Current through Register Vol. 54, No. 12, March 23, 2024
(a) The
following activities may be conducted at a limited purpose banking office of a
banking institution, if, in instances where another state is involved, the
performance of the activities at the limited purpose banking office does not
violate, and is not otherwise contrary to, the laws of the other relevant
state:
(1) Loan production office activities,
including:
(i) Soliciting loans, and, in
connection therewith, assembling credit information.
(ii) Making property inspections and
appraisals.
(iii) Securing title
information.
(iv) Preparing
applications for loans, including making recommendations with respect to action
thereon.
(v) Soliciting investors
to purchase loans from the banking institution.
(vi) Seeking to have the investors contract
with the banking institution for the servicing of the loans.
(vii) Engaging in other similar agent-type
activities.
(2)
Representative office activities, including: representational functions, such
as soliciting banking and trust business, marketing services or acting as a
liaison with customers on behalf of the banking institution:
(i) A banking institution may only solicit
fiduciary business or other types of trust business at the limited purpose
banking office if the banking institution is authorized to engage in fiduciary
and trust activities under its laws of incorporation.
(ii) A banking institution which is chartered
by or is headquartered in a state other than this Commonwealth may not act as a
fiduciary or establish an office to conduct a fiduciary business in this
Commonwealth, beyond the activities permitted in §§
13.61,
13.62,
13.64-13.68 and this section, in
contradiction of section 106(b) of the act (7 P. S. §
106(b)).
(3) Clerical, back office type of activities
of the banking institution.
(4)
Administrative activities related to the premises or personnel of the limited
purpose banking office.
(5) Other
similar activities, subject to the Department written
nonobjection.
(b) The
activities in subsection (a)(1) represent those activities which may be
conducted by a loan production office, under section 102 (h)(v) of the act
(7 P.
S. §
102(h)(v)), and
are consistent with the regulations of the Federal Reserve Board in
12 CFR
250.141(h) (relating to
member bank purchase of stock of "operations subsidiaries").
This section cited in 10 Pa. Code §
13.61 (relating to definitions);
10 Pa. Code §
13.62 (relating to application);
10 Pa. Code §
13.63 (relating to permissible
activities); 10 Pa. Code §
13.65 (relating to information
required); 10 Pa. Code §
13.66 (relating to designation as
a limited purpose banking office); and 10 Pa. Code §
13.67 (relating to authority of
the Department).
