reglab/statecodes huggingface dataset:
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-17 - Notice And Treatment Of Joint Accounts › Section 106-17-2 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1. "Joint
				Account" means a federally insured deposit account at a bank which is held in
				the name of two or more individual persons, wherein any one of the named
				account holders may, without the signature or approval of any other persons to
				the account, obtain account funds, close the account, or otherwise withdraw the
				whole amount in the account. Such accounts include, but are not limited to,
				joint checking accounts, joint savings accounts, joint passbook savings
				accounts, joint Christmas/Vacation club accounts, and joint certificate of
				deposit accounts.
2.2. "Bank" means
				any state-chartered or federally-chartered banking institution authorized to
				conduct the business of banking in West Virginia, including any savings bank,
				or savings and loan association.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-17 - Notice And Treatment Of Joint Accounts › Section 106-17-3 - Notice

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. Opening New
				Joint Accounts -- Upon the request of a customer to open a new joint account, a
				bank shall provide notice to the joint account holders that the joint account
				may be paid out to, pledged by, or otherwise encumbered by each and any of the
				individuals to the joint account-- unless prior written notice is given by one
				of the account holders not to permit it. The wording of the notice provided by
				the banks to their customers must be approved by the Commissioner of Banking
				and printed in a clearly legible type size. A bank may comply with this
				subsection by:
3.1.1. Obtaining the signature
				of at least one joint account holder on a separate document containing the
				required disclosures and approved for such use by the Commissioner of Banking,
				and then maintaining this signed separate document either together with the
				joint account's signature card, or in another manner whereby the document is
				easily retrievable as to each joint account;
3.1.2. Incorporating the required and
				approved disclosure notice within the signature card or the account opening
				agreement with the bank; or
3.1.3.
				Establishing a procedure for ensuring that a person opening a covered joint
				account is given the required notice in a form approved by the Commissioner of
				Banking, and that fact is recorded by a checkbox marked upon the signature card
				or the account opening agreement accompanying that joint account.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-17 - Notice And Treatment Of Joint Accounts › Section 106-17-4 - Effect of Written Notice

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1.
				Closing the Account -- Upon receipt of written notice from a customer holding a
				joint account directing the bank not to allow one or more of the other named
				parties to that joint account to withdraw funds, close the account, pledge or
				otherwise encumber the account solely on that party's own signature, then the
				bank may, unless prevented by federal law, treat that notice as a request to
				end the joint account relationship and the bank may choose to close the account
				either by issuing a check in the name of the customer requesting the change, or
				by transferring the account monies to another account which is in the name of
				the customer requesting the change.
If there is any loss of accrued interest or other penalty for
				  early withdrawal associated with closing the joint account, the bank may impose
				  the loss or penalty.
4.2.
				Payment of Interest -- If the account is closed and the monies in the account
				placed in an escrow account by the bank, then interest shall accrue as is
				normally paid by the bank on its escrow accounts.
4.3. Noninterference with Bank Pledging
				Policy -- Nothing within this rule prohibits a bank from adopting as a matter
				of bank policy, a requirement that all joint account holders must agree and/or
				sign before any pledge of a joint account can be made.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-17 - Notice And Treatment Of Joint Accounts › Section 106-17-5 - Non-Liability of Bank

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. Upon
				Closing the Account -- To the extent the bank closes the account acting upon
				written notice of a joint account holder made pursuant to W. Va. Code
				'31A-4-33
				the bank has no liability to any affected joint account holder in consequence
				for taking such action.
5.2. Upon
				Following Agreement of Parties -- To the extent the bank follows or complies
				with an agreement among and between all the parties to a joint account as to
				the apportionment or disposition of funds held in the joint account, the bank
				has no liability to any affected joint account holder in consequence for taking
				such action.
5.3. Upon Compliance
				with a Court Order -- To the extent the bank follows or complies in good faith
				with an order from a court as to the apportionment or disposition of funds held
				in a joint account affected by notice pursuant to W. Va. Code '31A-4-33,
				or makes any payment or attachment to a creditor or other legal claimant
				pursuant to legal process, the bank has no liability to any affected joint
				account holder in consequence for taking such action.
5.4. Upon Taking Commercially Reasonable
				Action -- To the extent the bank, in good faith, takes all commercially
				reasonable action to promptly prevent a joint account holder from withdrawing,
				closing, pledging or otherwise encumbering such account as directed by another
				joint account holder's written notice received by the bank, the bank has no
				liability to any affected joint account holder for being unable to prevent the
				withdrawal, closing, pledge, or encumberment.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-17 - Notice And Treatment Of Joint Accounts › Section 106-17-6 - Severability

