New Jersey Administrative Code › Title 3 - BANKING › Chapter 6 - GENERAL PROVISIONS › Subchapter 12 - STATE BANK AND SAVINGS BANK PARITY › Section 3:6-12.1 - State bank and savings bank parity with Federal and out-of-State institutions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Banks and
				savings banks may exercise those powers, rights, benefits or privileges
				authorized as of January 20, 2004 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 bank or Federal savings
				associations may exercise those powers, rights, benefits or privileges.
				Pursuant to P.L. 2000, c.
				69,
				§3 (N.J.S.A.
				17:9A-24b.1 ), banks and savings banks may exercise such powers, rights,
				benefits or privileges, consistent with (c) below, notwithstanding the
				provisions of
				17:9A-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) Banks and savings banks may exercise
				those powers, rights, benefits or privileges as of January 20, 2004 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 banks and
				savings banks generally, or the bank or savings bank 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 bank or savings bank on one or more of the grounds specified in (d) below.
				Pursuant to P.L. 2000 c.
				69,
				§3 (N.J.S.A.
				17:9A-24b.1 ), banks and savings banks may exercise such powers, rights,
				benefits or privileges, consistent with (c) and (d) below, notwithstanding the
				provisions of
				17:9A-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 bank or savings bank 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 banks and
				savings banks, 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 banks and savings banks 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
				17:9A-266 et seq., and the power
				to require reports and examination by the Department pursuant to
				17:9A-252 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 Home Ownership Security Act
				of 2002 (46:10B-22 et seq.).