New Jersey Administrative Code › Title 3 - BANKING › Chapter 14 - BANK SERVICE CORPORATIONS › Subchapter 1 - BANK SERVICE CORPORATIONS › Section 3:14-1.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms shall have the following
				  meanings when used in this chapter, unless the context clearly indicates
				  otherwise:
"Affiliate" means an entity related by common control or
				  substantial ownership to a bank holding company, a banking subsidiary of a bank
				  holding company, a bank, a savings bank, a bank service corporation of a bank
				  holding company, bank, or savings bank, or any other non-banking subsidiary of
				  a bank holding company, bank or savings bank.
"Appropriate Federal banking agency" means the Board of
				  Governors of the Federal Reserve System, the local Federal Reserve Bank having
				  jurisdiction, the Federal Deposit Insurance Corporation, or the Office of the
				  Comptroller of the Currency.
"Bank" shall have the meaning of that term in
				  17:9A-1(1).
"Bank services" means:
1. Services such as check and deposit sorting
				and posting, computation and posting of interest and other credits and charges,
				preparation and mailing of checks, statements, notices, and similar items, or
				any other clerical, bookkeeping, accounting, statistical, or similar
				functions;
2. Any service, other
				than deposit taking, that the Board of Governors of the Federal Reserve System
				determines by regulation to be permissible for a bank holding company pursuant
				to Section 4(c)(8) of the Bank Holding Company Act ( 12 U.S.C.A. §
				1843(c)(8) ), performed at any geographical location, subject to applicable
				Federal or state branching laws regulating the geographic location of banks to
				the extent that those laws are applicable to any activity authorized by this
				paragraph 2;
3. Any service, other
				than deposit taking, 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;
4. Any service, other than deposit taking,
				which a bank holding company is authorized to provide to its affiliates
				pursuant to
				12
				C.F.R. §
										225.21(a)(1),
				§
									225.22(a)(1),
				or §
									225.22(a)(2),
				provided however that services constituting permitted bank services under this
				paragraph 4 and which would not constitute permitted bank services under
				paragraphs 1, 2, or 3 above are provided only to an affiliate of the bank
				service corporation; and
5. Any
				service, other than deposit taking, not described in paragraphs 1, 2, 3 or 4
				above, and which has been fully described in an application to the
				Commissioner, which application the Commissioner has approved, or the period
				during which the Commissioner could disapprove the application as set forth in
				3:14-1.3(a)  has
				expired.
"Bank service corporation" means:
1. A corporation which is organized under
				Title 14 or Title 14A of the statutes of this State, or which is organized
				under a general incorporation statute of another state of the United States and
				which has a Certificate of Authority from the New Jersey Secretary of State or
				the New Jersey Department of Treasury, Division of Revenue to transact business
				in this State, to perform bank services, and all of whose capital stock is
				owned by one or more banking institutions; or
2. A limited liability company as defined in
				this chapter.
"Banking institution" means a bank organized under the laws
				  of this State or the laws of another state of the United States, a savings bank
				  organized under the laws of this State or under the laws of another state of
				  the United States, and a national bank organized under the laws of the United
				  States.
"Invest" means an advance of funds to a bank service
				  corporation, whether by the subscription to or purchase of stock, the making of
				  a loan, or otherwise, except a payment for rent earned, goods sold and
				  delivered, or services rendered prior to the making of such payment.
"Limited liability company" means any non-corporate company,
				  partnership, trust, or similar business entity organized under the law of a
				  state (as defined in section 3 of the Federal Deposit Insurance Act) that
				  provides that a member or manager of such company is not personally liable for
				  a debt, obligation, or liability of the company solely by reason of being, or
				  acting as a member or manager of such company and all of whose ownership
				  interest is held by banking institution.
"Person" means natural persons, sole proprietors, limited
				  liability companies, partnerships, corporations, and all other business
				  entities, no matter how designated.
"Savings bank" shall have the meaning of that term in
				  17:9A-1(13).