senate Bill S6735

Relates to extending certain provisions authorizing banks and trust companies to exercise the rights of national banks

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Bill Status


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

  • 05 / Mar / 2014
    • REFERRED TO BANKS
  • 26 / Mar / 2014
    • 1ST REPORT CAL.366
  • 27 / Mar / 2014
    • 2ND REPORT CAL.
  • 31 / Mar / 2014
    • ADVANCED TO THIRD READING
  • 10 / Jun / 2014
    • SUBSTITUTED BY A9057

Summary

Extends provisions relating to the power of banks, private bankers, trust companies, savings banks, savings and loan associations, credit unions and foreign banking corporations to exercise the rights of national banks.

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Bill Details

See Assembly Version of this Bill:
A9057
Versions:
S6735
Legislative Cycle:
2013-2014
Law Section:
Banks
Laws Affected:
Amd §6, Chap 322 of 2007; amd §7, Chap 3 of 1997

Sponsor Memo

BILL NUMBER:S6735

TITLE OF BILL: An act to amend chapter 322 of the laws of 2007,
amending the banking law relating to the power of banks, private
bankers, trust companies, savings banks, savings and loan
associations, credit unions and foreign banking corporations to
exercise the rights of national banks, federal savings associations,
federal credit unions and federal branches and agencies of foreign
banks, in relation to the effectiveness of certain provisions of such
chapter; and to amend chapter 3 of the laws of 1997, amending the
banking law and the insurance law relating to authorizing the banking
board to permit banks and trust companies to exercise the rights of
national banks, in relation to the effectiveness of certain provisions
of such chapter

PURPOSE:

To extend, for an additional five years, the banking "wild card" law,
which provides an administrative mechanism to keep the state banking
charter viable and competitive with the federal banking charter.

SUMMARY OF PROVISIONS:

The effective date provisions of Chapter 322 of 2007 and Chapter 3 of
the Laws of 1997 are amended to extend the sunset date from September
10, 2014 to September 10, 2019.

EXISTING LAW:

Under the "wild card" law (Section 12-a of the Banking Law), the
Superintendent of Financial Services is authorized to permit
state-chartered banking organizations to exercise banking powers that
are available to corresponding federally-chartered institutions, but
which are not expressly authorized under the Banking Law.

STATEMENT IN SUPPORT:

Under the nation's dual banking system, banking institutions may
choose to operate under either a state or federal charter. Almost
every state has a banking "wild card" law which provides an
administrative mechanism to help maintain parity in regard to the
powers of state banks and national banks.

In general, a banking wild card law enables a state regulator to
administratively authorize state banks to exercise the same powers as
national banks. A wild card law can provide a timely, flexible and
efficient mechanism for keeping a state's banking charter competitive,
attractive and viable in comparison with the federal charter.

In 1997, a banking wild card law was enacted in New York State to help
retain and promote the state banking charter and state banking system.
With this law, the State sought to reassure its state-chartered
banking institutions that it was committed and determined to keep the
state charter competitive with the federal charter.

With the rapid and continuing changes in the financial system,
state-chartered institutions were becoming increasingly concerned that


they would find themselves at a significant disadvantage. While
federally-chartered institutions were positioned to immediately take
advantage of any expanded powers and new opportunities granted at the
federal level, state institutions feared that lengthy delays and
uncertainty at the state level would place them at a significant
disadvantage.

The wild card law is intended to help address these concerns by
establishing an administrative process to enable New York State to
quickly respond to significant parity issues. New York's wild card law
included a sunset date, and the law has been extended several times
since its original enactment in 1997. This bill would extend the law
for an additional five years.

BUDGET IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

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

                                  6735

                            I N  S E N A T E

                              March 5, 2014
                               ___________

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 chapter 322 of the laws of 2007,  amending  the  banking
  law  relating to the power of banks, private bankers, trust companies,
  savings banks,  savings  and  loan  associations,  credit  unions  and
  foreign banking corporations to exercise the rights of national banks,
  federal  savings  associations,  federal  credit  unions  and  federal
  branches and agencies of foreign banks, in relation to the  effective-
  ness  of certain provisions of such chapter; and to amend chapter 3 of
  the laws of 1997, amending the  banking  law  and  the  insurance  law
  relating  to  authorizing  the banking board to permit banks and trust
  companies to exercise the rights of national banks, in relation to the
  effectiveness of certain provisions of such chapter

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

  Section  1. Section 6 of chapter 322 of the laws of 2007, amending the
banking law relating to the  power  of  banks,  private  bankers,  trust
companies,  savings  banks, savings and loan associations, credit unions
and foreign banking corporations to  exercise  the  rights  of  national
banks,  federal  savings associations, federal credit unions and federal
branches and agencies of foreign banks, as amended by section 95 of part
A of chapter 62 of the laws of 2011, is amended to read as follows:
  S 6. This act shall take effect immediately;  provided,  however  that
sections  one, two, three and four of this act shall take effect Septem-
ber 1, 2007; and provided further that sections one, two, three and four
of this act shall expire and be deemed  repealed  September  10,  [2014]
2019;  and provided further that any federally permitted powers approved
under section three of this act shall remain in full force and effect on
and after such repeal date and shall not be affected by such repeal.
  S 2. Section 7 of chapter 3 of the laws of 1997, amending the  banking
law  and  the insurance law relating to authorizing the banking board to
permit banks and trust companies to  exercise  the  rights  of  national
banks, as amended by section 95-a of part A of chapter 62 of the laws of
2011, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14097-01-4

S. 6735                             2

  S  7. This act shall take effect immediately provided that section two
of this act shall take effect on the thirtieth day after it  shall  have
become  a  law and shall apply to violations prescribed in section 44 of
the banking law that occur on or after such date; and  provided  further
that  sections  one,  three,  four  and  five shall expire and be deemed
repealed September 10, [2014] 2019; and provided further that any  rules
and  regulations  promulgated  pursuant to sections one, three, four and
five shall remain in full force and effect on and after such  expiration
date and shall not be affected by such expiration date.
  S 3. This act shall take effect immediately.

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