reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 9 - INDIVIDUAL RETIREMENT ACCOUNTS › Section 9.2 - Institutions without fiduciary and other representative powers

Current through Register Vol. 54, No. 28, July 13, 2024
An institution which does not have fiduciary and other
				  representative powers under Chapter 4 of the Banking Code (7 P. S.
				  §§
										401-407) may accept IRA accounts
				  if, under the terms of the instruments creating the accounts, the accounts are
				  savings accounts, share accounts or time deposits with the institution. Such an
				  institution may not commingle an IRA account and may pool IRA accounts subject
				  to the provisions of §
									9.4 (relating to rules governing
				  commingling and pooling of IRA accounts).
This section cited in 10 Pa. Code §
											9.4 (relating to rules governing
					 commingling and pooling of IRA
					 accounts).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 9 - INDIVIDUAL RETIREMENT ACCOUNTS › Section 9.3 - Institutions with fiduciary and other representative powers

Current through Register Vol. 54, No. 28, July 13, 2024
An institution with fiduciary and other representative powers
				  under Chapter 4 of the Banking Code (7 P. S. §§
										401-407) may accept IRA accounts. If an IRA
				  account is accepted by a department of the institution other than its trust
				  department, the instruments creating the account shall establish it as a
				  savings or time deposit with the institution, the account may not be
				  commingled, and the account may be pooled subject to the provisions of §
									9.4 (relating to rules governing
				  commingling and pooling of IRA accounts). If an IRA account is accepted by the
				  trust department of an institution, the account may be commingled and pooled
				  subject to the provisions of § 9.4.
This section cited in 10 Pa. Code §
											9.4 (relating to rules governing
					 commingling and pooling of IRA
					 accounts).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 9 - INDIVIDUAL RETIREMENT ACCOUNTS › Section 9.4 - Rules governing commingling and pooling of IRA accounts

Current through Register Vol. 54, No. 28, July 13, 2024
An IRA account may be commingled or pooled only if permitted
				  under §
									9.2 or §
									9.3 (relating to institutions
				  without fiduciary and other representative powers; and institutions with
				  fiduciary and other representative powers), and only to the extent the
				  commingling or pooling is permitted by the instruments creating the account,
				  laws applicable to the account, and the applicable rules and regulations of the
				  Internal Revenue Service and the department or agency of the United States
				  which insures the account. Any such commingling by an institution shall also be
				  subject to Chapter 15 (relating to trusts) to the extent that the requirements
				  of Chapter 15 do not conflict with the requirements of the applicable Federal
				  laws and the applicable rules and regulations of the Internal Revenue Service
				  and the department or agency of the United States which insures the IRA
				  accounts of the institution. An IRA account may be commingled by an institution
				  only in a common trust or investment fund administered by the trust department
				  of the institution which qualifies for exemption from tax under Internal
				  Revenue Rulings and the Internal Revenue Code and which consists of pension,
				  retirement and profit-sharing funds. Under no circumstances may an IRA account
				  be pooled by an institution except in a time deposit administered by the
				  institution which consists entirely of the funds from IRA accounts administered
				  by the institution; nor may an IRA account be pooled by an institution which
				  has both a commercial and a trust department except with other IRA accounts
				  administered by the same department which administers the IRA
				  account.
This section cited in 10 Pa. Code §
											9.2 (relating to institutions
					 without fiduciary and other representative powers); and 10 Pa. Code §
											9.3 (relating to institutions with
					 fiduciary and other representative
					 powers).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 10 - MINIMUM CAPITAL REQUIREMENTS › Section 10.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
				  have the following meanings, unless the context clearly indicates
				  otherwise:
Association
-As defined in section 102(3) of
				  the Savings Association Code of 1967 (7 P. S. §
										6020-2(3)).
Classified assets
-Assets, or portions
				  thereof, which have a well-defined weakness or weaknesses attributable to the
				  unfavorable condition of the obligor, insufficiency of security or other
				  factors noted in the report of examination prepared by the Department.
Institution
-An incorporated institution as
				  defined in section 102(q) of the Banking Code of 1965 (7 P. S. §
										102(q)).
Leverage capital
-The ratio of Tier 1 capital
				  to total assets.
Qualifying capital
-As defined in
				  12 CFR Part
				  325, Appendix A (relating to statement of
				  policy on risk based capital).
Risk-weighted assets
-As defined in 12 CFR
				  Part 325 , Appendix A.
Tier 1 capital
-As defined in
				  12 CFR
				  325.2(t) (relating to
				  definitions).
Total assets
-As defined in
				  12 CFR
				  325.2(v). Assets do not
				  include assets held in a fiduciary capacity.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 10 - MINIMUM CAPITAL REQUIREMENTS › Section 10.2 - Applicability

