New Jersey Administrative Code
Title 3 - BANKING
Chapter 14 - BANK SERVICE CORPORATIONS
Subchapter 1 - BANK SERVICE CORPORATIONS
Section 3:14-1.2 - Permissible activities
Universal Citation: NJ Admin Code 3:14-1.2
Current through Register Vol. 56, No. 18, September 16, 2024
(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.
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