Current through Register Vol. XLI, No. 28, July 12, 2024
If any word, phrase, or provision of this rule is held to be
				  invalid, the remainder of the rule shall, to the fullest extent possible, not
				  be affected by that holding.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-17 - Notice And Treatment Of Joint Accounts › Appendix A

Current through Register Vol. XLI, No. 28, July 12, 2024
Acct. No. ___________
NOTICE TO JOINT ACCOUNT HOLDERS
This joint account is payable in both your name "or" in the
				  name of the other person(s) listed on the account (Example "Mr. Smith or Mrs.
				  Smith").
Please be advised and forewarned that:
o
All the money in this joint account may be
				  withdrawnby anyone named on this account; or may be pledged as security for a
				  loan or debt by anyone named on the account.
-- UNLESS, prior
written notice
is given to
				  the bank not to permit it.
o
Despite any notification to the bank
--
The bank may pay the entire account balance to a
				  creditor or other legal claimant pursuant to legal process.
I have read and understand the above rules about this joint
				  account.
Signature of Joint Account Holder
				  1:_______________________________
Signature of Joint Account Holder 2:
				  ______________________________
Signature of Joint Account Holder 3:
				  ______________________________
[Optional addition-- "At least one account holder must
				  sign."]
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-17 - Notice And Treatment Of Joint Accounts › Appendix B

Current through Register Vol. XLI, No. 28, July 12, 2024
NOTICE TO JOINT ACCOUNT HOLDERS
This joint account is payable in both your name "or" in the
				  name of the other person(s) listed on the account (Example "Mr. Smith or Mrs.
				  Smith").
Please be advised and forewarned that:
"
All the money in this joint account may be withdrawnby
				  anyone named on this account; or may be pledged as security for a loan or debt
				  by anyone named on the account.
-- UNLESS, prior
written notice
is given to
				  the bank not to permit it.
"
Despite any notification to the bank
--
The bank may pay the entire account balance to a
				  creditor or other legal claimant pursuant to legal process.
[This form is to be used in incorporating the language in the
				  signature card, or where a checkbox indicating the above disclosure has been
				  made is part of the signature card.]
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-18 - Legislative Rule Pertaining To Acquisition Of Property By Financial Institutions And Valuation Of Real Estate Owned By State-Chartered Banks › Section 106-18-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. -- This
				rule regulates certain conduct in the acquisition of property by financial
				institutions through foreclosure or surrender of deed or otherwise in
				satisfaction of debt previously contracted and establishes standards for the
				proper valuation by state-chartered banks of real estate obtained for sale or
				use.
1.2. Authority. -- W. Va. Code
				''31A-4-13 and 31A-2-4(c)(11).
1.3.
				Filing Date. -- April 18, 1994.
1.4. Effective Date. -- May 19,
				1994.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-18 - Legislative Rule Pertaining To Acquisition Of Property By Financial Institutions And Valuation Of Real Estate Owned By State-Chartered Banks › Section 106-18-2 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1. "Fair Value"
				means the amount, minus estimated expenses to sell, that the bank could
				reasonably expect to receive for the property in a current sale between a
				willing buyer and a willing seller, other than in a forced or liquidation
				sale.
2.2. "Cost" means the amount
				paid by the bank to purchase the property minus depreciation if the property is
				held for use by the bank and is not an asset held for sale; and means the
				amount actually paid by the bank to obtain the property at foreclosure plus the
				bank's unpaid loan balance, or in the event the property is surrendered by deed
				or otherwise obtained by the bank in satisfaction of debt previously
				contracted, the amount of the unpaid loan balance when the property is held for
				sale.
2.3. "Other Real Estate
				Owned" or "OREO" means real estate obtained by a financial institution as a
				result of a loan default or repayment of debt or otherwise and which is held
				for sale; and includes all such property so designated in accordance with
				Generally Accepted Accounting Principals (GAAP).
2.4. "Financial Institution" means those
				institutions defined as such in W. Va. Code '31A-1-2(1).
2.5. "Affiliate" means those persons or
				entities defined as such in W. Va. Code '31A-8-3(b).
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-18 - Legislative Rule Pertaining To Acquisition Of Property By Financial Institutions And Valuation Of Real Estate Owned By State-Chartered Banks › Section 106-18-3 - Valuation of Real Estate Held by State-Chartered Banks

