporation. The office shall proceed to collect the debts
  770  due to the corporation. The office may, upon an order of a court
  771  of competent jurisdiction, sell, assign, compromise, or
  772  otherwise dispose of all bad or doubtful debts held by, and
  773  compromise claims against, such corporation, other than deposit
  774  claims, provided, whenever the principal amount of any such debt
  775  or claim owed by or owing to such corporation does not exceed
  776  $50,000, the office may sell, assign, compromise, or otherwise
  777  dispose of such debt or claim upon such terms as the office may
  778  deem to be in the best interests of such corporation wherever
  779  situated. When the real property of an international banking
  780  corporation, to be disposed of pursuant to this subsection, is
  781  located in a county in this state other than a county in which
  782  an application to the court for leave to dispose is made, the
  783  office shall file a certified copy of the order of such court
  784  authorizing such disposal in the office of the clerk of the
  785  county in which such real property is located.
  786         (8) Moneys collected by the office in liquidating a
  787  licensed office of an international banking corporation shall
  788  be:
  789         (a) Deposited on demand, time or otherwise, in one or more
  790  banks, associations, or trust companies organized under the laws
  791  of this state and, in the case of insolvency or voluntary or
  792  involuntary liquidation of the depositary, such deposits shall
  793  be entitled to priority of payment equally with any other
  794  priority given under the financial institutions codes;
  795         (b) Deposited on demand, time or otherwise, in one or more
  796  national banks with a principal office located in this state and
  797  with total assets exceeding $1 billion; or
  798         (c) Invested in obligations of the United States, or
  799  obligation for which the full faith and credit of the United
  800  States is pledged to provide for the payment of interest and
  801  principal.
  802         (9) The office may appoint one or more persons as agent or
  803  agents to assist in the liquidation of the business and affairs
  804  of any international banking corporation, or any of the
  805  corporation’s licensed offices located in this state, in the
  806  office’s possession. The office shall serve a copy of the file a
  807  certificate of such appointment to the international banking
  808  corporation in the headquarters of the office and shall file a
  809  certified copy of such certificate with a court of competent
  810  jurisdiction in the county in which the licensed principal
  811  office of such corporation is located in this state. The office
  812  may employ such counsel and expert assistants under such titles
  813  that the office shall assign to them, and may retain such
  814  officers or employees of such corporation as the office deems
  815  necessary in the liquidation and distribution of the
  816  corporation’s assets. The office may require such security as it
  817  may deem proper from the agents and assistants appointed
  818  pursuant to the provisions of this subsection.
  819         (10) When the office has taken possession of and is
  820  liquidating the business and property in this state of any
  821  international banking corporation under the provisions of this
  822  part, the office shall be entitled to the appointment of a
  823  single judge to supervise the liquidation in the judicial
  824  circuit in which the licensed principal office of such
  825  corporation is located. Such judge shall have the power to order
  826  expedited or simplified procedures or order a reference whenever
  827  necessary to resolve a matter in such liquidation.
  828         (11) The compensation of agents and any other employees
  829  appointed by the office to assist in the liquidation of an
  830  international banking corporation, or any of the corporation’s
  831  licensed offices located in this state bank agency, the
  832  distribution of its assets, or the expenses of supervision,
  833  shall be paid out of the assets of the corporation agency in the
  834  hands of the office. Expenses of liquidation and approved claims
  835  for fees and assessments due the office shall be given first
  836  priority among unsecured creditors.
  837         Section 17. Section 663.171, Florida Statutes, is amended
  838  to read:
  839         663.171 Liquidation; repudiation of contracts.—
  840         (1) Except as otherwise provided in this section, when the
  841  office has taken possession of the business and property in this
  842  state of an international banking corporation, or any of the
  843  corporation’s licensed offices located in this state, the office
  844  may assume or repudiate any contract, including an unexpired
  845  lease, of the corporation:
  846         (a) To which such corporation is a party.
  847         (b) The performance of which the office, in its discretion,
  848  determines to be burdensome.
  849         (c) The repudiation of which the office, in its discretion,
  850  determines will promote the orderly administration of the
  851  corporation’s affairs.
  852         (2) After the expiration of 90 days after the date the
  853  office takes possession of the business and property of an
  854  international banking corporation, or any of the corporation’s
  855  licensed offices located in this state, any party to a contract
  856  with such corporation may demand in writing that the office
  857  assume or repudiate such contract. If the office has not assumed
  858  or repudiated the contract within 15 calendar days after the
  859  date of receipt of such demand, the affected party may bring an
  860  action in a court of competent jurisdiction in the county in
  861  which the licensed principal office of the corporation is
  862  located to obtain an order requiring the office to assume or
  863  repudiate the contract. If the office has not assumed or
  864  repudiated the contract by at least 1 month before the last date
  865  for filing claims against the corporation, such contract shall
  866  be deemed repudiated.
  867         (3) Notwithstanding subsection (2), with respect to an
  868  unexpired lease of the corporation for rental of real property
  869  under which the corporation was a lessee, if the office remains
  870  in possession of the leasehold, the office shall not be required
  871  to assume or repudiate such lease and may continue in possession
  872  of such leasehold for the remainder of the term of the lease in
  873  accordance with the terms of the lease; provided, if the office
  874  later repudiates the lease before the end of the lease term, any
  875  amounts that may be due the lessor with respect to such lease
  876  shall be calculated as provided by law.
