Section 392-A:5 Policy for Business Activities.
The board of directors of a merchant bank if it is a corporation, or its equivalent governing body if it is any other type of business entity, shall establish a written policy under which the merchant bank's business activities are conducted. The policy shall also address conflicts of interest and shall preclude a merchant bank from making an investment in a small business if the effect is to create the potential of a conflict in interest with a person having an ownership interest in the merchant bank. The policy for business activities shall be reviewed and ratified by the board of directors or equivalent governing body at least annually and shall be submitted to the bank commissioner. If the bank commissioner finds that the policy does not adequately regulate the business activities of the merchant bank, the bank commissioner may require the board of directors or equivalent governing body to take corrective action.
Source. 1998, 284:2, eff. Aug. 25, 1998.