| ON THE HILL |
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Federal Legislative Update
This week IBAT Executive Vice President Steve Scurlock traveled to Washington DC for important meetings with key members of the House Ways and Means Committee in an attempt to encourage Treasury to issue final regulations authorizing banks to organize as Limited Liability Companies (or LLC's). IBAT, along with other interested parties, encouraged the FDIC to authorize deposit insurance coverage for banks choosing the LLC structure, and such was accomplished in 2003.
While this structural option may not be appropriate for many existing banks without companion legislation allowing for a tax free conversion, we hope that Treasury authorization might provide an impetus for additional de novo activity without concern for organizing under Subchapter S shareholder limitations.
IBAT pioneered pass-through tax treatment for banks with the passage of the Limited Banking Association (LBA) legislation in 1991, and has continued to play a key role in this issue. Texas banks would qualify for this tax treatment if organized as an LBA.
A delegation of Texas community bankers will travel to Washington next week to continue to work on co-sponsors for the Communities First Act, another IBAT initiative which would provide comprehensive regulatory and tax relief for community banks. The ICBA has made this legislation one its national priorities.
State Tax Restructure
After 30 tumultuous days, the Texas Legislature has passed a significant revamp of the state tax system. The next step will be rulemaking by the Comptroller of Public Accounts to implement this new business tax structure. As the ultimate implications on your bank and your customers becomes more clear, we will be communicating that information on a timely basis. Information regarding this new tax, along with an Excel worksheet, is available on our website. |
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| FROM THE IBAT LEGAL DEPARTMENT |
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Home Equity Update
The Attorney General has appealed the ACORN lawsuit on behalf of the Finance and Credit Union Commissions. The motion of appeal notes that this action suspends the effect of the trial court opinion. In plain language, that means that the interpretations are still in effect until the appeals are completed. Uncomfortable with this? Then see the IBAT Compliance Bulletin with recommendations. |
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| LEGAL EASE QUESTION OF THE WEEK |
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We closed a home equity loan recently and failed to give the borrowers a copy of everything that they had signed. They have a lawyer who is making litigation noises. Help!
To find out the answer, click on the flashing question mark. And you can also check out our searchable database of other frequently asked questions. |
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| IDENTITY THEFT |
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As highlighted in the article "MISTAKEN IDENTITY-IS THE BANK LIABLE?" in the most recent, May 2006, issue of Capitol Comments, unfortunately identity theft is alive and well and on the increase. Do you need statement stuffers to help educate your customers? IBAT has them ready to ship. Click here to order yours online today. |
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| SOLUTIONS FROM SERVICES |
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Effective June 2006, new Texas legislation, TX 607, will require all check vendors to include the option of a "Signature Required" shipping method, other than the United States Postal Service (USPS). Beginning June 2006, Deluxe will offer a Signature Required expedited delivery option to all clients and consumers through its telephone delivery channels. Click here to find out more. |
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| BAKER WEEKLY |
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The Fed’s continued hawkish rhetoric just might have been the coup de grace not only for the housing market, but for our entire economy since we are so leveraged in our homes. Read more in this week's newsletter from The Baker Group.
Although this information has been obtained from sources, which we believe to be reliable, we do not guarantee its accuracy. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. |
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| 2006 LEADERSHIP CONFERENCE |
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Moody Gardens has extended our hotel registration cutoff to the end of the day on Monday, May 22. Don’t wait any longer to register for the IBAT Leadership Conference.
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| IBAT CONVENTION SPONSORSHIPS |
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Attention bank suppliers...June 2 is the deadline for sponsors and exhibitors to be listed in the convention promotional brochure. Sponsor/Exhibitor information is available on our web site.
And a big thanks to all the banks and companies that have already signed on to support convention! |
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| IBAT EDUCATION FOUNDATION |
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Can you cite the 8 ways to craft a rich legacy for your kids? |
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ON THE EDUCATION FRONT |
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Upcoming programs co-sponsored by
IBAT and Professional Bank Services: |
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This month's Web Casts: |
June 5 - Lubbock
June 6 - Irving
June 7 - Waco
June 8 - San Antonio |
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COMING SOON |
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For a complete listing of upcoming events, click here. Meanwhile, please mark your calendar for some of our key events for 2006.
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June 15-17, 2006 - Galveston |
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August 6-11, 2006 - Lubbock |
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IBAT 32nd Annual Convention
October 1-3, 2006 - San Antonio |
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October 8-13, 2006 - Dallas | | |
