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



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



(c)  No savings and loan association may
acquire, establish, or hold the voting securities of an operating subsidiary
without the commissioner's prior written approval; provided that:



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



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



Unless otherwise provided by law or rule, all
provisions of this chapter applicable to the operations of the parent savings
and loan association shall apply to the operations of its operating
subsidiary.  Unless otherwise provided by law or rule, pertinent accounts of
the parent savings and loan association and its operating subsidiaries shall be
consolidated for the purpose of applying applicable statutory limitations such
as contained in section 412:7-303.



(d)  The savings and loan association shall
file an application with the commissioner in a form approved by the
commissioner.  The application shall be accompanied by a fee, the amount of
which shall be prescribed by rule.  The application shall contain the following
information 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 the
investment; and



(5)  Any other information that the commissioner may
require.



(e)  If after appropriate examination and
investigation, the commissioner is satisfied that the acquisition,
establishment, or holding the voting securities of the operating subsidiary
will comply with this section, the commissioner shall approve the application
in writing, with conditions as the commissioner may deem appropriate.



(f)  The savings and loan association shall
notify the commissioner in writing within five days of acquiring or
establishing any operating 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 subsidiary
of a savings and loan association shall be maintained independently of the
accounts of all of the savings and loan association's other operating
subsidiaries and independently of the accounts of the savings and loan
association itself.  At least at the end of every quarter of its fiscal year
the savings and loan association shall consolidate or recognize its
proportionate share of the profit and loss from each operating subsidiary.



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