reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.9 - Fiduciary capacity of an institution

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An institution administering a collective
				  investment fund shall not have any interest in such fund, other than its
				  fiduciary capacity, but funds held by an institution as fiduciary for its own
				  employes may be invested in such a fund.
(b) An institution administering a collective
				  investment fund shall not make any loans on the security of a participation in
				  such fund.
(c) If for any reason
				  the institution acquires an interest in a participation in such fund, the
				  participation shall be withdrawn on the first date on which such a withdrawal
				  can be effected.
(d) An unsecured
				  advance to an account holding a participation shall not be deemed to constitute
				  the acquisition of an interest by the institution until the time of the next
				  withdrawal.
(e) The institution may
				  purchase for its own account from a collective investment fund any defaulted
				  mortgage held by such fund. A purchase of such a mortgage may be made by the
				  institution if its board of directors agrees that the cost of segregation of
				  the mortgage would be greater than the difference between its market value and
				  its principle amount plus interest and penalty charges due. If the institution
				  elects to purchase a defaulted mortgage, it shall pay the market value or the
				  sum of principal, interest and penalty charges, whichever is greater.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.10 - General investment procedures

Current through Register Vol. 54, No. 28, July 13, 2024
Funds operating under section 404(b)(iii) of the Banking
					 Code (7 P. S. §
											404(b)(iii)) shall be
					 subject to the following additional restrictions:
(1) No funds or other property shall be
				  invested in a participation in a fund if, as result of such an investment, the
				  participant would have an interest aggregating in excess of 10% of the then
				  market value of the fund.
(2) If
				  two or more accounts are created by the same person or persons, and as much as
				  50% of the income or principal of each account is payable or applicable to the
				  use of the same person or persons, such accounts shall be considered as one,
				  and controlled by the limitation of subsection (a).
(3) No investment for a collective investment
				  fund shall be made in stocks, bonds or other obligations of any one person,
				  firm or corporation if as a result of such investment, the total amount
				  invested in stocks, bonds or other obligations issued or guaranteed by such
				  person, firm or corporation would aggregate in excess of 10% of the then market
				  value of the fund. The limitation of 10% shall not apply to investments in
				  direct obligations of the United States or other obligations fully guaranteed
				  by the United States as to principal and interest.
(4) Any institution administering a fund
				  shall have the responsibility of maintaining in cash and readily marketable
				  investments such part of the assets of the fund as shall be deemed to be
				  necessary to provide adequately for the needs of participants and to prevent
				  inequities between such participants.
(5) If, prior to any admissions to or
				  withdrawals from a fund, the institution shall determine that, after effecting
				  the admissions and withdrawals which are to be made, less than 40% of the value
				  of the remaining assets of the collective investment fund would be composed of
				  cash and readily marketable investments, no admissions to or withdrawals from
				  the fund shall be permitted as of the valuation date upon which such
				  determination is made provided that ratable distribution upon all
				  participations shall not be so prohibited in any case.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.11 - Handling of mortgages

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Charges for service expenses.
Reasonable expenses incurred in
				  servicing mortgages held by a fund may be charged against the income account of
				  the fund and paid to servicing agents, including the institution administering
				  the fund.
(b)
Reserve
				  accounts.
(1) An institution may,
				  but shall not be required to, transfer up to 5.0% of the net income derived by
				  a fund from mortgages held by such fund during any regular accounting period to
				  a reserve account.
(2) No transfers
				  to a reserve account shall be made which would cause the amount in such account
				  to exceed 1.0% of the outstanding principal amount of all mortgages held in the
				  fund.
(3) The amount of such
				  reserve account, if established, shall be deducted from the assets of the fund
				  in determining the fair market value of the fund for the purposes of admissions
				  and withdrawals.
(4) At the end of
				  each accounting period, all interest payments which are due but unpaid with
				  respect to mortgages in the fund shall be charged against such reserve account
				  to the extent available and credited to income distributed to participants. In
				  the event of subsequent recovery of such interest payments by the fund, the
				  reserve account shall be credited with that amount so recovered.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.12 - Management provisions

