PART II. 
POWERS OF BANKS



 



§412:5-200  General powers.  (a)  Except
as expressly prohibited or limited by this chapter, a bank shall have the power
to solicit, accept and hold deposits, engage in other activities which are
usual or incidental to the business of banking, and shall have all rights,
powers and privileges of a corporation organized under the laws of this State
including 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 or
description;



(2)  Borrow money from any source within or without
the State;



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



(4)  Enter into repurchase agreements;



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



(6)  Make investments as permitted under this article.



(b)  Except as otherwise expressly authorized
by this chapter or by the commissioner under section 412:5-201, a bank shall
not:



(1)  Employ its funds, directly or indirectly, in
trade or commerce, by buying or selling ordinary goods, chattels, wares, and
merchandise, or by owning or operating industrial or manufacturing plants of
any kind;



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



(3)  Make loans and extensions of credit secured by
its own capital stock, except in cases where the taking of the security is
necessary to prevent loss upon an indebtedness previously contracted in good
faith;



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



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