Colorado § 11-102-103 - Banking board.

§ 11-102-103. Banking board.

(1) There is established in the division a banking board, which consists of nine members appointed by the governor, with the consent of the senate, as follows:

(a) Five members who during their tenure are, and must remain, executive officers of state banks, each of whom must have not less than five years' practical experience as an active executive officer of a bank. At least two of such members must, at the time of their appointment, represent banks in the fortieth percentile of state banks based on total asset size.

(b) One member who during the member's tenure is, and must remain, an executive officer of a business licensed pursuant to article 110 of this title 11;

(c) One member who during the member's tenure is, and must remain, the executive officer of a trust company; and

(d) Two members who serve as public members of the banking board who have expertise in finance through their current experience in business, industry, agriculture, or education.

(2) No member of the banking board shall have any interest, direct or indirect, in a bank in which another member of the banking board has any such interest. Not more than one of the members shall be an executive officer or employee of any one bank holding company or affiliate thereof.

(3) Of the members appointed under subsection (1) of this section, at all times at least one must reside west of the continental divide.

(4) The term of office of each member is four years. In the event of the death, resignation, inability to act, or refusal to act of any member of the banking board, or the occurrence of any other event that disqualifies the member from serving the remainder of the member's term on the banking board, the governor, within forty-five days thereafter, or, in the event of the governor's failure to act, the banking board shall make an interim appointment of a member to serve for the unexpired term on the banking board, subject to the consent of the senate. The governor may remove a member for cause. Any banking board member who is absent from three consecutive banking board meetings is subject to immediate removal by the governor.

(5) Each member of the banking board shall receive the same per diem compensation and reimbursement of expenses as those provided for members of boards and commissions in the division of professions and occupations pursuant to section 12-20-103 (6). Payment for all such expenses and allowances shall be made upon vouchers, which shall be filed with the department of personnel.

(6) The banking board shall meet at least once in each calendar month. The chair of the banking board may call additional meetings of the banking board upon at least seventy-two hours' notice to all members of the banking board and shall do so upon the request of two members. All members of the banking board are subject to immediate call in the event of an emergency. Four members of the banking board constitutes a quorum, and action taken by a majority of those present at any meeting at which a quorum is present is the action of the banking board. Upon the affirmative vote of a majority of those present at any meeting at which a quorum is present, one or more members may be authorized to conduct any hearing required under this code. In the event that less than a quorum of the banking board is present during the conduct of the hearing, at least a quorum of the banking board shall read the entire record before voting thereon. A member shall not participate in a proceeding before the banking board when any corporation, partnership, or unincorporated association of which the member is, or was at any time in the preceding twelve months, a director, officer, partner, employee, member, or stockholder is a party to such proceedings. A member may disqualify oneself from participating in a proceeding for any other cause deemed by the member to be sufficient.

(7) A quorum may be established by means of remote participation, which must be recorded in the banking board's minutes. Upon the affirmative vote of a majority of those present at any meeting at which a quorum is present, the banking board may hold an executive session to consider certain matters required by statute to be kept confidential under this code. Any agenda and the minutes of executive sessions shall be kept confidential by the banking board.

(8) The division shall provide such clerical, technical, and legal assistance as the banking board may require.

(9) The members of the banking board shall, before entering upon the discharge of their duties, in addition to any oath required by the state constitution, take and subscribe an oath to keep secret all information acquired by them in the discharge of their duties, except as may be otherwise required by law. Willful violation of this oath shall be a criminal offense.

(10) The banking board shall elect a chair from among its members to serve for a term not exceeding two years, as determined by the banking board. No chair is eligible to serve as such for more than two successive terms. In addition to the amounts received pursuant to subsection (5) of this section, the chair shall receive per diem compensation and reimbursement of expenses in the amounts provided by section 12-20-103 (6) for each day spent in attending to the duties of the banking board.

(11) The banking board may enter into contracts with temporary employees and for the provision of such other services as it may deem necessary in accordance with section 13 of article XII of the state constitution.

(12) Repealed.

Source: L. 2003: Entire article added with relocations, p. 1062, § 3, effective July 1. L. 2004: (1)(a), (2)(a), and (4) amended and (13) added, p. 21, §§ 3, 1, effective March 3. L. 2009: (2)(b) amended, (HB 09-1053), ch. 159, p. 687, § 3, effective August 5. L. 2013: (13) amended, (SB 13-154), ch. 282, p. 1463, § 2, effective July 1. L. 2017: (2)(b) amended, (SB 17-226), ch. 159, p. 589, § 5, effective August 9. L. 2019: (6) and (11) amended, (HB 19-1172), ch. 136, p. 1660, § 63, effective October 1. L. 2022: Entire section amended, (SB 22-013), ch. 2, p. 10, § 10, effective February 25. L. 2024: (1)(a) and (6) amended and (12) repealed, (HB 24-1351), ch. 461, p. 3194, § 2, effective August 7.

Editor's note: This section is similar to former § 11-2-102 as it existed prior to 2003.

ANNOTATION

Annotator's note. Since § 11-102-103 is similar to § 11-2-102 as it existed prior to the 2003 recodification of the "Colorado Banking Code", articles 101 to 109 of title 11, relevant cases construing that provision have been included in the annotations to this section.

Quorum must be present to approve action of the banking board. The general assembly intended that any and all actions of the banking board may be approved at a meeting at which at least a quorum is present, and that any such action taken by a majority of the quorum shall be the action of the board. There are no exceptions to its applicability and therefore it governs all acts of the banking board, including the granting of a state bank charter. Peoples Bank v. Banking Bd., 164 Colo. 564, 436 P.2d 681 (1968).

Banking board member is not disqualified from participating in consideration of issues where none of the members of the banking board had any direct, personal, financial, or official stake in the decision to seize and liquidate the assets of the bank, and where there was no other conflict of interest sufficient to overcome the presumption of fairness. First Bank v. Dept. of Regulatory Agencies, 852 P.2d 1345 (Colo. App. 1993).

Applied in Walton v. Banking Bd., 36 Colo. App. 311, 541 P.2d 1254 (1975).