TITLE XXXV
BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS
Chapter 384-F
THE NEW HAMPSHIRE INTERNATIONAL BANKING ACT
Section 384-F:1
384-F:1 Title and Purposes. –
I. This chapter shall be known and may be cited as the "New Hampshire International Banking Act."
II. This chapter is intended generally to provide for state regulation of the participation by foreign banks in the financial markets of this state.
III. Consistent with the federal International Banking Act, the Bank Holding Company Act, the Federal Deposit Insurance Act, and the Interstate Banking and Branching Efficiency Act, this chapter is intended specifically:
(a) To authorize banking activities and operations, under state licenses issued by the bank commissioner, of direct branch and agency offices in this state of foreign banks, generally under terms and conditions not less favorable than the terms and conditions under which such activities and operations may be conducted by federal branch or agency offices of foreign banks in the United States, and to set forth a statutory framework for the licensing, regulation, and supervision of such state-licensed offices of foreign banks by the bank commissioner to assure the safe and sound operation of such offices that are licensed under the laws of this state;
(b) To authorize representative offices in this state of foreign banks, and to set forth statutory provisions governing the licensing and supervision of such offices by the bank commissioner; and
(c) To ensure that the banking laws and regulations of this state otherwise apply to foreign banks, and to New Hampshire and out-of-state banks and bank holding companies that are owned or controlled by foreign banks, in a manner consistent with the laws and policies of the United States governing the operations in this country of foreign banks.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:2
384-F:2 Definitions. –
For purposes of this chapter:
I. "Bank" means any bank as defined in: section 2(c) of the Bank Holding Company Act (12 U.S.C. section 1841(c)); section 3(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. section 1813(a)(1)), other than a branch of a foreign bank; or, as the context may require in RSA 392. The term "bank" as used in this chapter shall not in any event include a foreign bank or a branch or agency of a foreign bank.
II. "Foreign bank" means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, that engages directly in the business of banking. The term includes foreign commercial banks, foreign merchant banks, and other foreign institutions that engage in banking activities usual in connection with the business of banking in the countries where such foreign institutions are organized or operating.
III. "Out-of-state bank" means a bank, the home state of which is a state other than New Hampshire.
IV. "Out-of-state foreign bank" means a foreign bank the home state of which is a state other than New Hampshire.
V. "New Hampshire state bank" means a bank organized under the laws of New Hampshire.
VI. "New Hampshire national bank" means a national banking association having its headquarters within New Hampshire.
VII. "New Hampshire bank" means a New Hampshire state bank or a New Hampshire national bank.
VIII. "Bank holding company", "subsidiary", and "affiliate", have the same meaning as set forth in section 2 of the Bank Holding Company Act (12 U.S.C. section 1841), the term "control" shall be construed consistently with the provisions of section 2(a)(2) of the Bank Holding Company Act (12 U.S.C. section 1841(a)(2)), and the term "depository institution" means any institution that is included for any purpose within the definitions of "insured depository institution" as set forth in sections 3(c)(2) and 3(c)(3) of the Federal Deposit Insurance Act (12 U.S.C. section 1813(c)(2) and (3)).
IX. "Out-of-state bank holding company" means a bank holding company, the home state of which is a state other than New Hampshire.
X. "State" has the same meaning as is set forth in section 3(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. section 1813(a)(3)).
XI. "Home state" has the same meaning in reference to national banks, state banks, and bank holding companies as is set forth in section 44(f)(4) of the Federal Deposit Insurance Act (12 U.S.C. section 1831u), and the same meaning in reference to foreign banks as is set forth in section 5(c) of the federal International Banking Act (12 U.S.C. section 3103(c)).
XII. "Foreign person" means a natural or juridical person who is a citizen or national of one or more countries (including any colonies, dependencies, or possessions of such countries) other than the United States.
XIII. "Branch," when used in reference to an office of a foreign bank, shall have the same meaning as set forth in section 1(b)(3) of the federal International Banking Act (12 U.S.C. section 3101(3)), and when used in reference to an office of a bank as defined in this section, shall have the same meaning as set forth in 3(o) of the Federal Deposit Insurance Act (12 U.S.C. section 1813(o)).
XIV. "Interstate branch" means a branch of a bank or a branch of a foreign bank, as the context may require, which is (or is to be) established after September 29, 1994, pursuant to the authority contained in the Interstate Banking and Branching Efficiency Act, outside the home state of the bank or foreign bank. In the case of a foreign bank, the term shall not include a limited branch.
XV. "Limited branch" means a branch of a foreign bank that accepts only such deposits as would be permissible for a corporation organized under section 25A of the Federal Reserve Act in accordance with the provisions of section 5(a)(7) of the federal International Banking Act (12 U.S.C. section 3103(a)(7)).
XVI. "Agency," when used in reference to an office of a foreign bank, shall have the same meaning as set forth in section 1(b)(1) of the federal International Banking Act (12 U.S.C. section 3101(1)).
XVII. "Federal branch" means a branch of a foreign bank that is licensed by the Comptroller of the Currency pursuant to the provisions of section 4 of the federal International Banking Act (12 U.S.C. section 3102).
XVIII. "Federal agency" means an agency of a foreign bank that is licensed by the Comptroller of the Currency pursuant to the provisions of section 4 of the federal International Banking Act (12 U.S.C. section 3102).
XIX. "New Hampshire state branch," when used in reference to an office of a foreign bank, shall mean a branch of a foreign bank that is located in this state and licensed pursuant to the provisions of this chapter.
XX. "New Hampshire state agency," when used in reference to an office of a foreign bank, shall mean an agency of a foreign bank that is located in this state and licensed pursuant to the provisions of this chapter.
XXI. "Representative office" shall have the same meaning as set forth in section 1(b)(15) of the federal International Banking Act (12 U.S.C. section 3101(15)), and the term "New Hampshire representative office" shall mean any such office that is located in this state.
XXII. "United States," when used in a geographical sense, means the several states, the District of Columbia, Puerto Rico, Guam, American Samoa, the American Virgin Islands, the Trust Territory of the Pacific Islands, and any other territory of the United States; and, when used in a political sense, means the federal government of the United States.
