§412:5-203  Operating subsidiaries. 
(a)  "Operating subsidiary" means a corporation other than a
corporation referred to in section 412:5-305(g)(2) to (8) of which more than
eighty per cent of the voting securities is held by a bank.



(b)  An operating subsidiary may engage in
activities that are authorized for a bank or that are usual or incidental to
the business of a bank.



(c)  No bank may acquire, establish, or hold
the voting securities of an operating subsidiary without the commissioner's
prior written approval; provided that such approval shall not be required so
long as the bank's aggregate net contributions to the capital of the operating
subsidiary remain less than ten per cent of the bank's capital and surplus;
provided further that the bank shall comply with the notification requirements
of subsection (f).  Unless otherwise provided by law or rule, all provisions of
this chapter applicable to the operations of the parent bank shall apply to the
operations of its operating subsidiary.  Unless otherwise provided by law or
rule, pertinent accounts of the parent bank and its operating subsidiaries
shall be consolidated for the purpose of applying applicable statutory
limitations such as contained in section 412:5-302.



(d)  The bank shall file an application with
the commissioner in a form approved by the commissioner.  The application shall
be accompanied by a fee the amount of which shall be prescribed by rule.  The
application shall contain the following information concerning the proposed
operating subsidiary:



(1)  The name and date for commencement of operations;



(2)  The specific location;



(3)  The activities and nature of business;



(4)  The ownership, amount, and nature of the
investment; and



(5)  Any other information that the commissioner may
require.



(e)  If after appropriate examination and
investigation, the commissioner is satisfied that the acquisition,
establishment, or holding the voting securities of the operating subsidiary
will comply with this section, the commissioner shall approve the application
in writing, with conditions as the commissioner may deem appropriate.



(f)  The bank shall notify the commissioner in
writing within five days of acquiring or establishing an operating subsidiary
or performing new activities in the operating subsidiary.  The notification
shall provide the information specified in subsection (d).



(g)  The accounts of each operating subsidiary
of a bank shall be maintained independently of the accounts of all of the
bank's other operating subsidiaries, and independently of the accounts of the
bank itself.  At least at the end of every quarter of its fiscal year the bank
shall consolidate or recognize its proportionate share of the profit and loss
from each operating subsidiary.



(h)  The bank shall notify the commissioner in
writing within five days of closing an operating subsidiary.  The notification
shall provide the date of closing, the reasons for the closure, and the means
by which the assets and liabilities of the operating subsidiary were disposed.
[L 1993, c 350, pt of §1; am L 2006, c 228, §31]