S. 3726--B 2
Insurance Corporation, which is incorporated, chartered, organized or
licensed under the laws of this state or any other state or the United
States.
S 2. Paragraph (ii) of subdivision 1 of section 14 of the banking law
is REPEALED.
S 3. Subdivision 2 of section 14 of the banking law, as amended by
chapter 684 of the laws of 1938, is amended to read as follows:
2. The BANKING board shall consider and make recommendations upon any
matter which the superintendent may submit to it for recommendations,
and pass upon and determine any matter which he OR SHE shall submit to
it for determination. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE
SUPERINTENDENT, WITHOUT PUBLIC NOTICE, MAY MAKE INFORMATIONAL PRESENTA-
TIONS OR BRIEFINGS TO THE BANKING BOARD, IN PERSON OR BY ELECTRONIC
MEANS, PROVIDED THAT THE INFORMATION PRESENTED RELATES TO MATTERS WHICH
ARE MADE CONFIDENTIAL BY FEDERAL OR STATE LAW OR AS TO WHICH THE BANKING
BOARD MAY LAWFULLY CONDUCT AN EXECUTIVE SESSION, AND PROVIDED THAT THE
BANKING BOARD CONDUCTS NO PUBLIC BUSINESS AT ANY SUCH PRESENTATION OR
BRIEFING.
S 4. Subdivision 7 of section 14-d of the banking law, as added by
chapter 234 of the laws of 1983, is amended to read as follows:
7. In this section "banking institution" has the same meaning ascribed
to it by section [nine-f] NINE-K of this chapter and "item" has the same
meaning ascribed to it by the uniform commercial code.
S 5. Subdivision 3 of section 16 of the banking law, as amended by
chapter 318 of the laws of 1995, is amended to read as follows:
3. Nothing in this section shall be construed to prohibit an employee
from: (a) obtaining a loan secured by an assignment of his or her depos-
it in a banking organization, or an assignment or pledge of his or her
shares in a savings and loan association or credit union; (b) [obtaining
from a savings bank which has established a life insurance department
pursuant to article VI-A of this chapter one or more policies of insur-
ance and one or more annuity policies, receiving dividends on such poli-
cies and pledging such policies as security for a loan from said banking
organization to the extent of the cash surrender value thereof; (c)]
accepting dealer financing of an automobile, truck or other personal
property for the sole reason that the financing company is chartered
under article [XII] TWELVE of this chapter; or [(d)] (C) owning shares
of an investment company (mutual fund) that may incidentally invest in
the stock of banking institutions, provided that the purpose of the
investment portfolio of such investment company may not be to invest
primarily or exclusively in the shares of banking institutions. For
purposes of this section, investment companies include open-end and
closed-end investment companies and unit investment trusts as those
terms are defined in an Act of Congress entitled "The Investment Company
Act of 1940," as amended.
S 6. Subdivision 5 of section 17 of the banking law is REPEALED.
S 7. Subdivision 2 of section 17 of the banking law, as amended by
section 2 of part O of chapter 59 of the laws of 2006, is amended to
read as follows:
2. All general expenses, including in addition to the direct costs of
personal service, the cost of maintenance and operation, the cost of
retirement contributions made and workers' compensation premiums paid by
the state for or on account of personnel, rentals for space occupied in
state owned or state leased buildings and all other direct or indirect
costs, incurred in connection with the supervision of any person or
entity licensed, registered, or incorporated or otherwise formed pursu-
S. 3726--B 3
ant to this chapter shall be charged to and paid by them in such
proportions as the superintendent shall deem just and reasonable. The
provisions of this subdivision shall not be applicable to a bank holding
company, as that term is defined in article three-A of this chapter.
The superintendent shall require that partial payments of the charges
for expenses of each fiscal year [commencing on or after April first,
nineteen hundred eighty-three] shall be paid on March tenth of the
preceding fiscal year and on June tenth, September tenth and December
tenth of the fiscal year, or on such other dates as the superintendent
may prescribe. Each such payment shall be equal to twenty-five [per
centum] PERCENT of the charges, or such other [per centum] PERCENTAGE or
[per centums] PERCENTAGES as the superintendent may prescribe, for the
fiscal year as estimated by the superintendent. The balance of the
expenses shall be charged and paid upon the determination of the actual
amount due. An overpayment of charges resulting from the requirements of
this subdivision shall be [refunded or at the option of] APPLIED AGAINST
THE NEXT ESTIMATED QUARTERLY ASSESSMENT, IF LESS THAN OR EQUAL TO SUCH
AMOUNT, WITH ANY EXCESS REFUNDED TO the assessed [shall be applied as a
credit against the charges for the succeeding fiscal year]. As an alter-
native, if the estimated annual charge for the fiscal year is equal to
or less than the annual minimum assessment set by the superintendent,
the superintendent may require full payment to be made on or before
September thirtieth or such other date of the fiscal year as the super-
intendent may determine.
S 8. Section 22 of the banking law, as amended by chapter 553 of the
laws of 2007, is amended to read as follows:
S 22. Fingerprints. [(a)] 1. Notwithstanding any other provision of
law, every applicant for a license, authorization or registration under
articles nine, nine-A, eleven-B, twelve-B, twelve-C, twelve-D, twelve-E
and thirteen-B of this chapter and every applicant filing an application
to acquire control of any licensee or registrant, as the case may be,
under such articles shall submit [simultaneously with an application,]
his or her fingerprints in such form and in such manner as specified by
the division of criminal justice services OR THE SUPERINTENDENT, AS
APPROPRIATE, but in any event, no less than two digit imprints. The
superintendent shall submit such fingerprints to the division of crimi-
nal justice services for the purpose of conducting a criminal history
search and returning a report thereon in accordance with the procedures
and requirements established by the division pursuant to the provisions
of article thirty-five of the executive law, which shall include the
payment of the prescribed processing fees. The superintendent shall
request that the division submit such fingerprints to the federal bureau
of investigation, together with the processing fees prescribed by such
bureau, for the purpose of conducting a criminal history search and
returning a report thereon UNLESS THE SUPERINTENDENT HAS MADE OTHER
ARRANGEMENTS FOR SUCH SUBMISSION. An applicant shall not be required to
submit his or her fingerprints as required by this subdivision if such
applicant (i) is already subject to regulation by the department and the
applicant has submitted such fingerprints to the department, such fing-
erprints have been submitted to the division of criminal justice
services for the purpose of conducting a criminal history search, and a
report of such search has been received by the department from such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a federal bank regulatory agency and has submitted such fingerprints to
such agency which has had a criminal history search conducted of such
individual and has shared such information or its determination result-
S. 3726--B 4
ing from such search with the department WITHIN THE PAST FIVE YEARS; or
(iii) is an officer or stockholder of a corporation whose common or
preferred stock is registered on a national securities exchange, as
provided in an act of congress of the United States entitled the "Secu-
rities Exchange Act of 1934", [approved June sixth, nineteen hundred
thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints to such exchange or market system which has had a criminal
history search conducted of such individual and has shared such informa-
tion or its determination resulting from such search with the department
WITHIN THE PAST FIVE YEARS; provided, however, that the superintendent
may subsequently require such applicant to submit his or her finger-
prints if the superintendent has a reasonable basis for updating the
information or determination resulting from the report of the criminal
history search conducted at the request of such federal banking agency,
exchange or market system.