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter applies to State-chartered institutions and
				  savings associations. If this chapter refers to Federal requirements, those
				  requirements will be applicable under this chapter to associations whether or
				  not the Federal requirements otherwise apply.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 10 - MINIMUM CAPITAL REQUIREMENTS › Section 10.3 - Minimum leverage capital requirement

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The minimum leverage capital for an
				institution or association shall be a ratio of Tier 1 capital to total assets
				of 4%.
(b) Notwithstanding the
				provisions of subsection (a), the Secretary may establish for an institution or
				association a minimum ratio of Tier 1 capital to total assets of more than 4%
				based upon inadequate or substandard performance in the following categories,
				as determined by examination by the Department, and following an opportunity
				for response by the institution or association:
(1) The financial history and condition of
				the institution or association.
(2)
				The earnings prospects of the institution or association.
(3) The managerial resources of the
				institution or association.
(4) The
				liquidity ratio standards applicable to the institution or
				association.
(5) The interest rate
				risk exposure rating applicable to the institution or association.
(6) The concentration of assets, including
				limitations on or amount of loans to one borrower or group of borrowers, either
				related or unrelated, of the institution or association.
(7) The volume of classified
				assets.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 10 - MINIMUM CAPITAL REQUIREMENTS › Section 10.4 - Minimum risk-based capital requirement

Current through Register Vol. 54, No. 28, July 13, 2024
An institution or association shall maintain a ratio of
				  qualifying capital to risk-weighted assets consistent with Federal law
				  regulating risk-based capital ratios as enumerated at 12 CFR Part 325 ,
				  Appendix A (relating to statement of policy on risked-based
				  capital).
This section cited in 10 Pa. Code §
											10.5 (relating to unsafe
					 operations).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 10 - MINIMUM CAPITAL REQUIREMENTS › Section 10.5 - Unsafe operations

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				institution or association which has leverage capital or risk-based capital
				below the minimum required levels with regard to §
									10.3 (relating to minimum leverage
				capital requirement) or with regard to §
									10.4 (relating to minimum
				risk-based capital requirement), shall be deemed to be conducting its business
				in an unsafe manner for the purposes of section 504 of the Department of
				Banking and Securities Code (71 P. S. §
										733-504).
(b) An institution or association which is in
				full compliance with a written agreement or an order issued by the Department
				under section 501 of the Department of Banking and Securities Code
				(71
				P. S. §
										733-501) or section 1404 of the
				Savings Association Code of 1967 (7 P. S. §
										6020-224), or is in full compliance with a
				plan approved by the Department to increase its capital ratios and to take
				other actions as necessary for the institution or association so as not to be
				conducting its business in an unsafe manner, will not be deemed to be
				conducting its business in an unsafe manner based upon its capital
				ratios.
(c) Notwithstanding the
				provisions of subsections (a) and (b), the Department may take action otherwise
				authorized against an institution or association which is in an unsafe or
				unsound condition, is conducting its business in an unsafe or unsound manner,
				or is in violation of any agreement, any order of the Department, another
				banking agency or a court, its charter or any provision of applicable law, or
				otherwise meets the jurisdictional standards for applicable action by the
				Department.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part I - General Provisions › Chapter 10 - MINIMUM CAPITAL REQUIREMENTS › Section 10.6 - Unsafe and unsound condition