  877         (4) Notwithstanding any other provision of this section
  878  relating to liquidating an international banking corporation, or
  879  any of the corporation’s licensed offices located in this state,
  880  the office shall not assume or repudiate any qualified financial
  881  contract that the international banking corporation bank agency
  882  entered into which is subject to a multibranch or multiagency
  883  netting agreement or arrangement that provides for netting
  884  present or future payment obligations or payment entitlements,
  885  including termination or closeout values relating to the
  886  obligations or entitlements, among the parties to the contract
  887  and agreement or arrangement and the office may, but shall not
  888  be required to, assume or repudiate any other qualified
  889  financial contract an international banking corporation bank
  890  agency entered into; provided, upon the repudiation of any
  891  qualified financial contract or the termination or liquidation
  892  of any qualified financial contract in accordance with its
  893  terms, the liability of the office under such qualified
  894  financial contract shall be determined in accordance with s.
  895  663.172.
  896         Section 18. Section 663.172, Florida Statutes, is amended
  897  to read:
  898         663.172 Liability on repudiation or termination of
  899  contracts.—
  900         (1) Except as otherwise provided in this section, upon the
  901  repudiation or termination of any contract pursuant to s.
  902  663.171, the liability of the office shall be limited to the
  903  actual direct compensatory damages of the parties to the
  904  contract, determined as of the date the office took possession
  905  of the business and property of the international banking
  906  corporation or the corporation’s licensed offices located in
  907  this state. The office shall not be liable for any future wages
  908  other than severance payments, to the extent such payments are
  909  reasonable standards, or for payments for future service, costs
  910  of cover, or any consequential, punitive, or exemplary damages,
  911  damages for lost profits or lost opportunity, or damages for
  912  pain and suffering.
  913         (2) Except as otherwise provided in this section, the
  914  liability of the office, upon the repudiation of any qualified
  915  financial contract or in connection with the termination or
  916  liquidation of any qualified financial contract in accordance
  917  with the terms of such contract, shall be limited as provided in
  918  subsection (1), except compensatory damages shall be deemed to
  919  include normal and reasonable costs of cover or other reasonable
  920  measures of damages used among participants in the market for
  921  qualified financial contract claims, calculated as of the date
  922  of repudiation or the date of the termination of such qualified
  923  financial contract in accordance with the terms of the contract.
  924  Upon the repudiation of any qualified financial contract or in
  925  connection with the termination or liquidation of any qualified
  926  financial contract in accordance with the terms of such
  927  contract, the office shall be entitled to damages and such
  928  damages shall be paid to the office upon written demand from the
  929  office to the other party or parties to the contract.
  930         (3) In the case of the liquidation of the business and
  931  property of an international banking corporation, or any of the
  932  corporation’s licensed offices located in this state, bank
  933  agency of an international banking corporation by the office,
  934  with respect to qualified financial contracts subject to netting
  935  agreements or arrangements that provide for netting present or
  936  future payment obligations or payment entitlements, including
  937  termination or closeout values relating to the obligations or
  938  entitlements, among the parties to the contracts and agreements
  939  or arrangements, the liability of the office to any party to any
  940  such qualified financial contract upon the repudiation or in any
  941  connection with the termination or liquidation of such qualified
  942  financial contract in accordance with the terms of such contract
  943  shall be limited to the lesser of:
  944         (a) The global net payment obligation; or
  945         (b) The licensed office branch-to-agency or agency-to
  946  agency net payment obligation.
  947         (4) The liability of the office to a party under this
  948  section shall be reduced by any amount otherwise paid or
  949  received by the party with respect to the global net payment
  950  obligation pursuant to such qualified financial contract which,
  951  if added to the liability of the office under subsection (1),
  952  would exceed the global net payment obligation. The liability of
  953  the office under this section to a party to a qualified
  954  financial contract also shall be reduced by the fair market
  955  value or the amount of any proceeds of collateral that secures
  956  and has been applied to satisfy the obligations of the
  957  international banking corporation to the party pursuant to such
  958  qualified financial contract. If netting under the applicable
  959  netting agreement or arrangement results in a licensed office
  960  branch-to-agency net payment entitlement, notwithstanding any
  961  provision in any such contract that purports to effect a
  962  forfeiture of such entitlement, the office may make written
  963  demand for and shall be entitled to receive from the party to
  964  such contract an amount not to exceed the lesser of the global
  965  net payment entitlement or the licensed office branch-to-agency
  966  net payment entitlement.
  967         (5) The liability of a party under this section shall be
  968  reduced by any amount otherwise paid to or received by the
  969  office or any other liquidator or receiver of the international
  970  banking corporation or licensed office with respect to the
  971  global net payment entitlement pursuant to such qualified
  972  financial contract which, if added to the liability of the party
  973  under this section, would exceed the global net payments
  974  entitlement. The liability of a party under this section to the
  975  office pursuant to such qualified financial contract also shall
  976  be reduced by the fair market value of the amount of any
  977  proceeds of the collateral that secures and has been applied to
  978  satisfy the obligations of the party to the international
  979  banking corporation pursuant to such qualified financial
  980  contract.
  981         Section 19. This act shall take effect July 1, 2010.

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