[(b)] 2. The superintendent [shall] MAY also, concurrent with an
investigation of a licensee or registrant, or an authorized individual,
pertaining to a violation of this chapter, submit such fingerprints to
the division of criminal justice services for the purpose of conducting
a criminal history search and returning a report thereon and through the
division to the federal bureau of investigation for the purpose of a
fingerprint check of such licensee, registrant or authorized individual.
[(c)] 3. For purposes of this section, "applicant" shall include a
natural person or such principal, officer, director, trustee or stock-
holder of any other entity as may be designated by the superintendent.
Notwithstanding any other provision of this article, the superintendent
shall not access criminal history data or information, unless any agency
from which the superintendent receives directly criminal history data or
information has entered into a use and dissemination agreement with the
superintendent consistent with the provisions of this section.
S 9. The second undesignated paragraph of section 23 of the banking
law, as amended by section 5 of part O of chapter 59 of the laws of
2006, is amended to read as follows:
At the time of submission of the certificate and accompanying docu-
ments an investigation fee as prescribed pursuant to section eighteen-a
of this article shall be paid to the superintendent[, to be retained by
him or her if the certificate and accompanying documents are filed. If
the certificate and accompanying documents are not filed because of
defects therein, the investigation fee is to be returned with such
papers to the persons from whom they were received].
S 10. Section 24 of the banking law, as amended by chapter 684 of the
laws of 1938, subdivision 1 as amended by chapter 453 of the laws of
1960, subdivision 2 as amended by chapter 419 of the laws of 1996,
subdivision 3 as amended by chapter 52 of the laws of 1944 and subdivi-
sion 4 as amended by chapter 608 of the laws of 1996, is amended to read
as follows:
S 24. Investigation by superintendent; refusal or approval; filing
certificate. 1. Within ninety days after the date when any organization
certificate or private banker's certificate shall have been filed for
examination, the superintendent, if he OR SHE shall find after investi-
gation and examination of what he OR SHE deems to be the best sources of
information [at his command] AVAILABLE that the character, responsibil-
ity and general fitness of the person or persons named in such certif-
icate are such as to command confidence and warrant belief that the
business of the proposed corporation or private banker will be honestly
S. 3726--B 5
and efficiently conducted in accordance with the intent and purpose of
this chapter, and that the public convenience and advantage will be
promoted by allowing such proposed corporation or private banker to
engage in business, shall submit such certificate to the banking board
together with all papers, correspondence and other information in his OR
HER possession relating thereto, including the results of [his] THE
investigation and his OR HER recommendation in the matter. [Such] AN
EXTENSION OF SUCH NINETY DAY period [of ninety days] may be [extended]
REQUESTED, by a written [consent] REQUEST executed by a majority of the
persons from whom the superintendent received such organization certif-
icate or private banker's certificate, for such additional reasonable
period of time as may be required for applicants to comply with condi-
tions precedent stipulated by the superintendent as being a prerequisite
to his OR HER recommendation to the banking board. THE SUPERINTENDENT,
IN HIS OR HER SOLE DISCRETION, SHALL DETERMINE WHETHER TO GRANT SUCH AN
EXTENSION.
2. If [three-fifths of the members of] the BANKING board, after
consideration of all relevant information available to them, shall vote
for approval, the superintendent, if he OR SHE is still satisfied, upon
the considerations set forth in subdivision one of this section, that
such proposed corporation or private banker should be permitted to
engage in business, shall approve such certificate and endorse upon each
of the duplicates the date of such approval. [He] THE SUPERINTENDENT
shall forthwith cause notice of such approval to be given to the
proposed incorporators or private banker and one of the duplicate
certificates [to] SHALL be filed in the office of the department and the
other in the office of the clerk of the county in which the principal
office of such proposed corporation or private banker is to be located.
In a case in which a private banker certificate is submitted to the
superintendent for the purpose of continuing the business in connection
with a change in its partnership, the superintendent shall approve the
private banker certificate without any action by the banking board upon
making a determination that the private banker should be permitted to
continue its business based upon the considerations set forth in subdi-
vision one of this section.
3. If [three-fifths of the members of] the banking board shall not
vote for approval, or if the superintendent, either prior or subsequent
to the submission of such certificate to the board, is not satisfied,
upon the considerations set forth in subdivision one of this section,
that such proposed corporation or private banker should be permitted to
engage in business, the superintendent shall refuse such certificate and
shall endorse thereon the date of such refusal and return one of the
duplicates to the proposed incorporators or private banker from whom
such certificate was received.
4. The provisions of this section shall not apply to any organization
certificate required to be filed in the office of the superintendent by
SECTION ONE HUNDRED THIRTY-SIX, BY section two hundred sixty-b, by
section four hundred ten, by section four hundred eleven or by section
four hundred eighty-six of this chapter.
S 11. Subdivisions 1 and 3 of section 25 of the banking law, subdivi-
sion 1 as amended by chapter 512 of the laws of 1977 and subdivision 3
as amended by chapter 561 of the laws of 1946, are amended to read as
follows:
1. If the superintendent shall find that a corporation or private
banker, the certificate of which has been approved and filed as provided
in section twenty-four of this article, has in good faith complied with
S. 3726--B 6
all the requirements of law and fulfilled all the conditions precedent
to commencing business imposed by this chapter, [he] THE SUPERINTENDENT
shall, within ninety days after the date of such approval, [or within
such longer period thereafter as he may permit pursuant to the second
sentence of this subdivision,] but in no case after the expiration of
that period, issue [under his hand] and EXECUTE UNDER the official seal
of the department, in triplicate, an authorization certificate to the
person or persons named in such organization certificate or private
banker's certificate. [The] NOTWITHSTANDING THE PRECEDING SENTENCE, IF
THE SUPERINTENDENT DETERMINES IT IS CONSISTENT WITH THE DECLARATION OF
POLICY CONTAINED IN SECTION TEN OF THIS ARTICLE, THE superintendent may
extend the period within which he OR SHE may issue the authorization
certificate by (I) an additional [sixty] NINETY days, provided, however,
that he OR SHE shall have determined that such extension of time is
needed for raising capital, for fulfilling any other condition precedent
to the commencement of business or for satisfying any other requirement
of organization, whether imposed by statute or regulation[, and that
such extension is consistent with the declaration of policy contained in
section ten of this chapter] OR OTHERWISE, OR (II) SUCH LONGER PERIOD OF
TIME HE OR SHE SHALL DEEM APPROPRIATE, PROVIDED, HOWEVER, THAT HE OR SHE
SHALL HAVE DETERMINED THAT EXTRAORDINARY CIRCUMSTANCES EXIST. Such
authorization certificate shall state that the corporation or private
banker named therein has complied with the provisions of this chapter
and that it is authorized to transact the business specified therein.
Such authorization certificate shall be conclusive evidence that all
conditions precedent have been fulfilled and that the corporation has
been formed under this chapter, except in an action or special proceed-
ing brought by the superintendent or the attorney general. The super-
intendent shall cause one of the triplicate authorization certificates
to be transmitted to the corporation or private banker thereby author-
ized to commence business, another to be filed in the office of the
department, and the third to be filed in the county clerk's office in
which the organization certificate or the private banker's certificate
has been filed. The copies of the authorization certificate filed in the
offices of the superintendent and the county clerk shall be attached to
the copies of the organization certificate or private banker's certif-
icate previously filed and such certificates shall be recorded in the
records of incorporation therein.
3. Any corporation which shall not commence business within six months
after the date on which its authorization certificate is issued by the
superintendent shall forfeit its rights and privileges as a corporation
and its corporate powers shall cease and determine unless the time with-
in which such business may be commenced has been extended by the super-
intendent. Upon satisfactory cause being shown, the superintendent may
grant [an extension for a period of not more than one year] ONE OR MORE
EXTENSIONS. Such extension shall be granted by order executed, transmit-
ted and filed in the manner provided for an authorization certificate in
subdivision one of this section.
