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Massachusetts Division of Banks issues guidance to mutual institutions on annual meetings
On June 12, the Massachusetts Office of Consumer Affairs and Business Regulation, Division of Banks, issued industry guidance regarding annual meetings for Massachusetts state-chartered mutual banks and subsidiary banks of a Massachusetts mutual holding company. Mutual institutions that have not yet held their annual meeting this year may use remote communications to conduct the annual meeting virtually or as a hybrid meeting that includes limited in-person attendance of depositors or corporators, provided certain requirements are met. Alternatively, such mutual institutions may postpone an in-person annual meeting until after the state of emergency has ended. Mutual institutions that elect to offer remote annual meetings must comply with certain requirements in the guidance.
West Virginia Division of Financial Institutions extends remote working
West Virginia’s Department of Financial Services Commissioner extended guidance enabling employees of regulated entities to work remotely through August 1 as a result of the Covid-19 crisis. The initial guidelines were announced on March 13 (previously discussed here and here) and were set to expire on June 15.
Virginia Bureau of Financial Institutions issues policy statement regarding Covid-19
The Virginia Bureau of Financial Institutions issued a policy statement encouraging supervised financial institutions to work constructively to mitigate the impacts of Covid-19 on Virginia consumers and businesses. The bureau advised licensees that data security, internal controls, and adherence to safe and sound lending practices are of paramount importance in alternative work programs. The bureau also will work with financial institutions when scheduling examinations and will place an increased emphasis on off-site reviews and examinations. The policy statement is effective through July 1, 2020, unless modified or withdrawn.
Louisiana Office of Financial Institutions, Securities Division, issues update on operations
On June 5, the Louisiana Office of Financial Institutions, Securities Division, extended through June 26, 2020 an earlier announcement regarding its operations during the statewide “stay at home” order, which we previously covered here. The announcement provides that: (i) paper copies of registration documents and payment of related fees can be mailed to the LOFI, and certain filings can be submitted electronically; (ii) examinations are being conducted remotely using phone and email correspondence in lieu of traditional on-site examinations; (iii) licensing staff continue to process licensing and registration applications through the CRD/IARD systems; and (iv) enforcement staff are limiting in-person contacts with witnesses and regulatory partners, and are using telecommunications technology to complete tasks remotely.
Louisiana Office of Financial Institutions issues declaration to state-chartered financial institutions
On June 5, the Louisiana Office of Financial Institutions issued an emergency declaration granting parity to Louisiana state-chartered financial institutions with federally-chartered financial institutions as it relates to loans made under the Small Business Administration’s Paycheck Protection Program. As such, loans made under the program will be excluded from the legal lending limits of Louisiana state-chartered institutions. This guidance follows previous guidance issued by Louisiana on the same topic, which was previously discussed here. Further, the emergency declaration grants state-chartered financial institutions the authority to (i) temporarily close an existing branch office; (ii) establish a temporary location; and (iii) reduce operations, products, and services. Additionally, state-chartered financial institutions unable to comply with Louisiana law regarding annual meetings may, provided certain requirements are met, (i) permit shareholders or members to participate by means of remote communication or (ii) hold the annual meeting without a physical location. The declaration is effective until June 26, 2020, unless terminated sooner.
Nevada Financial Institutions Division advises collection agency licensees that they may operate
On June 4, the Nevada Department of Business and Industry, Financial Institutions Division advised collection agency licensees that they may operate their business while following all remaining emergency directives issued by the governor, state agencies, justice court orders, and all applicable state and federal laws. The issuance follows guidance issued on March 20, which deemed a collection agency a non-essential business under the Nevada governor’s orders to close non-essential business (previously discussed here).
Office of the Inspector General issues statement on Coronavirus oversight challenges
The Office of the Inspector General of the Federal Reserve Board, which provides independent oversight of both the Consumer Financial Protection Bureau and the Federal Reserve Board, issued a statement on Coronavirus pandemic oversight challenges. The statement identifies areas of focus for the OIG, including coordination between the Reserve Banks, data aggregation, and monitoring and tracing the unique features associated with specific programs (e.g., the Paycheck Protection Program). The OIG is also actively monitoring, among other things, measures taken to encourage financial institutions to lend consistent with specific lending programs and the extent to which pandemic response lending efforts reach intended recipients and communities. The OIG has also expanded testing of critical information technology systems and has broadened the scope of security reviews.
New Hampshire issues guidance for reopening of branches of financial institutions
The New Hampshire Banking Department has issued guidance on the reopening of branches and other financial institution offices that were closed due to the Covid-19 pandemic. Banks or credit unions planning to reopen branch offices or other offices are requested to provide notice to the in the manner specified in the guidance and must also ensure that customers and members are aware of any planned reopening. Banks and credit institutions are urged to consult Emergency Order 40 for guidance on precautions to protect the safety of the institutions’ staff and customers.
FDIC updates FAQs for financial institutions affected by Covid-19
On May 20, the Federal Deposit Insurance Corporation (FDIC) updated its frequently asked questions issued to financial institutions affected by Covid-19 (previously covered here, here, and here). The updated FAQs provide guidance on Community Reinvestment Act requirements, including, among other things, (i) whether Covid-19-affected states and jurisdictions are considered CRA designated disaster areas, (ii) how activities undertaken in response to Covid-19 that are responsive to community needs will be considered in CRA examinations, and (iii) whether bank loans made under the Paycheck Protection Program or Main Street Lending Program are eligible for CRA consideration.
Colorado Banking and Financial Services commissioners provide guidance on Safer at Home orders
On May 15, the Colorado Banking and Financial Services commissioners provided additional guidance on the Safer at Home orders. The commissioners continue to encourage Colorado state-chartered financial institutions to work with affected borrowers and customers, and provide payment relief to consumers impacted by Covid-19. For example, financial institutions are encouraged to waive fees for services (e.g., overdraft fees, ATM fees) and provide accommodations such as eliminating minimum balance requirements on accounts and increasing daily withdrawal limits on ATMs.