STATEMENT TO

[First Reprint]

ASSEMBLY, No. 1829

with Assembly Floor Amendments

(Proposed By Assemblyman BATEMAN)

ADOPTED: SEPTEMBER 26, 1996

      The amendments to this bill: clarify the lending authority of banks, savings banks and savings and loan associations by placing limits on the total amount of loans and extensions of credit that can be made to one borrower; provide that a bank, savings bank, or savings and loan association may take certain actions, with the approval of the commissioner, to preserve and protect any loan, obligation or investment held by it even though this action might cause the total loans and extensions of credit to one borrower to exceed the limitations previously imposed; and include savings banks and savings and loan association in the regulatory reforms contemplated in the bill for commercial banks.