TITLE XXXV
BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS

Chapter 383-B
DEPOSITORY BANK ACT

ARTICLE 1
General Provisions

Section 383-B:1-101

    383-B:1-101 Short Title. – This chapter shall be known and cited as the "Depository Bank Act."

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:1-102

    383-B:1-102 Scope. – This chapter applies to depository banks, national banks, federal savings banks or foreign banks. This chapter also applies to bank holding companies. In addition, RSA 383-A applies to the banks and bank holding companies covered by this chapter.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:1-103

    383-B:1-103 Reservation of Power to Amend or Repeal. – The general court has power to amend or repeal all or part of this chapter at any time and all persons subject to this chapter are governed by the amendment or repeal.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:1-104

    383-B:1-104 Commissioner. – The commissioner shall have the powers necessary or incidental to performing all of the commissioner's duties under this chapter, including the power to adopt rules as provided in this chapter in accordance with RSA 541-A. All rules previously adopted by the commissioner relating to the subject matter of this chapter shall be subject to RSA 541-A:17.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 169:8, eff. July 10, 2019.

ARTICLE 2
General Definitions

Section 383-B:2-201

    383-B:2-201 Definitions. –
(a) Each term defined in RSA 383-A shall have the same meaning for purposes of this chapter.
(b) For purposes of this chapter, the following definitions shall also apply.
(1) "Acquisition" or "acquire" means any act or action with respect to the ownership or control of a depository bank or the purchase of its assets and the assumption of its liabilities which would require the approval of a federal regulatory authority.
(2) "Branch office" means any place of business or mobile facility of a depository bank, other than its principal office, at which deposits are received, checks are paid, or loans are made, or payments on loans are received but shall not include a loan production office or an office that provides only administrative services or support for its banking business. The commissioner may define by rule which administrative services or support for a banking business would qualify for exemption from this definition and the procedure for requesting such exemption.
(3) "Capital and surplus" has the same meaning as the term is used in 12 U.S.C. section 32.
(4) "Closely related activity" means any activity that is part of a banking business, is closely related to a banking business, is convenient and useful to a banking business, is reasonably related to the operation of a bank or is financial in nature or incidental to the financial activity, as authorized under the Gramm-Leach-Bliley Act, 12 U.S.C. section 1811. Closely related activities include, but are not limited to, custodial services; services as a fiscal agent for the United States or any instrumentality of the United States or for this state or any instrumentality of this state; services as an agent for the purpose of issuing, registering, or countersigning certificates of stock, bonds, or other evidence of indebtedness of any entity or this state; business and professional financial services; data processing, courier and messenger services; credit-related activities; consumer financial services; real estate-related services; insurance and related services; securities brokerage; investment advice; securities underwriting; mutual fund activities; financial consulting; tax planning and preparation; community development; charitable activities; finder activities; and any activities reasonably related or incidental to these activities, subject to any limitations under federal or state laws. A closely related activity shall include any activity that may be authorized or permissible for a national bank, a federal savings bank, or any service corporation or subsidiary of a national bank or federal savings bank, including financial subsidiaries as defined in 12 U.S.C. section 24A and 12 C.F.R. section 5.39 to engage in under federal law; and any additional activities that the commissioner by rule or order determines to be a closely related activity.
(5) "Control" has the same meaning as the term is used in 12 U.S.C. section 1841(a).
(6) "Foreign bank" means:
(A) A national bank or a federal savings bank having its main office located in a state other than New Hampshire; or
(B) A foreign state bank.
(7) "Foreign bank holding company" means a bank holding company that owns or controls one or more depository banks and the largest amount of total deposits of these banks is located in a state other than New Hampshire.
(8) "Foreign mutual holding company" means a holding company organized under the laws of a state other than New Hampshire or under federal law as a mutual company.
(9) "Proprietary interest" means the inchoate interest of a depositor of a mutual bank or a subsidiary bank of a mutual holding company as described in RSA 383-B:6-606(a).
(10) "Subsidiary bank" means a depository bank that is owned or controlled by a bank holding company.

Source. 2015, 272:16, eff. Oct. 1, 2015.

ARTICLE 3
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.

Section 383-B:3-302

    383-B:3-302 Management. –
(a) A depository bank shall have a board of not less than 5 directors, of which a majority shall be residents of New Hampshire.
(b) The board of directors of a depository bank shall meet on a regular basis as often as necessary but not less than 9 times per year, unless the commissioner shall issue an order requiring the board to meet more frequently based on a finding that the safety and soundness of the depository bank is likely to be impaired if meetings are not held more frequently.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:3-303

