New Jersey § 17:12b-48

§ 17:12b-48.

Without limiting the generality of the foregoing, every association shall have power

to: (1) Have succession by its corporate name for the period limited in its charter or

certificate of incorporation, and when no period is limited, perpetually. (2) Sue and be sued in any court. (3) Adopt and use a corporate seal and alter the same. (4) Purchase and otherwise acquire, hold, mortgage, pledge, lease, exchange, sell,

convey and otherwise dispose of, any real and personal property, necessary or incidental

to its operations and consistent with its powers and purposes. (5) Insure its members' accounts with the Federal Deposit Insurance Corporation, and comply with conditions necessary to obtain and maintain

such insurance. (6) Become a member of or stockholder in a Federal Home Loan Bank and to that end

to comply with all conditions of membership therein. (7) Act as agent for the United States or the State of New Jersey or any instrumentality

of either of them, when designated for that purpose, and perform such reasonable duties

as such agent as may be required of it. (8) Join any cooperative league organized for the purpose of protecting and promoting

the welfare of associations and their members and comply with all conditions of membership

therein. (9) Borrow money from any source in or out of the State, on the note, bond and mortgage

or other obligation of the association upon such terms and conditions as the board

may from time to time prescribe by resolution adopted by at least a majority of all

the members of the board and duly recorded on the minutes and to pledge, assign or

transfer mortgages, owned by the association and the obligations secured by such mortgages,

together with the shares, if any, pledged as collateral security therefor, or any

real or other personal property, as security for the repayment of money so borrowed. No association shall borrow money if by doing so the aggregate of its indebtedness

for borrowed money other than to the Federal Home Loan Bank will exceed 20% of its

capital, except with the approval of the commissioner . (10) (Deleted by amendment.) (11) Require an advance payment of interest for a period of one month on any loan;

and accept advance payments of interest, if made at the option of the debtor, for

any period on any loan. None of such payments shall be deemed usurious. (12) Where shares are issued, charge an admission fee, not to exceed $0.25 per share,

which shall include the cost of membership or share certificate and account book. (13) Impose charges upon a member for failure to make any payment to the association

when due, but only as provided in this paragraph. Where the association issues installment share accounts it may impose such charge

upon any member holding such an account or any borrower upon a sinking fund mortgage

not in excess of 1% a month upon the amount in arrears, except for the first month's

arrearage or the amount by which such first month's arrearage may be increased by

subsequent arrearage, in which case a charge not in excess of 5% may be imposed. Such charges shall be subject to the further limitations that no such charge shall

be deducted from any amount actually paid by a member upon an account nor shall the

total of any such charges against any account in any fiscal year exceed the amount

that may be charged for failure to make any payments for a six-month period nor shall

any charge for default be made on a charge for default. Otherwise an association may impose a charge for failure to make any required payment

to it when due upon any loan or contract for the resale of real estate to a member,

not to exceed 4% of the amount of each payment in arrears, but no more than one such

charge may be made with respect to any one payment in arrears. An association may impose a reasonable service charge against any member who tenders

to such association, for collection or as payment, a check or other instrument of

any type which subsequently is not honored by the institution or person upon which

such check or other instrument is drawn . None of such charges shall be deemed usurious. (14) Compute interest upon any direct reduction loan, on designated payment dates,

and add the same to the unpaid balance of such loan. (15) Act as agent for any person where such agency will further the interests of the

association and its members, subject to such limitations as may be prescribed by the

commissioner. (16) Upon application to and approval by the commissioner, to act as custodian or

trustee within the contemplation of the Federal Self-Employed Individuals Tax Retirement

