N.J. Admin. Code § 3:11-11.8

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

Section 3:11-11.8 - Examination of subsidiary companies

(a) Each subsidiary company shall be subject to examination and supervision by the Commissioner in the same manner and to the same extent as the bank. If upon examination the Commissioner shall ascertain that the subsidiary company is created or operated in violation of law or regulation or that the manner of operation is detrimental to the business of the bank and its depositors, the Commissioner may order the bank to dispose of all or part of such subsidiary upon such terms as the Commissioner may deem proper. The cost of an examination into the condition of an existing business proposed to be acquired and operated as a subsidiary company shall be paid by the bank. The cost of any subsequent examinations of a subsidiary company shall be borne by the subsidiary company or the bank.

(b) A bank shall file a letter agreement with the Department signed by both the bank and the subsidiary company, authorizing the Department to conduct such examinations of the records of the subsidiary company that relate to the bank's leeway investment as the Commissioner deems appropriate.