    383-B:3-303 Loans and Investments. –
(a)(1) A depository bank shall at all times maintain a reserve in an amount that is not less than the minimum reserve required by the Federal Reserve System.
(2) A depository bank may invest the balance of its banking assets (excluding assets held in a fiduciary capacity) in the classes of securities, loans, derivatives, and other investments described in this section in addition to any other authorities set forth in this chapter, subject to any limitations imposed by the Federal Deposit Insurance Corporation. All investments shall be made in a prudent manner consistent with federal and state laws.
(3) A depository bank's board of directors shall establish a written investment policy that addresses, at a minimum, investment quality parameters, investment mix and diversification, investment maturities, derivative exposure, and delegation of authority to officers and committees responsible for administering the portfolio. The board shall review and ratify the policy annually or more frequently if circumstances so warrant.
(4) Loans shall be made based on the creditworthiness of the borrowers and guarantors, if any, the value of collateral, and other relevant factors relating to the repayment of the loans in accordance with their terms. If the value of collateral is relevant to the repayment of a loan to a depository bank, the collateral shall be appraised on the basis of commercially reasonable standards.
(5) All investments in securities shall be supported by a documented credit and risk analysis. The analysis shall be applied to securities as a part of a pre-purchase and ongoing due-diligence process. Assessments of creditworthiness and risk shall not be solely reliant on external credit ratings, if any, provided by one or more NRSROs. Any investment in a debt security shall meet the investment grade debt security standard.
(6) A depository bank shall keep a record of all loans and securities investments of every description made by the bank in such form as the commissioner may approve, which shall show the loans or securities investments made under this article and shall indicate such detail respecting the loans or securities investments as the commissioner shall direct. This record shall be periodically submitted to the board of directors for its review and to the commissioner at each examination required by law. The loans or securities investments shall be classified in this record in such manner as the commissioner or other regulatory authorities shall direct.
(7)(A) A depository bank shall adopt prudent policies with respect to its lending activities. The total liabilities of a person for money borrowed from a depository bank shall not exceed the limitation prescribed for national banks under federal law. No depository bank shall make a loan or loans to a borrower and its affiliates, if any, or in any group of a similar type of loans, that would pose a risk to the safety and soundness of the bank.
(B) No depository bank shall make a loan or discount on the security of the shares of stock or other equity interests, nor be the purchaser or holder of the shares or interests unless the security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and shares or interests so purchased or acquired shall within 6 months after their acquisition or purchase be sold or disposed of at public or private sale, unless the time is extended by the commissioner.
(C) A depository bank shall not accept its own capital stock or the capital stock of a bank holding company which controls the depository bank as collateral.
(D) A depository bank may make a loan to an executive officer or director and accept an executive officer or director as surety, endorser, or guarantor of loans to other persons if the loan is approved in accordance with Federal Reserve Board Regulation O. Loans made under this section shall be on terms not more favorable than those afforded other borrowers.
(E) Any depository bank which requires or accepts moneys for deposit in escrow accounts maintained for the payment of taxes or insurance premiums related to loans on property secured by real estate mortgages shall pay interest in the moneys so held in such accounts. During the 6-month period beginning on April 1 of each year, such interest shall be paid at a rate of not less than the National Deposit Rate for Savings Accounts as published in the month of January of the same year by the Federal Deposit Insurance Corporation. During the 6-month period beginning on October 1 of each year, such interest shall be paid at a rate of not less than the National Deposit Rate for Savings Accounts as published in the month of July of the same year by the Federal Deposit Insurance Corporation.
(F) Upon payment in full of the outstanding principal, interest, and other charges due on any loan made by any depository bank or subsidiary, the depository bank or subsidiary, or the assignee or successor in interest thereto, if any, shall plainly mark the note or a copy thereof with the words "PAID IN FULL" or "CANCELLED" and release or provide the borrower evidence to release any mortgage or security instrument no longer securing any indebtedness to the depository bank or subsidiary, or the assignee or successor in interest thereto, if any. If the original note is retained by the depository bank or subsidiary, the original shall be returned within a reasonable period of time upon the written request of the borrower.
(b)(1)(A) Loans directly secured by mortgages on residential, commercial, or publicly-owned real estate.
(B) The following shall be construed to be real estate for the purposes of subsection A: Buildings on land at Hampton in the county of Rockingham owned by lessees of real estate owned by the town of Hampton and leased by the town to Hampton Beach Improvement Company or directly to other lessees, together with those owned by sublessees or lessees of Hampton Beach Improvement Company or the town of Hampton, and improvements, buildings and structures on land within national forests within this state upon which the mortgagor holds a term special use permit from the United States Forest Service of not less than 20 years' duration.
(C) For the purposes of subsection (A), the following described classes of property appearing in the fixed capital accounts of electric, telephone, gas, and water utilities operating in this state (as more particularly defined in the classification of accounts of utilities prescribed by the public utilities commission), when all of these classes of property are included in a blanket mortgage together with the utility's franchise to operate as a public utility in this state, shall be construed to be real estate: (i) electric utilities: land, structures, generating equipment for steam, hydro, internal combustion, wind, solar, or any new technology, transmission and distribution equipment, and unfinished construction; (ii) telephone utilities: land, structures, central office equipment, station equipment, station wiring, poles, conduits, cables, wires, other radio-telephone plant, and unfinished construction; (iii) gas utilities: land, structures, production equipment, distribution equipment, and unfinished construction; and (iv) water utilities: land, structures, production equipment, transmission and distribution equipment, and unfinished construction.
(D) Improvements, buildings, and structures on land leased from any person upon which the mortgagor holds a lease shall be construed as real estate for purposes subsection (A).
(E) Equipment, machinery, and furnishings, which are declared by the mortgagor to have been affixed to and become a part of the real estate, shall be construed as real estate for purposes of subsection (A).
(F) Loans secured by mortgages on real estate without respect to the value of the real estate if a department or agency of the United States or a federal government-sponsored enterprise has insured, or made commitment to insure, the notes and bonds, provided the laws of the United States entitle the mortgagees to receive payment of the insurance in cash or debentures issued by the department or agency of the United States or the federal government-sponsored enterprise which are fully guaranteed as to principal and interest.
(G) Loans secured by tangible personal property of any kind or description.
(2)(A) Notes secured by any deposit account in any bank, the deposits of which are insured by the Federal Deposit Insurance Corporation, provided that the investment shall not be in excess of 100 percent of the withdrawal value of the account.
(B) Notes secured by the policy of a life insurance company with a cash surrender value, provided that the security shall have at all times a market or cash value of at least 10 percent in excess of the notes while held by the bank.
(C) Notes secured by the authorized obligations of the United States of America, or notes secured by the authorized notes and bonds of this state or any of its state entities.
(D) Notes secured by securities which are traded on an exchange and are ranked among the 3 highest ratings of any NRSRO, or notes secured by other securities which are legal investments in this state, provided that the market price of the securities shall at all times be at least 20 percent in excess of the amount due on the notes while held by the bank.
(E) Notes eligible for insurance or guaranties by a department or agency of the United States or a federal government-sponsored enterprise which is designated by written ruling of the commissioner, provided a contract of insurance or guaranty exists between the holder and the department or agency of the United States or the federal government-sponsored enterprise.
(F) Notes which are guaranteed as to payment of at least 80 percent of their outstanding principal from time to time by the state of New Hampshire or the New Hampshire Higher Education Assistance Foundation.
(G) Unsecured loans based on the creditworthiness of the borrower.
(c)(1) The obligations of the United States of America, or those for which the full faith and credit of the United States is unconditionally pledged to provide for the payment of interest and principal.
(2) The authorized obligations issued or guaranteed by any department or agency of the United States or a federal government-sponsored enterprise that are designated as an authorized investment of the commissioner by rule or order.
(3) The authorized obligations of this state or any state entity of this state, provided:
(A) The obligations of this state or state entity are backed by the issuer's ability to levy taxes for the repayment of principal and interest.
(B) Obligations secured by the revenues of the state entity are rated among the first 4 ratings of any NRSRO.
(C) The obligations of any state entity, purchased or acquired prior to January 1, 1999 shall be a legal investment, notwithstanding the fact that an obligation is not backed by the issuer's ability to levy taxes for the repayment of principal and interest as required by paragraph A.
(4) The authorized bonds and notes of any other state, commonwealth or territory of the United States or any state entity of another state, provided:
(A) The direct obligations of any state, commonwealth or territory of the United States or any state entity thereof are backed by the issuer's ability to levy taxes for repayment of principal and interest and are rated among the first 3 ratings of any NRSRO.
(B) Obligations secured by the revenue of any state entity are rated among the first 3 ratings of any NRSRO.
(5) The authorized bonds and notes issued or guaranteed by other sovereign nations, provided the bonds or notes are rated among the 3 highest ratings of any NRSRO, and the bonds or notes are repayable as to principal and interest in United States currency within this country.
(d)(1) Any investment grade debt security issued, assumed, or guaranteed by an entity organized in the United States of America, provided it is rated among the 3 highest ratings of any NRSRO. A convertible investment grade debt security of a lesser rating will be legal if the common stock would otherwise qualify.
(2) Any preferred stock issued, assumed or guaranteed by an entity organized in the United States, provided it is rated among the 3 highest ratings of any NRSRO.
(3) Any common stock or senior security convertible into common stock of an entity organized in the United States of America is lawful provided:
(A) The stock is listed on an exchange and is ranked among the 3 highest ratings of any NRSRO.
(B) At the time of purchase, any common stock investment under this subsection when added to the book value of all other common stock securities presently owned of the same entity shall not exceed 7 percent of a bank's capital and surplus, except for stock holdings in a Federal Home Loan Bank or Federal Reserve Bank.
(4)(A) An investment grade debt security issued, assumed or guaranteed by an entity organized under the laws of this state or carrying on its principal activities within this state, provided the entity shall have, at the date of investment, a net worth of at least $1,000,000 and in at least 4 of the 5 years next preceding the date of investment, the net income available for interest plus the federal income tax of the entity shall have been not less than twice the interest on its obligations.
(B) The dividend-paying capital stock of an entity organized under the laws of this state or carrying on its principal activities within this state, provided all securities, if any, senior to the stock are legal investments hereunder, and the entity shall have, at the date of the investment, a net worth of at least $1,000,000 in at least 4 of the 5 years next preceding the date of investment, the entity shall have earned net income available for dividends on the entire outstanding issue of the stock in question of not less than 4 percent on the par or stated value of the stock and the depository bank shall hold no more than 5 percent of the outstanding stock of the entity.
(5)(A) The securities of a bank or bank holding company incorporated in the United States, provided the bank or bank holding company shall have capital and surplus of at least $50,000,000, the capital and surplus shall represent not less than 4 percent of the total assets in at least 4 of the 5 years immediately preceding investment, net earnings shall have averaged not less than 0.4 percent of average total assets over the same 5 years immediately preceding investment, and the total loans to total assets shall not be greater than 80 percent.
(B) The securities or special deposits of a bank or trust company chartered under the laws of this state and doing business in this state, and the capital notes and the capital stock of any national bank or federal savings bank having a principal office in this state; but the amount of the notes or stock or special deposits held by a depository bank as an investment and as collateral for loans shall not exceed 25 percent of the total capital and surplus of the bank and the securities of any New Hampshire bank holding company which is registered as a bank holding company with the board of governors of the Federal Reserve System, but the amount of capital stock held by a depository bank in legal form or represented by voting trust certificates as an investment and as collateral for loans shall not exceed 25 percent of the capital stock of the New Hampshire bank holding company.
(6) The following types of investment trust shares if listed on an exchange or authorized for sale in this state by the bureau of securities regulation of the secretary of state.
(A) The shares of any management type investment company, either open-end or closed-end, provided if the company acts as its own investment manager, it shall have been in business for at least 5 years, have at least $50,000,000 of net assets and have paid dividends for at least 4 of the 5 years immediately preceding investment, and in the event that the company employs outside investment management, then those investment managers shall have a total of at least $100,000,000 under management and the company shall have been in business for at least 5 years, have net assets of $50,000,000 and have paid dividends for at least 4 of the 5 years immediately preceding investment.
(B) The shares of any management type investment company that is a member of a group of 3 or more mutual funds under the same investment manager, provided the manager has at least $100,000,000 of assets under management and the company has at least $10,000,000 of net assets.
(C) Units in unit investment trusts with principal of at least $1,000,000 if authorized for sale in this state.
(7)(A) Acceptances of member banks of the Federal Reserve System of the times and maturities made eligible for rediscount and purchased by Federal Reserve Banks.
(B) Advances of federal funds to banks qualifying as cash depositories under RSA 383-B:3-301(k), which the banks agree to repay one or more business days later, provided that total advances of federal funds under this paragraph and any other authority shall not exceed 10 percent of the depository bank's assets and that the total of the advances by a depository bank to any one bank shall not exceed 5 percent of the latter's capital and surplus. The agreement to repay may have a specific maturity date or may be open-ended. An open-ended agreement has no specific maturity date but requires repayment on any date that is specified by either the depository bank or borrowing bank. Notwithstanding the foregoing, advances of federal funds that comply with the requirements of Federal Reserve Board Regulation F, 12 C.F.R. section 206, as amended from time to time, shall be deemed to fulfill the requirements of this paragraph and qualify as legal investments for depository banks.
(8) Loans made by an entity qualified to originate a loan in which other qualified entities may participate severally with the originating lender in making the loan, and in which they have a part interest. The entity originating the loan shall be referred to as the originating lender and any entity participating in the loan shall be referred to as a participating lender. Depository banks, national banks, federal savings banks, foreign depository banks, the small business administration, federally-chartered corporations which are agencies or instrumentalities of the United States, the New Hampshire business finance authority, trustees of pension trusts and retirement funds, credit unions, and insurance companies shall be deemed qualified to be originating lenders or participating lenders. New Hampshire entities, nonprofit colleges, and nonprofit trusts and funds shall be deemed qualified to be participating lenders, in participation with any of the originating lenders. The participation shall be evidenced by an agreement and participation certificates. The loan shall meet the underwriting standards of each originating or participating depository bank.
(9) The capital stock, obligations, or other securities of real estate development entities organized under the laws of this state, provided:
(A) At least 51 percent of the capital stock of the entity is held by one or more depository banks; and none of the capital stock is owned by any director, officer, employee, or incorporator of a depository bank.
(B) The activities of the entity consist solely of one or more of the following: engaging in large-scale residential housing projects of all kinds, including acquisition, subdivision and development of real estate, construction of residential housing of all kinds and related facilities, or resale to others for the construction. For purposes of this subsection, alarge-scale residential housing projectmeans a development containing at least 48 home building lots or a building or buildings containing at least 48 dwelling units; engaging in urban redevelopment projects of all kinds; and engaging in projects to provide housing for lower-income families; engaging in commercial and industrial real estate ventures of direct community benefit, as approved by the commissioner and in projects for the preservation or restoration of historically or architecturally significant buildings or structures; and activities reasonably incidental to the activities described in this subsection.
(C) Not more than $10,000,000 or 5 percent of the assets of a depository bank, whichever is less, are invested in securities authorized for investment by this subsection, and not more than 2 1/2 percent of the assets of a depository bank are invested in the securities of a single real estate development entity which qualifies for the investment under this subsection.
(D) No real estate development entity shall acquire for itself any opportunity to engage in any project or venture permitted under subsection (B) if a depository bank which is a stockholder of the entity has previously rejected a written application for a mortgage loan on the security of the same project or venture, unless it appears that the mortgage loan so rejected failed to qualify as a legal investment under this chapter, or unless the applicant for the mortgage loan consents in writing to the acquisition of the opportunity by the real estate development entity.
(E) The authority to invest in securities of certain real estate development entities shall be limited to real estate holdings and development located in New Hampshire.
(10) A depository bank may invest in securities which are not authorized investments under this section but are prudent investments, provided the securities being purchased under the authorization of this section do not, when added to all other securities then owned by the depository bank, the purchase of which would not then be authorized by the other sections of this section, exceed 7 1/2 percent of its assets. Any security which at the time of its purchase constitutes a legal investment under the laws and conditions then existing may be retained under the authority of this subsection, notwithstanding the fact that because of conditions arising subsequent to the purchase of the security, its purchase or holding might not then be legal. Any security held which becomes unlawful because of changes in the law relating to legal investments may also be retained under the authority of this subsection.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2021, 194:22, eff. Oct. 9, 2021. 2023, 89:2, eff. June 20, 2023.

