Annual Report Requirement for Commonwealth Banks
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In a move to enhance transparency and accountability in the banking sector, the director of the Department of Commerce and Labor is mandated to submit an annual report to the Governor and the legislature within 60 days after the end of each fiscal year.
Purpose of the Report
The report provides a summary of major changes in the banking business since the previous report and a statement of the most recent reported condition of each bank. Additionally, the director may make recommendations for banking legislation.
Banking Organization and Structure
According to Article 1 of Chapter 2 of the Commonwealth Banking Code, a bank must be chartered by the Commonwealth and have paid-in-cash capital of at least $500,000. A Commonwealth bank has the power to:
- Exercise general corporate powers as provided in its charter and division
- Sue and be sued
- Make and alter bylaws
- Elect or appoint officers and agents
- Adopt and operate bonus and pension plans for employees
Fiduciary Powers
A Commonwealth bank can act as a fiduciary in various capacities, including:
- Registrar or transfer agent
- Fiscal agent
- Attorney-in-fact
Additionally, banks operating under this division have the power to receive, manage, and apply sinking funds.
Applicability of Article
Unless otherwise specified, Article 1 of Chapter 2 applies only to Commonwealth banks chartered by the Commonwealth. The code defines a “bank” as a bank chartered by the Commonwealth.
Commission Comment
The Commission notes that references to the “director” of the Department of Commerce and Labor should be read in light of Executive Order 94-3, which reorganized the executive branch, changed agency names, and effectuated other changes. The Commission also points out that the Self-Employed Individuals Tax Retirement Act of 1962 is codified in Title 26 of the United States Code.
Contact Us
For more information on the Commonwealth Banking Code, please contact the Department of Commerce and Labor at [insert contact information].