reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 3 - ORGANIZATION AND OPERATION OF SMALL BUSINESS INVESTMENT COMPANIES › Section 3:11-3.1 - Terms of organization

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Banks are
				authorized to organize or to participate in the organization and to operate, in
				accordance with
				17:9A-27(a),
				small business investment companies formed under the Small Business Investment
				Act of 1958
				15 U.S.C. §§
										661 et seq., under the following terms and
				conditions.
1. No bank shall hold shares of
				stock in more than one such company without prior approval of the
				Commissioner;
2. A bank shall in no
				event hold shares of stock in any such company in an amount aggregating more
				than five percent of the capital funds of the bank;
3. No bank shall make a loan or advance to or
				purchase debentures of any such company if the aggregate of such loans,
				advances and purchases, together with the stock investment of the bank in such
				company, will exceed more than 15 percent of the capital funds of the
				bank;
4. No bank shall make a loan
				to any individual, partnership, corporation or association when the amount of
				that loan together with the following will exceed more than 15 percent of the
				capital funds of the bank;
i. The amount of
				the liabilities of any nature of that individual, partnership, corporation or
				association to any small business investment company; and
ii. The acquisition cost of any shares of
				that corporation owned by the small business investment company in which the
				bank has controlling interest.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 3 - ORGANIZATION AND OPERATION OF SMALL BUSINESS INVESTMENT COMPANIES › Section 3:11-3.2 - Violations

Current through Register Vol. 56, No. 14, July 15, 2024
The Commissioner may direct a bank to divest its ownership
				  in any small business investment company for failing to comply with the terms,
				  conditions and limitations required by
				  3:11-3.1.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 3 - ORGANIZATION AND OPERATION OF SMALL BUSINESS INVESTMENT COMPANIES › Section 3:11-3.3 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Bank" means a bank as defined in
				  17:9A-1(1).
"Capital funds" is as defined in section 60 of the Banking
				  Act of 1948, as amended, and includes any effective regulations pursuant to
				  same.
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance.
"Controlling interest" is as defined in section 71 of the
				  Banking Act of 1948, as amended.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 4 - INVESTMENT BY BANK IN CAPITAL STOCK OF BANK PRINCIPALLY ENGAGED IN INTERNATIONAL OR FOREIGN BANKING › Section 3:11-4.1 - Authorization

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Banks are
				authorized to subscribe for purchase and hold stock of one or more banks or
				corporations chartered or incorporated under the laws of the United States or
				of any state thereof, and principally engaged in international or foreign
				banking, as defined and authorized under section 25(a) of the Federal Reserve
				Act, provided that:
1. Qualification to
				invest: The total capital stock and surplus of the bank making such investment
				or investments shall not be less than $ 1,000,000;
2. Limitations on investment: The total
				amount invested in all such banks or corporations shall not exceed 10 percent
				of the total capital stock and surplus of the bank.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 4 - INVESTMENT BY BANK IN CAPITAL STOCK OF BANK PRINCIPALLY ENGAGED IN INTERNATIONAL OR FOREIGN BANKING › Section 3:11-4.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Bank" means a bank as defined in
				  17:9A-1(1).
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 5 - INVESTMENT BY BANK, SAVINGS BANK OR STATE ASSOCIATION IN CAPITAL STOCK OF DOMESTIC OPERATING SUBSIDIARIES › Section 3:11-5.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Bank" means a bank as defined in
				  17:9A-1(1), a
				  savings bank as defined in
				  17:9A-1(13)  and
				  a State association as defined in
				  17:12B-5(1).
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance.
"Department" means the Department of Banking and Insurance.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 6 - APPROVED STOCK INVESTMENT › Section 3:11-6.1 - Approval of limited investment in Minbanc Capital Corporation

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Banks are
				authorized to subscribe for, purchase and hold common stock in the Minbanc
				Capital Corporation.
(b) Such
				investment shall not exceed two percent of the total capital stock and surplus
				of the bank.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 6 - APPROVED STOCK INVESTMENT › Section 3:11-6.2 - Surplus defined

Current through Register Vol. 56, No. 14, July 15, 2024
Surplus as defined in this regulation shall include surplus,
				  undivided profits, reserve for contingencies, other capital reserves and
				  capital notes and debentures.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 6 - APPROVED STOCK INVESTMENT › Section 3:11-6.3 - Approval of investment in Student Loan Marketing Association