S 12. Section 28 of the banking law, as amended by chapter 315 of the
laws of 2008, is amended to read as follows:
S 28. Change of location; change of designation of principal office;
approval or refusal; certificate. Upon receipt by the superintendent of
a written application in proper form from any banking organization or
foreign corporation for leave to change its place or one of its places
of business to another place or from any banking organization for leave
to change the designation of its principal office to a branch office and
S. 3726--B 7
to change the designation of one of its branch offices to its principal
office, the superintendent shall, if he or she shall be satisfied that
such change may be permitted under the terms of this chapter and that
there is no reasonable objection to such change, execute and issue a
certificate under the official seal of the department authorizing such
change and specifying the date on or after which such change may be
made, and shall cause the original of such certificate to be transmitted
to the applicant, a copy to be filed in the office of the department and
a copy to be filed in the office of the clerk of the county in which the
principal office of the applicant is located, provided that if the
proposed principal office is in a different county than the county in
which the principal office is located at the time of the filing of the
application, the superintendent shall cause copies to be filed in the
offices of the clerks of both counties. If the superintendent shall [be
satisfied in any case that such change is undesirable or inexpedient, he
or she shall] refuse such application [and], HE OR SHE SHALL notify the
applicant of such determination.
S 13. Section 28-a of the banking law, as amended by section 6 of part
O of chapter 59 of the laws of 2006, is amended to read as follows:
S 28-a. Temporary change of location; approval or refusal; certif-
icate. Notwithstanding any provisions of law limiting the number of
offices which may be maintained thereby, any banking organization or
foreign banking corporation may make a written application to the super-
intendent for a temporary change of location of its authorized place or
one of its authorized places of business or a portion thereof to another
place within the state which shall be as near as practicable to such
authorized place of business. At the time of making the application an
investigation fee as prescribed pursuant to section eighteen-a of this
article shall be paid to the superintendent for each temporary location
for which leave to open is sought, except where (1) the applicant would
not be required to pay an investigation fee upon the filing of an appli-
cation for a change of location under provisions of this chapter other
than this section, or (2) said application is necessitated by damage or
destruction caused by flood, tidal wave, earthquake, conflagration,
tornado, hurricane, cyclone, windstorm or other storm or such other
event as shall have been declared a catastrophe by the superintendent.
If there is no reasonable objection to such change, and if the super-
intendent finds that such change is necessary or desirable during a
period of construction, repair, alteration, improvement, or recon-
struction of the previously authorized place of business, he or she
shall issue AND EXECUTE a certificate under [his or her hand and] the
official seal of the department authorizing each such change and speci-
fying (a) the period during which such temporary location may be main-
tained, (b) the date on or after which such change may be made, and (c)
the powers which may be exercised thereat. The superintendent shall
cause the original of such certificate to be transmitted to the appli-
cant, a copy to be filed in the office of the department and a copy to
be filed in the office of the clerk of the county in which the principal
office of the applicant is located. If the superintendent shall [be
satisfied in any case that a change is undesirable or inexpedient, he or
she shall] refuse such application [and], HE OR SHE SHALL notify the
applicant of [his or her] SUCH determination. A temporary place of busi-
ness occupied pursuant to the provisions of this section shall be closed
as soon as practicable, and in no event later than the date specified in
its authorization certificate, unless the superintendent shall have
extended such time. The banking organization or corporation shall notify
S. 3726--B 8
the superintendent in writing prior to such closing as to the date it
intends to close the temporary place of business.
S 14. Subdivision 2 of section 28-b of the banking law is REPEALED.
S 15. Subdivision 5 of section 28-b of the banking law, as added by
chapter 361 of the laws of 1984, is amended to read as follows:
5. The banking board is hereby authorized and empowered[, by a three-
fifths vote of all its members,] to promulgate rules and regulations
effectuating the provisions of this section, including any rules and
regulations providing that the assessment of banking institutions
referred to in subdivision three of this section shall be made on a
graduated numerical basis.
S 16. The banking law is amended by adding a new section 36-b to read
as follows:
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-ERASABLE 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 AVAIL-
ABLE TO THE SUPERINTENDENT FOR EXAMINATION OF SUCH RECORDS.
S 17. 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 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 18. The closing paragraph of section 42 of the banking law, as
amended by chapter 684 of the laws of 1938, is amended to read as
follows:
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS SECTION, THE SUPER-
INTENDENT MAY VARY OR WAIVE ANY SUCH PUBLICATION REQUIREMENTS, IF HE OR
SHE SHALL DETERMINE THAT SUCH VARIATION OR WAIVER IS NECESSARY BECAUSE
OF UNUSUAL AND EXTRAORDINARY CIRCUMSTANCES AND CONSIDERATION OF THE
MATTER IS IN THE PUBLIC INTEREST. Every such statement after having been
so posted for one week shall be placed on file and kept in the office of
S. 3726--B 9
the department. All such statements shall be public documents and at all
reasonable times shall be open to public inspection.
S 19. Subdivision 1 of section 229 of the banking law, as amended by
chapter 1 of the laws of 1984, is amended to read as follows:
1. This article applies to every savings bank and shall not apply to
any other banking organization except to such extent, if any, as may be
specified in any article of this chapter governing such banking organ-
ization; provided, however, that in the case of stock-form savings
banks, this article applies to every such organization except that the
banking board, consistent with the declaration of policy described in
section fourteen-e of this chapter, shall be empowered to deem inappli-
cable to stock-form savings banks, sections two hundred thirty, [two
hundred thirty-one,] two hundred thirty-two, two hundred thirty-three,
subdivisions one and two of section two hundred thirty-four, two hundred
forty-three, two hundred forty-four, two hundred forty-five, two hundred
forty-six, two hundred forty-six-a, two hundred forty-seven, two hundred
forty-eight, two hundred forty-nine, two hundred fifty, two hundred
fifty-one and two hundred fifty-two of this chapter.
S 20. Subdivision 1 of section 413 of the banking law, as amended by
chapter 300 of the laws of 1994, is amended to read as follows:
1. With the prior approval of the superintendent, a New York savings
and loan holding company or a subsidiary thereof or a New York savings
association may acquire control of an out-of-state savings and loan
holding company or an out-of-state savings association, and an out-of-
state savings and loan holding company or a subsidiary thereof or an
out-of-state savings association may acquire control of a New York
savings and loan holding company or a New York savings association
subject to regulations to be adopted by the banking board. [The terms
and conditions prescribed by such regulations shall be substantially
similar to those contained in section one hundred forty-two-b of this
chapter governing reciprocal interstate acquisitions by bank holding
companies.]
S 21. Subdivision 2 of section 460 of the banking law, as added by
chapter 608 of the laws of 1996, is amended to read as follows:
2. Earnings from all sources for the period for which a dividend is to
be paid[, except as provided in section four hundred fifty-eight of this
article,] may be credited to the profit and loss account of the credit
union and the following items shall be charged against such account in
the determination of the amount available for dividends to shareholders:
(a) All expenses paid or incurred by the credit union in the manage-
ment of its affairs, the collection of its debts or the transaction of
its business.
(b) The interest paid or accrued on debts owed by the credit union.
(c) All losses incurred on loans in excess of the allowance for loan
loss account.
(d) Any interest collected in advance shall be considered unearned at
the end of the fiscal period, and shall be set aside in an account
called "unearned interest".