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				  institution administering a collective investment fund shall have the exclusive
				  management thereof. The institution may charge a fee for the management of the
				  fund; except that the fractional part of such fee proportionate to the interest
				  of each participant shall not, when added to any other compensations charged by
				  the institution to the participant, exceed the total amount of compensations
				  which would have been charged to the participant if no assets of the
				  participant had been invested in participations in the fund. The institution
				  shall absorb the costs of establishing or reorganizing a fund.
(b) No institution administering a collective
				  investment fund shall issue any certificate or other document evidencing a
				  direct or indirect interest in such fund in any form.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 15 - TRUSTS › COLLECTIVE INVESTMENT FUNDS › Section 15.13 - Short-term investment funds

Current through Register Vol. 54, No. 28, July 13, 2024
Short-term investment funds may be operated on a cost
					 rather than market value basis for purposes of admissions and withdrawals, if
					 the plan of operation satisfies the following conditions:
(1) Investments shall be limited to bonds,
				  notes, or other evidences of indebtedness which are payable on demand-including
				  variable amount notes-or which have a maturity date not exceeding 91 days from
				  the date of purchase. Twenty percent of the value of the fund may be invested
				  in longer term obligations.
(2) The
				  difference between the cost and anticipated principal receipt on maturity shall
				  be accrued on a straight-line basis.
(3) Assets of the fund shall be held until
				  maturity under usual circumstances.
(4) After effecting admissions and
				  withdrawals, not less than 20% of the value of the remaining assets of the fund
				  shall be composed of cash, demand obligations and assets that will mature on
				  the fund's next business day.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.1 - Definition of "act"

Current through Register Vol. 54, No. 28, July 13, 2024
The term act, when used in this chapter, shall mean the act
				  of September 2, 1965 (P.L. 490, No. 249) (7 P.S. §§
										6101-6118), referred to as the Money
				  Transmission Business Licensing Law and commonly known as the Money Transmitter
				  Act.
The provisions of this §
											19.1 amended under section 506 of
					 The Administrative Code of 1929 (71 P.S. §
												186); and section 202(C) of the Department of
					 Banking and Securities Code (71 P.S. §
												733-202(C)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.1a - Virtual currency-statement of policy

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Purpose.
The purpose of
				this statement of policy is to clarify for the regulated community the
				Department's current interpretation of the term "money" in the act.
(b)
Interpretation.
For
				purposes of this chapter, the Department interprets the definition of "money"
				to include virtual currency, such as Bitcoin.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.2 - License certificate

Current through Register Vol. 54, No. 28, July 13, 2024
Licenses for money transmitters shall be issued annually on
				  January 1 of each year, upon approval of applications to be submitted no later
				  than November 1 of the preceding year.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.3 - Application for licenses

Current through Register Vol. 54, No. 28, July 13, 2024
The application to be used for both new licenses and renewals
				  of licenses shall be in such form and contain such information as the
				  Department may from time to time prescribe. Such forms may be obtained from the
				  Department of Banking and Securities, 17 North 2nd Street, 13th Floor,
				  Harrisburg, Pennsylvania 17101-2290.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.4 - Reserved

Current through Register Vol. 54, No. 28, July 13, 2024
The provisions of this §
											19.4 deleted under section 506 of
					 The Administrative Code of 1929 (71 P.S. §
												186); and section 202(C) of the Department of
					 Banking and Securities Code (71 P.S. §
												733-202(C)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.5 - Reports to the Department

Current through Register Vol. 54, No. 28, July 13, 2024
It shall be the duty of the licensee to submit to the
				  Department annual financial statements, with balance sheet and such other
				  financial information as the Department may require from time to time. The
				  material shall be prepared in accordance with generally accepted accounting
				  procedures by an independent public accountant who is registered or licensed to
				  practice as a public accountant by a regulatory authority of a
				  State.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.6 - Advertisements

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Licensees may
				advertise their activities in such form as they desire, but in no instance
				shall any reference to supervision or licensing be made other than by the
				following phrase: "Transmit Money By Check, Draft or Money Order By The
				Department of Banking and Securities, Commonwealth of Pennsylvania."
(b) Agents and subagents shall clearly
				indicate the name of the licensee in a sign publicly displayed in the place of
				business issuing and selling transmittal instruments.
The provisions of this §
											19.6 amended under section 506 of
					 The Administrative Code of 1929 (71 P.S. §
												186); and section 202(C) of the Department of
					 Banking and Securities Code (71 P.S. §
												733-202(C)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.7 - Form of transmittal instruments

