senate Bill S6952

Amended

Relates to the preservation of books and records of banking institutions

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Sponsor

Bill Status


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

  • 16 / Apr / 2012
    • REFERRED TO BANKS
  • 23 / May / 2012
    • 1ST REPORT CAL.899
  • 30 / May / 2012
    • 2ND REPORT CAL.
  • 31 / May / 2012
    • ADVANCED TO THIRD READING
  • 04 / Jun / 2012
    • AMENDED ON THIRD READING 6952A
  • 18 / Jun / 2012
    • PASSED SENATE
  • 18 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 18 / Jun / 2012
    • REFERRED TO BANKS

Summary

Provides that requirements relating to the preservation of certain banking records may be satisfied by maintenance of original papers or other records, photographic reproductions, or records stored in electronic storage media.

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Bill Details

Versions:
S6952
S6952A
Legislative Cycle:
2011-2012
Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add ยง36-b, Bank L

Sponsor Memo

BILL NUMBER:S6952

TITLE OF BILL:
An act
to amend the banking law, in relation to electronic preservation of
banking records

PURPOSE:
To update the laws regarding the methods that may be used by banking
and financial service companies to preserve books and records.

SUMMARY OF PROVISIONS:
This bill adds a new section 36-b to the Banking Law to clarify the
ability of regulated entities to preserve their books and records
through the use of electronic storage media.

JUSTIFICATION:
Different articles of the Banking Law govern the activities and
operations of various types of banking institutions and non-bank
financial service companies. Each of these articles generally
requires the regulated entities to preserve books and records for a
specified number of years.
However, these sections of law have often been enacted or amended at
different times, and may not have been updated to reflect new
technologies. For example, some sections refer to the maintenance of
records through photographic reproduction, while others include
references to optical disk technology.
This bill would enact a new section of the Banking Law to allow all
regulated entities to utilize electronic storage media in preserving
their records. The bill specifies certain standards that must be met.
This legislation will clarify the ability of financial institutions
to use current technology and best practices to preserve records in a
cost-effective and practical way.

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
The ninetieth day after it shall have become law.

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

                                  6952

                            I N  S E N A T E

                             April 16, 2012
                               ___________

Introduced  by  Sen.  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 electronic  preservation
  of banking records

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

  Section 1. The banking law is amended by adding a new section 36-b  to
read as follows:
  S  36-B. PRESERVATION OF BOOKS AND RECORDS. WHEN ANY PROVISION OF THIS
CHAPTER OR ANY RULE OR REGULATION ADOPTED PURSUANT THERETO REQUIRES THAT
BOOKS AND RECORDS BE PRESERVED, SUCH REQUIREMENT  MAY  BE  SATISFIED  BY
MAINTENANCE  OF  ORIGINAL  PAPERS OR OTHER RECORDS, PHOTOGRAPHIC REPROD-
UCTIONS, OR RECORDS STORED IN ELECTRONIC STORAGE MEDIA. AS USED IN  THIS
CHAPTER,  "ELECTRONIC STORAGE MEDIA" MEANS ANY DIGITAL STORAGE MEDIUM OR
SYSTEM THAT MEETS THE FOLLOWING CONDITIONS:
  1. IT MUST PRESERVE THE RECORDS EXCLUSIVELY IN NON-REWRITABLE, NON-ER-
ASABLE FORMAT;
  2. IT MUST VERIFY AUTOMATICALLY THE QUALITY AND ACCURACY OF THE  STOR-
AGE MEDIA RECORDING PROCESS;
  3.  IT  MUST HAVE THE CAPACITY TO READILY DOWNLOAD INDEXES AND RECORDS
PRESERVED ON THE ELECTRONIC STORAGE MEDIA TO ANY  MEDIUM  ACCEPTABLE  TO
THE SUPERINTENDENT; AND
  4. IT MUST BE IMMEDIATELY READABLE ON EQUIPMENT AT ALL TIMES AVAILABLE
TO THE SUPERINTENDENT FOR EXAMINATION OF SUCH RECORDS.
  S  2. This   act shall take effect on the ninetieth day after it shall
have become a law.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15325-01-2

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