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. Real Estate Held For Use -- In
				determining the value that a state-chartered bank places on its books for a
				real estate asset which it holds for use to conduct its banking business, the
				bank shall calculate the amount as the lesser of fair value or cost, the cost
				being the price paid by the bank to purchase the property minus
				depreciation.
3.2. Real Estate Held
				For Sale -- In determining the value that a state-chartered bank places on its
				books for a real estate asset which it obtained by foreclosure or otherwise
				obtained and holds for sale, the bank shall calculate the amount as the lesser
				of fair value or cost, the cost being the price actually paid to obtain the
				property at foreclosure plus the bank's unpaid loan balance, or in the event
				the property is surrendered by deed or otherwise obtained by the bank in
				satisfaction of debt previously contracted, the amount of the unpaid loan
				balance.
3.3. Use of GAAP
				Principals -- In determining the value of other real estate owned by the bank
				and held for sale, as well as the value of real estate held by the bank for its
				own use, and in determining the proper accounting for the disposal of the real
				estate, state-chartered banks shall use "Generally Accepted Accounting
				Principals" (GAAP) as set forth by the American Institute of Certified Public
				Accountants (AICPA).
3.4.
				Conformity With Federal Law -- Notwithstanding any contrary provision of this
				rule, state-chartered banks shall follow federal banking law and regulations in
				determining their real estate's fair value and cost.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-18 - Legislative Rule Pertaining To Acquisition Of Property By Financial Institutions And Valuation Of Real Estate Owned By State-Chartered Banks › Section 106-18-4 - Holding Period

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. Pursuant
				to W. Va. Code '31A-4-13(e)
				a state-chartered bank may hold other real estate owned for a period not to
				exceed ten years, except that the Commissioner may approve a written request by
				the bank to extend the holding period for up to an additional two years, if:
4.1.1. The bank has made a good faith attempt
				to dispose of the other real estate owned within the ten year period;
				or
4.1.2. Disposal of the other
				real estate owned within the ten year period would be detrimental to the
				bank.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-18 - Legislative Rule Pertaining To Acquisition Of Property By Financial Institutions And Valuation Of Real Estate Owned By State-Chartered Banks › Section 106-18-5 - Appraisal Requirements

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. Upon
				transfer to other real estate owned, a state chartered bank shall substantiate
				fair value by obtaining an appraisal for the property or by obtaining an
				appropriate evaluation if an appraisal is not otherwise required by federal or
				state laws or regulations.
5.2. The
				state-chartered bank shall develop a prudent collateral evaluation policy that
				allows the bank to monitor the fair value of each parcel of other real estate
				owned in a manner consistent with prudent banking practice.
5.3. Provided however, that if a
				state-chartered bank already has a recent valid appraisal or an appropriate
				evaluation on a troubled real estate loan or on a loan secured by property
				designated as in-substance foreclosure under GAAP, then the bank is not
				required to obtain another appraisal or evaluation upon acquiring ownership.
				The bank shall, though, continue to follow its prudent collateral evaluation
				policy.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-18 - Legislative Rule Pertaining To Acquisition Of Property By Financial Institutions And Valuation Of Real Estate Owned By State-Chartered Banks › Section 106-18-6 - Additional Expenditures and Notification

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. Additional expenditures on OREO -- Banks
				shall expense normal repairs and maintenance costs when incurred as per
				Generally Accepted Accounting Principals (GAAP). For other real estate owned
				that is a development or improvement project, a state-chartered bank may only
				make further prudent advances to complete the project if they:
6.1.1. Are reasonably calculated to reduce
				any shortfall between the parcel's market value and the bank's recorded
				investment amount; and
6.1.2. Are
				not made for the purpose of speculation in real estate.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-18 - Legislative Rule Pertaining To Acquisition Of Property By Financial Institutions And Valuation Of Real Estate Owned By State-Chartered Banks › Section 106-18-8 - Severability

Current through Register Vol. XLI, No. 28, July 12, 2024
If any word, phrase, or provision of this rule is held to be
				  invalid, the remainder of the rule shall, to the fullest extent possible, not
				  be affected by that holding.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. -- This
				rule establishes general provisions implementing and supplementing the "Reverse
				Mortgage Enabling Act," W. Va. Code '47-24-1, et
				seq.
1.2. Authority. -- W. Va. Code
				'
				47-24-8(b).
1.3. Filing Date. -- May 8, 1997.
1.4. Effective Date. -- June 2,
				1997.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-2 - Authorization to Make Reverse Mortgage Loans