The credit balance of the profit and loss account as thus determined
shall constitute the undivided profits of the credit union at the close
of such period, and shall be applicable to the payment of dividends
except as provided in subdivision three of this section.
S 22. Section 4002 of the banking law, as added by chapter 321 of the
laws of 1992, subdivisions (a) and (b) as amended and subdivision (d) as
added by chapter 302 of the laws of 2003, is amended to read as follows:
S. 3726--B 10
S 4002. Fingerprints. [(a)] 1. Notwithstanding any other provisions of
law, every incorporator of a corporation shall, in addition to any other
requirements which may be imposed by the superintendent, submit simul-
taneously with an application, his or her fingerprints in such form and
in such manner as specified by the division of criminal justice
services, but in any event, no less than two digit imprints. Every
applicant filing an application to acquire control [of any bank holding
company under section one hundred forty-two of this chapter or] of any
banking institution under sections one hundred forty-three-a and one
hundred forty-three-b of this chapter shall, in addition to any other
requirements which may be imposed by the superintendent, submit simul-
taneously with an application, his or her fingerprints in such form and
in such manner as specified by the division of criminal justice
services, but in any event, no less than two digit imprints. The super-
intendent shall submit the fingerprints to the division of criminal
justice services for the purpose of conducting a criminal history search
and returning a report thereon in accordance with the procedures and
requirements established by the division pursuant to the provisions of
article thirty-five of the executive law, which shall include the
payment of the prescribed processing fees. The superintendent shall
request that the division submit such fingerprints to the federal bureau
of investigation, together with the processing fees prescribed by such
bureau, for the purpose of conducting a criminal history search and
returning a report thereon.
[(b)] 2. The superintendent [shall] MAY also, concurrent with an
investigation of an incorporator of a corporation pertaining to a
violation of this chapter, submit such fingerprints to the division of
criminal justice services for the purpose of conducting a criminal
history search and returning a report thereon and through the division
to the federal bureau of investigation for the purpose of a fingerprint
check of such incorporator.
[(c)] 3. For purposes of this section, ["incorporator"] "APPLICANT"
SHALL INCLUDE AN INCORPORATOR AND shall include a natural person or such
principal, officer, director, trustee or stockholder of any other entity
as may be designated by the superintendent. Notwithstanding any other
provision of this article, the superintendent shall not access criminal
history data or information, unless any agency from which the super-
intendent receives directly criminal history data or information has
entered into a use and dissemination agreement with the superintendent
consistent with the provisions of this section.
[(d)] 4. An applicant shall not be required to submit his or her fing-
erprints as required by subdivision [(a)] ONE of this section if such
applicant (i) is already subject to regulation by the department and the
applicant has submitted such fingerprints to the department, such fing-
erprints have been submitted to the division of criminal justice
services for the purpose of conducting a criminal history search, and a
report of such search has been received by the department from such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a federal bank regulatory agency and has submitted such fingerprints to
such agency which has had a criminal history search conducted of such
individual and has shared such information or its determination result-
ing from such search with the department WITHIN THE PAST FIVE YEARS; or
(iii) is an officer or stockholder of a corporation whose common or
preferred stock is registered on a national securities exchange, as
provided in an act of congress of the United States entitled the "Secu-
rities Exchange Act of 1934", [approved June sixth, nineteen hundred
S. 3726--B 11
thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints to such exchange or market system which has had a criminal
history search conducted of such individual and has shared such informa-
tion or its determination resulting from such search with the department
WITHIN THE PAST FIVE YEARS; provided, however, that the superintendent
may subsequently require such applicant to submit sets of fingerprints
if the superintendent has a reasonable basis for updating the informa-
tion or determination resulting from the report of the criminal history
search conducted at the request of such federal banking agency, exchange
or market system.
5. WHENEVER AN INCORPORATOR HAS TIMELY FILED HIS OR HER FINGERPRINTS
AS REQUIRED BY THIS SECTION, BUT: (I) THE SUPERINTENDENT HAS NOT
RECEIVED A REPORT OF THE RESULTS OF A RELATED CRIMINAL HISTORY SEARCH;
(II) THE CIRCUMSTANCES WARRANT AN EXPEDITIOUS DETERMINATION; AND (III)
THE SUPERINTENDENT DETERMINES, AFTER CONSIDERING ALL AVAILABLE INFORMA-
TION, THAT THE REMAINING INCORPORATORS HAVE THE CHARACTER, RESPONSIBIL-
ITY AND GENERAL FITNESS SO AS TO WARRANT BELIEF THAT, EVEN IF SUCH
PERSON WERE NOT TO SERVE AS AN INCORPORATOR, SUCH BUSINESS WILL BE
HONESTLY AND EFFICIENTLY OPERATED, THE SUPERINTENDENT MAY WAIVE THE
REQUIREMENT FOR RECEIPT OF SUCH REPORT PRIOR TO APPROVAL, SUBJECT TO
THERE BEING AN ADEQUATE NUMBER OF OTHER INCORPORATORS TO SATISFY THE
REQUIREMENTS OF THIS CHAPTER AND RECEIPT FROM SUCH INCORPORATOR OF HIS
OR HER WRITTEN AGREEMENT TO RESIGN IMMEDIATELY FROM ALL POSITIONS HELD
WITH SUCH ENTITY IF SUCH REPORT DEMONSTRATES, IN THE SOLE DISCRETION OF
THE SUPERINTENDENT, THAT THE INCORPORATOR LACKS THE NECESSARY CHARACTER,
RESPONSIBILITY AND FITNESS.
S 23. Subdivision 8 of section 5004 of the banking law, as added by
chapter 849 of the laws of 1964, is amended to read as follows:
8. When the consideration for shares has been paid in full, the
subscriber shall be entitled to all the rights and privileges of a hold-
er of such shares and to a certificate representing his shares, and such
shares shall be fully paid and, subject to sections [one hundred thir-
teen-a, one hundred thirteen-b,] one hundred fourteen[, three hundred
five, three hundred five-a, three hundred six, three hundred twenty-two,
three hundred twenty-two-a] and three hundred twenty-three of this chap-
ter, shall be nonassessable.
S 24. Paragraph (b) of subdivision 1 of section 591 of the banking
law, as amended by chapter 164 of the laws of 2003, is amended to read
as follows:
(b) [The] AS PROVIDED IN SECTION TWENTY-TWO OF THIS CHAPTER, THE fing-
erprints of the applicant[, which may be submitted to the division of
criminal justice services and the federal bureau of investigation for
state and national criminal history record checks];
S 25. Subdivision 1 of section 592-a of the banking law, as amended by
section 18 of part D-1 of chapter 109 of the laws of 2006, is amended to
read as follows:
1. Upon the filing of an application for registration, if the super-
intendent shall find that the financial responsibility, experience,
character, and general fitness of the applicant, and of the members
thereof if the applicant is a co-partnership or association, and of the
officers and directors thereof if the applicant is a corporation, are
such as to command the confidence of the community and to warrant belief
that the business will be operated honestly, fairly, and efficiently
within the purpose of this article, the superintendent shall thereupon
register the applicant as a mortgage broker on a roll maintained for
S. 3726--B 12
that purpose at the banking department, and issue a certificate attest-
ing to such registration in duplicate. If the superintendent shall not
so find, the superintendent shall not register such applicant, and shall
notify the applicant of the denial. The superintendent shall transmit
one copy of such certificate to the applicant and file another in the
office of the banking department. Upon receipt of such certificate a
mortgage broker shall be authorized to engage in the business of [plac-
ing] SOLICITING, processing [and], PLACING, OR negotiating mortgage
loans. Such registration shall remain in full force and effect until it
is surrendered by the [licensee] REGISTRANT or revoked or suspended as
hereinafter provided, [except that such registration, notwithstanding
any provisions of subdivision five of section seventeen of this chapter
to the contrary, shall expire upon the registrant's failure to pay the
required assessment charged pursuant to such section seventeen thirty
days after the date or dates such payment or payments are due. If the
registrant fails to pay such charged assessment by the date or dates
such payment or payments are due, then the registrant shall be required
to pay, in addition, a late fee in the amount of one hundred dollars.
