New Jersey § 17:9a-26
Full text of New Jersey New Jersey Statutes § 17:9a-26, with citation guidance and answers to common questions.
§ 17:9a-26.
In addition to the powers specified in section 24, 1 every savings 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 receive money on deposit, to be repaid, upon such terms, not inconsistent with
this act, as may be agreed upon between the depositor and the savings bank, according
to the usual custom of savings banks; (2) To give security for deposits when required by the law of this State or of the
United States, or by the rules or orders of any court of this State, or of the United
States, or by regulations of any officer or agency of this State or of the United
States made pursuant to such law; provided, that, no savings 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; (3) To invest its deposits and its surplus in the manner provided by this act, or
otherwise by law provided; (4) To be a member of the Federal home loan bank organized in the district in which
the savings bank is located, and to subscribe for, purchase, hold, and surrender from
time to time such amounts of the stock of such Federal home loan bank as may be required
or as may be deemed advisable by such savings bank; to have and exercise all powers,
privileges and options which are by law conferred upon such members; to comply with
all requirements of Federal legislation and the rules and regulations lawfully promulgated
thereunder governing such membership as such legislation and such rules and regulations
may provide at the inception of such membership, and as the same may from time to
time thereafter be amended or supplemented; and to assume and discharge all liabilities
and obligations which may be required by reason of such membership; (5) To avail itself of the provisions of any Federal legislation providing for the
extension of any lawful banking activity provided in such legislation and made available
for participation by savings banks; except that the power by this paragraph conferred
shall not be exercised unless the commissioner shall make a general order authorizing
such participation by savings banks upon such terms and conditions as may in such
order be prescribed ; (6) 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, 2 as amended and supplemented, 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. Savings banks exercising the powers authorized by this subsection shall segregate
all funds held in such fiduciary capacities from the general assets of the savings
bank 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 a savings bank may be commingled for appropriate purposes of investment. No funds held in such fiduciary capacities shall be used by a savings bank in the
conduct of its business; however, such funds may be invested in savings accounts
of the savings bank in the event that the custodial, trust or other plan does not
prohibit such investment. In granting or refusing the savings bank'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. Application to and approval by the commissioner for authority to exercise the powers
provided in this subsection shall not be required as to a savings bank authorized
to exercise agency or fiduciary powers as a qualified bank ; and (7) To make commercial loans to the same extent as a bank may make commercial loans,
subject to all limitations imposed upon banks with respect to such liabilities by
Article 13 of P.L.1948, c. 67 ( C. 17:9A-60 et seq. ), except that the aggregate of all commercial loans outstanding may not exceed 10%
of a savings bank's total assets without the commissioner's approval. The commissioner, upon application of a savings bank and approval thereof by the
commissioner, may authorize a savings bank to make and have outstanding commercial
loans in an unlimited amount, or in a limited amount, but in excess of 10% the savings
bank's total assets. The commissioner shall issue regulations providing procedures for filing an application
for the commissioner's approval and defining terms such as “total assets” and “commercial
loans.” The commissioner shall, within 30 days of receipt of a completed application, approve
the application if he finds that the savings bank is being operated in a safe and
sound manner, and: (a) has capital equal to that required from time to time by the
Board of Governors of the Federal Reserve System for a bank chartered under the laws
of a state of the United States which is a member of the Federal Reserve System and
said capital shall be calculated in accordance with generally accepted accounting
principles as applied to banks; (b) is competently managed; and (c) demonstrates
satisfactory experience and sufficient expertise in making commercial loans. This power to make commercial loans shall apply only to savings banks and no other
person or institution shall exercise any power under this subsection by virtue of
any parity law or law authorizing such person or institution to make or invest in
investments authorized by savings banks. 1
N.J.S.A. § 17:9A-405. 2
26 U.S.C.A. §§ 401 to 405.
Frequently Asked Questions About New Jersey § 17:9a-26
What does New Jersey Statutes § 17:9a-26 cover?
Section 17:9a-26 is part of the New Jersey Statutes, the codified statutory law of New Jersey. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Jersey § 17:9a-26?
A common citation format is "New Jersey Statutes § 17:9a-26" (New Jersey). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 17:9a-26 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Jersey.