Title 22, Banks And Financial Institutions

§412:6-204 Operating subsidiaries. (a) "Operating subsidiary" means a corporation other than a corporation referred to in section 412:6-306(g)(2) to (7) of which more than fifty per cent of the voting securities is held by a savings bank. (b) An operating subsidiary may engage in…

PART III. LOANS AND INVESTMENTS §412:6-300 Applicability of part. This part sets forth the requirements and restrictions for lending and investments by all savings banks. A savings bank may make loans and extensions of credit and may invest its assets as may be permitted by this …

§412:6-301 General requirements for loans. A savings bank shall make loans and extensions of credit that are consistent with prudent lending practices and in compliance with all applicable federal and state law. [L 1993, c 350, pt of §1]

§412:6-302 Requirements and limits for certain loans. (a) Not less than fifty per cent of the amount of loans and extensions of credit made by a savings bank shall be in loans and extensions of credit secured by real estate. (b) The aggregate amount loaned by any savings bank for…

§412:6-303 Limitations on loans and extensions of credit to one borrower. (a) No savings bank shall permit a person to become indebted or liable to it, either directly or indirectly, on loans and extensions of credit, including any credit exposure arising out of derivative transa…

§412:6-304 Loans and extensions of credit to executive officers, directors, principal shareholders and affiliates. No savings bank shall make any loan or extension of credit in violation of section 18(j) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(j). [L 1993, c 350, pt…

§412:6-305 General requirement for investments. A savings bank shall make investments that are consistent with prudent banking practices and in compliance with all applicable federal and state law. [L 1993, c 350, pt of §1]

§412:6-306 Permitted investments. (a) To the extent specified herein, a savings bank may invest its own assets in: (b) A savings bank may invest its own assets in bonds, securities, or similar obligations issued by this State or any county of this State, through an appropriate ag…

§412:6-307 Deposits made by savings banks. A savings bank may deposit any of its funds with (1) a federal reserve bank or a federal home loan bank in any amount, or (2) another depository institution, provided that the net deposits in any one depository institution does not excee…

ARTICLE 7. SAVINGS AND LOAN ASSOCIATIONS PART I. GENERAL PROVISIONS §412:7-100 Definition. In this article, "savings and loan association" means a corporation that has the authority to operate as a savings and loan association under this chapter. [L 1993, c 350, pt of §1; am L 20…

§412:7-101 Necessity for savings and loan association charter. Except as expressly permitted by federal law or this chapter, no person shall engage in any activity for which a charter to operate as a savings and loan association is required by this chapter, including without limi…

PART II. POWERS OF SAVINGS AND LOAN ASSOCIATIONS §412:7-200 General powers. (a) Except as expressly prohibited or limited by this chapter, a savings and loan association shall have the power to solicit, accept and hold deposits, engage in other activities which are usual or incid…

§412:7-201 Powers granted under federal law. (a) In this section "federal power" means any activity, right, privilege, or immunity granted to a federal savings and loan association under any federal statute, rule, regulation, interpretation or court decision. (b) Any savings and …

§412:7-202 Membership in federal home loan bank. Any savings and loan association may become a member of a federal home loan bank organized under authority of the Federal Home Loan Bank Act, or any successor or similar system of federal home loan banks established by Congress, an…

§412:7-203 Service corporations. (a) "Service corporation" means a corporation whose stock is owned entirely by one or more state or federally chartered savings and loan associations or savings banks. (b) Subject to the approval of the commissioner, a savings and loan association…

§412:7-204 Operating subsidiaries. (a) "Operating subsidiary" means a corporation other than a corporation referred to in section 412:7-306(g)(2) to (7) of which more than fifty per cent of the voting securities is held by a savings and loan association. (b) An operating subsidia…

PART III. LOANS AND INVESTMENTS §412:7-300 Applicability of part. This part sets forth the requirements and restrictions for lending and investments by all savings and loan associations. A savings and loan association may make loans and extensions of credit and may invest its ass…

§412:7-301 General requirements for loans. A savings and loan association shall make loans and extensions of credit that are consistent with prudent lending practices and in compliance with all applicable federal and state law. [L 1993, c 350, pt of §1]

§412:7-302 Requirements and limits for certain loans. (a) Not less than sixty per cent of the amount of loans and extensions of credit made by a savings and loan association shall be in loans and extensions of credit secured by real estate. (b) The aggregate amount loaned by any …

§412:7-303 Limitations on loans and extensions of credit to one borrower. A savings and loan association shall comply with the lending limitations with respect to one borrower contained in section 5u of the Home Owners' Loan Act of 1933, as amended, 12 U.S.C. §1464u. [L 1993, c 3…

§412:7-304 Loans and extensions of credit to executive officers, directors, principal shareholders and affiliates. No savings and loan association shall make any loan or extension of credit in violation of section 11 of the Home Owners' Loan Act of 1933, as amended, 12 U.S.C. §14…

§412:7-305 General requirement for investments. A savings and loan association shall make investments that are consistent with prudent banking practices and in compliance with all applicable federal and state law. [L 1993, c 350, pt of §1]

§412:7-306 Permitted investments. (a) To the extent specified herein, a savings and loan association may invest its own assets in: (b) A savings and loan association may invest its own assets in bonds, securities, or similar obligations issued by this State or any county of this …

§412:7-307 Deposits made by savings and loan associations. A savings and loan association may deposit any of its funds with (1) a Federal Reserve bank or a federal home loan bank in any amount, or (2) another depository institution, provided that the net deposits in any one depos…