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1. Coverage. -- This rule govern the
				ability of banks, savings institutions, credit unions and their eligible
				licensed financial affiliates to make or participate in reverse mortgages
				pursuant to W. Va. Code '47-24-1 et seq., and
				in connection therewith, to compound interest.
2.2. Exclusions. This rule shall not apply to
				persons making reverse mortgage loans under a program authorized by and under
				the supervision of a federal governmental agency or federally sponsored
				mortgage enterprise (e.g., HUD or Fannie Mae) which has been certified by the
				Commissioner of Banking and otherwise meets the criteria set forth in W. Va.
				Code '47-24-8(c).
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-3 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. "Affiliated."
				- When used in connection with a financial institution, means any company which
				controls, is controlled by, or is under common control with that financial
				institution or is the ultimate parent holding company of that financial
				institution.
3.2."Authorized
				Lender" or "Lender" B Means any bank, savings institution, or credit union in
				West Virginia or any eligible licensed financial affiliate thereof which is
				approved by the Commissioner of Banking to make reverse mortgages.
3.3. "Mortgagor." B Refers to a tenant who is
				sixty-two (62) years of age or older, or if the real property is held by
				tenants by the entirety or by joint tenancy, the youngest of whom is at least
				sixty-two (62) years of age, who own their own home free and clear or with
				insubstantial outstanding debt encumbering their real estate.
3.4. "Nonrecourse Loan." - When used in
				connection with a reverse mortgage loan, means that the only asset of the
				estate which may be used by the lender to satisfy the loan is the real property
				securing the loan and any limitation thereon as may be provided for through
				equity participation. Since by statutory definition in W. Va. Code '
				47-24-3, a
				reverse mortgage is a nonrecourse loan, no deficiency judgment may be sought or
				granted in any civil action involving a reverse mortgage.
3.5. "Tenure Loan." - Means a loan which has
				no set term for maturity, but rather is scheduled to become due upon the death
				of all mortgagor(s) so long as they maintain the secured property as their
				principal residence.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-4 - Approval for Mortgage Bankers and Other Entities to Make Reverse. Mortgage Loans

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. Approval
				Requirements. -- In addition to any other requirements of West Virginia law,
				authorized lenders must comply with the following requirements before offering
				reverse mortgage loans.
4.1.a. Every reverse
				mortgage lender authorized under this rule shall maintain a bond in favor of
				the Commissioner of Banking in an amount necessary to fund all reverse mortgage
				loan requirements anticipated over the next twelve months for loans then on the
				lender's books and those expected to be made over the next twelve months or
				three million dollars ($3,000,000), whichever is greater. The terms of the bond
				shall be stated in a manner acceptable to the Commissioner of Banking. The
				initial term of the bond shall be at least two years; and
4.1.b. The company that provides the bond as
				required in subdivision 4.1.a of this section may not be affiliated with the
				lender and shall be authorized to make surety bonds in the state of West
				Virginia.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-5 - Lending Procedures and Records Retention

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. Toll-Free Telephone Number. B All
				lenders must provide a toll-free telephone number and the name of a person to
				whom applicants and mortgagors may address questions, comments or
				complaints.
5.2. Books and Records
				Retention. B All lenders shall maintain their books and records relating to the
				making of reverse mortgage loans for a six-year period as set forth in W. Va.
				Code '31A-4-35
				in a manner permitting inspection by the Commissioner of Banking. The
				Commissioner is authorized to inspect the books and records upon reasonable
				notice. Lenders shall bear all costs and expenses relating to these
				inspections.
5.3. Notice of Agent
				for Service of Process. B The lender shall disclose within the deed of trust
				its designated agent for service of process in connection with any reverse
				mortgage loan transaction, together with the agent's address.
5.4. Mortgage Loan Forms. B All lenders
				shall, upon request, furnish copies of its mortgage loan forms and other
				documents to the West Virginia division of banking for review.
5.5. Telephone Applications Not Permissible.
				B No lender shall accept telephone applications. However a lender may solicit
				and accept inquiries about its products from potential borrowers by
				telephone.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-7 - Additional Features of Reverse Mortgage Loans

