§ 11-105-101 — Branch banks and practices prohibited

Colorado § 11-105-101

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Banking Practices

Text

(1) Any state bank or
state bank chartered in another jurisdiction, upon application to and approval by the
banking board, may operate one or more loan production offices as defined by the
banking board.

(2) For purposes of this subsection (2), elementary school means any
public or private school with students in kindergarten through eighth grade. A bank
that both opens accounts and accepts students' deposits at elementary schools in
conjunction with other educational programs presented by the bank is not engaged
in branch banking as defined in section 11-101-401 (10). Any bank establishing a
location in an elementary school pursuant to this section shall receive the prior
approval of the banking board. Approval shall be granted if the program is
predominantly educational.

(3) Any other facility, agency, or paying or receiving station operated by any
bank or agent shall constitute a branch within the meaning of this section. Any
facility authorized by the United States treasury department shall not be subject to
the limitations of this section.

(4) As authorized under section 10-2-601 (2), C.R.S., any bank may, pursuant
to federal law or under such rules as may be prescribed by the banking board and
subject to rules promulgated by the commissioner of insurance concerning the sale
of insurance by financial institutions as provided in section 10-2-601, C.R.S., as such
laws and rules are applicable to the bank, depending upon whether such bank is a
national bank or a state bank, act as the agent for any fire, life, or other insurance
company authorized to do business in this state by soliciting and selling insurance
and collecting premiums on policies issued by such company. For services so
rendered, such bank may receive such fees or commissions as may be agreed upon
between the bank and the insurance company for which it may act as agent. For
purposes of this subsection (4), bank shall have the same meaning as set forth in
section 11-101-401 (3).

(5) Except as provided in the federal Gramm-Leach-Bliley Act, as
amended, Pub.L. 106-102, 113 Stat. 1388, it is unlawful for a bank or an officer,
director, employee, or affiliate of a bank to engage in the business of issuing,
floating, underwriting, distributing, or promoting the sale of stocks, bonds, or other
securities or to be an officer, trustee, director, employee, stockholder, or partner of
any person engaged principally in any such business. Additional exceptions to this
section shall be securities issued or guaranteed as to principal and interest by the
United States or any agency thereof or by a state or territory of the United States or
a subdivision, instrumentality, or public authority organized under the laws of such
state or territory or pursuant to an interstate compact between two or more states.

(6) Except as expressly permitted in this code, a state bank shall not assume
liability as an insurer, nor shall it become a guarantor or endorser of any security
instrument or obligation in which, or with respect to which, it has no property
interest.

(7) An officer, director, employee, or agent of a state bank shall not
knowingly maintain, or authorize the maintenance of, any account of the bank in a
manner that does not conform to the requirements prescribed by this code or by the
commissioner or the banking board.

(8) No officer, director, employee, or agent of a state bank shall obstruct, or
endeavor to obstruct, a lawful examination of the institution by an officer or
employee of the division.

Legislative History

Source: L. 2003: Entire article added with relocations, p. 1112, � 3, effective July 1. L. 2004: (1) amended, p. 323, � 5, effective April 7. L. 2007: (5) amended, p. 2021, � 14, effective June 1. L. 2013: (1) amended, (SB 13-154), ch. 282, p. 1466, � 12, effective July 1. L. 2024: (7) amended, (HB 24-1351), ch. 461, p. 3205, � 27, effective August 7.