Provides relative to the name of a bank. (gov sig)

Senate Bill 175 amends Louisiana Revised Statutes Title 6, Section 412, which governs unauthorized use of banking-related terminology. The bill adds a new subsection (E) to the statute and amends subsection (D) to create an exception allowing FDIC-insured depository institutions operating in Louisiana to use trade or assumed names that differ from their corporate legal names. The core mechanism requires that when an FDIC-insured bank uses a trade or assumed name, the institution must simultaneously use its corporate name or title alongside the trade name, and all usage must comply with applicable federal laws and regulations. The amendment preserves existing prohibitions on non-licensed entities from using terms like "bank" while carving out this specific pathway for federally insured institutions to operate under alternative names.

The practical effect of this legislation is to provide flexibility for FDIC-insured banks operating in Louisiana to market and conduct business under trade names or assumed names that may differ from their legal corporate designations, provided they maintain transparency by displaying both names together. This permits banks that have undergone mergers, acquisitions, or rebranding to operate under consumer-facing names different from their charter names while ensuring regulatory clarity. The requirement that the corporate name appear alongside the trade name protects consumers and regulators by maintaining a clear link between the operating entity and its legally chartered identity. Banks seeking to use such alternative names must first obtain approval or ensure compliance under federal regulatory frameworks administered by the FDIC and other applicable federal banking authorities.

The amendment operates within the existing statutory framework of R.S. 6:412, which has long protected the banking industry by restricting non-licensed entities from adopting banking-related nomenclature such as "bank," "banker," or "banking." By adding subsection (E), the statute also clarifies that the use of trust-related terminology such as "trust," "trustee," or "trust company" is not prohibited when such language does not purport to represent engagement in a general trust business. This change reflects Louisiana's interest in aligning state banking law with federal banking practice and regulatory flexibility, particularly as the FDIC oversees thousands of institutions operating across state lines with varying corporate and operating names. The bill becomes effective upon gubernatorial signature or the expiration of the signature period under Article III, Section 18 of the Louisiana Constitution.