Banking Interpretations

General Regulations of the Banking Board Part 38 and 39

November 29, 2005

[ ]

Re: Lending Exemptions for a Maine State-Chartered Bank

Dear [ ]:

Your June 2,2005 letter to the Superintendent of Banks, regarding
licensing exemptions and requirements in New York for your company, [
] if it were to obtain a specific-type of
Maine banking charter has been forwarded to me for reply. I apologize for the
delay in my response.

You describe the primary business of your company as conventional first
and second mortgage lending as well as unsecured lending under the FannieMae
EnergyLoan program. You state that for a number of business and
organizational purposes, you are considering applying for a limited purpose
Maine state bank charter that would be supervised by the Maine Bureau of
Financial Institutions and enjoy all the "privileges, powers and authorities" of
any bank licensed under the Maine Universal Bank Charter including full lending
and investment authority. However, this limited purpose charter would only
permit commercial depository activities and would not be insured by the FDIC or
similar agency. You would like to ascertain the status of a foreign state
licensed bank as described above as it pertains to exemptions from lending
licensing in New York, specifically regarding: residential first and secondary
mortgage lending; unsecured consumer lending; and unsecured retail installment
contracts for home improvements.

New York does not impose any licensing requirements on an out-of-state
bank without any physical presence in New York State, wishing to engage in
lending activity in New York State. As an out-of-state bank without any
physical presence in New York State, your company would be considered an
exempt organization under Part 39.2 of the General Regulations of the Banking
Board of Title 3 of the NYCRR. Be advised that an exempt organization shall
not be relieved of the advertising, solicitation, application and commitment
procedures and disclosure requirements or penalties set forth in Article 12-D of
the New York State Banking Law and Part 38 of Title 3 of the NYCRR.

I trust that this is responsive to your inquiry. If you have any questions, I
can be reached at (212) 709-1642.

Christine M. Tomczak
Assistant Counsel