Section 487.14310 - Investment in service entity.
BANKING CODE OF 1999 (EXCERPT)
Act 276 of 1999
487.14310 Investment in service entity.
Sec. 4310.
(1) As authorized by order or declaratory ruling of the commissioner, a bank may invest in service entities that engage in activities in which a bank is not authorized to engage.
(2) The maximum aggregate investment by a bank in service entities shall be the lesser of 5% of the bank's total assets or 75% of its capital and surplus.
(3) The commissioner shall give notice to all banks of orders and declaratory rulings issued under this section.
(4) For purposes of subsection (2), investment in a service entity shall include loans by a bank or its subsidiary to a service entity.
(5) Subject to the investment limit in subsection (2), a bank or its subsidiary that has made an initial investment in a service entity may make additional investments in that service entity without notice to the commissioner.
History: 1999, Act 276, Eff. Mar. 1, 2000