Regulatory Alerts1995-10-31
Added · Updated
Alabama State Banking Department Memorandum on Debt Cancellation Contracts
The Alabama State Banking Department issued a memorandum to state-chartered bank CEOs clarifying the regulatory status of debt cancellation contracts. It states that while the Alabama Banking Code does not expressly authorize these contracts, banks may offer them under § 5-5A-18.1 by exercising powers equivalent to national banks. Consequently, state-chartered banks must submit a written request with a detailed plan to the Superintendent of Banks for prior approval before offering such contracts.