XXIII. "Bank Holding Company Act" means the federal Bank Holding Company Act of 1956, as amended (12 U.S.C. section 1841 et seq.).
XXIV. "Federal Deposit Insurance Act" means the Federal Deposit Insurance Act, as amended (12 U.S.C. section 1813 et seq.).
XXV. "Federal International Banking Act" means the federal International Banking Act of 1978, as amended (12 U.S.C. section 3101 et seq.).
XXVI. "Interstate Banking and Branching Efficiency Act" means the federal Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, Public Law No. 103-328, 108 Stat. 2338-2381 (September 29, 1994) (codified at various sections of 12 U.S.C.).
XXVII. "Commissioner" means the New Hampshire bank commissioner.
XXVIII. "Bank supervisory agency" means:
(a) The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and any successor to these agencies;
(b) Any agency of another state with primary responsibility for chartering and supervising banks; and
(c) Any agency of a country (including any colonies, dependencies, possessions, or political subdivisions thereof) other than the United States.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:3
384-F:3 General Rulemaking Authority. –
The commissioner is authorized and empowered to adopt rules, pursuant to RSA 541-A, and orders as the commissioner may deem necessary in order to perform his or her duties and functions under this chapter and to administer and carry out the provisions and purposes of this chapter and to prevent evasions thereof.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:4
384-F:4 Severability. –
If any provision of this chapter or the application of such provision is found by any court of competent jurisdiction in the United States to be invalid as to any bank, bank holding company, foreign bank, or other person or circumstances, or to be superseded by federal law, the remaining provisions hereof shall not be affected and shall continue to apply to any bank, bank holding company, foreign bank, or other person or circumstances.
Source. 1997, 236:1, eff. July 1, 1997.
Domestic Banks Owned or Controlled by Foreign Banks and Other Foreign Persons
Section 384-F:5
384-F:5 Purposes. –
This subdivision is generally intended to ensure that the laws and rules of this state applicable to the ownership and operations of New Hampshire banks, and interstate branches in this state of out-of-state banks do not discriminate against such banks that are owned or controlled by foreign banks or other foreign persons in a manner inconsistent with the provisions of section 3(d) of the Bank Holding Company Act (12 U.S.C. section 1842(d)), as amended effective September 29, 1995, by section 101 of the Interstate Banking and Branching Efficiency Act, or with other laws and policies of the United States.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:6
384-F:6 Operations in This State of Banks Owned or Controlled by Foreign Banks and Other Foreign Persons. –
I. Except as provided in paragraph II of this section:
(a) The laws and rules of this state governing the acquisition or ownership of controlling or other interests in New Hampshire banks or in out-of-state banks seeking to establish and maintain one or more interstate branches in this state shall not generally prohibit ownership of such institutions by, or otherwise discriminate against, foreign banks or other foreign persons, notwithstanding any provision of the laws or rules of this state to the contrary.
(b) The laws and rules of this state governing the powers and activities of New Hampshire banks and of out-of-state banks maintaining one or more interstate branches in this state shall not discriminate among such banks on the basis of their ownership or control by foreign banks or other foreign persons, notwithstanding any provision of the laws or rules of this state to the contrary.
II. Notwithstanding the provisions of paragraph I the commissioner is authorized to apply any standards or requirements of the laws and rules of this state governing the ownership, control or operations of New Hampshire banks, even if applicable specifically or exclusively to foreign banks or other foreign persons, to the extent such standards or requirements are determined by rule or order of the commissioner to be either:
(a) Substantially equivalent to or consistent with the standards or requirements governing the ownership, control or operations of New Hampshire banks by foreign banks or other foreign persons under applicable U.S. federal laws or regulations; or
(b) Otherwise consistent with the laws and policies of the United States, including its international agreements governing financial services.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:7
384-F:7 Citizenship and Residency Requirements for Directors of State Banks. –
Notwithstanding any other provision of the laws and rules of this state, the citizenship and residency requirements otherwise applicable to members of the board of directors of any New Hampshire bank may, in the case of a New Hampshire bank which is a subsidiary or affiliate of a foreign bank, be waived by the commissioner in his or her discretion upon application by the controlling shareholder of the New Hampshire bank; provided that at least a majority of the directors shall be citizens of the United States and at least a majority of the directors shall be residents of this state.
Source. 1997, 236:1, eff. July 1, 1997.
Direct Branch, Agency, and Representative Offices of Foreign Banks
Section 384-F:8
384-F:8 Short Title and Purposes. –
I. This subdivision shall be known and may be cited as the "New Hampshire Foreign Bank Office Act."
II. Consistent with the federal International Banking Act, the Bank Holding Company Act, the Federal Deposit Insurance Act, and the Interstate Banking and Branching Efficiency Act, this subdivision is intended:
(a) To authorize banking activities and operations, under state licenses issued by the commissioner, of direct branch and agency offices in this state of foreign banks, generally under terms and conditions not less favorable than the terms and conditions under which such activities and operations may be conducted by federal branch or agency offices of foreign banks in the United States, and to set forth a statutory framework for the licensing, regulation, and supervision of such state-licensed offices of foreign banks by the commissioner to assure the safe and sound operation of such offices that are licensed under the laws of this state; and
(b) To authorize representative offices in this state of foreign banks, and to set forth statutory provisions governing the licensing and supervision of such offices by the commissioner.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:9
384-F:9 Branches and Agencies of Foreign Banks; Necessity of Licensure. –
I. No foreign bank shall transact business in this state except at a New Hampshire state branch or New Hampshire state agency which it is licensed to establish and maintain pursuant to this chapter, and at which it conducts such activities as are permitted by this chapter.
