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Banking Interpretations

NYSBL 590(1)(e)
Part 39

July 22, 2008 

[---]

Dear [---]:

Your letter dated April 25, 2008, to the New York State Banking Department ("Banking Department"), requested that the Banking Department provide opinion concurring with your analysis that your client, [---] is an "exempt organization" under Section 590 of the New York State Banking Law, Article 12-D. You stated that [---] is a wholly owned subsidiary of [---] Credit Union, a state chartered credit union located in Michigan. You also stated that [---] is a for-profit organization and cannot file a consolidated tax return with [---] Credit Union.

The Legal Division is of the opinion that the provisions of Part 39 of the Banking Board Regulations require a wholly owned subsidiary of an exempt organization to be a "consolidated subsidiary", as defined in Part 39.2(c), to qualify for exempt status. Consequently, [---] must apply for a mortgage banking license under Article 12-D of the New York Banking Law if it seeks to make more than four mortgages in this state within a calendar year.

Very truly yours,

Orinthia E. Perkins
Assistant Counsel

cc:        Rholda Ricketts
             Deputy Superintendent

Department of Financial Services

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