N.J. Admin. Code § 3:14-1.3 - Authority to engage in bank services

(a) A bank service corporation may provide a bank service to a banking institution, an affiliate of a banking institution, or other person, or to combinations or multiples of the above, subject to the limitations set forth in this section.

1. A bank service which is described in paragraphs 1, 2, or 4 of the definition of "bank service," and which will be provided only to an affiliate, may be provided without application or notice to the Commissioner.

2. A bank service which is described in paragraphs 1 or 2 of the definition of "bank service," and which will be provided to a non-affiliate, may be provided if:

i. Written application has been received by the Commissioner which fully describes the bank service to be provided, the type of customer to whom the bank service is to be provided, the type of business in which the non-affiliate engages, and any information which supports the conclusion that the provision of the bank service is in the financial interest of the bank service corporation or affiliates of the bank service corporation; and either

(1) The bank service corporation has received approval in writing from the Commissioner; or

(2) At least 60 calendar days have passed since the receipt of the written application by the Commissioner, during which time the bank service corporation did not receive written notification by the Commissioner that the provision of the bank service to the non-affiliate is disapproved; and

ii. The Commissioner, at his or her discretion, has required and has received any additional information which might be relevant to a decision of whether to approve the application, which may include, but shall not be limited to, the names of the non-affiliates to whom the bank service is to be provided.

3. A bank service which is described in paragraph 3 of the definition of "bank service" may be provided to an affiliate or a non-affiliate if:

i. Written notice has been received by the Commissioner that the service has been approved for such bank service corporation, or for bank service corporations in general, by the Board of Governors of the Federal Reserve System, or by the appropriate local Federal Reserve Bank; and either

(1) The bank service corporation has received approval in writing from the Commissioner; or

(2) At least 60 calendar days have passed since the written notice required to be submitted by (a)3i above has been received by the Commissioner, and during which time the bank service corporation did not receive written notification by the Commissioner that the provision of the bank service is disapproved; and

ii. The Commissioner, at his or her discretion, has required and has received any additional information which might be relevant to a decision to disapprove the bank service, which may include, but shall not be limited to, a description of the bank service to be provided, the names of the non-affiliates to whom the bank service is to be provided, the type of business in which the non-affiliate engages, and any materials which support the conclusion that the provision of the bank service is in the financial interest of the bank service corporation or affiliates of the bank service corporation.

4. A bank service which is described in paragraph 5 of the definition of "bank service," may be provided to an affiliate or non-affiliate if:

i. Written application has been received by the Commissioner which fully describes the bank service to be provided, the types of customers to whom the bank service is to be provided, the type of business in which the non-affiliate engages, and any information which supports the conclusion that the provision of the bank service is in the financial interest of the bank service corporation or affiliates of the bank service corporation; and either:

(1) The bank service corporation has received approval in writing from the Commissioner; or

(2) At least 90 calendar days have passed since the Commissioner's receipt of the application, during which time the bank service corporation has not received written notification by the Commissioner that the provision of the bank service is disapproved, provided, however, that the Commissioner may make reasonable extensions of the period during which he or she may consider the application; and

ii. The Commissioner, at his or her discretion, has required and has received any additional materials which might be relevant to a decision of whether to approve the application, which may include, but shall not be limited to, the names of the non-affiliates to whom the bank service is to be provided.

(b) A bank service corporation may engage in a bank service described in paragraphs 2, 3, or 4 of the definition of "bank service", only upon the same terms and subject to the same conditions as are set forth in Federal law.

(c) Nothing in this chapter shall be construed to authorize a bank service corporation to engage in any activity which is reserved to banking institutions or qualified banks pursuant to N.J.S.A. 17:9A-213.

Notes

N.J. Admin. Code § 3:14-1.3

Amended by R.2004 d.309, effective 8/16/2004.
See: 36 New Jersey Register 1262(a), 36 New Jersey Register 3875(a).
In (a)4i(2), neutralized the gender reference.