Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 508
General powers
Banking (BNK) CHAPTER 2, ARTICLE 12
§ 508. General powers. In addition to the powers conferred by article
fifteen of this chapter, an investment company may, subject to the
restrictions and limitations contained in this article, have the
following powers:

1. (a) To borrow and lend money, with or without real or personal
security; as principal or agent, to purchase, discount, acquire, invest
in, sell and dispose of bills of exchange, drafts, notes, acceptances
and other choses in action and obligations for the payment of money;
and, as principal or agent, to purchase, acquire, invest in, service,
sell and dispose of, and make loans upon the security of, bonds and
mortgages on real property situated in this state or outside this state.

(b) Pursuant to paragraph (a) of this subdivision, an investment
company may lend money at a rate or rates, and upon such terms and
conditions, as agreed to by such investment company and borrower.

2. To accept bills of exchange or drafts drawn upon it payable on
demand or on time not exceeding one year from the date of acceptance; to
issue letters of credit authorizing the holders thereof to draw upon it
or its correspondents at sight or on time; and to buy and sell coin,
bullion and exchange.

3. With the approval of the superintendent of financial services, and
subject to such conditions as the superintendent of financial services
shall impose,

(a) To act as financial agent of the United States government and as
depositary of public money of the United States (including, without
being limited to, revenues and funds of the United States, and any funds
the deposit of which is subject to the control or regulation of the
United States or any of its officers, agents, or employees); and to
perform all such reasonable duties as depositary of such public money
and as financial agent of the United States government as may be
required of it; and to pledge assets or furnish other security,
satisfactory in form and amount to the secretary of the treasury of the
United States, for the safekeeping and prompt payment of such public
money deposited with it and for the faithful performance of its duties
as financial agent of the United States government.

(b) To engage in the business of receiving deposits outside this
state.

(c) To receive money for transmission and to transmit the same from
the United States to any foreign country and from any foreign country to
the United States.

4. To establish branches pursuant to the provisions of article two of
this chapter; provided, however, that an investment company to which the
provisions of subdivision two of section thirty-six of this chapter are
inapplicable may establish branches, without applying and obtaining
authorization therefor under the provisions of article two of this
chapter, but such investment company shall not open any such branch
until it shall have notified the superintendent in writing of the place
where such branch is to be located.

5. To purchase, acquire, invest in and hold all or any of the stocks
of any corporation, domestic or foreign, and to sell and dispose of all
or any such stocks owned by it.

6. To exercise, subject to such regulations as may be issued from time
to time by the superintendent, through any branch office opened and
occupied outside the states of the United States and the District of
Columbia with the approval of the superintendent as provided in article
two of this chapter, such further powers as may be usual, in connection
with the transaction of the business permitted by this article, in the
place where such branch office shall transact business; provided that no
such branch office shall engage in the general business of producing,
distributing, buying or selling goods, wares, or merchandise.

The grant of powers to investment companies by or pursuant to this
section shall not be deemed to limit or restrict any other corporations,
heretofore or hereafter organized, in the exercise of their lawful
powers.