PART II. POWERS OF BANKS

 

§412:5-200  General powers.  (a)  Exceptas expressly prohibited or limited by this chapter, a bank shall have the powerto solicit, accept and hold deposits, engage in other activities which areusual or incidental to the business of banking, and shall have all rights,powers and privileges of a corporation organized under the laws of this Stateincluding but not limited to the power to:

(1)  Make loans and extensions of credit of any kind,whether unsecured or secured by real or personal property of any kind ordescription;

(2)  Borrow money from any source within or withoutthe State;

(3)  Issue, confirm and advise letters of credit, orotherwise enter into letter of credit transactions;

(4)  Enter into repurchase agreements;

(5)  Accept drafts or bills of exchange and buy andsell bullion and foreign currency; and

(6)  Make investments as permitted under this article.

(b)  Except as otherwise expressly authorizedby this chapter or by the commissioner under section 412:5-201, a bank shallnot:

(1)  Employ its funds, directly or indirectly, intrade or commerce, by buying or selling ordinary goods, chattels, wares, andmerchandise, or by owning or operating industrial or manufacturing plants ofany kind;

(2)  Own or control the capital stock of any othercorporation;

(3)  Make loans and extensions of credit secured byits own capital stock, except in cases where the taking of the security isnecessary to prevent loss upon an indebtedness previously contracted in goodfaith;

(4)  Make loans and extensions of credit secured bythe capital stock of another bank, if by making the loan the total capitalstock of the other bank held by the lending bank as collateral would exceed inthe aggregate fifty per cent of the capital stock of the other bank; or

(5)  Engage in any business for which a real estatebroker's license is required. [L 1993, c 350, pt of §1; am L 1996, c 225, §2]