§ 11-102-301 — Examinations and examiner's reports

Colorado § 11-102-301

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Division of Banking

Text

(1) The commissioner
shall examine the books and records of every state bank as often as deemed
advisable and, to the extent required by the banking board, shall make and file in
the commissioner's office a correct report in detail disclosing the results of such
examination.

(2) The commissioner shall examine, as often as deemed advisable and to the
extent required by the banking board, any information technology functions of a
state bank or a third party serving a state bank, without regard to the location of
the functions or third party, and shall make and file in the commissioner's office a
correct report in detail disclosing the results of such examination.

(3) (a) If the commissioner deems it necessary or if required by the banking
board, the commissioner may examine the books and records of the controlling
shareholder of a state bank and any affiliated entities of the controlling
shareholder, as well as any relationship among the controlling shareholder and its
affiliated entities, for the purpose of determining the safety and soundness of the
state bank.

(b) If the controlling shareholder or affiliate's records are located outside
this state, the controlling shareholder or affiliate shall either make them available
to the commissioner at a convenient location within this state or pay the reasonable
and necessary expenses for the commissioner or the commissioner's representative
to examine the records at the place where they are located.

(c) The commissioner may designate representatives, including comparable
officials of the state in which the records are located, to inspect the records on the
commissioner's behalf.

(d) If a controlling shareholder or affiliate refuses to permit the
commissioner to make an examination, the banking board may fine such controlling
shareholder or affiliate an amount not to exceed one thousand dollars for each day
any such refusal continues.

(e) In lieu of any examination required by this subsection (3), the
commissioner may accept an audit for the previous fiscal year prepared by an
independent certified public accountant, independent registered accountant, or
other independent qualified person. If the commissioner accepts an audit prepared
by such independent person, no costs of the audit shall be borne by the
commissioner and all costs of such audit shall remain the obligation of the
controlling shareholder or affiliate.

(f) For purposes of this subsection (3):

(I) Affiliated entity or affiliate means an entity in control of a controlling
shareholder or an entity controlled by a controlling shareholder.

(II) Controlling shareholder means a shareholder in control of a state bank.

(III) In control of means that an entity or shareholder meets the same
criteria for acquiring control as is set forth in section 11-102-303 for acquiring
control of a state bank.

(4) If the commissioner deems necessary, the commissioner may examine
any corporation the majority of the stock of which is owned by a state bank or which
corporation is found by the banking board to be controlled by a state bank, but the
provisions of this subsection (4) shall not apply when such stock is held in a
fiduciary capacity by the bank.

(5) If the banking board finds any officer, director, or employee of any state
bank to be dishonest, reckless, incompetent, or acting in violation of this code, it
shall, in writing, report the facts regarding such officer, director, or employee to the
board of directors of the state bank, and, if the directors of the state bank fail or
refuse to take action on such report within ten days, the banking board may, if it
deems it advisable, send a copy of such report to the surety on the bond of said
officer.

Legislative History

Source: L. 2003: Entire article added with relocations, p. 1068, � 3, effective July 1. L. 2004: (3)(a) and (3)(f)(I) amended, p. 323, � 4, effective April 7. L. 2024: (1), (2), and (3)(a) amended, (HB 24-1351), ch. 461, p. 3200, � 14, effective August 7.