New Jersey Administrative Code
Title 3 - BANKING
Chapter 11 - INVESTMENTS
Subchapter 3 - ORGANIZATION AND OPERATION OF SMALL BUSINESS INVESTMENT COMPANIES
Section 3:11-3.1 - Terms of organization
Universal Citation: NJ Admin Code 3:11-3.1
Current through Register Vol. 56, No. 18, September 16, 2024
(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.
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