Such registration shall be reinstated if the registrant pays such
assessment charged and any applicable late fees and/or interest within
sixty days of such expiration] OR TERMINATED IN ACCORDANCE WITH SUBDIVI-
SION TWO OF SECTION FIVE HUNDRED NINETY-FIVE OF THIS ARTICLE. The super-
intendent shall approve or deny every application for registration here-
under within ninety days from the filing of a complete application
provided, however, that failure to act within the prescribed period
shall not be deemed approval of any such application.
S 26. Section 595 of the banking law, as amended by chapter 571 of
the laws of 1986, paragraph (c) of subdivision 1 as amended and para-
graph (d) of subdivision 1 as added by chapter 164 of the laws of 2003,
subdivision 2 as amended by chapter 121 of the laws of 1993, subdivision
3 as amended by chapter 516 of the laws of 1996, subdivisions 4, 5 and 6
as amended and subdivisions 4-a and 7-a as added by chapter 400 of the
laws of 1993, is amended to read as follows:
S 595. Grounds for suspension or revocation of license, or suspension
or deletion of name from mortgage broker roll. 1. [The] IN ADDITION TO
THE AUTHORITY SET FORTH IN SUBDIVISION TWO OF THIS SECTION, THE super-
intendent may SUSPEND OR revoke any license to engage in the business of
a mortgage banker issued pursuant to this article or SUSPEND OR delete
the name of a mortgage broker from the roll of mortgage brokers regis-
tered pursuant to this article if he OR SHE shall find AFTER NOTICE AND
A HEARING, that:
(a) Through a course of conduct, the licensee or registrant has
violated any provisions of this article, or any rule or regulation
promulgated by the banking board, or any rule or regulation prescribed
by the superintendent under and within the authority of this article or
of any other law, rule or regulation of this state or the federal
government;
(b) Any fact or condition exists which, if it had existed at the time
of the original application for such license or registration, would have
warranted the superintendent in refusing originally to issue such
license;
(c) The commission by a licensee or registrant of a crime against the
laws of this state or any other state or of the United States involving
moral turpitude or fraudulent or dishonest dealing, or the entry of a
final judgment against a licensee or registrant in a civil action upon
grounds of fraud, misrepresentation or deceit;
S. 3726--B 13
(d) As a part of such determination regarding suspension or revoca-
tion, the superintendent is authorized to require the fingerprinting of
any licensee or registrant. Such fingerprints shall be submitted to the
division of criminal justice services for a state criminal history
record check, as defined in subdivision one of section three thousand
thirty-five of the education law, and may be submitted to the federal
bureau of investigation for a national criminal history record check.
2. (A) The superintendent may, [on] FOR good cause [shown], WITHOUT
NOTICE OR A HEARING, or where there is a substantial risk of public
harm, [suspend] ISSUE AN ORDER SUSPENDING any license or delete the name
of any registrant for a period not exceeding [thirty] NINETY days, pend-
ing investigation. "Good cause", as used in this subdivision, shall
exist only when the licensee or registrant has defaulted or is likely to
default in performing its financial engagements or engages in dishonest
or inequitable practices which may cause substantial harm to the persons
afforded the protection of this article.
(B) ANY MORTGAGE BROKER REGISTRATION SHALL TERMINATE UPON THE REGIS-
TRANT'S FAILURE TO PAY THE REQUIRED ASSESSMENT CHARGED PURSUANT TO
SECTION SEVENTEEN OF THIS CHAPTER WITHIN THIRTY DAYS AFTER THE DATE OR
DATES SUCH PAYMENT OR PAYMENTS ARE DUE. IF THE REGISTRANT FAILS TO PAY
SUCH CHARGED ASSESSMENT BY THE DATE OR DATES SUCH PAYMENT OR PAYMENTS
ARE DUE, THEN THE REGISTRANT SHALL BE REQUIRED TO PAY, IN ADDITION, A
LATE FEE IN THE AMOUNT OF TWENTY-FIVE DOLLARS. SUCH REGISTRATION SHALL
BE REINSTATED IF THE REGISTRANT PAYS SUCH ASSESSMENT CHARGED AND ANY
APPLICABLE LATE FEES WITHIN SIXTY DAYS OF SUCH TERMINATION. THE SUPER-
INTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEAR-
ING, ISSUE AN ORDER SUSPENDING THE LICENSE OF ANY MORTGAGE BANKER UPON
THE FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENTS REQUIRED BY THIS CHAP-
TER.
(C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE OR REGISTRA-
TION ISSUED PURSUANT TO THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE
LICENSEE OR REGISTRANT FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY
IT WITH THE SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY SECTION
FIVE HUNDRED NINETY-SEVEN OF THIS ARTICLE; (II) IMMEDIATELY UPON NOTICE
TO THE SUPERINTENDENT THAT ANY REQUIRED SURETY BOND OR LINE OF CREDIT IS
BEING CANCELED OR IS EXPIRING, IF THE LICENSEE OR REGISTRANT HAS NOT
PROVIDED THE SUPERINTENDENT WITH PROOF OF A REPLACEMENT BOND OR LINE OF
CREDIT SATISFACTORY TO THE SUPERINTENDENT; (III) IMMEDIATELY UPON NOTICE
TO THE SUPERINTENDENT THAT A LICENSEE OR REGISTRANT HAS FILED A PETITION
IN BANKRUPTCY; OR (IV) AT LEAST THIRTY DAYS AFTER THE LICENSEE OR REGIS-
TRANT HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY.
3. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE OR
REGISTRATION PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS
SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETER-
MINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD
CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT
HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH
(B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE OR REGISTRA-
TION MAY BE REINSTATED, IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER
SOLE DISCRETION, THAT THE LICENSEE OR REGISTRANT HAS CURED ALL DEFICIEN-
CIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSINESS NINETY DAYS AFTER
THE DATE OF SUCH SUSPENSION ORDER, INCLUDING, WITHOUT LIMITATION, MAKING
ANY OVERDUE PAYMENT, HAVING ANY SUCH BANKRUPTCY PETITION DISMISSED OR
HAVING SUCH BOND REINSTATED. OTHERWISE, UNLESS THE SUPERINTENDENT HAS,
IN HIS OR HER SOLE DISCRETION, EXTENDED A SUSPENSION PURSUANT TO PARA-
S. 3726--B 14
GRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, THE LICENSE OF SUCH
LICENSEE OR REGISTRATION OF SUCH REGISTRANT SHALL BE DEEMED TO BE AUTO-
MATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON
SUCH NINETIETH DAY.
4. Except as provided in subdivision two of this section, no license
or registration shall be revoked or suspended except after notice and a
hearing thereon. Any order of suspension issued after notice and a hear-
ing may include as a condition of reinstatement that the licensee or
registrant make restitution to consumers of fees or other charges which
have been improperly charged or collected as determined by the super-
intendent.
