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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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| Jan 06, 2010 |
referred to banks |
| Jul 10, 2009 |
referred to banks |
Assembly Bill A9064
2009-2010 Legislative Session
Changes the name of the banking department to the department of banking and financial services
download bill text pdfSponsored By
BENJAMIN
Archive: Last Bill Status - In Assembly Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
co-Sponsors
Dennis H. Gabryszak
Robin Schimminger
Ginny Fields
José Peralta
Marc Alessi
Earlene Hooper
multi-Sponsors
Nancy Calhoun
Clifford Crouch
Francine DelMonte
David Townsend
2009-A9064 (ACTIVE) - Details
- Current Committee:
- Assembly Banks
- Law Section:
- Banking Law
- Laws Affected:
- Amd Various Laws, generally
2009-A9064 (ACTIVE) - Summary
Changes the name of the banking department to the department of banking and financial services; changes the name of the banking board to the banking and financial services board changes the name of the superintendent of banks to the superintendent of banks and financial services.
2009-A9064 (ACTIVE) - Sponsor Memo
BILL NUMBER:A9064
PURPOSE OR GENERAL IDEA OF BILL: To change the New York State Banking
Department name to the New York State Department of Banking and
Financial Services.
SUMMARY OF SPECIFIC PROVISIONS: The banking law, the executive law,
the public officers law, the state finance law, the tax law, the
economic development law, the public authorities law, the general
municipal law, the education law, the social services law, the general
business law, the state administrative procedure act, the abandoned
property law, the general construction law, the private housing
finance law, the real property actions and proceedings law, the real
property law, the real property tax law, the Defense Emergency Act of
1951, the Urban Development Corporation Act, the labor law, the
retirement and social security law, the estates, powers and trusts
law, the insurance law, the limited liability company law, the
not-for-profit corporation law, the partnership law, the personal
property law, the business corporation law, the penal law, the
criminal procedure law, the surrogate's court procedure act and the
civil practice law and rules are amended to reflect the name change.
JUSTIFICATION: This legislation would change the name of the New York
State Banking Department to the New York State Department of Banking
and Financial Services to more accurately reflect the duties and
responsibilities of the department.
2009-A9064 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
9064
2009-2010 Regular Sessions
I N A S S E M B L Y
July 10, 2009
___________
Introduced by M. of A. BENJAMIN -- read once and referred to the Commit-
tee on Banks
AN ACT to amend the banking law, the executive law, the public officers
law, the state finance law, the tax law, the economic development law,
the public authorities law, the general municipal law, the education
law, the social services law, the general business law, the state
administrative procedure act, the abandoned property law, the general
construction law, the private housing finance law, the real property
actions and proceedings law, the real property law, the real property
tax law, the Defense Emergency Act of 1951, the Urban Development
Corporation Act, the labor law, the retirement and social security
law, the estates, powers and trusts law, the insurance law, the limit-
ed liability company law, the not-for-profit corporation law, the
partnership law, the personal property law, the business corporation
law, the penal law, the criminal procedure law, the surrogate's court
procedure act and the civil practice law and rules, in relation to
changing the name of the banking department
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 4, 8, 12 and 13 of section 2 of the banking
law, subdivisions 4 and 8 as amended by chapter 1 of the laws of 1984
and subdivisions 12 and 13 as amended by chapter 638 of the laws of
1981, are amended and a new subdivision 1-a is added to read as follows:
1-A. FINANCIAL SERVICES. THE TERM "FINANCIAL SERVICES" REFERS TO
SERVICES PROVIDED BY THE FINANCE INDUSTRY, ENCOMPASSING A BROAD RANGE OF
ORGANIZATIONS THAT DEAL WITH THE MANAGEMENT OF MONEY. FINANCIAL SERVICES
CAN BE DEFINED AS THE PRODUCTS AND SERVICES OFFERED BY BANKS, CREDIT
CARD COMPANIES, INSURANCE COMPANIES, CONSUMER FINANCE COMPANIES, STOCK
BROKERAGES, INVESTMENT FUNDS AND GOVERNMENT SPONSORED ENTERPRISES, DEAL-
ING WITH LOANS, INSURANCE, CREDIT CARDS, INVESTMENT OPPORTUNITIES AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11990-03-9
A. 9064 2
MONEY MANAGEMENT AS WELL AS PROVIDING INFORMATION ON THE STOCK MARKET
AND OTHER ISSUES LIKE MARKET TRENDS.
4. Savings bank. The term, "savings bank," when used in this chapter,
means any corporation organized under or subject to the provisions of
article six of this chapter. Such term shall include stock-form savings
banks which shall be subject to the provisions of article six of this
chapter to the extent not otherwise provided by the banking AND FINAN-
CIAL SERVICES board pursuant to regulations promulgated under section
fourteen-e of this chapter.
8. Savings and loan association. The term, "savings and loan associ-
ation," when used in this chapter, means any corporation organized under
or subject to the provisions of article ten of this chapter. Such term
shall include stock-form savings and loan associations which shall be
subject to the provisions of article ten of this chapter to the extent
not otherwise provided by the banking AND FINANCIAL SERVICES board
pursuant to regulations promulgated under section fourteen-e of this
chapter.
12. Time deposits. The term, "time deposits," when used in this chap-
ter, and except as provided otherwise by regulation of the banking AND
FINANCIAL SERVICES board, means all deposits the payment of which cannot
legally be required within fourteen days.
13. Demand deposits. The term, "demand deposits," when used in this
chapter, and except as provided otherwise by regulation of the banking
AND FINANCIAL SERVICES board, means deposits payment of which can legal-
ly be required within fourteen days.
S 1-a. Section 166 of the executive law, as amended by chapter 299 of
the laws of 1995, is amended to read as follows:
S 166. Record of appearances. Every regulatory agency of the state
shall keep a record of appearances before it or its appropriate divi-
sions or bureaus of attorneys, agents and representatives appearing on
behalf of any person, firm, corporation or association subject to its
regulatory jurisdiction, for which they receive a fee, which record
shall be open to public inspection. Each regulatory agency shall file
the record with the New York temporary state commission on lobbying on
forms prescribed by the commission. The record shall be filed quarterly
on the fifteenth day of the month following the end of the quarter. The
term "regulatory agency" as used in this section shall mean the [bank-
ing] department OF BANKING AND FINANCIAL SERVICES, insurance department,
state liquor authority, department of agriculture and markets, depart-
ment of education, department of environmental conservation, department
of health, division of housing and community renewal, department of
state, other than the division of corporations and state records,
department of public service, the industrial board of appeals in the
department of labor and the department of law, other than when the
attorney general or his agents or employees are performing duties speci-
fied in section sixty-three of this chapter.
S 2. Subdivisions 24 and 25 of section 292 of the executive law,
subdivision 24 as amended by chapter 632 of the laws of 1976, subdivi-
sion 25 as added by chapter 173 of the laws of 1974 and as renumbered by
chapter 632 of the laws of 1976, are amended to read as follows:
24. The term "regulated creditor", when used in this article, means
any creditor, as herein defined, which has received its charter,
license, or organization certificate, as the case may be, from the
[banking] department OF BANKING AND FINANCIAL SERVICES or which is
otherwise subject to the supervision of the [banking] department OF
BANKING AND FINANCIAL SERVICES.
A. 9064 3
25. The term "superintendent", when used in this article, means the
head of the [banking] department OF BANKING AND FINANCIAL SERVICES
appointed pursuant to section twelve of the banking law.
S 3. Subdivision 9 of section 296-a of the executive law, as added by
chapter 173 of the laws of 1974, is amended to read as follows:
9. Whenever any creditor makes application to the superintendent or
the banking AND FINANCIAL SERVICES board to take any action requiring
consideration by the superintendent or such board of the public interest
and the needs and convenience thereof, or requiring a finding that the
financial responsibility, experience, charter, and general fitness of
the applicant, and of the members thereof if the applicant be a co-part-
nership or association, and of the officers and directors thereof if the
applicant be 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, such creditor shall certify to the
superintendent compliance with the provisions of this section. In the
event that the records of the [banking] department OF BANKING AND FINAN-
CIAL SERVICES show that such creditor has been found to be in violation
of this section, such creditor shall describe what action has been taken
with respect to its credit policies and procedures to remedy such
violation or violations. The superintendent shall, in approving the
foregoing applications and making the foregoing findings, give appropri-
ate weight to compliance with this section.
S 4. Subdivision 9 of section 835 of the executive law, as amended by
chapter 602 of the laws of 2008, is amended to read as follows:
9. "Qualified agencies" means courts in the unified court system, the
administrative board of the judicial conference, probation departments,
sheriffs' offices, district attorneys' offices, the state department of
correctional services, the state division of probation, the department
of correction of any municipality, the insurance frauds bureau of the
state department of insurance, the office of professional medical
conduct of the state department of health for the purposes of section
two hundred thirty of the public health law, the child protective
services unit of a local social services district when conducting an
investigation pursuant to subdivision six of section four hundred twen-
ty-four of the social services law, the office of Medicaid inspector
general, the temporary state commission of investigation, the criminal
investigations bureau of the [banking] department OF BANKING AND FINAN-
CIAL SERVICES, police forces and departments having responsibility for
enforcement of the general criminal laws of the state and the Onondaga
County Center for Forensic Sciences Laboratory when acting within the
scope of its law enforcement duties.
S 5. Paragraph (e) of subdivision 1 of section 73 of the public offi-
cers law, as amended by chapter 813 of the laws of 1987, is amended to
read as follows:
(e) The term "regulatory agency" shall mean the [banking] department
OF BANKING AND FINANCIAL SERVICES, insurance department, state liquor
authority, department of agriculture and markets, department of educa-
tion, department of environmental conservation, department of health,
division of housing and community renewal, department of state, other
than the division of corporations and state records, department of
public service, the industrial board of appeals in the department of
labor and the department of law, other than when the attorney general or
his agents or employees are performing duties specified in section
sixty-three of the executive law.
A. 9064 4
S 6. Clause (ii) of subparagraph (B) of paragraph (a) of subdivision 8
of section 5 of the state finance law, as amended by chapter 201 of the
laws of 1997, is amended to read as follows:
(ii) is licensed or chartered by the [state banking] department OF
BANKING AND FINANCIAL SERVICES,
S 7. Paragraphs (ii) of subdivisions 6 and 7 of section 201 of the
state finance law, as amended by chapter 233 of the laws of 1992, are
amended to read as follows:
(ii) is licensed or chartered by the [state banking] department OF
BANKING AND FINANCIAL SERVICES,
(ii) is licensed or chartered by the [state banking] department OF
BANKING AND FINANCIAL SERVICES,
S 8. Paragraph b of subdivision 1 of section 208 of the state finance
law, as added by chapter 460 of the laws of 1982, is amended to read as
follows:
b. The term "financial organization" as used in this section shall
mean an organization which is authorized to do business in the state of
New York, and is licensed or chartered by the state insurance department
or the [state banking] department OF BANKING AND FINANCIAL SERVICES, is
chartered by an agency of the federal government, or is subject to the
jurisdiction of the securities and exchange commission.
S 9. Subdivision 2 of section 222 of the state finance law, as amended
by chapter 25 of the laws of 1995, is amended to read as follows:
2. On or before February first, nineteen hundred ninety-five, and
annually thereafter the commissioner of economic development shall
submit to the governor, the temporary president of the senate and the
speaker of the assembly a report regarding the activities of the
program. Such report shall contain a statement of the cost of the
program to the state and to the public authorities, considered as a
whole, because of reduced rates on funds invested in linked deposits.
Such report shall also include, but shall not be limited to, the number
and type of linked loans under the program and the amount thereof; the
number and types of lenders making linked loans and of firms receiving
linked loans; the geographic distribution of such lenders and firms; the
approximate number of jobs created or retained as a result of the
program; actions taken by the department of economic development and the
[banking] department OF BANKING AND FINANCIAL SERVICES to secure the
increased participation of lenders in economic development regions in
which fewer than ten linked loans have been made on or before April
first, nineteen hundred ninety-five; actions taken by the department of
economic development to secure the increased participation of public
authorities and public benefit corporations pursuant to section ninety-
two-v of this chapter; as well as any information the commissioner
determines useful in evaluating the economic benefits of the program.
S 10. Section 223 of the state finance law, as amended by chapter 25
of the laws of 1995, is amended to read as follows:
S 223. Promotion of program. The department, through its regional
offices and with the assistance of the [banking] department OF BANKING
AND FINANCIAL SERVICES and other appropriate state agencies and public
benefit corporations, shall actively market and promote awareness of the
program in all geographical areas of the state among banks, banking
organizations, manufacturing firms, manufacturing organizations, and
regional and local economic development agencies. In soliciting lenders
to participate in the program, on or before April first, nineteen
hundred ninety-six, the commissioner of economic development shall give
priority to the solicitation of lenders seeking to make linked loans in
A. 9064 5
economic development regions in which fewer than ten linked loans have
been made on or before April first, nineteen hundred ninety-five.
Provided, however, that the granting of such priority shall in no way
relieve the commissioner of economic development of the duty and obli-
gation to solicit lenders from all economic development regions of the
state.
S 11. Subsection (c) of section 1450 of the tax law, as amended by
chapter 298 of the laws of 1985, is amended to read as follows:
(c) The term "international banking facility" shall mean an interna-
tional banking facility located in New York state and shall have the
same meaning as is set forth in the New York state banking law or regu-
lations of the New York state [banking] department OF BANKING AND FINAN-
CIAL SERVICES or as is set forth in the laws of the United States or
regulations of the board of governors of the federal reserve system.
S 12. Subdivision 1 of section 161 of the executive law, as separately
amended by chapters 430 and 636 of the laws of 1969, is amended to read
as follows:
1. Each of the following officers, to wit: the secretary of state, the
comptroller, the commissioner of taxation and finance, the attorney
general, the public service commission, the commissioner of agriculture
and markets, the commissioner of transportation, the industrial commis-
sioner, the chairman of the state labor relations board, the chairman of
the state liquor authority, the superintendent of banks AND FINANCIAL
SERVICES, the superintendent of insurance, the state commissioner of
human rights, the commissioner of general services and the commissioner
of housing and community renewal may require search to be made, in the
office of any of the others, or of a county clerk or of the clerk of a
court of record, for any record, document, or paper, where he deems it
necessary for the discharge of his official duties, and a copy thereof,
or extracts therefrom, to be made and officially certified or exempli-
fied, without the payment of any fee or charge.
S 13. Subdivision 1 of section 220 of the economic development law, as
amended by chapter 291 of the laws of 1990, is amended to read as
follows:
1. To coordinate the international economic activities of the state
including any international economic activities of the department of
agriculture and markets, the [banking] department OF BANKING AND FINAN-
CIAL SERVICES, the insurance department, the education department, the
state university of New York, the city university of New York, the New
York state science and technology foundation, the New York state urban
development corporation, the New York state job development authority,
the port authority of New York and New Jersey, and other New York state
agencies.
S 14. Paragraph (b) of subdivision 3 of section 1801 of the public
authorities law, as amended by chapter 839 of the laws of 1992, is
amended to read as follows:
(b) any agency or branch of a foreign banking corporation licensed by
the [banking] department OF BANKING AND FINANCIAL SERVICES under article
five of the banking law,
S 15. Section 1830 of the public authorities law, as amended by chap-
ter 118 of the laws of 1990, is amended to read as follows:
S 1830. Cooperation and assistance from other state agencies. The
department of economic development, the department of labor, the [bank-
ing] department OF BANKING AND FINANCIAL SERVICES, the department of
state and all other state agencies shall cooperate with and assist the
authority in the fulfillment of its corporate purposes and in the exer-
A. 9064 6
cise of its corporate powers under this title and may render such
services to the authority within their respective functions as may be
requested by the authority.
S 16. Paragraph (b) of subdivision 3 of section 1835-a of the public
authorities law, as added by chapter 508 of the laws of 1984, is amended
to read as follows:
(b) any agency or branch of a foreign banking corporation licensed by
the [banking] department OF BANKING AND FINANCIAL SERVICES under article
five of the banking law,
S 17. Subdivision 4 of section 2405 of the public authorities law, as
amended by chapter 915 of the laws of 1982, is amended to read as
follows:
(4) In the case of individual borrowers, new mortgages made by banks
that sell existing mortgages to the agency shall bear interest computed
in accordance with section 5-501 of the general obligations law (whether
or not insured or guaranteed by the United States of America or any
agency thereof) at a rate which does not exceed the maximum interest
rate, if any, set by the agency for such mortgages. The agency may set
such a maximum interest rate chargeable to individual borrowers on such
new mortgages, notwithstanding the maximum interest rate, if any, fixed
by section 5-501 of the general obligations law or any other law not
specifically amending or applicable to this section, at the rate that
the existing mortgages purchased by the agency were discounted to yield
plus an interest differential, not in excess of one percent per annum,
which the agency from time to time shall determine to be adequate
consideration to induce such banks to sell existing mortgages to the
agency and to loan an amount equal to the proceeds on new mortgages in
furtherance of the purposes of and subject to the conditions of this
title. In the case of corporate borrowers, such new mortgages shall bear
interest at a rate not substantially lower than the rate of interest
that banks are charging at the time of commitment on comparable new
mortgages. Each such bank that sells existing mortgages to the agency
shall annually account and pay over to the agency or to the New York
state housing finance agency for deposit in and for the purposes of the
low rent lease account as set forth in paragraphs (a) and (b) of subdi-
vision four of section forty-four-a of the private housing finance law
or any successor entity as the agency may direct, or to both the agency
and the New York state housing finance agency for such deposit and
purposes in such proportions as the agency may direct, an amount equal
to the difference between (a) the total amount of interest (which shall
include all charges to individual and corporate borrowers that would be
treated as interest under section 5-501 of the general obligations law
and any regulations of the banking AND FINANCIAL SERVICES board pursuant
to section fourteen-a of the banking law) received by it during the
preceding year on all such new mortgages and (b) the total amount of
interest which such new mortgages would have yielded if the interest
thereon had been at the maximum rate chargeable to individual borrowers
on such new mortgages plus an additional interest differential, not in
excess of one percent per annum, determined by the agency to be adequate
consideration to induce participating banks to make new loans on multi-
ple dwellings.
S 18. Subdivision 4 of section 2405 of the public authorities law, as
amended by chapter 1023 of the laws of 1971, is amended to read as
follows:
(4) In the case of individual borrowers, such new mortgages shall bear
interest computed in accordance with section 5-501 of the general obli-
A. 9064 7
gations law (whether or not insured or guaranteed by the United States
of America or any agency thereof) at a rate which does not exceed the
maximum interest rate, if any, set by the agency for such mortgages. The
agency may set such a maximum interest rate chargeable individual
borrowers on such new loans, notwithstanding the maximum interest rate
fixed by section 5-501 of the general obligations law, at the rate that
the mortgages purchased by the agency were discounted to yield plus an
interest differential, not in excess of one percent per annum, which the
agency from time to time shall determine to be adequate consideration to
induce such banks to sell existing mortgages to the agency and to loan
an amount equal to the proceeds on new mortgages in furtherance of the
purposes of and subject to the conditions of this title. In the case of
corporate borrowers, such new mortgages shall bear interest at a rate
not substantially lower than the rate of interest that banks are charg-
ing at the time of commitment on comparable new mortgage loans. Each
such bank shall annually account and pay over to the agency or to the
New York state housing finance agency for deposit in and for the
purposes of the low rent lease account as set forth in paragraphs (a)
and (b) of subdivision four of section forty-four-a of the private hous-
ing finance law or any successor entity as the agency may direct, or to
both the agency and the New York state housing finance agency for such
deposit and purposes in such proportions as the agency may direct, an
amount equal to the difference between (a) the total amount of interest
(which shall include all charges to individual and corporate borrowers
that would be treated as interest under section 5-501 of the general
obligations law and any regulations of the banking AND FINANCIAL
SERVICES board pursuant to section fourteen-a of the banking law)
received by it during the preceding year on all such new mortgages and
(b) the total amount of interest which such mortgages would have yielded
if the interest thereon had been at the maximum rate chargeable individ-
ual borrowers on such new loans plus an additional interest differen-
tial, not in excess of one percent per annum, determined by the agency
to be adequate consideration to induce participating banks to make new
loans on multiple dwellings.
S 19. Subdivision 6 of section 2405-b of the public authorities law,
as added by chapter 915 of the laws of 1982, is amended to read as
follows:
(6) The agency shall require the submission to it by each bank from
which the agency has purchased forward commitment mortgages evidence
satisfactory to the agency of the making, and if applicable, the servic-
ing, of such forward commitment mortgages in conformity with such bank's
undertaking with the agency and in connection therewith may, through its
employees or agents or those of the [banking] department OF BANKING AND
FINANCIAL SERVICES, inspect the books and records of any such bank.
S 20. Paragraph (b) of subdivision 1 of section 169 of the executive
law, as amended by section 1 of part F of chapter 56 of the laws of
2005, is amended to read as follows:
(b) commissioner of labor, chairman of public service commission,
commissioner of taxation and finance, superintendent of banks AND FINAN-
CIAL SERVICES, commissioner of criminal justice services, superintendent
of insurance, and commissioner of parks, recreation and historic preser-
vation;
S 21. Subdivision 6 of section 2405-c of the public authorities law,
as added by chapter 915 of the laws of 1982 and as renumbered by chapter
353 of the laws of 1984, is amended to read as follows:
A. 9064 8
(6) The agency shall require the submission to it by each bank from
which the agency has purchased new housing loans evidence satisfactory
to the agency of the making, and if applicable, the servicing, of such
new housing loans in conformity with such bank's undertaking with the
agency and in connection therewith may, through its employees or agents
or those of the [banking] department OF BANKING AND FINANCIAL SERVICES,
inspect the books and records of any such bank.
S 22. Paragraph (e) of subdivision 4 of section 10 of the general
municipal law, as amended by chapter 623 of the laws of 1998, is amended
to read as follows:
(e) A bank or trust company may, from time to time and as agreed upon
with a local government, reimburse all or part of, but not more than,
the actual cost incurred by the local government in transporting cash,
negotiable instruments or other items for deposit through a courier
service. Any such reimbursement agreement shall apply only to a speci-
fied deposit transaction, and may be subject to such terms, conditions
and limitations as the bank or trust company deems necessary to ensure
sound banking practices, including, but not limited to, any terms,
conditions or limitations that may be required by the [banking] depart-
ment OF BANKING AND FINANCIAL SERVICES or other federal or state author-
ity.
S 23. Paragraph (iii) of subdivision 15 of section 215 of the general
municipal law, as added by chapter 714 of the laws of 2006, is amended
to read as follows:
(iii) licensed or chartered by the state [banking] department OF BANK-
ING AND FINANCIAL SERVICES;
S 24. Paragraph (iii) of subdivision 14 of section 219-c of the gener-
al municipal law, as amended by chapter 514 of the laws of 1998, is
amended to read as follows:
(iii) licensed or chartered by the state [banking] department OF BANK-
ING AND FINANCIAL SERVICES;
S 25. Paragraph (c) of subdivision 19 of section 219-k of the general
municipal law, as added by chapter 558 of the laws of 1998, is amended
to read as follows:
(c) licensed or chartered by the state [banking] department OF BANKING
AND FINANCIAL SERVICES;
S 26. Subparagraph (ii) of paragraph (b) of subdivision 4 of section
695-b of the education law, as added by chapter 546 of the laws of 1997,
is amended to read as follows:
(ii) is licensed or chartered by the [banking] department OF BANKING
AND FINANCIAL SERVICES,
S 27. Clause (iv) of subparagraph 2 of paragraph (b) of subdivision 2
of section 366 of the social services law, as amended by chapter 656 of
the laws of 1997, is amended to read as follows:
(iv) The department shall promulgate such regulations as may be neces-
sary to carry out the provisions of this subparagraph. Such regulations
shall include provisions for: assuring the fulfillment of fiduciary
obligations of the trustee with respect to the remainder interest of the
department or state; monitoring pooled trusts; applying this subdivision
to legal instruments and other devices similar to trusts, in accordance
with applicable federal rules and regulations; and establishing proce-
dures under which the application of this subdivision will be waived
with respect to an applicant or recipient who demonstrates that such
application would work an undue hardship on him or her, in accordance
with standards specified by the secretary of the federal department of
health and human services. Such regulations may require: notification of
A. 9064 9
the department of the creation or funding of such a trust for the bene-
fit of an applicant for or recipient of medical assistance; notification
of the department of the death of a beneficiary of such a trust who is a
current or former recipient of medical assistance; in the case of a
trust, the corpus of which exceeds one hundred thousand dollars, notifi-
cation of the department of transactions tending to substantially
deplete the trust corpus; notification of the department of any trans-
actions involving transfers from the trust corpus for less than fair
market value; the bonding of the trustee when the assets of such a trust
equal or exceed one million dollars, unless a court of competent juris-
diction waives such requirement; and the bonding of the trustee when the
assets of such a trust are less than one million dollars, upon order of
a court of competent jurisdiction. The department, together with the
[banking] department OF BANKING AND FINANCIAL SERVICES, shall promulgate
regulations governing the establishment, management and monitoring of
trusts established pursuant to subclause (B) of clause (iii) of this
subparagraph in which a not-for-profit corporation and a trust company
serve as co-trustees.