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An institution or association which has a
				ratio of Tier 1 capital to total assets of less than 2% shall be deemed to be
				in an unsafe and unsound condition for the purposes of section 504 of the
				Department of Banking and Securities Code (71 P. S. §
										733-504).
(b) An institution or association which is in
				full compliance with a written agreement or order issued by the Department
				under section 501 of the Department of Banking and Securities Code
				(71
				P. S. §
										733-501) or section 1404 of the
				Savings Association Code of 1967 (7 P. S. §
										6020-224), to increase its capital ratios to
				levels the Department deems appropriate and to take other actions as may be
				necessary for the institution or association to be operated in a safe and sound
				manner, will not be deemed to be in an unsafe and unsound condition based upon
				its capital ratios.
(c)
				Notwithstanding the provisions of subsections (a) and (b), the Department is
				not precluded from taking action against an institution or association which is
				in an unsafe or unsound condition, is conducting its business in an unsafe or
				unsound manner, or is in violation of any agreement, any order of the
				Department, another banking agency or a court, its charter or any provision of
				applicable law, or otherwise meets the jurisdictional standards for applicable
				action by the Department.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › GENERAL PROVISIONS › Section 13.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
					 have the following meanings, unless the context clearly indicates
					 otherwise:
Act
-The Banking Code of 1965
					 (7 P.
					 S. §§
											101-2204).
Indebtedness limitation
-The specific
					 limitation as applied under section 306(a) of the act (7 P. S. §
											306(a)).
Nonperishable staples
-Staples handled or
					 stored to assure their protection against spoilage for the period of the
					 loan.
Readily marketable frozen
or
refrigerated staples
-Readily marketable staples as defined in
					 this section, but which are stored or handled to assure their protection
					 against spoilage for the period of the loan.
Readily marketable staples
-Articles of
					 commerce, agriculture or industry which are the subject of dealings in a ready
					 market with sufficiently frequent price quotations to make the price easily
					 ascertainable with reasonable definiteness. The term includes primarily basic
					 commodities, such as wheat, other grains, sugar, cotton, wool, basic metals and
					 similar products. The term does not include fabricated
					 commodities.
The provisions of this §
												13.1 amended under section 306 of
						the Banking Code of 1965 (7 P. S. §
													306).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › PARTICIPATIONS › Section 13.2 - Participations in evidences of indebtedness and agreements for the payment of money

Current through Register Vol. 54, No. 28, July 13, 2024
Institutions may purchase and sell participations in one or
					 more evidences of indebtedness or agreements for the payment of money, without
					 retaining a specific interest therein. The participation may be acquired from
					 or sold to a financial institution or other corporation.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › PARTICIPATIONS › Section 13.3 - Participations in pools of evidences of indebtedness or agreements for the payment of money

Current through Register Vol. 54, No. 28, July 13, 2024
Institutions may purchase from and sell to other
					 institutions, National banks or similar banking companies existing under the
					 laws of any other state, and may sell to other corporations, participations or
					 undivided interests in pools of evidences of indebtedness or agreements for the
					 payment of money, if:
(1) The
				  originating institution, national bank or other banking company retains an
				  undivided interest of at least 25% of the pool.
(2) Evidence of indebtedness or agreement
				  which is included in, or added to, the pool shall be clearly identified in the
				  records of the originating institution, National bank or other banking company
				  as being a part of the pool.
(3) An
				  institution which sells a participation in a pool, may not directly or
				  indirectly guarantee the payment of principal or interest of any evidence of
				  indebtedness or agreement included in the pool. An institution may, however,
				  agree to pay, solely from the earnings of the pool, a fixed rate of return on
				  any participation therein.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › LIMITS ON INDEBTEDNESS › Section 13.11 - Limits on indebtedness of one customer

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Under section 306(c)(vi)(B) of the act
				  (7 P.
				  S. §
											306(c)(vi)(B)),
				  loans which are secured by documents of title covering readily marketable,
				  nonperishable staples for a period of not more than 10 months from the date of
				  the document of title are excluded from the indebtedness of one customer to
				  which the indebtedness limitation applies.
(b) Under section 306(c)(vi)(C) of the act
				  (7 P.
				  S. §
											306(c)(vi)(C)),
				  loans which are secured by documents of title covering readily marketable
				  frozen or refrigerated staples for a period of not more than 6 months from the
				  date of the document of title are excluded from the indebtedness of one
				  customer to which the indebtedness limitation applies.
(c) Under section 306(c)(ix)(B) of the act
				  (7 P.
				  S. §
											306(c)(ix)(B)),
				  loans which are secured by collateral which has a market value of not less than
				  120% of the amount of the obligations secured thereby are partially excluded
				  from the indebtedness of one customer to which the indebtedness limitation
				  applies. The loans are excluded from the limitation to the extent of 15% of the
				  aggregate of the capital accounts of the institution. To qualify for this
				  exclusion, the collateral shall be readily marketable so that:
(1) The price may be easily and definitely
				  ascertainable.
(2) The collateral
				  may be realized by sale.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › LIMITS ON INDEBTEDNESS › Section 13.12 - Standby letters of credit

