senate Bill S2933

Signed by Governor Amended

Relates to the preservation of books and records of banking institutions

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Bill Status


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

  • 25 / Jan / 2013
    • REFERRED TO BANKS
  • 05 / Jun / 2013
    • 1ST REPORT CAL.1129
  • 10 / Jun / 2013
    • 2ND REPORT CAL.
  • 11 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 12 / Jun / 2013
    • PASSED SENATE
  • 12 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2013
    • REFERRED TO BANKS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO BANKS
  • 07 / May / 2014
    • AMEND AND RECOMMIT TO BANKS
  • 07 / May / 2014
    • PRINT NUMBER 2933A
  • 21 / May / 2014
    • 1ST REPORT CAL.909
  • 28 / May / 2014
    • 2ND REPORT CAL.
  • 29 / May / 2014
    • ADVANCED TO THIRD READING
  • 02 / Jun / 2014
    • AMENDED ON THIRD READING 2933B
  • 09 / Jun / 2014
    • PASSED SENATE
  • 09 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 09 / Jun / 2014
    • REFERRED TO BANKS
  • 16 / Jun / 2014
    • SUBSTITUTED FOR A9777A
  • 16 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.221
  • 16 / Jun / 2014
    • PASSED ASSEMBLY
  • 16 / Jun / 2014
    • RETURNED TO SENATE
  • 25 / Aug / 2014
    • DELIVERED TO GOVERNOR
  • 04 / Sep / 2014
    • SIGNED CHAP.341

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:
S2933
S2933A
S2933B
Legislative Cycle:
2013-2014
Law Section:
Banking Law
Laws Affected:
Add §36-b, amd §§75-g & 576, Bank L
Versions Introduced in 2011-2012 Legislative Cycle:
S6952A

Sponsor Memo

BILL NUMBER:S2933

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

PURPOSE: This bill would update some sections of the Banking Law in
order to reflect and keep pace with changes in technology and practices.

SUMMARY OF PROVISIONS:

Section 1 of 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.

Section 2 of this bill amends section 75-g of the Banking Law to clarify
that the Superintendent may require banking institutions to file their
annual ATM reports electronically.

Section 3 of this bill amends section 576 of the Banking Law to clarify
the ability of insurance premium finance agencies to provide notice by
electronic means.

JUSTIFICATION: This bill contains some amendments recommended by the
Department of Financial Services to update the Banking Law in order to
reflect changes in technology. These amendments will clarify the ability
to use more modem and efficient methods of recordkeeping and communi-
cation.

The activities and operations of various types of banking institutions
and nonbank financial service companies are governed by different arti-
cles of the Banking Law govern. 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 been
enacted or amended at different times, and may not have been updated to
reflect new recordkeeping 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 36-b in 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.

The bill also amends the ATM Safety Act in regard to the submission of
reports. Currently, banking institutions must submit annual written
reports to the Department of Financial Services regarding their compli-
ance with this article. This can be costly for both the institutions
submitting such reports and for the Department to process such written
reports. The proposed amendment to Section 75-a of the Banking Law would

automate this process by authorizing the Superintendent to require such
reports to be submitted electronically.

Section 576 of the Banking Law currently specifies the process for
cancelling an insurance premium finance contract upon default, and the
mailing of notices to the insured and insurer. This new section provides
that, in addition to mailing, notice may be delivered by other means,
including electronic means, provided that such delivery method includes
evidence of receipt, including a receipt created and maintained in elec-
tronic form.

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
________________________________________________________________________

                                  2933

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 25, 2013
                               ___________

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.  Subdivision  1  of section 75-g of the banking law, as added by
chapter 9 of the laws of 1996 and as designated by section 4-a of part A
of chapter 57 of the laws of 1998, is amended to read as follows:
  [1.] Within one year after the effective date  of  this  article,  and
each  year  thereafter, every banking institution which has an automated
teller machine facility which is in operation on such date and such date
every year thereafter shall submit a written report to the department on

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08147-01-3

S. 2933                             2

a form prescribed by the superintendent, certifying that such  automated
teller  machine  facility  is  in compliance with the provisions of this
article or any variance or exemption that has been granted, or  if  such
facility  is  not  in compliance with such provisions, such report shall
state the manner in which such facility fails to meet such requirements,
the reasons for such non-compliance and a plan to remedy any  such  non-
compliance.    NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW
OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT  MAY  REQUIRE  THAT
ANY  REPORTS REQUIRED BY THIS SUBDIVISION BE MADE BY ELECTRONIC MEANS IF
HE OR SHE DEEMS IT NECESSARY  TO  ENSURE  THE  EFFICIENT  AND  EFFECTIVE
ADMINISTRATION OF THIS ARTICLE.
  S  3. Section 576 of the banking law is amended by adding a new subdi-
vision 4 to read as follows:
  4. IN ADDITION TO MAILING, NOTICES REQUIRED UNDER THIS SECTION MAY  BE
DELIVERED  BY OTHER MEANS, INCLUDING ELECTRONIC MEANS, PROVIDED THAT ANY
SUCH DELIVERY EVIDENCES RECEIPT OF THE NOTICE BY THE  ADDRESSEE.    SUCH
RECEIPT MAY BE CREATED AND MAINTAINED IN ELECTRONIC FORM.
  S  4. This   act shall take effect on the ninetieth day after it shall
have become a law.

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