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Banks are
				authorized to subscribe for, purchase and hold common stock in the Student Loan
				Marketing Association.
(b) Savings
				banks are authorized to subscribe for, purchase and hold common stock in the
				Student Loan Marketing Association.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 6 - APPROVED STOCK INVESTMENT › Section 3:11-6.4 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Bank" means a bank as defined in
				  17:9A-1(1).
"Savings bank" means a savings bank as defined in
				  17:9A-1(13).
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.1 - Definition of capital funds

Current through Register Vol. 56, No. 14, July 15, 2024
Capital funds as defined in
				  17:9A-60 is expanded to include
				  contingent reserves.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.2 - Definition of contingent reserves

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Contingent
				reserves of a bank is defined to include:
1.
				Reserve for loan losses or bad debts;
2. Valuation reserves for
				securities;
3. Reserve for
				contingencies; and
4. Any other
				capital accounts excluding specifically allocated reserves or reserves for
				known specific charges.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.3 - Limitations on obligations as endorser or guarantor of installment consumer paper

Current through Register Vol. 56, No. 14, July 15, 2024
Obligations as endorser or guarantor of installment consumer
				  paper which carries a full recourse endorsement, repurchase agreement or other
				  unconditional guaranty by the seller may exceed 15 percent but not 25 percent
				  of the capital funds of the bank.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.4 - Exclusion of obligations from 25 percent limitation

Current through Register Vol. 56, No. 14, July 15, 2024
If the bank's files or the knowledge of its officers of the
				  financial condition of each maker of such obligations is reasonably adequate,
				  and upon certification by an officer of the bank designated for that purpose by
				  the board of directors of the bank that the responsibility of each maker of
				  such obligations has been evaluated and the bank is relying primarily upon each
				  such maker for the payment of such obligations, the limitations of
				  17:9A-62 as to the obligations of
				  each such maker shall be the sole applicable loan limitation.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.5 - Retention of certification

Current through Register Vol. 56, No. 14, July 15, 2024
The bank officer certification required under section 4 of
				  this subchapter shall be in writing and shall be retained as part of the
				  records of such bank.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.6 - Accommodation endorser or guarantor

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The liability
				of an endorser or guarantor who does not receive any of the proceeds of a loan
				from a bank is not to be considered as an obligation of such endorser or
				guarantor for purposes of computing his limitation on liability to a bank under
				17:9A-62.
(b) The liability of an endorser or guarantor
				is to be considered as an obligation of such endorser or guarantor when he has
				obtained a loan or has sold or discounted the paper.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.7 - Exclusion of time balances on deposits from 15 percent limitation

Current through Register Vol. 56, No. 14, July 15, 2024
Time balances on deposit with an approved reserve
				  depository, or in any other bank or national banking association located
				  outside of New Jersey whose deposits equal or exceed three billion dollars and
				  are insured by the Federal Deposit Insurance Corporation, may exceed 15 percent
				  but not 25 percent of the capital funds of the bank.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.9 - Loans to financial institutions with the approval of the Commissioner

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Loans or
				extensions of credit to any financial institution or to any receiver,
				conservator, superintendent of banks, or other agent in charge of the business
				and property of such financial institutions, when such loans or extensions of
				credit are approved by the Commissioner, shall not be subject to any limitation
				based on capital funds.
(b) For
				purposes of this section, "financial institution" means a commercial bank,
				savings bank, trust company, savings and loan association, or credit
				union.
(c) This exception is
				intended to apply only in emergency situations where a bank is called upon to
				provide assistance to another financial institution.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 7 - LIMITATION OF LIABILITY TO A BANK, SAVINGS BANK OR STATE ASSOCIATION › Section 3:11-7.10 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Bank" means a bank as defined in
				  17:9A-1(1), a
				  savings bank as defined in
				  17:9A-1(13)  and
				  a State association as defined in
				  17:12B-5(1).
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 8 - SAVINGS BANKS INVESTMENT SECURITIES › Section 3:11-8.1 - Investment securities