[4. Any] 5. WITH THE PRIOR APPROVAL OF THE SUPERINTENDENT, ANY licen-
see or registrant may surrender any license or certificate by delivering
to the superintendent written notice that it thereby surrenders such
license or certificate, but such surrender shall not affect such
licensee's or registrant's civil or criminal liability for acts commit-
ted prior to such surrender. [If such surrender is made after the issu-
ance by the superintendent of a statement of charges and notice of hear-
ing, the superintendent may proceed against the licensee or registrant
as if such surrender had not taken place.]
[4-a. An expiration] 6. A TERMINATION of registration OR LICENSE in
accordance with THIS section [five hundred ninety-two-a of this article]
shall not affect such registrant's OR LICENSEE'S civil or criminal
liability for acts committed prior to such [expirations] TERMINATION.
If such [expiration] TERMINATION occurs after the issuance by the super-
intendent of a statement of charges and notice of hearing, the super-
intendent may proceed against the registrant OR LICENSEE as if such
[expiration] TERMINATION had not taken place.
[5] 7. No revocation, suspension, surrender or [expiration] TERMI-
NATION of any license or certificate shall impair or affect the obli-
gation of any preexisting lawful contract between the licensee or regis-
trant and any person.
[6] 8. Every license or registration issued pursuant to this article
shall remain in force and effect until the same shall have [expired]
TERMINATED in accordance with [section five hundred ninety-two-a of this
article] SUBDIVISION THREE OF THIS SECTION or shall have been surren-
dered, revoked or suspended in accordance with any other provisions of
this article, but the superintendent shall have authority to reinstate a
suspended license or certificate or to issue a new license or certif-
icate to a licensee or registrant whose license or registration shall
have been TERMINATED OR revoked if no fact or condition then exists
which would have warranted the superintendent in refusing originally to
issue such license or registration under this article.
[7] 9. Whenever the superintendent shall revoke or suspend a license
or registration issued pursuant to this article, he shall forthwith
execute in duplicate a written order to that effect. The superintendent
shall file one copy of such order in the office of the department of
banking and shall forthwith serve the other copy upon the licensee or
registrant. Any such order may be reviewed in the manner provided by
article seventy-eight of the civil practice law and rules. Such applica-
tion for review as authorized by this section must be made within thirty
days from the date of such order of suspension or revocation.
[7-a] 10. Whenever a registration shall have [expired] TERMINATED in
accordance with [section five hundred ninety-two-a of] this article, the
superintendent shall notify the registrant that the registration has
[expired] TERMINATED and that the registrant may not engage in the busi-
S. 3726--B 15
ness of soliciting, processing, placing or negotiating a mortgage loan
or offering to solicit, process, place or negotiate a mortgage loan in
this state.
[8] 11. Any hearing held pursuant to the provisions of this section
shall be noticed, conducted and administered in compliance with the
state administrative procedure act.
S 27. Section 254-b of the real property law, as added by chapter 119
of the laws of 1974, is amended to read as follows:
S 254-b. Limitation on late charges AND INCREASED INTEREST RATE. 1.
If a bond or note, or the mortgage on real property, heretofore or here-
after made, improved by a one to six family residence occupied by the
owner, securing the payment of [same] SUCH BOND OR NOTE, or a note
representing a loan for the purpose of financing the purchase of an
ownership interest in, and proprietary lease from, a corporation or
partnership formed for the purpose of the cooperative ownership of resi-
dential real estate, contains a provision whereby the mortgagee or lend-
er retains the right to collect a late charge on any instalment which
has become due and remains unpaid, such charge on any such delinquent
instalment, regardless of the period it remains in default, shall not
exceed and shall only be enforced to the extent of two percent of such
delinquent instalment; provided, however, that no charge shall be
imposed on any instalment paid within fifteen days after the due date.
No such late charge shall be deducted from any regular instalment
payment by the mortgagor or borrower, but shall be separately charged
and collected by the mortgagee or lender. In the absence of a specific
provision in a bond, note or mortgage no late charge on any delinquent
instalment shall be assessed or collected. The term "instalment" shall
include amounts representing interest, amortization of principal and
payments in respect of insurance premiums, taxes and utility charges if
the bond, note or mortgage provides for collection thereof by the mort-
gagee.
2. NO BOND OR NOTE, OR THE MORTGAGE ON REAL PROPERTY IMPROVED BY A
ONE TO SIX FAMILY RESIDENCE OCCUPIED BY THE OWNER, SECURING THE PAYMENT
OF SUCH BOND OR NOTE, OR A NOTE REPRESENTING A LOAN FOR THE PURPOSE OF
FINANCING THE PURCHASE OF AN OWNERSHIP INTEREST IN, AND PROPRIETARY
LEASE FROM, A CORPORATION OR PARTNERSHIP FORMED FOR THE PURPOSE OF THE
COOPERATIVE OWNERSHIP OF RESIDENTIAL REAL ESTATE MAY CONTAIN A PROVISION
WHICH INCREASES THE INTEREST RATE AFTER DEFAULT. THIS PROVISION DOES NOT
APPLY TO INTEREST RATE CHANGES IN A VARIABLE RATE LOAN OTHERWISE
CONSISTENT WITH THE PROVISIONS OF THE LOAN DOCUMENTS; PROVIDED THAT THE
CHANGE IN THE INTEREST RATE IS NOT TRIGGERED BY THE EVENT OF DEFAULT OR
THE ACCELERATION OF THE INDEBTEDNESS.
3. The provisions in this section shall not apply to any loan or
forbearance insured by the federal housing commissioner or for which a
commitment to insure has been made by the federal housing commissioner
or to any loan or forbearance insured or guaranteed pursuant to the
provisions of an act of congress entitled "Servicemen's Readjustment Act
of 1944", or to the extent the provisions of this section are inconsist-
ent with any other federal law or regulation.
[3] 4. If any provision of this section, or the application of such
provision to any individual, company, corporation, or circumstance,
shall be held invalid, the remainder of this section, and the applica-
tion of such section to individuals, companies, corporations, or circum-
stances other than those to which it is held invalid, shall not be
affected thereby.
S. 3726--B 16
S 28. Section 9001-a of the banking law, as added by chapter 321 of
the laws of 1992, subdivisions (a) and (b) as amended and subdivision
(d) as added by chapter 302 of the laws of 2003, is amended to read as
follows:
S 9001-a. Fingerprints. [(a)] 1. Notwithstanding any other provision
of law, every incorporator of a corporation shall, in addition to any
other requirements which may be imposed by the superintendent, submit
simultaneously with an application, his or her fingerprints in such form
and in such manner as specified by the division of criminal justice
services, but in any event, no less than two digit imprints. The super-
intendent shall submit the fingerprints to the division of criminal
justice services for the purpose of conducting a criminal history search
and returning a report thereon in accordance with the procedures and
requirements established by the division pursuant to the provisions of
article thirty-five of the executive law, which shall include the
payment of the prescribed processing fees. The superintendent shall
request that the division submit such fingerprints to the federal bureau
of investigation, together with the processing fees prescribed by such
bureau, for the purpose of conducting a criminal history search and
returning a report thereon.
[(b)] 2. The superintendent [shall] MAY also, concurrent with an
investigation of an incorporator of a corporation pertaining to a
violation of this chapter, submit such fingerprints to the division of
criminal justice services for the purpose of conducting a criminal
history search and returning a report thereon and through the division
to the federal bureau of investigation for the purpose of a fingerprint
check of such incorporator.
