N.J. Admin. Code § 3:11-3.1

Current through Register Vol. 56, No. 12, June 17, 2024

Section 3:11-3.1 - Terms of organization

(a) Banks are authorized to organize or to participate in the organization and to operate, in accordance with 17:9A-27(a), small business investment companies formed under the Small Business Investment Act of 1958 15 U.S.C. §§ 661 et seq., under the following terms and conditions.

1. No bank shall hold shares of stock in more than one such company without prior approval of the Commissioner;

2. A bank shall in no event hold shares of stock in any such company in an amount aggregating more than five percent of the capital funds of the bank;

3. No bank shall make a loan or advance to or purchase debentures of any such company if the aggregate of such loans, advances and purchases, together with the stock investment of the bank in such company, will exceed more than 15 percent of the capital funds of the bank;

4. No bank shall make a loan to any individual, partnership, corporation or association when the amount of that loan together with the following will exceed more than 15 percent of the capital funds of the bank;

i. The amount of the liabilities of any nature of that individual, partnership, corporation or association to any small business investment company; and

ii. The acquisition cost of any shares of that corporation owned by the small business investment company in which the bank has controlling interest.

N.J. Admin. Code § 3:11-3.1

As amended, R.1976 d.416, eff. 12/16/1976.
See: 8 New Jersey Register 498(b), 9 New Jersey Register 4(b).
As amended, R.1977 d.23, eff. 1/28/1977.
See: 9 New Jersey Register 3(b), 9 New Jersey Register 112(c).