To: Examiner Lo — Community & Regional Banks Division
From: Sharon Cherry, Associate Attorney — Legal Division
Date: September 16, 2005
Subject: [ }Community Bank — Notice of Intent to Form a New Division
Does [ ] Community Bank require approval from the Banking Department in order to establish a new division called "Perfect Health Savings Bank"?
The bank does not need approval from the Department in order to establish a division called Perfect Health Savings Bank.
[ ] Community Bank has notified the Department that it intends to offer health savings account ("HSA") banking services through a newly established division called "Perfect Health Savings Bank, a division of [ ] Community Bank." The Bank expects to accumulate HSA tax-qualified deposits from various sources including employers, employees, insurance companies and other sources.
The New York State Banking Law and regulations do not require savings banks to obtain approval from the Department in order to establish divisions within the bank. A division of the bank is not a separate legal entity such as a subsidiary.