N.J. Admin. Code § 3:14-1.1

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:14-1.1 - Definitions

The following words and terms shall have the following meanings when used in this chapter, unless the context clearly indicates otherwise:

"Affiliate" means an entity related by common control or substantial ownership to a bank holding company, a banking subsidiary of a bank holding company, a bank, a savings bank, a bank service corporation of a bank holding company, bank, or savings bank, or any other non-banking subsidiary of a bank holding company, bank or savings bank.

"Appropriate Federal banking agency" means the Board of Governors of the Federal Reserve System, the local Federal Reserve Bank having jurisdiction, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of the Currency.

"Bank" shall have the meaning of that term in 17:9A-1(1).

"Bank services" means:

1. Services such as check and deposit sorting and posting, computation and posting of interest and other credits and charges, preparation and mailing of checks, statements, notices, and similar items, or any other clerical, bookkeeping, accounting, statistical, or similar functions;

2. Any service, other than deposit taking, that the Board of Governors of the Federal Reserve System determines by regulation to be permissible for a bank holding company pursuant to Section 4(c)(8) of the Bank Holding Company Act ( 12 U.S.C.A. § 1843(c)(8)), performed at any geographical location, subject to applicable Federal or state branching laws regulating the geographic location of banks to the extent that those laws are applicable to any activity authorized by this paragraph 2;

3. Any service, other than deposit taking, approved for such bank service corporation, or for bank service corporations in general, by the Board of Governors of the Federal Reserve System, or by the appropriate local Federal Reserve Bank;

4. Any service, other than deposit taking, which a bank holding company is authorized to provide to its affiliates pursuant to 12 C.F.R. § 225.21(a)(1), § 225.22(a)(1), or § 225.22(a)(2), provided however that services constituting permitted bank services under this paragraph 4 and which would not constitute permitted bank services under paragraphs 1, 2, or 3 above are provided only to an affiliate of the bank service corporation; and

5. Any service, other than deposit taking, not described in paragraphs 1, 2, 3 or 4 above, and which has been fully described in an application to the Commissioner, which application the Commissioner has approved, or the period during which the Commissioner could disapprove the application as set forth in 3:14-1.3(a) has expired.

"Bank service corporation" means:

1. A corporation which is organized under Title 14 or Title 14A of the statutes of this State, or which is organized under a general incorporation statute of another state of the United States and which has a Certificate of Authority from the New Jersey Secretary of State or the New Jersey Department of Treasury, Division of Revenue to transact business in this State, to perform bank services, and all of whose capital stock is owned by one or more banking institutions; or

2. A limited liability company as defined in this chapter.

"Banking institution" means a bank organized under the laws of this State or the laws of another state of the United States, a savings bank organized under the laws of this State or under the laws of another state of the United States, and a national bank organized under the laws of the United States.

"Invest" means an advance of funds to a bank service corporation, whether by the subscription to or purchase of stock, the making of a loan, or otherwise, except a payment for rent earned, goods sold and delivered, or services rendered prior to the making of such payment.

"Limited liability company" means any non-corporate company, partnership, trust, or similar business entity organized under the law of a state (as defined in section 3 of the Federal Deposit Insurance Act) that provides that a member or manager of such company is not personally liable for a debt, obligation, or liability of the company solely by reason of being, or acting as a member or manager of such company and all of whose ownership interest is held by banking institution.

"Person" means natural persons, sole proprietors, limited liability companies, partnerships, corporations, and all other business entities, no matter how designated.

"Savings bank" shall have the meaning of that term in 17:9A-1(13).

N.J. Admin. Code § 3:14-1.1

Amended by R.2004 d.309, effective 8/16/2004.
See: 36 N.J.R. 1262(a), 36 N.J.R. 3875(a).
Codified "Bank service corporation" as 1 and 2 and rewrote 2; added "Limited liability Company"; in "Person", substituted "natural persons, sole proprietors, limited liability companies" for "individuals" preceding ", partnerships".
Amended by R.2010 d.036, effective 2/16/2010.
See: 41 N.J.R. 2849(a), 42 N.J.R. 587(b).
In paragraph 1 of definition "Bank service corporation", inserted "or the New Jersey Department of Treasury, Division of Revenue".