II. Paragraph I shall not be deemed to prohibit:
(a) Any foreign bank which establishes and maintains a federal agency or federal branch in this state from transacting at such federal agency or federal branch such business as it may be authorized to transact under applicable federal laws and regulations;
(b) Any foreign bank which does not maintain a New Hampshire state branch or New Hampshire state agency from making in this state loans secured by liens on real or personal property located in this state or enforcing such loans in this state;
(c) Any foreign bank which does not maintain a New Hampshire branch or New Hampshire agency from transacting trust business in this state as long as the trust business is not conducted from an office or location in this state;
(d) Any foreign bank which maintains a New Hampshire branch or agency from transacting business as agent for an affiliated depository or other institution in accordance with provisions of this chapter; or
(e) Any foreign bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation, from establishing and operating an interstate branch in this state in its capacity as a "state bank" as defined in the Federal Deposit Insurance Act, pursuant to the authorities contained in that Act and in the laws of this state.
III. For purposes of paragraph I, no foreign bank shall be deemed to be transacting business in this state merely because a subsidiary or affiliate transacts business in this state, including business that any depository institution, subsidiary, or affiliate may lawfully conduct in this state as an agent for the foreign bank in accordance with and to the extent authorized by the laws of this state and applicable rules, regulations, or orders of the commissioner.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:10
384-F:10 Application to Establish and Maintain a Branch or Agency; Contents. –
A foreign bank, in order to procure a license under this chapter to establish and maintain a New Hampshire state branch or New Hampshire state agency shall submit an application to the commissioner, in a form prescribed by the commissioner in rules adopted pursuant to RSA 541-A. Such application shall contain:
I. The same information as required by the Board of Governors of the Federal Reserve System for an application to establish a branch or agency, as the case may be, in the United States;
II. An instrument irrevocably appointing the commissioner or his or her successors in office to be such foreign bank's agent, representative, and attorney to receive service of any lawful judicial and administrative process in accordance with RSA 384-F:24; and
III. Such additional information as the commissioner may require by rules, adopted pursuant to RSA 541-A, or order.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:11
384-F:11 Application to Establish and Maintain a Branch or Agency; Manner of Filing and Determination. –
I. A foreign bank making an application under this chapter for a license to establish and maintain a New Hampshire state branch or New Hampshire state agency shall deliver to the commissioner:
(a) At least 2 duplicate originals of the foreign bank's application; and
(b) At least 2 copies of its charter or articles of incorporation and all amendments thereto, duly authenticated by the proper officer of the country of such foreign bank's organization.
II. The commissioner shall issue a license to a foreign bank to establish and maintain a New Hampshire state branch or New Hampshire state agency if he or she finds:
(a) That the foreign bank is of good character and sound financial standing;
(b) That the management of the foreign bank and the proposed management of the New Hampshire state branch or New Hampshire state agency are adequate;
(c) That the convenience and needs of persons to be served by the proposed New Hampshire state branch or New Hampshire state agency will be promoted; and
(d) That the foreign bank satisfies such other standards as the commissioner may establish in rules adopted pursuant to RSA 541-A.
III. If the commissioner determines to issue a license to a foreign bank to establish and maintain a New Hampshire state branch or New Hampshire state agency, he or she shall, when all fees have been paid as required under this chapter:
(a) Endorse on each application the date of the filing thereof;
(b) File in his or her office one of such duplicate originals of the application and copies of the charter or articles of incorporation and amendments thereto; and
(c) Issue a license to establish and maintain a New Hampshire state branch or New Hampshire state agency to such foreign bank.
A duplicate original of the license issued by the commissioner, along with a certified copy of the foreign bank's charter or articles of incorporation and amendments thereto shall be filed with the New Hampshire secretary of state before such branch or agency shall commence business in the state of New Hampshire. A copy of any certificate or similar document issued by the secretary of state in connection with such filing shall be forthwith filed with the commissioner.
IV. Each license issued to a foreign bank to establish and maintain a New Hampshire state branch or New Hampshire state agency shall state fully the name of the foreign bank to which such license is issued, and all such other information as the commissioner may require by rule or order.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:12
384-F:12 Application Fee. –
Upon applying to the commissioner under this chapter for a license to establish and maintain a New Hampshire state branch or New Hampshire state agency, a foreign bank shall pay to the commissioner an application fee of $1,500 for each branch or agency.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:13
384-F:13 No Concurrent Maintenance of Federal Branches or Agencies. –
I. No foreign bank which is licensed under this chapter to establish and maintain a New Hampshire state branch or New Hampshire state agency shall concurrently maintain a federal branch or federal agency in this state.
II. No foreign bank which maintains a federal branch or federal agency in this state shall concurrently be licensed under this chapter to maintain a New Hampshire state branch or New Hampshire state agency.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:14
384-F:14 Powers of Branch and Agency. –
I. Except as otherwise specifically provided in this subdivision or in rules or orders adopted by the commissioner, and notwithstanding any other law or rule of this state to the contrary, operations of a foreign bank at a New Hampshire state branch or New Hampshire state agency shall be conducted with the same rights, privileges, and powers as a New Hampshire state bank at the same location, including but not limited to, the eligibility to exercise fiduciary or trust powers, and shall be subject to all the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply under the laws of this state to a New Hampshire state bank doing business at the same location.