Act of 1962, as amended and supplemented, 1 and the Employee Retirement Income Security Act of 1974 as amended and supplemented, 2 and as custodian, trustee or manager of any such investment fund the authorized investments

of which include, but need not be limited to, savings accounts or real estate loans,

and the beneficial interests in which may be represented by transferable shares or

certificates. Associations exercising the powers authorized by this subsection shall segregate

all funds held in such fiduciary capacities from the general assets of the association

and shall keep a separate set of books and records showing in detail all transactions

made under authority of this subsection. If individual records are kept for each self-employed individual's retirement plan

and each such investment fund, then all such funds held in such fiduciary capacities

by an association may be commingled for appropriate purposes of investment. No funds held in such fiduciary capacities shall be used by an association in the

conduct of its business; however, such funds may be invested in savings accounts

of the association in the event that the custodial, trust or other plan does not prohibit

such investment. In granting or refusing the association's application the commissioner shall take

into consideration the investment policies, amount, type and adequacy of reserves,

fidelity bonds and any legally required deposits of the applicant and other pertinent

facts and circumstances. (17) Upon compliance with subsection (5) of this section, accept from its members

accounts to be repaid upon such terms, not inconsistent with this act, as are approved

by the Commissioner of Banking and Insurance , by regulation or otherwise, provided that no account shall exceed the limitations

established by section 78 of P.L.1963, c. 144 ( C.17:12B-78 ), and provided further that no account shall be accepted or issued in the name of

any corporation, association or partnership or in the name of any individual for use

in trade or business. An association issuing such accounts may honor demands for withdrawal of such accounts

in the form of negotiable checks, drafts or orders in the form of electronic fund

transfers and may become a member of a clearing facility and satisfy reasonable conditions

required for its qualification and pay reasonable expenses therefor. Such accounts may be either interest-bearing or noninterest-bearing; provided,

however, that the payment of interest on such accounts be permitted by federal law. An association accepting accounts pursuant to this subsection shall, at all times,

maintain reserves against such accounts as shall be prescribed in regulations issued

by the commissioner in accordance with the “Administrative Procedure Act,” P.L.1968,

c. 410 ( C.52:14B-1 et seq. ) but such reserves shall be equal in nature and amount to those required of savings

banks in this State against similar accounts. Such reserves shall be maintained in cash or deposits in one or more reserve depositories

as authorized by the Commissioner of Banking and Insurance . Regulations of the commissioner may also provide that associations issuing such

type of accounts maintain a general reserve account, federal insurance reserve account

and undivided profits of specified minimum amounts and provide for minimum standards

of office facilities in connection therewith. An insured association may impose a reasonable service charge for providing and

maintaining such accounts for the benefit of its members. (18) Issue credit cards, extend credit in connection therewith, and otherwise engage

in or participate in credit card operations subject to such regulations as the commissioner

may prescribe. Any such regulations shall be in substantial conformity with similar rules and regulations

of the Office of Thrift Supervision . (19) (a) Apply to the commissioner for permission to act as trustee, executor, administrator,

guardian, or in any other fiduciary capacity in which federal savings and loan associations

doing business in this State are permitted to act. Associations exercising any or all of the powers enumerated in this section shall

segregate all assets held in any fiduciary capacity from the general assets of the

association and shall keep a separate set of books and records showing in proper detail

all transactions engaged in under authority of this section. No association shall receive in its trust department deposits of current funds subject

to check or the deposit of checks, drafts, bills of exchange, or other items for collection

or exchange purposes. Funds deposited or held in trust by the association awaiting investment shall be

carried in a separate account and shall not be used by the association in the conduct

of its business unless it shall first set aside in the trust department United States

bonds or other securities approved by the commissioner. In the event of the failure of such association, the owners of the funds held in

trust for investment shall have a lien on the bonds or other securities so set apart,

in addition to their claim against the estate of the association. Whenever the laws of this State require corporations acting in a fiduciary capacity

to deposit securities with the State authorities for the protection of private or

court trusts, associations so acting shall be required to make similar deposits and

securities so deposited shall be held for the protection of private or court trusts,

as provided by New Jersey law. Associations in such cases shall not be required to execute the bond usually required

of individuals if New Jersey corporations under similar circumstances are exempt from

this requirement. Associations shall have power to execute such bond when so required by the laws

of New Jersey. In any case in which the laws of this State require that a corporation acting as

trustee, executor, administrator, or in any capacity specified in this section shall

take an oath or make an affidavit, any officer, as defined in section 65 of P.L.1963,

c. 144 ( C.17:12B-65 ), of such association may take the necessary oath or execute the necessary affidavit. It shall be unlawful for any association to lend any officer, director, or employee

any funds held in trust under the powers conferred by this section. Any officer, director, or employee making such loan, or to whom such loan is made,

may be fined not more than $5,000.00, or imprisoned not more than five years, or may