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definition.
As used in this section, the term "standby letter
				  of credit" means a letter of credit, or similar arrangement however named or
				  described, which represents an obligation to the beneficiary on the part of the
				  issuing institution to repay money borrowed by or advanced to or for the
				  account of the account party, or to make payment on account of an indebtedness
				  undertaken by the account party, or to make payment on account of a default
				  (including a statement of default) by the account party in the performance of
				  an obligation. The term does not include commercial letters of credit and
				  similar instruments where the issuing institution expects the beneficiary to
				  draw upon the institution, which do not guaranty payment of a money obligation
				  of the account party and which do not provide that payment is occasioned by
				  default on the part of the account party.
(b)
Restriction.
A standby
				  letter of credit issued by an institution shall be combined with other standby
				  letters of credit and loans for purposes of applying the legal limitations on
				  loans of the institution under section 306 of the act (7 P. S. §
											306). Where the standby letter of credit is
				  subject to a nonrecourse participation agreement with other institutions or
				  banks, this section applies to the issuing institution and each other
				  participant which is an institution in the same manner as in the case of a
				  participated loan.
(c)
Exceptions.
Standby letters of credit shall be subject to
				  subsection (b) except where one of the following conditions exist:
(1) Prior to or at the time of issuance, the
				  issuing institution is paid an amount equal to the institution's maximum
				  liability under the letter of credit.
(2) Prior to or at the time of issuance, the
				  issuing institution has set aside sufficient funds in a segregated deposit
				  account, clearly earmarked for that purpose, to cover the institution's maximum
				  liability under the standby letter of credit.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › LIMITS ON INDEBTEDNESS › Section 13.13 - Guarantees

Current through Register Vol. 54, No. 28, July 13, 2024
Institutions, subject to the prior approval of the
					 Department, may give guarantees in connection with transactions providing for
					 the sale or sale and repurchase of an institution's outstanding securities
					 portfolio or in connection with borrowings by the institution, secured by the
					 institution's outstanding securities portfolio.
The provisions of this §
												13.13 issued under sections
						313(a)(iv) and 502(f) of the Banking Code of 1965 (7 P. S. §§
													313(a)(iv) and
						502(f)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › INSTALLMENT LOANS › Section 13.21 - Disclosure of revolving credit rates

Current through Register Vol. 54, No. 28, July 13, 2024
In the event a borrower is not advised of the monthly rate
					 of charge for a loan under a revolving credit plan by a statement contained in
					 the agreement entered into in connection with the loan, the borrower shall be
					 advised of the monthly rate of charge in a written statement delivered to the
					 borrower within 10 days after the revolving credit plan agreement has been
					 executed.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › INSTALLMENT LOANS › Section 13.22 - Disclosure of total charge on other installment loans

Current through Register Vol. 54, No. 28, July 13, 2024
In the event a borrower is not advised of the dollar amount
					 of the total loan charge on an installment loan, other than a loan under a
					 revolving credit plan, by a statement contained in the evidence of
					 indebtedness, the borrower shall be advised of the dollar amount in one of the
					 following two ways:
(1) By a
				  statement, setting forth and identifying the charge, contained in the
				  disbursement check or other instrument delivered to or required to be signed by
				  the borrower.
(2) By a statement
				  contained in the coupon book or payment book of the borrower, or written
				  communication which shall be delivered to the borrower within 10 days after the
				  evidence of indebtedness has been executed.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › INSTALLMENT LOANS › Section 13.23 - Discount of installment loans

Current through Register Vol. 54, No. 28, July 13, 2024
(a) It was not the intent of the Banking Law
				  Commission to make a change in the installment lending provisions of the prior
				  Banking Code (No. 112 (1933) Pa.L. 624 (repealed 1965)) nor to change the
				  industry's custom of calculating interest on a discount basis. It was the
				  purpose of the act to clarify the prior law and the practices followed under
				  it.
(b) It is a banking practice,
				  in calculating discount at a $6 per $100 per annum rate, to deduct the 6%
				  (equivalent to the $6 charge) from 100%, thus arriving at a remainder of 94%.
				  By dividing 94% into the maximum loan of $5,000, the face amount becomes
				  $5,319.14 resulting in discount of $319.14. The following should illustrate
				  clearly the results of calculating interest on a discount basis versus interest
				  on an add-on basis:
(1)
Discount
				  basis.
Principal
$5,000
Plus Interest at 6% for 1 year on a discount
								basis
319.14
Plus Costs
150
Face
amount of
								note
$5,469.14
Less Interest and Costs
469.14
Net proceeds
to
								borrower
$5,000
(2)
Add-on basis.
Principal
$5,000
Plus Interest at 6% for 1 year
300
Plus Costs
150
Face
amount of note
$5,450
Less Interest and Costs
450
Net proceeds
to
								borrower
$5,000
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › INSTALLMENT LOANS › Section 13.24 - Computation of rebates on installment loans

