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§ 202. Additional powers of incorporated institutions related to conduct of business

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and BankingEffective: December 24, 2012

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 7 P.S. Banks and Banking (Refs & Annos)
Banking Code of 1965 (Refs & Annos)
Chapter 2. General Statement of Powers of Incorporated Institutions; By-Laws (Refs & Annos)
Effective: December 24, 2012
7 P.S. § 202
§ 202. Additional powers of incorporated institutions related to conduct of business
An incorporated institution shall have in addition to other powers granted by this act or its articles and subject to the limitations and restrictions contained in this act or in its articles:
(a) Agency for United States--the power to act as agent of the United States or of any instrumentality or agency thereof for the sale, issue or redemption of bonds, notes or other obligations of the United States, or those for the payment of which the full faith and credit of the United States is pledged, and to pledge its assets for the faithful performance of its duties as such agent;
(b) Safekeeping and safe-deposit business--The power to receive for safekeeping, or to rent out receptacles or safe-deposit boxes for the deposit of papers and other personal property;
(c) Stock of safe-deposit company--The power to acquire and hold shares of stock of a corporation organized and existing under the laws of the Commonwealth solely for the purpose of conducting a safe-deposit business;
(d) Stock in corporation holding realty and facilities--The power to acquire and hold in an amount approved by the Department, shares of stock of a corporation which owns real property which the institution could acquire and hold in its own name under clauses (i), (ii) and (iii) of subsection (e) of this section and shares of stock of a corporation solely for the purpose of providing data processing facilities for the institution or for the institution and others;
(e) Ownership of real property--the power to acquire and hold such real property as it:
(i) occupies or intends to occupy for the transaction of its business or partly so occupies and partly leases,
(ii) acquires for the purpose of providing parking facilities for the use of its customers, officers and employes, or
(iii) acquires solely or jointly with others for the purpose of providing data processing facilities for the institution or for the institution and others subject to the limitation that the book value of all such real property, of all furniture, fixtures and equipment acquired in connection with any real property owned or leased by the institution, of all alterations of buildings on real property owned or leased by the institution, of all shares of stock or corporations acquired under subsection (d) of this section, and investments in obligations of or for the benefit of corporations described in subsection (d) of this section or loans upon the security of the stock of such corporations shall not exceed one hundred percent of the aggregate of surplus, unallocated reserves, undivided profits and subordinated securities in the case of a mutual savings bank, or one hundred percent of the aggregate of capital, surplus, undivided profits and capital securities in the case of any other institution, or such larger amount as may be approved by the department, and subject to the requirement that estimates of costs of any building on real property owned or leased by the institution shall be submitted to the department for its approval prior to the erection thereof;
(f) Pledges for borrowings--The power to pledge assets as security for borrowings authorized by this act;
(g) Bonds in legal proceedings--The power to give its bond in any proceeding in any court in which it is a party or upon any writ of error or appeal in any such proceeding and to pledge assets as security for such bond;
(h) Property acquired for prior debt--The power to acquire and hold, irrespective of any restriction or limitation of this act, any property or a security interest in any property as protection against loss on an evidence of indebtedness, on an agreement for the payment of money or on an investment security, previously acquired lawfully and in good faith, subject to:
(i) a determination by a majority vote of its directors or trustees at least once each year as to the advisability of retaining any such property or security interest so acquired, and
(ii) disposition within a period of twenty-four months after the date of acquisition or such longer period as the department may approve of shares of its own stock so acquired and of shares of stock of a bank, bank and trust company, trust company or national bank held after such acquisition in excess of the limitation of section 311(d)1 of this act;
(i) Property held prior to act--The power to hold property lawfully held on the effective date of this act, subject to the inclusion of any such property in any computation of a limitation on the acquisition or holding of property of a like character under this act; and
(j) Servicing of loans--The power to service for others, subject to regulation by the department, real estate loans and other loans originated or formerly owned by the institution.
(k) Delivery service--the power to pick up from and deliver to customers cash or other valuables relating to financial services provided by the incorporated institution using a contract carrier or employes or affiliates of the incorporated institution. No separate authorization or approval by the department shall be required for an incorporated institution to provide delivery service, provided that the incorporated institution complies with other laws and regulations applicable to the provision of delivery service.

Credits

1965, Nov. 30, P.L. 847, No. 356, § 202. Amended 1968, Nov. 27, P.L. 1104, No. 345, § 1; 1970, July 23, P.L. 597, No. 199, § 3; 1982, April 8, P.L. 262, No. 79, § 3, imd. effective; 2000, Nov. 22, P.L. 660, No. 89, § 4, imd. effective; 2012, Oct. 24, P.L. 1336, No. 170, § 9, effective in 60 days [Dec. 24, 2012].

Footnotes

7 P.S. § 311.
7 P.S. § 202, PA ST 7 P.S. § 202
Current through 2022 Regular Session Act 40. Some statute sections may be more current, see credits for details.
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