Registration of domestic representative office

UNOFFICIAL COPY of Supervisory Policy G 8 -- Registration Of Domestic Representative Offices
(Statutory authority: Banking Law, §§ 14[1], 132, 258)

8.1 General
8.2 Definitions
8.3 Information required
8.4 Permissible activities
8.5 Designation as representative office

§ 8.1 General.

Any banking institution seeking to establish or maintain a representative office shall submit the information called for by section 8.3 of this Supervisory Policy to the Superintendent of Financial Services at the office of the Department of Financial Services at the address set forth in section 1.1 of Supervisory Policy G-1.

§ 8.2 Definitions.

For purposes of this Supervisory Policy:

(a) Banking institution means any bank, trust company, savings bank, and savings and loan association chartered under the laws of New York State, Puerto Rico or any other state or territory of the United States.

(b) Representative office means any office located in this State of a banking institution that engages in representational functions (including but not limited to soliciting business, marketing services or acting as liaison with customers) on behalf of the banking institution, but shall not include a branch office of a banking institution or any office that engages solely in administrative or supervisory functions.  A representative office shall also include an office of a New York chartered institution located outside this State that engages in representational functions.

§ 8.3 Information required.

(a) The information to be supplied to the superintendent pursuant to section 8.1 of this Supervisory Policy shall be in letter form, shall be submitted prior to the establishment of the office, and shall include:

(1) address of the representative office;

(2) for institutions headquartered outside this State, address of the head office of the banking institution;

(3) complete description of the activities of the representative office;

(4) for institutions headquartered outside this State, opinion of counsel that:

(i) the activities of the representative office are permissible under section 8.4 of this Supervisory Policy; and

(ii) the banking institution has obtained all regulatory approvals required to establish and maintain such representative office.

(b) Any material changes in the above shall be promptly reported to the superintendent.

§ 8.4 Permissible activities.

(a) The activities that may be conducted by a representative office of a banking institution in this State on behalf of such banking institution shall be limited to the following:

(1) approval of loans;

(2) execution of loan documents;

(3) solicitation of loans and, in connection therewith, assembly of credit information, making of property inspections and appraisals, securing of title information, preparation of applications for loans (including making recommendations with respect to action thereon);

(4) solicitation of purchasers of loans from the banking institution;

(5) solicitation of parties to contract with the banking institution for the servicing of its loans;

(6) solicitation of other banking business on behalf of the banking institution;

(7) conduct of research;

(8) acting as liaison with customers of the banking institution; and

(9) other similar activities.

(b) A representative office of a banking institution may not disburse funds, transmit funds, accept loan repayments, or accept or contract for deposits or deposit-type liabilities on behalf of the banking institution.

§ 8.5 Designation as representative office.

Any representative office subject to registration pursuant to this Supervisory Policy shall designate itself as a representative office on any office sign at its office location, telephone listing, print advertisement and on its stationery. It shall also prominently display a notice at its office location that it is not a branch office of a bank and does not engage in general banking transactions at such office.