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The term of an extended loan shall be
				  increased by the number of monthly extensions granted; the expired time of the
				  loan contract will similarly take into consideration the number of months of
				  extension granted; and the total finance charge will be increased by the
				  extension charges.
(b) As an
				  example, a 36-month note for $1,000 of which 26 months have expired but 4
				  months of which were extensions, the rebate would be on the basis of 26/40. The
				  original finance charge of $180 would be increased by total extension charges
				  of $18.36 to $198.36 and by using the rule of 78, the percentage of rebate
				  would be 12.80% or $25.39.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › REAL ESTATE LOANS › Section 13.31 - Reappraisals of liened properties

Current through Register Vol. 54, No. 28, July 13, 2024
(a) If the payments of interest on regularly
				  amortizing real estate obligations are in arrears for 90 days, the institution
				  shall file a current certificate of inspection to support the delinquent debt,
				  unless an appraisal or inspection has been made within 1 year of the
				  delinquency and the proper certification is on file.
(b) Loans not subject to a regular
				  amortization schedule shall be supported by reappraisals made once within every
				  3 year cycle.
(c) If obligations
				  are increased for any reason or if new instruments are written to cover the
				  same liened premises, other than in connection with rollover or renegotiated
				  rate mortgages, a current appraisal of the property shall be on file.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › REAL ESTATE LOANS › Section 13.32 - Renegotiable rate or rollover mortgage loans

Current through Register Vol. 54, No. 28, July 13, 2024
A savings bank may make, purchase or participate in
					 renegotiable rate or rollover mortgages. The interval between the making of the
					 loan and the first renegotiation of the loan shall be deemed the term of the
					 loan, and each subsequent renewal of the loan shall be deemed a separate term.
					 Requirements of section 505(a)(i)(B) of the act (7 P. S. §
											505(a)(i)(B)) that "the
					 terms of the loan require payments which are substantially equal except for the
					 last payment" is satisfied with respect to such renegotiable rate or rollover
					 mortgages if the payments during each term are substantially equal, except for
					 the final payment, even though the payments during one such term are different
					 from those during other such terms.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › CORPORATE STOCK AND CAPITAL SECURITIES › Section 13.41 - Collateral loans

Current through Register Vol. 54, No. 28, July 13, 2024
To the same extent that an institution is prohibited from
					 taking pledges of stock or capital securities of the institution itself as
					 collateral security for a loan, under sections 202(h) and 311(c) of the act
					 (7 P.
					 S. §§
											202(h) and
					 311(c)), it may not take
					 pledges of stock or capital securities of its affiliates or the corporation
					 which owns or controls the capital stock of the institution.
The provisions of this §
												13.41 issued under section
						103(a)(viii) of the Banking Code of 1965 (7 P. S. §
													103(a)(viii)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › CORPORATE STOCK AND CAPITAL SECURITIES › Section 13.42 - Loans for carrying shares and capital securities

Current through Register Vol. 54, No. 28, July 13, 2024
To the same extent that an institution is prohibited from
					 extending credit for the purpose of enabling a customer to acquire or hold
					 shares or capital securities of the institution, under the provisions of
					 section 311(e) of the act (7 P. S. §
											311(e)), it may not extend
					 credit to acquire or hold stock or capital securities of its affiliates or the
					 corporation which owns or controls the capital stock of the
					 institution.
The provisions of this §
												13.42 issued under section
						103(a)(viii) of the Banking Code of 1965 (7 P. S. §
													103(a)(viii)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › EXCEPTION TO DEFINITION OF "BRANCH"-STATEMENT OF POLICY › Section 13.61 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this section
					 and §§
										13.62-13.68, have the following
					 meanings, unless the context clearly indicates otherwise:
Banking institution
-
(i) A bank, bank and trust company, trust
				  company and savings bank, chartered under the laws of the
				  Commonwealth.
(ii) A National
				  bank.
(iii) A bank, bank and trust
				  company, trust company and savings bank which is not regulated by the Office of
				  Thrift Supervision, chartered under the laws of another state or territory of
				  the United States.
Limited purpose banking office
-An office
					 of a banking institution which performs limited activities, such as those in
					 §
										13.63 (relating to permissible
					 activities), on behalf of the banking institution but which does not:
(i) Accept or pay out deposits.
(ii) Make loans.
(iii) Pay checks.
(iv) Accept or administer any type of
				  accounts, including trust or other fiduciary accounts.
Non-Pennsylvania banking institution
-A
					 banking institution chartered under the laws of the United States, Puerto Rico
					 or a state or territory of the United States other than the
					 Commonwealth.
Pennsylvania banking institution
-A banking
					 institution chartered under the laws of the Commonwealth.
This section cited in 10 Pa. Code §
												13.62 (relating to application);
						10 Pa. Code §
												13.63 (relating to permissible
						activities); 10 Pa. Code §
												13.65 (relating to information
						required); 10 Pa. Code §
												13.66 (relating to designation as
						a limited purpose banking office); and 10 Pa. Code §
												13.67 (relating to authority of
						the Department).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › EXCEPTION TO DEFINITION OF "BRANCH"-STATEMENT OF POLICY › Section 13.62 - Application