ARTICLE 8. TRUST COMPANIES PART I. GENERAL PROVISIONS §412:8-100 Applicability of article. This article shall apply to all financial institutions chartered under this article as trust companies or otherwise authorized to engage in the trust business under this chapter, whether th…

§412:8-101 Definitions. In this article: "Client" means a customer of a trust company, including without limitation a settlor or beneficiary with a vested interest, the grantor of a power, or the principal in an agency relationship. When context permits, both the settlor and the …

§412:8-102 Necessity for trust company charter. No person shall engage in the business of a trust company in this State or control any other person engaging in the business of a trust company in this State, except through a trust company incorporated in this State and chartered u…

§412:8-103 Authority to serve as trustee. Unless chartered as a trust company under this chapter or otherwise specifically authorized by the laws of this State, no person shall hold itself out to the general public as being available to serve as a trustee or trust company, whethe…

PART II. POWERS OF TRUST COMPANIES §412:8-200 General powers. (a) Except as expressly prohibited or limited by this chapter, a trust company shall have the fiduciary powers specified in section 412:8-201, such powers as are granted to trustees generally by law, such other powers …

§412:8-201 Fiduciary powers. Every trust company shall have the power and authority to serve as a trustee, personal representative, conservator, assignee for the benefit of others, or receiver, subject to the duties imposed by the instrument or by law. As used herein, the term "i…

§412:8-202 Acting as agent. (a) A trust company may act as an agent on behalf of a principal in the transaction of any business or in the management of any property, real, personal or mixed, with such powers as the trust company may exercise under sections 412:8-200, 412:8-201, a…

§412:8-203 Use of nominees. A trust company acting in a fiduciary or agency capacity, and any fiduciary acting as a co-fiduciary with a trust company, may cause any stock, bond, or other security held in such capacity to be registered or held in the name of a nominee or nominees …

§412:8-204 Agreement between trust companies and banks. A trust company granted full trust powers may contract by written agreement with any bank or national banking association to carry on trust services in the bank's or national banking association's name and for its account at…

PART III. INVESTMENT OF TRUST COMPANY ASSETS §412:8-300 Applicability of part. This part sets forth the requirements and restrictions for investments made by all trust companies. No trust company shall invest its assets except as may be permitted by this part and as may be provid…

§412:8-301 Permitted investments of capital and surplus. (a) To the extent specified herein, a trust company may invest its own assets in: (b) A trust company may invest its own assets in bonds, securities, or similar obligations issued by this State or any county of this State, …

§412:8-302 Deposits made by trust companies. A trust company may deposit any of its funds with a depository institution. [L 1993, c 350, pt of §1]

PART IV. INVESTMENT OF FIDUCIARY ASSETS §412:8-400 General requirements. Within the limits of the standard of a prudent investor, a trust company as fiduciary, custodian, agent, personal representative, or otherwise may acquire and retain every kind of property, real, personal, o…

§412:8-401 Trust funds awaiting investment. (a) Except as may be otherwise provided by the terms of the trust, a trust company holding trust funds awaiting investment, distribution, or other use shall place any funds in excess of $100 or an amount equal to the aggregate sum it ho…

§412:8-402 Common trust fund investments. (a) As used in this chapter the term "common trust funds" shall have the same meaning as under section 584 of the Internal Revenue Code of 1986, as the same may be hereafter amended, and shall also include any other type of collective inv…

§412:8-403 Disclosure of fees. All fees and commissions charged by a trust company to its clients or the manner by which fees and commissions shall be determined shall be disclosed in writing prior to rendering the services for which the fees or commissions are charged. [L 1993, …

[PART V.] NONDEPOSITORY TRUST COMPANIES [§412:8-500] Powers and duties. (a) Unless otherwise prohibited or restricted by this section or any other law, a nondepository trust company shall have the general powers specified in section 412:8-200. (b) Notwithstanding any other provis…

ARTICLE 9. FINANCIAL SERVICES LOAN COMPANIES PART I. GENERAL PROVISIONS §412:9-100 Definitions. In this article: "Consumer loan" means a loan made to a natural person primarily for personal, family, or household purposes: "Depository financial services loan company" means a finan…

§412:9-101 Necessity for financial services loan company license. Except as expressly permitted by federal law or this chapter, no person shall engage in any activity for which a license to operate as a financial services loan company is required by this chapter, including withou…

[§412:9-103] Display of license. Every financial services loan company shall display a copy of its principal office license in a conspicuous place at its principal office and shall display a copy of a branch office license in a conspicuous place at the branch office designated on…

PART II. POWERS OF FINANCIAL SERVICES LOAN COMPANIES §412:9-200 General powers. Except as expressly prohibited or limited by this chapter, a financial services loan company shall have the power to make loans where the interest charged, contracted for, or received is in excess of …

§412:9-201 Powers that require regulatory approval. (a) A financial services loan company may sell or refer the following products and services and collect premiums or fees for the sale or referral thereof only after obtaining the approval of the commissioner: (b) In approving an…

§412:9-202 Prohibitions. Except as otherwise expressly authorized by this chapter, a financial services loan company shall not:

PART III. LOANS AND EXTENSIONS OF CREDIT §412:9-300 General requirements for loans and extensions of credit. A financial services loan company shall make loans and extensions of credit that are consistent with prudent lending practices, and in compliance with all applicable feder…

§412:9-301 Interest computation methods. A financial services loan company may charge, contract for, and receive interest on loans on a precomputed basis or a simple interest basis.

§412:9-303 Effect of excessive interest. If a greater rate of interest than that permitted under this article is contracted for in any loan under this article, the loan shall not, by reason thereof, be void. But, if in any action on the loan, proof is made that a greater rate of …