N.J. Admin. Code § 3:6-14.3

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

Section 3:6-14.3 - Certificate of authority to transact trust business

(a) A foreign bank seeking to obtain or to renew a certificate of authority to transact trust business in this State pursuant to 17:9A-316 and 318 shall submit the following:

1. A Consolidated Report of Condition, as required by the Federal or State regulator of the bank, indicating the bank's financial condition as of the close of business on the December 31st immediately prior to the application. This condition shall be deemed satisfied if the report is filed by the bank with its Federal or State regulator and adequate provision is made for the New Jersey Department of Banking and Insurance to have access to that filing;

2. The fee required by 3:6-14.2(a)2 for filing a statement of financial condition. This fee may be waived if the Department obtains the financial statement from another regulator via the internet;

3. The biennial fee required by 3:6-14.1; and

4. Proof of current insurance coverage consisting of a copy of the insurance policy covering the trust activities conducted or to be conducted by the foreign bank in New Jersey;

(b) A foreign bank seeking its initial certificate of authority shall also submit the following:

1. A copy of its certificate of incorporation or articles of association and all amendments thereto, certified by its president or a vice president and attested under its corporate seal by its secretary, an assistant secretary, its cashier or an assistant cashier;

2. A certificate executed by its president or a vice president and attested under its corporate seal by its secretary, an assistant secretary, its cashier or an assistant cashier, affirming that so long as it shall have a New Jersey certificate of authority it will:

i. Comply with all the requirements of the laws of this State applicable to the transaction of its trust business in this State; and

ii. Promptly following adoption, submit to the Commissioner a copy of each amendment or other change in its certificate of incorporation or articles of association, certified and attested as provided in (b)1 above;

3. A power of attorney, executed by its president or vice president and attested under its corporate seal by its secretary, an assistant secretary, its cashier or an assistant cashier, authorizing the Commissioner and his or her successors in office to accept service of process upon the foreign bank in any action or proceeding against it affecting or relating to any estate or trust administered under the laws of this State. Such power of attorney shall provide that any such service of process upon the Commissioner shall have the same force and validity as if served directly upon the foreign bank, and that the authority therein granted shall be irrevocable and shall continue in force indefinitely, notwithstanding the expiration, revocation or surrender of the certificate of authority or the non-renewal thereof; and

4. A letter written by its home state regulator or an attorney opinion letter, confirming that a qualified bank, as defined in 17:9A-1(12), is permitted to transact trust business in the jurisdiction in which the foreign bank has its principal office without conditions or restrictions that are significantly more burdensome than those imposed upon foreign banks seeking to transact trust business in New Jersey.

(c) The holder of a certificate of authority shall notify the Department within 30 days of a change of name of the institution or of the decision of the institution to cease trust operations in New Jersey.

(d) A foreign bank that holds a valid certificate of authority from the Department shall be authorized to have a certificate of standing issued by the Department when such a document is requested by a third party. A qualified bank, as defined in 17:9A-1(12), shall obtain its certificate of standing or other authorization to conduct trust business in another jurisdiction from the home state regulator of the qualified bank.

N.J. Admin. Code § 3:6-14.3

New Rule, R.2005 d.242, effective 7/18/2005.
See: 37 N.J.R. 1108(a), 37 N.J.R. 2673(a).
Amended by R.2006 d.406, effective 12/4/2006.
See: 38 N.J.R. 2552(a), 38 N.J.R. 5008(a).
In (b)1 and (b)2ii, inserted "or articles of association".