II. Among other exceptions to the provisions of paragraph I that may be required or authorized by the commissioner pursuant to the provisions of this subdivision:
(a) A New Hampshire state branch that was not grandfathered as an "insured branch" within the meaning of section 6(c)(2) of the federal International Banking Act (12 U.S.C. section 3104(c)(2)) may not accept, from citizens or residents of the United States, deposits (other than credit balances that are incidental to or arise out of its exercise of other lawful banking powers) of less than $100,000, except to the extent that such deposits are determined by the Federal Deposit Insurance Corporation not to constitute "domestic retail deposit activities requiring deposit insurance protection" within the meaning of section 6 of the federal International Banking Act (12 U.S.C. section 3104);
(b) A New Hampshire state agency may not accept any deposits from citizens or residents of the United States (other than credit balances that are incidental to or arise out of its exercise of other lawful banking powers), but it may accept deposits from persons who are neither citizens nor residents of the United States;
(c) A New Hampshire state branch or New Hampshire state agency shall not be required to maintain federal or state deposit insurance under any law, rule, or order of this state that requires New Hampshire state banks and other depository institutions to maintain such deposit insurance, and the commissioner may, by rule or order, exclude or exempt uninsured New Hampshire state branches and New Hampshire agencies from, or otherwise modify the applicability to uninsured New Hampshire state branches and New Hampshire agencies of, any law or rule of this state that is generally applicable to insured New Hampshire state banks, or that would otherwise be applicable to an insured New Hampshire state bank doing business at the same location, as the commissioner may deem necessary or desirable, taking into account applicable limitations on the retail deposit-taking powers and privileges of New Hampshire state branches and New Hampshire agencies;
(d) Any limitation or restriction based on the capital stock and surplus of a New Hampshire state bank shall be deemed to refer, as applied to a New Hampshire state branch or New Hampshire state agency, to the dollar equivalent of the capital stock and surplus of the foreign bank, and if the foreign bank has more than one New Hampshire state branch or New Hampshire state agency in this state, the business transacted by all such New Hampshire state branches and New Hampshire state agencies shall be aggregated in determining compliance with the limitation; and
(e) The commissioner is expressly authorized to adopt such additional or modify the applicability of any existing standards, conditions, or requirements, by rule or order, as he or she may deem necessary to ensure the safety and soundness and the protection of creditors of the operations of branches and agencies of foreign banks in this state.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:15
384-F:15 Fiduciary Activities. –
I. No foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency shall engage in fiduciary activities at such office unless such foreign bank shall have first obtained a certificate of authority from the commissioner to engage in fiduciary activities at such office.
II. An application to obtain a certificate of authority to engage in fiduciary activities shall be in such form and contain such information as the commissioner requires by rules adopted pursuant to RSA 541-A, and shall be accompanied by an application fee of $1,500. The commissioner shall issue a certificate of authority to engage in fiduciary activities to a foreign bank making an application under this section if he or she finds that such foreign bank will exercise fiduciary powers in accordance with the laws and rules of this state.
III. A foreign bank which holds a certificate of authority issued under this section may engage at its New Hampshire state branch or New Hampshire state agency in fiduciary activities to the same extent and in the same manner as if such foreign bank were a New Hampshire state bank.
IV. A foreign bank which holds a certificate of authority issued under this section shall file all such reports, pay all fees in accordance with the requirements of RSA 384-F:30, and be subject to examination and supervision as the commissioner may determine by rules adopted pursuant to RSA 541-A.
V. The commissioner may suspend or revoke a certificate to engage in fiduciary activities issued under this section if he or she finds:
(a) That conditions exist which would authorize the commissioner under this chapter to revoke or suspend such foreign bank's license to establish and maintain a New Hampshire state branch or New Hampshire state agency; or
(b) Any fact or condition exists which, if it had existed at the time of the foreign bank's original application to obtain a certificate of authority to engage in fiduciary activities, would have resulted in the commissioner refusing to issue such certificate of authority to the foreign bank.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:16
384-F:16 Authority to Act as Agent. –
I. A New Hampshire state branch or New Hampshire state agency of a foreign bank licensed under this chapter may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations as an agent for any depository institution affiliate of such foreign bank, including branch, agency, and other offices of the same foreign bank located in other states, generally in accordance with the same terms, conditions, procedures, and requirements that are applicable under the laws and rules of this state to such agency activities that may be conducted by New Hampshire state banks.
II. Notwithstanding any other provision of the laws or rules of this state, a New Hampshire state branch or New Hampshire state agency of a foreign bank acting in this state as an agent in accordance with the provisions of this section shall not be considered to be a branch of some other depository institution affiliate; provided, however, that no New Hampshire state branch or New Hampshire state agency shall be authorized by this section to act as agent for a branch or agency of an affiliated foreign bank other than the foreign bank which has been licensed to transact business in this state pursuant to this chapter.
III. A New Hampshire state branch or New Hampshire state agency of a foreign bank licensed under this chapter may not:
(a) Conduct any activity as an agent under this section which such office is prohibited from conducting as a principal under any applicable federal or state law, including but not limited to the acceptance of impermissible deposits; or
(b) As a principal, have an agent conduct any activity under this section which such office is prohibited from conducting under any applicable federal or state law, including but not limited to, the acceptance of impermissible deposits.
IV. An agency relationship between a New Hampshire state branch or New Hampshire state agency of a foreign bank licensed under this chapter and a depository institution affiliate or other affiliate of such foreign bank shall in any event be on terms that are consistent with safe and sound banking practices and all applicable rules and orders of the commissioner.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:17
384-F:17 Representative Office of Foreign Banks; Necessity of Licensure. –
I. No foreign bank shall establish or maintain a New Hampshire state representative office unless such foreign bank is licensed by the commissioner to maintain such a New Hampshire representative office.
II. Nothing in paragraph I shall be deemed to prohibit a foreign bank which maintains a federal agency or federal branch in this state from establishing or maintaining one or more New Hampshire representative offices.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:18
384-F:18 Representative Office; Application. –
I. The application for a license to establish and maintain a New Hampshire representative office shall be in writing under oath and shall be in such form and contain such information as the commissioner may require by rule, adopted pursuant to RSA 541-A, or order. The application shall be accompanied by an application fee of $1,500.
II. Each application to establish and maintain a New Hampshire representative office shall include an instrument irrevocably appointing the commissioner or his or her successors in office to be such foreign bank's agent, representative, and attorney to receive service of any lawful judicial and administrative process in accordance with RSA 384-F:24.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:19
384-F:19 Representative Office; Factors for Approval of Application. –
I. A foreign bank making an application for a license to establish and maintain a New Hampshire representative office shall deliver to the commissioner 2 duplicate originals of the foreign bank's application.
II. The commissioner shall issue a license to a foreign bank to establish and maintain a New Hampshire representative office if he or she finds:
(a) That the foreign bank is of good character and sound financial standing;
(b) That the management of the foreign bank and the proposed management of the New Hampshire representative office are adequate; and
(c) That the convenience and needs of persons to be served by the proposed New Hampshire representative office will be promoted.
