A depository bank may make a loan to an executive officer or director and accept an executive officer or director as surety, endorser, or guarantor of loans to other persons if the loan is approved in accordance with Federal Reserve Board Regulation O. Such loans must be on terms not more favorable than those afforded other borrowers. Escrow Accounts. Any depository bank which requires or accepts moneys for deposit in escrow accounts maintained for the payment of taxes or insurance premiums related to loans on property secured by real estate mortgages must credit each escrow account with interest at a minimum rate set for a 6-month period by the commissioner on February 1 and August 1 of each year.
The rate must be one percent below the mean interest rate paid by depository banks on regular savings accounts during the applicable period.
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Repayment of Loans. If the original note is retained by the depository bank or subsidiary, the original must be returned within a reasonable period of time upon the written request of the borrower. Types of Loans and Investments. RSA B lists the characteristics of permissible loans and investments and any limitations thereon. It also authorizes the making of loans and investments that do not fit into a permitted category, provided they are prudent and do not exceed 7.
The new law clarifies certain rights of deposit holders in deposit accounts and limitations of the liability of depository banks. Power of Attorney. A depository bank doing business in this state may continue to recognize the power of an attorney-in-fact authorized in writing to make withdrawals either in whole or in part from the account of a depositor, whether a minor or adult, until it receives written notice or is on actual notice of the revocation of his or her authority.
No depository bank is liable for damages, penalties, or tax by reason of any payment made under this authority. No assignment of a deposit which is evidenced by a passbook or certificate of deposit is a valid transfer of the deposit unless the passbook or certificate of deposit is delivered to the assignee accompanied by a written assignment or order for transfer.
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No assignment of a deposit, however evidenced, is effective to charge the depository bank in which the deposit is maintained with a duty of payment to the assignee prior to service by the assignee on the depository bank of written notice of the assignment. No depository bank is liable to an assignee of a deposit maintained in that bank for any payment of the deposit or portion thereof or dividend or interest thereon made to the depositor prior to service on the depository bank by the assignee of the written notice of the assignment; except that the exemption from liability does not apply in the case of a payment to a depositor, with respect to a deposit evidenced by a passbook, which is made without production of the passbook if the bylaws of the depository bank require production of the passbook as a condition to payment.
Payable on Death Accounts. Ownership Rights. Any person designated as a depositor is the owner of the deposit account. No change in the designation of the survivor payee or beneficiary is valid unless executed on a form and in the manner prescribed by the depository bank. On the death of the sole account holder or the last surviving joint account holder, any remaining balance in a payable on death account, including interest, vests solely in the surviving payable on death payee, or the in trust for beneficiary, or equally and severally in the then surviving payees or beneficiaries.
If no payee or beneficiary survives, the deposit account remains in the estate of the last surviving owner. Ninety days after the death of the sole account holder or the last surviving joint account holder, the depository bank may pay the remaining balance in the deposit account to the new owner or owners or their legal representatives without further liability for the amount or amounts paid. If no payee or beneficiary is surviving 90 days after the last surviving account holder dies, the balance of the account is payable to the personal representative of that account holder.
A depository bank that makes payment as described herein, is, to the extent of each payment so made, released from all claims of any of the deposit account owners, the named payees or beneficiaries, their respective legal representatives, and all others claiming through or under them. Each payee, beneficiary or legal representative claiming under this section must provide the identification and other information as requested by the depository bank. Account Holder Rights. Unless otherwise required in writing by all of the joint account holders at the time the deposit account is created, the withdrawal, assignment or pledge of one joint account holder is binding on the other joint account holders.
For purposes hereof, no payee or beneficiary is deemed to be an account holder. No Other Law May Defeat. The rights of a surviving payee or beneficiary to the funds in a payable on death deposit account may not be denied, abridged or in any way affected because the rights have not been created by a writing executed in accordance with the laws of New Hampshire prescribing the requirements to effect a valid testamentary disposition of property or because of any absence of delivery or compliance with other requirements to effect a valid gift or transfer in trust.
Foreign Banks. Foreign banks maintaining deposits in New Hampshire must comply with these provisions. The new law clarifies procedures in the event that a renter of a safe deposit box defaults in the payment of his or her contract to open the box and dispose of the contents.
Notice of Default. If the amount due for the rent or use of a safe deposit box has not been paid for 6 consecutive months, or if the renter thereof has not removed the contents thereof within 30 days from the termination of the lease therefor for any reason other than for the non-payment of rent, the depository bank is required to send a written notice to the renter at his or her last known mailing address by registered or certified mail, return receipt requested.
Forfeiture of Rights. The depository bank is allowed to use only the degree of care required of a bailee for the sole benefit of the bailor. The depository bank is required to open the box in the presence of an officer of the depository bank and a notary public who is not an officer or employee. The notary public must then remove the contents thereof, make a list of them, seal the contents in a package, and write on the package the name and address of the person in whose name the safe deposit box was recorded on the books of the depository bank.
The package must then be placed in a storage vault of the depository bank in the presence of the notary public and bank officer. The proceedings of the notary public, including the list of the contents of the safe deposit box of the contents, are finally recorded under his or her official seal and maintained in written or electronic form by the depository bank.
Record of Notary Public. The record of the notary public is prima facie evidence of the facts stated therein in all proceedings at law and in equity wherein evidence of the facts would be competent. For all sales or auctions, the time and place of any auction or sale must be posted conspicuously on the premises of the depository bank and published in a newspaper of general circulation once weekly for 3 consecutive weeks, the last publication being no less than 10 days before the auction or sale, in a newspaper published in the place where the safe deposit box is located.