[(c)] 3. For purposes of this section, ["incorporator"] "APPLICANT"
SHALL INCLUDE AN INCORPORATOR AND shall include a natural person or such
principal, officer, director, trustee or stockholder of any other entity
as may be designated by the superintendent. Notwithstanding any other
provision of this article, the superintendent shall not access criminal
history data or information, unless any agency from which the super-
intendent receives directly criminal history data or information has
entered into a use and dissemination agreement with the superintendent
consistent with the provisions of this section.
[(d)] 4. An applicant shall not be required to submit his or her fing-
erprints as required by subdivision [(a)] ONE of this section if such
applicant (i) is already subject to regulation by the department and the
applicant has submitted such fingerprints to the department, such fing-
erprints have been submitted to the division of criminal justice
services for the purpose of conducting a criminal history search, and a
report of such search has been received by the department from such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a federal bank regulatory agency and has submitted such fingerprints to
such agency which has had a criminal history search conducted of such
individual and has shared such information or its determination result-
ing from such search with the department WITHIN THE PAST FIVE YEARS; or
(iii) is an officer or stockholder of a corporation whose common or
preferred stock is registered on a national securities exchange, as
provided in an act of congress of the United States entitled the "Secu-
rities Exchange Act of 1934", [approved June sixth, nineteen hundred
thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints to such exchange or market system which has had a criminal
history search conducted of such individual and has shared such informa-
S. 3726--B 17
tion or its determination resulting from such search with the department
WITHIN THE PAST FIVE YEARS; provided, however, that the superintendent
may subsequently require such applicant to submit such fingerprints if
the superintendent has a reasonable basis for updating the information
or determination resulting from the report of the criminal history
search conducted at the request of such federal banking agency, exchange
or market system.
5. WHENEVER AN INCORPORATOR HAS TIMELY FILED HIS OR HER FINGERPRINTS
AS REQUIRED BY THIS SECTION, BUT: (I) THE SUPERINTENDENT HAS NOT
RECEIVED A REPORT OF THE RESULTS OF A RELATED CRIMINAL HISTORY SEARCH;
(II) THE CIRCUMSTANCES WARRANT AN EXPEDITIOUS DETERMINATION; AND (III)
THE SUPERINTENDENT DETERMINES, AFTER CONSIDERING ALL AVAILABLE INFORMA-
TION, THAT THE REMAINING INCORPORATORS HAVE THE CHARACTER, RESPONSIBIL-
ITY AND GENERAL FITNESS SO AS TO WARRANT BELIEF THAT, EVEN IF SUCH
PERSON WERE NOT TO SERVE AS AN INCORPORATOR, SUCH BUSINESS WILL BE
HONESTLY AND EFFICIENTLY OPERATED, THE SUPERINTENDENT MAY WAIVE THE
REQUIREMENT FOR RECEIPT OF SUCH REPORT PRIOR TO APPROVAL, SUBJECT TO
THERE BEING AN ADEQUATE NUMBER OF OTHER INCORPORATORS TO SATISFY THE
REQUIREMENTS OF THIS CHAPTER AND RECEIPT FROM SUCH INCORPORATOR OF HIS
OR HER WRITTEN AGREEMENT TO RESIGN IMMEDIATELY FROM ALL POSITIONS HELD
WITH SUCH ENTITY IF SUCH REPORT DEMONSTRATES, IN THE SOLE DISCRETION OF
THE SUPERINTENDENT, THAT THE INCORPORATOR LACKS THE NECESSARY CHARACTER,
RESPONSIBILITY AND FITNESS.
S 29. Section 128 of the banking law, as amended by chapter 24 of the
laws of 1958, is amended to read as follows:
S 128. Preservation of books and records. Every bank and every trust
company shall preserve all its records of final entry[, including cards
used under the card system and deposit tickets,] for a period of at
least six years from the date of making the same or from the date of the
last entry thereon[; provided, however, that preservation of photograph-
ic reproductions thereof or records in photographic form shall consti-
tute compliance with the requirements of this section] BY ANY MANNER
PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER. Notwithstanding the
foregoing, the banking board may prescribe by regulation such period of
time longer or shorter than six years during which all records kept by
banks and trust companies as fiduciary shall be preserved in original
form.
S 30. Subdivision 3 of section 175 of the banking law, as amended by
chapter 369 of the laws of 1955, is amended to read as follows:
3. Every private banker shall preserve all [his] records of final
entry[, including cards used under the card system and deposit tickets,]
for a period of at least six years from the date of making the same or
from the date of the last entry thereon[; provided, however, that pres-
ervation of photographic reproduction thereof or records in photographic
form shall constitute compliance with the requirements of this section]
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 31. Section 200-c of the banking law, as added by chapter 496 of the
laws of 1993, is amended to read as follows:
S 200-c. Maintenance of books, accounts and records. Every foreign
banking corporation licensed pursuant to this chapter to maintain one or
more branches, agencies or representative offices in this state shall
maintain or make available at any such branch, agency or representative
office appropriate books, accounts and records reflecting (i) all trans-
actions effected by or on behalf of the branch, agency or representative
office and (ii) all actions taken in this state by employees of the
foreign banking corporation located in this state to effect transactions
S. 3726--B 18
on behalf of any office of such foreign banking corporation located
outside this state. SUCH RECORDS SHALL BE PRESERVED FOR A PERIOD OF AT
LEAST SIX YEARS AND SHALL BE PRESERVED BY ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 32. Section 221-h of the banking law, as added by chapter 493 of the
laws of 1979, is amended to read as follows:
S 221-h. Licensee's books and records; reports. A foreign banking
corporation licensed pursuant to this article shall [keep] CREATE or
cause each of its representatives to [keep] CREATE and use such books,
accounts and records as will enable the superintendent to determine
whether the representative is complying with the provisions of this
article and with the rules and regulations lawfully made by the super-
intendent. Such books, accounts and records shall be preserved for at
least three years[; provided however, that preservation by photographic
reproduction thereof or records in photographic form shall constitute
compliance with the requirements of this section] BY ANY MANNER PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
The superintendent may require such regular or special reports as may
be deemed necessary to the proper supervision of licensees under this
article. Such additional reports shall be in the form prescribed by the
superintendent and shall be subscribed and affirmed as true under the
penalties of perjury.
S 33. Section 239-a of the banking law, as added by chapter 164 of the
laws of 2002, is amended to read as follows:
S 239-a. Preservation of books and records. Every savings bank shall
preserve all its records of final entry[, including cards used under the
card system and deposit tickets,] for a period of at least six years
from the date of making the same or from the date of the last entry
thereon[; provided, however, that preservation of photographic reprod-
uctions thereof or records in photographic form shall constitute compli-
ance with the requirements of this section] BY ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER. Notwithstanding the foregoing,
the banking board may prescribe by regulation such period of time longer
or shorter than six years during which all records kept by saving banks
as fiduciary shall be preserved in original form.
S 34. Section 320 of the banking law, as amended by section 29 of part
O of chapter 59 of the laws of 2006, is amended to read as follows:
S 320. Books and records. EVERY SAFE DEPOSIT COMPANY SHALL CREATE
SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTENDENT TO
DETERMINE WHETHER SUCH COMPANY IS COMPLYING WITH THE PROVISIONS OF THIS
ARTICLE AND WITH THE RULES AND REGULATIONS ADOPTED BY THE SUPERINTENDENT
APPLICABLE TO SAFE DEPOSIT COMPANIES, AND SHALL PRESERVE SUCH BOOKS,
ACCOUNTS AND RECORDS FOR A PERIOD OF AT LEAST TWO YEARS FROM THE DATE OF
CREATING THE SAME OR SUCH OTHER PERIOD AS MAY BE ESTABLISHED BY THE
SUPERINTENDENT, INCLUDING PRESERVATION IN ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER. Every safe deposit company shall
conform its methods of keeping its books and records to such orders in
respect thereto as shall have been made and promulgated by the super-
intendent pursuant to the provisions of article two of this chapter. Any
safe deposit company that refuses or neglects to obey such order shall
be subject to a penalty of an amount as determined pursuant to section
forty-four of this chapter for each day it so refuses or neglects.