III. If the commissioner determines to issue a license to a foreign bank to establish and maintain a New Hampshire representative office, he or she shall, when all fees have been paid as required under this chapter:
(a) Endorse on each application the date of the filing thereof;
(b) File in his or her office one of such duplicate originals of the application; and
(c) Issue a license to establish and maintain a New Hampshire representative office to such foreign bank.
A duplicate original of the license issued by the commissioner, along with a certified copy of the foreign bank's charter or articles of incorporation and amendments thereto shall be filed with the New Hampshire secretary of state before such representative office shall commence business in the state of New Hampshire. A copy of any certificate or similar document issued by the secretary of state in connection with such filing shall be forthwith filed with the commissioner.
IV. Each license issued to a foreign bank to establish and maintain a New Hampshire representative office shall state fully the name of the foreign bank to which such license is issued, the address or addresses at which such New Hampshire representative office is to be located and all such other information as the commissioner may require under rules adopted pursuant to RSA 541-A.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:20
384-F:20 Representative Office; Permissible Activities. –
I. A foreign bank which is licensed to establish and maintain a New Hampshire representative office may, subject to such rules as the commissioner may adopt pursuant to RSA 541-A, engage in the following activities:
(a) Solicitation for loans and in connection therewith the assembly of credit information, making of property inspections and appraisals, securing of title information, preparation of applications for loans including making recommendations with respect to action thereon, solicitation of investors to purchase loans from the foreign bank, and the search for such investors to contract with the foreign bank for servicing of such loans;
(b) The solicitation of new business;
(c) The conduct of research; and
(d) Back office administrative functions as may be more specifically defined in rules adopted by the commissioner under RSA 541-A.
Any other activity which the foreign bank seeks to conduct at such office shall be subject to the prior written approval of the commissioner by general rule or upon application in such form as the commissioner shall require by rules adopted pursuant to RSA 541-A or order.
II. Notwithstanding paragraph I, a New Hampshire representative office that is a regional administrative office of the foreign bank, as may be defined more fully by the commissioner in rules and orders, may engage in credit approval activities provided that the foreign bank (i) gives 45 days prior written notice to the commissioner; and (ii) the commissioner does not object within such 45 day period to the conduct of such activities by the New Hampshire representative office. Written notice under this paragraph shall be in such form and contain such information as the commissioner shall require by rule or order.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:21
384-F:21 Representative Office; Revocation of License. –
The commissioner, after notice and opportunity for a hearing, may revoke a license to establish and maintain a New Hampshire representative office if he or she finds:
I. The foreign bank has violated any provision of this chapter or any other law or rule of this state; or
II. Any fact or condition exists which, if it had existed at the time of the foreign bank's original application for such license, would have resulted in the commissioner refusing to issue such license to the foreign bank.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:22
384-F:22 Posting of License. –
Each foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall post its license in a conspicuous place at such office.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:23
384-F:23 Licenses Not Transferable. –
No license issued by the commissioner in accordance with this chapter shall be transferable or assignable.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:24
384-F:24 Appointment of Commissioner as Agent for Service of Process. –
I. A foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall file with the commissioner an instrument irrevocably appointing the commissioner and his or her successors in office to be such foreign bank's agent, representative, and attorney to receive service of any lawful process in any judicial or administrative proceeding against the foreign bank or any of its successors which arises out of the foreign bank's activities in this state after such appointment has been filed, with the same force and validity as if served directly on the foreign bank or its successor, as the case may be. Such appointment shall be in such form and contain such information as the commissioner may require by rules adopted pursuant to RSA 541-A or order.
II. Any foreign bank which establishes a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office and which has not filed with the commissioner an instrument pursuant to paragraph I of this section shall be deemed by the establishment of such office to have appointed the commissioner as its agent, representative, and attorney to receive service of any lawful process in any judicial or administrative proceeding against the foreign bank or any of its successors which arises out of the foreign bank's activities in this state, with the same force and validity as if served directly on the foreign bank or its successor, as the case may be.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:25
384-F:25 Service of Process. –
I. Service of any lawful process in any judicial or administrative proceeding against the foreign bank or any of its successors which arises out of the foreign bank's activities in this state shall be made on the commissioner by delivering to and leaving with him or her, or with any official having charge of his or her office, duplicate copies of such process, notice, or demand. If any process, notice, or demand is served on the commissioner, he or she shall immediately cause a copy thereof to be forwarded by registered mail addressed to such foreign bank at its principal office as the same appears in his or her records. Any service so had on the commissioner shall be returnable in not less than 30 days.
II. Nothing in this chapter limits or affects the right to serve any process, notice, or demand required or permitted by law to be served upon a foreign corporation in any other manner now or hereafter permitted by law.
III. The commissioner shall keep a record of all processes, notices, and demands served upon him or her under this section and shall record therein the time of such service and his or her action with reference thereto.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:26
384-F:26 Filing of Amendments to Articles of Incorporation. –
A foreign bank which is licensed to maintain a New Hampshire state branch or New Hampshire state agency, whenever its articles of incorporation are amended, shall forthwith file with the commissioner a copy of such amendment duly authenticated by the proper officer of the country of such foreign bank's organization, but the filing thereof may not of itself enlarge or alter the purpose or purposes which such foreign bank is authorized to pursue in the transaction of its business in this state, nor authorize such foreign bank to transact business in this state under any name other than the name set forth in its license, nor extend the duration of its corporate existence.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:27
384-F:27 Amended License to Establish and Maintain a Branch or Agency. –
I. A foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency must secure an amended license if it changes its corporate name, changes the duration of its corporate existence, or desires to pursue in this state other or additional purposes than those set forth in its prior application under this chapter for a license, by making application therefor to the commissioner.
II. The requirements with respect to the form and contents of an application under paragraph I, the manner of its execution, the filing of duplicate originals thereof with the commissioner, the issuance of an amended license, the application fees, and the effect thereof shall be the same as in the case of an initial application for a license to establish and maintain a New Hampshire state branch or New Hampshire state agency.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:28
384-F:28 Change of Control of Foreign Bank. –
A foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall file with the commissioner a notice, in such form and containing such information as the commissioner may prescribe by rules adopted under RSA 541-A no later than 14 calendar days after such foreign bank becomes aware of any acquisition of control of such foreign bank or merger with another foreign bank.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:29
384-F:29 Relocation of Office; Written Notice Necessary. –
I. No foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall relocate any such office unless the foreign bank provides prior written notice to the commissioner and the commissioner has approved such relocation.
