487.14310 Investment in service entity.
155 words·~1 min read·
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487.14310 Investment in service entity.
Sec. 4310.
(1)As authorized by order or declaratory ruling of the commissioner, a bank may invest in service entities that engage in activities in which a bank is not authorized to engage.
(2)The maximum aggregate investment by a bank in service entities shall be the lesser of 5% of the bank's total assets or 75% of its capital and surplus.
(3)The commissioner shall give notice to all banks of orders and declaratory rulings issued under this section.
(4)For purposes of subsection (2), investment in a service entity shall include loans by a bank or its subsidiary to a service entity.
(5)Subject to the investment limit in subsection (2), a bank or its subsidiary that has made an initial investment in a service entity may make additional investments in that service entity without notice to the commissioner.
History: 1999, Act 276 , Eff. Mar. 1, 2000