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. Escrow Account for Taxes and Insurance.
				-- The lender may maintain an escrow account for purposes of paying real estate
				taxes and insurance on the real property securing the loan. The lender shall
				calculate these escrowed amounts in conformity with the method provided by
				federal laws, regulations, or guidelines for other residential mortgage
				lenders.
7.2. Shared Appreciation.
				-- The security agreement may provide that the lender receive a percentage of
				the future appreciation of the real property securing the loan, i.e., "shared
				appreciation", in addition to or in lieu of fixed or variable rate interest .
				This appreciation shall not be considered interest for purposes of any law
				regulating the maximum rate of interest which may be charged, taken or
				received. Loans which contain "equity participation" as provided for in
				subsection 6.7 of this rule may not provide for any other forms of equity
				sharing or shared appreciation.
7.3. Mortgagor's Right to Lifetime
				Possession. B Except where the reverse mortgage has a set fixed term and
				maturity date, all mortgagor(s) shall retain the right to lifetime possession
				of the real property which serves as security for the loan, as long as the real
				property remains the mortgagor(s)= principal residence and subject to the
				conditions set forth in section 9 of this rule and W. Va. Code '47-24-4(g).
7.4. Mortgage Insurance. -- The mortgagor(s)
				may elect to maintain mortgage insurance for the principal and any accrued but
				unpaid interest. The insurance shall name the mortgagee as beneficiary. This
				insurance may not be required by the lender as a condition for granting a
				reverse mortgage loan. This insurance shall not be offered by the lender where
				the loan is to be sold into the secondary market and the lender has obtained a
				written commitment from the investor prior to the loan closing to purchase the
				loan, and has arranged for the delivery of the loan to the investor within
				forty-five days of the loan closing.
7.5. Lender's Limited Waiver of the Right of
				Foreclosure. -- Prior to offering reverse mortgage loans, all lenders shall
				prepare a form entitled "Lender's Limited Waiver of the Right of Foreclosure"
				for review and approval by the Commissioner of Banking to ensure that this
				document sets forth the termination events, as applicable, pursuant to section
				9 of this rule and W. Va. Code '47-24-4(g).
				This document shall be executed by the lender in connection with the closing of
				every reverse mortgage loan. The lender shall furnish a copy of the executed
				form to every mortgagor(s) at closing and shall keep the original form on file
				for the life of the loan.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-8 - Maintenance of Real Property Securing the Reverse Mortgage Loan

Current through Register Vol. XLI, No. 28, July 12, 2024
8.1. Structural
				Integrity. -- Mortgagor(s) shall be required to maintain the structural
				integrity of the real property securing the reverse mortgage loan in the same
				condition as the property is in at the time of closing or after repairs have
				been made for which funds have been disbursed or set aside at closing for later
				disbursement. For purposes of this section, repairs necessary to maintain the
				structural integrity shall be limited to repairing structural problems
				threatening the continued viability of the structure as a residential unit and
				those matters which, without repair, will threaten to materially damage the
				property or its market value.
8.2.
				Lender Arrangement of Repair to Maintain Structural Integrity. -- If the
				mortgagor(s) fails to make a repair required to maintain the structural
				integrity of the real property in a timely manner, the lender may arrange for
				the repair and pay for it in the following ways:
8.2.a. by deducting necessary amounts from a
				reserve fund;
8.2.b. by withholding
				from one or more monthly payments otherwise due to the mortgagor(s) no more
				than 25% of each of the monthly payments; or
8.2.c. by adding the amount to the loan
				principal.
If a reserve fund has been established for repairs, then the
				  lender must first deduct the repair costs from that fund before choosing
				  whether to proceed according to the provisions of subdivision 8.2.b or 8.2.c of
				  this rule. If a reserve fund has not been established, then the lender may
				  choose whether to proceed according to the provisions of subdivision 8.2.b or
				  8.2.c of this rule, or a combination thereof.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-9 - Termination of Reverse Mortgage Loans

Current through Register Vol. XLI, No. 28, July 12, 2024
9.1. Termination Due to Non-temporary
				Absences. -- A reverse mortgage loan may be terminated by a lender pursuant to
				W. Va. Code '47-24-4(g)(2)(B)
				where the mortgagor(s) ceases to use the real property as his or her principal
				place of residence for more than 60 consecutive days in any 365 day period
				without notifying the lender and making arrangements satisfactory to the lender
				for the maintenance of the real property and the anticipated return of the
				mortgagor(s). For purposes of this section the term "principal place or
				residence" means the living and sleeping quarters of the mortgagor. The lender
				shall not unreasonably withhold consent to the arrangements made by the
				mortgagor(s) pursuant to this section.
9.2. Termination Due to Events Jeopardizing
				Lender's Security. -- A reverse mortgage loan may only be terminated by the
				lender pursuant to W. Va. Code '47-24-4(g)(1)(D)
				for the following events as specified in the loan documents:
9.2.a. the mortgagor(s) fails to pay real
				estate taxes or maintain all insurance required pursuant to the security
				agreement;
9.2.a.1. If the mortgagor(s) fails
				to pay taxes or maintain all required insurance, then the lender shall within
				ten business days of learning of such event, give written notice of the failure
				to the mortgagor(s) and the third-party, if any, designated by the mortgagor(s)
				to receive notice of any event that could lead to termination. If the
				mortgagor(s) has not named a third-party or if the third-party can not be
				contacted, then the lender shall give written notice of the failure to the
				County Clerk of the county where the property is located. The lender must give
				the mortgagor(s) thirty (30) calendar days to cure such failure. In addition,
				the notice to the mortgagor(s) and the third party shall advise the
				mortgagor(s) of his or her right to cure the problem.
9.2.a.2. The failure to pay taxes or maintain
				all required insurance shall not be construed to be a termination event unless
				the lender has complied with the provisions set forth in paragraph (1) of this
				subdivision.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-12 - Availability of Reverse Mortgage Loans