ARTICLE 4
Deposit Accounts

Section 383-B:4-401

    383-B:4-401 Deposit Accounts. – This article sets forth the rights and duties of persons with respect to certain deposit accounts.

Source. 2015, 272:16. 2016, 230:11, eff. Aug. 8, 2016.

Section 383-B:4-402

    383-B:4-402 Powers of Attorney. – A depository bank doing business in this state may continue to recognize the power of an attorney-in-fact authorized in writing to make withdrawals either in whole or in part from the account of a depositor, whether a minor or adult, until it receives written notice or is on actual notice of the revocation of his or her authority. No depository bank shall be liable for damages, penalties, or tax by reason of any payment made under this section.

Source. 2016, 230:11, eff. Aug. 8, 2016.

Section 383-B:4-403

    383-B:4-403 Assignments. –
(a) No assignment of a deposit which is evidenced by a passbook or certificate of deposit shall be a valid transfer of the deposit unless the passbook or certificate of deposit is delivered to the assignee accompanied by a written assignment or order for transfer.
(b) No assignment of a deposit, however evidenced, shall be effective to charge the depository bank in which the deposit is maintained with a duty of payment to the assignee prior to service by the assignee on the depository bank of written notice of the assignment. No depository bank shall be liable to an assignee of a deposit maintained in that bank for any payment of the deposit or portion thereof or dividend or interest thereon made to the depositor prior to service on the depository bank by the assignee of the written notice of the assignment; except that the exemption from liability shall not apply in the case of a payment to a depositor, with respect to a deposit evidenced by a passbook, which is made without production of the passbook if the bylaws of the depository bank require production of the passbook as a condition to payment.

Source. 2016, 230:11, eff. Aug. 8, 2016.

Section 383-B:4-404

    383-B:4-404 Payable on Death Accounts. –
(a) A "payable on death" deposit account is created by a deposit in a depository bank in the name of an owner or several joint owners with a designation that the account is payable on death to one or more payees, or is in trust for another, and no other or further notice of the existence and terms of a legal and valid trust is given in writing to the bank. Any person designated as an owner, account holder or words to similar effect is deemed to be an owner of the deposit account. Each owner retains the right during the owner's lifetime to withdraw, assign, or pledge the balance of the deposit account, in whole or in part, as though no survivor payee or beneficiary had been named, and to delete or change a survivor payee or beneficiary. No change in the designation of the survivor payee or beneficiary is valid unless executed on a form and in the manner prescribed by the depository bank. On the death of the sole owner or the last surviving joint owner, any remaining balance in a payable on death account, including interest, shall vest solely in the surviving payable on death payee, or the in trust for beneficiary, or equally and severally in the then surviving payees or beneficiaries. If no payee or beneficiary survives, the deposit account shall remain in the estate of the last surviving owner. Ninety days after the death of the sole owner or the last surviving joint owner, the depository bank may pay the remaining balance in the deposit account to the new owner or owners or their legal representatives without further liability for the amount or amounts paid. If no payee or beneficiary is surviving 90 days after the last surviving owner dies, the balance of the account shall be payable to the personal representative of that owner. A depository bank which makes payment in accordance with this section shall, to the extent of each payment so made, be released from all claims of any of the deposit account owners, the named payees or beneficiaries, their respective legal representatives, and all others claiming through or under them. Each payee, beneficiary or legal representative claiming under this section shall provide the identification and other information as requested by the depository bank.
(b) Each owner of a payable on death deposit account retains the right during the owner's lifetime to withdraw, assign or pledge the balance of the deposit account, in whole or in part, as though no survivor payee or beneficiary had been named, and to delete or change a survivor payee or beneficiary. No change in the designation of the survivor payee or beneficiary is valid unless executed on a form and in the manner prescribed by the depository bank. Unless otherwise required in writing by all of the owners at the time the deposit account is created, the withdrawal, assignment or pledge of one owner shall be binding on the other owners. For purposes hereof, no payee or beneficiary shall be deemed to be an owner.
(c) The rights of a surviving payee or beneficiary to the funds in a payable on death deposit account shall not be denied, abridged or in any way affected because the rights have not been created by a writing executed in accordance with the laws of this state prescribing the requirements to effect a valid testamentary disposition of property or because of any absence of delivery or compliance with other requirements to effect a valid gift or transfer in trust.

Source. 2016, 230:11, eff. Aug. 8, 2016.

