SB458 Alabama 2010 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2010

Title

Banks and banking, Section 247 (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requirements; Sections 248, 249, 251, 252, 253, 254 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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

A proposed constitutional amendment would replace Alabama’s old banking provisions with a general banking framework, allowing unlimited bank charter duration and barring state ownership or lending to banks.

What This Bill Does

It subdivides Section 247 into four parts and adds rules that banks must be established only under a general banking law, may have unlimited charter duration, and that the state or political subdivisions cannot own stock in banks or lend credit. It also requires a public officer to examine all banks and banking institutions and to require reports under oath of their resources and liabilities at least twice a year. The bill repeals several old provisions about banking and money, including rules on general banking standards, money in circulation, specie payments, termination of banks, maximum interest, and government examinations and reports. It retains Sections 255 and 255.01 unchanged and describes the election process for adoption.

Who It Affects

• Banks and banking institutions operating in Alabama would be governed under general banking law, could have unlimited charter duration, must be examined by a public officer, and could not be owned by the state or have state credit lent to them.
• State and local governments would be prohibited from owning bank stock or lending credit to banks.

Key Provisions

• Amend Section 247 to require establishment of banks only under general banking law, allow unlimited charter duration, and bar state or political subdivisions from owning stock or lending credit to banks.
• Require examination of all banks and banking institutions by a public officer, with at least twice-yearly sworn reports of resources and liabilities.
• Repeal Sections 248, 249, 251, 252, 253, and 254 of Article XIII, removing the old rules on general banking, money, specie payments, termination of business, maximum interest, and government examinations/reports.
• Note that Section 250 was repealed by Constitutional Amendment 5, and Sections 255 and 255.01 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