Current through Register Vol. 54, No. 28, July 13, 2024
Licensees shall issue a form of instrument which clearly
				  states the name of the licensee and the place of payment. A sample form of all
				  types of instruments sold or issued must be attached to the application
				  submitted by the applicant.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 19 - MONEY TRANSMITTERS › Section 19.8 - Records of licensees

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Books
				and records shall be kept in such a manner that the true condition of the
				licensee may be readily ascertained. Records of instruments sold must indicate
				number, date, and amount.
(b)
				Licensees shall maintain complete records of instruments sold and outstanding
				until paid. Complete records of instruments paid shall be maintained for a
				period of three years from the date of payment.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › PRELIMINARY PROVISIONS › Section 21.1 - Financial information submitted by institutions to the Federal supervisory authorities

Current through Register Vol. 54, No. 28, July 13, 2024
All banking institutions which are required by the
					 Securities Exchange Act of 1934, as amended (15 U.S.C.A. §
											78(a) et seq.), to furnish
					 the Federal supervisory authorities with financial information, shall supply
					 one copy of such information to the Department.
The provisions of this §
												21.1 issued under section 403 of
						the Department of Banking and Securities Code (71 P. S. §
													733-403).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › PRELIMINARY PROVISIONS › Section 21.2 - Unscheduled closing

Current through Register Vol. 54, No. 28, July 13, 2024
(a) In
				  the event of an emergency resulting from civil strife, either actual or
				  threatened, in the vicinity of one or more of the offices of the institution,
				  or from fire, abnormal weather conditions, power failure, or impairment of bank
				  facilities, any of which substantially interferes with the conduct of normal
				  business operations at one or more offices of the institution, such offices
				  shall be permitted to close until conditions return to normal.
(b) If it is deemed necessary by an
				  institution to close its offices because of an emergency as set forth in
				  subsection (a) of this section, it shall not be required to obtain express
				  approval from the Department to effect such a closing. An institution shall,
				  however, give written notice to its primary supervisory authority within five
				  business days after the commencement of business following such closing of one
				  or more of its offices for an emergency as authorized by subsection (a) of this
				  section. Such written notice shall mention the office or offices closed, the
				  duration of the closing and the nature of the emergency.
(c) When used in this section, the term
				  "institution" includes a national bank.
The provisions of this §
												21.2 issued under section 202 of
						the Department of Banking and Securities Code (71 P. S. §
													733-202).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › PRELIMINARY PROVISIONS › Section 21.3 - Saturday banking hours

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The term
				  "banking day" when used in this section means that part of any day on which a
				  bank is open to the public for carrying on substantially all of its banking
				  functions.
(b) All banks engaged in
				  or contemplating Saturday banking hours must determine that accounting
				  procedures are performed in accordance with the provisions of the Uniform
				  Commercial Code (12A P. S. §§ 1-101-10-104).
(c) For purposes of deferred posting and
				  return of items, a bank must perform its accounting procedures prior to
				  midnight of its next banking day for the day on which items are
				  received.
(d) In the instance of
				  banks who no longer perform their own bookkeeping and who have adopted Saturday
				  banking hours, the following rules apply:
(1)
				  Transactions of Friday must be posted at the computer center and returned to
				  the bank by Saturday morning.
(2)
				  Transactions of Friday night and Saturday will have to be sent to the computer
				  center Saturday night for return on Monday morning.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › PRELIMINARY PROVISIONS › Section 21.4 - Accretion of discount on securities

Current through Register Vol. 54, No. 28, July 13, 2024
In order to conform to the reporting requirements of the
					 Securities Exchange Act of 1934 (15 U.S.C. §
											78c et seq.
					 (1971)), State banking institutions shall be permitted to accrete discount, by
					 increasing book value not in excess of par value on obligations of the Federal
					 Government, State or political subdivisions, and corporate obligations of
					 investment grade purchased at a discount, by one of the following bookkeeping
					 methods:
(1) Accumulation of discount
				  in a reserve account until the security written up to par value is disposed of,
				  when proper credit would be made to the undivided profits account.
(2) Taking discount directly into undivided
				  profits as the book value is increased.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › PRELIMINARY PROVISIONS › Section 21.6 - Irregularities