Section 383-B:4-405

    383-B:4-405 Joint Accounts. – A person or persons may establish a deposit account at a state or foreign depository bank doing business in this state pursuant to a written agreement. The written agreement shall govern the rights of any person who is named as an owner of the account. In the absence of a written agreement, if 2 or more persons are named on a deposit account as owners, the account shall be payable to any owner, and in the event of death, to the survivor or survivors of them. The survivors shall be entitled to ownership of the account whether or not (i) the funds deposited were the property of only one or some of the owners, (ii) at the time of the making of such deposits there was any intention on the part of the owners making such deposit to vest the other owner or owners with a present interest therein, (iii) only one of the owners during their several lives had the right to withdraw such deposit, or (iv) there was any delivery of any bank book, account book, savings account book, certificate of deposit, or other evidence of such an account, by the owner or owners making such deposit to the other owner or owners. The receipt by an owner of the account of any payment from the account made by the depository bank on the owner's request shall discharge the depository bank from any liability for any payment so made. Nothing in this paragraph shall be construed to prohibit an owner making a deposit or deposits from withdrawing the deposit during his or her lifetime, nor shall the existence of the right to withdraw the deposit during his or her lifetime defeat the rights provided herein for the owner or his or her survivors.

Source. 2016, 230:11, eff. Aug. 8, 2016.

Section 383-B:4-406

    383-B:4-406 Minor Accounts. – Depository banks may pay to a minor deposits to his or her credit as if he or she were of age, and the receipt by the minor shall discharge the depository bank of any liability for any payment so made. A minor shall have the power of a person of lawful age to pledge a deposit account that is owned or co-owned by the minor in order to secure a collateral obligation not exceeding the amount of the account.

Source. 2016, 230:11, eff. Aug. 8, 2016.

Section 383-B:4-407

    383-B:4-407 Foreign Banks. – The provisions of this section shall also apply to deposits maintained in this state by foreign banks.

Source. 2016, 230:11, eff. Aug. 8, 2016.

ARTICLE 5
Safe Deposit Boxes

Section 383-B:5-501

    383-B:5-501 Safe Deposit Boxes. –
(a) If the amount due for the rent or use of a safe deposit box has not been paid for 6 consecutive months, or if the renter thereof shall not have removed the contents thereof within 30 days from the termination of the lease therefor for any reason other than for the non-payment of rent, the depository bank shall send a written notice to the renter at his or her last known mailing address by registered or certified mail, return receipt requested. The notice shall state that the renter has 60 days from the date the letter is sent to pay the rent and/or remove all contents, or the depository bank will follow the procedure as set forth in subsection (b) below. The letter shall set forth in detail the procedure to be followed.
(b) At the expiration of 60 days from the date of mailing the notice, if the renter of the safe deposit box failed to pay all of the amounts due for the rental to the date of payment, and/or remove the contents, all right of the person in the safe deposit box and of access to the box shall cease. The depository bank shall be required to use only the degree of care required of a bailee for the sole benefit of the bailor notwithstanding the contract of renting requires a higher degree of care during the period of renting. In the presence of an officer of the depository bank and a notary public who is not an officer or employee, the depository bank shall cause the safe deposit box to be opened. The notary public shall remove the contents thereof, make a list of them, seal the contents in a package, and write on the package the name and address of the person in whose name the safe deposit box was recorded on the books of the depository bank. In the presence of the notary public and the bank officer, the package shall be placed in one of the storage vaults of the depository bank. The proceedings of the notary public, including the list of the contents of the safe deposit box of the contents, shall be recorded under his or her official seal and maintained in written or electronic form by the depository bank.
(c) The record of the notary public shall be prima facie evidence of the facts stated therein in all proceedings at law and in equity wherein evidence of the facts would be competent.
(d) If the contents of the safe deposit box have not been claimed or redeemed by the payment of charges within 5 years after the removal of the contents, the depository bank shall, without any requirement to appraise the contents of the safe deposit box and, notwithstanding the right to inspection under RSA 471-C:19, II(c), sell the contents of the safe deposit box at public auction, public sale, or nationally recognized internet auction to the highest bidder after providing the notice to the apparent owner as required by RSA 471-C:19, V. For all sales or auctions, the time and place of any auction or sale shall be posted conspicuously on the premises of the depository bank and shall be published in a newspaper of general circulation once weekly for 3 consecutive weeks, the last publication being no less than 10 days before the auction or sale, in a newspaper published in the place where the safe deposit box is located. Any documents, letters or other papers of a private nature and any property or articles of no apparent value among the contents of the safe deposit box shall not be sold, but shall be retained for the 5 years from the time of the opening of the safe deposit box, and unless sooner claimed by the renter of the safe deposit box, may thereafter be destroyed without the need to provide notice to the apparent owner under RSA 471-C:19, V. Contents of a safe deposit box offered for sale for which no purchaser exists may be destroyed by the depository bank. United States coin or currency among the contents of any safe deposit box so opened need not be sold, but may be used by the depository bank to pay for its charges as set forth below. U.S. Savings Bonds shall not be sold or destroyed, but instead delivered to the administrator under RSA 471-C. If property is destroyed under this section, no action or proceeding may be maintained against the depository bank or any of its employees, officers or directors for or on account of the action.
(e) From the proceeds of the sale, the depository bank shall deduct all its charges for rental up to the time of opening the safe deposit box, including the amount which shall have been due for rental up to the time of opening the safe deposit box, the cost of the opening thereof, and the fees of the notary public for his or her proceedings and shall pay from time to time the further charges and costs of safe keeping, selling, and destroying the contents of the safe deposit box so opened, including reasonable expenses for notices, advertising, sale, and destruction. After deduction of costs, the depository bank shall remit the net cash proceeds to the state treasurer under RSA 471-C:21.
(f) When a safe deposit box is rented to 2 or more persons under a rental contract granting a separate right of access to either or any one of the persons or the survivor or survivors of them, the survivor or survivors of the joint renters shall have a right of access to the safe deposit box for any purpose; and the depository bank shall be protected against all renters of the box, their heirs, assigns, executors, and administrators, in recognizing that right.
(g) When a safe deposit box is rented to a person, and the renter appoints a representative on the records of the depository bank by written power of attorney expressly providing that the representative shall have a continued right of access to the safe deposit box after the death of the renter, and the renter dies survived by the representative, then, notwithstanding any rule of law to the effect that a power of attorney is terminated by the death of the principal, the surviving representative shall have a right of access to the box for any purpose; and the depository bank, its employees, officers, and directors shall be protected against the heirs, assigns, executors, and administrators of the deceased renter in recognizing that right.
(h) The provisions of subsections (f) and (g) shall not be construed to create a joint tenancy in or otherwise establish ownership in any of the contents of a safe deposit box.
(i) A depository bank engaged in the business of renting safe deposit boxes, which in good faith allows the department of revenue administration access to a taxpayer's safe deposit box under the department's distraint powers under RSA 80 shall be discharged, as well as its employees, officers and directors, from any obligation or liability to the taxpayer with respect to the property contained in the safe deposit box.
(j) The provisions of this section shall also apply to safe deposit boxes maintained in this state by foreign banks.

Source. 2015, 272:16, eff. Oct. 1, 2015.

ARTICLE 6
Mutual Banks and Mutual Holding Companies

Section 383-B:6-601

    383-B:6-601 Mutual Banks and Mutual Holding Companies. – This article sets forth the special requirements for mutual banks and mutual holding companies in this state.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-602

    383-B:6-602 Capital Debentures; Special Deposits. – The initial capital required to organize a mutual bank shall be in the form of capital debentures or special deposits. The commissioner shall first approve the maturity, interest rate, and repayment provisions of each debenture or special deposit. No retirement of capital debentures or special deposits, in whole or in part, shall be permitted which would leave its capital less than the minimum amount required by the commissioner. The total amount of the capital debentures or special deposits of a mutual bank held by any other bank shall not at any time exceed 10 percent of the total amount of capital debentures or special deposits issued by the mutual bank. The capital debentures shall be transferable only on the books of the mutual bank and shall be subordinate to all general deposits and to all other debts, claims and obligations of the mutual bank. The issuance of capital debentures and special deposits, including increases therein, shall be governed by RSA 383-A:4-403.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-603

    383-B:6-603 Authority to Invest in Other Mutual Banks and Mutual Holding Companies. – Notwithstanding any other law to the contrary, a mutual bank and mutual holding company may invest an amount not to exceed 25 percent of its capital and surplus in the capital debentures, bonds, special deposits, or other debt securities of any other mutual bank or mutual holding company located in this state or in any other state, whether the other bank is in organization or in existence. For purposes of this section, if the investment constitutes more than 50 percent of the capital and surplus of the mutual bank or mutual holding company issuing the capital debentures, bonds, special deposits or other debt securities, the banks involved in the investment transaction shall be deemed affiliates and may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations as an agent for each other in the same manner as bank subsidiaries of a bank holding company may do so under subsection (r) of the Federal Deposit Insurance Act, 12 U.S.C. section 1828. The banks shall not be considered branches of each other nor shall the bank making the investment be considered a bank holding company.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-604

