senate Bill S4193

Amended

Relates to certain provisions regarding foreign banking corporations

download pdf

Sponsor

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 23 / Mar / 2011
    • REFERRED TO BANKS
  • 30 / Mar / 2011
    • 1ST REPORT CAL.282
  • 31 / Mar / 2011
    • 2ND REPORT CAL.
  • 04 / Apr / 2011
    • ADVANCED TO THIRD READING
  • 12 / Apr / 2011
    • AMENDED ON THIRD READING 4193A
  • 16 / May / 2011
    • PASSED SENATE
  • 16 / May / 2011
    • DELIVERED TO ASSEMBLY
  • 16 / May / 2011
    • REFERRED TO BANKS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO BANKS
  • 28 / Mar / 2012
    • 1ST REPORT CAL.474
  • 29 / Mar / 2012
    • 2ND REPORT CAL.
  • 30 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 17 / Apr / 2012
    • PASSED SENATE
  • 17 / Apr / 2012
    • DELIVERED TO ASSEMBLY
  • 17 / Apr / 2012
    • REFERRED TO BANKS

Summary

Treats a branch or agency of a foreign banking corporation licensed under article 5 of the banking law as a banking institution for the purposes of provisions governing the purchase of assets and with regard to the transfer of fiduciary relationships.

do you support this bill?

Bill Details

Versions:
S4193
S4193A
Legislative Cycle:
2011-2012
Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Amd ยงยง601-a & 604-a, Bank L

Votes

Sponsor Memo

BILL NUMBER:S4193

TITLE OF BILL:
An act
to amend the banking law, in relation to certain provisions relating to
foreign banking corporations

PURPOSE:
To clarify and streamline the ability of foreign banking corporations
to enter into merger and purchase transactions.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend Section 60l-a of the Banking Law,
which relates to the authority for banking institutions to purchase
all, or a substantial part of, the assets of other banking
institutions. The bill clarifies that this section applies to
branches and agencies of foreign banking corporations.
Section 2 of the bill would amend Section 604-a of the Banking Law to
treat a branch or agency of a foreign banking corporation as a
banking institution with regard to the transfer of fiduciary
relationships.

JUSTIFICATION:
The Banking Law currently contains provisions which authorize banking
institutions to enter into purchase and assumption agreements with
other institutions, and to transfer fiduciary relationships between
institutions. This bill amends these laws to clarify and ensure that
they apply to branches and agencies of foreign banking corporations.

The foreign banking community is a very important contributor to the
economy of New York State and New York City, and to our reputation as
the world's financial center. In fact, the vast majority of foreign
banking corporations which have offices in the United States are
subject to the regulatory jurisdiction of the New York State Banking
Department. These regulated entities hold over 80% of the assets held
by foreign bank offices located in the United States.

There has been some uncertainty about whether the existing laws
regarding purchases and transfers apply to the branches and agencies
of foreign banking corporations. This legislation will clarify and
ensure that these institutions can enter into these types of
transactions.

This will enhance the attractiveness of the New York license for
foreign banking corporations seeking to operate in New York.
Otherwise, these foreign banks would have to engage in
additional lengthy and costly bureaucratic steps to undertake these
types of routine business.
This measure improves the regulatory process, thereby helping to keep
these institutions in New York and keeping them in the state charter
system.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:


Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4193

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 23, 2011
                               ___________

Introduced  by  Sens.  GRIFFO, FARLEY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Banks