Current through Register Vol. 54, No. 28, July 13, 2024
(a) It is necessary
				  that the Department investigate all irregularities to determine whether
				  criminal proceedings should be instituted. Irregularities are to be reported to
				  the Department immediately upon discovery.
(b) Any irregularity which involves a
				  violation of any law of the Commonwealth and any irregularity, the
				  circumstances surrounding which give rise to a suspicion that a criminal law
				  has been violated, shall be reported to the Department immediately upon
				  discovery. In addition, all other shortages, including teller discrepancies and
				  mysterious disappearances, in the amount of $1,000 or more shall be
				  reported.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › MESSENGER SERVICE › Section 21.11 - Authority to provide messenger service

Current through Register Vol. 54, No. 28, July 13, 2024
An institution may utilize the services of an independent
					 armored car or similar transportation service, which is duly licensed as an
					 express company, for the purpose of picking up deposits or other valuables at
					 the customer's place of business or delivering cash or other valuables which
					 require guarding or special handling. The cost of such service may be paid by
					 the institution.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › MESSENGER SERVICE › Section 21.12 - Agreements

Current through Register Vol. 54, No. 28, July 13, 2024
Messenger service may be furnished only pursuant to a
					 written agreement between the messenger service company and the institution's
					 customer, under which agreement the messenger becomes the agent of the customer
					 of the institution. The agreement shall further provide that the institution
					 assumes no liability for deposits collected by the messenger from the
					 institution's customers until they are received at an office of the institution
					 and that the institution shall not be liable for cash or other valuables after
					 the institution has delivered them to the messenger for transmission to the
					 customer.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › MESSENGER SERVICE › Section 21.13 - Advertisements

Current through Register Vol. 54, No. 28, July 13, 2024
Advertising material employed shall not include any
					 reference to messenger service utilized by the institution. Neither shall the
					 transportation service make reference to its employment by or relationship with
					 the institution by any type of advertising, including legends placed upon the
					 vehicles.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › MESSENGER SERVICE › Section 21.14 - Insurance

Current through Register Vol. 54, No. 28, July 13, 2024
The carrier shall maintain insurance coverage which the
					 institution shall determine to be sufficient for the protection of the
					 institution's customers. Such insurance coverage must be commensurate with the
					 value of the assets transported, but, in no event, be less than the coverage
					 prescribed by other laws or regulations.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › BONDS AND SURETYSHIP › Section 21.21 - Subsidiary corporations

Current through Register Vol. 54, No. 28, July 13, 2024
An institution may guarantee the actions of a subsidiary
					 corporation, as defined in the Securities Exchange Act of 1934 (15 U.S.C. §
											78a
et seq.
(1971)), to the
					 extent that it could assume similar and direct liabilities in its own behalf.
					 The aggregate of all such guarantees and direct liabilities shall at no time
					 exceed the limitations of sections 202(e) and 314(b) of the Banking Code
					 (7 P.
					 S. §§
											202(e) and
					 314(b)) or any other
					 limitations set forth in the Banking Code, without prior written approval of
					 the Department.
The provisions of this §
												21.21 issued under section
						313(a)(iv) of the Banking Code of 1965 (7 P. S. §
													313(a)(iv)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › FUTURES AND PRECIOUS METALS › Section 21.31 - Commodity futures and gold and silver transactions

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An institution may enter into
				  transactions involving commodity futures or gold or silver coin or bullion
				  solely on behalf of customers, upon formal written agreements with customers to
				  purchase or sell for their accounts these items. In no event may an institution
				  engage in these transactions for its own account, except in extensions of
				  credit in the form of repurchase agreements covering silver coin or bullion in
				  the ordinary course of business.
(b) An institution may enter into an
				  agreement with a supplier of gold or silver coin or bullion whereby the
				  institution acts as agent for the supplier and accepts such metals, in whatever
				  form, upon either a consignment basis or for delivery within a few days after a
				  specific order is received, with no right or title to the metals or proceeds
				  from sale thereof, except agent's commission. An institution may not purchase
				  gold or silver from a customer except as the agent of such a supplier. An
				  institution shall determine whether its blanket bond covers gold or silver in
				  its possession or whether separate insurance is necessary.
(c) An institution may not take pledges of
				  commodity futures or gold or silver coin or bullion as collateral security for
				  a loan unless the market value of such pledged asset at all times is not less
				  than 120% of the value of the loan.
(d) An institution shall disclose to
				  customers proposing to enter into the aforementioned transactions the general
				  risks that are inherent therein, as well as the expenses customarily charged in
				  connection with the transactions. An institution shall disclose that these
				  markets are volatile, that there is a possibility that a loss will be incurred,
				  that such investments provide no yield or interest, and that if bullion is not
				  left for safekeeping with the institution, the customer may incur a substantial
				  charge for authentication of the bullion at the time of sale. In all sales or
				  purchases of gold or silver made by an institution under this section, the
				  institution shall disclose that it is acting as agent of a supplier and the
				  identity of the supplier.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › ACCEPTANCES › Section 21.41 - Acceptances