    383-B:6-604 Board of Directors of Mutual Banks and Mutual Holding Companies. – The governance of a mutual bank or mutual holding company shall be vested in its board of directors. The board of directors shall have all powers and authorities granted under the organizational documents of the mutual bank or mutual holding company and applicable federal and state laws. The board of directors shall elect officers and shall supervise management of the mutual bank or mutual holding company. The board of directors shall be required to review and approve by majority vote, or by higher vote if required by applicable state laws or by the organizational documents, any matter expressly reserved for the approval of corporators under RSA 383-B:6-605(a) prior to submitting the matter to the corporators for their approval or association members under RSA 383-B:6-605(b) prior to submitting the matter for association members for their approval. In exercising their duties as directors, the directors shall consider the interests of the depositors, borrowers, and other customers of the mutual bank or mutual holding company, the general benefit, and economic well-being of the communities served by the mutual bank or mutual holding company and the safety, soundness, and general business needs of the mutual bank or mutual holding company. The directors shall be accountable to the corporators or association members, as applicable, for the proper discharge of their duties.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-605

    383-B:6-605 Corporators or Association Members of Mutual Banks and Mutual Holding Companies. –
(a) The corporators shall be deemed to be exclusively representative of, and shall exclusively represent, the various interests and communities served by the mutual savings bank or mutual holding company. Each corporator shall be entitled to cast one vote and may vote in person or by proxy. The corporators shall elect persons to serve as corporators and directors, and may remove any corporator or director who has failed to properly discharge his or her duties, in the manner prescribed by its organizational documents. Except as expressly provided in RSA 383-B:6-618, the following corporate powers of a mutual savings bank or mutual holding company shall be vested solely in the corporators: the corporators shall have authority to approve by majority vote, or by higher vote if required by applicable state laws or rules or by the organizational documents, the amendment of the organizational documents, the conversion of the mutual savings bank or mutual holding company from mutual to stock form, the formation of a mutual holding company, the combination of the mutual savings bank or mutual holding company with any other entity, the voluntary liquidation of the mutual savings bank or mutual holding company, and any other matter expressly reserved for the approval of corporators under applicable state laws or the organizational documents of the mutual savings bank or holding company. The corporators shall consider the interests of the depositors, the borrowers, and other customers of the mutual savings bank or mutual holding company, the general benefit and economic well-being of the communities served by the mutual savings bank or mutual holding company, and the safety, soundness, and general business needs of the mutual savings bank or mutual holding company in exercising their duties as corporators.
(b) The voting rights and interests of association members of a savings association or mutual holding company are governed by the organizational documents of the savings association or the mutual holding company only, and not subsection (a). In any case requiring a vote of the corporators of a mutual savings bank or mutual holding company, the vote shall be cast by the association members instead.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-606

    383-B:6-606 Rights of Depositors of Mutual Banks or Mutual Holding Companies. –
(a) A depositor at a mutual bank shall have an undivided inchoate interest in the net worth of the mutual bank in proportion to the amount of the person's funds in the account or accounts divided by the aggregate amount of all funds of persons on deposit in time, savings, and demand accounts at the mutual bank at the time the interest ripens into a vested estate. The inchoate interest shall terminate upon the withdrawal of a depositor's funds in a time, savings, or demand account or accounts from the mutual bank. The inchoate interest shall be of no force or effect unless and until a dividend is declared or liquidation proceedings are commenced under RSA 383-B:6-607. If a bank is owned by a mutual holding company, the depositors of the bank shall have the same inchoate interest in the net worth of the mutual holding company.
(b) In the event that a mutual bank or mutual holding company converts from mutual to stock form, the proprietary interest of depositors shall be transferred to the liquidation account of the converted bank in the same manner as prescribed for a federal savings bank or federal mutual holding company under federal law.
(c) Depositors of a mutual savings bank or association members of a savings association shall have the right to vote to give approval to a conversion of a mutual bank or mutual holding company from mutual to stock form in a transaction involving the issuance of securities of any bank or bank holding company other than the securities of the converting mutual bank or the securities of a mutual holding company organized by the converting mutual bank in order to acquire its capital stock, as required in RSA 383-B:6-608. Except as otherwise provided in the organizational documents of the mutual savings bank or savings association, each depositor or association member shall be entitled to cast one vote and may vote in person or by proxy.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-607

    383-B:6-607 Dividends to Depositors of Mutual Banks and Mutual Holding Companies. – Except as may be limited or otherwise required by applicable federal or state laws, and subject to its management duties as provided in RSA 383-B:6-604, the board of directors of a mutual bank or mutual holding company through its subsidiary bank or subsidiary banks may declare a dividend and distribute the capital, surplus, and retained earnings to the depositors of the bank or banks, in proportion to the average amount of their respective funds on deposit during the 30-day period immediately preceding the time at which a dividend is declared, in such amounts, at such times, and under such conditions as are determined by the directors in the exercise of their reasonable discretion. In the event of liquidation of a mutual bank or mutual holding company, the assets, if any, of the mutual bank or mutual holding company remaining after payment of all liabilities and the costs and expenses of the liquidation shall be distributed as a dividend to the depositors of the mutual bank or subsidiary bank or subsidiary banks, in proportion to the average amount of their respective funds on deposit during the 30-day period immediately preceding the time at which the liquidation proceedings are commenced.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-608

    383-B:6-608 Conversion From Mutual to Stock Form. –
(a) Any mutual bank or mutual holding company may convert to stock form in the same manner as prescribed for a federal savings bank or a federal mutual holding company under federal law. However, no conversion under this subsection shall be permitted that includes as part of the conversion transaction the issuance of securities of any bank or holding company other than securities of the converting bank or holding company or the securities of a holding company organized by the converting bank in order to acquire its capital stock, unless in addition to procedures required by the rules adopted under this section, it is ratified by the depositors of a mutual bank or the depositors of a subsidiary bank or subsidiary banks of a mutual holding company. Ratification by depositors shall not be required if the conversion is part of a reorganization into a mutual holding company or the conversion is required by federal or state regulatory authorities.
(b) The depositor voting procedures shall be the same as those prescribed for a federal savings bank or a federal mutual holding company under federal law.
(c) In connection with a proposed conversion under the provisions of this section, no new compensation arrangement shall be provided for directors, officers, or employees unless the commissioner finds that it is fair and reasonable, based upon all of the facts and circumstances of the conversion and the future management and operational needs of the mutual bank or mutual holding company, including comparable compensation arrangements at similarly situated banks or holding companies. In addition, no conversion or reorganization shall be approved by the commissioner unless the commissioner finds that the process of obtaining corporate decisions and approvals was conducted in a lawful, informed, and independent manner, the rights of the depositors of the converting mutual bank or of the subsidiary bank or subsidiary banks of the converting mutual holding company are not impaired under the plan of conversion or reorganization, the depositors are not treated detrimentally or inequitably under the terms of the proposed conversion or reorganization, and the plan of conversion or reorganization does not provide corporators, if any, directors, officers, or employees with any benefit, privilege, or advantage with respect to the purchase, if any, of the capital stock in the conversion or reorganization which is not generally available to the depositors.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-609

    383-B:6-609 Reorganization of a Mutual Bank as a Mutual Holding Company. –
A mutual bank may reorganize as a mutual holding company owning a subsidiary bank under a plan of reorganization, by taking or causing to be taken the following actions:
(a) The mutual bank shall organize a wholly-owned subsidiary bank in accordance with the procedures of RSA 383-B:6-617.
(b) The mutual bank shall transfer to the subsidiary bank a substantial part of its assets and liabilities, including all of its insured liabilities, in exchange for all of the capital stock of the subsidiary bank.
(c) The mutual bank shall adopt an amended and restated organizational instrument changing its name, and conforming its organization, governance, and powers to those prescribed for a mutual holding company by RSA 383-B:6-616.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 169:9, eff. July 10, 2019.

