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



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



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



(d)  No service corporation may be formed
except upon written approval by the commissioner of an application submitted in
a form satisfactory to the commissioner.  The approval shall be subject to the
written acknowledgment by the applicant that the service corporation shall be
subject to:



(1)  The supervision of the commissioner;



(2)  Examination pursuant to this section; and



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



(e)  Every service corporation shall permit the
commissioner to examine its books, records, and activities from time to time,
to the extent and whenever the commissioner deems necessary to determine the
propriety of any investment by a savings bank in the service corporation and
whether the activities of the service corporation pose a significant risk of
loss to the parent savings bank.  The service corporation shall pay the entire
cost of the examination.  In addition, a service corporation, at its sole
expense, shall cause an independent audit to be made of its books, records, and
activities if and when deemed necessary by the commissioner.



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



(g)  A service corporation may engage in
permitted activities directly or through one or more subsidiaries or joint
ventures.



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



(1)  The improper activity shall be discontinued; or



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



The service corporation or the savings bank may
appeal the commissioner's decision and request a hearing in accordance with
chapter 91.



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



 



Rules of Court



 



  Appeals, see HRCP rule 72.