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

(b)  An operating subsidiary may engage inactivities authorized for a savings and loan association or that are usual orincidental to the business of a savings and loan association.

(c)  No savings and loan association mayacquire, establish, or hold the voting securities of an operating subsidiarywithout the commissioner's prior written approval; provided that:

(1)  Approval shall not be required so long as thesavings and loan association's aggregate net contributions to the capital ofthe operating subsidiary remain less than ten per cent of the savings and loanassociation's capital and surplus; and

(2)  The savings and loan association shall complywith the notification requirements of subsection (f).

Unless otherwise provided by law or rule, allprovisions of this chapter applicable to the operations of the parent savingsand loan association shall apply to the operations of its operatingsubsidiary.  Unless otherwise provided by law or rule, pertinent accounts ofthe parent savings and loan association and its operating subsidiaries shall beconsolidated for the purpose of applying applicable statutory limitations suchas contained in section 412:7-303.

(d)  The savings and loan association shallfile an application with the commissioner in a form approved by thecommissioner.  The application shall be accompanied by a fee, the amount ofwhich shall be prescribed by rule.  The application shall contain the followinginformation 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 theinvestment; 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 and loan association shallnotify the commissioner in writing within five days of acquiring orestablishing any operating subsidiary or performing new activities in theoperating subsidiary.  The notification shall provide the information specifiedin subsection (d).

(g)  The accounts of each operating subsidiaryof a savings and loan association shall be maintained independently of theaccounts of all of the savings and loan association's other operatingsubsidiaries and independently of the accounts of the savings and loanassociation itself.  At least at the end of every quarter of its fiscal yearthe savings and loan association shall consolidate or recognize itsproportionate share of the profit and loss from each operating subsidiary.

(h)  The savings and loan association shallnotify the commissioner in writing within five days of closing an operatingsubsidiary.  The notification shall provide the date of closing, the reasonsfor the closure, and the means by which the assets and liabilities of theoperating subsidiary were disposed. [L 1993, c 350, pt of §1; am L 2006, c 228,§39]