Section 383-B:6-610

    383-B:6-610 Reorganization of Mutual Bank by Merger. –
As an alternative to the procedure set forth in RSA 383-B:6-609, a mutual bank may reorganize into a mutual holding company structure under a plan of reorganization, by taking or causing to be taken the following actions:
(a) The mutual bank shall organize a mutual holding company conforming its organization, governance and powers to those prescribed for a mutual holding company by RSA 383-B:6-616 in the same manner as a bank under RSA 383-A. The mutual bank may provide funds to the mutual holding company for the purpose of enabling it to capitalize the subsidiary bank, to cover the expenses of organization, and to provide initial working capital. If the organizational instrument is approved by the commissioner, he or she shall certify the approval on the organizational instrument, which shall be thereupon filed in the office of the secretary of state.
(b) The mutual bank and the newly organized mutual holding company shall organize a subsidiary bank to be wholly-owned by the mutual holding company upon completion of the reorganization in accordance with the procedures of RSA 383-B:6-617.
(c) The mutual bank shall combine with the subsidiary bank. As part of the combination, the proprietary interests of the depositors in the mutual bank immediately prior to the combination shall be exchanged for identical proprietary interests in the mutual holding company.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-611

    383-B:6-611 Procedure for Adopting a Plan of Reorganization. – The plan of reorganization shall be approved by the board of directors of the mutual bank by resolution adopted by a vote of 2/3 of the full board. The plan of reorganization shall then be submitted for adoption at a special meeting of the corporators of the mutual savings bank or association members of a savings association called in the manner provided by its organizational documents. Copies or summaries of the plan of reorganization shall be enclosed with the notice of the special meeting. The plan of reorganization shall be adopted by a vote of 2/3 of the corporators or association members, as applicable. Except as otherwise provided in the organizational documents of the mutual savings bank or savings association, each depositor or association member shall be entitled to cast one vote and may vote in person or by proxy.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-612

    383-B:6-612 Review by Commissioner. – A mutual bank that has adopted a plan of reorganization in accordance with RSA 383-B:6-611 shall apply to the commissioner for approval under RSA 383-A:6-602. The depository bank may complete the reorganization if it is permitted to do so by the commissioner under RSA 383-A:6-604.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-613

    383-B:6-613 Notice to Depositors. – A mutual bank that has obtained approval from the commissioner to complete the reorganization shall give its depositors written notice of the reorganization at least 30 days prior to the effective date of the reorganization. The notice shall include a brief description of the plan of reorganization. Any depositor of the mutual bank who fails to withdraw the amount deposited to his or her credit at the bank prior to the effective date of the reorganization shall be deemed to have assented to the reorganization.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-614

    383-B:6-614 Retention of Capital Assets at Holding Company Level. – With the approval of the commissioner, the plan of reorganization of a mutual bank may provide for the retention of assets at, or transfer of assets to, the mutual holding company, provided the retention will not cause the subsidiary bank to fail to meet any applicable net worth or capital adequacy requirement prescribed by federal or state regulatory authorities and the retention of the assets complies with federal and state laws.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-615

    383-B:6-615 Continuation of Operations and Depositor Interest. –
(a) The commissioner may permit any newly created, wholly-owned subsidiary bank of a mutual holding company under RSA 383-B:6-609 to represent that it is a continuation of the operations of the mutual bank which was its organizer, provided such representation does not violate RSA 383-A:7-701 and is consistent with the operations of the new subsidiary bank under the plan of reorganization.
(b) The depositors of the mutual bank immediately prior to the reorganization shall be entitled to deposits in the subsidiary bank of the mutual holding company of like amounts, interest rates, and other terms, without interruption of interest, and the deposits shall continue to be insured by the Federal Deposit Insurance Corporation up to the maximum amount provided by law. The depositors of the mutual bank immediately before the reorganization, shall, by virtue of the reorganization, have proprietary interests in the net worth of the mutual holding company of the same nature, rights, and proportions as the proprietary interests which they had in the mutual bank, in lieu of the former interests.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 169:10, eff. July 10, 2019.

Section 383-B:6-616

    383-B:6-616 Ownership, Governance, and Powers of Mutual Holding Companies. –
(a) A mutual holding company organized under this article shall not be a capital stock corporation, shall not be subject to RSA 292, nor shall it be subject to RSA 293-A, except as is otherwise expressly provided in RSA 383-A with respect to banks. The net earnings and net worth of a mutual holding company shall inure to the benefit of depositors of its subsidiary bank or subsidiary banks. The persons shall have the same rights in the mutual holding company as depositors of a mutual bank have in the bank under RSA 383-B:6-606.
(b) Except as otherwise provided in this subsection, the corporate powers of a mutual holding company shall be vested solely in its corporators, who shall consist of the persons who are named as corporators in the plan of reorganization, and such additional persons as may be chosen to serve as corporators from time to time as provided in the organizational documents of the mutual holding company. The corporators of a mutual holding company shall have the same rights and duties in the mutual holding company as the corporators of a mutual bank have in the bank under RSA 383-B:6-605. The governance of a mutual holding company shall be vested solely in its board of directors. The directors shall be elected by the corporators. The board of directors of the mutual holding company shall have all powers and authorities granted under its organizational documents and applicable federal and state laws. The board of directors shall elect officers and shall supervise management of the mutual holding company. The directors of a mutual holding company shall have the same rights and duties in the mutual holding company as the directors of a mutual bank have in the bank under RSA 383-B:6-604. The initial board of directors shall consist of the persons named in the plan of reorganization. The directors shall hold office until the first annual meeting of the corporators and until their successors have been chosen and qualified. The board of directors shall hold an organization meeting immediately following consummation of the reorganization for the adoption of organizational documents and the election of officers. Any action by a mutual holding company which, if taken by a business corporation, would require the approval of its shareholders under the Corporation Act shall require the vote or concurrence of the corporators of the mutual holding company and in such proportion of the corporators as would be required for the approval of similar action by shareholders of a business corporation. In the case of a savings association converting into a mutual holding company, the rights of the corporators described in this subsection shall be held instead by the association members.
(c) The general purpose of a mutual holding company shall be conducting and carrying on the business and activities of a bank holding company. A mutual holding company shall not accept deposits. It shall have the general powers of business corporations as set forth in the Corporation Act. A mutual holding company may:
(1) Invest in the stocks and securities of banks or bank holding companies;
(2) Organize a bank in any jurisdiction and directly or indirectly acquire a bank by purchase, combination, or any other manner in any jurisdiction;
(3) Combine with or acquire another mutual holding company or foreign mutual holding company;
(4) Combine any subsidiary of the mutual holding company with and into another subsidiary thereof;
(5) Make capital contributions and loans to its subsidiaries and affiliates and otherwise assist them financially;
(6) Engage either directly or indirectly in any non-banking activity authorized for a bank holding company under federal law; and
(7) Issue capital debentures for the purpose of strengthening its financial condition. With the approval of the commissioner, the debentures shall be considered as legal investments for banks.
(d) The limitations of RSA 383-B:9-906 on the acquisition of affiliates by a bank holding company shall apply to a mutual holding company.
(e) A mutual holding company may convert from mutual to stock form under RSA 383-B:6-608.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-617

    383-B:6-617 Chartering of Subsidiary Bank. –
The procedures for the organization of a subsidiary bank shall be as prescribed in RSA 383-A, except that:
(a) The reorganizing mutual bank or mutual holding company may serve as the organizer of the subsidiary bank being formed and as the applicant seeking approval of its incorporation.
(b) The organizational instrument shall contain a restriction to the effect that no shares of the capital stock of the subsidiary bank may be directly or indirectly issued to or held by a person other than the mutual holding company unless the issuance or holding of the shares is first approved by a 2/3 majority of the board of directors of the mutual holding company and its corporators or association members and then is approved by the commissioner in compliance with the provisions of this subsection. The commissioner shall adopt rules governing the issuance of shares of the capital stock of the subsidiary bank to any person other than the mutual holding company which are comparable to rules adopted by the commissioner governing the conversion of depository banks from mutual to stock form. In no event shall shares of the capital stock of the subsidiary bank be held by any person other than the mutual holding company if the commissioner determines that the corporators, if any, directors, officers, and employees of the mutual holding company or of the subsidiary bank are provided with a benefit, privilege, or advantage not generally available to depositors or otherwise impairs the rights of the depositors.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:6-618

    383-B:6-618 Supervision and Examinations. – The commissioner may require such reports from, and make such examinations of, each mutual holding company as he or she deems necessary to determine the true condition of the subsidiaries and affiliates thereof over which he or she has general supervision, the ability of the subsidiaries and affiliates to perform their engagements, and the inter-company relationship of the mutual holding company and its subsidiaries and affiliates. The cost of the examinations shall be assessed against, and paid by, the mutual holding company. Mutual holding companies shall furnish the commissioner with copies of the reports filed by them with their federal supervisory authorities, and the commissioner shall, as far as possible, rely upon the reports for the purposes of this article.

Source. 2015, 272:16, eff. Oct. 1, 2015.