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In addition to
				investments otherwise authorized in Article 25 of the Banking Act of 1948, as
				amended, savings banks are further authorized to invest in the following
				securities:
1. Bonds, debentures, notes or
				other obligations of any business corporation, except bank holding companies,
				which are defined in (a)3 below, organized under the laws of the United States
				or any state therein; provided, however, such investment security has received
				a quality rating in any of the first three quality classifications issued by
				Moody's Investors Service, Inc., Standard & Poor's Corporation, or Fitch
				Investors Service, Inc., or has received a quality rating in the first seven
				quality classifications issued by Duff and Phelps, Inc. If such investment
				security shall be of a type commonly denominated as "commercial paper" such
				obligation shall have received a quality rating of P-1 by Moody's Investors
				Service, Inc., A-1 by Standard & Poor's Corporation, F-1 by Fitch Investors
				Service, Inc., or Duff 1 plus or minus.
2. Bonds, debentures, notes and bankers
				acceptances issued by any banking institution, excluding a savings bank, as
				defined in section 1(2) of N.J.S.A. 17:9A, which banking institution at the
				date of its last published statement preceding the date of investment had a
				combined total of capital stock, surplus, reserve for contingencies and
				undivided profits equal to at least $ 40 million and also equal to at least
				five percent of its aggregated deposit liability;
3. Bonds, debentures, notes and bankers
				acceptances issued by any bank holding company authorized to do business in New
				Jersey which is registered as a bank holding company under the provisions of
				the act of Congress, known as the Bank Holding Company Act of 1956 (act of May
				9, 1956, 70 stat. 133), as amended. Such holding company must have as of the
				date of its last published statement preceding the date of investment a
				combined total of capital stock, surplus, reserve for contingencies and
				undivided profits equal to at least $ 40 million and also equal to at least
				five percent of its aggregate deposit liability;
4. Bonds, notes, debentures or other
				obligations issued or insured or guaranteed by any agency, authority,
				instrumentality or corporate body created by and for the United States
				Government whether or not such obligations are guaranteed by the United
				States;
5. Bonds, notes, debentures
				or other obligations issued or insured or guaranteed by any agency, authority,
				instrumentality or corporated body created by and for the State of New Jersey
				whether or not such obligations are guaranteed by the State of New
				Jersey.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 8 - SAVINGS BANKS INVESTMENT SECURITIES › Section 3:11-8.2 - Approved foreign obligations

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Pursuant to
				17:2-10, savings banks are
				authorized to invest in the development bonds of foreign governments and
				obligations of international development banks provided:
1. The principal and interest of the
				individual issue is payable in United States dollars;
2. The aggregate total of all such
				investments made pursuant to this subchapter shall not exceed five percent of
				the institution's capital deposits, surplus and reserves; and
3. Such obligations are approved by the
				comptroller of the currency for investment by national banks.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 8 - SAVINGS BANKS INVESTMENT SECURITIES › Section 3:11-8.3 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance.
"Savings bank" means a savings bank as defined in
				  17:9A-1(13)  or a
				  State association as defined in
				  17:12B-5(1).
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 9 - STANDBY LETTERS OF CREDIT › Section 3:11-9.1 - Standby letters of credit defined

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A standby
				letter of credit is any letter of credit, or similar arrangement however named
				or described, which represents an obligation to the beneficiary on the part of
				the issuer:
1. To repay money borrowed by or
				advanced to or for the account of the account party; or
2. To make payment on account of any
				indebtedness undertaken by the account party; or
3. To make payment on account of any default
				by the account party in the performance of an obligation.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 9 - STANDBY LETTERS OF CREDIT › Section 3:11-9.2 - Investment limitation

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A standby
				letter of credit shall be subject to liability limitations prescribed in
				article 13, section 62, of the Banking Act of 1948, and must be combined with
				any other nonexempt extension of credit unless prior to or at the time of
				issuance:
1. The issuing bank is paid an
				amount equal to the bank's maximum liability under the standby letter of
				credit; or
2. The issuing bank has
				set aside sufficient funds in a segregated deposit account, clearly earmarked
				for that purpose, to cover the bank's maximum liability under the standby
				letter of credit.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 9 - STANDBY LETTERS OF CREDIT › Section 3:11-9.3 - Authority to issue standby letters of credit