Any documents, letters or other papers of a private nature and any property or articles of no apparent value among the contents of the safe deposit box need not be sold, but must be retained for the 5-year period, and unless sooner claimed by the renter of the safe deposit box, may thereafter be destroyed without the need to provide notice to the apparent owner under the escheat laws. Contents of a safe deposit box offered for sale for which no purchaser exists may be destroyed by the depository bank. United States coin or currency among the contents of any safe deposit box so opened need not be sold, but may be used by the depository bank to pay for its charges.
Savings Bonds may not be sold or destroyed, but instead delivered to the administrator under escheat laws.
If property is destroyed as provided by law, no action or proceeding may be maintained against the depository bank or any of its employees, officers or directors for or on account of the action. From the proceeds of the sale, the depository bank may deduct all its charges for rental up to the time of opening the safe deposit box, including the amount which have been due for rental up to the time of opening the safe deposit box, the cost of the opening thereof, and the fees of the notary public for his or her proceedings and pay from time to time the further charges and costs of safe keeping, selling, and destroying the contents of the safe deposit box so opened, including reasonable expenses for notices, advertising, sale, and destruction.
After deduction of costs, the depository bank must remit the net cash proceeds to the administrator under the escheat laws. Access by Survivors. When a safe deposit box is rented to 2 or more persons under a rental contract granting a separate right of access to either or any one of the persons or the survivor or survivors of them, the survivor or survivors of the joint renters have a right of access to the safe deposit box for any purpose. The depository bank is protected against all renters of the box, their heirs, assigns, executors, and administrators, in recognizing that right.
Surviving Representative. When a safe deposit box is rented to a person, and the renter appoints a representative on the records of the depository bank by written power of attorney expressly providing that the representative shall have a continued right of access to the safe deposit box after the death of the renter, and the renter dies survived by the representative, then, notwithstanding any rule of law to the effect that a power of attorney is terminated by the death of the principal, the surviving representative continues to have a right of access to the box for any purpose.
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The depository bank, its employees, officers, and directors are protected against the heirs, assigns, executors, and administrators of the deceased renter in recognizing that right. No Joint Tenancy. The law makes clear that these provisions are not to be construed to create a joint tenancy in or otherwise establish ownership in any of the contents of a safe deposit box.
Discharge of Taxpayer Liability. Foreign banks maintaining safe deposit boxes in New Hampshire must comply with these provisions. The new law recodifies the existing laws with respect to mutual savings banks and mutual holding companies and clarifies their right to acquire or combine with other banking organizations in other states. The new law also preserves certain distinctions between state-chartered mutual banks and member-owned savings associations.
The governance of a mutual bank or mutual holding company is vested in its board of directors. The board of directors has all powers and authorities granted under the organizational documents of the mutual bank or mutual holding company and applicable federal and state laws.
The board of directors elects officers and supervises management of the mutual bank or mutual holding company. The board of directors is required to review and approve by majority vote, or by higher vote if required by applicable state laws or by the organizational documents, any matter expressly reserved for the approval of corporators of mutual banks or association members of savings associations prior to submitting the matter to their approval.
In exercising their duties as directors, the directors are required to consider the interests of the depositors, borrowers, and other customers of the mutual bank or mutual holding company, the general benefit, and economic well-being of the communities served by the mutual bank or mutual holding company and the safety, soundness, and general business needs of the mutual bank or mutual holding company. The directors are accountable to the corporators or association members, as applicable, for the proper discharge of their duties. Corporators and Association Members. The corporators of a mutual bank or mutual holding company are deemed to be exclusively representative of, and must exclusively represent, the various interests and communities served by the mutual savings bank or mutual holding company.
Each corporator is entitled to cast one vote and may vote in person or by proxy. The corporators elect persons to serve as corporators and directors, and may remove any corporator or director who has failed to properly discharge his or her duties, in the manner prescribed by its organizational documents. Except as otherwise provided in the law, the following corporate powers of a mutual savings bank or mutual holding company are vested solely in the corporators: the corporators have authority to approve by majority vote, or by higher vote if required by applicable state laws or rules or by the organizational documents, the amendment of the organizational documents, the conversion of the mutual savings bank or mutual holding company from mutual to stock form, the formation of a mutual holding company, the combination of the mutual savings bank or mutual holding company with any other entity, the voluntary liquidation of the mutual savings bank or mutual holding company, and any other matter expressly reserved for the approval of corporators under applicable state laws or the organizational documents of the mutual savings bank or holding company.
The corporators are required to consider the interests of the depositors, the borrowers, and other customers of the mutual savings bank or mutual holding company, the general benefit and economic well-being of the communities served by the mutual savings bank or mutual holding company, and the safety, soundness, and general business needs of the mutual savings bank or mutual holding company in exercising their duties as corporators.
The voting rights and interests of association members of a savings association or mutual holding company that owns a saving association are governed by the organizational documents of the savings association or the mutual holding company only. In any case requiring a vote of the corporators of a mutual savings bank or mutual holding company, the vote is cast by the association members instead.
Inchoate Interests. The inchoate interest is of no force or effect unless and until a dividend is declared or liquidation proceedings are commenced. If a bank is owned by a mutual holding company, the depositors of the bank have the same inchoate interest in the net worth of the mutual holding company.