II. Written notice provided by a foreign bank under this section shall be in such form and contain such information as the commissioner shall require by rules, adopted pursuant to RSA 541-A, or order.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:30
384-F:30 Examination; Payment of Fees. –
I. A New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall be subject to examination by the commissioner at such intervals and in such a manner as he or she shall establish by rule or order.
II. In conducting an examination pursuant to this section, the commissioner shall:
(a) Have full access to the offices, books, accounts, and records of each office located in this state as well as all of the books, accounts, and records maintained in this state of any office not located in this state of such foreign bank; and
(b) Have authority to require the attendance of and to examine under oath all persons whose testimony may be required relative to the activities of such office.
III. A foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall be assessed an examination fee for the expenses incurred by the commissioner in making an examination of such office. The amount of the examination fee and the procedure for payment shall be the same as that prescribed for the cost of examinations under RSA 383:11.
IV. A foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall be subject to all other fees and expenses to the same extent and in like amounts as such fees and expenses are payable by a New Hampshire bank or out-of-state bank under applicable New Hampshire law.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:31
384-F:31 Supervision and Enforcement. –
I. The commissioner shall have all of the powers granted to him or her by the laws of this state to the extent appropriate to enable him or her to supervise each New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office.
II. If, after notice and a hearing, the commissioner finds that any person has violated any provision of this chapter or of any rule adopted or order issued under this chapter, he or she may, in addition to any other remedy or action available to the commissioner under the laws of this state, order such person to pay to the commissioner a civil penalty in such a manner and in such an amount as the commissioner shall determine in accordance with the laws of this state and rules thereunder.
III. In order to carry out the purposes under this chapter, the commissioner may:
(a) Enter into cooperative, coordinating, or information-sharing agreements with any other bank supervisory agency or any organization affiliated with or representing one or more bank supervisory agencies;
(b) With respect to periodic examination or other supervision of a foreign bank that maintains a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office, accept reports of examinations performed by, and reports submitted to, other bank supervisory agencies in lieu of conducting examinations, or of receiving reports, as might otherwise be required under this subdivision;
(c) Enter into joint examination or joint enforcement actions with any other bank supervisory agency having concurrent jurisdiction over any foreign bank, provided, however, that the commissioner may at any time take any such actions independently if the commissioner determines that such actions are necessary or appropriate to carry out his or her responsibilities under this chapter and to ensure compliance with the laws of this state;
(d) Enter into contracts with any bank supervisory agency having concurrent regulatory or supervisory jurisdiction over a foreign bank maintaining a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office, to engage the services of such agency's examiners at a reasonable rate of compensation or provide the services of the commissioner's examiners at a reasonable rate of compensation, provided, that any such contract shall be deemed a sole source contract under state laws; and
(e) Assess supervisory and examination fees that shall be payable by foreign banks maintaining a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office in connection with the commissioner's performance of his or her duties under this chapter and in accordance with RSA 383:11 or other applicable law.
IV. Supervisory or examination fees assessed by the commissioner in accordance with the provisions of this chapter may be shared with other bank supervisory agencies or any organizations affiliated with or representing one or more bank supervisory agencies in accordance with agreements between the commissioner and such agencies or organizations.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:32
384-F:32 Reports. –
I. Each foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall file with the commissioner such reports as and when the commissioner may require by rules, adopted pursuant to RSA 541-A, or order.
II. Each report filed with the commissioner under this chapter or under any rule adopted or order issued under this chapter shall be in such form and contain such information, shall be signed in such manner, and shall be verified in such manner, as the commissioner may require by rules, adopted under RSA 541-A, or order.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:33
384-F:33 Confidentiality of Examination Reports. –
The confidentiality provisions of RSA 383:10-b shall apply to reports of examinations under this chapter.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:34
384-F:34 Books, Accounts, and Records. –
Each foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall maintain or make available at any such office appropriate books, accounts, and records reflecting all transactions effected by or on behalf of such office and all actions taken in this state by employees of the foreign banking corporation located in this state to effect transactions on behalf of any office of such foreign bank located outside this state.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:35
384-F:35 Separate Assets. –
I. Each foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency in this state shall keep the assets of its business in this state separate and apart from the assets of its business outside this state.
II. The creditors of a foreign bank arising out of transactions with, and recorded on the books of, its New Hampshire state branch or New Hampshire state agency shall be entitled to absolute preference and priority over the creditors of such foreign bank's offices located outside this state with respect to the assets of such foreign bank in this state.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:36
384-F:36 Disclosure of Lack of Deposit Insurance. –
Each foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency shall, in a manner established by the commissioner by rules, adopted pursuant to RSA 541-A, or order, give notice that deposits and credit balances in such office are not insured by the Federal Deposit Insurance Corporation.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:37
384-F:37 Limitations on Payment of Interest on Deposits. –
A foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency shall be subject to the same limitations with respect to the payment of interest on deposits as a state bank which is a member of the Federal Reserve System.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:38
384-F:38 Pledge of Assets. –
I. Each foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency shall keep on deposit, in accordance with such rules or orders as the commissioner shall adopt, with such unaffiliated New Hampshire banks as such foreign bank may designate and the commissioner may approve, interest-bearing stocks and bonds, notes, debentures, or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States, or of this state, or of a city, county, town, village, school district, or instrumentality of this state or guaranteed by this state, or dollar deposits, or obligations of the International Bank for Reconstruction and Development, or obligations issued by the InterAmerican Development Bank, or obligations of the Asian Development Bank, or obligations issued by the African Development Bank, or such other assets as the commissioner shall by rule or order permit, to an aggregate amount to be determined by the commissioner, based upon principal amount or market value, whichever is lower, in the case of the above-described securities, and subject to such limitations as he or she shall prescribe.