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A bank may
				issue a standby letter of credit on behalf of its customers in the normal
				course of business:
1. Provided that the
				bank's undertaking contains a specified expiration date or be for a definite
				term; and
2. The bank's liability
				is limited to a stated amount.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 9 - STANDBY LETTERS OF CREDIT › Section 3:11-9.4 - Parity provision

Current through Register Vol. 56, No. 14, July 15, 2024
This subchapter is directed toward the creation and
				  maintenance of a substantial parity between banks and national banks in
				  accordance with section 25.2 of the Banking Act of 1948.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 10 - SAVINGS BANKS AND STATE ASSOCIATIONS: CREDIT CARDS › Section 3:11-10.1 - Credit card operations

Current through Register Vol. 56, No. 14, July 15, 2024
A savings bank or State association may issue credit cards,
				  extend credit in connection therewith, and otherwise engage in or participate
				  in credit card operations.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 10 - SAVINGS BANKS AND STATE ASSOCIATIONS: CREDIT CARDS › Section 3:11-10.2 - Parity provisions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) This subchapter
				is issued in accordance with the authority granted to the Commissioner to place
				savings banks and State associations on a substantial competitive parity with
				Federally chartered savings and loan associations which currently have the
				authority to participate in credit card operations.
(b) It is further provided that savings banks
				and State associations may operate such credit card programs upon the same
				terms and conditions as the Federal Home Loan Bank Board may prescribe from
				time to time for such Federally chartered savings and loan associations.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 10 - SAVINGS BANKS AND STATE ASSOCIATIONS: CREDIT CARDS › Section 3:11-10.3 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance.
"Savings bank" means a savings bank as defined in
				  17:9A-1(13).
"State association" means a State association as defined in
				  17:12B-5(1).
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Bank" means a bank as defined in
				  17:9A-1(1), a
				  savings bank as defined in
				  17:9A-1(13)  and
				  a State association as defined in
				  17:12B-5(1).
"Capital funds" means capital, surplus, reserves, undivided
				  profits and capital notes.
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance.
"Control" means the power to directly or indirectly vote 25
				  percent or more of the voting stock of a subsidiary company, the ability to
				  control in any manner the election of a majority of a subsidiary company's
				  directors or trustees, or the ability to exercise a controlling influence over
				  the management and policies of a subsidiary company.
"Department" means the Department of Banking and
				  Insurance.
"Equity securities" means:
1. Shares of common or preferred stock
				registered on a national securities exchange or quoted on the National
				Association of Securities Dealers Automated Quotation System; and
2. Equity securities issued by a corporation,
				partnership or joint venture engaged exclusively in activities which are part
				of or incidental to the business of the institution.
3. Equity securities does not mean securities
				issued by a subsidiary company.
"Subsidiary company" means any corporation, partnership,
				  association, joint venture or other business entity directly or indirectly
				  controlled by a bank.
"Total liabilities" means total liabilities as defined in
				  17:9A-60(3),
				  60(6) and 60(8).
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.2 - Type of investment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Only to the
				extent and upon the conditions that have been authorized by
				17:9A-24.1 2 and in accordance
				with the procedures and limitations contained in this subchapter:
1. A bank, by resolution of its board of
				directors, and without prior approval of the Commissioner, may invest:
i. In equity securities;
ii. In subsidiary companies which engage in
				the activities prescribed in this subchapter; and
iii. Directly in those activities which are
				prescribed in this subchapter for subsidiary companies; and
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.3 - Equity security investments

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A bank shall be
				prohibited from investing, pursuant to
				17:9A-24.1 2, in stocks, preferred
				or common, issued by a corporation in which it has made a stock investment
				under some other provision of law.
(b) A bank may invest in equity securities
				under 17:9A-24.1 2 provided that no bank
				shall make an investment in the stock of any corporation pursuant to this
				subchapter, except as otherwise provided by this subchapter, at any time when
				the total ownership of any one class of equity securities of such corporation
				exceeds or if the making of such investment would cause such investment to
				exceed two percentum of any one class of the outstanding equity securities of
				such corporation. In addition the aggregate amount invested in all classes of
				the outstanding equity securities of any one corporation shall not exceed three
				percentum of the capital funds of the bank. A bank, by resolution of its board
				of directors, may apply to the Commissioner for approval to make an investment
				in equity securities beyond the maximum amount provided above. The application
				procedure and approval process shall be as provided in
				3:11-11.9 and
				3:11-11.1 0.
(c) This subchapter shall not prohibit a bank
				from making loans or incurring liabilities authorized by a provision of law
				other than
				17:9A-24.1 2 to any corporation in
				which the bank has invested in the equity securities pursuant to this
				subchapter. The total liabilities, not including equity investments made
				pursuant to this subchapter, of any person incurred by virtue of any provision
				of law, including this subchapter, are subject to the total liability
				limitations in
				17:9A-62.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.4 - Subsidiary companies

