N.J. Admin. Code § 3:14-1.2

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

Section 3:14-1.2 - Permissible activities

(a) Subject to 3:14-1.3, a banking institution may engage in the following activities:

1. Contracting with a bank service corporation for the provision of bank services;

2. Investing in a bank service corporation, except that:

i. No bank shall invest in any one bank service corporation if the total of all the bank's investments in that bank service corporation exceeds, or if the making of such an investment would cause such total to exceed, 10 percent of the bank's unimpaired capital stock and surplus;

ii. No bank shall invest in a bank service corporation if the total of all the bank's investments in bank service corporations exceeds, or if the making of such an investment would cause such total to exceed, 15 percent of the bank's unimpaired capital stock and surplus;

iii. No savings bank shall invest in any one bank service corporation if the total of all the savings bank's investments in that bank service corporation exceeds, or if the making of such an investment would cause such total to exceed, five percent of the surplus of the savings bank;

iv. No savings bank shall invest in a bank service corporation if the total of all the savings bank's investments in bank service corporations exceeds, or if the making of such an investment would cause such total to exceed, 7.5 percent of the surplus of the savings bank; and

v. No bank or savings bank shall invest in a bank service corporation unless that bank service corporation has agreed in writing to submit to periodic examinations and to regulation by the Department. The costs of such examination shall be borne by the bank or savings bank.

N.J. Admin. Code § 3:14-1.2

Amended by R.2004 d.309, effective 8/16/2004.
See: 36 New Jersey Register 1262(a), 36 New Jersey Register 3875(a).
In (a)2v, added the second sentence.