Current through Register Vol. 54, No. 28, July 13, 2024
Sections
					 13.61,
					 13.63-13.68 and this section address
					 limited purpose banking offices located in this Commonwealth which are
					 established by Commonwealth and non-Pennsylvania banking institutions, as
					 defined in §
										13.61 (relating to definitions).
					 In addition, these sections address Pennsylvania banking institutions locating
					 limited purpose banking offices in other states. The establishment and
					 maintenance of a limited purpose banking office located in this Commonwealth by
					 a non-Pennsylvania banking institution and the establishment in another state
					 of a limited purpose banking office by a Pennsylvania banking institution may
					 not be in violation of, or otherwise contrary to, the laws of the other
					 relevant state.
This section cited in 10 Pa. Code §
												13.61 (relating to definitions);
						10 Pa. Code §
												13.63 (relating to permissible
						activities); 10 Pa. Code §
												13.65 (relating to information
						required); 10 Pa. Code §
												13.66 (relating to designation as
						a limited purpose banking office); and 10 Pa. Code §
												13.67 (relating to authority of
						the Department).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › EXCEPTION TO DEFINITION OF "BRANCH"-STATEMENT OF POLICY › Section 13.63 - Permissible activities

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				  following activities may be conducted at a limited purpose banking office of a
				  banking institution, if, in instances where another state is involved, the
				  performance of the activities at the limited purpose banking office does not
				  violate, and is not otherwise contrary to, the laws of the other relevant
				  state:
(1) Loan production office activities,
				  including:
(i) Soliciting loans, and, in
				  connection therewith, assembling credit information.
(ii) Making property inspections and
				  appraisals.
(iii) Securing title
				  information.
(iv) Preparing
				  applications for loans, including making recommendations with respect to action
				  thereon.
(v) Soliciting investors
				  to purchase loans from the banking institution.
(vi) Seeking to have the investors contract
				  with the banking institution for the servicing of the loans.
(vii) Engaging in other similar agent-type
				  activities.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › EXCEPTION TO DEFINITION OF "BRANCH"-STATEMENT OF POLICY › Section 13.64 - Impermissible activities

Current through Register Vol. 54, No. 28, July 13, 2024
A limited purpose banking office of a banking institution
					 may not:
(1) Make final business
				  decisions, other than decisions relating to the premises or personnel of the
				  limited purpose banking office, for the account of the banking institution it
				  represents, including contracting for or accepting any deposit or deposit-like
				  liabilities on behalf of the banking institution.
(2) Disburse loan funds, transmit funds, post
				  loan repayments or be responsible for making the final decisions to approve
				  loans.
(3) With respect to a
				  banking institution which possesses fiduciary powers under its laws of
				  incorporation, a limited purpose banking office of such a banking institution
				  may not do any of the following: make final decisions regarding fiduciary
				  account applications such as accepting fiduciary or other trust accounts,
				  accept deposits for fiduciary or other trust accounts or administer fiduciary
				  accounts. In addition, a non-Pennsylvania banking institution shall continue to
				  satisfy the reciprocity and other requirements imposed by the Department under
				  section 106(b) of the act (7 P. S. §
											106(b)) to act as a
				  fiduciary in this Commonwealth.
This section cited in 10 Pa. Code §
												13.61 (relating to definitions);
						10 Pa. Code §
												13.62 (relating to application);
						10 Pa. Code §
												13.63 (relating to permissible
						activities); 10 Pa. Code §
												13.65 (relating to information
						required); 10 Pa. Code §
												13.66 (relating to designation as
						a limited purpose banking office); and 10 Pa. Code §
												13.67 (relating to authority of
						the Department).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › EXCEPTION TO DEFINITION OF "BRANCH"-STATEMENT OF POLICY › Section 13.65 - Information required

