§412:6-203  Service corporations.  (a) "Service corporation" means a corporation whose stock is ownedentirely by one or more state or federally chartered savings banks or savingsand loan associations.

(b)  Subject to the approval of thecommissioner, a savings bank may form and own a service corporation only if theinstitution or institutions participating in the formation of the servicecorporation are in a safe and sound condition, and the amount of stock to beowned by each will not adversely affect their capital or solvency.

(c)  A savings bank may not own or invest inany capital stock, securities, or other interest of a service corporation if,together with its investment in the capital stock, securities, or otherinterest of any other service corporations, its aggregate outstandinginvestment in all service corporations will exceed six per cent of the savingsbank's assets.

(d)  No service corporation may be formedexcept upon written approval by the commissioner of an application submitted ina form satisfactory to the commissioner.  The approval shall be subject to thewritten acknowledgment by the applicant that the service corporation shall besubject to:

(1)  The supervision of the commissioner;

(2)  Examination pursuant to this section; and

(3)  Any other terms and conditions as thecommissioner deems appropriate.

(e)  Every service corporation shall permit thecommissioner to examine its books, records, and activities from time to time,to the extent and whenever the commissioner deems necessary to determine thepropriety of any investment by a savings bank in the service corporation andwhether the activities of the service corporation pose a significant risk ofloss to the parent savings bank.  The service corporation shall pay the entirecost of the examination.  In addition, a service corporation, at its soleexpense, shall cause an independent audit to be made of its books, records, andactivities if and when deemed necessary by the commissioner.

(f)  A service corporation may engage inactivities permitted for a service corporation of a federally chartered savingsbank or savings and loan association and other activities as the commissionermay approve.

(g)  A service corporation may engage inpermitted activities directly or through one or more subsidiaries or jointventures.

(h)  Whenever a service corporation engages inan activity that is not permitted under this section, and because of thisactivity a savings bank's investment in the service corporation would beimproper, within ninety days following written notice from the commissioner tothe savings bank:

(1)  The improper activity shall be discontinued; or

(2)  The savings bank shall divest itself of itsownership or investment in the service corporation.

The service corporation or the savings bank mayappeal the commissioner's decision and request a hearing in accordance withchapter 91.

(i)  The savings bank shall notify thecommissioner in writing within five days of closing a service corporation.  Thenotification shall provide the date of closing, the reasons for the closure,and the means by which the assets and liabilities of the service corporationwere disposed. [L 1993, c 350, pt of §1; am L 2006, c 228, §34]

 

Rules of Court

 

  Appeals, see HRCP rule 72.