§412:5-205.7  Securities powers. (a)  With the prior written approval of the commissioner, and subject to thelimitations set forth in this section and to any conditions the commissionermay impose, any bank organized under the laws of the State, at the discretionof its board of directors, either directly in any department or division of thebank or through a subsidiary or affiliate of the bank, may engage in thefollowing securities activities and in any related or incidental activity,within the State:

(1)  Sale or purchase of any security on the order ofand for the account of customers, either alone or in conjunction with therendering of investment advice to customers, through the operations,respectively, of a discount or full service brokerage;

(2)  Organization, sponsorship, operation, control,and distribution of one or more investment companies, as defined in section 3of the Investment Company Act of 1940 (15 U.S.C. 80a-3) or in the laws of thejurisdiction in which the investment company operates;

(3)  Provision of portfolio advice to customers;

(4)  Provision of investment and financial advice togovernment agencies; and

(5)  Service as dealer-manager or financial advisor tocorporations, partnerships, or other persons, including but not limited to theprovision of valuation advice and opinions with respect to sales or purchasesof assets, corporate restructurings, issuances of securities, mergers, andother acquisitions.

The exercise of authority conferred in thissubsection shall be governed by and comply with chapter 485A and any securitiesadministrative rules adopted under chapter 485A.  Administration of chapter[485A] and any securities administrative rules shall be vested with thecommissioner of securities.

(b)  With the prior written approval of thecommissioner, and subject to the limitations set forth in this section and toany conditions the commissioner may impose, any bank organized under the lawsof the State, at the discretion of its board of directors, either directly inany department or division of the bank or through a subsidiary or affiliatethereof, may engage in the following securities activities and in any relatedor incidental activities, in any place outside this State, including any otherstate of the United States, dependencies or insular possession of the UnitedStates, or any foreign countries:

(1)  Sale or purchase of any security, as definedunder applicable law, on the order of and for the account of customers, eitheralone or in conjunction with the rendering of investment advice to customers,through the operations, respectively, of a discount or full service brokerage;

(2)  Organization, sponsorship, operation, control,and distribution of one or more investment companies, as defined in section 3of the Investment Company Act of 1940 (15 U.S.C. 80a-3) or as otherwise definedunder applicable law;

(3)  Provision of portfolio advice to customers;

(4)  Provision of investment and financial advice togovernment agencies; and

(5)  Service as dealer-manager or financial advisor tocorporations, partnerships, or other persons, including but not limited to, theprovision of valuation advice and opinions with respect to sales or purchasesof assets, corporate restructurings, issuances of securities, mergers, andother acquisitions.

The exercise of authority conferred in thissubsection shall be governed by and comply with chapter 485A and any securitiesrules adopted under chapter 485A or the laws and administrative rules of thestate, dependency, insular possession, or foreign country applicable to theconduct of such securities activities within that jurisdiction.

(c)  The bank shall file an application forapproval with the commissioner in a form prescribed by the commissioner.  Theapplication shall be accompanied by a fee the amount of which shall beprescribed by rule.  The application shall contain:

(1)  A description of the activities to be conducted;

(2)  The experience and qualifications of the proposedmanagers;

(3)  The specific location where the activities willbe conducted; and

(4)  Any other information that the commissioner mayrequire.

If the bank proposes to engage in securitiesactivities through a subsidiary or affiliate, then the application shall alsocontain information regarding the experience and qualifications of the proposedexecutive officers and directors of the subsidiary or affiliate and theownership, amount, and nature of the bank's investment in and advances to thesubsidiary or affiliate.  Upon being satisfied that the application is complete,that the conduct of the securities activities will not affect the safety orsoundness of the bank or harm the public interest, and that the bank and itssubsidiary or affiliate, if applicable, have sufficient experience,qualifications, and financial capability to engage in the activities authorizedby this section, the commissioner shall approve the application.  Thecommissioner may impose any terms and conditions which the commissionerconsiders necessary to protect the bank, the customers of the bank, and thepublic interest.

(d)  Upon receipt of the commissioner'sapproval under this section, the bank or its subsidiary or affiliate shallobtain any necessary approvals required under chapter 485A and any securitiesadministrative rules adopted under chapter 485A, or the applicable securitiesand banking laws of the jurisdiction in which it will be conducting itssecurities activities.

(e)  The provisions of this section are inaddition to and not in limitation of any other provision of this chapter.  Thepowers granted by this section may be exercised notwithstanding any otherprovision of this chapter.  Furthermore, the commissioner may adopt rulesgoverning the exercise of powers granted by this section as the commissionerfinds necessary to avoid unsound banking practices, to ensure the safety andsoundness of the bank, and to protect the public interest. [L 1996, c 225, ptof §1; am L 2006, c 229, §7]