S T A T E   O F   N E W   Y O R K
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                                  4438

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 4, 2009
                               ___________

Introduced  by M. of A. GREENE -- Multi-Sponsored by -- M. of A. PHEFFER
  -- read once and referred to the Committee on Banks

AN ACT to amend the banking law, in relation to assessment of the record
  of performance of banking institutions in helping to meet  the  credit
  needs of local communities

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

  Section 1. The opening paragraph of paragraph (a) of subdivision 3  of
section  28-b  of the banking law, as amended by chapter 315 of the laws
of 2008, is amended to read as follows:
  When taking any action on an application made by a banking institution
under section one hundred five, two  hundred  twenty-four,  two  hundred
forty,  or  three hundred ninety-six of this chapter for a branch office
or under section one hundred ninety-one of this  chapter  for  a  public
accommodation  office or under section six hundred one-b of this chapter
for approval or disapproval of a merger or purchase of assets, or taking
any action on a notice submitted by a banking institution under  section
one hundred five-a, two hundred forty-a or three hundred ninety-six-a of
this chapter for the use or installation of an automated teller machine,
point-of-sale  terminal  or  similar electronic facility or on any other
application to which the banking board shall by rule or regulation  make
applicable the provisions of this section, the superintendent shall take
into  account,  among  other  factors, an assessment, in writing, of the
record of performance of the banking institution in helping to meet  the
credit  needs of its entire community, including low and moderate-income
neighborhoods, consistent with safe and sound operation of  the  banking
institution.  SUCH ASSESSMENT SHALL INCLUDE A SEPARATE DISCUSSION OF THE
RECORD  OF  THE BANKING INSTITUTION PERTAINING TO EACH OF THE ASSESSMENT
FACTORS LISTED IN ALL OF THE  SUBPARAGRAPHS  OF  THIS  PARAGRAPH  AND  A
COMPLETE  EXPLANATION OF HOW EACH OF THESE FACTORS WAS CONSIDERED BY THE
DEPARTMENT IN MAKING THE ASSESSMENT. THIS EXPLANATION SHALL INCLUDE, BUT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06349-02-9
              

A. 4438                             2

NOT BE LIMITED TO, ANNUAL DATA FOR THE INSTITUTION AS FOLLOWS: LOANS FOR
HOUSING LOW AND MODERATE-INCOME RESIDENTS  OF  LOW  AND  MODERATE-INCOME
AREAS,  AND  THE  SCOPE  OF EFFORTS TO MARKET HOUSING AND SMALL BUSINESS
LOANS  IN  LOW  AND MODERATE-INCOME AREAS; THE AMOUNT OF LOANS TO FARMS,
AND LOANS TO SMALL BUSINESSES THAT PROVIDE SERVICES TO  LOW  AND  MODER-
ATE-INCOME RESIDENTS OF LOW AND MODERATE-INCOME AREAS; FINANCIAL INVEST-
MENTS  IN  AND CONTRIBUTIONS TO NONPROFIT LOCAL COMMUNITY DEVELOPMENT OR
REDEVELOPMENT PROJECTS OR ENTITIES; MANPOWER RESOURCES COMMITTED TO  LOW
AND MODERATE-INCOME HOUSING LENDING AND SMALL BUSINESS LENDING AND OTHER
FORMS  OF  ADMINISTRATIVE SUPPORT FOR SUCH LENDING; AND PARTICIPATION IN
GOVERNMENTALLY OR  PRIVATELY  SPONSORED  LOAN  INSURANCE,  GUARANTEE  OR
SUBSIDY  PROGRAMS  FOR  HOUSING,  SMALL BUSINESSES AND SMALL FARMS. Such
assessment AND EXPLANATION and any written communications from the bank-
ing department to a banking institution relating to such assessment  AND
EXPLANATION shall be made available to the public upon request, provided
that  nothing  contained  in  this subdivision shall be deemed to alter,
amend or affect the provisions of subdivision ten of section  thirty-six
of  this  chapter. In making such assessment AND EXPLANATION, the super-
intendent shall review all reports and documents filed WITH HIM  OR  HER
pursuant  to  subdivision  one  of  this section and any signed, written
comments received by the superintendent which specifically relate to the
banking institution's performance in helping to meet the credit needs of
its community.  In  addition,  the  superintendent  shall  consider  the
following  factors  in  assessing AND EXPLAINING a banking institution's
record of performance:
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition,  amend-
ment  and/or repeal of any rules or regulations necessary for the imple-
mentation of the foregoing section of this act on its effective date are
authorized to be made on or before such effective date.