S 28. Section 165 of the general business law, as added by chapter 354
of the laws of 1921, is amended to read as follows:
S 165. Application of article. This article shall not apply to any
person, firm, corporation or association under the supervision of the
[banking] department OF BANKING AND FINANCIAL SERVICES.
S 29. Subdivisions 1 and 2 of section 520-c of the general business
law, as added by chapter 1 of the laws of 1994, are amended to read as
follows:
1. The [banking] department OF BANKING AND FINANCIAL SERVICES shall
establish a toll-free telephone number service at which information on
annual percentage rates, annual fees, per-transaction charges, late
payment fees, overlimit fees and grace periods for credit cards can be
obtained. Every issuer of credit cards to natural persons residing in
this state shall set forth on each solicitation, application and monthly
billing statement mailed or otherwise presented to such persons, a
notice stating "New York residents may contact the New York state [bank-
ing] department OF BANKING AND FINANCIAL SERVICES to obtain a compar-
ative listing of credit card rates, fees and grace periods." Such notice
shall be printed on the same side as the disclosure of rates, fees and
charges, in case of the solicitations and applications, and on the same
side as the notice of the balance of the account and the amount due are
printed, in the case of the monthly billing statement. The superinten-
dent of banks AND FINANCIAL SERVICES shall prescribe the address and
telephone number to be printed next to the notice. The notice shall be
in type no smaller than eight points. Issuers shall include such notice
in materials sent to residents of this state as required under this
section commencing October first, nineteen hundred ninety-four.
2. The superintendent of banks AND FINANCIAL SERVICES shall develop
and distribute to all issuers of credit cards, no more than thirty days
after the effective date of this section, a form which shall be used for
the purpose of collecting information on annual percentage rates, annual
fees, per-transaction charges, late payment fees, overlimit fees and
grace periods governed by the terms of each type of credit card offered
by such issuer to natural persons residing in this state. Issuers shall
return the forms to the [banking] department OF BANKING AND FINANCIAL
SERVICES no later than one hundred fifty days after the effective date
of this section, and annually thereafter, but no later than April first
of each year, commencing in nineteen hundred ninety-five. The super-
A. 9064 10
intendent of banks AND FINANCIAL SERVICES shall publish the information
obtained from such forms and make it available to New York residents
upon request, commencing not later than October first, nineteen hundred
ninety-four, and annually thereafter but not later than July first of
each year.
S 30. Subdivision 3 of section 63 of the executive law, as amended by
chapter 766 of the laws of 2005, is amended to read as follows:
3. Upon request of the governor, comptroller, secretary of state,
commissioner of transportation, superintendent of insurance, superinten-
dent of banks AND FINANCIAL SERVICES, commissioner of taxation and
finance, commissioner of motor vehicles, or the state inspector general,
or the head of any other department, authority, division or agency of
the state, investigate the alleged commission of any indictable offense
or offenses in violation of the law which the officer making the request
is especially required to execute or in relation to any matters
connected with such department, and to prosecute the person or persons
believed to have committed the same and any crime or offense arising out
of such investigation or prosecution or both, including but not limited
to appearing before and presenting all such matters to a grand jury.
S 31. The opening paragraph of subdivision 1 and subdivision 3 of
section 5 of the banking law, the opening paragraph of subdivision 1 as
amended by chapter 556 of the laws of 1951 and subdivision 3 as added by
chapter 275 of the laws of 1946, are amended to read as follows:
Subject to such regulations and restrictions as the banking AND FINAN-
CIAL SERVICES board finds to be necessary and proper,
3. The foregoing provisions of this section shall not apply to loans
insured pursuant to section five hundred eight of the "Servicemen's
Readjustment Act of 1944," but the banking AND FINANCIAL SERVICES board
shall have power to authorize banking organizations and the savings and
loan bank of the state of New York to make and invest in such loans upon
such terms and conditions as it shall prescribe. Nothing contained in
this section shall prevent loans guaranteed or insured pursuant to the
"Servicemen's Readjustment Act of 1944" from being made or invested in
under, and subject to the limitations and restrictions of, other
provisions of this chapter.
S 32. Section 6 of the banking law, as added by chapter 608 of the
laws of 1948, is amended to read as follows:
S 6. Investment in obligations of housing corporations indirectly
guaranteed pursuant to the "Servicemen's Readjustment Act of 1944".
Subject to such regulations and restrictions as the banking AND FINAN-
CIAL SERVICES board finds to be necessary and proper, any bank, trust
company or savings bank may invest in obligations of any corporation
organized under any law of this state for the purpose of acquiring,
constructing, owning, maintaining, operating, selling or conveying a
housing project or projects (not including hotels but including accommo-
dations for retail stores, shops, offices and other community services
reasonably incident to such projects) located within this state, which
obligations are (a) secured by a first mortgage lien on such project, or
such part thereof, as was or is to be constructed or acquired out of the
proceeds of such obligations, either directly or by issue under an
indenture of mortgage from such corporation to a corporate trustee
having its principal office in this state, and (b) guaranteed indirectly
through the pledge as security therefor of obligations directly guaran-
teed under title three of an act of congress entitled the "Servicemen's
Readjustment Act of 1944", in an aggregate amount equal to at least
thirty per centum of the principal amount of all sums advanced to such
A. 9064 11
corporation under the loan instrument or indenture during the period of
construction and, upon completion, to the extent of at least forty per
centum of the principal amount of such obligations.
S 33. Subdivisions 1 and 3 of section 6-a of the banking law, subdivi-
sion 1 as amended and subdivision 3 as added by chapter 207 of the laws
of 1982, are amended to read as follows:
1. Subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper and notwith-
standing any inconsistent provision of this chapter to the contrary, any
bank, trust company, savings bank, savings and loan association, or life
insurance company authorized to do business in this state may make loans
described in subdivision two of this section.
3. Subject to regulations of the banking AND FINANCIAL SERVICES board,
banking institutions described in subdivision one of this section which
make loans pursuant to this section may, pursuant to the loan agreement,
utilize part or all of the proceeds of such loan to make direct payment
of real property taxes, special ad valorem levies, and special assess-
ments on the property which secures such loan. Any such institution
which retains part or all of the proceeds of such loan for the purpose
of making direct payment of such real property taxes, special ad valorem
levies, and special assessments shall be liable to such borrower, upon
failure to pay such taxes, levies, and assessments for the amount of
such taxes, levies, and assessments plus penalties and interest imposed
thereon.
S 34. Section 6-e of the banking law, as amended by chapter 550 of the
laws of 1986, is amended to read as follows:
S 6-e. Graduated payment mortgages authorized. Notwithstanding any
inconsistent provision of this chapter or other law and in addition to
any other power exercisable by it, every banking organization, licensed
mortgage banker, national banking association, federal savings bank,
federal savings and loan association and federal credit union shall have
the power to offer graduated payment mortgages and loans which conform
to the provisions of section two hundred seventy-nine of the real prop-
erty law, subject to the rules and regulations prescribed by the banking
AND FINANCIAL SERVICES board.
S 35. Section 6-f of the banking law, as added by chapter 883 of the
laws of 1980, subdivision 1 as amended by chapter 1 of the laws of 1983,
is amended to read as follows:
S 6-f. Alternative mortgage instruments made by banks, trust compa-
nies, savings banks, savings and loan associations and credit unions. 1.
Notwithstanding any inconsistent provision of this chapter or any other
law of this state, the banking AND FINANCIAL SERVICES board is author-
ized to adopt such rules or regulations as shall permit banks, trust
companies, foreign banking corporations licensed to maintain a branch or
agency in this state, savings banks, savings and loan associations,
credit unions and persons and entities engaging in the business
described in section five hundred ninety of article [twelve-d] TWELVE-D
of this chapter to make residential mortgage loans and cooperative
apartment unit loans which provide for (a) periodic readjustments of the
rate of interest charged for the loan or successive terms of the loan or
(b) terms of loan which are shorter than the term of the mortgage or (c)
repayment of the principal amount of the loan by regular payments which
are not equal in amount throughout the term of the mortgage or (d) any
combination of paragraphs (a), (b) and (c) [above] OF THIS SUBDIVISION,
subject to the provisions of subdivision two of this section.
A. 9064 12
2. Any rules or regulations which are adopted by the banking AND
FINANCIAL SERVICES board pursuant to subdivision one of this section:
(a) shall provide for disclosures and notices to the borrower with
respect to the terms and conditions of the loan and the mortgage, and
the banking AND FINANCIAL SERVICES board may require the adoption of
uniform disclosure and notice forms for this purpose;
(b) shall provide for the conditions governing renewals of the term of
the loan;
(c) shall not permit any uninsured loan secured by residential real
property to be made in an amount exceeding ninety percent of the
appraised value of the property; and
(d) shall not allow, with respect to any specific alternative mortgage
instrument which permits a periodic readjustment of the rate charged on
the loan, for a greater change in rate than that permitted under federal
law or regulations to federally-chartered banking organizations located
in this state for loans made pursuant to an equivalent alternative mort-
gage instrument.
S 36. Section 6-h of the banking law, as amended by chapter 613 of the
laws of 1993, is amended to read as follows:
S 6-h. Reverse mortgage loans authorized. Notwithstanding any incon-
sistent provision of law, in addition to any other power exercised by
it, every authorized lender, as defined by section two hundred eighty or
two hundred eighty-a of the real property law, shall have the power to
offer reverse mortgage loans (1) which conform to the provisions of
section two hundred eighty or two hundred eighty-a of the real property
law and the rules and regulations promulgated by the banking AND FINAN-
CIAL SERVICES board; or (2) which conform to the requirements of the
federal housing administration's home equity conversion mortgage insur-
ance demonstration program for as long as such program exists as
provided for in section 1715Z-20 of title 12 of the United States Code.
"Reverse mortgage" shall mean the mortgage, deed of trust or other secu-
rity instrument relating to a particular reverse mortgage loan trans-
action.
S 37. Section 6-i of the banking law, as added by chapter 571 of the
laws of 1986, is amended to read as follows:
S 6-i. Mortgage loans. No person, partnership, corporation, banking
organization, exempt organization as defined in section five hundred
ninety of this chapter or other entity shall make a mortgage loan as
defined in section five hundred ninety of this chapter except in
conformity with the requirements of article twelve-D and in compliance
with such rules and regulations as may be promulgated by the banking AND
FINANCIAL SERVICES board or prescribed by the superintendent under this
section. Nothing in this section shall be construed to limit or other-
wise modify any otherwise applicable requirement of state or federal
law.
S 38. Paragraph (c) of subdivision 2 of section 6-k of the banking
law, as added by chapter 563 of the laws of 1992, is amended to read as
follows:
(c) Every mortgage investing institution shall deposit funds from a
real property insurance escrow account of a mortgagor in a banking
institution whose deposits are insured by a federal agency or a licensed
branch of a foreign banking corporation whose deposits are insured by a
federal agency. Notwithstanding the foregoing provisions of this subdi-
vision, the banking AND FINANCIAL SERVICES board shall have the power,
by a three-fifths vote of all its members, to exempt from the require-
A. 9064 13
ments of this subdivision any banking organization which does not
receive deposits or share accounts from the general public.
S 39. Subparagraph (i) of paragraph (l) of subdivision 2 of section
6-l of the banking law, as added by chapter 626 of the laws of 2002, is
amended to read as follows:
(i) No lending without counseling disclosure and list of counselors.
A lender or mortgage broker must deliver, place in the mail, fax or
electronically transmit the following notice in at least twelve point
type to the borrower at the time of application: "You should consider
financial counseling prior to executing loan documents. The enclosed
list of counselors is provided by the New York State [Banking] Depart-
ment OF BANKING AND FINANCIAL SERVICES". In the event of a telephone
application, the disclosures must be made immediately after receipt of
the application by telephone. Such disclosure shall be on a separate
form. In order to utilize an electronic transmission, the lender or
broker must first obtain either written or electronically transmitted
permission from the borrower. A list of approved counselors, available
from the New York state [banking] department OF BANKING AND FINANCIAL
SERVICES, shall be provided to the borrower by the lender or the mort-
gage broker at the time that this disclosure is given.
S 40. Subparagraph (ii) of paragraph (l) of subdivision 2 of section
6-l of the banking law, as amended by chapter 472 of the laws of 2008,
is amended to read as follows:
(ii) A lender or mortgage broker shall not make or arrange a high-cost
home loan unless either the lender or mortgage broker has given the
following notice in writing to the borrower within three days after
determining that the loan is a high-cost home loan, but no less than ten
days before closing:
"CONSUMER CAUTION AND HOME OWNERSHIP COUNSELING NOTICE
If you obtain this loan, which pursuant to New York State Law is a
High-Cost Home Loan, the lender will have a mortgage on your home. You
could lose your home, and any money you have put into it, if you do not
meet your obligations under the loan.
You should shop around and compare loan rates and fees. Mortgage loan
rates and closing costs and fees vary based on many factors, including
your particular credit and financial circumstances, your earnings histo-
ry, the loan-to-value requested, and the type of property that will
secure your loan. The loan rate and fees could vary based on which lend-
er or mortgage broker you select. Higher rates and fees may be related
to the individual circumstances of a particular consumer's application.
You should consider consulting a qualified independent credit counse-
lor or other experienced financial adviser regarding the rate, fees, and
provisions of this mortgage loan before you proceed. The enclosed list
of counselors is provided by the New York State [Banking] Department OF
BANKING AND FINANCIAL SERVICES.
You are not required to complete any loan agreement merely because you
have received these disclosures or have signed a loan application. If
you proceed with this mortgage loan, you should also remember that you
may face serious financial risks if you use this loan to pay off credit
card debts and other debts in connection with this transaction and then
subsequently incur significant new credit card charges or other debts.
If you continue to accumulate debt after this loan is closed and then
experience financial difficulties, you could lose your home and any
equity you have in it if you do not meet your mortgage loan obligations.
A. 9064 14
Your payments on existing debts contribute to your credit ratings. You
should not accept any advice to ignore your regular payments to your
existing creditors."
S 41. Subparagraph (ii) of paragraph (c) of subdivision 1 and para-
graph (j) of subdivision 2 of section 6-m of the banking law, as added
by chapter 472 of the laws of 2008, are amended to read as follows:
(ii) Notwithstanding the comparable rates set forth in this paragraph,
and notwithstanding any other law, if the superintendent determines that
by statute, rule or regulation, different thresholds for determining
underwriting standards for subprime loans become applicable to
nationally chartered lending institutions, or the provisions of this
section have had an unduly negative effect upon the availability or
price of mortgage financing in this state, the superintendent may from
time to time designate such other threshold rates as may be necessary to
achieve parity between such nationally chartered institutions and bank-
ing organizations, mortgage banks and mortgage brokers in this state or
to alleviate such unduly negative effects. Such determination shall
promptly be published on the website of the [banking] department OF
BANKING AND FINANCIAL SERVICES.
(j) No lending without counseling disclosure and list of counselors. A
lender or mortgage broker must deliver, place in the mail, fax or elec-
tronically transmit the following notice in at least twelve point type
to the borrower of a subprime home loan at the time of application:
"You should consider financial counseling prior to executing loan docu-
ments. The enclosed list of counselors is provided by the New York State
[Banking] Department OF BANKING AND FINANCIAL SERVICES." In the event
of a telephone application, the disclosures must be made immediately
after receipt of the application by telephone. Such disclosure shall be
on a separate form. In order to utilize an electronic transmission, the
lender or broker must first obtain either written or electronically
transmitted permission from the borrower. A list of approved counselors,
available from the New York state [banking] department OF BANKING AND
FINANCIAL SERVICES, shall be provided to the borrower by the lender or
the mortgage broker at the time that this disclosure is given.
S 42. Subdivision 3 of section 7 of the banking law, as added by chap-
ter 184 of the laws of 1978, is amended to read as follows:
3. The banking AND FINANCIAL SERVICES board may promulgate such regu-
lations as it deems necessary and proper to implement and define the
provisions of this section.
S 42-a. Section 9-d of the banking law, as added by chapter 173 of the
laws of 1974, is amended to read as follows:
S 9-d. Enforcement of section two hundred ninety-six-a of the execu-
tive law. In addition to the powers conferred upon the superintendent of
banks AND FINANCIAL SERVICES by this chapter, he OR SHE shall enforce
section two hundred ninety-six-a of the executive law by taking such
action as is therein authorized.
S 43. Paragraph (a) of subdivision 3 of section 9-f of the banking
law, as amended by chapter 571 of the laws of 1986, is amended to read
as follows:
(a) "prudent loan" means a loan upon the security of real property
which is prudent by acceptable banking standards and is in compliance
with all of the provisions of this chapter, regulations of the banking
AND FINANCIAL SERVICES board and rules of the superintendent; and
S 44. Subdivision 2 of section 9-o of the banking law, as amended by
chapter 415 of the laws of 1990, is amended to read as follows:
A. 9064 15
2. Every mortgage lending institution and mortgage banker which origi-
nates loans secured by real property used for residential purposes
located in this state shall provide a separate disclosure form with each
application that shall contain a provision stating whether the interest
rate of such loan shall be the interest rate in effect at the time of
application, the time of commitment, the time of closing or at such
other period of time as shall be determined by the lending institution.
The banking AND FINANCIAL SERVICES board shall promulgate rules and
regulations to implement the provisions of this section.
S 45. Section 9-s of the banking law, as added by chapter 550 of the
laws of 1998, is amended to read as follows:
S 9-s. Preauthorized electronic fund transfers. Every banking institu-
tion which provides preauthorized electronic fund transfers from consum-
er accounts shall, in accordance with regulations adopted by the banking
AND FINANCIAL SERVICES board, provide consumers with the right to stop
payment by giving written or oral notice within a specified period of
time prior to such transfer. Any banking institution which complies with
the stop payment provisions of the federal Electronic Funds Transfer
Act, as such act may be amended from time to time, and any regulations
adopted pursuant thereto, shall be deemed to be in compliance with the
provisions of this section. For purposes of this section, "banking
institution" shall mean any state or federally chartered bank, trust
company, savings bank, savings and loan association or credit union, and
"consumer account" shall mean an account used primarily for personal,
family or household purposes.
S 46. Section 10 of the banking law, as amended by chapter 684 of the
laws of 1938, is amended to read as follows:
S 10. Declaration of policy. It is hereby declared to be the policy of
the state of New York that the business of all banking organizations
shall be supervised and regulated through the [banking] department OF
BANKING AND FINANCIAL SERVICES in such manner as to insure the safe and
sound conduct of such business, to conserve their assets, to prevent
hoarding of money, to eliminate unsound and destructive competition
among such banking organizations and thus to maintain public confidence
in such business and protect the public interest and the interests of
depositors, creditors, shareholders and stockholders.
S 47. The section heading, subdivision 1, paragraph (b) of subdivision
3 and subdivision 4 of section 11 of the banking law, the section head-
ing as amended by chapter 777 of the laws of 1939, subdivisions 1 and 4
as amended by chapter 566 of the laws of 2004, and paragraph (b) of
subdivision 3 as amended by chapter 276 of the laws of 1990, are amended
to read as follows:
[Banking department] DEPARTMENT OF BANKING AND FINANCIAL SERVICES;
official documents; destruction of documents; official communications.
1. The [banking] department OF BANKING AND FINANCIAL SERVICES shall be
charged with the execution of the laws relating to the individuals,
partnerships, corporations and other entities to which this chapter is
applicable and shall exercise such powers and perform such duties as are
conferred and imposed upon it by this chapter or by any law of this
state. The principal office of the department shall be in the city of
Albany.
(b) Reports made in accordance with section twenty-eight-b of this
chapter or pursuant to the rules and regulations of the banking AND
FINANCIAL SERVICES board promulgated in connection with assessing a
banking organization's record of performance in meeting the credit needs
of local communities within the meaning of section twenty-eight-b of
A. 9064 16
this chapter, including reports expressly required to be rendered to the
superintendent and reports of examinations may be destroyed at the
direction of the superintendent and in accordance with the provisions of
the arts and cultural affairs law after three years from date of receipt
thereof, provided any such report has first been photographed, micropho-
tographed or otherwise reproduced. Each such reproduction shall be
retained in the files of the department for a period of at least fifteen
years from the date of the last received report, oath or declaration
appearing thereon. After the expiration of such period, such reprod-
uction may be destroyed at the direction of the superintendent and in
accordance with the provisions of the arts and cultural affairs law.
Such reproduction thereof shall be deemed, for any purpose, the equiv-
alent of the original of such report. Any such report not so reproduced
shall be retained in the files of the department for a period of at
least fifteen years from the date of receipt thereof, after which it may
be destroyed at the direction of the superintendent and in accordance
with the provisions of the arts and cultural affairs law.
4. Any communication from the [banking] department OF BANKING AND
FINANCIAL SERVICES to any person, partnership, corporation or other
entity may contain a direction that such communication shall be
presented to the controlling owners or principal management of such
entity, members of such partnership or to the board of directors or
trustees of such corporation. A communication containing such direction
shall be for the purposes of this chapter an official communication. The
superintendent may, in his or her discretion, notify in writing each
owner or principal manager of such entity, every member of such partner-
ship and every director or trustee of such corporation of the sending of
such a communication and, in that event the notification shall state the
date of such communication.
S 48. Section 12 of the banking law, as added by chapter 684 of the
laws of 1938, subdivision 1 as amended by chapter 460 of the laws of
1971, subdivision 2 as amended by chapter 300 of the laws of 1994 and
subdivision 3 as amended by chapter 146 of the laws of 1960, is amended
to read as follows:
S 12. Superintendent of banks AND FINANCIAL SERVICES; acting super-
intendent; discretion. 1. The superintendent of banks AND FINANCIAL
SERVICES shall be the head of the [banking] department OF BANKING AND
FINANCIAL SERVICES. He OR SHE shall be appointed by the governor, by
and with the advice and consent of the senate, and shall hold office
until the end of the term of the governor by whom he OR SHE was
appointed and until his OR HER successor is appointed and has qualified.
Within fifteen days from the time of notice of his OR HER appointment,
the superintendent shall take and subscribe the constitutional oath of
office.
2. The superintendent may, in his OR HER discretion, designate one of
his OR HER deputies to act as superintendent during the superintendent's
absence or inability to act. If the office of superintendent is vacant,
or if the superintendent's absence or inability to act continues for a
period of more than thirty successive days, the governor may designate a
deputy to act as superintendent until the filling of the vacancy or the
return or recovery of the superintendent.
3. Whenever in this chapter the superintendent is authorized but not
required to take any action or his OR HER approval is required as a
condition precedent to the doing of any act, the taking of such action
and the giving of such approval shall be within his sound discretion.
In taking any action with respect to any banking organization, and in
A. 9064 17
approving or disapproving any application made by a banking organiza-
tion, the superintendent shall give due consideration to the policy of
the state of New York as declared in section ten of this chapter.
S 49. Subdivisions 3, 4 and 5 of section 12-a of the banking law, as
added by chapter 322 of the laws of 2007, are amended to read as
follows:
3. Except with respect to a federally permitted power approved pursu-
ant to subdivision four of this section, prior to any state chartered
banking institution initially exercising any federally permitted power
pursuant to this section, such banking institution shall make an appli-
cation individually or with one or more state chartered banking insti-
tutions to the superintendent indicating that such institution or insti-
tutions intend to exercise such federally permitted power and the basis
on which such institution or institutions believe such power is a feder-
ally permitted power. The superintendent shall post such application
upon the bulletin board of the department pursuant to section forty-two
of this article. After promptly reviewing such application, the super-
intendent shall determine, consistent with the standards set forth in
subdivision five of this section, whether to recommend to the banking
AND FINANCIAL SERVICES board approval of such application subject to
such terms and conditions as he or she may deem appropriate, in his or
her sole discretion. Such determination, and any recommendation to the
banking AND FINANCIAL SERVICES board to approve an application, shall be
made by the superintendent within forty-five days after the posting of
such application by the superintendent, provided however that the super-
intendent may notify the applicant or applicants that the review of the
application shall be extended for an additional period of time not
exceeding one hundred twenty days after the posting of such application,
and provided further that such period of time may be extended for an
additional period of time with the written consent of the applicant or
applicants. The banking AND FINANCIAL SERVICES board shall not act upon
the superintendent's recommendation prior to thirty days after such
application has been posted. If the superintendent shall determine not
to recommend approval of such application, the superintendent shall
notify the applicant or applicants in writing that the applicant or
applicants may not exercise such federally permitted power. If the
superintendent determines to recommend approval of such application, and
the banking AND FINANCIAL SERVICES board approves such application by
adoption of a resolution, the applicant or applicants may exercise such
federally permitted power subject to such terms and conditions as the
banking AND FINANCIAL SERVICES board may have approved. If the banking
AND FINANCIAL SERVICES board declines to approve such application, the
superintendent shall notify the applicant or applicants in writing ther-
eof. Notwithstanding any other law, the banking AND FINANCIAL SERVICES
board, upon the recommendation of the superintendent, may, by resol-
ution, make the approval of an application under this section applicable
to one or more additional state chartered banking institutions that are
qualified to exercise the same federally permitted powers as the appli-
cant or applicants pursuant to subdivision two of this section, subject
to such terms and conditions as the superintendent shall find necessary
and appropriate and as approved by the banking AND FINANCIAL SERVICES
board.
