17:9A-24.7 - Investments in stock of clearing corporations by qualified banks

17:9A-24.7.  Investments in stock of clearing corporations by qualified banks    A qualified bank, as defined in section 1 of the act to which this act is a  supplement (C. 17:9A-1), shall have power to subscribe for, purchase, and hold  stock of one or more clearing corporations as defined in N.J.S. 12A:8-102  provided that

    a.  in the case of a qualified bank which is a savings bank, the amount invested in such stock shall not exceed 5% of its surplus;

    b.  in the case of a qualified bank which is not a savings bank, the amount  invested in such stock shall not exceed 10% of its capital stock and surplus;

    c.  each investment in such stock shall first have been authorized by a resolution stating the number of shares to be acquired and the amount to be paid therefor, adopted by its board of directors or board of managers in the case of a qualified bank which is a savings bank, and, in the case of a qualified bank which is not a savings bank, approved by a majority in interest of its stockholders at an annual or special meeting;  and

    d.  each investment in such stock shall have been approved in writing by the  Commissioner of Banking.

     L.1973, c. 360, s. 1, eff. Jan. 2, 1974.