S 35. The opening paragraph of section 349 of the banking law, as
amended by chapter 499 of the laws of 1995, is amended to read as
follows:
S. 3726--B 19
The licensee shall [keep] CREATE and use in its business such books,
accounts, and records as will enable the superintendent to determine
whether such licensee is complying with the provisions of this article
and with the rules and regulations lawfully made by the superintendent
hereunder. Every licensee shall preserve such books, accounts, and
records[, including cards used in the card system, if any,] for at least
two years after making the final entry on any loan recorded therein.
[Preservation of photographic reproduction thereof or records in photo-
graphic form, including an optical disk storage system and the use of
electronic data processing equipment that provides comparable records to
those otherwise required and which are available for examination upon
request shall constitute compliance with the requirements of this
section] SUCH RECORDS SHALL BE PRESERVED BY ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 36. Subdivision 5 of section 372 of the banking law, as amended by
chapter 151 of the laws of 1945 and as renumbered by chapter 263 of the
laws of 1983, is amended to read as follows:
5. Each licensee shall [keep] CREATE and use in its business such
books, accounts, and records as [the superintendent may require to carry
into effect] WILL ENABLE THE SUPERINTENDENT TO DETERMINE WHETHER SUCH
LICENSEE IS COMPLYING WITH the provisions of this article and the rules
and regulations made by the superintendent hereunder. Every licensee
shall preserve such books, accounts and records for at least two years
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 37. Section 378-d of the banking law, as added by chapter 164 of the
laws of 2002, is amended to read as follows:
S 378-d. Preservation of books and records. Every savings and loan
association shall preserve all its records of final entry[, including
cards used under the card system and deposit tickets,] for a period of
at least six years from the date of making the same or from the date of
the last entry thereon[; provided, however, that preservation of photo-
graphic reproductions thereof or records in photographic form shall
constitute compliance with the requirements of this section] BY ANY
MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER. Notwithstand-
ing the foregoing, the banking board may prescribe by regulation such
period of time longer or shorter than six years during which all records
kept by savings and loan associations as fiduciary shall be preserved in
original form.
S 38. Subdivision 2 of section 485 of the banking law, as added by
chapter 608 of the laws of 1996, is amended to read as follows:
2. Every credit union shall preserve all of its records of [original
and] final entry[, including cancelled checks, withdrawal slips and
deposit tickets,] for a period of at least six years from the date of
making same or from the date of the last entry thereon[; provided,
however, that preservation of photographic reproduction thereof or
records in photographic form shall constitute compliance with the
requirements of this section] BY ANY MANNER PERMITTED BY SECTION THIR-
TY-SIX-B OF THIS CHAPTER.
S 39. The banking law is amended by adding a new section 498-c to read
as follows:
S 498-C. BOOKS AND RECORDS. EVERY LICENSEE SHALL CREATE SUCH BOOKS,
ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTENDENT TO DETERMINE
WHETHER SUCH LICENSEE IS COMPLYING WITH THE PROVISIONS OF THIS ARTICLE
AND WITH THE RULES AND REGULATIONS ADOPTED BY THE SUPERINTENDENT APPLI-
CABLE TO LICENSEES, AND SHALL PRESERVE SUCH BOOKS, ACCOUNTS AND RECORDS
FOR A PERIOD OF AT LEAST TWO YEARS FROM THE DATE OF CREATING THE SAME OR
S. 3726--B 20
SUCH OTHER PERIOD AS MAY BE ESTABLISHED BY THE SUPERINTENDENT, INCLUDING
PRESERVATION IN ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS
CHAPTER.
S 40. Section 515 of the banking law, as amended by chapter 369 of the
laws of 1955, is amended to read as follows:
S 515. Preservation of records of investment company. Every investment
company shall preserve all its records of final entry[, including cards
used under the card system and deposit tickets,] for a period of at
least six years from the date of making the same or from the date of the
last entry thereon[; provided, however, that preservation of photograph-
ic reproduction thereof or records in photographic form shall constitute
compliance with the requirements of this section] BY ANY MANNER PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 41. Subdivision 1 of section 565 of the banking law, as added by
chapter 488 of the laws of 1960, is amended to read as follows:
1. The licensee shall [keep] CREATE and use in his business such
books, accounts and records as will enable the superintendent to deter-
mine whether such licensee is complying with the provisions of this
article and with the rules and regulations lawfully made by the super-
intendent hereunder. Every licensee shall preserve such books, accounts
and records[, including cards used in a card system, if any,] for at
least six years after making the final entry in respect to any premium
finance agreement recorded therein[; provided, however, the preservation
of photographic reproductions thereof or records in photographic form
shall constitute compliance with this requirement] BY ANY MANNER PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 42. Subdivision 1 of section 586 of the banking law, as added by
chapter 448 of the laws of 1975, is amended to read as follows:
1. The licensee shall [keep] CREATE and use in its business such
books, accounts, and records as will enable the superintendent to deter-
mine whether such licensee is complying with the provisions of this
article and with the rules and regulations lawfully made by the super-
intendent hereunder. Every licensee shall preserve such books, accounts,
and records, for at least three years[; provided, however, that preser-
vation by photographic reproduction thereof or records in photographic
form shall constitute compliance with the requirements of this section]
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 43. The opening paragraph of section 597 of the banking law, as
separately amended by chapters 315 and 472 of the laws of 2008, is
amended to read as follows:
Each licensee, servicer, registrant and exempt organization shall
[keep] CREATE and use in its business such books, accounts and records
as will enable the superintendent to determine whether such licensee,
servicer, registrant or exempt organization is complying with the
provisions of this article and with the rules and regulations lawfully
made by the superintendent and the banking board. Every licensee, servi-
cer, registrant and exempt organization shall preserve such books,
accounts, and records, for at least [three] SIX years[; provided, howev-
er, that preservation by photographic reproduction thereof or records in
photographic form, including an optical disk storage system and the use
of electronic data processing equipment that provides comparable records
to those otherwise required] BY ANY MANNER PERMITTED BY SECTION THIRTY-
SIX-B OF THIS CHAPTER and which are available for examination upon
request shall constitute compliance with the requirements of this
section.
S. 3726--B 21
S 44. Section 651-b of the banking law, as added by chapter 374 of the
laws of 1979, is amended to read as follows:
S 651-b. Maintenance of books and records by MONEY TRANSMITTERS AND
agents. Each licensee shall MAKE AND KEEP, AND SHALL require of each of
its agents to make and keep, IN ANY MANNER PERMITTED BY SECTION THIRTY-
SIX-B OF THIS CHAPTER, such accounts, correspondence, memoranda, papers,
books and other records as the superintendent by regulation or order
requires. All records so required shall be preserved for the time speci-
fied by the regulation or order of the superintendent.
S 45. This act shall take effect immediately; provided that section
twenty-seven of this act shall only apply to loans made after the effec-
tive date of this act; provided that sections thirty-five and thirty-
nine of this act shall take effect on the sixtieth day after this act
shall have become a law.
