§412:6-204  Operating subsidiaries. (a)  "Operating subsidiary" means a corporation other than acorporation referred to in section 412:6-306(g)(2) to (7) of which more thanfifty per cent of the voting securities is held by a savings bank.

(b)  An operating subsidiary may engage inactivities authorized for a savings bank or that are usual or incidental to thebusiness of a savings bank.

(c)  No savings bank may acquire, establish, orhold the voting securities of an operating subsidiary without the commissioner'sprior written approval; provided that approval shall not be required so long asthe savings bank's aggregate net contributions to the capital of the operatingsubsidiary remain less than ten per cent of the savings bank's capital andsurplus; provided further that the savings bank shall comply with thenotification requirements of subsection (f).  Unless otherwise provided by lawor rule, all provisions of this chapter applicable to the operations of theparent savings bank shall apply to the operations of its operating subsidiary. Unless otherwise provided by law or rule, pertinent accounts of the parentsavings bank and its operating subsidiaries shall be consolidated for thepurpose of applying applicable statutory limitations such as contained insection 412:6-303.

(d)  The savings bank shall file an applicationwith the commissioner in a form approved by the commissioner.  The applicationshall be accompanied by a fee, the amount of which shall be prescribed byrule.  The application shall contain the following information concerning theproposed 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 mayrequire.

(e)  If after appropriate examination andinvestigation, the commissioner is satisfied that the acquisition,establishment, or holding the voting securities of the operating subsidiarywill comply with this section, the commissioner shall approve the applicationin writing, with conditions as the commissioner may deem appropriate.

(f)  The savings bank shall notify thecommissioner in writing within five days of acquiring or establishing anyoperating 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 subsidiaryof a savings bank shall be maintained independently of the accounts of all ofthe savings bank's other operating subsidiaries and independently of theaccounts of the savings bank itself.  At least at the end of every quarter ofits fiscal year the savings bank shall consolidate or recognize itsproportionate share of the profit and loss from each operating subsidiary.

(h)  The savings bank shall notify thecommissioner in writing within five days of closing an operating subsidiary. The notification shall provide the date of closing, the reasons for theclosure, and the means by which the assets and liabilities of the operatingsubsidiary were disposed. [L 1993, c 350, pt of §1; am L 2006, c 228, §35]