Section 386:63 Authority to Invest in Other Mutual Savings Banks. - New Hampshire Statutes

Notwithstanding any other law to the contrary, a mutual savings bank may invest an amount not to exceed 25 percent of its capital and surplus in the capital debentures, bonds, special deposits, or other debt securities of any other mutual savings bank located in this state or in any other state, whether such other bank is in organization or in existence. For purposes of this section, if the investment constitutes more than 50 percent of the capital and surplus of the bank issuing the capital debentures, bonds, special deposits or other debt securities, the banks involved in such an investment transaction shall be deemed affiliates and may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations as an agent for each other in the same manner as bank subsidiaries of a bank holding company may do so under subsection (r) of section 18 of the Federal Deposit Insurance Act (12 U.S.C. section 1828). Such banks shall not be considered branches of each other nor shall the bank making the investment be considered a bank holding company.

Source. 1995, 293:2, eff. Sept. 29, 1995.