HB20 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Paul DeMarco
Republican
Session: Regular Session 2011
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requirements; Sections 248, 249, 251, 252, 253, 254 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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: A constitutional amendment to overhaul Alabama's banking article by requiring banks to operate under general banking law, allowing unlimited charter duration, banning government ownership or lending to banks, and mandating regular bank examinations, while repealing several older banking provisions.
What This Bill Does
It rewrites Section 247 into four parts: banks must be established only under a general banking law; bank charters can have unlimited duration; the state or its political subdivisions cannot own stock in banks or lend credit to them; and banks must be examined by a public officer with annual, sworn reports of resources and liabilities twice a year. It also repeals multiple older sections (248, 249, 251, 252, 253, 254) that previously covered money issuance rules, gold/silver backing, termination of business, maximum interest rates, government ownership or lending to banks, and bank examinations. Section 250 was already repealed by a prior amendment, and Section 255 and 255.01 remain unchanged.

Who It Affects
Banks and banking institutions operating in Alabama, which would be required to operate under general banking law, have potentially unlimited charter duration, must be examined by a public officer, and must report assets and liabilities twice yearly; they also would be barred from state or political subdivision ownership or lending by government entities.
State and political subdivisions of Alabama, which would be prohibited from owning stock in banks or lending credit to banks.

Key Provisions
Amend Section 247 to require bank establishment under a general banking law, allow unlimited duration for bank charters, prohibit state or political subdivision ownership or lending to banks, and require public officer examinations with sworn twice-yearly reports of resources and liabilities.
Repeal Sections 248, 249, 251, 252, 253, and 254, which previously covered general vs. special banking laws, specie-backed money, money issued as notes, termination of business, maximum interest rates, government ownership or lending to banks, and bank examinations.
Maintain Section 255 (applicability) and Section 255.01 (nonresident mortgage loan brokers) without changes; note that Section 250 was repealed earlier by Constitutional Amendment 5.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Constitutional Amendments