SB28 Alabama 2011 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Cam Ward
Republican
Co-Sponsor: Ben H. Brooks
Session: Regular Session 2011
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requirements; Sections 248, 249, 251, 252, 253, 254 (Recompiled Constitution of Alabama of 1901, as amended), repealed, const.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: SB28 would rewrite Alabama's banking provisions to require banks to operate under general banking law, repeal old rules, allow unlimited charter duration, and require regular bank examinations.
What This Bill Does
It reorganizes Section 247 into four parts and adds rules that banks must be established under general banking law, can have unlimited duration, and that the state or political subdivisions cannot own stock in banks or lend them credit. It requires the legislature to provide for public officer examinations of banks and for banks to report their resources and liabilities under oath at least twice a year. It repeals several old sections (248, 249, 251, 252, 253, 254) related to money, specie, termination of business, interest rates, and examinations, and leaves Section 255 and 255.01 unchanged, with an election to approve the amendment.

Who It Affects
Banks and banking institutions in Alabama would be subject to general banking laws, face periodic public examinations, and must report resources and liabilities twice a year.
State and political subdivisions would be prohibited from owning stock in banks or lending credit to banks.

Key Provisions
Amends Section 247 to require banks be established only under general banking law, allows unlimited charter duration, prohibits state/subdivisions from owning bank stock or lending credit, and requires public officer examinations with twice-yearly sworn reports of resources and liabilities; repeals Sections 248, 249, 251, 252, 253, and 254.
Keeps Section 255 and Section 255.01 unchanged and provides for an election to approve the amendment.

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