II. The commissioner may from time to time require that the assets deposited pursuant to this section may be maintained by the foreign bank in such amount, in such form and subject to such conditions as he or she shall deem necessary or desirable for the maintenance of a sound financial condition, the protection of depositors, and the public interest, and to maintain public confidence in the business of such New Hampshire state branch or New Hampshire state agency. The commissioner may give credit to reserves required to be maintained with a federal reserve bank in or outside this state pursuant to federal law, in accordance with such rules as the commissioner may adopt pursuant to RSA 541-A.
III. So long as it shall continue business in the ordinary course, such foreign bank shall be permitted to collect interest on the securities deposited under this section and from time to time exchange, examine, and compare such securities under such conditions as the commissioner may require.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:39
384-F:39 Asset Maintenance. –
I. Each foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency shall hold in this state currency, bonds, notes, debentures, drafts, bills of exchange, or other evidences of indebtedness, including loan participation agreements or certificates, or other obligations payable in the United States or in United States funds or, with the prior approval of the commissioner, in funds freely convertible into United States funds, or such other assets as the commissioner shall by rules, adopted pursuant to RSA 541-A, or order permit, in an amount which shall bear such relationship as the commissioner shall by rules, adopted pursuant to RSA 541-A, or order prescribe to liabilities of such foreign bank appearing in the books, accounts, or records of its New Hampshire state branch or New Hampshire state agency, including acceptances, but excluding amounts due and other liabilities to other offices, agencies, or branches of, and wholly owned (except for a nominal number of directors' shares) subsidiaries of, such foreign bank and such other liabilities as the commissioner shall determine.
II. The commissioner is specifically authorized, in implementing the provisions of this section, to vary the ratio of assets to liabilities for New Hampshire state branches or New Hampshire state agencies, applicable under this section, of certain foreign banks as may be determined by the commissioner in his or her sole discretion to be necessary or desirable to reflect differences among such New Hampshire state branches or New Hampshire state agencies on account of:
(a) The financial condition of New Hampshire state branch or branches or New Hampshire state agency office or offices of the foreign bank;
(b) The financial condition of branch or agency offices of the same foreign bank located in other states;
(c) General economic conditions prevalent in the home country of the parent foreign bank; or
(d) The financial condition of the parent foreign bank itself, including but not limited to:
(1) The financial condition of its branches and agencies located in other countries;
(2) The financial condition of its affiliated bank and nonbank subsidiaries in the United States or other country or countries;
(3) The financial condition of the foreign bank on a worldwide consolidated basis or in its home country.
III. For the purposes of this section, the commissioner shall, under rules adopted pursuant to RSA 541-A, value marketable securities at principal amount or market value, whichever is lower, shall have the right to determine the value of any non-marketable bond, note, debenture, draft, bill of exchange, other evidence of indebtedness, including loan participation agreements or certificates, or of any other asset or obligation held by or owed to the foreign bank or its New Hampshire state branch or New Hampshire state agency in this state, and in determining the amount of assets for the purpose of computing the above ratio of assets to liabilities, shall have the power by rule or order to exclude in whole or in part any particular asset.
IV. If, by reason of the existence or the potential occurrence of unusual and extraordinary circumstances, the commissioner deems it necessary or desirable for the maintenance of a sound financial condition, for the protection of depositors, creditors, and the public interest, and to maintain public confidence in the business of a New Hampshire state branch or a New Hampshire state agency, he or she may, subject to such terms and conditions as he or she may prescribe, require such foreign bank to deposit the assets required to be held in this state pursuant to this section with such New Hampshire banks as the commissioner may designate.
V. The assets held to satisfy the assets to liabilities relationship, prescribed by the commissioner pursuant to this section, shall include obligations of any person for money borrowed from a foreign bank holding a license to establish and maintain a New Hampshire state branch or New Hampshire state agency only to the extent that the total of such obligations of any person are not more than 10 percent of such assets considered for purposes of this section.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:40
384-F:40 Voluntary Closure of Branch, Agency, or Representative Office; Application. –
I. No foreign bank which is licensed to establish and maintain a New Hampshire state branch, New Hampshire state agency, or New Hampshire representative office shall close such branch, agency, or office without filing an application with and obtaining the prior approval of the commissioner. An application by a foreign bank under this section shall be in such form and include such information as the commissioner shall establish by rules adopted pursuant to RSA 541-A or by order.
II. If the commissioner finds, with respect to an application by a foreign bank under this section, that the closing of such branch, agency, or office will not be substantially detrimental to the public convenience and advantage, the commissioner shall approve such application and may impose such conditions precedent and subsequent to such approval as the commissioner may deem prudent or necessary. If the commissioner finds otherwise, he or she shall deny the application.
III. Whenever an application by a foreign bank under this section has been approved and all conditions precedent to such closing have been fulfilled, such foreign bank may close such branch, agency, or office and shall promptly thereafter surrender to the commissioner the license which authorized the foreign bank to maintain the office.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:41
384-F:41 Suspension or Revocation of License; Factors. –
If, after notice and a hearing, the commissioner finds any of the following with respect to a foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency, he or she may issue an order suspending or revoking the license of such foreign bank:
I. That the foreign bank has violated any provision of this chapter or of any rule or order issued under this chapter or any provision of any other applicable law, rule, regulation, or order.
II. That the foreign bank is transacting activities in this state in an unsafe or unsound manner or, in any case, is transacting activities elsewhere in an unsafe or unsound manner.
III. That the foreign bank or any one or more of its New Hampshire state branches or New Hampshire state agencies is in an unsafe or unsound condition.
IV. That the foreign bank has ceased to operate any of its offices in this state without the prior approval of the commissioner in accordance with this chapter.
V. That the foreign bank is insolvent in that it has ceased to pay its debts in the ordinary course of business, it cannot pay its debts as they become due, or its liabilities exceed its assets.
VI. That the foreign bank has suspended payment of its obligations, has made an assignment for the benefit of its creditors, or has admitted in writing its inability to pay its debts as they become due.