be both fined and imprisoned, in the discretion of the court. In passing upon applications for permission to exercise the powers enumerated in

this section, the commissioner may take into consideration the amount of capital and

surplus of the applying association, whether or not such capital and surplus is sufficient

under the circumstances of the case, the needs of the community to be served, and

any other facts and circumstances that seem to him proper, and may grant or refuse

the application accordingly, except that approval shall not be granted to any association

having a capital and surplus less than the capital and surplus required by New Jersey

law of State banks, trust companies, and corporations exercising such powers. (b) Any association desiring to surrender its right to exercise the powers granted

under this section, in order to relieve itself of the necessity of complying with

the requirements of this section, or to have returned to it any securities which it

may have deposited with the State authorities for the protection of private or court

trusts, or for any other purpose, may file with the commissioner a certified copy

of a resolution of its board of directors signifying such desire. Upon receipt of such resolution, the commissioner, after satisfying himself that

such association has been relieved in accordance with State law of all duties as trustee,

executor, administrator, guardian or other fiduciary, under court, private or other

appointments previously accepted under authority of this section, may, in its discretion,

issue to such association a certificate certifying that such association is no longer

authorized to exercise the powers granted by this section. Upon the issuance of such a certificate by the commissioner, such association (i)

shall no longer be subject to the provisions of this section or the regulations of

the commissioner made pursuant thereto, (ii) shall be entitled to have returned to

it any securities which it may have deposited with the State authorities for the protection

of private or court trusts, and (iii) shall not exercise thereafter any of the powers

granted by this section without first applying for and obtaining approval to exercise

such powers pursuant to the provisions of this section. (c) The commissioner is authorized and empowered to promulgate such regulations as

he may deem necessary to enforce compliance with the provisions of this section and

the proper exercise of the trust powers granted by this section. Any such regulations shall be in substantial conformity with similar rules and regulations

of the Office of Thrift Supervision . (20) In accordance with rules and regulations promulgated by the commissioner, issue

and sell directly to subscribers or through underwriters mutual capital certificates. Such certificates shall constitute part of the general reserve and net worth of

the issuing association. Such certificates-- (a) Shall be subordinate to all savings accounts, savings certificates, and debt obligations; (b) Shall constitute a claim in liquidation on the general reserves, surplus, and

undivided profits of the association remaining after the payment in full of all savings

accounts, savings certificates, and debt obligations; (c) Shall be entitled to the payment of dividends; and (d) May have a fixed or variable dividend rate. The commissioner is authorized and empowered to promulgate such regulations as he

may deem necessary with respect to the powers granted by this section. Any such regulations shall be in substantial conformity with similar rules and regulations

of the Office of Thrift Supervision . The commissioner shall provide in his regulations for charging losses to the mutual

capital certificates, reserves, and other net worth accounts. (21) Notwithstanding the provisions of P.L.1963, c. 144 ( C.17:12B-1 et seq. ) or any other law, exercise those powers, rights, benefits or privileges now or hereafter

authorized for national or out-of-State banks or for federal or out-of-State savings

banks or savings associations either directly or through a financial subsidiary or

other subsidiary, to the same extent and subject to the same limitations as national

or out-of-State banks or federal or out-of-State savings banks or savings associations

may exercise those powers, rights, benefits or privileges, provided that before exercising

any power, right, benefit or privilege of any out-of-State bank or out-of-State savings

bank or savings association, the commissioner has adopted a regulation approving an

exercise of that power, right, benefit or privilege by State associations generally

or the State association provides notice to the commissioner and on a case by case

basis the commissioner either approves the activity or does not provide notice before

the expiration of 45 days that such power, right, benefit or privilege is not appropriate

for the State association on grounds of safety and soundness or on other grounds designated

by the commissioner by regulation. The commissioner shall have the authority to adopt rules and regulations pursuant

to this section, which rules and regulations shall have as their objective the placing

of State associations on a substantial competitive parity with national and out-of-State

banks and federal and out-of-State savings banks and savings associations. (22) 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 savings associations 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 savings

associations from exercising those powers or activities. (23) 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. 1

26 U.S.C.A. § 37 et seq. 2

29 U.S.C.A. § 1001 et seq.