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Can you summarize 3 NJAC Chapter 14?
BANKING > BANK SERVICE CORPORATIONS
Short Summary
This legal document found in the New Jersey Administrative Code governs bank service corporations. It provides definitions for terms used in the context of bank service corporations and clarifies the meanings of various terms such as ‘affiliate’, ‘bank’, ‘bank services’, ‘bank service corporation’, ‘banking institution’, ‘invest’, ’limited liability company’, ‘person’, and ‘savings bank’. The document outlines the permissible activities that banking institutions can engage in, including contracting with a bank service corporation for the provision of bank services and investing in a bank service corporation, subject to certain limitations. These limitations include not exceeding a certain percentage of the bank’s unimpaired capital stock and surplus for investments in bank service corporations. The document also requires that any bank or savings bank investing in a bank service corporation must ensure that the corporation agrees in writing to submit to periodic examinations and regulation by the Department. Additionally, the document governs the authority of bank service corporations to provide bank services to various entities, including banking institutions, affiliates of banking institutions, non-affiliates, or combinations thereof, subject to certain limitations. It outlines the requirements for providing bank services to affiliates and non-affiliates, including the need for written applications and approvals from the Commissioner. The document also specifies the types of bank services that can be provided and the additional information that may be required for approval. Overall, this document establishes the framework for engaging in bank services in New Jersey.
Whom does it apply to?
Banking institutions, bank service corporations, affiliates of banking institutions, non-affiliates
What does it govern?
Bank service corporations
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New Jersey