New Jersey Administrative Code
Title 3 - BANKING
Chapter 14 - BANK SERVICE CORPORATIONS
Subchapter 1 - BANK SERVICE CORPORATIONS
Section 3:14-1.3 - Authority to engage in bank services
Universal Citation: NJ Admin Code 3:14-1.3
Current through Register Vol. 56, No. 18, September 16, 2024
(a) A bank service corporation may provide a bank service to a banking institution, an affiliate of a banking institution, or other person, or to combinations or multiples of the above, subject to the limitations set forth in this section.
1. A bank service which is described in
paragraphs 1, 2, or 4 of the definition of "bank service," and which will be
provided only to an affiliate, may be provided without application or notice to
the Commissioner.
2. A bank service
which is described in paragraphs 1 or 2 of the definition of "bank service,"
and which will be provided to a non-affiliate, may be provided if:
i. Written application has been received by
the Commissioner which fully describes the bank service to be provided, the
type of customer to whom the bank service is to be provided, the type of
business in which the non-affiliate engages, and any information which supports
the conclusion that the provision of the bank service is in the financial
interest of the bank service corporation or affiliates of the bank service
corporation; and either
(1) The bank service
corporation has received approval in writing from the Commissioner;
or
(2) At least 60 calendar days
have passed since the receipt of the written application by the Commissioner,
during which time the bank service corporation did not receive written
notification by the Commissioner that the provision of the bank service to the
non-affiliate is disapproved; and
ii. The Commissioner, at his or her
discretion, has required and has received any additional information which
might be relevant to a decision of whether to approve the application, which
may include, but shall not be limited to, the names of the non-affiliates to
whom the bank service is to be provided.
3. A bank service which is described in
paragraph 3 of the definition of "bank service" may be provided to an affiliate
or a non-affiliate if:
i. Written notice has
been received by the Commissioner that the service has been approved for such
bank service corporation, or for bank service corporations in general, by the
Board of Governors of the Federal Reserve System, or by the appropriate local
Federal Reserve Bank; and either
(1) The bank
service corporation has received approval in writing from the Commissioner;
or
(2) At least 60 calendar days
have passed since the written notice required to be submitted by (a)3i above
has been received by the Commissioner, and during which time the bank service
corporation did not receive written notification by the Commissioner that the
provision of the bank service is disapproved; and
ii. The Commissioner, at his or her
discretion, has required and has received any additional information which
might be relevant to a decision to disapprove the bank service, which may
include, but shall not be limited to, a description of the bank service to be
provided, the names of the non-affiliates to whom the bank service is to be
provided, the type of business in which the non-affiliate engages, and any
materials which support the conclusion that the provision of the bank service
is in the financial interest of the bank service corporation or affiliates of
the bank service corporation.
4. A bank service which is described in
paragraph 5 of the definition of "bank service," may be provided to an
affiliate or non-affiliate if:
i. Written
application has been received by the Commissioner which fully describes the
bank service to be provided, the types of customers to whom the bank service is
to be provided, the type of business in which the non-affiliate engages, and
any information which supports the conclusion that the provision of the bank
service is in the financial interest of the bank service corporation or
affiliates of the bank service corporation; and either:
(1) The bank service corporation has received
approval in writing from the Commissioner; or
(2) At least 90 calendar days have passed
since the Commissioner's receipt of the application, during which time the bank
service corporation has not received written notification by the Commissioner
that the provision of the bank service is disapproved, provided, however, that
the Commissioner may make reasonable extensions of the period during which he
or she may consider the application; and
ii. The Commissioner, at his or her
discretion, has required and has received any additional materials which might
be relevant to a decision of whether to approve the application, which may
include, but shall not be limited to, the names of the non-affiliates to whom
the bank service is to be provided.
(b) A bank service corporation may engage in a bank service described in paragraphs 2, 3, or 4 of the definition of "bank service", only upon the same terms and subject to the same conditions as are set forth in Federal law.
(c) Nothing in this chapter shall be construed to authorize a bank service corporation to engage in any activity which is reserved to banking institutions or qualified banks pursuant to 17:9A-213.
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