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A bank shall be
				prohibited from contributing to the capital or investing in the capital stock
				of a subsidiary company, pursuant to
				17:9A-24.1 2, in which it has a
				capital or stock investment pursuant to some other provision of law.
(b) A bank may contribute to the capital or
				invest in the capital stock of only those subsidiary companies which:
1. Engage in the activities prescribed in
				this subchapter; and/or
2. Are
				specifically approved by the Commissioner.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.5 - Permissible activities

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A subsidiary
				company may engage in the following activities:
1. Originating, investing in, selling,
				purchasing (including purchasing participations in), servicing, or otherwise
				dealing in loans of any type which may be made by a bank;
2. Provide services primarily for other
				financial institutions (for example, accounting, auditing, clerical,
				consulting, data processing, investment advisory, managerial);
3. Acquiring improved or unimproved real
				property for the purpose of subdividing, developing, constructing improvements
				thereon, and reselling, leasing or operating such property for the production
				of income;
4. Providing real estate
				services (for example, brokerage, appraisal, inspection, property management,
				relocation services);
5. Providing
				equity and debt investments in corporations or projects designed primarily to
				promote community welfare, such as economic rehabilitation and development of
				low income areas by providing housing, services, or jobs for
				residents;
6. Providing travel
				agency and tax preparation services;
7. Providing insurance brokerage or agency
				services;
8. Providing securities
				services (for example, brokerage, investment advice);
9. Issuing letters of credit;
10. Issuing credit cards and engaging in
				credit card operations;
11.
				Acquiring personal property for the purpose of leasing such property;
12. Acting as underwriter for credit life
				insurance and credit accident and health insurance that is directly related to
				an extension of credit by the bank.
13. Acquiring capital stock of, or becoming a
				member of, any stock or mutual insurance company whose primary purpose is to
				provide or underwrite liability or casualty insurance for banks located in the
				United States of America.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.6 - Subsidiary company compliance with law

Current through Register Vol. 56, No. 14, July 15, 2024
Except as otherwise permitted by statute or regulation, all
				  provisions of State banking laws applicable to the operations of the bank shall
				  be equally applicable to the operations of its subsidiary company.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.7 - Prohibition against tie-in requirements

Current through Register Vol. 56, No. 14, July 15, 2024
A bank, who invests in subsidiary companies pursuant to this
				  subchapter or engages directly in those activities which are prescribed in this
				  subchapter for subsidiary companies, shall not directly or indirectly condition
				  any extension of credit, lease or sale of property of any kind, or furnish any
				  service on the requirement that the customer shall obtain some other credit,
				  property, or service from the bank or any subsidiary company of the bank, other
				  than a loan, discount, deposit, or trust service.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.8 - Examination of subsidiary companies

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Each subsidiary
				company shall be subject to examination and supervision by the Commissioner in
				the same manner and to the same extent as the bank. If upon examination the
				Commissioner shall ascertain that the subsidiary company is created or operated
				in violation of law or regulation or that the manner of operation is
				detrimental to the business of the bank and its depositors, the Commissioner
				may order the bank to dispose of all or part of such subsidiary upon such terms
				as the Commissioner may deem proper. The cost of an examination into the
				condition of an existing business proposed to be acquired and operated as a
				subsidiary company shall be paid by the bank. The cost of any subsequent
				examinations of a subsidiary company shall be borne by the subsidiary company
				or the bank.
(b) A bank shall file
				a letter agreement with the Department signed by both the bank and the
				subsidiary company, authorizing the Department to conduct such examinations of
				the records of the subsidiary company that relate to the bank's leeway
				investment as the Commissioner deems appropriate.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.9 - Approval procedures for other investments