Current through Register Vol. 54, No. 28, July 13, 2024
An institution may accept drafts drawn upon it, under the
					 provisions set forth in section 308(a) of the Banking Code of 1965
					 (7 P.
					 S. §
											308(a)), having
					 not more than 270 days sight to run from the time of
					 acceptance.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS › CONTROL › Section 21.51 - Executive officer

Current through Register Vol. 54, No. 28, July 13, 2024
(a) For
				  purposes of sections 1414 and 1415 of the Banking Code of 1965 (7 P. S.
				  §§
											1414 and
				  1415), an "executive officer"
				  of an institution or affiliate is defined as a person who participates or has
				  authority to participate in major policymaking functions of the institution or
				  affiliate, whether or not such person has an official title, has a title which
				  designates such person an assistant, or is serving without salary or other
				  compensation. The chairman of the board, the president, every vice president,
				  the cashier, the secretary, and the treasurer of the institution or affiliate
				  is considered an executive officer unless any such person is excluded by
				  resolution of a board of directors or by the bylaws of the institution or
				  affiliate from participation in major policymaking functions of the institution
				  or affiliate and such person does not actually so participate.
(b) A director or trustee of an institution
				  or affiliate, when acting solely in the capacity of a director or trustee, is
				  not an executive officer for purposes of sections 1414 and 1415 of the Banking
				  Code of 1965 (7 P. S. §§
											1414 and
				  1415).
The provisions of this §
												21.51 issued under section 1414 of
						the Banking Code of 1965 (7 P. S. §
													1414).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 27 - LEEWAY INVESTMENTS › Section 27.3 - Limitations on leeway investments

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A bank or bank and trust company:
(1) Shall limit its leeway investments in one
				corporation to 2.0% of the institution's capital and surplus at the time of
				acquisition of the investments.
(2)
				Shall limit its aggregate total of leeway investments to 10% or less of the
				institution's capital and surplus at the time of acquisition of the
				investment.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 27 - LEEWAY INVESTMENTS › Section 27.4 - Records

Current through Register Vol. 54, No. 28, July 13, 2024
Leeway investments shall be identified on the general books
				  of the institution as "Leeway Investments" and in the absence of default or
				  bankruptcy will be permitted to be carried on the institution's books at
				  amortized acquisition costs.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 28 - SAVINGS BANKS SERVICE CORPORATIONS › Section 28.1 - Permissible activities

Current through Register Vol. 54, No. 28, July 13, 2024
A corporation qualifying under section 504(b)(xiii) of the
				  Banking Code (7 P. S. §
										504(b)(xiii)) may engage,
				  either separately or in conjunction with others, in the following activities,
				  in addition to activities otherwise permitted by statute or authorized by the
				  Department:
(1) Acquiring interests in
				improved or unimproved real estate held for development, rental or sale;
				financing of real estate transactions of all types, subject to the prudent man
				rule of section 504(c) of the Banking Code; developing real estate of all
				types, if each development is completed within 5 years of the commencement of
				development, unless that period is extended by the Department.
(2) Leasing or managing real or personal
				property.
(3) Preparing tax returns
				and furnishing advice with respect to tax returns.
(4) Providing services for relocation of
				employes-of the bank or a subsidiary or of other employers-including the
				purchase of real or personal property in connection with the
				relocation.
(5) An activity
				permissible to a subsidiary under section 203(d) of the Banking Code
				(7 P.
				S. §
										203(d)).
(6) Another activity which the Department
				determines to be:
(i) Reasonably related to
				the business of the savings bank, or similar to an activity permissible for a
				corporation formed or operated under section 504(b)(xiii) of the Banking Code,
				or reasonably incident to those activities listed in paragraphs (1)-(5) and
				consistent with the purposes expressed in section 103(a) of the Banking Code
				(7 P.
				S. §
											103(a)), and not
				in conflict with the statutes of the Commonwealth.
(ii) The Department will make a determination
				as to an activity permissible under this paragraph only upon receipt from a
				savings bank of an application in writing in the form prescribed by the
				Department. A savings bank may not engage in an activity permitted under this
				paragraph until an approval in writing is given by the Department.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 28 - SAVINGS BANKS SERVICE CORPORATIONS › Section 28.2 - Nonlimitation

