N.J. Admin. Code § 3:11-11.4

Current through Register Vol. 56, No. 17, September 3, 2024

Section 3:11-11.4 - Subsidiary companies

(a) A bank shall be prohibited from contributing to the capital or investing in the capital stock of a subsidiary company, pursuant to 17:9A-24.1 2, in which it has a capital or stock investment pursuant to some other provision of law.

(b) A bank may contribute to the capital or invest in the capital stock of only those subsidiary companies which:

1. Engage in the activities prescribed in this subchapter; and/or

2. Are specifically approved by the Commissioner.

(c) This subchapter shall not prohibit a bank from making loans or incurring liabilities authorized by a provision of law, other than 17:9A-24.1 2, to any subsidiary company in which the bank has contributed to the capital or invested in the capital stock pursuant to this subchapter. The total liabilities, not including capital investments made pursuant to this subchapter, of any one subsidiary company to the bank incurred by virtue of any provision of law, including this subchapter, are subject to the total liability limitations in 17:9A-62.

N.J. Admin. Code § 3:11-11.4