4. Notwithstanding any other law, the superintendent, in his or her
sole discretion, may, when he or she deems it necessary and appropriate
after considering the standards set forth in subdivision five of this
section, recommend to the banking AND FINANCIAL SERVICES board that it
A. 9064 18
adopt a resolution authorizing one or more state chartered banking
institutions to exercise a federally permitted power, subject to such
terms and conditions as the superintendent shall find necessary and
appropriate and as approved by the banking AND FINANCIAL SERVICES board.
Prior to making any such recommendation to the banking AND FINANCIAL
SERVICES board, the superintendent shall post such recommendation upon
the bulletin board of the department pursuant to section forty-two of
this article, and the banking AND FINANCIAL SERVICES board shall not act
upon such recommendation prior to thirty days after such recommendation
has been posted.
5. Prior to approving any recommendation by the superintendent pursu-
ant to subdivision three or four of this section, the banking AND FINAN-
CIAL SERVICES board shall make a finding that the approval of such
recommendation is:
(i) consistent with the policy of the state of New York as declared in
section ten of this article and thereby protects the public interest,
including the interests of depositors, creditors, shareholders, stock-
holders and consumers; and
(ii) necessary to achieve or maintain parity between state chartered
banking institutions and their counterpart federally chartered banking
institutions with respect to rights, powers, privileges, benefits,
activities, loans, investments or transactions.
S 50. The section heading and subdivision 1 of section 13 of the bank-
ing law, as amended by chapter 360 of the laws of 1984, are amended to
read as follows:
Banking AND FINANCIAL SERVICES board. 1. There shall be in the [bank-
ing] department OF BANKING AND FINANCIAL SERVICES a banking AND FINAN-
CIAL SERVICES board which shall consist of seventeen members. The super-
intendent shall be a member of the board and its chairman and executive
head. The other sixteen members shall be appointed by the governor by
and with the advice and consent of the senate. Each member, other than
the superintendent and the first person appointed to fill a new member-
ship on the board, shall serve for a term of three years from the first
day of March in the year in which he OR SHE was appointed and until his
OR HER successor has been appointed and has qualified. Any member
appointed pursuant to the provisions of this section may be removed from
office by the governor whenever in his OR HER judgment the public inter-
est may require. In case of such removal the governor shall file with
the department of state a statement of the cause of such removal.
S 51. The section heading and the opening paragraph of subdivision 1
of section 14 of the banking law, the section heading as amended by
chapter 684 of the laws of 1938 and the opening paragraph of subdivision
1 as amended by chapter 315 of the laws of 2008, are amended to read as
follows:
Powers of the banking AND FINANCIAL SERVICES board.
For the purpose of effectuating the policy declared in section ten of
this article, the banking AND FINANCIAL SERVICES board shall have power,
by a three-fifths vote of all its members, to make, alter and amend
resolutions, rules and regulations not inconsistent with law. Such
rules, regulations and resolutions shall be brought to the attention of
those affected thereby in a manner to be prescribed by the board. With-
out limiting the foregoing power, resolutions or rules or regulations
may be so adopted for the following specific purposes:
S 52. The section heading and subdivisions 2, 3, 4 and 5 of section
14-a of the banking law, as added by chapter 883 of the laws of 1980,
are amended to read as follows:
A. 9064 19
Rate of interest; banking AND FINANCIAL SERVICES board to adopt regu-
lations.
2. The rate of interest as so prescribed under this section shall
include as interest any and all amounts paid or payable, directly or
indirectly, by any person, to or for the account of the lender in
consideration for the making of a loan or forbearance as defined by the
banking AND FINANCIAL SERVICES board pursuant to subdivision three of
this section.
3. The banking AND FINANCIAL SERVICES board shall have the power, by a
three-fifths vote of all its members, to adopt such regulations as it
shall deem necessary or proper to implement the provisions of this
section. The banking AND FINANCIAL SERVICES board shall make available
to the public copies of all regulations adopted pursuant to this
section.
4. Such regulations as shall have been adopted pursuant to the
provisions of this chapter and in effect immediately prior to the effec-
tive date of this section, shall continue in effect until such time as
new regulations shall have been adopted by the banking AND FINANCIAL
SERVICES board and shall become effective.
5. Whenever reference is made in this chapter or in any other law,
contract or document to the rate of interest prescribed or to be
prescribed by the banking AND FINANCIAL SERVICES board or the super-
intendent pursuant to this section or any former section fourteen-a of
this chapter, such reference shall be deemed a reference to the rate of
interest prescribed in subdivision one of this section.
S 53. The section heading and subdivisions 1, 2 and 3 of section 14-b
of the banking law, the section heading and subdivisions 2 and 3 as
amended by chapter 342 of the laws of 1986 and subdivision 1 as amended
by chapter 267 of the laws of 1987, are amended to read as follows:
Power of the banking AND FINANCIAL SERVICES board to prescribe minimum
rate of interest on mortgage escrow accounts. 1. The banking AND FINAN-
CIAL SERVICES board shall have the power to prescribe, from time to time
but not more often than once in every three month period, by a three-
fifths vote of all its members, by regulation a minimum rate of, and
method or basis of computing, interest that a mortgage investing insti-
tution shall be required to pay on each escrow account maintained with
respect to a mortgage on a one to six family residence occupied by the
owner or on any property owned by a cooperative apartment corporation,
as defined in subdivision twelve of section three hundred sixty of the
tax law, (as such subdivision was in effect on December thirtieth, nine-
teen hundred sixty), and located in this state, which rate shall be
greater than the rate of interest required to be paid under section
5-601 or 5-602 of the general obligations law.
2. In making such determination the banking AND FINANCIAL SERVICES
board shall consider pertinent economic and cost factors including, but
not limited to: (i) current yields on short term investments, (ii)
current dividend rates paid on regular savings accounts throughout this
state, (iii) currently prevailing interest rates on conventional and
insured or guaranteed mortgage loans in this state, (iv) cost factors in
maintaining escrow accounts and (v) such other pertinent economic or
cost factors that the banking AND FINANCIAL SERVICES board shall deem to
be appropriate. Prior to the banking AND FINANCIAL SERVICES board's
prescription of any such minimum rate of interest, the superintendent
shall make a written recommendation to the banking AND FINANCIAL
SERVICES board as to such minimum rate of interest, reciting the econom-
ic and cost data and criteria upon which such recommendation is based.
A. 9064 20
Prior to making such recommendation, the superintendent may invite pres-
entation, by interested persons, of information and data relating to
economic and cost factors relevant to such minimum rate of interest.
3. The banking AND FINANCIAL SERVICES board may promulgate such regu-
lations as it deems necessary and proper to implement and define the
provisions of this section. The banking AND FINANCIAL SERVICES board may
prescribe the minimum rate of interest from time to time, but not more
often than once in any three-month period, and shall provide reasonable
notice to the public of any change in the rate of interest, of the
effective date of such change, which shall be not less than seven days
following the adoption of such change by the banking AND FINANCIAL
SERVICES board, and of any rule or regulation adopted pursuant to this
subdivision.
S 54. The section heading, the opening paragraph of subdivision 1 and
subdivision 2 of section 14-c of the banking law, as added by chapter 19
of the laws of 1978 and the opening paragraph of subdivision 1 as
amended by chapter 9 of the laws of 1996, are amended to read as
follows:
Power of the banking AND FINANCIAL SERVICES board to prescribe crite-
ria for disclosure of information on savings and time accounts.
The banking AND FINANCIAL SERVICES board shall promulgate rules and
regulations with respect to the disclosure of information on savings and
time accounts by all banking organizations and out-of-state state banks
authorized to operate and maintain branches pursuant to article five-C
of this chapter. Such rules and regulations shall set forth guidelines
for, but not be limited to the following:
2. The banking AND FINANCIAL SERVICES board may alter or amend rules
and regulations or promulgate additional rules and regulations as it
deems necessary and proper to effectuate the provisions of subdivision
one.
S 55. The section heading and subdivisions 2, 3 and 6 of section 14-d
of the banking law, the section heading, subdivisions 3 and 6 as added
by chapter 234 of the laws of 1983, and subdivision 2 as amended by
chapter 564 of the laws of 1987, are amended to read as follows:
Power of the banking AND FINANCIAL SERVICES board to prescribe a
reasonable period of time permitting the drawing on items received for
deposit in a customer's account.
2. The banking AND FINANCIAL SERVICES board shall promulgate regu-
lations, which may be amended from time to time, establishing a reason-
able period of time within which a banking institution must permit a
banking customer to draw, as of right, on an item which has been
received for deposit in the customer's account.
3. The superintendent is authorized to gather from banking insti-
tutions such information as may be required by the banking AND FINANCIAL
SERVICES board for the promulgation of the regulations required by this
section.
6. The banking AND FINANCIAL SERVICES board is empowered, upon a
determination that the uniform application of a regulation adopted
pursuant to this section would result in unsafe or unsound banking prac-
tices, to issue such further regulation or order with respect thereto as
it deems appropriate.
S 56. Section 14-e of the banking law, as added by chapter 1 of the
laws of 1984, subdivision 2 as amended by section 1 of part O of chapter
59 of the laws of 2006, is amended to read as follows:
S 14-e. Power of the banking AND FINANCIAL SERVICES board to authorize
the operation of savings banks and savings and loan associations in
A. 9064 21
stock form. 1. Notwithstanding any other provision of law to the
contrary, the banking AND FINANCIAL SERVICES board is authorized, by a
three-fifths vote of all its members, to promulgate such rules and regu-
lations as shall facilitate:
(a) The organization and operation of stock-form savings banks and
stock-form savings and loan associations,
(b) The conversion of mutual savings banks and savings and loan asso-
ciations to stock form, and
(c) Mergers and acquisitions of assets or of capital stock between and
among all of the foregoing banking institutions and between and among
such institutions and any other banking institution.
The banking AND FINANCIAL SERVICES board is authorized to define and
implement, by general regulation, the terms and provisions of this
section. In adopting such regulations, the banking AND FINANCIAL
SERVICES board shall take into account the declaration of policy
contained in section one of a chapter of the laws of nineteen hundred
eighty-four entitled "An Act to amend the banking law, in relation to
the organization and incorporation of stock-form savings banks and
stock-form savings and loan associations and the conversion of mutual
savings banks and mutual savings and loan associations to stock form".
In connection with such regulations, the banking AND FINANCIAL SERVICES
board is empowered to apply to such stock-form organizations any
provision of this chapter, in whole or in part, as shall be applicable
to any other stock-form banking organization and to vary any condition,
requirement or provision of article two, fifteen or sixteen of this
chapter.
2. Such applications as the banking AND FINANCIAL SERVICES board may
prescribe under paragraph (a), (b) or (c) of subdivision one of this
section shall each be accompanied by an investigation fee as prescribed
pursuant to section eighteen-a of this article.
3. Without limiting the foregoing, the banking AND FINANCIAL SERVICES
board, if it shall determine that unusual and extraordinary circum-
stances exist, shall be authorized, by resolution, special or general
regulation, to apply or to deem inapplicable to any banking institution
referred to in subdivision one of this section, such provisions of this
chapter in whole or in part, as it shall find appropriate in connection
with the organization, operation, conversion, merger or any other trans-
action involving a stock-form savings bank or stock-form savings and
loan association, provided, however, that such actions are in harmony
with the spirit of the law and are necessary because of the existence of
such circumstances.
S 57. The section heading of section 14-f of the banking law, as added
by chapter 1 of the laws of 1994, is amended to read as follows:
Power of the banking AND FINANCIAL SERVICES board to require the
provision of basic banking services.
S 58. Subdivisions 4, 5 and subparagraph (ii) of paragraph (c) of
subdivision 6 of section 18-a of the banking law, as added by section 1
of part D-1 of chapter 109 of the laws of 2006, are amended to read as
follows:
4. The fee which shall be imposed for any application for an initial
license, registration, incorporation or for the formation of any other
entity pursuant to this chapter, or for a merger, acquisition, purchase
or sale of assets, change of control, or for any other application
requiring the approval of the superintendent or the banking AND FINAN-
CIAL SERVICES board that may necessitate, as determined by the super-
intendent, a determination regarding the character or fitness and/or the
A. 9064 22
safety and soundness of such applicant or a similar investigative under-
taking by the department, shall be:
(a) twelve thousand five hundred dollars when such application relates
to a banking organization, bank holding company or, except as provided
in paragraph (b) of this subdivision, a foreign banking corporation;
(b) seven thousand five hundred dollars when such application relates
to licensing a branch, agency or representative office of a foreign
banking corporation;
(c) one thousand five hundred dollars when the application relates to
a mortgage broker; or
(d) three thousand dollars for all other such applications.
5. The fee for any application requiring the approval of the super-
intendent or the banking AND FINANCIAL SERVICES board, including, but
not limited to, any application required to change the name of the
applicant, open branches or offices or additional locations, or relocate
an existing branch, office, or location, and any other application not
subject to subdivision four of this section, shall be:
(a) seven hundred fifty dollars when the application relates to a
banking organization, bank holding company, out-of-state state bank,
foreign credit union, or foreign banking corporation;
(b) two thousand dollars when the application relates to the licensing
of an additional location or change of location or the licensing of a
mobile unit of a licensed casher of checks; or
(c) five hundred dollars for all other such applications.
(ii) facilitates the administration of the [banking] department OF
BANKING AND FINANCIAL SERVICES; or
S 59. Subdivisions 1, 2 and 3 of section 24 of the banking law, subdi-
vision 1 as amended by chapter 453 of the laws of 1960, subdivision 2 as
amended by chapter 419 of the laws of 1996, and subdivision 3 as amended
by chapter 52 of the laws of 1944, are amended to read as follows:
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 shall find after investigation and examination
of what he deems to be the best sources of information at his command
that the character, responsibility and general fitness of the person or
persons named in such certificate 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 AND FINANCIAL SERVICES board together with all papers,
correspondence and other information in his possession relating thereto,
including the results of his investigation and his recommendation in the
matter. Such period of ninety days may be extended, by a written consent
executed by a majority of the persons from whom the superintendent
received such organization certificate or private banker's certificate,
for such additional reasonable period of time as may be required for
applicants to comply with conditions precedent stipulated by the super-
intendent as being a prerequisite to his recommendation to the banking
AND FINANCIAL SERVICES board.
2. If three-fifths of the members of the board, after consideration of
all relevant information available to them, shall vote for approval, the
superintendent, if he 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
A. 9064 23
approve such certificate and endorse upon each of the duplicates the
date of such approval. He shall forthwith cause notice of such approval
to be given to the proposed incorporators or private banker and one of
the duplicate certificates to 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
AND FINANCIAL SERVICES board upon making a determination that the
private banker should be permitted to continue its business based upon
the considerations set forth in subdivision one of this section.
3. If three-fifths of the members of the banking AND FINANCIAL
SERVICES 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 subdivi-
sion 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.
S 60. Section 26 of the banking law, as amended by chapter 315 of the
laws of 2008, is amended to read as follows:
S 26. Licenses to foreign banking corporations; renewal. Upon receipt
of an application in proper form of any foreign banking corporation for
leave to do business in this state under the provisions of article five
of this chapter, the superintendent, if he or she shall find after
investigation and examination of what he or she deems to be the best
sources of information that the character, responsibility and general
fitness of the person or persons named in such application are such as
to command confidence and warrant belief that the business of such
foreign banking corporation 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 granting such
foreign banking corporation leave to do business in this state, shall
submit such application to the banking AND FINANCIAL SERVICES board
together with a summary of the results of such investigation. If three-
fifths of the members of the board shall vote for approval of such
application, the superintendent shall execute and issue a license under
the official seal of the department authorizing such applicant to carry
on such business at the place designated in the license. Such license
shall be executed in triplicate and the superintendent shall cause one
copy to be transmitted to the applicant, another to be filed in the
office of the department and the third to be filed in the office of the
clerk of the county in which the place of business designated in such
license is located. A license issued to such foreign banking corporation
pursuant to this section shall remain in full force and effect until
surrendered or revoked.
S 61. Paragraph (a) of subdivision 3 and subdivision 5 of section 28-b
of banking law, paragraph (a) of subdivision 3 as amended by chapter 315
of the laws of 2008 and subdivision 5 as added by chapter 361 of the
laws of 1984, are amended to read as follows:
(a) When taking any action on an application made by a banking insti-
tution under section one hundred five, two hundred twenty-four, two
hundred forty, or three hundred ninety-six of this chapter for a branch
A. 9064 24
office or under section one hundred ninety-one of this chapter for a
public accommodation office or under section six hundred one-b of this
chapter for approval or disapproval of a merger or purchase of assets,
or taking any action on a notice submitted by a banking institution
under section one hundred five-a, two hundred forty-a or three hundred
ninety-six-a of this chapter for the use or installation of an automated
teller machine, point-of-sale terminal or similar electronic facility or
on any other application to which the banking AND FINANCIAL SERVICES
board shall by rule or regulation make applicable the provisions of this
section, the superintendent shall take into account, among other
factors, an assessment, in writing, of the record of performance of the
banking institution in helping to meet the credit needs of its entire
community, including low and moderate-income neighborhoods, consistent
with safe and sound operation of the banking institution. Such assess-
ment and any written communications from the [banking] department OF
BANKING AND FINANCIAL SERVICES to a banking institution relating to such
assessment shall be made available to the public upon request, provided
that nothing contained in this subdivision shall be deemed to alter,
amend or affect the provisions of subdivision ten of section thirty-six
of this chapter. In making such assessment the superintendent shall
review all reports and documents filed pursuant to subdivision one of
this section and any signed, written comments received by the super-
intendent which specifically relate to the banking institution's
performance in helping to meet the credit needs of its community. In
addition, the superintendent shall consider the following factors in
assessing a banking institution's record of performance:
(1) Activities conducted by the banking institution to ascertain cred-
it needs of its community, including the extent of the banking insti-
tution's efforts to communicate with members of its community regarding
the credit services being provided by the banking institution;
(2) The extent of the banking institution's marketing and special
credit-related programs to make members of the community aware of the
credit services offered by the banking institution;
(3) The extent of participation by the banking institution's board of
directors or board of trustees in formulating the banking institution's
policies and reviewing its performance with respect to the purposes of
the Community Reinvestment Act of 1977;
(4) Any practices intended to discourage application for types of
credit set forth in the banking institution's Community Reinvestment Act
Statement(s);
(5) The geographic distribution of the banking institution's credit
extensions, credit applications and credit denials;
(6) Evidence of prohibited discriminatory or other illegal credit
practices;
(7) The banking institution's record of opening and closing offices
and providing services at offices;
(8) The banking institution's participation, including investments, in
local community development and redevelopment projects or programs;
(9) The banking institution's origination of residential mortgage
loans, housing rehabilitation loans, home improvement loans and small
business or small farm loans within its community or the purchase of
such loans originated in its community;
(10) The banking institution's participation in governmentally-in-
sured, guaranteed or subsidized loan programs for housing, small busi-
nesses or small farms;
A. 9064 25
(11) The banking institution's ability to meet various community cred-
it needs based on its financial condition, size, legal impediments,
local economic condition and other factors;
(11-a) The geographic distribution, availability and use of automated
teller machines, point-of-sale terminals, personal computer banking,
debit cards or similar electronic facilities or services; and any train-
ing of customers thereon among every branch of the banking institution,
if the institution offers such services to any of its customers; and
(12) Other factors that, in the judgment of the superintendent and
banking AND FINANCIAL SERVICES board, reasonably bear upon the extent to
which a banking institution is helping to meet the credit needs of its
entire community, including, without limitation, the banking insti-
tution's participation in credit counseling services.
5. The banking AND FINANCIAL SERVICES 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 62. Paragraph (b) of subdivision 5 of section 28-c of the banking
law, as amended by chapter 315 of the laws of 2008, is amended to read
as follows:
(b) "branch office", "branch", or "office" shall not include electron-
ic facilities as defined by general regulation of the banking AND FINAN-
CIAL SERVICES board, but shall include a public accommodation office;
S 62-a. Subdivision 1 of section 30 of the banking law, as amended by
chapter 44 of the laws of 1950, is amended to read as follows:
1. After the completion of the voluntary or involuntary liquidation of
the business and property of any banking organization or of the business
and property in this state of any foreign banking corporation, the
superintendent may take and hold as trustee for the owners thereof any
amounts which remain due to and unclaimed by any creditor, depositor,
stockholder, shareholder, bailor or depositor of property for hire or
otherwise, or lessee of any safe, vault or box. Whenever such amounts
are received by the superintendent and he is not in possession of the
business and property of such banking organization or corporation, he
shall give his receipt for such amounts and shall forthwith deposit them
in one or more banks, trust companies, or savings banks, to the credit
of the superintendent of banks AND FINANCIAL SERVICES in trust for the
persons entitled thereto. In a liquidation by the superintendent he OR
SHE shall deposit such amounts in like manner at the times provided in
article thirteen of this chapter.
S 63. Subdivision 3 of section 32 of the banking law, as added by
chapter 618 of the laws of 1976, is amended to read as follows:
3. Notwithstanding the foregoing provisions of this section, the bank-
ing AND FINANCIAL SERVICES board shall have the power, by a three-fifths
vote of all its members, to promulgate such general or specific regu-
lations as it deems necessary and proper (a) to implement and define the
provisions of this section, (b) to exempt from the requirements of this
section any banking organization which does not receive deposits or
share accounts from the general public, and (c) for good cause shown, to
extend for up to two years the period within which any banking organiza-
tion must comply with the requirements of subdivision one of this
section.
A. 9064 26
S 64. Subparagraph (i) of paragraph (a) of subdivision 2 of section 36
of the banking law, as amended by chapter 464 of the laws of 2006, is
amended to read as follows:
(i) such investment company has been authorized by the banking AND
FINANCIAL SERVICES board to receive deposits, in accordance with the
terms of subdivision three of section five hundred eight of this chap-
ter,
S 65. Subdivision 3 of section 39 of the banking law, as amended by
section 1 of part FF of chapter 59 of the laws of 2004, is amended to
read as follows:
3. To make good impairment of capital or to ensure compliance with
financial requirements. Whenever it shall appear to the superintendent
that the capital or capital stock of any banking organization, bank
holding company or any subsidiary thereof which is organized, licensed
or registered pursuant to this chapter, is impaired, or the financial
requirements imposed by subdivision one of section two hundred two-b of
this chapter or any regulation of the superintendent or the banking AND
FINANCIAL SERVICES board on any branch or agency of a foreign banking
corporation or the financial requirements imposed by this chapter or any
regulation of the superintendent or banking AND FINANCIAL SERVICES board
on any licensed lender, registered mortgage broker, licensed mortgage
banker, licensed casher of checks, licensed sales finance company,
licensed insurance premium finance agency, licensed transmitter of
money, licensed budget planner or private banker are not satisfied, he
or she may, in his or her discretion, issue an order directing that such
banking organization, bank holding company, branch or agency of a
foreign banking corporation, registered mortgage broker, licensed mort-
gage banker, licensed lender, licensed casher of checks, licensed sales
finance company, licensed insurance premium finance agency, licensed
transmitter of money, licensed budget planner, or private banker make
good such deficiency forthwith or within a time specified in such order.
S 66. Subdivision 1 of section 40 of the banking law, as amended by
chapter 496 of the laws of 1993, is amended to read as follows:
1. If the superintendent shall find that (i) any of the reasons for
taking possession of the business and property of a banking organization
or of the business and property in this state of a foreign banking
corporation enumerated in section six hundred six of this chapter, shall
exist with respect to a private banker to which the superintendent has
issued an authorization certificate or a foreign banking corporation to
which the superintendent has issued a license or (ii) any fact or condi-
tion exists which would be grounds for denial of an application for such
a license issued to a foreign banking corporation, as defined by the
banking AND FINANCIAL SERVICES board by regulation, he OR SHE may, after
notice and hearing thereon, revoke such license or authorization certif-
icate. Notice of such revocation, under the superintendent's hand and
the official seal of the department, shall be executed in triplicate and
one copy shall be transmitted to such private banker or foreign corpo-
ration, another shall be filed in the office of the department and the
third shall be filed in the office of the clerk of the county in which
the authorization certificate or license of such private banker or
foreign corporation has been filed. The superintendent may, in his OR
HER discretion, publish a copy of such notice, with such other facts as
he OR SHE may deem proper, in the state register.