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
				  banking institution seeking to establish and maintain a limited purpose banking
				  office under §§
										13.61-13.64,
				  13.66-13.68 and this section shall
				  submit a prior notice to the Department's Manager of Corporate Applications in
				  letter form. The Department may object to the establishment and maintenance of
				  a limited purpose banking office within 20 business days of receiving the
				  notice. If the Department objects to the notice, the banking institution may
				  not establish or maintain the limited purpose banking office until the
				  Department approves the action. The following information shall be included in
				  the notice required under this section:
(1)
				  The name and address of the principal office of the banking
				  institution.
(2) The exact address
				  and telephone number of the limited purpose banking office to be
				  established.
(3) The name of the
				  banking institution's officer responsible for the activities of the limited
				  purpose banking office.
(4) A
				  complete description of the activities to be performed at the proposed limited
				  purpose banking office.
(5) With
				  respect to a non-Pennsylvania banking institution seeking to establish a
				  limited purpose banking office in this Commonwealth or a Pennsylvania banking
				  institution seeking to establish a limited purpose banking office in another
				  state, a legal opinion providing that the establishment and maintenance of the
				  proposed limited purpose banking office does not violate, and is not otherwise
				  contrary to, the laws of the other relevant state, including reference to the
				  applicable statutory or regulatory authority, or both, of the other
				  state.
(6) A statement providing
				  that the banking institution has obtained the regulatory approvals required to
				  establish and maintain the proposed limited purpose banking office.
(7) Other information which is deemed
				  necessary by the Department.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › EXCEPTION TO DEFINITION OF "BRANCH"-STATEMENT OF POLICY › Section 13.66 - Designation as a limited purpose banking office

Current through Register Vol. 54, No. 28, July 13, 2024
Office signs, stationery, telephone listings or print
					 advertisements related to a limited purpose banking office established under
					 §§
										13.61-13.65,
					 13.67,
					 13.68 and this section shall
					 clearly indicate that the office is a representative type of office and is not
					 a branch of the banking institution.
This section cited in 10 Pa. Code §
												13.61 (relating to definitions);
						10 Pa. Code §
												13.62 (relating to application);
						10 Pa. Code §
												13.63 (relating to permissible
						activities); 10 Pa. Code §
												13.65 (relating to information
						required); 10 Pa. Code §
												13.66 (relating to designation as
						a limited purpose banking office); and 10 Pa. Code §
												13.67 (relating to authority of
						the Department).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › EXCEPTION TO DEFINITION OF "BRANCH"-STATEMENT OF POLICY › Section 13.67 - Authority of the Department

Current through Register Vol. 54, No. 28, July 13, 2024
(a) When
				  deemed necessary by the Department, a limited purpose banking office
				  established and maintained under §§
										13.61-13.66,
				  13.68 and this section shall be
				  subject to supervision, regulation, examination and orders issued by the
				  Department. The Department has determined not to assess a fee associated with
				  the establishment or maintenance of a limited purpose banking office. The
				  Department reserves the right to assess a fee associated with the
				  establishment, examination, supervision or regulation of a limited purpose
				  banking office established under §§
										13.61-13.66,
				  13.68 and this section when deemed
				  appropriate by the Department.
(b)
				  Failure of a banking institution to comply with §§
										13.61-13.66,
				  13.68 and this section may cause
				  the limited purpose banking office to be viewed by the Department as a branch,
				  causing the office to be subject to the requirements related to bank branch
				  offices contained in the act. Accordingly, the Department may take any
				  enforcement action it deems appropriate under these circumstances.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 13 - LOANS › EXCEPTION TO DEFINITION OF "BRANCH"-STATEMENT OF POLICY › Section 13.68 - Application of other Pennsylvania laws

Current through Register Vol. 54, No. 28, July 13, 2024
A non-Pennsylvania banking institution may be required to
					 register with the Department of State to do business in this Commonwealth under
					 15 Pa.C.S. Chapter 41 (relating to foreign business corporations). The
					 Department recommends that a non-Pennsylvania banking institution seeking to
					 establish a limited purpose banking office in this Commonwealth contact the
					 Department of State to determine whether the banking institution must register
					 with that agency to do business in this Commonwealth.
This section cited in 10 Pa. Code §
												13.61 (relating to definitions);
						10 Pa. Code §
												13.62 (relating to application);
						10 Pa. Code §
												13.63 (relating to permissible
						activities); 10 Pa. Code §
												13.65 (relating to information
						required); 10 Pa. Code §
												13.66 (relating to designation as
						a limited purpose banking office); and 10 Pa. Code §
												13.67 (relating to authority of
						the Department).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.1 - Definition of "institution"

Current through Register Vol. 54, No. 28, July 13, 2024
The word institution, when used in this chapter, means a
					 bank and trust company, a trust company and, to the extent applicable, a
					 savings bank.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.2 - Plan to be filed by institutions

