Regulatory Alerts1999-02-11
Pennsylvania State-Chartered Bank to Make Minority Investment
The Pennsylvania Department of Banking issued a letter confirming that state-chartered banks may make minority investments as limited partners in title insurance agencies. This authority is derived from the Department's rule-making power under the Banking Code and aligns with federal precedents set by the Office of the Comptroller of the Currency. The investment is permitted only if it satisfies a four-prong test requiring the activity to be incidental to banking, limiting the bank's liability, and ensuring the investment is useful to the bank's business.
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