S 67. Subdivision 1 of section 41 of the banking law, as amended by
chapter 146 of the laws of 1961, is amended to read as follows:
A. 9064 27
1. Whenever the superintendent shall find that any director, trustee
or officer of any corporate banking organization or bank holding company
(as such term "bank holding company" is defined in article three-A of
this chapter) has violated any law or duly enacted regulation of the
banking AND FINANCIAL SERVICES board relating to such corporation, or
has continued unauthorized or unsafe practices in conducting the busi-
ness of such corporation after having been ordered or warned by the
superintendent to discontinue such practices, the superintendent may, in
his OR HER discretion, certify the facts to the board. The board shall
cause notice to be served upon such director, trustee or officer either
personally or, upon a finding that he OR SHE cannot be served personally
within the state, by registered mail, at his OR HER address last known
to the superintendent, to appear before such board to show cause why he
OR SHE should not be removed from office. A copy of such notice shall be
sent by registered mail to each director or trustee of the corporation
affected. If, after granting the accused director, trustee or officer a
reasonable opportunity to be heard, the board by a three-fifths vote of
all its members finds that he OR SHE has violated any law or duly
enacted regulation of the board relating to such corporation, or has
continued unauthorized or unsafe practices in conducting the business of
such corporation after having been ordered or warned by the superinten-
dent to discontinue such practices, the board, in its discretion, by a
three-fifths vote of all its members, may order that such director,
trustee or officer be removed from office.
S 68. Paragraph b of subdivision 19 of section 42 of the banking law,
as added by chapter 322 of the laws of 2007, is amended to read as
follows:
b. Every recommendation to be made to the banking AND FINANCIAL
SERVICES board pursuant to subdivision four of section twelve-a of this
article, which shall include a description of the recommended federally
permitted power, a reference to the state chartered banking institutions
which shall be permitted to exercise such power, and the date of the
meeting of the banking AND FINANCIAL SERVICES board at which such recom-
mendation is expected to be considered.
S 69. Paragraph (a) of subdivision 2 of section 44 of the banking law,
as amended by chapter 702 of the laws of 2006, is amended to read as
follows:
(a) Without limiting any power granted to the superintendent under any
other provision of this chapter, the superintendent may, in a proceeding
after notice and hearing, require any banking organization, bank holding
company out-of-state state bank that maintains a branch or branches or
representative or other offices in this state, or foreign banking corpo-
ration licensed by the superintendent to maintain a branch, agency or
representative office in this state to pay to the people of this state a
penalty for any violation of this chapter, any regulation promulgated
thereunder, any final or temporary order issued pursuant to section
thirty-nine of this article, any condition imposed in writing by the
superintendent or banking AND FINANCIAL SERVICES board in connection
with the grant of any application or request, or any written agreement
entered into with the superintendent. For purposes of this section, any
reference to a "banking organization" shall be deemed to exclude a safe
deposit company and any reference to a "foreign bank licensee" shall be
deemed to include an out-of-state state bank that maintains a branch or
branches or representative or other offices in this state and a foreign
banking corporation licensed to maintain a branch, agency or represen-
tative office in this state.
A. 9064 28
S 70. Paragraph (a) of subdivision 1 of section 44 of the banking law,
as amended by chapter 472 of the laws of 2008, is amended to read as
follows:
(a) Without limiting any power granted to the superintendent under any
other provision of this chapter, the superintendent may, in a proceeding
after notice and a hearing, require any safe deposit company, licensed
lender, licensed casher of checks, licensed sales finance company,
licensed insurance premium finance agency, licensed transmitter of
money, licensed mortgage banker, registered mortgage broker, authorized
mortgage loan originator, registered mortgage loan servicer or licensed
budget planner to pay to the people of this state a penalty for any
violation of this chapter, any regulation promulgated thereunder, any
final or temporary order issued pursuant to section thirty-nine of this
article, any condition imposed in writing by the superintendent or bank-
ing AND FINANCIAL SERVICES board in connection with the grant of any
application or request, or any written agreement entered into with the
superintendent.
S 71. Subparagraph 5 of paragraph (d) of subdivision 3 of section 75-c
of the banking law, as added by chapter 9 of the laws of 1996, is
amended to read as follows:
(5) complaints concerning security in the automated teller machine
facility should be directed to the banking institution's security
department or the [banking] department OF BANKING AND FINANCIAL
SERVICES, together with telephone numbers for such complaints, and that
the nearest available public telephone should be used to call the police
if emergency assistance is needed.
S 72. Subdivisions 10 and 12 of section 96 of the banking law, subdi-
vision 10 as amended by chapter 259 of the laws of 1994, subdivision 12
as amended by chapter 541 of the laws of 1988, are amended to read as
follows:
10. To exercise, subject to such regulations as may be issued from
time to time by the banking AND FINANCIAL SERVICES board, through any
foreign branch office (other than one opened or occupied in another
state of the United States, the District of Columbia, any territory of
the United States, Guam, American Samoa, the United States Virgin
Islands, and the Northern Mariana Islands) opened and occupied with the
approval of the superintendent and the banking AND FINANCIAL SERVICES
board as provided in section one hundred five of this chapter, such
further powers as may be usual in connection with the transaction of the
business of banking in the place where such foreign branch office shall
transact business, provided that no such foreign branch office shall
engage in the general business of producing, distributing, buying or
selling goods, wares, or merchandise, nor, except with respect to secu-
rities issued by any foreign nation or any political subdivision, agency
or instrumentality thereof, engage or participate, directly or indirect-
ly, in the business of underwriting, selling or distributing securities.
12. To acquire and lease personal property, or to acquire personal
property subject to an existing lease together with the lessor's inter-
est therein, subject to such limitations and conditions as the banking
AND FINANCIAL SERVICES board may from time to time prescribe by general
regulation.
S 72-a. Section 96-c of the banking law, as added by chapter 193 of
the laws of 1975, is amended to read as follows:
S 96-c. Power to act as trustee under self-employed retirement trust
or individual retirement trust. Every bank without fiduciary powers may,
subject to any regulations and restrictions prescribed by the super-
A. 9064 29
intendent of banks AND FINANCIAL SERVICES, act as trustee under a
retirement plan established pursuant to the provisions of the act of
congress entitled "Self-employed Individuals Tax Retirement Act of 1962"
as such provisions may be amended from time to time, and under an indi-
vidual retirement account plan established pursuant to the amendments to
the provisions of the Internal Revenue Code contained in the act of
congress entitled "Employee Retirement Income Security Act of 1974" as
such provisions may be amended from time to time, provided that the
provisions of such retirement or individual retirement account plan
require the funds of such trust to be invested exclusively in deposits
in banks, trust companies, savings banks, savings and loan associations
or federal savings and loan associations whose principal offices are
located in this state. In the event that any such retirement or individ-
ual retirement account plan, which in the judgment of the bank, consti-
tuted a qualified plan under the provisions of the applicable act of
congress hereinabove mentioned and the regulations promulgated there-
under at the time the trust was established and accepted by the bank is
subsequently determined not to be such a qualified plan or subsequently
ceases to be such a qualified plan, in whole or in part, the bank may,
nevertheless, continue to act as trustee of any deposits theretofore
made under such plan and to dispose of the same in accordance with the
directions of the depositor and the beneficiaries thereof. No bank, in
respect to deposits made under this section, shall be required to segre-
gate such deposits from other deposits of such bank, provided, however,
that the bank shall keep appropriate records showing in proper detail
all transactions engaged in under the authority of this section.
S 73. The opening paragraph of subdivision 1 and paragraph (b) of
subdivision 5 of section 96-d of the banking law, the opening paragraph
of subdivision 1 as amended and paragraph (b) of subdivision 5 as added
by chapter 526 of the laws of 1998, are amended to read as follows:
There is hereby created a banking development district program, the
purpose of which is to encourage the establishment of bank branches in
geographic locations where there is a demonstrated need for banking
services. The banking AND FINANCIAL SERVICES board shall, in consulta-
tion with the department of economic development, promulgate rules and
regulations, after public hearing and comment, which set forth the
criteria for the establishment of banking development districts. Such
criteria shall include, but not be limited to, the following:
(b) Notwithstanding any other provision of law, the banking AND FINAN-
CIAL SERVICES board shall promulgate rules and regulations to authorize
the participation of savings banks, savings and loan associations,
federal savings banks and federal savings and loan associations in the
program established pursuant to this section.
S 74. The opening paragraph of subdivision 1 of section 96-d of the
banking law, as added by chapter 204 of the laws of 1997, is amended to
read as follows:
There is hereby created a banking development district program, the
purpose of which is to encourage the establishment of commercial bank
branches in geographic locations where there is a demonstrated need for
banking services. The banking AND FINANCIAL SERVICES board shall, in
consultation with the department of economic development, promulgate
rules and regulations, after public hearing and comment, which set forth
the criteria for the establishment of banking development districts.
Such criteria shall include, but not be limited to, the following:
S 75. The opening paragraph of subdivision 4-a and subdivisions 4-c
and 5 of section 97 of the banking law, the opening paragraph of subdi-
A. 9064 30
vision 4-a and subdivision 5 as amended and subdivision 4-c as added by
chapter 566 of the laws of 2004, are amended to read as follows:
Subject to such restrictions as the banking AND FINANCIAL SERVICES
board may prescribe, stock or other equity investments in subsidiary
corporations, partnerships, unincorporated associations, limited liabil-
ity companies, or other entities engaged in, or to be organized to
engage in the following activities:
4-c. Subject to such restrictions as the banking AND FINANCIAL
SERVICES board may prescribe, stock or other equity interest in one or
more small business investment companies, as authorized pursuant to the
provisions of an act of congress entitled "Small Business Investment Act
of 1958," as amended, or in any entity established to invest solely in
such small business investment companies, except that in no event shall
the total amount of such investments exceed five percent of the capital
stock, surplus fund and undivided profits of such bank or trust company.
5. So much of the capital stock of, or any other equity interest in,
any other corporations, partnerships, unincorporated associations,
limited liability companies, or other entities as may be specifically
authorized by the laws of this state or by resolution of the banking AND
FINANCIAL SERVICES board, or by regulations promulgated by the banking
AND FINANCIAL SERVICES board, upon a three-fifths vote of all its
members.
The superintendent is authorized to adopt such rules and regulations
as shall permit banks and trust companies to make a loan which provides
for receipt of shares of stock of or any other equity interest in, or a
share of the profits, income or earnings of, a borrower in consideration
for making the loan.
A bank or trust company may acquire stock or any other equity interest
in settlement or reduction of a loan, or advance of credit or in
exchange for an investment previously made in good faith and in the
ordinary course of business, where such acquisition of stock or any
other equity interest is necessary in order to minimize or avoid loss in
connection with any such loan, advance of credit or investment previous-
ly made in good faith. A trust company may acquire stock or any other
equity interest from any estate, trust or fund with respect to which
such trust company is acting in a fiduciary capacity, if a claim is
asserted or may be asserted against it with respect to the purchase or
retention of such stock or equity interest for such estate, trust or
fund, (a) where such acquisition by the trust company has been author-
ized or directed by a court, or (b) where such trust company has been
advised by its counsel in writing that it has incurred a contingent or
potential liability with respect to the purchase or retention of such
stock or equity interest and such trust company desires to relieve
itself from such liability. Stocks or any other equity interest acquired
pursuant to the provisions of this paragraph may be held for such period
as the board of directors deems advisable.
A bank or trust company may continue to hold any bonds or other secu-
rities or stock which it holds in accordance with the provisions of law
at the time this [act] ARTICLE takes effect.
No bank or trust company shall purchase, acquire, or hold any stock
of, or any other equity interest in, any corporation or any other enti-
ty, except as provided in this section.
S 76. Paragraph (d) of subdivision 1 and subdivision 2 of section 98
of the banking law, paragraph (d) of subdivision 1 as amended by chapter
512 of the laws of 1977 and subdivision 2 as amended by chapter 37 of
the laws of 1969, are amended to read as follows:
A. 9064 31
(d) Such as may be specifically authorized by resolution of the bank-
ing AND FINANCIAL SERVICES board upon a three-fifths vote of all its
members, provided, however, that the banking AND FINANCIAL SERVICES
board upon a three-fifths vote of all its members may delegate to the
superintendent the authority to approve the purchase, lease, conveyance
or other acquisition or sale of real property which is located outside
the United States, its territories and possessions, and which is used
principally as the residence of one or more directors, officers, or
employees of the bank or trust company.
2. All real estate purchased by any bank or trust company or taken by
it in settlement of debts due it, shall be conveyed to it in its name
or, subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper, may be taken
in the name of a duly authorized nominee. All such conveyances shall be
immediately recorded or registered in the office of the proper recording
officer of the county in which such real estate is located.
S 77. Subparagraph (ii) of paragraph (a) of subdivision 9 and subdivi-
sion 10 of section 100-c of the banking law, as added by chapter 239 of
the laws of 1986, are amended to read as follows:
(ii) "Short term investment" means bonds, notes or other evidences of
indebtedness which are payable upon demand (including variable amount
notes) or which have a maturity date of one year or less from the date
of purchase, or which may be prescribed, from time to time, by rules or
regulations promulgated by the banking AND FINANCIAL SERVICES board, and
which are acquired or held by a trust company in a short term investment
common trust fund.
10. The banking AND FINANCIAL SERVICES board shall promulgate such
regulations and rules as it considers appropriate to govern the adminis-
tration of common trust funds and short term investment common trust
funds.
S 78. Subdivisions 1 and 3 of section 102-a of the banking law, as
added by chapter 248 of the laws of 1997, are amended to read as
follows:
1. Trust companies which (a) do not receive deposits from the general
public and (b) have been exempted by the banking AND FINANCIAL SERVICES
board from the requirements of section thirty-two of this chapter, may
be formed and operated as limited liability trust companies. Such limit-
ed liability trust companies shall be formed in accordance with, shall
operate in compliance with, and shall meet all of the requirements of
the limited liability company law and this chapter, except that to the
extent any provision of the limited liability company law shall be
inconsistent with the provisions of this chapter, the provisions of this
chapter shall govern; provided, however, that limited liability trust
companies shall not have perpetual existence.
3. Trust companies which have been formed and are operating pursuant
to this article and article fifteen of this chapter on the effective
date of this section, and which meet the requirements of subdivision one
of this section, may, with the approval of the banking AND FINANCIAL
SERVICES board, convert into limited liability trust companies, provided
that they meet all of the other requirements of this chapter as if they
were newly formed companies.
S 79. Paragraphs (a), (b), (c), (i), (j) and (k) of subdivision 1,
subdivisions 4, 4-a and 5 of section 103 of the banking law, paragraphs
(a), (c), and (i) of subdivision 1 and subdivision 4-a as amended by
chapter 1 of the laws of 1983, paragraph (b) of subdivision 1 as amended
by chapter 360 of the laws of 1984, paragraphs (j) and (k) of subdivi-
A. 9064 32
sion 1 as added by chapter 367 of the laws of 1997, subdivision 4 as
amended by chapter 313 of the laws of 2001 and subdivision 5 as amended
by chapter 534 of the laws of 1976, are amended to read as follows:
(a) The limitations in this subdivision shall not apply to (1) any
loan to the extent that the United States, this state or any city, coun-
ty, town, village or school district of this state, any federal interme-
diate credit bank, Federal National Mortgage Association, any federal
land bank, any bank for cooperatives organized under the laws of the
United States, any national mortgage association, any federal home loan
bank, the Small Business Administration or any other department, agency
or instrumentality of the United States or this state designated by the
banking AND FINANCIAL SERVICES board by general or specific regulation
upon a three-fifths vote of all its members, has agreed to pay the prin-
cipal and interest thereof, or has guaranteed payment (by guaranty or
commitment to purchase or otherwise) of such principal and interest, or
is committed to supply, by loan, subsidy or otherwise, funds sufficient
to pay such principal and interest, or has otherwise pledged its faith
and credit for the payment of such principal and interest; or (2) any
loan secured by not less than a like amount of direct obligations (based
on their principal amount or market value, whichever is lower, at the
time the loan is made) of the United States or of this state or of any
city, county, town, village or school district of this state or of any
such department, agency or instrumentality of the United States or this
state; or (3) when authorized by the superintendent, any loan to a
savings bank of this state or a corporation all of the capital stock of
which is owned by not less than twenty savings banks of this state.
(b) The limitations in this subdivision shall not apply to any loan to
the extent such loan is secured by cash collateral which is not subject
to withdrawal.
In addition, the limitations in this subdivision shall not apply (i)
to loans arising from the discount of commercial or business paper
evidencing an obligation to the person negotiating it with recourse;
(ii) to loans to the student loan marketing association; (iii) to loans
to any financial institution or to any receiver, conservator, super-
intendent of banks AND FINANCIAL SERVICES, or other agent in charge of
the business and property of such financial institutions when such loans
are approved by the superintendent; (iv) to the purchase of bankers'
acceptances of the kind described in section 13 of an act of congress
entitled the "Federal Reserve Act" and issued by other banking corpo-
rations; and (v) to loans made to facilitate prompt clearance or settle-
ment arising from the purchase or sale of readily marketable securities
which loans (A) are secured by readily marketable securities having a
market value or a principal face amount (whichever is less) at the time
the loan is made of not less than the principal amount of said loan, and
(B) shall be required to be repaid upon settlement of such purchase or
sale.
(c) Loans (exclusive of any loan described in paragraph (a) of this
subdivision) to any state other than the state of New York, or to any
foreign nation, the New York State thruway authority, the Triborough
bridge and tunnel authority, The Port of New York Authority, a railroad
corporation, a municipal corporation of this state, a corporation
subject to the jurisdiction of a public service commission of this
state, or any international lending facility or public benefit corpo-
ration designated by the banking AND FINANCIAL SERVICES board by general
or specific regulation upon a three-fifths vote of all its members, may
A. 9064 33
equal but not exceed twenty-five per centum of the capital stock,
surplus fund and undivided profits of such bank or trust company.
(i) The limitations in this subdivision shall not apply to the invest-
ment of such bank or trust company in the bonds, debentures, notes or
other obligations of any person, provided: (i) such bonds, debentures,
notes or other obligations mature not less than one year after their
respective dates of issuance, and, at the time of such investment, are
rated in one of the three highest rating grades by an independent rating
service designated by the banking AND FINANCIAL SERVICES board; (ii)
such investment does not exceed fifteen per centum of the capital stock,
surplus fund and undivided profits of such bank or trust company; and
(iii) such investment complies with such additional limitations and
conditions as the banking AND FINANCIAL SERVICES board from time to time
may prescribe by general regulation.
(j) In the case of a trust company which (1) does not receive deposits
from the general public and (2) has been exempted by the banking AND
FINANCIAL SERVICES board from the requirements of section thirty-two of
this chapter, the limitations of this subdivision shall not apply to the
investment of such trust company in the bonds, debentures, notes or
other obligations of, any foreign nation, or any political subdivision,
agency or instrumentality thereof, provided: (i) at the time of such
investment, such bonds, debentures, notes or other obligations are rated
in one of the three highest rating grades by an independent rating
service designated by the banking AND FINANCIAL SERVICES board; (ii) for
any such bonds, debentures, notes or other obligations, the foreign
nation, or any political subdivision, agency or instrumentality thereof,
has guaranteed payment (by guaranty or commitment to purchase or other-
wise) of such principal and interest, or is committed to supply, by
loan, subsidy or otherwise, funds sufficient to pay such principal and
interest, or has otherwise pledged its faith and credit for the payment
of such principal and interest; (iii) such investments do not exceed the
per centum applicable to such obligor of the capital stock, surplus fund
and undivided profits of such bank or trust company as the superinten-
dent shall approve, and (iv) such investments comply with such limita-
tions and conditions as the superintendent may from time to time
prescribe.
(k) In the case of a trust company which (1) does not receive deposits
from the general public and (2) has been exempted by the banking AND
FINANCIAL SERVICES board from the requirements of section thirty-two of
this chapter, the limitations of this subdivision shall not apply to the
purchase of securities under repurchase agreement provided that the
repurchase agreement relates to not less than a like amount of direct
obligations (based on their principal amount or market value, whichever
is lower, at the time the purchase occurs) of any foreign nation, or any
political subdivision, agency or instrumentality thereof, provided: (i)
at the time of such purchase, such direct obligations are rated in one
of the three highest rating grades by an independent rating service
designated by the banking AND FINANCIAL SERVICES board; (ii) for any
such direct obligations, the foreign nation, or any political subdivi-
sion, agency or instrumentality thereof, has guaranteed payment (by
guaranty or commitment to purchase or otherwise) of the principal and
interest thereof, or is committed to supply, by loan, subsidy or other-
wise, funds sufficient to pay such principal and interest, or has other-
wise pledged its faith and credit for the payment of such principal and
interest; (iii) the purchase price of such securities does not exceed
the per centum applicable to the obligor of such securities of the capi-
A. 9064 34
tal stock, surplus fund and undivided profits of such bank or trust
company as the superintendent shall approve; and (iv) such purchase
complies with such limitations and conditions as the superintendent may
from time to time prescribe.
The banking AND FINANCIAL SERVICES board shall be empowered to promul-
gate rules and regulations as shall be appropriate to carry out the
purposes of this subdivision.
4. Make a loan upon the security of real estate within or without this
state which does not comply with any such rules or regulations as the
banking AND FINANCIAL SERVICES board may prescribe.
No loan shall be made under the provisions of this subdivision except
upon the written and signed certificate of an appraiser appointed pursu-
ant to policies established by the board of directors, certifying to the
value of the premises according to his judgment.
The provisions of this subdivision shall not constitute the authority
to make a loan to a natural person upon the security of a mortgage which
is not a first lien.
Where the collateral for any loan consists partly of real estate secu-
rity and partly of other security, including a guarantee or endorsement
by or an obligation or commitment of a person other than the borrower,
only the amount by which the loan exceeds the value as collateral of
such other security, as found in good faith by a duly authorized officer
of such bank or trust company, at the time of the making of the loan or
commitment therefor, shall be considered a loan upon the security of
real estate, provided, that in no event shall a loan be considered a
loan upon the security of real estate (i) where the principal amount of
any real estate security taken therefor is less than fifteen per centum
of the amount of such loan or (ii) where the loan is payable in monthly
or quarterly installments over a period not to exceed one hundred twen-
ty-one months and does not exceed twenty thousand dollars and is for the
purpose of paying the cost of any repairs, alterations or improvements
upon, or in connection with, or, as the superintendent may authorize,
the equipping of existing structures or the building of new structures
by the owners thereof or by the lessees under a lease expiring not less
than six months after the maturity of the loan or (iii) where the loan
is fully guaranteed or insured by the United States or a state, or any
department, agency or instrumentality thereof, and for the payment of
which loan the full faith and credit of the United States or of such
state is pledged and if under the terms of the guaranty or insurance
agreement the bank or trust company will be assured of repayment in
accordance with the terms of the loan or (iv) where there is a binding
and valid commitment or agreement by a financially responsible lender,
purchaser or other financially responsible party either directly with
the lending bank or trust company or which is for the benefit of, or has
been assigned to, the lending bank or trust company and pursuant to
which commitment, agreement or assignment, the lender, purchaser or
other party is required to advance to the lending bank or trust company
within thirty months from the date of such commitment or agreement the
full amount of the loan to be made by the lending bank or trust company
upon the security of real estate improved by a building or buildings, or
to be improved by a building or buildings in the process of
construction, the major portion of which building is used, or in the
case of a building under construction is to be used, for residential,
business, manufacturing or agricultural purposes, and where pursuant to
the terms and provisions of such commitment or agreement such advance
A. 9064 35
shall be made prior to or upon the maturity of the loan by the lending
bank or trust company.
Real estate security for purposes of this section shall not include
(a) an assignment of rents under a lease, (b) a mortgage or other lien
upon a leasehold, (c) a mortgage or other lien upon leasehold, royalty
or other rights in oil, gas, minerals, standing timber, or other
products of land, (d) a mortgage or other lien made or given upon real
estate and taken as collateral security for loans to a borrower,
provided, that at the time of the making of the loan or commitment
therefor, repayment thereof is reasonably expected to be made out of the
operations of such borrower or of the mortgagor, or (e) such mortgages
or other liens on property as may be specifically exempted from the
limitations and restrictions of this subdivision by the banking AND
FINANCIAL SERVICES board by general or specific regulations adopted by a
three-fifths vote of all its members. Nothing in this paragraph shall
be construed to imply that security of a kind not mentioned herein is to
be deemed real estate security.
The limitations and restrictions contained in this subdivision shall
not prevent the acceptance of any real estate security to secure the
payment of a debt previously contracted in good faith. Every mortgage
and every assignment of a mortgage taken or held by such bank or trust
company shall immediately be recorded or registered in its name in the
office of the clerk or the proper recording officer of the county in
which the real estate described in the mortgage is located, except that
where the underlying real estate is located outside the state of New
York such mortgage or assignment may be recorded or registered in the
name of a duly authorized nominee, and except that if such mortgage or
assignment of mortgage or of an interest therein shall be taken from a
corporation organized under the banking law or all of the capital stock
of which is owned by not less than twenty savings banks of this state,
the bank or trust company may hold such mortgage or assignment unre-
corded unless the superintendent shall direct the bank or trust company
to record the same. The recording or registering of assignments of mort-
gages shall not be required when not less than ten mortgages are
assigned as security for a loan, the term of which does not exceed
twelve months.
Any bank or trust company may renew from time to time any loan upon
the security of real estate lawfully made by it prior to June thirtieth,
nineteen hundred thirty-seven.
None of the prohibitions and restrictions contained in this subdivi-
sion shall apply to any corporation all of the capital stock of which is
owned by not less than twenty savings banks of this state.
