Law modifies authorized investments for banks

The law governing investments for bank and trust companies has been modified slightly.

State law allows bank or trust companies to invest no more than 10% of its “capital and surplus in shares of stock in any banks or bank holding companies wherein the stock of the banks or bank holding companies is owned exclusively by bank holding companies or banks.”

Under the new law, effective Aug, 1, 2020, banks will no longer also be required to have at least 51% of the voting stock owned or controlled by bank holding companies or banks authorized to do business in Minnesota.

Rep. Steve Elkins (DFL-Bloomington) and Sen. Rich Draheim (R-Madison Lake) are the sponsors.

HF4067/SF3589*/CH95

SF3589* / HF4067 / CH95