Current through Register Vol. XLI, No. 28, July 12, 2024
12.1. Advertising and Promotional Materials.
				-- Lenders shall maintain copies of all advertising and promotional materials
				for all reverse mortgage loans for a period of two years commencing from the
				first date that the material was used to solicit reverse mortgage
				loans.
12.2. Retention of
				Applications.-- Lenders shall maintain an application log for all applications.
				In addition, the lender shall maintain rejected mortgage applications files for
				a minimum of twenty-five months from the date of notice of the
				rejection.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-13 - Administrative Penalties and Hearings

Current through Register Vol. XLI, No. 28, July 12, 2024
13.1. Disciplinary Action. -- Any person may
				be subject to disciplinary action as may be determined to be appropriate by the
				Commissioner of Banking or the West Virginia Board of Banking and Financial
				Institutions for violations of this rule or the reverse mortgage laws as
				provided in W. Va. Code '47-24-8(a).
				The penalties may include civil money penalties where imposed by a court or
				otherwise agreed to by the parties. It shall be a violation of this rule to
				engage in a pattern of conduct that demonstrates the lender's gross
				incompetence or dishonesty. Such conduct includes, but is not limited to, a
				pattern of unjustified late payments, the failure to provide proper
				disclosures, the receipt of unauthorized fees, the failure to maintain the
				required line of credit, any violation of the procedures set forth in this
				rule, and the failure to perform all required duties in an honest, fair and
				reasonable manner.
13.2.
				Administrative Hearing. B Prior to the Commissioner of Banking revoking a
				lender's license, charter or approval to make reverse mortgage loans pursuant
				to section 4 of this rule, he or she shall hold an administrative hearing.
				Revocation may also be ordered after an administrative hearing by the West
				Virginia Board of Banking and Financial Institutions.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-14 - Special Provisions Regarding Payment of Real Estate Taxes and Insurance

Current through Register Vol. XLI, No. 28, July 12, 2024
14.1. Insurance
				Selection. -- Mortgagor(s) shall have the right to choose a property insurer(s)
				subject to the lender's consent which shall not be unreasonably withheld. If
				the mortgagor(s) fails to choose a property insurer(s) in a timely manner or if
				the insurer(s) is not acceptable to the lender, then the lender may insure the
				property with a carrier of its choice.
14.2. Advance Funds for Taxes and Insurance.
				-- If there is no escrow account, then the lender may advance the funds
				necessary to pay for insurance coverage or to pay real estate taxes and to
				reimburse itself in the following ways:
14.2.a. by deducting necessary amounts from a
				reserve fund;
14.2.b. by
				withholding from one or more monthly payments otherwise due to the mortgagor(s)
				no more than 25% of each monthly payment; or
14.2.c. by adding the amount to the loan
				principal.
If a reserve fund has been established, then, to the extent
				  possible, the lender must reimburse itself from such fund before choosing
				  subdivision 14.2.b or 14.2.c above. If a reserve fund has not been established,
				  then the lender may choose whether to proceed according to subdivision 14.2.b
				  or 14.2.c or a combination of these subdivisions.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-19 - Rules For Reverse Mortgage Loans › Section 106-19-15 - Aggregate Loan Limits For Certain Lenders