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A bank which
				seeks to make an investment or engage in any activity requiring the specific
				approval of the Commissioner shall submit a written application, accompanied by
				a $ 100.00 application fee. In addition, the Department shall impose a per diem
				charge, as required. Within 30 days of the filing of such application, the
				Commissioner shall notify the applicant in writing either that all information
				required by this section has been filed or that additional specified
				information must be filed. The Commissioner shall, within 60 days of the date
				of written notice that all required information has been filed, endorse thereon
				his or her approval or disapproval.
(b) A bank which makes an application to the
				Commissioner as specified in this subchapter shall submit the following
				information:
1. The total amount, in dollars
				and as a percentage of assets and capital funds, of investments that the
				applicant seeks to make;
2. An
				identification of the applicant's investment thresholds as determined in
				accordance with
				17:9A-24.1 2;
3. A description and quantification, as a
				dollar amount and as a percentage of assets and capital funds, of the
				applicant's outstanding investments pursuant to this subchapter;
4. A business plan which describes the
				proposed specific investment (including any existing investment made pursuant
				to other laws or regulations) and its anticipated financial impact on the
				applicant; and
5. Such other
				information as may be requested in writing by the Commissioner.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.10 - Criteria for approval

Current through Register Vol. 56, No. 14, July 15, 2024
In determining whether to approve or deny any application
				  for prior approval under this subchapter, the Commissioner shall consider the
				  financial and managerial resources and future prospects of the bank and the
				  investment involved, including the financial capability of the bank to make the
				  proposed investment under this subchapter, conflicts of interest, unsafe and
				  unsound banking practices and any other matter the Commissioner deems to be in
				  the public interest.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.11 - Recordkeeping requirements

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For the purpose
				of monitoring the bank's diversification of investments made under the leeway
				provision (17:9A-24.1 2) and to determine if
				the investments are in accordance with the applicable investment limitations,
				the bank is required to maintain records which will identify all such
				investments made under the leeway provisions:
1. These records shall contain a description
				of each leeway investment. The description should contain, but not be limited
				to the name of the person, partnership, corporation, other business entity,
				association or body politic (leeway entity) that the bank has invested in; its
				business address and the amount and form of the investment;
2. These records shall also contain a
				detailed listing of any other investments or loans made to each leeway entity
				pursuant to other provisions of the law. Any other investments or loans shall
				include, but not be limited to, any loan or extension of credit by the bank to
				the leeway entity; the purchase by the Bank of securities, other assets, or
				obligations of the leeway entity under repurchase agreement; the discount by
				the Bank of promissory notes, bills of exchange, conditional sales contracts,
				or similar paper, with or without recourse, issued by the leeway entity and
				discounted for a third party; acceptances of securities issued by a leeway
				entity as collateral for any loan, and issuance of a guarantee, acceptance, or
				letter of credit on behalf of a leeway entity;
3. These records shall be kept up to date in
				order that they tie into the bank's daily statement of condition.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 11 - RESTRICTIONS OF LEEWAY INVESTMENTS › Section 3:11-11.12 - Existing investments

Current through Register Vol. 56, No. 14, July 15, 2024
A bank whose existing leeway investments would not conform
				  to the requirements of this subchapter shall not be prohibited solely for that
				  reason from maintaining such investments and making investments to which it was
				  legally committed to prior to July 7, 1986. However, no new leeway investments
				  may be entered into after July 7, 1986 other than in compliance with this
				  subchapter.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 12 - SAVINGS BANKS: COMMERCIAL LOANS › Section 3:11-12.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise:
"Commercial loans" means any secured or unsecured loan for
				  commercial, corporate, business or agricultural purpose, other than any loans
				  which may otherwise be authorized by law.
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance of New Jersey.
"Department" means the Department of Banking and
				  Insurance.
"Savings bank" means a savings bank as defined in
				  17:9A-1(13).
"Total assets" means the total asset figure reported in
				  "Schedule RC-K-Quarterly Averages" submitted with the most recent Consolidated
				  Report of Condition for Savings Banks filed with the Federal Deposit Insurance
				  Corporation. In the event the specified schedule is redesignated, the total
				  asset figure reported in the substituted schedule, as designated by the
				  Department, is to be used.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 12 - SAVINGS BANKS: COMMERCIAL LOANS › Section 3:11-12.2 - Commercial loan limitation

