New Jersey § 17:9a-24

§ 17:9a-24.

Additional powers of banks and savings banks. In addition to the powers which banks and savings banks may otherwise exercise,

every bank and savings bank, as defined in section 1 of “The Banking Act of 1948,”

P.L.1948, c. 67 ( C.17:9A-1 ), shall have power (1) To subscribe for, purchase and hold stock of one or more insurance companies organized

under the laws of this State which have been or may hereafter be limited to insure

banks, savings banks and other depository institutions (a) Against loss from the defaults of persons in positions of trust, public or private,

or against loss or damage on account of neglect or breaches of duty or obligations

guaranteed by the insurer; and against loss of any bills of exchange, notes, checks,

drafts, acceptances of drafts, bonds, securities, evidences of debt, deeds, mortgages,

documents, gold or silver, bullion, currency, money, platinum and other precious metals,

refined or unrefined, and articles made therefrom, jewelry, watches, necklaces, bracelets,

gems, precious and semiprecious stones, and also against loss resulting from damage,

except by fire, to the insured's premises, furnishings, fixtures, equipment, safes

and vaults therein, caused by burglary, robbery, holdup, theft or larceny, or attempt

thereat. No such indemnity indemnifying against loss of any property as specified herein

shall indemnify against the loss of any such property occurring while in the mail

or in the custody or possession of a carrier for hire for the purpose of transportation,

except for the purpose of transportation by an armored motor vehicle accompanied by

one or more armed guards; and (b) Against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism

or malicious mischief, or any one or more of such hazards; and against any and all

kinds of loss or destruction of or damage to moneys, securities, currencies, scrip,

coins, bullion, bonds, notes, drafts, acceptances of drafts, bills of exchange and

other valuable papers or documents, except while in the custody or possession of and

being transported by a carrier for hire or in the mail. (2) To make loans and investments as authorized for associations by section 155 of

the “Savings and Loan Act (1963),” P.L.1963, c. 144 ( C.17:12B-155 ). (3) To make loans and investments as authorized for associations by, and subject to

the limitations of, sections 157 through 160 and 162 through 164 of the “Savings and

Loan Act (1963),” P.L.1963, c. 144 ( C.17:12B-157 through C.17:12B-160 and C.17:12B-162 through C.17:12B-164 ). (4) To extend credit through the use of credit cards issued by it through an arrangement

with participating vendors, and without limitation of the generality of the foregoing,

to exercise all the powers permitted to associations pursuant to subsection (18) of

section 48 of the “Savings and Loan Act (1963),” P.L.1963, c. 144 ( C.17:12B-48 ). (5) To make any investment authorized for associations by section 165 of the “Savings

and Loan Act (1963),” P.L.1963, c. 144 ( C.17:12B-165 ), provided, however, that where reference is made to State associations or federal

associations therein such reference for purposes of this act shall be deemed to refer

to banking institutions as defined in section 1 of “The Banking Act of 1948,” P.L.1948,

c. 67 ( C.17:9A-1 ). (6) To exercise any powers and activities that have been or are hereafter approved

by regulation of the Board of Governors of the Federal Reserve System as being (i) financial in nature or incidental to such financial activity, (ii) complementary

to a financial activity and not posing a substantial risk to the safety or soundness

of depository institutions or the financial system generally, or (iii) so closely related to banking or managing or controlling banks as to be a proper

activity for a bank holding company or financial holding company pursuant to the “Bank Holding Company Act of 1956,” 70 Stat. 133 ( 12 U.S.C. s. 1841 et seq. ) and regulations thereunder , to the extent that federal law does not prohibit banks or savings banks from exercising

those powers or activities . (7) To apply to the commissioner for authority, and if granted, to exercise any power

or activity that has been or is hereafter deemed to be (i) financial in nature or incidental to such financial activity, (ii) complementary

to a financial activity and not posing a substantial risk to the safety or soundness

of depository institutions or the financial system generally, or (iii) closely related to banking under the “Bank Holding Company Act of 1956,” 70 Stat.

133 ( 12 U.S.C. s. 1841 et seq. ) and which has been permitted on an individual basis by order of the Board of Governors

of the Federal Reserve System. (8) To make loans, as defined in this subsection, pursuant to which the parties may

contract for and the bank or savings bank may receive interest or other compensation

at a rate or rates or in an amount that the bank or savings bank and the borrower

may agree upon, notwithstanding the provisions of any other law of this State, except N.J.S.2C:21-19 , which limits the interest rate or finance charge which would otherwise be applicable

to the loan. A loan, for the purposes of this subsection, includes loans in the amount of $5,000.00

or more, payable on demand or in installments, and (a) which is for the purpose of

acquiring or is secured by equipment used for business or commercial purposes or (b)

is secured by (i) an interest in warehouse receipts, bills of lading, or other documents

of title which are subject to chapter 7 of Title 12A of the New Jersey Statutes, or

(ii) by an interest in negotiable instruments or commercial paper which are subject

to chapter 3 of Title 12A of the New Jersey Statutes, or (iii) by an interest in stocks,

bonds, certificates of deposit or other securities which are subject to chapter 8

of Title 12A of the New Jersey Statutes, or (iv) by an interest in any combination

of the foregoing. (9) To engage in the business of providing data processing and computer services. (10) To acquire, by purchase or otherwise, and to sell warrants, options or other

similar rights to any class or classes of equity securities issued or to be issued

by a corporation, if, at the time the warrants, options or other similar rights are

acquired, the issuer, or its parent company, affiliate or subsidiary, is a borrower

of funds loaned by the bank or savings bank, and if the acquisition by purchase or

otherwise, and the sale of the warrants, options or other similar rights neither adds

to the bank's or saving bank's credit risk nor increases the bank's or savings bank's

financial liabilities. The commissioner may, by regulation, prescribe the manner in which and the extent

to which the powers enumerated in this section may be exercised, including whether

they are to be exercised through a subsidiary corporation and may, by regulation,

prescribe other powers, not otherwise expressly authorized or prohibited by law, which

banks and savings banks may exercise.