ARTICLE 7
Branch Offices

Section 383-B:7-701

    383-B:7-701 Branch Offices. – This article sets forth the requirements for branching of depository banks in this state.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:7-702

    383-B:7-702 Branching Authority. –
No depository bank shall transact any part of its usual business of banking at any branch office except as follows:
(a) Subject to RSA 383-B:7-702(b), a depository bank may establish one or more branch offices or acquire branch offices from any depository bank, national bank, federal savings bank or foreign bank in any location within the state. The commissioner shall not permit a depository bank to establish or acquire a branch office if the dollar volume of the total deposits of the bank is greater than 30 percent of the dollar volume of the total deposits of all banks doing business in this state as determined by the commissioner on the basis of the most recent annual deposit reports of the Federal Deposit Insurance Corporation; nor shall the commissioner permit a depository bank to establish or acquire a branch office if the bank is an affiliate of a bank holding company which with all its affiliates then holds a dollar volume of total deposits greater than 30 percent of the dollar volume of total deposits of all banks doing business in this state as determined by the commissioner on the basis of the most recent annual deposit reports of the Federal Deposit Insurance Corporation.
(b) All depository banks shall submit an application to establish a branch office under RSA 383-A:6-602. A depository bank may proceed to establish or acquire the branch office if it is permitted to do so by the commissioner under RSA 383-A:6-604.

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

Section 383-B:7-703

    383-B:7-703 Branch Closings and Relocations. –
(a) A depository bank may close a branch office upon the affirmative vote of a majority of its board of directors, but the closing shall not occur until the depository bank has filed notice of the branch office closing with the commissioner under RSA 383-A:6-602. The depository bank shall be required to comply with federal requirements for branch closings.
(b) A depository bank may relocate a branch office upon the affirmative vote of a majority of its board of directors, but the relocation shall not occur until the depository bank has filed notice of the branch office relocation with the commissioner under RSA 383-A:6-602. The depository bank shall comply with federal requirements for branch relocations.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:9, eff. Sept. 8, 2017.

Section 383-B:7-704

    383-B:7-704 Loan Production Offices. – A depository bank and foreign bank that is authorized to make loans may engage in the business of loan production. A loan production office is any place of business located within this state at which the bank engages solely in activities relating to loan production. A loan production office is not a branch office. A depository bank or foreign bank shall provide the commissioner with written notice of its intent to establish or relocate a loan production office under RSA 383-A:6-602 and may proceed to establish a loan production office after filing the notice without further action by the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2018, 184:4, eff. Aug. 7, 2018.

Section 383-B:7-705

    383-B:7-705 Automated Teller Machines; Fee Disclosure. –
(a) A depository bank may own and operate automated teller machines in any location within or without the state. An automated teller machine is not a branch. A depository bank is not required to file a notice or application with the commissioner to establish, own or operate an automated teller machine. No fee shall be charged by a depository bank for the use of an automated teller machine unless the amount of the fee is disclosed clearly and conspicuously:
(1) On a sign posted on the automated teller machine or in clear view of a customer while using the automated teller machine; or
(2) Electronically during the course of the transaction in a manner that permits the user to cancel the transaction without incurring the fee.
(b) The depository bank shall not be required to include in a disclosure under subsection (a) any fee that any company may charge the user under separate agreement with the user for engaging in such transaction.
(c) This section shall apply to automated teller machines owned or operated by foreign banks in this state.
(d) For the purposes of this section, "automated teller machine" means any terminal, machine, or device that dispenses cash or its equivalent to a user or enables a user to engage in any electronic financial transaction involving an account of the user at any depository bank.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:7-706

    383-B:7-706 Existing Branch Offices. – Nothing herein shall be construed to make unlawful the continued operation of any branch office lawfully existing on October 1, 2015.

Source. 2015, 272:16, eff. Oct. 1, 2015.

ARTICLE 8
Conversion of Federal Banks and State Depository Banks

Section 383-B:8-801

    383-B:8-801 Conversion. – This article shall govern the conversion of a depository bank into a national bank or federal savings bank and the conversion of a national bank or federal savings bank into a depository bank.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:8-802

    383-B:8-802 Conversion of State Depository Bank Into a National Bank or Federal Savings Bank. – A depository bank may convert into a national bank or federal savings bank. The conversion shall be governed by federal law and not the law of this state, except that the conversions shall be approved by a majority of the holders of each class of voting stock of an investor-owned depository bank, the corporators of a mutual savings bank, or the association members of a savings association, or by a higher percentage if required by the entity's organizational documents.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:8-803

    383-B:8-803 Conversion of a National Bank or Federal Savings Bank Into a Depository Bank. – A national bank or federal savings bank located in this state which follows the procedure prescribed by federal laws to convert into a depository bank, shall be granted a charter in this state if the commissioner finds that the bank meets the standards as to office location, capital structure, and business experience of officers and directors for the incorporation of a depository bank under RSA 383-A.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:8-804

    383-B:8-804 Conversion of a Mutual Bank or Mutual Bank Into a Credit Union. – A mutual savings bank or mutual bank may convert to a credit union if the corporators of a mutual savings bank or the association members of a savings association approve the conversion by majority vote, or by a higher percentage if required by its organizational documents.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:8-805

    383-B:8-805 Procedural Requirements. – A converting bank shall apply to the commissioner for approval of its conversion proposal under RSA 383-A:6-602. If the commissioner permits it to do so under RSA 383-A:6-604, the converting bank may complete the proposed conversion, subject to other federal or state approvals. The converted bank or credit union shall make any filings with the secretary of state that are required under RSA 383-A or RSA 383-E.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:8-806

    383-B:8-806 Rules. – The commissioner may adopt rules governing the terms and conditions of conversions under this article.

Source. 2015, 272:16, eff. Oct. 1, 2015.

ARTICLE 9
Combinations and Acquisitions

Section 383-B:9-901

    383-B:9-901 Depository Bank Combinations and Acquisition. – This article shall govern the combination and acquisitions of depository banks.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:9-902

    383-B:9-902 Procedural Requirements. –
(a) If a depository bank proposes to combine with another depository bank, national bank, federal savings bank, or foreign bank, the banks shall apply to the commissioner for approval of the proposed combination as required under RSA 383-A:6-602 and may complete the combination if they are permitted to do so by the commissioner under RSA 383-A:6-604, subject to other federal or state approvals. If resulting bank is a depository bank, it shall make any filings with the secretary of state that are required under RSA 383-A.
(b) A New Hampshire bank holding company may directly or indirectly acquire a depository bank, national bank, federal savings bank, or out-of state depository bank. A New Hampshire bank holding company may also organize, and be the sole incorporator of, an interim depository bank for the purpose of effecting an acquisition of the investor-owned bank under RSA 383-A. Any New Hampshire bank holding company proposing the acquisition shall apply to the commissioner for approval of the proposed acquisition as required under RSA 383-A:6-602 and may complete the acquisition if it is permitted to do so by the commissioner under RSA 383-A:6-604, subject to other federal or state approvals.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:9-903

    383-B:9-903 Required Vote. – The combination of depository banks or the acquisition of an investor-owned depository bank by a New Hampshire bank holding company is required to be approved by a majority of the owners of the shares having a right to vote of an investor-owned depository bank, a majority of the corporators of a mutual savings bank, a majority of association members of a savings association, or a higher percentage if required by their respective organizational documents, as applicable.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:9-904

    383-B:9-904 Name Change. – The bank resulting from a combination may change the name of the resulting bank. In such event, it shall comply with the requirements of RSA 383-A:3-316, if applicable.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:9-905

    383-B:9-905 Branch Offices. – As part of the proceedings for the combination authorized by this article, the bank resulting from the combination shall be authorized to operate any branch office or other office of the other bank or banks acquired in the combination unless otherwise ordered by the commissioner.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:9-906

    383-B:9-906 Bank Holding Company Affiliates. – No bank holding company shall directly or indirectly acquire ownership or control of any voting stock of a depository bank, national bank, or federal savings bank, and no depository bank shall combine with another depository bank or foreign bank, if upon making the acquisition the bank holding company would have more than 12 affiliates in this state, or the dollar volume of the total deposits in this state of the bank holding company and all its affiliates or the bank resulting from the combination would exceed 30 percent of the dollar volume of total deposits in this state of all banks in this state as determined by the commissioner on the basis of the most recent annual deposit reports of the Federal Deposit Insurance Corporation available at the time of acquisition.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:9-907

    383-B:9-907 Waiver of Deposit Limitation. – In any transaction involving the combination of any banks or bank holding companies, if one or more of such banks or bank holding companies is in such condition that the Federal Deposit Insurance Corporation or any other federal agency having supervisory authority over banks or bank holding companies in New Hampshire could take action which would result in a combination or other similar structural change, and in the absence of such federal action such a change would be prevented by any deposit limitation contained in this article, the commissioner may waive such deposit limitation. The waiver shall be binding upon the commissioner in any proceeding involving the combination of such bank, banks, or bank holding company.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:9-908

    383-B:9-908 Rules. – The commissioner may adopt rules governing the terms and conditions of acquisitions and combinations under this article.

