New Jersey § 17:9a-25

§ 17:9a-25.

In addition to the powers specified in section 24, 1 every bank shall, subject to the provisions of this act, have the following powers,

whether or not such powers are specifically set forth in its certificate of incorporation: (1) To discount, buy, invest in, hold, assign, transfer, sell, and negotiate promissory

notes, drafts, bills of exchange, mortgages, trade acceptances, bankers' acceptances,

bonds, debentures, bonds or notes secured by mortgages, installment obligations, balances

due on conditional sales, and other evidences of debt for its own account, or for

the account of customers; (2) To accept for payment at future dates drafts drawn upon it by its customers; (3) To issue letters of credit to guarantee the payment by its customers of amounts due or to become due upon the

purchase by such customers of real or personal property; (4) To receive interest and noninterest bearing demand and time deposits, to be repaid

on such terms as may be agreed upon between the depositors and the bank, and to furnish

security for such deposits when required by the laws of this State or of the United

States, or by rules or orders of any court of this State or of the United States or

by the regulations of an officer or agency of this State or of the United States,

made pursuant to such law; provided that no bank shall be required to give security

for deposits made by this State, or any political subdivision thereof, or any other

body politic existing under the laws of this State, to the extent that such deposits

are insured under any federal legislation providing for the insurance of bank deposits; (5) To maintain savings departments for the receipt of interest and noninterest bearing

deposits, to be repaid on such terms as may be agreed upon between the depositors

and the bank, and to commingle such deposits with deposits otherwise received; (6) During hours other than the bank's usual hours for receipt of deposits, to provide

the equipment for receiving, and to receive, containers purporting to contain moneys

or instruments for the payment of money; (7) To make loans, secured or unsecured, including loans to its stockholders; (8) To extend credit by honoring overdrafts upon deposit accounts, but no credit shall

be so extended except pursuant to written agreement made in advance; (9) To buy and sell gold and silver bullion, foreign coin, and exchange; (10) To purchase and sell debt and equity securities of other corporations, without

recourse, solely upon order and for the account of customers. This paragraph shall not limit the power of a bank to take securities of other corporations

as collateral security for loans, discounts, or other extensions of credit, or to

acquire those securities when their acquisition is necessary to prevent or minimize

loss upon debts previously contracted in good faith. Equity securities acquired pursuant to this paragraph shall be sold within five

years after their acquisition, except that the commissioner may, by order, extend

the time within which sales of equity securities described in such order shall be

made; but this paragraph shall not invalidate the holding of any equity securities

lawfully acquired on or before the effective date of this act. This paragraph shall not apply to any case in which, pursuant to any other provision

of this act, or pursuant to any other act, a bank is expressly authorized to subscribe

for, purchase or otherwise acquire or hold securities; (11) To receive any tangible personal property for safekeeping and storage on the

terms provided by chapter 7 of Title 12A of the New Jersey Statutes, and to keep,

maintain, and rent out for hire, space for the storage and safekeeping of personal

property of such kind and description, or represented by the depositor thereof to

be of such kind and description, as the commissioner may by regulation from time to

time prescribe; but nothing herein contained shall limit the power of a bank to let

space for the storage and safekeeping of personal property to which the bank has security

title or in which it has a lien interest; (12) To avail itself of the provisions of any federal legislation providing for the

extension of any lawful banking activity in the making of loans or the extension of

credit to individuals, or for the financing of business enterprises, or in such other

banking activity as may be specified in such legislation and made available for participation

by banks; except that the power by this paragraph conferred shall not be exercised

unless the commissioner shall make a general order authorizing such participation

upon such terms and conditions as may in such order be prescribed; (13) To act as the fiscal agent of the United States, and of any corporation, and

of any State, county, municipality, board, commission or other body politic, and to

perform all duties as such fiscal agent as may lawfully be required of it; (14) To assist customers or act for customers in the preparation, handling and disbursement

of payrolls and payroll deductions and in the preparation, maintenance and furnishing

of records and statistical information in connection therewith. 1

N.J.S.A. § 17:9A-24.