AN ACT to amend the banking  law,  in  relation  to  certain  provisions
  relating to foreign banking corporations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision 1 of section 601-a  of  the  banking  law,  as
amended  by  chapter  152  of  the  laws  of 1993, is amended to read as
follows:
  1.  The  following  acquisitions  are  hereby  authorized  whether  by
purchase  or  otherwise,  other  than by merger, of all or a substantial
part of the assets of:
  (a) One or more corporations organized under the laws  of  this  state
and subject to the provisions of article three, article eight or article
twelve  of this chapter by another corporation subject to the provisions
of the same article.
  (b) One or more safe deposit companies by a bank or trust company.
  (c) One or more mutual savings banks by another mutual savings bank.
  (d) One or more mutual savings and loan associations by another mutual
savings and loan association.
  (e) One or more stock-form savings banks by another stock-form savings
bank.
  (f) One or more stock-form savings and loan  associations  by  another
stock-form savings and loan association.
  (g) One or more banking institutions by another banking institution to
the  extent  permitted  under  regulations  of  the banking board.   FOR
PURPOSES OF THIS SUBDIVISION, A BRANCH OR AGENCY OF  A  FOREIGN  BANKING
CORPORATION LICENSED UNDER ARTICLE FIVE OF THIS CHAPTER SHALL BE CONSID-
ERED A BANKING INSTITUTION.
  S  2. Section 604-a of the banking law, as added by chapter 743 of the
laws of 1958, the section heading and subdivision 1 as amended by  chap-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10443-01-1

S. 4193                             2

ter  297 of the laws of 1993, subdivision 2 as amended by chapter 489 of
the laws of 1963 and subdivision 3 as amended by chapter 115 of the laws
of 1981, is amended to read as follows:
  S 604-a.  Transfer  of  fiduciary relationships [of a banking institu-
tion]. 1. If any banking institution, including a bank or trust company,
national banking association, savings bank,  savings  and  loan  associ-
ation, federally chartered savings bank, federally chartered savings and
loan  association,  BRANCH  OR  AGENCY OF A FOREIGN BANKING CORPORATION,
located in this state, shall have transferred all or  substantially  all
of its assets to another banking institution in a transaction subject to
this  chapter pursuant to a written agreement between the transferor and
transferee  [corporations]  whereby  the  transferee  [corporation]  has
assumed the deposit liabilities, if any, of the transferor [corporation]
and  has  agreed to assume all fiduciary relationships of the transferor
[corporation], the transferee [corporation] may file in  the  office  of
the  superintendent  a certificate in its name and under its [corporate]
seal, signed by its president, secretary or  cashier,  setting  forth  a
copy  of  such  agreement  and stating that the transferee [corporation]
assumes all of the fiduciary relationships  of  the  transferor  [corpo-
ration]  pursuant  to the provisions of this section; provided, however,
that such certificate shall not be filed  unless  the  approval  of  the
superintendent  shall  have  been  endorsed  thereon  or annexed thereto
before filing.
  2. Upon the filing of such certificate in the  office  of  the  super-
intendent,  all  of  the  property, rights, powers and franchises of the
transferor [corporation] as  fiduciary  shall  vest  in  the  transferee
[corporation]  and  the transferee [corporation] shall be deemed to have
assumed all of the debts, liabilities, obligations  and  duties  of  the
transferor  [corporation] as fiduciary, and to have succeeded to all the
fiduciary relationships of the transferor [corporation],  as  fully  and
with the same effect as is provided in sections one hundred thirty-six-c
and  six  hundred  two  OF THIS CHAPTER in the case of a merger, and any
reference to the transferor [corporation] as fiduciary in any  capacity,
contained  in any contract, will or document, whether executed or taking
effect before or after the filing of such certificate in the  office  of
the  superintendent,  shall  be considered a reference to the transferee
[corporation] if not inconsistent  with  the  other  provisions  of  the
contract, will or document.
  3. For the purposes of this section the fiduciary relationships of the
transferor  shall include all relationships as agent, trustee, guardian,
receiver, committee,  conservator,  executor,  administrator,  or  other
fiduciary  in  any  capacity or for any purpose mentioned in section one
hundred, and all relationships of the transferor as bailee or depositary
of personal property.
  4. This section shall not be deemed to authorize a transferee  [corpo-
ration]  to  assume  any fiduciary relationship of a kind which it would
not otherwise have power to  undertake  and  perform.  Nothing  in  this
section  shall  be deemed to authorize any such transferee [corporation]
to maintain as its own office any office previously  maintained  by  the
transferor  [corporation],  and  authority, if any, to maintain any such
office shall be governed by the applicable provisions of law other  than
this  section. This section shall not be deemed to apply to contracts of
the transferor for the leasing of safe deposit boxes or vaults.
  S 3. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.