Source. 2015, 272:16, eff. Oct. 1, 2015.

ARTICLE 10
Interstate Banking

Section 383-B:10-1001

    383-B:10-1001 Interstate Banking. – This article sets forth the requirements for interstate banking and branching in this state and other states by New Hampshire bank holding companies and depository banks and foreign depository banks and foreign bank holding companies.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:10-1002

    383-B:10-1002 Interstate Acquisition of a Bank by a Bank Holding Company. –
(a) A New Hampshire bank holding company may directly or indirectly acquire a foreign bank holding company or a foreign bank.
(b) A foreign bank holding company may directly or indirectly acquire a New Hampshire bank holding company, a depository bank, or a national bank or a federal savings bank having its principal place of business in New Hampshire. A foreign bank holding company may also organize, and be the sole incorporator of, a depository bank. No direct or indirect acquisition of a depository bank shall be permitted which will result in a violation of the deposit limitation contained in RSA 383-B:9-906 and 907.
(c) A New Hampshire bank holding company or a foreign bank holding company engaging in an acquisition under subsection (a) or (b) of this section shall apply to the commissioner for approval of the proposed acquisition as required under RSA 383-A:6-602 and file with the commissioner a copy of each application or notice filed with federal or other state regulatory authorities relating to the acquisition at the same time such application or notice is filed with such federal or other state regulatory authorities. If permitted by the commissioner under RSA 383-A:6-604, the bank holding company may complete the acquisition, subject to federal and other state approvals.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:10-1003

    383-B:10-1003 Interstate Bank Combination. –
(a) A depository bank may combine with any foreign bank. No combination shall be permitted which will result in a violation of the deposit limitation contained in RSA 383-B:9-906, except as provided in RSA 383-B:9-907.
(b) The depository bank shall be required to obtain all approvals necessary to combine with the foreign bank under New Hampshire law. The depository bank shall apply to the commissioner for approval of the proposed combination as required under RSA 383-A:6-602 and file with the commissioner a copy of each application or notice filed with federal or other state regulatory authorities relating to the combination at the same time such application or notice is filed with the federal or other state regulatory authorities. If it is permitted to do so by the commissioner under RSA 383-A:6-604, the depository bank may complete the combination with the foreign bank, subject to federal and other state approvals.
(c) If the resulting bank is a depository bank, it shall have all the powers held by the foreign bank with which it combined under the laws of the state in which each branch office is located, subject to the duties and restrictions thereof. In addition to any regulation by regulatory authorities in the state where a branch office is located, each branch office of the depository bank located outside of New Hampshire shall be subject to regulation by the commissioner as if such branch office were located in New Hampshire and shall comply with New Hampshire law in the conduct of its business in such other state unless otherwise required or permitted under the laws of such other state.
(d) If the resulting bank is a foreign bank, it shall have all the powers held by the depository bank with which it combined under New Hampshire law, subject to the duties and restrictions thereof. Any branch office located in New Hampshire of a foreign bank, other than a national bank or federal savings association, shall be regulated by the commissioner as if the branch office were a branch office of a depository bank. Any foreign bank having a branch office located in New Hampshire shall comply with New Hampshire law in the conduct of its business in New Hampshire. No branch office of a foreign bank shall be permitted to engage in any activity not permissible for a depository bank. Notwithstanding the foregoing, if the foreign bank is a national bank or a federal savings association, it shall comply with New Hampshire law to the maximum extent allowed under federal law.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:10-1004

    383-B:10-1004 Interstate Establishment or Acquisition of Branch Offices by Depository Banks. –
(a) A depository bank may establish a branch in any state or may acquire one or more branch offices of a foreign bank in any state under federal law and the laws of the other state. The depository bank shall submit an application to establish or acquire a branch office to the commissioner under RSA 383-A:6-602. The depository bank may proceed to establish or acquire the branch office if it is permitted to do so by the commissioner under RSA 383-A:6-604. The depository bank shall have all the powers under the laws of the state in which each branch office is located, subject to the duties and restrictions thereof. In addition to any regulation by regulatory authorities in the state where a branch office is located, each branch of the depository bank located outside of New Hampshire shall be subject to regulation by the commissioner as if such branch office were located in New Hampshire and shall comply with New Hampshire law in the conduct of its banking business in such other state unless otherwise required or permitted under the laws of such other state.
(b) A foreign bank may establish one or more new branch offices in New Hampshire or may acquire one or more branch offices from a depository bank or a national bank or federal savings bank having its principal place of business in New Hampshire. The foreign bank shall submit an application to establish or acquire the branch office to the commissioner under RSA 383-A:6-602. The foreign bank may proceed to establish or acquire the branch office if it is permitted to do so by the commissioner under RSA 383-A:6-604. No branch office may be established or acquired if it will result in a violation of the deposit limitation contained in RSA 383-B:7-702(a). The foreign bank shall file with the commissioner a copy of each application or notice filed with federal or other state regulatory authorities relating to the establishment or acquisition of a branch office or branch offices at the same time such application or notice is filed with such federal or other state regulatory authorities. The foreign bank shall have all the powers held by a depository bank with respect to the operation of the branch office or branch offices located in New Hampshire under New Hampshire law, subject to the duties and restrictions thereof. Each branch office located in New Hampshire of a foreign bank, other than a national bank or federal savings association, shall be regulated by the commissioner as if the branch office were a branch office of a depository bank. Any foreign bank having a branch office located in New Hampshire shall comply with New Hampshire law in the conduct of its banking business in New Hampshire. No branch office of a foreign bank shall be permitted to engage in any activity not permissible for a depository bank. Notwithstanding the foregoing, if the foreign bank is a national bank or a federal savings association, it shall comply with New Hampshire law to the maximum extent allowed under federal law.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2017, 209:10, eff. Sept. 8, 2017.

Section 383-B:10-1005

    383-B:10-1005 Examination of Foreign banks and Foreign Bank Holding Companies. –
(a) The commissioner may examine New Hampshire branch offices of (i) foreign banks, other than national banks and federal savings banks, and (ii) foreign bank holding companies. The commissioner may, as an adjunct to such authority, enter into agreements with federal and other state regulatory authorities to examine or participate in the examination of New Hampshire branch offices of foreign banks and foreign bank holding companies. Notwithstanding RSA 98-B:5, or any other provision of law to the contrary, the commissioner is authorized to permit one or more department employees to travel outside this state for purposes of conducting or participating in the examination of a foreign bank or foreign bank holding companies without the necessity of obtaining the separate consent of the governor and executive council for such out-of-state travel. The commissioner is further authorized to enter into agreements with federal and other state regulatory authorities for purposes of sharing and protecting the confidentiality of any department examination report, work papers, or other examination information and the examination report, work papers, or other examination information of the other state or federal regulatory authority.
(b) The cost of any examination conducted under subsection (a) shall be the same as that provided by RSA 383:11.
(c) The commissioner and examination personnel making an examination, either individually or as a group, may mutually agree to flexible or alternative work schedules, similar to Federal Deposit Insurance Corporation and Federal Reserve Bank examiner work schedules, that will permit department examiners assigned to an out-of-state examination to work less than 5 days per calendar week, provided that the examiner shall work no less than 75 hours per scheduled pay period. Neither the commissioner nor any employee affected hereby shall be required or compelled, as a condition of continued employment or otherwise, to consent to such flexible or alternative work schedule. The commissioner shall be entitled to establish policies that set forth the number of hours in each work day and the days of the week that constitute work days, or other conditions applicable to flexible and alternative work schedules, and any flexible or alternative work schedule agreements entered into between the commissioner and examiners shall be subject to such policies.

Source. 2015, 272:16, eff. Oct. 1, 2015. 2019, 168:11, eff. Sept. 8, 2019.

Section 383-B:10-1006

    383-B:10-1006 Examination of Out-of-State Branch Offices of Depository Banks. – The commissioner shall be authorized to conduct or to enter into agreements with federal bank or foreign regulatory authorities to examine out-of-state branch offices of depository banks. The cost of such examinations shall be chargeable and paid in accordance with RSA 383-B:10-1005 and RSA 383:11, I. RSA 383-B:10-1005 shall apply to department examination personnel employed in making such examinations.

Source. 2015, 272:16, eff. Oct. 1, 2015.

Section 383-B:10-1007

    383-B:10-1007 Insurance Not Affected. – This chapter shall not be interpreted to limit or to enlarge the power of any depository bank, national bank, federal savings bank or foreign depository bank to engage in the business of insurance or in any activity requiring licensing under RSA 401 or RSA 405.

Source. 2015, 272:16, eff. Oct. 1, 2015.