HB435 Alabama 2010 Session

Summary

Primary Sponsor

Gregory Canfield

Republican

Co-Sponsors

Paul DeMarcoSteve McMillan

Session

Regular Session 2010

Title

Banks and banking, Section 247, (Recompiled Constitution of Alabama of 1901, as amended), am'd. to prohibit establishment of a bank except by general banking law, to provide for unlimited duration, to prohibit political subdivisions from owning stock or lending credit, and to provide for examination requirements; Sections 248, 249, 251, 252, 253, 254 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const. amend.

Summary

HB435 would rewrite Alabama's banking rules in the constitution to require banks to be created under general banking law, end charter duration limits, bar state and local governments from owning or lending to banks, and require regular bank examinations, while repealing several older banking provisions.

What This Bill Does

If enacted, the bill would (1) require any bank to be established only under a general banking law, (2) allow bank charters to exist indefinitely without renewal, (3) prohibit the state or political subdivisions from owning stock in banks or lending to them, and (4) require public officer examinations of banks and sworn reports of resources and liabilities at least twice a year. It would also repeal multiple existing constitutional sections related to banking rules and money, while leaving certain provisions (255 and 255.01) unchanged.

Who It Affects

• Banks and banking institutions would have to operate under a general banking framework, could maintain unlimited charter duration, and would be subject to regular public examinations and biannual financial reporting.
• The state and its political subdivisions would be barred from owning bank stock or providing credit to banks, tightening government interactions with the banking sector.

Key Provisions

• Amends Section 247 to require establishment of banks only under general banking law, removes limits on charter duration, and prohibits state or political subdivision ownership or lending to banks; mandates public examinations and biannual sworn reports of resources and liabilities.
• Repeals Sections 248, 249, 251, 252, 253, and 254 of Article XIII, removing prior rules on general banking, specie-based money, money redeemable in gold/silver, termination of business, maximum interest rate, ownership restrictions by state/subdivisions, and bank examinations.
• Notes that Section 255 and 255.01 would remain unchanged.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments