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

                                  11361

                          I N  A S S E M B L Y

                              June 4, 2010
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. M. Miller,
  Towns) -- (at request of the Banking  Department)  --  read  once  and
  referred to the Committee on Banks

AN  ACT  to  amend the banking law, in relation to powers of the banking
  board, restrictions on employees of the banking department, collecting
  assessments and fees, suspending  mortgage  bankers  and  brokers  for
  cause  and  eliminating outdated language and provisions; to amend the
  real property law, in relation to interest rate increases on  mortgage
  loans  after  default  and to repeal certain provisions of the banking
  law relating thereto

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

  Section  1.  Section  9-q of the banking law, as added by chapter 1 of
the laws of 1994, is amended to read as follows:
  S 9-q. Small business and small farm loans. By September thirtieth  of
each  year,  the superintendent shall make a report to the governor, the
temporary president of the senate, the  speaker  of  the  assembly,  the
chairman AND RANKING MINORITY MEMBER of the senate standing committee on
banks,  and  the  chairman  AND  RANKING MINORITY MEMBER of the assembly
standing committee on banks, of the aggregate outstanding loans made  to
small  businesses and small farms as reported in the periodic reports of
financial condition filed by banking institutions located in this  state
with  the  appropriate  federal  bank regulatory agency. The superinten-
dent's report shall be available to the public.  For  purposes  of  this
section,  "banking  institution"  means any bank, trust company, savings
bank, savings and loan association,  or  branch  of  a  foreign  banking
corporation  the  deposits  of  which are insured by the Federal Deposit
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is REPEALED.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:

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

                                                           LBD09608-11-0

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  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-
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

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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-
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-

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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
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

A. 11361                            5

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
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

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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
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

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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
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

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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
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-

A. 11361                            9

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 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

A. 11361                           10

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
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-

A. 11361                           11

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
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

A. 11361                           12

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;
  (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.

A. 11361                           13

  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-
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-

A. 11361                           14

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-
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.

A. 11361                           15

  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 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

A. 11361                           16

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-
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.

A. 11361                           17

  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
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:

A. 11361                           18

  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:
  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.

A. 11361                           19

[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
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

A. 11361                           20

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 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

A. 11361                           21

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.