4-a. A bank or trust company may, in addition to the authority granted
under any other provisions of this article, make a loan to a natural
person upon the security of a mortgage which is not a first lien at the
rate or rates agreed to by the bank or trust company and the borrower,
subject to such regulations as the banking AND FINANCIAL SERVICES board
may prescribe. Such regulations by the banking AND FINANCIAL SERVICES
board may include such restrictions as the banking AND FINANCIAL
SERVICES board finds necessary or proper, including without limitation,
a restriction as to the percentage of total assets which may be invested
in such loans or a restriction on the loan to appraisal value of proper-
ty securing such loan.
For purposes of this subdivision, the term mortgage shall include a
lien on an existing ownership interest in certificates of stock or other
evidence of an ownership interest in, and a proprietary lease from, a
A. 9064 36
corporation or partnership formed for the purpose of the cooperative
ownership of real estate.
5. Make any loan for the purpose of financing the purchase of or refi-
nancing an existing ownership interest in certificates of stock or other
evidence of an ownership interest in, and a proprietary lease from, a
corporation or partnership formed for the purpose of the cooperative
ownership of real estate, unsecured except to the extent of an assign-
ment or transfer of the stock certificates or other evidence of owner-
ship interest of the borrower and the proprietary lease within ninety
days from the making of the loan, which shall exceed the maximum per
cent of the loan permitted to be made on real estate improved by a
single family residence occupied by the owner, provided that for
purposes of this section the amount of the purchase price shall be
deemed to equal the appraised value of such certificate of stock or
other evidence of an ownership interest, or, in the case of a refinanc-
ing, the appraised value of such certificates of stock or other evidence
of an ownership interest and which shall fail to provide for full repay-
ment of principal and interest within the same number of years as a
conventional mortgage loan previously described in this subdivision,
provided that all real estate owned by such corporation or partnership
shall be located within the state; and provided, further, that such loan
shall be subject to such regulations as the banking AND FINANCIAL
SERVICES board may from time to time promulgate. The maximum rate of
interest which may be charged, taken or received upon any loan or
forbearance made pursuant to this subdivision may exceed the rate of
interest prescribed by the banking AND FINANCIAL SERVICES board in
accordance with section fourteen-a by no more than one and one-half per
centum per annum.
S 80. Subdivisions 2 and 4 of section 104 of the banking law, subdivi-
sion 2 as amended by chapter 664 of the laws of 1958 and subdivision 4
as amended by chapter 360 of the laws of 1984, are amended to read as
follows:
2. The stocks, bonds and other interest-bearing securities purchased
by a bank or trust company shall be entered on its books at the actual
cost thereof, and shall not thereafter be carried upon the books at a
valuation exceeding their cost as adjusted by amortization for the
purpose of bringing them to par at maturity except that the same may be
carried at cost if appropriate amortization reserve is set up for the
purpose of bringing them to par at maturity. Where securities purchased
at a premium are callable prior to maturity, the rate of amortization
thereof shall be increased where necessary to such extent as shall
reduce the amount at which such securities are carried upon the books to
the call price at the date or dates upon which a call may be made;
provided, however, that no adjustment for amortization or amortization
reserve shall be required to be made on the books except when net
profits are computed. The banking AND FINANCIAL SERVICES board may by
general regulation adopted by a three-fifths vote of all its members
vary the requirements of this subdivision to permit the amortization of
premiums at the same rate as that required by federal tax statutes or
regulations.
4. Real estate acquired by a bank or trust company, other than that
acquired for use as a place of business, shall be entered on the books
of the bank or trust company in conformity with the method of accounting
for troubled debt restructurings approved by the financial accounting
standards boards or such other method of accounting as may be authorized
A. 9064 37
or required by rules and regulations of the banking AND FINANCIAL
SERVICES board.
The provisions of this subdivision shall not, except as the super-
intendent may otherwise require, apply to any parcel of real estate as
to which the bank or trust company has exercised its option to transfer
or convey such real estate to the veterans administration or the federal
housing commissioner pursuant to insurance or guaranty.
S 81. Section 105-a of the banking law, as amended by chapter 613 of
the laws of 1995, is amended to read as follows:
S 105-a. Electronic facilities. A bank or trust company may conduct a
banking business, at automated teller machines, point-of-sale terminals,
and similar facilities subject to regulations which may be promulgated
by the banking AND FINANCIAL SERVICES board. Such facilities shall not
be deemed to be branches and shall not be subject to any of the
provisions of this chapter applicable to branches; provided however that
notwithstanding the foregoing, for purposes of clause (ii) of subdivi-
sion one of section one hundred five of this chapter, such facilities
shall be deemed to be branches, and such facilities shall be subject to
the terms and conditions of section one hundred five, and for purposes
of section twenty-eight-b of this chapter, such facilities shall be
deemed to be branches.
S 82. Subdivisions 1 and 2 of section 107 of the banking law, subdivi-
sion 1 as amended by chapter 766 of the laws of 1975 and subdivision 2
as amended by chapter 144 of the laws of 1963, are amended to read as
follows:
1. Every bank and trust company shall maintain total reserves against
its demand and time deposits in such ratios as the banking AND FINANCIAL
SERVICES board shall by regulation impose. If the principal office or
any branch of such bank or trust company is located in a special
requirement area, as designated in or pursuant to subdivision two of
this section said bank or trust company shall maintain such additional
reserves as may be prescribed by the banking AND FINANCIAL SERVICES
board.
2. The cities of Albany and Buffalo and the boroughs of Brooklyn,
Manhattan and The Bronx are hereby designated as special requirement
areas. The banking AND FINANCIAL SERVICES board may at any time add to
the number of cities or boroughs designated as special requirement
areas, or may terminate the designation of any city or borough as such.
S 83. Subdivision 1, paragraphs (b) of subdivisions 4 and 5, paragraph
9 of subdivision 5-a and subdivision 8 of section 108 of the banking
law, subdivision 1 as amended by chapter 360 of the laws of 1984, para-
graph (b) of subdivision 4 as amended by chapter 92 of the laws of 1986,
the opening paragraph of paragraph (b) of subdivision 4 as amended by
chapter 577 of the laws of 1987, clause (C) of subparagraph (ii) of the
opening paragraph of paragraph (b) of subdivision 4 as amended by chap-
ter 119 of the laws of 1992, paragraph (b) of subdivision 5 as amended
by chapter 5 of the laws of 1992, the third undesignated paragraph and
the closing paragraph of paragraph (b) of subdivision 5 as added by
chapter 1 of the laws of 1994, paragraph 9 of subdivision 5-a as added
by chapter 320 of the laws of 1973 and subdivision 8 as added by chapter
344 of the laws of 1974 and renumbered by chapter 512 of the laws of
1977, are amended to read as follows:
1. Except as otherwise provided in this section, no bank or trust
company shall take, receive, reserve or charge on any loan or discount
made, or upon any note, bill of exchange or other evidence of debt,
negotiable or otherwise, interest, as computed pursuant to this subdivi-
A. 9064 38
sion, at a rate greater than the rate prescribed by the banking AND
FINANCIAL SERVICES board pursuant to section fourteen-a of this chapter,
or, if no rate has been so prescribed, six per centum per annum, or two
dollars if the interest so computed is less than that amount. Such
interest may be taken in advance, reckoning the days for which the note,
bill or evidence of debt has to run. If interest is so taken in advance
and the maturity of the debt is accelerated and judgment is obtained, or
the debt is otherwise paid prior to its normal date of maturity, the
bank or trust company shall refund to the obligor or his legal represen-
tative, as the case may be, the unearned interest previously deducted
and the unused portion of any premiums charged for insuring the obligor
under a group credit insurance policy, such refund to be calculated in
accordance with the method described in paragraph (e) of subdivision
four of this section. A reasonable charge by a bank or trust company for
the collection of a bona fide bill of exchange, note or other evidence
of debt payable at a place other than the place where purchased,
discounted or sold, in addition to the interest, shall not be considered
interest for the purpose of any law regulating the maximum rate of
interest which may be charged, taken or received.
Anything contained in this subdivision to the contrary notwithstand-
ing, the charging of interest or discount on a loan or discount made
outside this state at a rate allowed by the laws of the jurisdiction
where such loan is made, or the acquisition by a bank or trust company
of a part interest or the entire interest in any loan or discount here-
tofore or hereafter made by a bank or trust company or any other banking
institution, shall not be a violation of this section.
(b) A bank or trust company which operates a personal loan department
may make loans and charge interest thereon, which may be calculated on
the actual unpaid principal balances of the loan or in the case of a
loan commitment from the date of each advance thereunder for the actual
time outstanding, according to a generally accepted actuarial method at
a fixed or variable rate in accordance with the provisions of the
evidence of the indebtedness, or taken in advance, computed from the
date of the loan, or in the case of a loan commitment from the date of
each advance thereunder, to the date of the last installment payable
thereunder, at the rate or rates agreed to by the bank or trust company
and the borrower, with respect to any loan which is repayable at regular
periodic intervals of not more than one month over a period from the
date of the loan not exceeding (i) thirty-seven months, if the face
amount of the loan is for not more than twelve hundred dollars, or (ii)
any number of months agreed to by the bank or trust company and the
borrower, (A) if the face amount of the loan is for more than twelve
hundred dollars, (B) if the loan is for more than twelve hundred
dollars, and is made for a commercial or business use or purpose or for
investment in or purchase of an unincorporated business or commercial
enterprise, (C) if the loan or loan commitment is made for educational
purposes as specified in subdivision five-b of this section, or (D) if
the loan or advance of credit is made for the purpose of financing
alterations, repairs and improvements upon or in connection with, or as
the superintendent may authorize the equipping of existing structures,
and the building of new structures, upon urban, suburban, or rural real
property (including the restoration, rehabilitation, rebuilding and
replacement of such improvements which have been damaged or destroyed by
earthquake, conflagration, tornado, hurricane, cyclone, flood or other
catastrophe), by the owners thereof or by lessees of such real property
under a lease expiring not less than six months after the maturity of
A. 9064 39
the loan or advance of credit or by lessees under proprietary leases
from corporations or partnerships formed for the purpose of the cooper-
ative ownership of real estate. The total unpaid principal balances of
any one or more loans made by such bank or trust company to the borrower
pursuant to this subdivision shall be determined by agreement between
such bank or trust company and the borrower. If the loan is made for a
period of one year or more, provision may be made in the note, instru-
ment or other evidence of debt, for the omission of payments during not
more than any three specified months in any twelve-month period, but the
maximum period of thirty-seven months, shall not be exceeded. On any
loan with a variable rate of interest made pursuant to this paragraph,
the rate shall be determined at regular intervals as set forth in the
evidence of indebtedness and in accordance with such regulations as the
banking AND FINANCIAL SERVICES board shall prescribe but said rate shall
not vary more often than once in any three month period and shall be
based on a published index that is (a) readily available, (b) independ-
ently verifiable, (c) beyond the control of the bank or trust company
and (d) approved by the superintendent.
The banking AND FINANCIAL SERVICES board shall adopt regulations,
including but not limited to: (a) providing for disclosure to the
borrower by the bank or trust company of the circumstances under which
the rate may increase, any limitations on the increase, the effect of an
increase and an example of the payment terms that would result from an
increase; (b) providing for disclosure to the borrower by the bank or
trust company of a history of the fluctuations of the index over a
reasonable period of time; and (c) providing for notice to the borrower
from the bank or trust company prior to any rate increase or change in
the terms of payment.
(b) Such agreement may provide for interest on the unpaid aggregate
principal amount of such loans and advances from time to time outstand-
ing at the rate or rates agreed to by the bank or trust company and the
borrower, as computed pursuant to this section, including, in accordance
with the provisions of the agreement, rates that may vary from time to
time reckoned on each loan or advance from the date thereof, calculated
on any of the following bases: (i) on the unpaid principal amount of
such loans and advances from time to time outstanding, or (ii) for each
month on an average balance outstanding determined by dividing by two
the sum of the balances of unpaid principal of such loans and advances
outstanding on two dates during such month, as specified in such agree-
ment; the first of which dates being not later than the fifteenth day of
such month and the second being not earlier than the sixteenth day of
such month and not less than ten nor more than twenty days after the
first date, or (iii) for each month on a fixed amount selected from a
schedule, which fixed amount may exceed the average daily balance under
(i) above, or the average balance if determined under (ii) above, by a
differential of not more than five dollars, provided the same fixed
amount is also used for computing interest for any month for which such
balance exceeds said fixed amount by any amount up to at least the same
differential. For purposes of this subdivision, a month may but need not
be a calendar month, and a bank or trust company computing interest on a
daily basis may charge for each day one thirtieth of the monthly inter-
est rate. No amendment to any agreement shall take effect unless at
least [30] THIRTY days prior to the effective date of such amendment,
imposition or increase, a written notice has been mailed or delivered to
the borrower that clearly and conspicuously describes such amendment,
imposition or increase and the indebtedness to which it applies and if
A. 9064 40
the amendment has the effect of increasing the rate of interest, either
(a) the notice states that the incurrence by the borrower or another
person authorized by him of any further indebtedness under the plan to
which the agreement relates on or after the effective date of such
change specified in the notice shall constitute acceptance of such
change, and either the borrower agrees in writing to such change or the
borrower or another person authorized by him incurs such further indebt-
edness on or after the effective date of the change stated in the
notice, or (b) the notice advises the borrower that he has thirty days
from the earlier of the mailing or delivery of the notice to advise the
bank or trust company in writing that he does not accept such amendment,
provided that such notice contains an address to which the borrower may
send notice of his election not to accept the amendment and also
provided that the notice specifies that the amendment will take effect
absent receipt of the borrower's written objection to the amendment. Any
borrower who has received a notice pursuant to clause (a) who does not
agree in writing to the amendment and no further indebtedness is
incurred under the plan to which the agreement relates, and any borrower
who gives a timely notice, pursuant to clause (b), electing not to
accept the amendment shall be permitted to pay his outstanding indebt-
edness in accordance with the terms of the agreement but the bank or
trust company may terminate the amount of credit available to the
borrower and may require the borrower to return all credit cards and
checks issued in connection with the agreement. If such a borrower
subsequently obtains credit under the agreement, such use shall consti-
tute acceptance of the change of terms and shall be deemed to have been
accepted and shall become effective as to the borrower as of the date
such change would have become effective but for the giving of notice by
the borrower. If notice is given pursuant to clause (b) and the borrower
does not timely object in writing to the amendment, such amendment shall
become effective without action on the part of the borrower; provided
that in no event shall any such amendment or increase take effect with
respect to (i) the unpaid aggregate principal amount of loans or
advances representing indebtedness outstanding prior to January 1, 1981
and (ii) the unpaid aggregate principal amount of loans or advances
representing indebtedness incurred, under or pursuant to an agreement in
effect on December 1, 1980, between January 1, 1981, and the effective
date of such amendment or increase specified in the first notice mailed
or delivered pursuant to clause (a). Indebtedness outstanding prior to
January 1, 1981, for purpose of clause (i) above and indebtedness
outstanding prior to the effective date of an increase for purposes of
clause (ii) above shall be determined on the basis of crediting payments
and other credits first to that portion of any such indebtedness repres-
enting interest charges, insurance premiums, service charges and fines
and then to that portion representing the principal amount of loans or
advances in the order in which made. The provisions of this paragraph
permitting an increase in a rate of interest shall not apply in the case
of an agreement which expressly prohibits changing of interest rates or
which provides limitations on changing of interest rates which are more
restrictive than the requirements of this paragraph. An amendment to an
agreement deleting a provision that the rate of interest may vary from
time to time may not become effective within one year from the later of
the effective date of the agreement or the effective date of an amend-
ment to an agreement adding a variable rate provision. On any loans or
advances with rates of interest that may vary from time to time made
pursuant to this paragraph, such variable rates of interest shall be
A. 9064 41
determined at regular intervals as set forth in the agreement and in
accordance with such regulations as the banking AND FINANCIAL SERVICES
board shall prescribe but said rate shall not vary more often than once
in any three month period and shall be based on a published index that
is (a) readily available, (b) independently verifiable, (c) beyond the
control of the bank or trust company and (d) approved by the superinten-
dent, (e) such loan rate shall be based on the index values, or the
index numbers plus or minus additional percentage points provided,
however, that variations in the rate must correspond directly to the
movements of the index values plus or minus additional percentage points
only. Once such rate is established no lending institution may add any
factors to increase the rate other than variations in the established
index without the prior approval of the banking AND FINANCIAL SERVICES
board. For purposes of this paragraph, an adjustment in the rate of
interest as a consequence of movement in the selected index shall not
constitute an amendment to that agreement. A reduction in the grace
period for the assessment of a fee on any installment not paid when due,
shall be considered an amendment to an agreement as set forth in this
paragraph.
The banking AND FINANCIAL SERVICES board shall adopt regulations with
respect to agreements that provide for a variable rate of interest,
including but not limited to: (a) providing for disclosure to the
borrower by the bank or trust company of the circumstances under which
the rate may increase, any limitations on the increase, the effect of an
increase and an example of the payment terms that would result from an
increase; (b) providing for disclosure to the borrower by the bank or
trust company of a history of the fluctuations of the index over a
reasonable period of time; and (c) providing for notice to the borrower
from the bank or trust company prior to any rate increase or change in
the terms of payment. The regulations shall allow a bank or trust compa-
ny after choosing an approved index to choose a spread and a minimum and
maximum rate of interest at its discretion.
A written agreement, whether it provides for a fixed or variable
interest rate, may provide for an introductory rate of interest at
either a fixed or a variable rate, provided that the terms of such
introductory rate, including, if applicable, the date on which the
introductory rate shall terminate, are disclosed to the borrower. Such
disclosure shall be contained on an application form or pre-approved
written solicitation as specified pursuant to subdivisions one and one-a
of section five hundred twenty of the general business law. A change in
the interest rate upon expiration of an introductory rate shall not be
considered a variable rate or a change in terms. The interest rate in
effect after expiration of an introductory rate may apply to all amounts
due under the agreement regardless of when incurred and disclosure of
the same shall be provided to the borrower in the written agreement.
Any interest charge, whether assessed by a fixed or variable rate, may
be reduced on such terms as the bank or trust company may determine,
provided that the terms of such reduction, including, if applicable, the
date on which the reduction will terminate, are disclosed to the borrow-
er on the written notice announcing the reduction, prior to the effec-
tive date of the reduction. A new method of determining an interest
charge is a reduction in the interest charge if the charge determined
under the new method never exceeds the charge under the original method.
The original interest charge or original method of determining the
interest charge may be applied after the reduction ends to the entire
outstanding indebtedness, including any indebtedness incurred when a
A. 9064 42
reduced interest charge applied and disclosure of the same shall be
provided to the borrower in the written notice announcing the reduction.
A reduction to an interest charge, including the resumption of the
original interest charge or the original method of determining the
interest charge, shall not be considered an amendment of the agreement
for purposes of this paragraph.
(9) Subject to such limitations and conditions as the banking AND
FINANCIAL SERVICES board may prescribe by general regulation, a bank or
trust company may make a loan pursuant to this subdivision which the
federal housing administrator has insured or has made a commitment to
insure and may receive and hold such debentures as are issued by the
federal housing administrator in payment of such insurance, or which is
guaranteed pursuant to the provisions of the act of congress entitled
the "Servicemen's Readjustment Act of 1944." No law of this state
prescribing or limiting the interest rate upon loans or advances of
credit or prescribing a penalty for violation thereof or prescribing the
nature, amount or form of security or requiring security upon which
loans or advances of credit may be made or prescribing or limiting the
period for which loans or advances of credit may be made or limiting the
amount of any class of loans, advances of credit or purchases which may
be made shall be deemed to apply to loans, advances of credit or
purchases made or to loans acquired by purchase pursuant to this para-
graph.
8. (a) The banking AND FINANCIAL SERVICES board shall have the power,
by a three-fifths vote of all its members, to prescribe by regulation
(i) the maximum charge which may be imposed in this state by a bank or
trust company in connection with a check or other written order drawn
upon it on insufficient funds, irrespective of whether the instrument is
paid, accepted, or returned by the bank, and (ii) the maximum charge
which may be imposed in this state by a bank or trust company in
connection with a check or other written order received by it for depos-
it or collection and subsequently dishonored and returned for any reason
by the drawee.
(b) No bank or trust company shall, in connection with the payment,
acceptance or return of such check or order, impose any fee, fine,
commission or other charge, however designated, in addition to the maxi-
mum charge established [therefore] THEREFOR by the banking AND FINANCIAL
SERVICES board pursuant to paragraph (a) of this subdivision, except
that nothing herein expressed shall prevent a bank or trust company from
taking, receiving, reserving or charging interest, as authorized by law
in connection with credit extended in connection with the payment of
such check or order or from imposing any charge in accordance with a
written agreement established in accordance with the provisions of
subdivision five of this section. A bank or trust company may, as an
accommodation to its customers, pay, accept, or return a check or order
without charge, or at a lesser charge than the maximum charge estab-
lished by the banking AND FINANCIAL SERVICES board.
(c) In prescribing a maximum charge pursuant to paragraph (a) of this
subdivision, the banking AND FINANCIAL SERVICES board shall consider the
following factors: (i) the cost of processing an overdraft or returned
check or order, as the case may be, (ii) the charge necessary to deter
overdrafts or returned checks or orders, as the case may be, and (iii)
such other economic or cost factors that the banking AND FINANCIAL
SERVICES board shall deem to be appropriate. Prior to the banking AND
FINANCIAL SERVICES board's prescribing any such maximum charge, the
superintendent shall make a written recommendation to the banking AND
A. 9064 43
FINANCIAL SERVICES board as to such maximum charge, reciting the cost
and other data upon which his recommendation is based.
(d) The banking AND FINANCIAL SERVICES board may promulgate such regu-
lations as it deems necessary and proper to implement and define the
provisions of this subdivision. The banking AND FINANCIAL SERVICES board
may prescribe maximum charges from time to time, but not more often than
once in any six month period, and shall provide reasonable notice to the
public of any change in such maximum charges, of the effective date of
such change, which shall not be less than seven days following the
adoption of such change by the banking AND FINANCIAL SERVICES board, and
of any rule or regulation adopted pursuant to this subdivision.
S 84. Section 111 of the banking law, as amended by chapter 360 of the
laws of 1984, is amended to read as follows:
S 111. Profits; credits to surplus fund and to undivided profits. In
any case where the combined capital stock, surplus fund and undivided
profits of a bank or trust company do not equal ten per centum of its
net deposit liabilities, the banking AND FINANCIAL SERVICES board may in
its discretion require such bank or trust company at the close of each
accounting period to credit its surplus fund with a portion of its net
profits for such period, not to exceed ten per centum thereof, until its
combined capital stock, surplus fund and undivided profits equal ten per
centum of its net deposit liabilities. For the purposes of this section,
the term "net deposit liabilities" shall mean total deposits including
all amounts due to national banks, banks, bankers, trust companies and
savings banks, the amounts due on certified and cashier's checks, and
for unpaid dividends less the amounts of balances due from national
banks, banks, bankers, and trust companies and cash items in process of
collection payable immediately upon presentation in the United States.
S 85. Section 124 of the banking law, as amended by chapter 684 of the
laws of 1938, is amended to read as follows:
S 124. Communications from [banking] department OF BANKING AND FINAN-
CIAL SERVICES to be submitted to directors and noted in minutes. Any
officer of a bank or trust company who receives from the office of the
superintendent an official communication as defined in article two of
this chapter shall submit such communication to the board of directors
at the next meeting of such board, and such communication shall be duly
noted in the minutes of the meetings of such board.
S 86. Subdivision 1 of section 125 of the banking law, as amended by
chapter 360 of the laws of 1984, is amended to read as follows:
1. Within fifteen days after service upon it of the notice provided
for by section thirty-seven of this chapter, every bank and every trust
company shall make a written report of its financial condition to the
superintendent, which report shall be in such form and contain such
information as the banking AND FINANCIAL SERVICES board may prescribe.
S 87. 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 photographic
reproductions thereof or records in photographic form shall constitute
compliance with the requirements of this section. Notwithstanding the
foregoing, the banking AND FINANCIAL SERVICES board may prescribe by
regulation such period of time longer or shorter than six years during
A. 9064 44
which all records kept by banks and trust companies as fiduciary shall
be preserved in original form.
S 88. Paragraphs (a) and (b) of subdivision 3 and paragraph (c) of
subdivision 7 of section 130 of the banking law, paragraphs (a) and (b)
of subdivision 3 as added by chapter 255 of the laws of 1973 and para-
graph (c) of subdivision 7 as added by chapter 299 of the laws of 1969,
are amended to read as follows:
(a) No executive officer of a bank or trust company may be an execu-
tive officer, director or trustee of another bank or trust company,
savings bank, savings and loan association, national bank located in
this state, federal savings and loan association located in this state,
bank holding company or foreign banking corporation maintaining a branch
in this state, unless permission therefor has been granted by the bank-
ing AND FINANCIAL SERVICES board pursuant to the provisions of subpara-
graph (b) of this subdivision, except that (1) an executive officer of a
bank or trust company which is a subsidiary of a bank holding company
may be (i) an executive officer and (ii) a director of the bank holding
company and of one or more banking institutions which are subsidiaries
of such bank holding company; and (2) an executive officer of a bank or
trust company owned by savings banks pursuant to subdivision eighteen of
section two hundred thirty-five, or by savings and loan associations or
federal savings and loan associations located in this state pursuant to
section three hundred seventy-nine-a, may be (i) an executive officer
and (ii) a director or trustee of one of the stockholders of such a bank
or trust company of which he is an executive officer; provided, however,
that except as stated in the foregoing exceptions, an executive officer
of a bank or trust company, who on the effective date of this act is an
executive officer, director or trustee of another bank or trust company,
savings bank, savings and loan association, national bank located in
this state, federal savings and loan association located in this state,
bank holding company or foreign banking corporation maintaining a branch
in this state, may continue to hold such other office, without permis-
sion from the banking AND FINANCIAL SERVICES board, until the expiration
of the term of such office or the close of business on the last day of
December, nineteen hundred seventy-four, whichever occurs sooner.
(b) The banking AND FINANCIAL SERVICES board shall have the power to
determine by regulation who shall be considered, under the provisions of
this subdivision, to be an executive officer, and by a general or
specific regulation, upon a three-fifths vote of all its members, to
grant permission to an executive officer of a bank or trust company to
be an executive officer, director or trustee or both an executive offi-
cer and director or a trustee of another bank or trust company, savings
bank, savings and loan association, national bank located in this state,
federal savings and loan association located in this state, bank holding
company, or foreign banking corporation maintaining a branch in this
state. Such permission may be granted only if in the judgment of the
banking AND FINANCIAL SERVICES board such service by the executive offi-
cer will be consistent with the policy of the state of New York as
declared in section ten of this chapter. The banking AND FINANCIAL
SERVICES board shall have the power to revoke such permission by a like
vote whenever it finds, after reasonable notice and an opportunity to be
heard, that the public interest requires such revocation.
(c) The banking AND FINANCIAL SERVICES board shall have power by
three-fifths vote of all its members to adopt such regulations as it
shall deem necessary or proper to implement the provisions of this
section.
A. 9064 45
S 89. Subdivision 2 of section 136-b of the banking law, as amended by
chapter 55 of the laws of 1965, is amended to read as follows:
2. Notwithstanding the provisions of subdivision one of this section,
the approval of the superintendent shall not be required with respect to
such merger or acquisition, if any of the corporations which are to
merge, or if the selling or acquiring corporation, is a banking subsid-
iary of a bank holding company, and the banking AND FINANCIAL SERVICES
board pursuant to section one hundred forty-two of this chapter has
granted its approval for such bank holding company, or any trustee or
trustees who hold voting stock of such banking subsidiary for the bene-
fit of the stockholders or members of such bank holding company, to vote
the stock of such banking subsidiary in favor of the proposed merger or
acquisition. The superintendent shall file the plan of merger or acqui-
sition and the certificate submitted to him pursuant to section one
hundred thirty-six or section one hundred thirty-six-a of this chapter,
together with a certified copy of the resolution of the banking AND
FINANCIAL SERVICES board granting such approval, in the office of the
superintendent, and, in the case of a merger, a duplicate of the plan
and of each of such certificates, together with a certified copy of such
resolution, shall be filed in the office of the clerk of the county in
which the receiving corporation is located. Upon such filing in the
office of the superintendent, the merger or acquisition shall become
effective, unless a later date is specified in the plan, in which event
the merger or acquisition shall become effective upon such later date.
For purposes of this subdivision, the terms "bank holding company" and
"banking subsidiary" shall have the meanings stated in section one
hundred forty-one of this chapter.
S 90. Subdivision 2-a of section 138 of the banking law, as amended by
chapter 265 of the laws of 1994, is amended to read as follows:
2-a. Notwithstanding the provisions of any law to the contrary, a bank
or trust company or national bank located in this state shall not be
required to repay any deposit made at a foreign branch of any such bank
if the branch cannot repay the deposit due to (i) an act of war, insur-
rection, or civil strife; or (ii) an action by a foreign government or
instrumentality, whether de jure or de facto, in the country in which
the branch is located preventing such repayment, unless such bank has
expressly agreed in writing to repay the deposit under such circum-
stances. The banking AND FINANCIAL SERVICES board may promulgate regu-
lations necessary to effectuate the provisions of this subdivision,
including regulations providing for adequate disclosure to retail depos-
itors in the United States of the restrictions on repayment contained in
this subdivision. The provisions of this subdivision shall not alter or
diminish the liability of a custodian of assets of a fund under section
one hundred seventy-eight-a of the retirement and social security law.
S 91. Section 140-a of the banking law, as amended by chapter 291 of
the laws of 1987, is amended to read as follows:
S 140-a. Stock option plans. Subject to such regulations and
restrictions as may be prescribed by the banking AND FINANCIAL SERVICES
board by a three-fifths vote of all the members thereof, every bank and
every trust company may grant options to purchase authorized and unis-
sued shares of its capital stock to officers, directors and employees,
for a consideration as authorized by section five thousand four of this
chapter of not less than one hundred [per cent] PERCENT of the fair
market value of the shares on the date the option is granted, pursuant
to the terms of a stock option plan which has previously been adopted by
the board of directors of the bank or trust company and approved by the
A. 9064 46
holders of a majority of the outstanding shares of capital stock of the
bank or trust company and by the superintendent. Stock options issued
hereunder shall not extend beyond a period of ten years from date of
issuance.
S 92. Subdivision 4 of section 141 of the banking law, as added by
chapter 146 of the laws of 1961, is amended to read as follows:
4. The term "successor" shall include any company which acquired,
directly or indirectly, from a bank holding company, stock of any bank-
ing institution, when and if the relationship between such company and
the bank holding company is such that the transaction effects no
substantial change in the control of the banking institution or benefi-
cial ownership of the stock thereof. The banking AND FINANCIAL SERVICES
board may, by regulation adopted by a three-fifths vote of all the
members thereof, further define the term "successor" to the extent
necessary to effectuate, or to prevent evasion of, the purposes of this
article.
S 93. Subdivision 1 of section 142 of the banking law, as amended by
section 18 of part O of chapter 59 of the laws of 2006, is amended to
read as follows:
1. It shall be unlawful except with the prior approval of the banking
AND FINANCIAL SERVICES board by a three-fifths vote of all the members
thereof (a) for any action to be taken that causes any company to become
a bank holding company; (b) for any action to be taken that causes a
banking institution to become, or to be merged or consolidated with, a
subsidiary of a bank holding company; (c) for any bank holding company,
or for any trustee or trustees acting for the benefit of the stockhold-
ers or members of any bank holding company, to acquire direct or indi-
rect ownership or control of any voting stock of any banking institution
if, after such acquisition, such company or such trustee or trustees or
both will directly or indirectly own, control or hold more than five per
centum of the voting stock of such banking institution; (d) for any bank
holding company or subsidiary thereof to acquire all or substantially
all of the assets of a banking institution; or (e) for any bank holding
company to merge or consolidate with another bank holding company. For
the purposes of this section, the term "bank holding company" shall be
deemed to include any successor thereof. Any company desiring to take
any action requiring approval under this subdivision shall submit an
application therefor, in writing, to the superintendent and pay to the
superintendent an investigation fee as prescribed pursuant to section
eighteen-a of this chapter to the superintendent. If such action
includes the acquisition of all the capital stock of one or more corpo-
rations organized under or subject to the provisions of article three,
six or ten of this chapter, there shall be submitted in duplicate
together with such application a written plan of acquisition of such
stock in a form satisfactory to the superintendent and containing the
information required by subdivision one of section one hundred forty-
three-a of this article and a certificate which complies with the
provisions of subdivision two of said section one hundred forty-three-a.
Upon receipt of such application, the superintendent shall post notice
of the receipt thereof upon the bulletin board of the [banking] depart-
ment OF BANKING AND FINANCIAL SERVICES. The superintendent shall submit
such application together with his or her recommendations in regard
thereto and all papers, correspondence and other information in his or
her possession and relating thereto, to the banking AND FINANCIAL
SERVICES board which shall by order grant or deny the application and
shall state the reasons for such grant or denial. An order granting such
A. 9064 47
application may be made only by three-fifths vote of all the members
thereof. An order shall be issued within one hundred twenty days after
the date of the submission of the application to the superintendent and
a copy thereof shall be posted upon the bulletin board of the [banking]
department OF BANKING AND FINANCIAL SERVICES. In determining whether or
not to approve any such application, the banking AND FINANCIAL SERVICES
board shall take into consideration (i) the declaration of policy
contained in section ten of this chapter, (ii) whether the effect of
such action shall be either to result in the formation of a bank holding
company or to expand the size or extent of the resulting or acquiring
bank holding company beyond limits consistent with adequate or sound
banking and the preservation thereof, or result in a concentration of
assets beyond limits consistent with effective competition, (iii) wheth-
er such formation, merger, consolidation or acquisition may result in
such a lessening of competition as to be injurious to the interest of
the public or tend toward monopoly, and (iv) primarily, the public
interest and the needs and convenience thereof.
S 94. Paragraphs (a) and (b) of subdivision 3 of section 143 of the
banking law, paragraph (a) as amended by chapter 702 of the laws of 2006
and paragraph (b) as added by chapter 255 of the laws of 1973, are
amended to read as follows:
(a) No executive officer of a bank holding company may be an executive
officer or director of another bank holding company or of a bank or
trust company, savings bank, savings and loan association, national bank
located in this state, federal savings and loan association located in
this state or foreign banking corporation maintaining a branch in this
state, unless permission therefor has been granted by the banking AND
FINANCIAL SERVICES board pursuant to the provisions of paragraph (b) of
this subdivision, except that an executive officer of a bank holding
company may be (i) an executive officer and (ii) a director of one or
more banking institutions or bank holding companies which are subsid-
iaries of such bank holding company; provided, however, that an execu-
tive officer of a bank holding company, who on the effective date of
this act is an executive officer or director of another bank holding
company or of a bank or trust company, or of a savings bank, savings and
loan association, national bank located in this state, federal savings
and loan association located in this state or foreign banking corpo-
ration maintaining a branch in this state, may continue to hold such
other office, without permission from the banking AND FINANCIAL SERVICES
board, until the expiration of the term of such office or the close of
business on the last day of December, nineteen hundred seventy-four,
whichever occurs sooner.
(b) The banking AND FINANCIAL SERVICES board shall have the power to
determine by regulation who shall be considered, under the provisions of
this subdivision, to be an executive officer, and by a general or
specific regulation, upon a three-fifths vote of all its members, to
grant permission to an executive officer of a bank holding company to be
at the same time an executive officer, director or trustee or both an
executive officer and a director or a trustee of another bank holding
company or of a bank or trust company, savings bank, savings and loan
association, national bank located in this state, federal savings and
loan association located in this state or foreign banking corporation
maintaining a branch in this state. Such permission may be granted only
if in the judgment of the banking AND FINANCIAL SERVICES board such
service by the executive officer will be consistent with the policy of
the state of New York as declared in section ten of this chapter. The
A. 9064 48
banking AND FINANCIAL SERVICES board shall have the power to revoke such
permission by a like vote whenever it finds, after a reasonable notice
and an opportunity to be heard, that the public interest requires such
revocation.
S 95. Subdivisions 3 and 5 of section 143-a of the banking law, subdi-
vision 3 as amended by chapter 702 of the laws of 2006 and subdivision 5
as added by chapter 1 of the laws of 1984, are amended to read as
follows:
3. If no action to be taken pursuant to the plan of acquisition
requires the prior approval of the banking AND FINANCIAL SERVICES board
pursuant to section one hundred forty-two or one hundred forty-three-b
of this article, the superintendent shall approve or disapprove of a
proposed plan of acquisition within one hundred twenty days after the
submission of such plan of acquisition to him, and in determining wheth-
er or not to approve any such plan the superintendent shall take into
consideration the declaration of policy contained in section ten of this
chapter. If any action to be taken pursuant to the plan of acquisition
requires such prior approval of the banking AND FINANCIAL SERVICES
board, the superintendent shall submit such plan of acquisition together
with his recommendations in regard thereto and all papers, correspond-
ence and other information in his possession and relating thereto, to
the banking AND FINANCIAL SERVICES board for its approval or disapproval
as part of the application submitted to it pursuant to said section one
hundred forty-two or one hundred forty-three-b. If the superintendent or
the banking AND FINANCIAL SERVICES board shall approve such plan of
acquisition, the superintendent shall file the plan, together with such
certificates and the original of the approval of the superintendent or a
certified copy of the approving resolution of the banking AND FINANCIAL
SERVICES board, in the office of the superintendent. Upon such filing in
the office of the superintendent, the plan, and the acquisitions
provided for therein, shall become effective, unless a later date is
specified in the plan, in which event the plan and such acquisitions
shall become effective upon such later date.
5. Notwithstanding the provisions of subdivisions one, two, three and
four of this section, the banking AND FINANCIAL SERVICES board, by
general regulation, may establish particular procedures enabling the
acquisition of all the capital stock of a stock-form savings bank or
stock-form savings and loan association by a company having capital
stock divided into shares, provided that such acquisition occurs as part
of a transaction in which such savings bank or savings and loan associ-
ation is converted from mutual to stock form.
S 96. Subdivisions 1, 2 and 3 of section 143-b of the banking law,
subdivisions 1 and 3 as amended by chapter 793 of the laws of 1980 and
subdivision 2 as amended by section 20 of part O of chapter 59 of the
laws of 2006, are amended to read as follows:
1. It shall be unlawful except with the prior approval of the banking
AND FINANCIAL SERVICES board by a three-fifths vote of all the members
thereof for any company to acquire control of any banking institution,
directly or indirectly, provided, however, that the provisions of this
section shall not apply to a bank holding company, a company which has
submitted to the superintendent a plan of acquisition pursuant to
section one hundred forty-three-a or stock described in subdivision two
of section one hundred forty-two. As used in this section, the term
"control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a bank-
ing institution, whether through the ownership of voting stock of such
A. 9064 49
banking institution, the ownership of voting stock of any company which
possesses such power or otherwise. Control shall be presumed to exist if
any company, directly or indirectly, owns, controls or holds with the
power to vote ten per centum or more of the voting stock of any banking
institution or of any company which owns, controls or holds with power
to vote ten per centum or more of the voting stock of such banking
institution, but no person shall be deemed to control a banking institu-
tion solely by reason of his being an officer or director of such bank-
ing institution or company. The superintendent may in his discretion,
upon the application of a banking institution or any company which,
directly or indirectly, owns, controls or holds with power to vote or
seeks to own, control or hold with power to vote any voting stock of
such banking institution, determine whether or not the ownership,
control or holding of such voting stock would constitute control of such
banking institution for purposes of this section.
2. A company desiring to acquire control of a banking institution may
file application therefor, in writing, with the superintendent and pay
an investigation fee as prescribed pursuant to section eighteen-a of
this chapter to the superintendent. The application shall contain such
information as the superintendent or banking AND FINANCIAL SERVICES
board, by rule or regulation, may prescribe as necessary or appropriate
for the purpose of making the determination required by subdivision
three of this section.
3. Upon receipt of such application, the superintendent shall post
notice of the receipt thereof upon the bulletin board of the [banking]
department OF BANKING AND FINANCIAL SERVICES. The superintendent shall
submit such application together with his recommendation in regard ther-
eto and all papers, correspondence and other information in his
possession and relating thereto, to the banking AND FINANCIAL SERVICES
board which shall by order grant or deny the application and shall state
the reasons for such grant or denial. An order granting such application
may be made only by three-fifths votes of all the members thereof. An
order shall be issued within one hundred twenty days after the date of
the submission of the application to the superintendent and a copy ther-
eof shall be posted upon the bulletin board of the [banking] department
OF BANKING AND FINANCIAL SERVICES. In determining whether or not to
approve any such application, the banking AND FINANCIAL SERVICES board
shall take into consideration (i) the declaration of policy contained in
section ten of the chapter, (ii) whether the effect of such action shall
be consistent with adequate or sound banking and the preservation there-
of, or result in a consolidation of assets beyond limits consistent with
effective competition, (iii) whether such acquisition of control may
result in such a lessening of competition as to be injurious to the
interest of the public or tend toward monopoly, and (iv) primarily, the
public interest and the needs and convenience thereof.
S 97. Section 144 of the banking law, as added by chapter 146 of the
laws of 1961, is amended to read as follows:
S 144. Administration. 1. Within one hundred eighty days after the
date of enactment of this act, or within one hundred eighty days after
becoming a bank holding company, whichever is later, a bank holding
company shall register with the superintendent, on forms prescribed by
the banking AND FINANCIAL SERVICES board, such information with respect
to the inter-company relationships and stock holdings in banking insti-
tutions of such bank holding company and its subsidiaries, and related
matters, as the banking AND FINANCIAL SERVICES board may deem necessary
or appropriate to carry out the purposes of this chapter. The banking
A. 9064 50
AND FINANCIAL SERVICES board may, in its discretion, by a three-fifths
vote of all the members thereof, extend the time within which a bank
holding company shall register and file the requisite information.
2. The banking AND FINANCIAL SERVICES board from time to time may
require from a bank holding company and its non-banking subsidiaries
reports under oath to keep such board informed as to whether the
provisions of this chapter have been complied with.
S 98. Subdivision 4 of section 150 of the banking law, as amended by
chapter 547 of the laws of 2008, is amended to read as follows:
4. When used in this article, an "affiliated bank" or "affiliated
trust company" of a subsidiary trust company means any bank, trust
company, savings bank, savings and loan association, national bank,
federal savings bank, federal savings association, or out-of-state state
bank (as such term is defined in section two hundred twenty-two of this
chapter), or such other banking institution as the banking AND FINANCIAL
SERVICES board may permit specifically or by general rule or regulation,
which is a subsidiary of the bank holding company which owns such
subsidiary trust company.
S 99. Section 155 of the banking law, as added by chapter 514 of the
laws of 1977, is amended to read as follows:
S 155. Applicable laws and regulations. To the extent not inconsistent
with provisions of this article, a subsidiary trust company shall be
subject to the laws of the state of New York generally applicable to
trust companies. Nothing in this article shall be deemed to affect in
any way the powers of the banking AND FINANCIAL SERVICES board to adopt,
alter or amend rules and regulations with respect to trust companies,
provided that no such rule or regulation shall be applicable to a
subsidiary trust company to the extent it is inconsistent with, or
purports to limit the powers or rights of a subsidiary trust company
expressly granted by, the provisions of this article.
S 100. Subdivision 1 of section 173 of the banking law, as separately
amended by chapters 349 and 1072 of the laws of 1968, is amended to read
as follows:
1. No private banker shall take, receive, reserve or charge on any
loan or discount made, or upon any note, bill of exchange or other
evidence of debt, interest as computed pursuant to this section, at a
rate greater than the rate prescribed by the banking AND FINANCIAL
SERVICES board pursuant to section fourteen-a of this chapter, or, if no
rate has been so prescribed, six per centum per annum, or two dollars if
the interest so computed is less than that amount. Such interest may be
taken in advance, reckoning the days for which the note, bill or
evidence of debt has to run. The knowingly taking, receiving, reserving
or charging a greater rate of interest shall be held and adjudged a
forfeiture of the entire interest which the note, bill of exchange or
other evidence of debt carries with it, or which has been agreed to be
paid thereon. If a greater rate of interest has been paid, the person
paying the same or his legal representatives may recover twice the
entire amount of the interest thus paid from the private banker. The
purchase, discount or sale of a bona fide bill of exchange, note or
other evidence of debt payable at another place than the place of such
purchase, discount or sale at not more than the current rate of exchange
for sight draft, or a reasonable charge for the collection of the same,
in addition to the interest, shall not be considered interest for the
purpose of any law regulating the maximum rate of interest which may be
charged, taken or received.
A. 9064 51
Anything contained in this subdivision to the contrary notwithstand-
ing, the charging of interest or discount on a loan or discount at an
office of a private banker located outside of the states of the United
States of America and the District of Columbia at a rate allowed by the
laws of the country, territory, dependency, province, dominion, insular
possession or other political subdivision where such office is located,
or the acquisition by a private banker of a part interest or the entire
interest in any loan or discount heretofore or hereafter made by a bank
or trust company or any other banking institution at an office located
outside of the states of the United States of America and the District
of Columbia, shall not be a violation of this section.
S 101. Section 176 of the banking law, as amended by chapter 547 of
the laws of 1938, the opening paragraph as amended by chapter 232 of the
laws of 1957 and the closing paragraph as amended by section 22 of part
O of chapter 59 of the laws of 2006, is amended to read as follows:
S 176. Reports required by superintendent; penalty for failure to
make. Within fifteen days after service upon any private banker of the
notice provided for by section thirty-seven of this chapter, he OR SHE
shall make a written report to the superintendent of the financial
condition of his OR HER business as a private banker, which report shall
be in such form and shall contain such information as the banking AND
FINANCIAL SERVICES board may prescribe. Such report shall be published
by such private banker in such manner as the banking AND FINANCIAL
SERVICES board may prescribe in a newspaper published in the place where
the office of such private banker is located or if no newspaper is
published there, in a newspaper of general circulation in such place.
Every private banker shall also make such other special reports to the
superintendent as he OR SHE may from time to time require in such form
and on such dates as may be prescribed by the superintendent, which
reports shall if required by the superintendent be verified in such form
as he OR SHE may prescribe.
If any private banker shall fail to make any report required by this
section on or before the date designated for the making thereof or shall
fail to include therein any prescribed matter, such private banker shall
forfeit to the people of the state an amount as determined pursuant to
section forty-four-a of this chapter for every day that such report
shall be delayed or withheld and for every day that he or she shall fail
to report any such omitted matter, unless the time therefor shall have
been extended by the superintendent, as provided in article two of this
chapter.
S 102. Section 195 of the banking law, as added by chapter 1064 of
the laws of 1960, is amended to read as follows:
S 195. Rules, regulations and orders. The banking AND FINANCIAL
SERVICES board by a three-fifths vote of all the members thereof shall
have power to adopt, amend and enforce such rules, regulations and
orders as it may deem necessary to enable it to administer and carry out
the provisions of this article and to prevent evasions thereof.
S 103. Subdivision 1 of section 201-a of the banking law, as amended
by chapter 120 of the laws of 1968, is amended to read as follows:
1. When the superintendent shall have issued a license as provided in
section twenty-six of this chapter to any such foreign banking corpo-
ration, it may engage in the business specified in sections two hundred
and two hundred one of this article either as an agency or as a branch
at the location specified in such license for a period not exceeding one
year from the date of such license or, if such license so provides,
until such license is surrendered or revoked. A license issued for a
A. 9064 52
period not exceeding one year may, upon the approval of the superinten-
dent and the banking AND FINANCIAL SERVICES board, be renewed as
provided in section twenty-six of this chapter. No such license shall be
transferable or assignable. Every such license shall be at all times
conspicuously displayed in the place of business specified therein. In
the event that such license shall have been revoked by the superinten-
dent, as provided in article two of this chapter, it shall be surren-
dered to the superintendent within twenty-four hours after such corpo-
ration has received written notice of such revocation.
S 104. Subdivisions 1 and 3 of section 202-a of the banking law,
subdivision 1 as amended by chapter 360 of the laws of 1984 and subdivi-
sion 3 as added by chapter 288 of the laws of 1987, are amended to read
as follows:
1. A foreign banking corporation licensed pursuant to article two of
this chapter to maintain one or more agencies in this state shall not
engage in the business of receiving deposits in this state; provided (a)
that such foreign banking corporation may maintain for the account of
others credit balances incidental to, or arising out of, the exercise of
its lawful powers; and (b) that the banking AND FINANCIAL SERVICES board
is authorized to adopt regulations that permit a foreign banking corpo-
ration, licensed pursuant to article two of this chapter to maintain one
or more agencies in this state, to issue to a corporation, partnership,
trust, unincorporated association, joint stock association or similar
association obligations each in a principal amount of not less than one
hundred thousand dollars; and (c) that such foreign banking corporation
may accept deposits other than from citizens or residents of the United
States as the superintendent shall define by regulation.
3. The banking AND FINANCIAL SERVICES board shall have power to
prescribe, by specific or general regulation, to the extent to which and
the conditions upon which, the deposits and credit balances in agencies
and branches in this state of foreign banking corporations may be estab-
lished, maintained and paid out.
S 105. Subdivisions 1 and 2 of section 202-b of the banking law,
subdivision 1 as amended by chapter 131 of the laws of 2002 and subdivi-
sion 2 as amended by chapter 496 of the laws of 1993, are amended to
read as follows:
1. Upon opening a branch or agency and thereafter, a foreign banking
corporation licensed pursuant to article two of this chapter shall keep
on deposit, in accordance with such rules and regulations as the banking
AND FINANCIAL SERVICES board shall from time to time promulgate by a
three-fifths vote of all the members thereof, with such banks or trust
companies or private bankers or national banks in the state of New York
as such foreign banking corporation may designate and the superintendent
may approve, interest-bearing stocks and bonds, notes, debentures, or
other obligations of the United States or any agency or instrumentality
thereof, or guaranteed by the United States, or of this state, or of a
city, county, town, village, school district, or instrumentality of this
state or guaranteed by this state, or dollar deposits, or obligations of
the International Bank for Reconstruction and Development, or obli-
gations issued by the Inter-American Development Bank, or obligations of
the Asian Development Bank, or obligations issued by the African Devel-
opment Bank, or obligations issued by the International Finance Corpo-
ration, or bonds, notes, debentures, or other obligations issued by or
guaranteed by the Federal Home Loan Mortgage Corporation (Freddie Mac)
or by the Federal National Mortgage Corporation (Fannie Mae), or bonds,
notes, debentures, or other obligations issued by or guaranteed by the
A. 9064 53
Student Loan Marketing Association (SALLIE MAE) or all bonds, notes,
debentures, or other obligations issued by or guaranteed by a federal
home loan bank, or bonds, notes, debentures or other obligations of any
unaffiliated issuer provided that, at the time of such investment, the
obligation has received the highest rating of an independent rating
service designated by the banking AND FINANCIAL SERVICES board or, if
the obligation is rated by more than one such service, the highest
rating of at least two such services, or such other assets as the super-
intendent shall by rule or regulation permit, to an aggregate amount to
be determined by the superintendent, based upon principal amount or
market value, whichever is lower, in the case of the above-described
securities, and subject to such limitations as he or she shall
prescribe; provided, however, that the superintendent may determine, in
his or her discretion, that any such bonds, notes, debentures or other
obligations of a particular issuer are not acceptable for purposes of
meeting the requirements of this subdivision. The superintendent may
from time to time require that the assets deposited pursuant to this
subdivision may be maintained by the foreign banking corporation at such
amount, in such form and subject to such conditions as he or she shall
deem necessary or desirable for the maintenance of a sound financial
condition, the protection of depositors and the public interest, and to
maintain public confidence in the business of such branch or branches or
such agency or agencies. The superintendent may give credit to reserves
required to be maintained with a federal reserve bank in or outside the
state of New York pursuant to federal law, subject to such rules and
regulations as the superintendent may from time to time promulgate. So
long as it shall continue business in the ordinary course, such foreign
banking corporation shall be permitted to collect interest on the secu-
rities so deposited and from time to time exchange, examine and compare
such securities.
2. Each foreign banking corporation shall hold in this state currency,
bonds, notes, debentures, drafts, bills of exchange or other evidences
of indebtedness, including loan participation agreements or certif-
icates, or other obligations payable in the United States or in United
States funds or, with the prior approval of the superintendent, in funds
freely convertible into United States funds, or such other assets as the
superintendent shall by rule or regulation permit, in an amount which
shall bear such relationship as the banking AND FINANCIAL SERVICES board
shall by regulation prescribe to liabilities of such foreign banking
corporation appearing in the books, accounts or records of its agency,
agencies, branch or branches in this state as liabilities of such agen-
cy, agencies, branch or branches, including acceptances and such other
liabilities (including contingent liabilities) as the superintendent
shall determine, but excluding amounts due and other liabilities to
other offices, agencies or branches of, and affiliates of, such foreign
banking corporation. As used in this subdivision, (i) "affiliate" shall
mean any person or entity, or group of persons or entities acting in
concert, that controls, is controlled by or is under common control with
such foreign banking corporation and (ii) "control" means any person, or
group of persons acting in concert, directly or indirectly, owning,
controlling or holding with power to vote, more than fifty percent of
the voting stock of a company, or having the ability in any manner to
elect a majority of the directors of a company, or otherwise exercising
a controlling influence over the management and policies of a company as
defined by the superintendent by regulation. For purposes of this subdi-
vision, the term "person" shall mean a corporation, unincorporated asso-
A. 9064 54
ciation, partnership, or any other entity or individual. For the
purposes of this subdivision [two], the superintendent shall value mark-
etable securities at principal amount or market value, whichever is
lower, shall have the right to determine the value of any non-marketable
bond, note, debenture, draft, bill of exchange, other evidence of
indebtedness, including loan participation agreements or certificates,
or of any other asset or obligation held by or owed to the foreign bank-
ing corporation or its agency, agencies, branch or branches within the
state, and in determining the amount of assets for the purpose of
computing the above ratio of assets to liabilities, shall have the power
to exclude in whole or in part any particular asset. If, by reason of
the existence or the potential occurrence of unusual and extraordinary
circumstances, the superintendent deems it necessary or desirable for
the maintenance of a sound financial condition, the protection of depos-
itors, creditors and the public interest, and to maintain public confi-
dence in the business of the agency, agencies, branch or branches of a
foreign banking corporation, he may, subject to such terms and condi-
tions as he may prescribe, require such foreign banking corporation to
deposit the assets required to be held in this state pursuant to this
subdivision [two] with such banks or trust companies or private bankers
or national banks located in this state, as the superintendent may
designate.
S 106. Section 202-c of the banking law, as amended by chapter 883 of
the laws of 1980, is amended to read as follows:
S 202-c. Reserves against deposits. Each such foreign banking corpo-
ration which is authorized to maintain a branch or branches in this
state shall maintain such reserves against the deposits of such branch
or branches as may be required from time to time by the laws of this
state to be maintained by banks and trust companies. Such reserves shall
be maintained, subject to call, as provided by sections thirty-three and
one hundred seven of this chapter; provided, however, that any such
foreign banking corporation which maintains reserves with a federal
reserve bank pursuant to federal law shall be exempt from the preceding
provisions of this section so long as it shall comply with the require-
ments of such law with reference to reserves, and provided further that
the banking AND FINANCIAL SERVICES board may determine that it is neces-
sary or appropriate to require such a foreign banking corporation to
maintain additional reserves against the deposits of its branch or
branches in this state, taking into consideration the character of busi-
ness conducted by such institutions and the need to maintain vigorous
and fair competition between and among such branches and banks organized
under the laws of this state. As to any such additional reserves which
are required to be maintained pursuant to this section, to the extent
permitted by the superintendent, amounts carried on the books of any
such branch or branches as credits to the account of another office or
branch or wholly owned (except for a nominal number of directors'
shares) subsidiary of such foreign banking corporation shall not be
deemed to be deposits.
S 107. Section 202-j of the banking law, as added by chapter 631 of
the laws of 1981, is amended to read as follows:
S 202-j. Power to act as trustee under self-employed retirement trust
or individual retirement trust. Each such foreign banking corporation
which is authorized to maintain a branch or branches in this state the
deposits of which are insured by the federal deposit insurance corpo-
ration or any successor may, subject to any regulations prescribed by
the banking AND FINANCIAL SERVICES board, act through any such branch as
A. 9064 55
trustee under a retirement plan established pursuant to the provisions
of the act of congress entitled "Self-employed Individuals Tax Retire-
ment Act of 1962" as such provisions may be amended from time to time,
and under an individual retirement account plan established pursuant to
the amendments to the provisions of the Internal Revenue Code contained
in the act of congress entitled "Employee Retirement Income Security Act
of 1974" as such provisions may be amended from time to time, provided
that the provisions of such retirement or individual retirement account
plan require the funds of such trust to be invested exclusively in
deposits of branches of foreign banking corporations located in this
state the deposits of which are insured by the federal deposit insurance
corporation or any successor and in deposits of banks, trust companies,
savings banks, savings and loan associations, federal mutual savings or
federal savings banks or federal savings and loan associations whose
principal offices are located in this state. In the event that any such
retirement or individual retirement account plan, which in the judgment
of the foreign banking corporation constituted a qualified plan under
the provisions of the applicable act of congress hereinabove mentioned
and the regulations promulgated thereunder at the time the trust was
established and accepted by the foreign banking corporation is subse-
quently determined not to be such a qualified plan or subsequently ceas-
es to be such a qualified plan, in whole or in part, the foreign banking
corporation may, nevertheless, continue to act as trustee of any depos-
its theretofore made under such plan and to dispose of the same in
accordance with the directions of the depositor and the beneficiaries
thereof. No foreign banking corporation, in respect to deposits made
under this section, shall be required to segregate such deposits from
other deposits of such foreign banking corporation, provided, however,
that the foreign banking corporation shall keep appropriate records
showing in proper detail all transactions engaged in under the authority
of this section.
S 108. Paragraph (c) of subdivision 3 of section 204-a of the banking
law, as amended by chapter 265 of the laws of 1994, is amended to read
as follows:
(c) Notwithstanding the provisions of any law to the contrary, a
foreign banking corporation operating a branch or branches or an agency
or agencies in this state shall not be required to repay, at any such
branch, branches, agency or agencies in this state, any deposit made at
a foreign office of any such foreign banking corporation if such office
cannot repay the deposit due to (i) an act of war, insurrection, or
civil strife; or (ii) an action by a foreign government or instrumental-
ity, whether de jure or de facto, in the country in which the office is
located preventing such repayment, unless the foreign banking corpo-
ration operating in this state has expressly agreed in writing to repay
the deposit under such circumstances. The banking AND FINANCIAL
SERVICES board may promulgate regulations necessary to effectuate the
provisions of this paragraph, including regulations providing for
adequate disclosure to retail depositors in the United States of the
restrictions on repayment contained in this subdivision. The provisions
of this paragraph shall not alter or diminish the liability of a custo-
dian of assets of a fund under section one hundred seventy-eight-a of
the retirement and social security law.
S 109. Paragraph (b) of subdivision 2 and subdivision 6 of section 207
of the banking law, as added by chapter 849 of the laws of 1964, are
amended to read as follows:
A. 9064 56
(b) Sent by or on behalf of the plaintiff to such foreign banking
corporation by registered mail with return receipt requested, at the
post office address specified for the purpose of mailing process, on
file in the [banking] department OF BANKING AND FINANCIAL SERVICES, or
with any official or body performing the equivalent function, in the
jurisdiction of its incorporation, or if no such address is there speci-
fied, to its registered or other office there specified, or if no such
office is there specified, to the last address of such foreign banking
corporation known to the plaintiff.
6. The [banking] department OF BANKING AND FINANCIAL SERVICES shall
keep a record of each process served upon the superintendent under this
section, including the date of service. It shall, upon request made
within ten years of such service, issue a certificate under its seal
certifying as to the receipt of the service by an authorized person, the
date and place of such service and the receipt of the statutory fee.
Process served upon the superintendent under this section shall be
destroyed [by him] after a period of ten years from such service.
S 110. Subdivisions 1, 2 and 3 of section 209 of the banking law, as
added by chapter 255 of the laws of 1973, are amended to read as
follows:
1. No executive officer of a foreign banking corporation maintaining a
branch in this state may be an executive officer, director or trustee of
a bank or trust company, savings bank, savings and loan association,
national bank located in this state, federal savings and loan associ-
ation located in this state, bank holding company or another foreign
banking corporation maintaining a branch in this state, unless permis-
sion therefor has been granted by the banking AND FINANCIAL SERVICES
board pursuant to the provisions of subdivision three of this section,
except that an executive officer of a foreign banking corporation main-
taining a branch in this state which is a subsidiary of a bank holding
company may be (i) an executive officer and (ii) a director of the bank
holding company of which such foreign banking corporation is a subsid-
iary, and of one or more of the banking institutions which are subsid-
iaries of such bank holding company; and provided, however, that, except
as stated in the foregoing exceptions, an executive officer of a foreign
banking corporation maintaining a branch in this state, who on the
effective date of this act is an executive officer, director or trustee
of a bank or trust company, savings bank, savings and loan association,
national bank located in this state, federal savings and loan associ-
ation located in this state, bank holding company or another foreign
banking corporation maintaining a branch in this state, may continue to
hold such other office, without permission from the banking AND FINAN-
CIAL SERVICES board, until the expiration of the term of such office or
the close of business on the last day of December, nineteen hundred
seventy-four, whichever occurs sooner.
2. No executive officer of a national bank located in this state may
be an executive officer, director or trustee of a bank or trust company,
savings bank, savings and loan association, bank holding company or
foreign banking corporation maintaining a branch in this state, unless
permission therefor has been granted by the banking AND FINANCIAL
SERVICES board pursuant to the provisions of subdivision three of this
section, except that (1) an executive officer of a national bank located
in this state, which is a subsidiary of a bank holding company may be
(i) an executive officer and (ii) a director of the bank holding company
and of one or more banking institutions which are subsidiaries of such
bank holding company; provided, however, that, except as stated in the
A. 9064 57
foregoing exceptions, an executive officer of a national bank located in
this state, who on the effective date of this act is an executive offi-
cer, director or trustee of a bank or trust company, savings bank,
savings and loan association, bank holding company or foreign banking
corporation maintaining a branch in this state, may continue to hold
such other office, without permission from the banking AND FINANCIAL
SERVICES board, until the expiration of the term of such office or the
close of business on the last day of December, nineteen hundred seven-
ty-four, whichever occurs sooner.
3. The banking AND FINANCIAL SERVICES board shall have the power to
determine by regulation who shall be considered, under the provisions of
this subdivision, to be an executive officer, and by a general or
specific regulation, upon a three-fifths vote of all its members, to
grant permission to an executive officer of a foreign banking corpo-
ration maintaining a branch in this state and to an executive officer of
a national bank located in this state, to be at the same time an execu-
tive officer, trustee or director or both an executive officer and a
trustee or director of a bank or trust company, savings bank, savings
and loan association, national bank located in this state, federal
savings and loan association located in this state, bank holding compa-
ny, and foreign banking corporation maintaining a branch in this state.
Such permission may be granted only if in the judgment of the banking
AND FINANCIAL SERVICES board such service by the executive officer will
be consistent with the policy of the state of New York as declared in
section ten of this chapter. The banking AND FINANCIAL SERVICES board
shall have the power to revoke such permission by a like vote whenever
it finds, after reasonable notice and an opportunity to be heard, that
the public interest requires such revocation.
S 111. The first opening paragraph of section 218 of the banking law,
as amended by chapter 384 of the laws of 1985, is amended to read as
follows:
Such corporation shall be subject to the supervision, examination and
control of the superintendent of banks AND FINANCIAL SERVICES in the
same manner as banking organizations are so supervised, examined and
controlled by him OR HER pursuant to this chapter, and shall be examined
by him OR HER annually, but such corporation shall not be deemed to be a
banking organization nor be required to pay a fee for such an examina-
tion. Such corporation shall make an annual report of its condition to
the governor, legislature and superintendent of banks AND FINANCIAL
SERVICES, on or before January first of each year.
S 112. Section 221-d of the banking law, as added by chapter 493 of
the laws of 1979, is amended to read as follows:
S 221-d. Conditions precedent to issuing license; procedure where
application denied. Upon the filing of an application for a license, if
the superintendent shall find that the financial responsibility, experi-
ence, character, and general fitness of the foreign banking corporation
and its representative are such as to command the confidence of the
community and to warrant belief that the representative will operate
honestly, fairly, and efficiently within the purpose and intent of this
article, a license shall thereupon be issued in duplicate to conduct the
activity described in section [221-a] TWO HUNDRED TWENTY-ONE-A of this
article in accordance with the provisions of this article. If the super-
intendent shall not so find, the license shall not be issued, and the
applicant shall be notified of the denial. The superintendent shall
transmit one copy of such license to the applicant and file another in
the office of the [banking] department OF BANKING AND FINANCIAL
A. 9064 58
SERVICES. Such license shall remain in full force and effect until it is
surrendered by the licensee or revoked or suspended as hereinafter
provided. The superintendent shall approve or deny every application for
a license hereunder within ninety days from the filing thereof provided,
however, that failure to act within the prescribed period shall not be
deemed approval of any such application.
S 113. 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 AND FINANCIAL SERVICES board, consistent with the declaration of
policy described in section fourteen-e of this chapter, shall be
empowered to deem inapplicable 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 114. Subdivisions 1, 1-a, 5-a, 5-b, 16 and 24 of section 234 of the
banking law, subdivision 1 as amended by chapter 63 of the laws of 1992,
subdivisions 1-a and 5-a as amended by chapter 360 of the laws of 1984,
subdivision 5-b as amended by chapter 638 of the laws of 1981, subdivi-
sion 16 as amended by chapter 1150 of the laws of 1969 and subdivision
24 as added by chapter 1 of the laws of 1983, are amended to read as
follows:
1. To receive and repay deposits, including demand deposits; invest
its funds; pay interest on deposits; and exercise all such incidental
powers as shall be necessary to conduct the business of a savings bank,
including, subject to regulation by the banking AND FINANCIAL SERVICES
board, the power to charge for maintaining a demand deposit account or
for honoring checks drawn on or accepting deposits made to such an
account.
1-a. Subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper, to contract
to receive time deposits, including deposits upon which the savings bank
contracts to pay interest at a fixed rate.
5-a. Subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper, to borrow
money for purposes other than that of repaying depositors and to pledge
or hypothecate its assets as collateral for any such loans.
5-b. Subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper and notwith-
standing any other provisions of law, to issue notes, bonds, debentures,
or other obligations or other securities subordinated to deposits in
such savings bank; provided that, unless the superintendent has given
prior approval otherwise, the aggregate principal amount thereof at the
time of issuance shall not exceed twenty-five [per cent] PERCENT of the
net worth of such savings bank, exclusive of all such notes, bonds,
debentures, or other obligations or other securities. The proceeds or
other consideration derived by a savings bank from the issuance pursuant
to this subdivision of any such notes, bonds, debentures, or other obli-
A. 9064 59
gations or other securities shall be deemed for purposes of this chapter
to constitute a part of the net worth of such savings bank.
16. To service mortgages for others, and to render investment advice
incidental to the purchase of and investment in mortgages by others,
provided, however, that the superintendent of banks AND FINANCIAL
SERVICES shall have power to prescribe, by specific or general regu-
lation, the extent to which and the conditions upon which such mortgages
may be serviced and such investment advice may be rendered.
24. Subject to such regulations as the banking AND FINANCIAL SERVICES
board finds to be necessary and proper, and notwithstanding any other
provision of law, to accept federal tax and loan accounts, the balances
of which are payable on demand without previous notice of intended with-
drawal and to pledge collateral to secure such accounts.
S 115. Section 234-b of the banking law, as added by chapter 883 of
the laws of 1980, is amended to read as follows:
S 234-b. Trust powers. 1. The banking AND FINANCIAL SERVICES board is
authorized and empowered to grant permission to a savings bank to exer-
cise any or all of the powers specified in sections one hundred, one
hundred-a, one hundred-b and one hundred-c of this chapter. In passing
upon applications for permission to exercise any such powers, the bank-
ing AND FINANCIAL SERVICES board may take into consideration the amount
of surplus of the applying savings bank, whether or not such surplus is
sufficient under the circumstances of the case, the needs of the commu-
nity to be served and any other facts and circumstances that seem to it
proper, and may grant or refuse it permission accordingly.
2. Whenever the laws of this state require a trust company acting in a
fiduciary capacity to deposit securities with the state authorities for
the protection of private or court trusts, a savings bank, so acting, is
empowered to make similar deposits of securities.
[4] 3. The banking AND FINANCIAL SERVICES board is authorized to
promulgate such regulations as it may deem necessary or proper to imple-
ment the provisions of this section and the proper exercise of the
powers granted by this section.
S 116. Subdivision 5-a of section 235 of the banking law, as added by
chapter 457 of the laws of 1966 and the opening paragraph as amended by
chapter 1 of the laws of 1983, is amended to read as follows:
5-a. Bonds and mortgages and notes and mortgages on unimproved real
property in this state or outside this state, subject to such limita-
tions as the banking AND FINANCIAL SERVICES board may prescribe.
S 117. The opening paragraph and paragraph (h) of subdivision 6 and
subdivision 6-a of section 235 of the banking law, as amended by chapter
1 of the laws of 1983, are amended to read as follows:
Bonds and mortgages and notes and mortgages on improved real property,
including leasehold estates, in this state, and, subject to such limita-
tions and conditions as the banking AND FINANCIAL SERVICES board may
prescribe by general regulation, in any other location outside this
state. The provisions of this subdivision shall not constitute the
authority to make a loan to a natural person upon the security of a
mortgage which is not a first lien.
(h) A savings bank may, subject to such regulations and restrictions
as the banking AND FINANCIAL SERVICES board finds to be necessary and
proper, participate and invest in (1) loans of a type that it is author-
ized to invest in pursuant to subparagraph (a) of paragraph four of
subdivision eight of section two hundred thirty-five of this chapter and
(2) in any bond and mortgage or note and mortgage on improved and unen-
cumbered real property including leasehold estates, in which it is indi-
A. 9064 60
vidually authorized to invest, which said mortgage is duly recorded or
registered in the office of the proper recording officer of the county
in which the real property described in the mortgage is located,
provided that no such investment shall be made by a savings bank in any
part interest in such mortgage which is junior or subordinate to any
other part interest nor if the aggregate amount of all part interests in
such mortgage when added together will exceed any percentage of the
appraised value of such real property by which the authority of a
savings bank to invest individually in such mortgage is limited. Invest-
ments made by any savings bank in mortgage loans pursuant to this subdi-
vision and pursuant to subdivision twenty-eight of this section shall be
included in the computation of permissive investment in mortgage loans
pursuant to paragraph (d) of subdivision six of this section.
6-a. A savings bank may, in addition to the authority granted under
any other subdivisions of this section, make a loan to a natural person
upon the security of a mortgage which is not a first lien at the rate or
rates agreed to by the savings bank and the borrower, subject to such
regulations as the banking AND FINANCIAL SERVICES board may prescribe.
Such regulations by the banking AND FINANCIAL SERVICES board may include
such restrictions as the banking AND FINANCIAL SERVICES board finds
necessary or proper, including without limitation, a restriction as to
the percentage of total assets which may be invested in such loans or a
restriction on the loan to appraisal value of property securing such
loan.
For purposes of this subdivision, the term mortgage shall include a
lien on an existing ownership interest in certificates of stock or other
evidence of an ownership interest in, and a proprietary lease from, a
corporation or partnership formed for the purpose of the cooperative
ownership of real estate.
S 118. Subparagraph (e) of paragraph 3 of subdivision 7 of section 235
of the banking law, as amended by chapter 837 of the laws of 1958, the
tenth undesignated item as amended by chapter 407 of the laws of 1959,
is amended to read as follows:
(e) fixed interest-bearing mortgage bonds other than those described
in paragraphs (a) or (b) hereof, income mortgage bonds, collateral trust
bonds or obligations other than those described in paragraph (d) hereof,
or unsecured bonds or obligations, issued, assumed or guaranteed as to
principal and interest by endorsement by, or so guaranteed which guaran-
ty has been assumed by, such railroad corporation, provided that (a) the
annual fixed charges and contingent interest charges of such railroad at
the time of investment shall not exceed thirty per cent of the average
annual income available for such charges for the five fiscal years next
preceding, and (b) the net income of such railroad after all taxes and
charges shall have averaged not less than fifteen million dollars annu-
ally in such period.
The amount of income available for fixed charges shall be the amount
obtained by deducting from gross income all items deductible in ascer-
taining net income other than federal income taxes, contingent income
interest and those constituting fixed charges. Fixed charges shall be:
rent for leased roads, miscellaneous rents, fixed interest on funded
debt, interest on unfunded debt and amortization of discount on funded
debt.
Accounting terms used in the preceding paragraph shall be deemed to
refer to those used in the accounting reports prescribed by the account-
ing regulations for common carriers subject to the provisions of the
interstate commerce act. If the interstate commerce commission shall
A. 9064 61
prescribe accounting regulations wherein shall be defined the term
income available for fixed charges and the term fixed charges, the defi-
nitions thereof as so prescribed shall be taken and used in lieu of the
definitions set forth in the preceding paragraph of this subdivision for
all purposes hereof, except that federal income taxes shall not be
deducted, nor shall federal income tax credits be included, in computing
income available for fixed charges. In determining income available for
fixed charges and fixed charges pursuant to this paragraph or the imme-
diately preceding paragraph interest, dividends and rentals paid by a
railroad corporation and included in both such amounts shall be elimi-
nated.
For all purposes of this subdivision [seven], the revenues, earnings,
income and fixed charges of, and dividends paid by, any railroad corpo-
ration prior to the acquisition of all or substantially all of its rail-
road lines by another railroad corporation, through merger, consol-
idation, conveyance or lease, shall, while such lines remain in the
possession of the acquiring corporation, be deemed to have been reven-
ues, earnings, income and fixed charges of, and dividends paid by, such
acquiring corporation.
Whenever a railroad corporation shall own (directly or through a
subsidiary all of the stock of which, except directors' qualifying
shares, is owned by such corporation) at least ninety per cent of the
capital stock of one or more other railroad corporations, the property
of which is operated by it under lease, the consolidated statements of
all such railroad corporations may be used in determining the amount of
income available for fixed charges and the amount of fixed charges.
Obligations of a railroad corporation the railroad lines of which have
been so leased prior to April fifth, nineteen hundred twenty-nine, for
the payment of which the lessee is not obligated, that are outstanding
and officially listed by the [banking] department OF BANKING AND FINAN-
CIAL SERVICES of the state of New York as authorized investments prior
to that date, shall be and remain authorized investments hereunder;
provided, that such railroad lines shall be in the possession of and be
operated by a railroad corporation such as is described in and meets the
requirements of the provisions of this subdivision preceding paragraph
(a).