Current through Register Vol. 56, No. 14, July 15, 2024
As prescribed in
				  17:9A-26(7), a
				  savings bank may make commercial loans in an aggregate amount that may not
				  exceed 10 percent of the savings bank's total assets without the Commissioner's
				  approval.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 12 - SAVINGS BANKS: COMMERCIAL LOANS › Section 3:11-12.3 - Application to exceed commercial loan limitation

Current through Register Vol. 56, No. 14, July 15, 2024
A savings bank may apply to the Commissioner for approval to
				  exceed the 10 percent commercial loan limitation provided in
				  17:9A-26(7). The
				  application shall be submitted on forms prescribed by the Commissioner. The
				  application shall contain a request by the savings bank to have the
				  Commissioner approve the savings bank's granting commercial loans up to a
				  specific percentage limitation, beyond the statutorily authorized 10 percent,
				  or in an unlimited amount, as the board of the savings bank may by resolution
				  specify. A certified copy of the board resolution shall be submitted with the
				  application. The application shall contain such data as the Commissioner may
				  require in order to make the findings called for in
				  17:9A-26(7)  and
				  3:11-12.4.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 12 - SAVINGS BANKS: COMMERCIAL LOANS › Section 3:11-12.4 - Commissioner approval

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Within 30 days
				of receipt of a completed application, the Commissioner shall approve the
				application and designate the limited or unlimited amount approved, provided it
				is found that:
1. The savings bank is being
				operated in a safe and sound manner;
2. The savings bank has capital equal to that
				required from time to time by the Board of Governors of the Federal Reserve
				System for a bank chartered under the laws of a state of the United States
				which is a member of the Federal Reserve System and said capital shall be
				calculated in accordance with generally accepted accounting principles as
				applied to banks;
3. The savings
				bank is competently managed; and
4.
				The savings bank has demonstrated satisfactory experience and expertise in
				making commercial loans.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 13 - OFFICERS AND DIRECTORS RESTRICTIONS › Section 3:11-13.1 - Borrowing limitation of a director, executive officer and/or related interests

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The 10 percent
				liability limitation prescribed in N.J.S.A. 17:9A-72B(4) is increased so that a
				bank may extend credit to a director or to a corporation in which such director
				or an executive officer has a controlling interest, or in which such director
				or executive officer together with one or more other directors or executive
				officers has a controlling interest, or to a partnership in which such director
				or executive officer is a partner, if the proposed liability will not cause the
				total of the liabilities of the director or executive officer, and the
				liabilities of each corporation in which such director has a controlling
				interest, or in which such director or executive officer together with one or
				more other directors or executive officers has a controlling interest, and the
				liabilities of each partnership in which such director or executive officer is
				a partner, to exceed 25 percent of the amount of capital funds of the bank, as
				defined in
				17:9A-60 and the rules adopted
				pursuant thereto; provided, however, that all amounts in excess of 15 percent
				of the capital funds of the bank shall be fully secured by readily marketable
				collateral having a market value, as determined by reliable and continuously
				available price quotations, at least equal to the amount of funds outstanding
				in excess of said 15 percent.
(b)
				The maximum liability of an executive officer, exclusive of the corporate and
				partnership liabilities set out in (a) above, are as limited in
				3:6-3.2.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 11 - INVESTMENTS › Subchapter 13 - OFFICERS AND DIRECTORS RESTRICTIONS › Section 3:11-13.2 - Disqualification of directors

