New Jersey Administrative Code › Title 3 - BANKING › Chapter 14 - BANK SERVICE CORPORATIONS › Subchapter 1 - BANK SERVICE CORPORATIONS › Section 3:14-1.3 - Authority to engage in bank services

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A bank service
				corporation may provide a bank service to a banking institution, an affiliate
				of a banking institution, or other person, or to combinations or multiples of
				the above, subject to the limitations set forth in this section.
1. A bank service which is described in
				paragraphs 1, 2, or 4 of the definition of "bank service," and which will be
				provided only to an affiliate, may be provided without application or notice to
				the Commissioner.
2. A bank service
				which is described in paragraphs 1 or 2 of the definition of "bank service,"
				and which will be provided to a non-affiliate, may be provided if:
i. Written application has been received by
				the Commissioner which fully describes the bank service to be provided, the
				type of customer to whom the bank service is to be provided, the type of
				business in which the non-affiliate engages, and any information which supports
				the conclusion that the provision of the bank service is in the financial
				interest of the bank service corporation or affiliates of the bank service
				corporation; and either
(1) The bank service
				corporation has received approval in writing from the Commissioner;
				or
(2) At least 60 calendar days
				have passed since the receipt of the written application by the Commissioner,
				during which time the bank service corporation did not receive written
				notification by the Commissioner that the provision of the bank service to the
				non-affiliate is disapproved; and
ii. The Commissioner, at his or her
				discretion, has required and has received any additional information which
				might be relevant to a decision of whether to approve the application, which
				may include, but shall not be limited to, the names of the non-affiliates to
				whom the bank service is to be provided.
3. A bank service which is described in
				paragraph 3 of the definition of "bank service" may be provided to an affiliate
				or a non-affiliate if:
i. Written notice has
				been received by the Commissioner that the service has been approved for such
				bank service corporation, or for bank service corporations in general, by the
				Board of Governors of the Federal Reserve System, or by the appropriate local
				Federal Reserve Bank; and either
(1) The bank
				service corporation has received approval in writing from the Commissioner;
				or
(2) At least 60 calendar days
				have passed since the written notice required to be submitted by (a)3i above
				has been received by the Commissioner, and during which time the bank service
				corporation did not receive written notification by the Commissioner that the
				provision of the bank service is disapproved; and
ii. The Commissioner, at his or her
				discretion, has required and has received any additional information which
				might be relevant to a decision to disapprove the bank service, which may
				include, but shall not be limited to, a description of the bank service to be
				provided, the names of the non-affiliates to whom the bank service is to be
				provided, the type of business in which the non-affiliate engages, and any
				materials which support the conclusion that the provision of the bank service
				is in the financial interest of the bank service corporation or affiliates of
				the bank service corporation.
4. A bank service which is described in
				paragraph 5 of the definition of "bank service," may be provided to an
				affiliate or non-affiliate if:
i. Written
				application has been received by the Commissioner which fully describes the
				bank service to be provided, the types of customers to whom the bank service is
				to be provided, the type of business in which the non-affiliate engages, and
				any information which supports the conclusion that the provision of the bank
				service is in the financial interest of the bank service corporation or
				affiliates of the bank service corporation; and either:
(1) The bank service corporation has received
				approval in writing from the Commissioner; or
(2) At least 90 calendar days have passed
				since the Commissioner's receipt of the application, during which time the bank
				service corporation has not received written notification by the Commissioner
				that the provision of the bank service is disapproved, provided, however, that
				the Commissioner may make reasonable extensions of the period during which he
				or she may consider the application; and
ii. The Commissioner, at his or her
				discretion, has required and has received any additional materials which might
				be relevant to a decision of whether to approve the application, which may
				include, but shall not be limited to, the names of the non-affiliates to whom
				the bank service is to be provided.