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§ 201. General corporate powers of incorporated institutions

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and BankingEffective: November 22, 2000

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: November 22, 2000
7 P.S. § 201
§ 201. General corporate powers of incorporated institutions
(a) Subject to the limitations and restrictions contained in this act or in its articles, an incorporated institution shall have in addition to the powers granted in its articles the power:
(i) to continue as a corporation for the time specified in its articles, subject to the power of the General Assembly under the Constitution of this Commonwealth to alter, revoke or annul its articles,
(ii) to sue and be sued, complain and defend in its corporate name,
(iii) to have a corporate seal which may be altered at pleasure and to use the same by causing it or a facsimile thereof to be impressed or affixed or in any manner reproduced,
(iv) to make, alter, amend and repeal by-laws, not inconsistent with its articles or with law, for the administration and regulation of the affairs of the institution,
(v) to elect or appoint and remove officers and agents of the institution, and to define their duties and fix their compensation,
(vi) to have and exercise all of the powers and means appropriate to effect the purpose or purposes for which the institution is incorporated,
(vii) to make contributions and donations for the public welfare or for religious, charitable, scientific or educational purposes,
(viii) to use abbreviations, words or symbols in connection with the registration of, and inscription of ownership or entitlement on, certificates evidencing its stock or securities on the records of the institution, on stock certificates, bonds, debentures, warrants and certificates evidencing its securities and on checks, proxies, notices and other instruments and documents relating to the foregoing, which abbreviations, words and symbols, shall have the same force and legal effect as though the respective words and phrases for which they stand were set forth in full for the purposes of all statutes of the Commonwealth and all other purposes, and
(ix) to purchase, take, lease as lessee or otherwise acquire, to own, hold and use and to sell, lease as lessor, mortgage, pledge, grant a security interest in, convey or otherwise dispose of, any real or personal property in connection with the exercise of any power granted in this act or in its articles.
(b) The powers granted in subsection (a) of this section shall not be construed as limiting or enlarging any grant of authority made elsewhere by this act, or as a limitation on the purposes for which an institution may be incorporated. It shall not be permissible or necessary to set forth any of such powers in the articles of the institution. Except as otherwise provided in this act or in the articles or in the by-laws, such powers shall be exercised by the board of directors or board of trustees of the institution.
(c) Notwithstanding any conditions, limitations, restrictions or other provisions of this act or any other law, in addition to any other power as authorized by this act or other law, an incorporated institution shall have the power:
(i) to engage in any activity permissible for a national banking association, including those activities as authorized by 12 U.S.C. § 24, subject to conditions, limitations and restrictions as may be imposed by the department which shall not be more restrictive than conditions, limitations and restrictions otherwise imposed upon a national banking association,
(ii) to engage in any activity permissible for a Federal savings association, including those activities as authorized by 12 U.S.C. § 1464, subject to conditions, limitations and restrictions as may be imposed by the department which shall not be more restrictive than conditions, limitations and restrictions otherwise imposed upon a Federal savings association,
(iii) to control or hold an interest in a subsidiary that engages in any activity permissible for a national bank to conduct through an operating or financial subsidiary, provided that:
(A) any activity permissible for an operating subsidiary shall be subject to conditions, limitations and restrictions as may be imposed by the department which shall not be more restrictive than conditions, limitations and restrictions otherwise imposed upon an operating subsidiary of a national banking association, and
(B) any activity only permissible for a financial subsidiary, and not permissible for an operating subsidiary, shall comply with the requirements of section 121(d) of the Gramm-Leach-Bliley Act (Public Law 106-102, 113 Stat. 1338),
(iv) to control or hold an interest in a subsidiary that engages in any activity permissible for a subsidiary of a Federal savings association pursuant to 12 U.S.C. § 1464, subject to conditions, limitations and restrictions as may be imposed by the department which shall not be more restrictive than conditions, limitations and restrictions otherwise imposed upon a subsidiary of a Federal savings association, or
(v) to engage in any activity or to control or hold an interest in a subsidiary that engages in any activity determined to be permissible for an insured state bank or the subsidiary of an insured state bank by the Federal Deposit Insurance Corporation pursuant to 12 U.S.C. § 1831a, subject to conditions, limitations and restrictions as may be imposed by the department with respect to the safety and soundness of the incorporated institution.
(d) If an incorporated institution engages in an activity or holds an interest permissible under more than one clause of subsection (c), the incorporated institution may elect under which clause notice as required by subsection (e) is given and the activity is conducted or the interest is held.
(e) Unless earlier approval is granted by the department, an incorporated institution shall provide at least thirty days' prior written notice to the department before it engages in an activity or acquires an interest only permissible under subsection (c) or engages in an activity or acquires an interest as otherwise authorized by this act, subject only to conditions, limitations or restrictions as provided by subsection (c). During the review period provided by this subsection, the department may:
(i) request further information concerning any proposed activity or interest,
(ii) impose any conditions, limitations or restrictions upon such interests or activities to the extent authorized by subsection (c), or
(iii) prohibit an incorporated institution from engaging in an activity or acquiring an interest if to do so would have a significant adverse impact upon the safety and soundness of the incorporated institution.
Except as otherwise agreed to by an incorporated institution, the department shall be deemed to have granted approval for an incorporated institution to engage in an activity or acquire an interest if within thirty days of receipt of written notice from an incorporated institution the department does not impose conditions, limitations or restrictions upon interests or activities as authorized by subsection (c) or prohibit the incorporated institution from engaging in an activity or acquiring an interest authorized by subsection (c).
(f) Notwithstanding any other provisions of this act or any other law, an incorporated institution shall have the same power to engage in fiduciary activities, both within and outside of this Commonwealth, as a national banking association pursuant to 12 U.S.C. § 92a. The department shall interpret the provisions of 12 U.S.C. § 92a in a manner consistent with regulations and interpretations as provided by the Comptroller of the Currency.

Credits

1965, Nov. 30, P.L. 847, No. 356, § 201. Amended 2000, Nov. 22, P.L. 660, No. 89, § 4, imd. effective.
7 P.S. § 201, PA ST 7 P.S. § 201
Current through 2022 Regular Session Act 117. Some statute sections may be more current, see credits for details.
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