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter may not be construed to limit or restrict an
				  otherwise permissible activity or investment of a savings bank or its
				  subsidiaries or affiliates.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 29 - BORROWINGS › Section 29.1 - Borrowings on account of sale of participations

Current through Register Vol. 54, No. 28, July 13, 2024
The sale of a participation in an item such as certificates
				  of deposit, commercial loan pools, collateral loan pools and Treasury notes,
				  including securities, shall constitute money borrowed if either the selling
				  institution is obligated to repurchase the participation or the maturity of the
				  participation certificate differs from those of the item comprising the pool or
				  item participated.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 29 - BORROWINGS › Section 29.2 - Treasury Tax and Loan Account

Current through Register Vol. 54, No. 28, July 13, 2024
Funds made available to an institution by the United States
				  Treasury as a note option under the provisions of the Tax and Loan Account Law,
				  91 Stat. 1227 (1977) are defined as "Other Liabilities" and does not constitute
				  borrowing of money.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 29 - BORROWINGS › Section 29.3 - Borrowings from affiliates

Current through Register Vol. 54, No. 28, July 13, 2024
Borrowings by an institution owned or controlled by a bank
				  holding company from the bank holding company and other bank or nonbank
				  subsidiaries of the bank holding company does not constitute borrowing of
				  money. The borrowings shall be made in conformance with a written policy
				  established by the bank holding company governing the financial planning of the
				  bank holding company and its subsidiaries.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 30 - NEGOTIABLE ORDER OF WITHDRAWAL ACCOUNTS › Section 30.1 - 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:
Commercial bank
-A bank, a bank and trust
				  company, or a national bank.
Draft
-A negotiable instrument which is an
				  order to pay. Reference should be made to
				  13 Pa.C.S. §
										3104(a) and
				  (b)(1) (relating to form of negotiable
				  instruments; "draft"; "check"; "certificate of deposit"; "note").
NOW
-A negotiable order of withdrawal
				  instrument which has all the attributes of negotiability required by
				  13 Pa.C.S. §
										3104(a).
NOW account
-An account under the terms of
				  which money may be withdrawn by means of a NOW which requires the savings bank
				  to pay the sum specified to a named third party.
Savings bank
-As defined in section 102(x) of
				  the Banking Code (7 P. S. §
										102(x)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part II - Bureau of Banks › Chapter 30 - NEGOTIABLE ORDER OF WITHDRAWAL ACCOUNTS › Section 30.2 - Rules governing NOW accounts

Current through Register Vol. 54, No. 28, July 13, 2024
A savings bank may permit the withdrawal of deposits by means
				  of a NOW, subject to the following terms and conditions:
(1) Savings banks may pay interest on
				accounts which are subject to withdrawal of funds by means of a NOW only as
				provided by Federal statute or regulation.
(2) Savings banks shall issue monthly
				statements to depositors who have a NOW account for any month in which there
				has been any activity on such account.
(3) Each new NOW account contract entered
				into between a savings bank and a depositor shall contain the following
				statement, conspicuously placed thereon:
NOTICE
UNDER PENNSYLVANIA LAW (NAME OF SAVINGS BANK) RESERVES THE
				  RIGHT TO REQUIRE NOT LESS THAN 14 DAYS' PRIOR WITHDRAWAL NOTICE BEFORE PAYING
				  REQUESTS FOR WITHDRAWAL FROM NOW ACCOUNTS.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31 - INVESTMENT OPERATIONS › Section 31.1 - Maximum principal amount of loans over 80% of fair market value

