New Jersey Administrative Code › Title 3 - BANKING › Chapter 26 - GENERAL PROVISIONS FOR STATE SAVINGS AND LOAN ASSOCIATIONS › Subchapter 4 - STATE ASSOCIATION PARITY › Section 3:26-4.1 - State Association parity with Federal and out-of-State institutions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) State
				associations as defined in
				17:12B-5 may exercise those
				powers, rights, benefits or privileges authorized as of May 2, 2005 and,
				thereafter, for national banks, Federal savings banks or Federal savings
				associations, either directly or through a financial subsidiary or other
				subsidiary, to the same extent and subject to the same limitations as national
				banks, Federal savings banks or Federal savings associations may exercise those
				powers, rights, benefits or privileges. Pursuant to
				P.L.
				2000 c. 69,
				§10 (17:12B-48(21)  ),
				State associations may exercise such powers, rights, benefits or privileges
				consistent with (c) and (d) below, notwithstanding the provisions of
				17:12B-1 et seq. or any other law.
				If, under Federal law, the exercise of a power, right, benefit or privilege is
				subject to compliance with state law in the state in which the national bank,
				Federal savings bank or Federal savings association exercises the power, right,
				benefit or privilege, then the exercise of the power, right, benefit, or
				privilege in this State shall be subject to New Jersey law.
(b) State associations may exercise those
				powers, rights, benefits or privileges as of May 2, 2005 and thereafter
				authorized for out-of-State banks, savings banks or savings associations either
				directly or through a financial subsidiary or other subsidiary, to the same
				extent and subject to the same limitations as out-of-State banks, savings banks
				or savings associations may exercise those powers, rights, benefits or
				privileges, provided that, before exercising any such power, right, benefit or
				privilege, the Commissioner has approved, by rule, the exercise of such a
				power, right, benefit or privilege by State associations generally, or the
				State association provides notice of its intent to exercise such a power,
				right, benefit or privilege to the Commissioner and, on a case by case basis,
				the Commissioner either approves the activity or does not determine, within 45
				days of his or her receipt of such notice, that the power, right, benefit or
				privilege is not to be exercised by the State association on grounds of safety
				and soundness or on other grounds as provided in this rule. Pursuant to
				P.L.
				2000 c. 69,
				§10 (17:12B-48(21)  ),
				State associations may exercise such powers, rights, benefits or privileges,
				consistent with (c) and (d) below, notwithstanding the provisions of
				17:12B-1 et seq. or any other law.
				If the exercise of a power, right, benefit or privilege is subject to
				compliance with state licensing law in the state to which the institution looks
				for the authority to exercise the power, right, benefit or privilege, then the
				exercise of the power, right, benefit, or privilege in this State shall be
				subject to applicable New Jersey licensing law regulating the conduct in which
				the State association seeks to engage.
(c) "Power, right, benefit or privilege"
				shall not mean any activity that would fail to comply with or would violate:
1. The New Jersey Code of Criminal Justice,
				2C:1-1 et seq., including, but not
				limited to, the criminal usury limits established at
				2C:21-19 as applied to loan
				products;
2. New Jersey statutes
				and rules providing for the structure and corporate governance of State
				associations, including, but not limited to, statutes and rules governing
				amendments of certificates of incorporation, adoptions of bylaws, rights of
				shareholders or members, membership of boards of directors, closing of branch
				offices, establishing of de novo branch offices by foreign banks, applications
				where there is a supervisory concern, and requests for approvals or no
				objection opinions where there is a supervisory concern;
3. New Jersey statutes and rules providing
				the Department with supervisory powers over State associations with regard to
				safety and soundness and other matters, including, but not limited to, the
				power to issue orders and apply for relief from a court of competent
				jurisdiction established at
				17:12B-177 et seq., and the power
				to require reports and examination by the Department pursuant to
				17:12B-171 et seq. and similar
				law;
4. The provisions of
				17:16N-1 et seq. and any rules
				regarding Consumer Checking Accounts; and
5. The New Jersey Homeownership Security Act
				of 2002 (46:10B-22 et seq.).