MARVIN MANDEL, Governor                        1451

(iii) For the benefit of whose shareholders all or substantially
all the capital stock of one or more banking institutions is held by
trustees.

Provided that a banking institution doing business under this
article which intends to have an affiliate, affiliates, or closely allied
corporation or corporations offering services to the public not of a
financial, fiduciary or insurance nature or unrelated to the business
of banking or to the performance of bank services, shall be permitted
to do so only under such regulations as the Bank Commissioner,
the Comptroller of the Treasury and the three appointed members
of the Banking Board have authorized by majority vote for all such
banking institutions as are reasonably required to preserve and

protect the welfare of such institutions and the general economy of

the State ARE AUTHORIZED BY A MAJORITY VOTE OF THE
BANK COMMISSIONER, THE THREE APPOINTED MEMBERS
OF THE BANKING BOARD, AND THREE PERSONS, NOT
EMPLOYED BY ANY BANKING INSTITUTION, TO BE
APPOINTED BY THE GOVERNOR FOR A TWO YEAR TERM.
ONE OF WHOM SHALL BE AN ECONOMIST, ONE OF WHOM
SHALL BE A CERTIFIED PUBLIC ACCOUNTANT, AND THE
THIRD MEMBER SHALL BE A MEMBER OF THE GENERAL
PUBLIC. SUCH AUTHORIZATION SHALL BE GIVEN ONLY
IF IT IS DEEMED REASONABLY REQUIRED TO PRESERVE
AND PROTECT THE WELFARE OF SUCH INSTITUTIONS,
THE GENERAL ECONOMY OF THIS STATE, AND WILL NOT
BE DETRIMENTAL TO THE PUBLIC INTEREST AND THE
STABILITY OF THE INSTITUTION. FURTHERMORE SUCH
AUTHORIZATION SHALL BE GIVEN UNDER THE SAME
CONDITIONS, LIMITATIONS, RESTRICTIONS AND SAFE-
GUARDS AS ARE NOW OR SHALL HEREAFTER BE APPLI-
CABLE OR PERMITTED UNDER FEDERAL LAW TO ANY
NATIONAL BANKING ASSOCIATION.

Provided that the requirement of such authorization in this sec-
tion shall not apply to the purchase of shares of stock in a small
business investment company as authorized by the Small Business
Investment Act of 1958 (Public Law 699, 85th Congress 2nd Session,
and Amendments thereto). Such shares shall be eligible for purchase
by any banking institution as defined in this article; except that in
no event shall any such institution hold shares in any such company
where the capitalized value of such shares on the books of the
institution exceeds more than 2 percent of its un-impaired capital
and surplus.

Provided, however, that nothing in this section shall affect or
disturb any such affiliate or closely allied corporation existing on
June 1, 1935 [, and provided further that a banking institution,
for reorganization purposes and with the consent of the Bank Com-
missioner may create and have an affiliate or closely allied cor-
poration].

The Bank Commissioner shall have the same rights and powers
to examine into the affairs of all [existing] affiliates and closely
allied [banking institutions] AND corporations as he has as to bank-
ing instituti