(A) A state bank may invest, in the aggregate, twenty-five per cent of its assets in the stock, obligations, and other securities of bank subsidiary corporations and bank service corporations.
(B) A state bank shall obtain the approval of the superintendent of financial institutions prior to investing in, acquiring, or establishing a bank subsidiary corporation or bank service corporation, or performing any new activities in a bank subsidiary corporation or bank service corporation.
(C)
(1) A bank subsidiary corporation that is a wholly owned subsidiary of the state bank may engage in any activities, except taking deposits, that are a part or an extension of the business of banking.
(2) A bank service corporation shall be owned solely by one or more banks, and may, at any location, do any of the following:
(a) Provide clerical, bookkeeping, accounting, statistical, or similar services;
(b) Engage in any activities, except taking deposits, that all of its owner banks are authorized to engage in;
(c) Engage in any activity, except taking deposits, the board of governors of the federal reserve system has determined to be permissible for a financial holding company under section 4(k)(1) of the "Bank Holding Company Act of 1956," as amended, 70 Stat. 133, 12 U.S.C.A. 1843(k)(1).
(D) Bank subsidiary corporations and bank service corporations are subject to examination and regulation by the superintendent.
(E) A bank subsidiary corporation or a bank service corporation may invest in a lower-tier bank subsidiary corporation or bank service corporation, subject to the requirements of this section.
Amended by 132nd General Assembly File No. TBD, HB 49, §130.21, eff. 1/1/2018.
Effective Date: 01-01-1997 .
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