Banking Business

Section 383-B:3-301

    383-B:3-301 Banking Business. –
(a) A depository bank is authorized to solicit, receive, or accept deposits; to make loans; to engage in a trust business in the same manner as a trust company is permitted under RSA 383-C; and, in connection all of the foregoing, to provide services, offer products, and engage in closely related activities. If an authorized activity or closely related activity requires a depository bank to file an application with or give notice to federal regulators, then the depository bank shall file concurrently a copy of the application or notice with the commissioner.
(b) The minimum capital of a depository bank shall comply with the requirements of the Federal Deposit Insurance Corporation. The depository bank shall maintain deposit insurance in accordance with the regulations of the Federal Deposit Insurance Corporation and comply with the reserve requirements of the Federal Reserve System. A depository bank may borrow funds in connection with the conduct of its banking business; provided, however, each borrowing shall be approved by vote of the board of directors and duly recorded in its records, and any debt security of the depository bank shall be signed by at least 2 officers designated in the vote or its bylaws for that purpose. For the purpose of securing a loan or loans, a depository bank may pledge real estate mortgages, notes, stocks, or other securities.
(c) A depository bank may directly or indirectly engage in any activity permitted for a national bank or federal savings bank or their subsidiaries under federal laws, and otherwise organize, invest in or loan funds to, any entity formed to engage in any activity that is financial in nature or incidental to the financial activity authorized under the Gramm-Leach-Bliley Act, as amended from time to time, and any activity that is complementary to a financial activity that is authorized by federal regulatory authorities under the Gramm-Leach-Bliley Act.
(d) Any activity authorized under subsection (a) or (c) which is treated as insurance under the laws of this state shall be subject to regulation by the insurance commissioner. A depository bank seeking to engage in any insurance activity shall give prior written notice to the insurance commissioner and shall comply with all insurance laws of the state. The provisions of this subsection shall not be construed to prevent a depository bank or subsidiary from conducting insurance activities, provided it does so in compliance with RSA 406-C. An affiliate of a depository bank shall be bound by RSA 406-C with respect to sales of insurance in this state that are recommended or sponsored by the depository bank or sold on the premises of the depository bank.
(e)(1) A depository bank is authorized to pledge assets to the United States, any instrumentality of the United States, this state or any state entity of this state when the pledge is necessary or desirable to secure its deposits at the depository bank. In lieu of such collateralization, a depository bank is authorized to secure such public deposits by surety bonds and to pledge securities to the surety in connection therewith. Any such deposit of public funds in any depository bank may be evidenced by an agreement in such form and upon such terms and conditions as may be agreed upon by the depositing public authority and the bank. The bank commissioner may, by rule, limit the aggregate amount of securities which may be pledged by such a depository bank consistent with safe and sound banking practices, based upon the adequacy of the surplus of the bank and other criteria deemed material by the commissioner.
(2) The bank commissioner shall, by rules adopted under RSA 541-A, define and classify by risk the nature of securities appropriate for collateral.
(f) A depository bank may become a member of the Federal Reserve System and purchase stock in a Federal Reserve Bank under Federal Reserve Act, as amended from time to time, and it shall be subject to the provisions relative to bank reserves, in substitution for the requirements of this chapter, as long as it continues as a member of the Federal Reserve System.
(g) A depository bank may engage in a trust business as defined in RSA 383-C. The depository bank shall establish a trust department and shall segregate all assets held in a fiduciary capacity from its banking assets, except that the depository bank may deposit temporarily in its deposit accounts any money so held in a fiduciary capacity awaiting distribution or investment and may also deposit in its deposit accounts as an investment for any one trust an amount insurable and insured by the Federal Deposit Insurance Corporation. The deposits shall be in the name of the trust or in the name of the depository bank as trustee of the trust. Unless required by the order of a court with proper jurisdiction, no depository bank authorized to act as trustee or executor in this state shall be required to give bond to secure performance of the depository bank's duties as trustee or executor. A depository bank may establish one or more trust offices in the same manner as is permitted to a trust company under RSA 383-C.
(h) A depository bank may acquire and hold real estate for its own use, in whole or in part. A depository bank may hold and lease real estate acquired in payment of a preexisting debt owed to the bank by foreclosure of mortgage or otherwise.
(i) A depository bank may hold in escrow any written instrument, money, evidence of title to real or personal property, or any other thing of value which may come into its possession in the course of providing services as a depository bank.
(j) A depository bank may sell, transfer, assign, purchase, and repurchase loans authorized by this chapter and may act as servicing agent for the collection and application of payments due on account of loans owned by others and may employ others to act as servicing agents for the collection and application of payments due on account of loans owned by it.
(k) Deposits of cash may be made only in a bank authorized to accept deposits or the Federal Home Loan Bank of Boston by depository banks which are members of the Federal Home Loan Bank of Boston, provided the deposits are insured by the Federal Deposit Insurance Corporation or repayment is assured by other security provided by the bank in which the cash is deposited.
(l) All certificates for shares of stock, certificates of interest, uncertificated shares, or registered bonds owned by a depository bank shall be registered in the name of the bank or the name of a nominee without mention of the bank's name, provided that (i) the records of the bank clearly show its ownership of the securities and the name and address of the nominee in whose name the same are held, (ii) the nominee shall not have possession of, or uncontrolled access to, the securities, and (iii) every nominee shall be properly bonded in a commercially reasonable amount.
(m) In order to increase income from investment securities, a depository bank may loan any stocks, bonds or other securities in which the bank has invested under this chapter to brokerage firms which are members of an exchange, provided that:
(1) The loan shall be executed through a correspondent bank having assets of not less than $500,000,000.
(2) At the inception of the loan at least 100 percent of the market value of the securities lent shall be secured by cash, debt obligations of the United States, or debt obligations for which the full faith and credit of the United States is pledged for the payment of the principal and interest thereof;
(3) At all times during the term of the loan the collateral securing the loan shall be equal in value to not less than 95 percent of the market value of the securities loaned by the depository bank;
(4) The market value of the securities loaned by a depository bank under the authority of this section shall not, at any one time, exceed 10 percent of the aggregate market value of all stocks, bonds, or other securities then held by the bank as investments under this chapter; and
(5) No loan shall be made to any brokerage firm that is then listed for and under special surveillance by an exchange in the belief that the brokerage firm is in or is approaching financial difficulty, and that is, at the time, the subject of any pending notice given by any exchange to the Securities Investor Protection Corporation and the Securities and Exchange Commission under the Securities Investor Protection Act of 1970 15 U.S.C. section 78e(a)(1).
(6) The brokerage firm receiving the loan under this section shall be registered, and every agent soliciting the loan shall be licensed, with the bureau of securities regulation of the secretary of state.
(n) Subject to the regulation by the commissioner and compliance with federal and state laws, a depository bank may buy or sell securities for officers, employees, or customers.
(o) A depository bank may purchase assets from and assume the liabilities of, or sell assets and transfer liabilities to, banks, credit unions, federal credit unions, and foreign credit unions if it files a notice with the commissioner under RSA 383-A:6-602, subject to other federal or state regulatory approvals.
(p) A depository bank shall retain any power that it held prior to the enactment of this chapter under any federal or state authority.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:7, eff. Sept. 8, 2017.