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The principal of the obligation on loans
				in excess of 80% of the fair market value of one family residential property to
				be encumbered shall not exceed $40,000 provided, however, that there shall be
				no amount limitation if at least the top 20% of such loan is insured or
				guaranteed by a mortgage insurance company which has been approved by the
				Department and licensed by the Insurance Department of the
				Commonwealth.
(b) Such loans shall
				not exceed 90% of fair market value.
The provisions of this section cited in 10 Pa. Code §
											31.2 (relating to loans in excess
					 of statutory authorization on one-family residential
					 properties).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31 - INVESTMENT OPERATIONS › Section 31.2 - Loans in excess of statutory authorization on one-family residential properties

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The limitation
				of 90% which exceeds the 80% as set forth in section 903 of the act
				(15
				P. S. §
										5903(3)) shall
				be 95% in the case of any loan with respect to which the additional following
				requirements are met:
(1) The amount of the
				loan does not exceed the lesser of 95% of the value of the real estate securing
				the loan, or 95% of the purchase price of the security property.
(2) Not less than the top 20% of such loan
				shall be insured or guaranteed by a mortgage insurance company which has been
				approved by the Department and licensed by the Insurance Department of the
				Commonwealth.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31 - INVESTMENT OPERATIONS › Section 31.3 - Over 75% loans on properties for residential use by five or more families

Current through Register Vol. 54, No. 28, July 13, 2024
The principal of the obligation on loans secured by
				  properties designed primarily for residential use by five or more families or
				  upon the security of real estate on which such a building is to be erected or
				  upon the security of real estate on which a building consisting of dwelling
				  units used to house persons affiliated with a college, university, hospital, or
				  other institution is erected or to be erected may not exceed 90% of the fair
				  market value of such property.
The provisions of this §
											31.3 issued under section 144 of
					 the Savings Association Code of 1967 (7 P. S. §
												6020-144).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31 - INVESTMENT OPERATIONS › Section 31.4 - Terms of mortgage

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				first monthly payment date on direct reduction loans to finance new
				construction may be postponed to a date not later than 36 months after the date
				of the first advance made on the loan, provided that the interest on said loan
				shall be payable not less frequently than semiannually.
(b) Term construction loan mortgages for the
				purpose of financing new construction of a one to four-family residential
				property and residential property designed for use by more than four families
				may be made for a term not exceeding 36 months without requiring amortization.
				Interest shall be payable not less frequently than semiannually. Said loans
				shall not exceed 80% of the fair market value of the property.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31 - INVESTMENT OPERATIONS › Section 31.5 - Alternatives to direct reduction loans

Current through Register Vol. 54, No. 28, July 13, 2024
Loans other than those set forth in section 915(b)-(f) of the
				  Savings Association Code of 1967 (7 P. S. §
										6020-155(b)-(f)) and any
				  others which by statute demand, require or permit a specific method of payment
				  shall be written on a direct reduction loan basis or may be written on any of
				  the following terms and conditions on all of which cases interest shall be
				  payable monthly:
(1) May be written
				for a period not exceeding 10 years provided not less than 1.0% per year of the
				principal of the loan is amortized within the term of the loan on a monthly
				basis and the entire balance of the loan is due and payable at the maturity
				date.
(2) May be written to require
				interest payments only during the first 2 years of the mortgage loan and
				thereafter on a direct reduction basis.
(3) May be written on a monthly payment basis
				to require interest and reduced payments of the principal, not less, however,
				than 1/2 of 1.0% of principal per year, for a period of 5 years and thereafter
				on a direct reduction loan basis.
(4) A direct reduction loan may be written to
				require payment of the principal at any stated time. The loan documents may
				contain provisions for renegotiations or "rollovers" of the mortgage upon
				expiration of the term for which the mortgage was written or extended, subject
				to substantially the same terms, conditions, requirements, and consumer
				protective provisions which are applicable in the case of Federal savings and
				loan associations as set forth in
				12 CFR
				545.6-4 a, as published at 45 FR 24111 (April
				9, 1980), in accordance with §
									31.6 (relating to renegotiable
				rate mortgage loans).
The provisions of this §
											31.5 issued under section 202 of
					 the Department of Banking and Securities Code (71 P. S. §
												733-202); and sections 103, 701(a)(22), 901
					 and 915 of the act of December 14, 1967 (P. L. 746, No. 345) (7 P. S.
					 §§
												6020-3,
					 6020-101(a)(22), 6020-141 and
					 6020-155).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31a - TRUST POWERS › Section 31a.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:
Fiduciary
-An association undertaking to act
				  alone, through an affiliate, or jointly with others primarily for the benefit
				  of another in all matters connected with its undertaking. The term includes
				  trustee; executor; administrator; guardian; receiver; managing agent; registrar
				  of stocks and bonds, escrow; transfer, or paying agent; trustee or employe
				  pension, welfare, and profit-sharing trusts, and any other similar
				  capacity.
Fiduciary records
-All matters which are
				  written, transcribed, recorded, received or otherwise come into the possession
				  of an association and are necessary to preserve information concerning the
				  actions and events relevant to the fiduciary activities of an
				  association.
Managing agent
-The fiduciary relationship
				  assumed by an association upon the creation of an account which names the
				  association as agent and confers investment discretion upon the
				  association.
Trust department
-That group of officers and
				  employes of an association or of an affiliate of an association to whom are
				  assigned the performance of fiduciary services by the association.
Trust powers
-The power to act in any
				  fiduciary capacity authorized by section 701(a)(24) of the Savings Association
				  Code of 1967 (7 P. S. § .6020-101(a)(24)).
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31a - TRUST POWERS › Section 31a.2 - Applications