VII. That the foreign bank has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any foreign or domestic bankruptcy, reorganization, insolvency, or moratorium law, or that any person has applied for any such relief under such law against the foreign bank and the foreign bank has by any affirmative act approved of or consented to such action or such relief has been granted.
VIII. That a receiver, liquidator, or conservator has been appointed for the foreign bank or that any proceeding for such an appointment or any similar proceeding has been initiated in the country of the foreign bank's organization.
IX. That the existence of the foreign bank or the authority of the foreign bank to transact banking business under the laws of the country of the foreign bank's organization has been suspended or terminated.
X. That any fact or condition exists which, if it had existed at the time when the foreign bank applied for its license to transact business in this state, would have been grounds for denying such application.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:42
384-F:42 Immediate Suspension or Revocation. –
If the commissioner finds that any of the factors set forth in RSA 384-F:41 are true with respect to any foreign bank which is licensed to maintain a New Hampshire state branch or New Hampshire state agency and that it is necessary for the protection of the interests of creditors of the foreign bank's business in this state or, in any case, for the protection of the public interest that the commissioner immediately suspend or revoke the license of the foreign bank, the commissioner may issue, without notice and hearing, an order suspending or revoking the license of the foreign bank for a period of up to 90 days, pending investigation or hearing.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:43
384-F:43 Seizure of Foreign Bank's Property and Business; Liquidation. –
I. If the commissioner finds that any of the factors set forth in RSA 384-F:41 are true with respect to any foreign bank which is licensed to establish and maintain a New Hampshire state branch or New Hampshire state agency and that it is necessary for the protection of the interests of the creditors of such foreign bank's business in this state or for the protection of the public interest that he or she take immediate possession of the property and business of the foreign bank, the commissioner may by order forthwith take possession of the property and business of the foreign bank in this state and retain possession until the foreign bank resumes business in this state or is finally liquidated. The foreign bank may, with the consent of the commissioner, resume business in this state upon such conditions as the commissioner may prescribe under rules adopted pursuant to RSA 541-A, or by order.
II. At any time within 10 days after the commissioner has taken possession of the property and business of a foreign bank pursuant to paragraph I, such foreign bank may apply to the court of county in which the primary office of the foreign bank is located in this state for an order requiring the commissioner to show cause why he or she should not be enjoined from continuing such possession. The court may, upon good cause being shown, direct the commissioner to refrain from further proceedings and to surrender such possession. The judgment of the court having jurisdiction over any proceedings under this paragraph may be appealed by the commissioner or by the foreign bank in the manner provided by law for appeals from a judgment of a county court. Where the commissioner appeals the judgment of a county court, such appeal shall operate as a stay of the judgment and a reinstatement of the commissioner's possession. The commissioner shall not be required to post any bond.
III. Whenever the commissioner takes possession of the property and business of a foreign bank pursuant to paragraph I, he or she shall conserve or liquidate the property and business of such foreign bank pursuant to the laws of this state as if the foreign bank were a New Hampshire state bank, with absolute preference and priority given to the creditors of such foreign bank arising out of transactions with, and recorded on the books of, its New Hampshire state branch or New Hampshire state agency over the creditors of such foreign bank's offices located outside this state.
IV. When the commissioner has completed the liquidation of the property and business of a foreign bank, the commissioner shall transfer any remaining assets to such foreign bank in accordance with such orders as the court may issue. However, in case the foreign bank has an office in another state of the United States which is in liquidation and the assets of such office appear to be insufficient to pay in full the creditors of that office, the court shall order the commissioner to transfer to the liquidator of that office such amount of any such remaining assets as appears to be necessary to cover such insufficiency; if there are 2 or more such offices and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to the offices, the court shall order the commissioner to distribute the remaining assets among the liquidators of such offices in such manner as the court finds equitable.
V. As an alternative to the procedures set forth in paragraphs I-IV of this section, the commissioner may follow the procedures for liquidation in RSA 395.
Source. 1997, 236:1, eff. July 1, 1997.
New Hampshire Branches of Out-of-State Foreign Banks
Section 384-F:44
384-F:44 Purposes. –
This subdivision is intended generally to ensure that interstate New Hampshire state branches of out-of-state foreign banks may be established and operated in this state:
I. To the extent consistent with the provisions of section 5 of the federal International Banking Act; and
II. Under terms and conditions that are generally comparable to and no less favorable than those applicable to the establishment of interstate federal branches in this state by out-of-state foreign banks.
Source. 1997, 236:1, eff. July 1, 1997.
Section 384-F:45
384-F:45 Establishment of Interstate Branches in This State by Out-of-State Foreign Banks. –
I. Except as provided in paragraph II of this section, an out-of-state foreign bank may establish an interstate New Hampshire state branch in the same manner (including by merger or other transactions under section 44 of the Federal Deposit Insurance Act, and comparable provisions of the laws of this state, with New Hampshire banks or other institutions) as, and subject generally to the same criteria, standards, conditions, requirements, and procedures applicable to the establishment of interstate branches in this state by, an out-of-state bank having the same home state in the United States, notwithstanding any provision of the laws or rules of this state to the contrary.
II. Notwithstanding the provisions of paragraph I, the commissioner:
(a) Shall apply to the establishment of an initial interstate New Hampshire state branch, and subsequent intrastate New Hampshire branches, of any out-of-state foreign bank the same criteria, standards, conditions, requirements, and procedures applicable under RSA 384-F:8-43 or rules adopted thereunder to the establishment of an initial New Hampshire state branch, and of subsequent intrastate New Hampshire branches, respectively;
(b) May apply any other criterion, standard, condition, requirement, or provision of the laws or rules of this state that is determined by the commissioner to be substantially equivalent to or consistent with a criterion, standard, condition, requirement, or provision of federal law or regulation generally applicable to the establishment of branches in the United States by foreign banks or specifically applicable to the establishment of a branch in the United States by the applicant foreign bank;
(c) May by rule or order allow an out-of-state foreign bank to acquire or merge with another foreign bank maintaining a New Hampshire branch or agency and thereafter continue such operations as its own.
Source. 1997, 236:1, eff. July 1, 1997.