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Can you summarize 9-B MERS Part 12, Chapter 122?
SPECIALTY OR LIMITED PURPOSE FINANCIAL INSTITUTIONS > MERCHANT BANKS
Short Summary
This legal document governs merchant banks and covers various aspects such as disclosure requirements for loans or investments made by merchant banks, powers and limitations of merchant banks, asset pledge requirements, capital requirements, and organization and operation of merchant banks. Merchant banks are required to disclose the terms of loans or investments in certain situations. Holding companies of merchant banks are exempt from certain provisions unless they control financial institutions other than a merchant bank or a nondepository trust company. Merchant banks have powers similar to financial institutions but are prohibited from soliciting or accepting money on deposit. They are allowed to issue drafts and use certain banking-related words in their name. Merchant banks must maintain a minimum required asset pledge and meet capital maintenance standards set by the superintendent. They must be organized and managed in accordance with the provisions outlined in the document and have a principal office in Maine. Merchant banks are financial institutions that provide capital or investments to businesses and have less restricted lending and investment activities compared to depository financial institutions.
Whom does it apply to?
Merchant banks, individuals or entities who own 25% or more of the merchant bank's common stock or similar equity capital, members of the governing body of the merchant bank, policy-making officers or managers of the merchant bank, companies where 25% of the voting shares or other similar voting equity is owned by individuals or entities listed in the previous situations
What does it govern?
Merchant banks
What are exemptions?
Holding companies of merchant banks that do not control financial institutions other than a merchant bank or a nondepository trust company
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Maine