§ 53-232.10. Securities, etc., to be held in this State.
§53‑232.10. Securities, etc., to be held in this State.
(a) An internationalbanking corporation licensed under this Article shall hold, at its office inthis State, currency, bonds, notes, debentures, drafts, bills of exchange, orother evidence of indebtedness or other obligations payable in the UnitedStates or in United States funds or, with the prior approval of theCommissioner, in funds freely convertible into United States funds in an amountthat is not less than one hundred eight percent (108%) of the aggregate amountof liabilities of the international banking corporation payable at or throughits office in this State or as a result of the operations of the internationalbank branch or international bank agency, including acceptances, but excluding:
(1) Accrued expenses;and
(2) Amounts due andother liabilities to other offices, agencies, or branches of and wholly owned,except for a nominal number of directors' shares, subsidiaries of theinternational banking corporation.
(b) For the purpose ofthis Article, the Commissioner shall value marketable securities at principalamount or market value, whichever is lower, and may determine the value of anynonmarketable bond, note, debenture, draft, bill of exchange, or other evidenceof indebtedness or of any other obligation held by or owed to the internationalbanking corporation in this State. In determining the amount of assets for thepurpose of computing the above ratio of assets, the Commissioner may excludeany particular assets, but may give credit, subject to any rules adopted by theCommissioner, to deposits and credit balances with unaffiliated bankinginstitutions outside this State if the deposits or credit balances are payablein United States funds or in currencies freely convertible into United Statesfunds. In no case shall credit given for the deposits and credit balancesexceed in aggregate amounts any percentage, but not less than eight percent(8%), as the Commissioner may from time to time prescribe, of the aggregateamount of liabilities of the international banking corporations.
(c) If, by reason ofthe existence or the potential occurrence of unusual or extraordinarycircumstances, the Commissioner considers it necessary or desirable for themaintenance of a sound financial condition, for the protection of creditors andthe public interest, and to maintain public confidence in the business of theinternational bank agency of the international banking corporation, theCommissioner may reduce the credit to be given as provided in this section fordeposits and credit balances with unaffiliated banking institutions outsidethis State and may require the assets to be held in this State under thisArticle with any bank or trust company existing under the laws of this Statethat the international banking corporation designates and the Commissionerapproves.
(d) An internationalbank branch and international bank agency shall file any reports with theCommissioner as the Commissioner may require in order to determine complianceby the international bank branch or international bank agency with thissection. (1991, c. 679, s. 1.)