§412:9-403  Service corporations. 
Subject to the approval of the commissioner, one or more depository financial
services loan companies may form and own a service corporation only under the
following conditions:



(1)  The depository financial services loan company or
companies participating in the formation of the service corporation are in and
will remain in a safe and sound condition, and the depository financial
services loan company's or companies' solvency will not be adversely affected
by the formation or ownership of the service corporation;



(2)  A depository financial services loan company 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 fifty per cent
of the depository financial services loan company's capital and surplus;



(3)  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:



(A)  The supervision of the commissioner;



(B)  Examination pursuant to this section; and



(C)  Any other terms and conditions as the
commissioner deems appropriate;



(4)  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 depository financial services loan company in
the service corporation and whether the activities of the service corporation
pose a significant risk of loss to the parent depository financial services
loan company.  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;



(5)  A service corporation may engage in any activity
permitted to its parent depository financial services loan company and any
other activity as the commissioner may approve;



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



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



(A)  The improper activity shall be
discontinued; or



(B)  The depository financial services loan
company shall divest itself of its ownership or investment in the service
corporation.



The service corporation or the depository
financial services loan company may appeal the commissioner's decision and
request a hearing in accordance with chapter 91; and



(8)  The depository financial services loan company
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,
§42]



 



Rules of Court



 



  Appeals, see HRCP rule 72.