Newspaper article THE JOURNAL RECORD
Savings & Loan Interstate Bill Introduced in House
If it becomes law, House Bill 2060 would authorize:
- Immediate interstate sales of failed and failing savings and loan associations in Oklahoma, if regulators certified that no Oklahoma buyer could be found.
- Effective July 1, 1987, interstate acquisitions of healthy savings and loan associations by thrifts from states giving reciprocity to Oklahoma-based thrifts.
- A four-year waiting period - after the first acquisition - before an out-of-state firm could expand, if that firm is from a non-reciprocal state.
Rep. Benny Vanatta, D-Sapulpa, the bill's principal author, said he expects the bill will be assigned today to the House Banking and Finance Committee, which he chairs.
The provision for interstate rescues of failing Oklahoma savings and loan institutions makes this model legislation, according to Mike Toalson, executive vice president of the Oklahoma League of Savings Institutions.
The Garn-St. Germain Act of 1982 permits interstate sales of failed savings and loan associations, but has no provision for sales of failing thrifts.
"This bill perhaps will save those on the border line," Toalson said.
"This bill will let those "S&Ls" look beyond Oklahoma's borders for capital so they don't go belly up," Toalson said. "Let's not lose 19 "S&Ls" like we have 26 banks. …