9-1127f. Same; new activities with savings and loan associations; prior approval required. (a) A savings and loan association shall apply to the commissioner for approval at least 30 days prior to acquiring, establishing or commencing new activity with an existing service corporation and shall not engage in activity with the service corporation without the commissioner's approval. The application shall include:

(1) A complete description of the saving [savings] and loan association's investment in the service corporation;

(2) the proposed activities of the service corporation;

(3) the organizational structure and management of the service corporation;

(4) the relationship between the savings and loan association and the service corporation; and

(5) any other information that the commissioner deems necessary to describe the proposal.

(b) A service corporation shall:

(1) Be operated in a manner that demonstrates to the public that it maintains a separate corporate identity from the applicant; and

(2) not commingle business transactions, accounts and records with a savings and loan association.

(c) In considering an application, the commissioner may:

(1) Limit a savings and loan association's investment in a service corporation; or

(2) refuse to permit any activity of a service corporation for supervisory, legal or safety and soundness reasons.

(d) This section shall be a part of and supplemental to the state banking code.

History: L. 2018, ch. 75, § 3; July 1.