SENATE, No. 2063

 

STATE OF NEW JERSEY

 

INTRODUCED MAY 15, 1997

 

 

By Senators INVERSO and LITTELL

 

 

An Act concerning certain trust powers of certain not-for-profit corporations and amending P.L.1948, c.67.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 213 of P.L.1948, c.67 (C.17:9A-213) is amended to read as follows:

    213. Limitations on exercise of powers.

    Except as otherwise provided by law, only a banking institution shall exercise within this State any of the powers enumerated in paragraph (4) of section 24 of P.L.1948, c.67 (C.17:9A-24), paragraphs (4), (5) and (13) of section 25 of P.L.1948, c.67 (C.17:9A-25), and paragraphs (1) and (5) of section 26 of P.L.1948, c.67 (C.17:9A-26), and except as otherwise provided in this section, no corporation other than a qualified bank shall exercise within this State any of the powers specified in paragraphs (3), (4), (5), (6), (7), (8) and (9) of section 28 of P.L.1948, c.67 (C.17:9A-28), provided that no corporation organized prior to March 24, 1899, authorized to exercise all or any of the powers specified in paragraph (13) of section 25 of P.L.1948, c.67 (C.17:9A-25) or in paragraph (3) of section 28 of P.L.1948, c.67 (C.17:9A-28), shall be prohibited from exercising such powers, and further provided that if, prior to the effective date of this amendatory act, a not-for-profit corporation was exercising any of the powers specified in paragraph (6) or (9) of section 28 of P.L.1948, c.67 (C.17:9A-28) as trustee over trusts and funds in which that corporation had an interest, that corporation shall not be prohibited, on and after the effective date of this act, from exercising the powers specified in paragraph (6) or (9) of section 28 of P.L.1948, c.67 (C.17:9A-28) over trusts and funds in which that corporation has an interest, and further provided that no qualified corporation, as hereinafter defined, shall be prohibited from exercising all or any of the powers specified in paragraph (3) of section 28 of P.L.1948, c.67 (C.17:9A-28), or in paragraph (13) of section 25 of P.L.1948, c.67 (C.17:9A-25). A qualified corporation shall mean a domestic corporation or a foreign corporation authorized to transact business in this State and registered with the Department of Banking and Insurance which (a) has such capital, surplus and undivided profits as may be fixed by the Commissioner of Banking and Insurance commensurate with the nature and volume of its business; (b) has adequate vault or other safe keeping facilities for the safeguarding of stocks and other securities received, processed or otherwise held for the account of customers; and (c) is adequately insured, as may be provided by regulation, to protect its customers and the holders or transferees of securities issued by its customers.

    A qualified corporation shall be subject to any regulations which may be adopted by the Commissioner of Banking and Insurance and subject to examination by the Department of Banking and Insurance , the cost of which shall be paid by the qualified corporation, to ensure compliance with any such regulations. The Commissioner of Banking and Insurance may require such qualified corporations to file such reports as from time to time he deems necessary to enable him to determine compliance with any regulations which may be issued by him and to pay fees set by regulation for filing such reports and for registering with the Department of Banking and Insurance .

(cf: P.L.1989, c.262, s.1)

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill provides that if a not-for-profit corporation was exercising certain trust powers as trustee over trusts and funds in which it had an interest prior to the effective date of the bill, it shall not be prohibited, on and after that effective date, from exercising those same trust powers over trusts and funds in which it has an interest.

 

 

                             

Concerns certain trust powers of certain not-for-profit corporations.