Section 392-A:4 Business of Merchant Banks.
Except as provided in this chapter, a merchant bank has all the powers of and is entitled to engage in the business of a trust company, including without limitation, powers with respect to investments, loans, and fiduciary and trust functions and transactions. In furtherance of assisting small businesses, a merchant bank may provide commercial and investment banking services, act as a securities broker or dealer or an investment advisor, underwrite securities of small businesses, and invest in the equity or debt securities of any small business. A merchant bank shall comply with applicable federal and state securities laws. A merchant bank shall not solicit, receive, or accept money or its equivalent as a savings deposit, time deposit, demand deposit, or any other type of instrument or facility of like character or nature. No initial investment by the merchant bank in a small business shall constitute ""control'' as such term is defined in the rules and regulations of the United States Small Business Administration with respect to investments of small business investment companies, as amended from time to time, except as is permitted in such rules and regulations. No financial institution which is an owner of an interest in a merchant bank shall condition the extension of credit to a small business that meets its ordinary underwriting standards on a requirement that the merchant bank be allowed to invest in, or obtain rights with respect to the equity capital of, the small business.
Source. 1998, 284:2, eff. Aug. 25, 1998.