Current through Register Vol. XLI, No. 28, July 12, 2024
15.1. Aggregate loan limits. -- No West
				Virginia state-chartered bank or credit union shall retain as an asset reverse
				mortgage loans in an aggregate amount exceeding ten percent of the
				institution's capital, undivided profits and surplus.
15.2. Amount Explanation. -- For purposes of
				complying with this section, the amount of each reverse mortgage loan shall be
				considered to be the loan balance at anticipated loan maturity which is not
				guaranteed or insured as to loss of principal by the United States government
				or an agency the federal government.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-20 - Treatment of Derivative Transactions Under Legal Lending Limits › Section 106-20-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1 Scope. - This
				rule provides guidance to West Virginia state-chartered banking institutions as
				to how the Division of Financial Institutions will treat derivative
				transactions under the legal lending limits set forth by W.Va. Code §
									31A-4-26(a)
				and the legislative rule pertaining to the legal lending limit, Title 106,
				Series 9.
1.2 Authority. -- W.Va.
				Code §
									31A-2-4(c)(11)
1.3 Filing Date. -- January 3, 2013
1.4 Effective Date. -- February 2,
				2013
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-20 - Treatment of Derivative Transactions Under Legal Lending Limits › Section 106-20-2 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1 "Bank" means a
				federally insured depository institution chartered under the laws of West
				Virginia.
2.2 "Derivative
				transaction" means an obligation, created by contract, agreement, swap,
				warrant, note or option that is based, in whole or in part, on the value of,
				any interest in, or any quantitative measure or the occurrence of any event
				relating to, one or more commodities, securities, currencies, interest or other
				rates, indices, or other assets.
2.3 "Loans and extensions of credit" are
				defined in the state law with respect to legal lending limits, at W.Va. Code
				§
									31A-4-26(a)(3),
				as "all direct or indirect advances of funds to a person made on the basis of
				any obligation of that person to repay the funds or repayable from specific
				property pledged by or on behalf of the person and to the extent specified by
				the Commissioner of Banking, the terms also include any liability of a
				state-chartered banking institution to advance funds to or on behalf of a
				person pursuant to a contractual commitment".
2.4 A "Contractual Commitment to Advance
				Funds" has been defined broadly in the Legislative Rule Pertaining to the Legal
				Lending Limit, 106 CSR, Series 9, Section 2.1 as "(a) an obligation on the part
				of the bank to make payments (directly or indirectly) to a designated third
				party contingent upon a default by the bank's customer in the performance of an
				obligation under the terms of that customer's contract with the third party or
				(b) an obligation to guarantee or stand as surety for the benefit of a third
				party. The term includes, but is not limited to, 'Standby Letters of Credit',
				guarantees, puts and other similar arrangements."
2.5 "Credit derivative" means a financial
				contract executed under standard industry credit derivative documentation that
				allows one party (the bank or protection purchaser) to transfer the credit risk
				of one or more exposures (reference exposure) to another party (the protection
				provider).
2.6 "Effective margining
				arrangement" means a master legal agreement governing derivative transactions
				between a bank and a counterparty that requires the counterparty to post, on a
				daily basis, variation margin to fully collateralize that amount of the bank's
				net credit exposure to the counterparty that exceeds $1 million created by the
				derivative transactions covered by the agreement.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-20 - Treatment of Derivative Transactions Under Legal Lending Limits › Section 106-20-3 - Purpose of legal lending limits law and regulations

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1 The purpose of the state legal lending
				limits law and regulations, W.Va. Code §
									31A-4-26(a),
				and 106 CSR Series 9 respectively, is to protect a bank from the credit risks
				associated with over-exposure to a single person, entity, or affiliated group
				of persons or entities through loans, extensions of credit, or other
				contractual commitments or obligations with that person, entity or affiliated
				group.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-20 - Treatment of Derivative Transactions Under Legal Lending Limits › Section 106-20-4 - Applicability of legal lending limits to derivative transactions

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1 The state legal
				lending limits law and its applicable regulations apply to derivative
				transactions entered into by banks because those transactions are obligations
				that require a bank to commit funds, by contract, agreement, swap or otherwise.
				Failure to properly limit the use of derivative transactions by a bank would
				pose a safety and soundness risk to the institution. Therefore, for purposes of
				the state legal lending limits law and regulations, derivative transactions
				shall always be included in the calculation of lending limits.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-20 - Treatment of Derivative Transactions Under Legal Lending Limits › Section 106-20-5 - Acceptable methods for calculating credit exposure from derivative transactions