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A director of a
				bank who defaults for 30 days in payment of an undisputed obligation to the
				bank shall cease to be a director, and shall not be eligible for reappointment
				to the board until the next annual meeting.
(b) For purposes of (a) above, the following
				obligations shall constitute obligations of the director:
1. Obligations of the director; and
2. Obligations of a corporation or
				partnership which is controlled by the director.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 12 - REGISTRAR AND TRANSFER AGENTS › Subchapter 1 - GENERAL PROVISIONS › Section 3:12-1.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this chapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Capital" or "capitalization" means the aggregate of capital
				  stock, surplus, undivided profits and unsecured subordinated capital notes or
				  debentures.
"Commissioner" means the Commissioner of the Department of
				  Banking and Insurance.
"Department" means the Department of Banking and
				  Insurance.
"Fiscal agent" means a domestic corporation, or a foreign
				  corporation authorized to transact business in this State, which transacts
				  business in this State as a fiscal agent for other corporations, as defined in
				  17:9A-25(13).
"Qualified corporation" means a domestic corporation, or a
				  foreign corporation authorized to transact business in this State, which
				  registers with the Department to act as a registrar, transfer agent and/or
				  fiscal agent.
"Registrar" means a domestic corporation, or a foreign
				  corporation authorized to transact business in this State, which transacts
				  business in this State as a registrar for other corporations, as defined in
				  17:9A-28(3).
"Transfer agent" means a domestic corporation, or a foreign
				  corporation authorized to transact business in this State, which transacts
				  business in this State as a transfer agent for other corporations, as defined
				  in 17:9A-28(3).
New Jersey Administrative Code › Title 3 - BANKING › Chapter 12 - REGISTRAR AND TRANSFER AGENTS › Subchapter 1 - GENERAL PROVISIONS › Section 3:12-1.2 - Effect of rules upon depository institutions

Current through Register Vol. 56, No. 14, July 15, 2024
Nothing in this chapter shall be construed as expanding or
				  restricting the powers otherwise conferred by law upon a depository
				  institution, such as a bank or savings bank, to engage in activities as a
				  registrar, transfer agent or fiscal agent, and no such depository institution,
				  in exercising any power otherwise conferred upon it, shall be subject to any
				  provision of this chapter.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 12 - REGISTRAR AND TRANSFER AGENTS › Subchapter 2 - REQUIRED REPORTING AND FILINGS WITH THE DEPARTMENT OF BANKING › Section 3:12-2.1 - Application to act as qualified corporation

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Prior to
				transacting business as a registrar, transfer agent or fiscal agent, a
				corporation shall obtain approval from the Department to act as a qualified
				corporation. The application to act as a qualified corporation shall be on a
				form approved by the Commissioner and shall contain the following:
1. The address of the principal corporate
				office;
2. Address of the principal
				office located in this State;
3.
				Names and home addresses of corporate directors and executive
				officers;
4. An unqualified audited
				financial statement prepared by a certified public accountant or a public
				accountant disclosing its assets, liabilities and capital;
5. Proof of the fidelity insurance coverage
				required by
				3:12-4.1;
6. Evidence that the applicant has adequate
				vault or other safe-keeping facilities for the safeguarding of stocks and other
				securities received, processed or otherwise held for the account of
				customers;
7. An application fee of
				$ 250.00; and
8. Additional
				information which may be specifically requested by the Commissioner from a
				particular filer.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 12 - REGISTRAR AND TRANSFER AGENTS › Subchapter 2 - REQUIRED REPORTING AND FILINGS WITH THE DEPARTMENT OF BANKING › Section 3:12-2.2 - Public disclosure of financial information

Current through Register Vol. 56, No. 14, July 15, 2024
A qualified corporation, upon request by a corporate client,
				  shall provide its most recent financial statement and proof of fidelity
				  insurance filed with the Department in accordance with
				  3:12-2.1 or 2.4 as
				  applicable.
New Jersey Administrative Code › Title 3 - BANKING › Chapter 12 - REGISTRAR AND TRANSFER AGENTS › Subchapter 2 - REQUIRED REPORTING AND FILINGS WITH THE DEPARTMENT OF BANKING › Section 3:12-2.3 - Examination by a public accountant

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The directors
				of a qualified corporation shall cause the examination of the qualified
				corporation's records by a certified public accountant or public accountant at
				least once in each calendar year. The scope of said examination shall include
				an inventory verification of unissued stock certificates and a confirmation of
				the last certificate number issued with the corporate issuer. The verifications
				and confirmations shall not be less than five percent of the accounts serviced
				or 10 corporate issuers, whichever is greater.
(b) The certified public accountant or public
				accountant shall render an opinion on the financial statement, the sufficiency
				of internal controls and the adequacy of the separation of functions.