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Bank Leumi Trust Co. v. Schneider
Citations: 184 N.J. Super. 194; 445 A.2d 461; 1981 N.J. Super. LEXIS 823
Court: New Jersey Superior Court Appellate Division; December 17, 1981; New Jersey; State Appellate Court
A foreign bank, incorporated in New York and not registered in New Jersey, was involved in a lawsuit concerning a mortgage note after the defendant defaulted. The defendant moved to dismiss the case, arguing that the foreign bank must comply with the Corporation Business Activities Reporting Act (Reporting Act) due to its receipt of more than $25,000 from New Jersey residents. The bank contended that it is governed by the Banking Act of 1948, which requires foreign banks to obtain a certificate of authority to transact business in New Jersey but allows them to enforce obligations acquired outside the state. The court examined whether the Reporting Act applied, referencing N.J.S.A. 14A:13-15, which mandates foreign corporations to file a business activities report if they engage in specific activities, including receiving substantial payments from New Jersey residents. However, the bank's argument was that the Banking Act takes precedence, as it does not impose such reporting requirements on foreign banks. Citing Modern Industrial Bank v. Taub, the court noted that when statutes conflict, the intention of the legislature is crucial, and it is presumed that the legislature does not intend to disrupt established statutory policy without clear intent. The court concluded that applying the Reporting Act to the foreign bank would negatively impact New Jersey's economy by limiting the market for mortgage obligations, resulting in higher interest rates for borrowers. Therefore, the provisions of the Reporting Act do not apply to the foreign bank under the circumstances presented in this case.