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An association
				desiring to exercise fiduciary powers, either through a trust department or
				through an affiliate, shall file with the Department an application indicating
				which trust services it wishes to offer and providing the information necessary
				to make the determinations under subsection (b).
(b) In addition to any other facts or
				circumstances deemed proper, the Department, in passing upon an application to
				exercise trust powers, will give consideration to:
(1) the financial condition of the
				association;
(2) the needs of the
				community for fiduciary services and the probable volume of such fiduciary
				business available to the association;
(3) the general character and ability of the
				management of the association;
(4)
				the nature of the supervision to be given to the fiduciary activities,
				including the qualifications, experience and character of the proposed officer
				or officers of the trust department; and
(5) whether the association has available
				legal counsel to advise and pass upon fiduciary matters wherever
				necessary.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31a - TRUST POWERS › Section 31a.3 - Administration of trust powers

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				The responsibility of the board of directors and the administration of accounts
				shall be as follows:
(1)
Responsibility of the board of directors.
The board of
				directors is responsible for the proper exercise of fiduciary powers by the
				association. All matters pertinent thereto, including the determination of
				policies, the investment and disposition of property held in a fiduciary
				capacity, and the direction and review of the actions of all officers, employes
				and committees utilized by the association in the exercise of its fiduciary
				powers are the responsibility of the board. In discharging this responsibility,
				the board of directors may assign, by action duly entered in the minutes, the
				administration of such of the association's trust powers as it may consider
				proper to assign to such director, officer, employe, or committee as it may
				designate.
(2)
Administration of accounts.
No fiduciary account shall be
				accepted without the prior approval of the board or of the director, officer,
				or committee to whom the board may have assigned the performance of that
				responsibility. A written record shall be made of such acceptances and of the
				relinquishment or closing out of all fiduciary accounts. Upon the acceptances
				of an account for which the association has investment responsibilities, a
				prompt review of the assets shall be made. The board shall also ensure that at
				least once during every calendar year thereafter, and within 15 months of the
				last review, all the assets held in or for each fiduciary account for which the
				association has investment responsibilities are reviewed to determine the
				advisability of retaining or disposing of such assets. The board of directors
				should act to ensure that all investments have been made in accordance with the
				terms and purposes of the governing instrument.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31a - TRUST POWERS › Section 31a.4 - Books and accounts

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
Every association exercising trust powers shall keep
				its fiduciary records separate and distinct from other records of the
				association. All fiduciary records shall be kept and retained for such time as
				to enable the association to furnish such information or reports with respect
				thereto as may be required by the Department. The fiduciary records shall
				contain full information relative to each account.
(b)
Record of pending litigation.
Every association shall keep an adequate record of all pending
				litigation to which it is a party in connection with its exercise of trust
				powers.
Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part III - Savings Association Bureau › Chapter 31a - TRUST POWERS › Section 31a.5 - Audit of trust department

Current through Register Vol. 54, No. 28, July 13, 2024
At least once during each calendar year, the association's
				  trust department shall be audited by auditors in a manner consistent with
				  section 1407 of the Banking Code (7 P. S. §
										1407). A copy of the report of the audit
				  shall be promptly filed with the Department.