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  Each collective investment fund shall be established and maintained in
				  accordance with a written plan (referred to within this chapter as "the Plan")
				  which shall be approved by resolution of the board of directors of the
				  institution and filed with the Department.
(b) For funds established under section
				  404(b)(i) of the Banking Code (7 P. S. §
											404(b)(i)) and Regulation 9
				  of the Comptroller of the Currency, an institution shall submit to the
				  Department a copy of the plan for approval.
(c) Collective investments of funds or other
				  property by institutions under section 404(b)(ii) and (iii) of the Banking Code
				  (7 P.
				  S. §
											404(b)(ii) and
				  (iii)) shall be administered as provided in
				  this chapter.
This section cited in 10 Pa. Code §
												15.3 (relating to contents of
						Plan).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.3 - Contents of Plan

Current through Register Vol. 54, No. 28, July 13, 2024
The Plan filed by institutions in accordance with §
										15.2 (relating to plan to be filed
					 by institutions) shall contain provisions relating to the following:
(1) Investment powers of the institution with
				  respect to the fund.
(2) Allocation
				  of income, profits and losses.
(3)
				  Terms and conditions governing the admission or withdrawal of participations in
				  the fund.
(4) Basis and method of
				  valuing assets in the fund.
(5)
				  Period following each valuation date during which the valuation may be
				  made.
(6) Basis upon which the fund
				  may be terminated.
(7) Auditing of
				  accounts of the institution with respect to the fund.
(8) Other matters as may be necessary to
				  define clearly the rights of participants in the fund.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.4 - Public availability of Plan

Current through Register Vol. 54, No. 28, July 13, 2024
A copy of the Plan shall be available at the principal
					 office of the institution for inspection during all banking hours, and upon
					 request a copy of the Plan shall be furnished to any person.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.5 - Participation

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Participations
				  in the collective investment fund shall be on the basis of a proportionate
				  interest in all of the assets.
(b)
				  The institution shall consider the fund as a whole when investing funds
				  received or held by the institution as fiduciary in a participation in a
				  collective investment fund, and the institution shall not be prohibited from
				  making an investment of such funds because any particular asset is non-income
				  producing.
(c) At least annually,
				  an institution administering a collective investment fund shall determine the
				  value of the assets in the fund as of the dates set for the valuation of
				  assets.
(d) No participation shall
				  be admitted to or withdrawn from the fund except on the basis of the valuation
				  described in subsection (c). The valuation used as a basis for a participation
				  admission or withdrawal shall be the most recent valuation.
(e) No participation shall be admitted to or
				  withdrawn from the fund unless a written request for or notice of intention of
				  taking such action shall have been entered on or before the valuation date in
				  the fiduciary records of the institution and approved in such manner as the
				  board of directors shall prescribe. No such request or notice may be cancelled
				  or countermanded after the valuation date.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.6 - Annual audit

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				  institution administering a collective investment fund shall make an adequate
				  audit of the fund at least once during every 12-month period. The auditors who
				  perform this audit are responsible only to the board of directors of the
				  institution.
(b) When such audit is
				  performed by independent public accountants, the reasonable expenses of such
				  audit may be charged to the fund.
This section cited in 10 Pa. Code §
												15.7 (relating to annual financial
						report).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.7 - Annual financial report

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				  institution administering a collective investment fund shall, at least once
				  during each period of 12 months, prepare a financial report of the fund which
				  shall be filed with the Department.
(b) The financial report shall be based upon
				  the annual audit required by §
										15.6 (relating to annual
				  audit).
(c) The financial report
				  shall contain the following:
(1) A list of
				  the investments in the fund, showing the cost and current market value of each
				  investment except as otherwise provided in §
											15.13 (relating to short term
				  investment funds).
(2) A statement
				  for the period since the last report, showing purchases including
				  costs.
(3) All sales, with profit
				  and loss.
(4) All other investment
				  changes.
(5) All income and
				  disbursements.
(6) An appropriate
				  notation as to any investment in default.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.8 - Withdrawals

Current through Register Vol. 54, No. 28, July 13, 2024
(a) When
				  participations are withdrawn from a collective investment fund, distributions
				  may be made in cash or ratably in kind, or partly in cash and partly in kind,
				  provided that all distributions as of any one valuation date shall be made on
				  the same basis.
(b) If for any
				  reason an investment is withdrawn in kind from a collective investment fund for
				  the benefit of all participants in the fund at the time of such withdrawal and
				  such investment is not distributed ratably in kind, it shall be segregated and
				  administered or realized upon for the benefit ratably of all participants in
				  the fund at the time of withdrawal.