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1
				Banks may elect to use one of three methods to calculate their credit exposure
				for derivative transactions: the Conversion Factor Matrix Method; the Remaining
				Maturity Method; or an Internal Model Method. These methods are interpreted by
				the Division to be the same as those contained in 12 C.F.R. Part 32.
5.2 The Division of Financial Institutions
				encourages banks to use either the Conversion Factor Matrix Method or the
				Remaining Maturity Method since they provide a simpler method for calculating
				credit exposures.
5.3 A bank may
				only use the Internal Model Method to calculate credit exposure to derivative
				transactions after obtaining the prior approval to use that model from both its
				primary federal regulator and the Division of Financial Institutions.
5.4 A bank must declare and document at the
				origination of a derivative transaction which of the permitted methods it will
				use to determine potential future exposure of the derivative. The bank may not
				change the method used to calculate potential future exposure during the life
				of that derivative. Furthermore, for each type of derivative, a bank must use
				the same method to calculate potential future exposure for that type unless it
				requests and receives prior written permission from the Division.
5.5 If the derivative transaction is a credit
				derivative and the bank has not established an effective margining arrangement,
				the bank must calculate its credit exposure to a counterparty by adding the net
				notional value of all protection purchased from the counterparty on each
				reference entity.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-20 - Treatment of Derivative Transactions Under Legal Lending Limits › Section 106-20-6 - Applicability of the West Virginia bank parity law to derivative transactions

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1 West Virginia
				Code §
									31A-8C-1,
				et seq., allows banks, upon the prior approval of the Commissioner of Financial
				Institutions, to engage in or offer any "financially related" activities,
				products or services that are offered or engaged in by national banks, federal
				thrifts, credit unions, or any state bank chartered in a state other than West
				Virginia.
6.2 Engaging in a
				derivative transaction is a "financially related" activity as that term is
				defined in W.Va. Code §31A-8C-1.
6.3 Banks may engage in derivative
				transactions using the laws or regulations applicable to national banks,
				federal thrifts, credit unions or state banks chartered in a state other than
				West Virginia terms and conditions only if they have obtained the prior
				approval of the Commissioner of Financial Institutions.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-21 - Rule Pertaining to the Fintech Regulatory Sandbox › Section 106-21-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. -- This
				rule establishes the general method for implementing West Virginia Code
				§§
									31A-8G-1,
et seq
.; it applies to all participants in the Fintech
				Regulatory Sandbox Program under that statute.
1.2. Authority. -- W.Va. Code §§
									31A-8G-3
				and
				31A-2-4.
1.3. Filing Date. -- April 5,
				2021.
1.4. Effective Date. -- May
				1, 2021.
1.5. Sunset Provision. -
				This rule shall terminate and have no further force or effect upon August 1,
				2026.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-21 - Rule Pertaining to the Fintech Regulatory Sandbox › Section 106-21-2 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1. General Rule.
				- Unless a specific definition is provided in subsection
2.2 of this section, or the context in which
				the term is used clearly requires a different meaning, the terms used in this
				rule have the definitions provided in W.Va. Code §§
									31A-1-2 and
				31A-8G-1,
et seq
.
2.2.
				Terms defined.
2.2.1. "Participant" means a
				regulatory sandbox participant as that term is defined in W. Va. Code §
										31A-8G-2.
2.2.2. "Sandbox" means the regulatory sandbox
				program as that term is defined in W. Va. Code §
										31A-8G-2.
2.2.3. "Self-regulatory organization" means
				an entity, such as a non governmental organization, which has the power to
				create and enforce stand-alone industry and professional regulations and
				standards on its own, such as the Global Financial Innovation Network and the
				American Consumer Financial Innovation Network.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-21 - Rule Pertaining to the Fintech Regulatory Sandbox › Section 106-21-3 - Objectives; Initial and Extension Applications

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. The operation of the fintech regulatory
				sandbox program shall have the following objectives:
3.1.1. The testing of innovative financial
				products or services;
3.1.2. The
				analysis of regulatory, supervisory, and consumer protection statutes and rules
				in the use of financial technology; and
3.1.3. The identification of potential
				amendments to existing laws and rules and their application to financial
				products and services that would encourage and enable innovation in financial
				services.
West Virginia Code of State Rules › Agency 106 - Banking › Title 106 - LEGISLATIVE RULE COMMISSIONER OF FINANCIAL INSTITUTIONS › Series 106-21 - Rule Pertaining to the Fintech Regulatory Sandbox › Section 106-21-4 - Consumer Protection Bond

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1.
				The consumer protection bond required by the sandbox shall be in place before
				an innovative product or service is made available to consumers.
4.2. The Commissioner may require a sandbox
				participant to increase or decrease its consumer protection bond depending upon
				the risk profile of the product or service and the number of consumers served.
				In no event shall a bond amount be less that that required by statute.