Notwithstanding any other provisions of this subdivision, equipment
obligations described in paragraph (c) which shall have been issued,
assumed or guaranteed by any railroad corporation classified by the
interstate commerce commission as a class one railroad and which are not
in default, shall be authorized investments hereunder.
Notwithstanding any of the provisions of this subdivision, fixed
interest-bearing obligations of railroad corporations, excluding termi-
nal, depot and tunnel corporations, which are eligible for purchase by
savings banks on December thirty-first, nineteen hundred fifty-two under
the provisions of [subdivisions seven] THIS SUBDIVISION or SUBDIVISION
nineteen of this section, or which shall thereafter become eligible
pursuant to the provisions of this subdivision [seven], as amended, if
not in default, shall be and remain eligible hereunder, provided that
the income available for fixed charges, as herein defined, of the rail-
road corporation which has issued, assumed or guaranteed such obli-
gations, or which operates under lease the railroad lines of the corpo-
ration which has issued, assumed or guaranteed such obligations, shall
have averaged for the five fiscal years next preceding the time of
investment not less than twice the interest charges for the last such
fiscal year on all equipment obligations, and other obligations eligible
A. 9064 62
hereunder, of such railroad corporation which remain outstanding at time
of investment.
Fixed interest-bearing bonds of terminal, depot and tunnel companies
which are eligible for purchase by savings banks on December thirty-
first, nineteen hundred fifty-two under the provisions of [subdivisions
seven] THIS SUBDIVISION or SUBDIVISION nineteen of this section, or
which shall thereafter become eligible pursuant to the provisions of
this subdivision [seven], as amended, shall be and remain eligible here-
under, provided that the principal and interest thereof be guaranteed by
endorsement by, or guaranteed by endorsement which guaranty has been
assumed by, a railroad corporation which meets the requirements of the
preceding paragraph for continuing the eligibility of its own fixed
interest-bearing obligations.
Not more than twenty-five per centum of the assets of any savings bank
shall be loaned or invested in the bonds, notes, certificates, condi-
tional sale agreements, assignments of conditional sale agreements and
participations therein in this subdivision [seven] defined, and not more
than ten per centum of such assets shall be invested in such bonds,
notes, certificates, conditional sale agreements, assignments of condi-
tional sale agreements and participations therein for which any one
railroad corporation of this state shall be obligated, and not more than
five per centum of such assets shall be invested in the bonds, notes,
certificates, conditional sale agreements, assignments of conditional
sale agreements and participations therein for which any one railroad
corporation not of this state shall be obligated.
Street railroad corporations shall not be considered railroad corpo-
rations within the meaning of this subdivision.
S 119. Item 8 of subparagraph (c) of paragraph 4 of subdivision 8 of
section 235 of the banking law, as amended by chapter 19 of the laws of
1991, is amended to read as follows:
(8) Subject to such limitations and conditions as the banking AND
FINANCIAL SERVICES board may prescribe by general regulation, a savings
bank may make a loan pursuant to this subparagraph which the federal
housing administrator has insured or has made a commitment to insure and
may receive and hold such debentures as are issued by the federal hous-
ing administrator in payment of such insurance, or which is guaranteed
pursuant to the provisions of the act of congress entitled the "Service-
men's Readjustment Act of 1944." No law of this state prescribing the
nature, amount or form of security or requiring security upon which
loans or advances of credit may be made or prescribing or limiting the
period for which loans or advances of credit may be made or limiting the
amount of any class of loans, advances of credit or purchases which may
be made shall be deemed to apply to loans, advances of credit or
purchases made or to loans acquired by purchase pursuant to this item.
S 120. Subdivision 8-a of section 235 of the banking law, as amended
by chapter 360 of the laws of 1984, is amended to read as follows:
8-a. Promissory notes representing loans for the purpose of financing
the purchase of or refinancing an existing ownership interest in certif-
icates of stock or other evidence of an ownership interest in, and a
proprietary lease from, a corporation or partnership formed for the
purpose of cooperative ownership of real estate within or without this
state, as provided in this subdivision.
A savings bank may, subject to such regulations as the banking AND
FINANCIAL SERVICES board finds necessary and proper, invest to an amount
not exceeding the maximum per cent of the loan permitted to be made on
real estate improved by a single family residence occupied by the owner,
A. 9064 63
provided that for purposes of this section the amount of the purchase
price shall be deemed to equal the appraised value of such certificate
of stock or other evidence of an ownership interest, or, in the case of
a refinancing, the appraised value of certificates of stock or other
evidence of an ownership interest in and a proprietary lease from, a
corporation or partnership formed for the purpose of the cooperative
ownership of real estate within or without this state, for the purpose
of financing a purchase of or refinancing an existing ownership interest
in such a corporation or partnership, provided (a) such investment is
secured within ninety days from the making of the loan by an assignment
or transfer of the stock or other evidence of an ownership interest of
the borrower and a proprietary lease; and (b) repayment of principal and
interest shall be effected within the same number of years as a conven-
tional mortgage loan previously described in this subdivision. The maxi-
mum rate of interest which may be charged, taken or received upon any
loan or forbearance made pursuant to this subdivision may exceed the
rate of interest prescribed by the banking AND FINANCIAL SERVICES board
in accordance with section fourteen-a of this chapter by no more than
one and one-half per centum per annum.
S 121. Subdivision 8-b of section 235 of the banking law, as added by
chapter 883 of the laws of 1980, the opening paragraph as amended by
chapter 360 of the laws of 1984, is amended to read as follows:
8-b. Personal loan departments. Subject to such regulations as the
banking AND FINANCIAL SERVICES board may prescribe, a savings bank may
operate a personal loan department under the same terms and conditions
as are provided under the provisions of subdivisions four and five of
section one hundred eight of this chapter.
The banking AND FINANCIAL SERVICES board shall be empowered (a) to
prescribe the terms and conditions governing the conduct and operation
of personal loan departments including, the maximum amount, expressed as
a percentage of assets or otherwise, which a savings bank may invest
pursuant to the provisions of this subdivision or in the aggregate,
taking into account such other provisions of law authorizing investments
by savings banks, and (b) to prescribe such terms and conditions as may
be appropriate to effect or facilitate the transfer of accounts operated
pursuant to the provisions of any other section of this chapter to the
personal loan departments authorized to be operated hereunder.
In pursuance of the authority granted hereunder savings banks shall be
empowered to issue credit cards, extend credit in connection therewith,
and otherwise engage in or participate in credit card operations, and to
act as financing agency as defined in subdivision nine of section three
hundred one and subdivision eighteen of section four hundred one of the
personal property law.
S 122. Subdivision 8-c of section 235 of the banking law, as amended
by chapter 360 of the laws of 1984, is amended to read as follows:
8-c. Subject to such regulations as the banking AND FINANCIAL SERVICES
board may prescribe, promissory notes and other evidences of indebt-
edness representing commercial, corporate or business loans, provided
that the aggregate amount of all such loans outstanding at any time to
any borrower shall, if unsecured, not exceed fifteen per centum of the
net worth of such savings bank or, if secured, subject to the same limi-
tations as to amount in relation to net worth as are applicable to banks
and trust companies pursuant to article three of this chapter. For
purposes of this section the term "net worth" shall have the meaning
ascribed to it by subdivision four of section two hundred forty-four of
this chapter.
A. 9064 64
S 123. Subdivision 8-d of section 235 of the banking law, as added by
chapter 25 of the laws of 1995, is amended to read as follows:
8-d. Subject to such regulations as the banking AND FINANCIAL SERVICES
board may prescribe and subject to the limits of subdivision eight-c of
this section and any other applicable limits or requirements imposed by
law or regulation, promissory notes and other evidence of indebtedness
that represent linked loans, each authorized and approved pursuant to
article fifteen of the state finance law and each in an amount equal to
a corresponding linked deposit made pursuant to such article.
S 124. Subdivision 8-e of section 235 of the banking law, as added by
chapter 262 of the laws of 2007, is amended to read as follows:
8-e. Subject to such regulations as the banking AND FINANCIAL SERVICES
board may prescribe and subject to the limits of subdivision eight-c of
this section and any other applicable limits or requirements imposed by
law or regulation, promissory notes and other evidence of indebtedness
that represent linked loans, each authorized and approved pursuant to
article sixteen of the state finance law and each in an amount equal to
a corresponding linked deposit made pursuant to such article.
S 125. Paragraph (b) of subdivision 9 of section 235 of the banking
law, as amended by chapter 37 of the laws of 1969, is amended to read as
follows:
(b) Every parcel of real estate acquired by a savings bank shall be
conveyed to it directly by name, or, subject to such regulations and
restrictions as the banking AND FINANCIAL SERVICES board finds to be
necessary and proper, may be taken in the name of a duly authorized
nominee, and the conveyance shall be immediately recorded or registered
in the office of the proper recording officer of the county in which
such real estate is located.
S 126. Subdivision 12-a of section 235 of the banking law, as added by
chapter 674 of the laws of 1968, paragraph (b) as amended by chapter 134
of the laws of 2002, is amended to read as follows:
12-a. (a) Obligations of any corporation organized under the laws of
any state of the United States maturing within two hundred seventy days,
provided that such obligations receive the highest rating of an inde-
pendent rating service designated by the banking AND FINANCIAL SERVICES
board.
(b) Subject to such regulations as the banking AND FINANCIAL SERVICES
board may impose, certificates of deposit issued by or accounts of (1) a
bank, trust company or national bank having a principal, branch or trust
office in this state, (2) a banking corporation organized under the laws
of the United States or of any state thereof whose deposits are insured
by an agency of the United States, or (3) an agency or branch located
within the United States of a foreign banking corporation with total
worldwide bank assets in excess of one billion dollars.
S 127. Subdivisions 17 and 19 of section 235 of the banking law, as
added by chapter 352 of the laws of 1938, are amended to read as
follows:
17. Stock of a federal home loan bank in the amount necessary to qual-
ify for membership in such bank and in such additional amounts as are
approved by the banking AND FINANCIAL SERVICES board.
19. Securities of corporations which securities are made eligible for
investment by savings banks by the banking AND FINANCIAL SERVICES board.
S 128. Subdivision 20 of section 235 of the banking law, as amended by
chapter 315 of the laws of 2008, is amended to read as follows:
20. Subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper, (a) (1) any
A. 9064 65
bond and mortgage insured by the federal housing commissioner, or for
which a commitment to insure has been made by the federal housing
commissioner, or (2) any bond and mortgage guaranteed pursuant to the
provisions of the act of congress entitled the "Servicemen's Readjust-
ment Act of 1944", or (3) provided the mortgage is a first lien, any
bond and mortgage at least twenty per centum of which is guaranteed
pursuant to the provisions of such act, or (4) a participation in any
loan or a part interest in any bond and mortgage, secured by real prop-
erty, to the extent that the small business administration is committed
to pay the principal and interest thereof; (b) any whole or part inter-
est in any such bond and mortgage or in any whole or part interest in
any such bond and mortgage, which bond and mortgage is held for the
benefit of the holder or holders of a whole interest or part interests
therein by any entity or entities with which a savings bank is author-
ized to participate pursuant to this paragraph, but no such investment
shall be made in any part interest which is junior or subordinate to any
other part interest therein; (c) any bond secured by any such mortgage
or mortgages, which mortgage is, or which mortgages are, held for the
benefit of the holder or holders of the bond or bonds secured thereby,
by a savings bank or bank or trust company; and (d) any property
improvement note issued pursuant to the provisions of the national hous-
ing act, provided the savings bank investing in such note shall have
qualified for and received in connection therewith a contract of insur-
ance from the federal housing commissioner. A savings bank may receive
and hold such debentures as are issued in payment of any such insurance.
No law of this state prescribing or limiting the interest rate upon
loans or advances of credit or prescribing a penalty for violation ther-
eof or prescribing the nature, amount or form of security or requiring
security upon which loans or advances of credit may be made or prescrib-
ing or limiting the period for which loans or advances of credit may be
made or limiting the amount of any class of loans, advances of credit or
purchases which may be made shall be deemed to apply to loans, advances
of credit or purchases made or to loans acquired by purchase pursuant to
this subdivision.
The provisions of subdivision six of this section, except those of
paragraph (f) thereof, shall not apply to investments made pursuant to
this subdivision by any savings bank. Paragraphs (a), (b) and (c) of
section one of chapter eight hundred ninety-seven of the laws of nine-
teen hundred thirty-four as amended shall not apply to savings banks.
The term "bond", as used in this subdivision, includes a note. The
authority provided in this subdivision to invest in any bond and mort-
gage guaranteed pursuant to the provisions of the act of congress enti-
tled the "Servicemen's Readjustment Act of 1944", shall include authori-
ty to acquire title to real property in connection with investing in an
installment contract for the sale of real property, so guaranteed, where
the purchaser under such contract is in possession and control of the
property, and title is acquired by the savings bank solely as security
for the obligations of the purchaser.
S 129. The opening paragraph of paragraph (a) of subdivision 21 of
section 235 of the banking law, as amended by chapter 522 of the laws of
1949, is amended to read as follows:
Subject to such regulations and restrictions as the banking AND FINAN-
CIAL SERVICES board finds to be necessary and proper:
S 130. Subdivision 21-a of section 235 of the banking law, as added by
chapter 674 of the laws of 1968, is amended to read as follows:
A. 9064 66
21-a. Interest-bearing obligations payable in United States funds
which at the time of investment are rated in one of the three highest
rating grades by each rating service, designated by the banking AND
FINANCIAL SERVICES board, which has rated such obligations, provided
that the aggregate amount invested in the obligations of any single
issuer pursuant to this subdivision and pursuant to subparagraph [(2)]
TWO of paragraph (a) of subdivision twenty-one of this section may not
exceed one per centum of the assets of the savings bank, and provided
further that the aggregate amount invested in the interest-bearing obli-
gations of any single issuer pursuant to this subdivision and pursuant
to any provision of this section specifically authorizing such invest-
ment, may not exceed the percentage limitations contained in any such
provision.
S 131. The opening paragraph and paragraph (ee) of subdivision 26 of
section 235 of the banking law, the opening paragraph as amended by
chapter 705 of the laws of 1952 and paragraph (ee) as added by chapter
231 of the laws of 1964, are amended to read as follows:
Subject to such regulations and restrictions as the banking AND FINAN-
CIAL SERVICES board finds to be necessary and proper:
(ee) Stock of any "bank service corporation", as such term is defined
by an act of congress of the United States, entitled the "Bank Service
Corporation Act", approved October twenty-third, nineteen hundred
sixty-two, as such act may be amended from time to time, provided such
investment shall have been authorized by resolution of the banking AND
FINANCIAL SERVICES board upon a three-fifths vote of all its members.
S 132. Paragraph 1 of subdivision 26-a of section 235 of the banking
law, as added by chapter 622 of the laws of 1976, is amended to read as
follows:
(1) Subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper, the stock or
obligations of one or more corporations engaged, or to be engaged,
primarily in originating and servicing mortgages on real property,
provided, however, that if the savings bank shall own less than all of
the stock and obligations of any such corporation, the remainder of the
stock, excluding directors' qualifying shares, if any, and obligations
of such corporation shall be owned by one or more savings banks or
savings and loan associations located in this state.
S 133. Subdivisions 28, 29, 30 and the opening paragraph of subdivi-
sion 31 of section 235 of the banking law, subdivision 28 as amended by
chapter 680 of the laws of 1974, subdivision 29 as added by chapter 566
of the laws of 2004, subdivision 30 as amended by chapter 183 of the
laws of 1992 and the opening paragraph of subdivision 31 as amended by
chapter 171 of the laws of 1982 and such subdivision 31 as renumbered by
chapter 360 of the laws of 1984, are amended to read as follows:
28. Bonds, notes or evidences of indebtedness issued by a corporation
organized for the purpose of undertaking, constructing, owning, main-
taining, operating, selling or conveying a slum clearance and redevelop-
ment project, located within this state, pursuant to title one of an act
of congress of the United States approved July fifteenth, nineteen
hundred forty-nine, entitled the "Housing Act of 1949," or organized
pursuant to articles five and six of the private housing finance law,
and secured by a first mortgage upon all of the real property owned by
the corporation. A mortgage loan made under this subdivision may equal
but shall in no event exceed ninety per centum of the cost as estimated
prior to the completion of the project, or ninety per centum of the
total actual final cost, if that shall be greater than the estimated
A. 9064 67
cost, but in no event, shall such mortgage loan exceed ninety per centum
of the appraised value of the completed project determined pursuant to
subdivision six of this section. The estimated cost and the total actual
final cost shall be certified as to reasonableness and correctness by an
independent engineering organization and shall include the cost to the
corporation of the lands owned by the corporation, the cost of demoli-
tion, the cost of constructing the improvements, including planning,
designing, engineering and landscaping, the cost of relocation of
tenants, interest and other carrying charges during the period of acqui-
sition and of construction, all other costs necessarily incurred and
properly attributable to undertaking, constructing and completing the
project, and an allowance for working capital which shall not exceed an
amount equal to three per centum of the estimated cost or of the total
actual final cost of the project if that shall be greater than the esti-
mated cost. A mortgage loan made under this subdivision may be partic-
ipated in by one or more savings banks. An agreement setting forth the
manner in which the participating banks shall administer the mortgage
and acquire real estate, if any, shall be executed on behalf of each
bank by two persons appointed by the board of trustees of such bank.
Investments made by any savings bank in mortgage loans pursuant to this
subdivision and pursuant to paragraph (h) of subdivision six of this
section shall not, in the aggregate, exceed ten per centum of the assets
or an amount equal to the surplus fund and undivided profits and surplus
reserve of such savings bank, whichever is less, and shall be included
in the computation of permissive investment in mortgage loans pursuant
to paragraph (d) of subdivision six of this section. Investments in such
mortgage loans shall be subject to such regulations and restrictions as
the banking AND FINANCIAL SERVICES board finds to be necessary and prop-
er.
29. Subject to such restrictions as the banking AND FINANCIAL SERVICES
board may prescribe, stock or other equity interest in one or more small
business investment companies, as authorized pursuant to the provisions
of an act of congress entitled "Small Business Investment Act of 1958,"
as amended, or in any entity established to invest solely in such small
business investment companies, except that in no event shall the total
amount of such investments exceed: (a) for a stock form savings bank
five percent of its capital stock, surplus fund and undivided profits;
or (b) for a non-stock savings bank five percent of its net worth.
30. Alternative investment authority of savings banks to invest in
certain securities. Notwithstanding the limitations contained in subdi-
vision one, two, three, four, five, seven, seven-a, ten, eleven, thir-
teen, fourteen, fifteen, nineteen, twenty-one-a, twenty-four, twenty-
four-a, twenty-four-b, twenty-four-c, twenty-five, twenty-six,
twenty-seven, twenty-eight-a, or subparagraph two of paragraph (a) or
paragraph (b) of subdivision twenty-one of this section, and subject to
such limitations as the banking AND FINANCIAL SERVICES board shall
adopt, a savings bank shall be authorized to invest in such debt securi-
ties as are not in default as to either principal or interest when
acquired, and in such equity securities, in both cases as would be
acquired by prudent persons of discretion and intelligence in such
matters who are seeking a reasonable income and preservation of their
capital.
Without limiting its authority hereunder, the banking AND FINANCIAL
SERVICES board shall adopt regulations to require that any savings bank
which shall elect to make investments pursuant to this subdivision shall
have first established an investment committee of its board of trustees
A. 9064 68
to supervise and monitor the investment activities exercisable pursuant
to the authority granted by this subdivision, the majority of the
members of which shall be trustees who are not also officers or employ-
ees of such savings bank.
The banking AND FINANCIAL SERVICES board shall, in addition, adopt
regulations to require that no savings bank, in making investments
pursuant to this subdivision shall (either before or after the making of
such investments) control, as the banking AND FINANCIAL SERVICES board
shall define the term "control", the issuer of any such securities
acquired by such savings bank.
For purposes of any other law establishing or limiting the investments
of any person or entity to those investments which are permitted for
savings banks, the investments authorized by this subdivision shall not,
by virtue of this subdivision alone, be deemed investments in which a
savings bank may legally invest.
Subject to such regulations as the banking AND FINANCIAL SERVICES
board may promulgate, investments which do not qualify under any of the
preceding subdivisions of this section, provided that:
S 134. Section 235-c of the banking law, as added by chapter 361 of
the laws of 1984, is amended to read as follows:
S 235-c. Regulation of certain charges. The banking AND FINANCIAL
SERVICES board shall have the power to prescribe by regulation (i) the
maximum charge which may be imposed in this state by a savings bank in
connection with a check or other written order drawn upon it on insuffi-
cient funds, irrespective of whether the instrument is paid, accepted or
returned by the bank, and (ii) the maximum charge which may be imposed
in this state by a savings bank in connection with a check or other
written order received by it for deposit or collection and subsequently
dishonored and returned for any reason by the drawee.
S 135. Section 235-d of the banking law, as added by chapter 76 of the
laws of 1983, is amended to read as follows:
S 235-d. Service corporations owned by savings banks; authorized
activities of such corporations; investment therein. 1. A savings bank
may invest in the stock, capital notes and debentures of one or more
service corporations organized under the laws of this state for the sole
activities set forth in subdivision two of this section, to the extent
and upon such conditions as are or have been authorized by the banking
AND FINANCIAL SERVICES board, provided that all of the stock of such
service corporations is, or is to be, owned by one or more savings
banks; and provided further, that no savings bank may make any invest-
ment under this section if its aggregate outstanding investment thereby,
determined as prescribed by the banking AND FINANCIAL SERVICES board,
would thereupon exceed three per centum of its assets.
2. The activities of such service corporations, performed directly or
through one or more wholly owned subsidiaries, shall consist of render-
ing such services to savings banks and making such investments for
itself and for savings banks as are authorized services and investments
for such savings banks under the provisions of this chapter, as well as
such activities as may be prescribed by general regulation of the bank-
ing AND FINANCIAL SERVICES board.
S 136. Subdivisions 3, 4-a and 6 of section 238 of the banking law,
subdivision 3 as amended by chapter 308 of the laws of 1986, subdivision
4-a as amended by chapter 887 of the laws of 1985 and subdivision 6 as
amended by chapter 225 of the laws of 1976, are amended to read as
follows:
A. 9064 69
3. Except as provided in subdivisions four, five and six of this
section, a savings bank shall not pay, nor shall a depositor, his assig-
nee or anyone claiming through a depositor, be entitled to receive any
interest or deposit or portion of a deposit, unless the passbook of the
depositor be produced and the proper entry be made therein at the time
of the payment. The board of trustees, however, may provide in the
by-laws for making payments in cases of loss of passbook, or other
exceptional cases where the passbooks cannot be produced without serious
inconvenience to depositors. The board of trustees may further provide
in the by-laws for the payment of interest to a depositor without
requiring the production of the passbook, provided that such payment is
made (a) pursuant to the written request of the depositor, and (b) by
check payable to the order of the depositor. The right to make such
payments without production of the passbook shall cease when the super-
intendent shall so direct, upon his being satisfied that such right is
being improperly exercised. Payments, however, may be made upon the
judgment or order of a court. Where payment is made without production
of the passbook in accordance with its by-laws, a savings bank shall not
be liable to an assignee of that passbook for such payment if such
assignee has not, prior to such payment, served upon the savings bank
written notice of the assignment. When authorized by the depositor, or,
in the case of a joint account, by both depositors, a savings bank may
charge the account of such depositor or depositors for any sums due the
insurance department of such savings bank, or due the insurance depart-
ment of any other savings bank for which it is agent, without requiring
the production of the passbook for the recording of the charge therein.
For the purpose of this subdivision, the term "passbook" shall include
any evidence of ownership of a deposit held pursuant to subdivision
one-a of section two hundred thirty-four of this chapter, subject,
however, to such regulations and restrictions as the banking AND FINAN-
CIAL SERVICES board may prescribe pursuant to such subdivision.
4-a. If a deposit held pursuant to subdivision one-a of section two
hundred thirty-four of this chapter is repaid prior to maturity at the
request of a depositor, such repayment shall be subject to such penal-
ties as the banking AND FINANCIAL SERVICES board may find to be neces-
sary and proper, except that no such penalty shall be imposed where the
depositor has died or been declared legally incompetent.
6. Subject to any regulations and restrictions prescribed by the
superintendent of banks AND FINANCIAL SERVICES, a savings bank may
accept deposits, including demand deposits, without the issuance of a
passbook in connection therewith, and may issue such other evidences of
its obligation to repay such deposits as may be appropriate to safeguard
the interests of the depositors and of the savings bank.
S 137. 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 reproductions ther-
eof or records in photographic form shall constitute compliance with the
requirements of this section. Notwithstanding the foregoing, the banking
AND FINANCIAL SERVICES 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.
A. 9064 70
S 138. Section 240-a of the banking law, as amended by chapter 613 of
the laws of 1995, is amended to read as follows:
S 240-a. Electronic facilities. A savings bank may conduct a banking
business, at automated teller machines, point-of-sale terminals, and
similar facilities subject to regulations which may be promulgated by
the banking AND FINANCIAL SERVICES board. Such facilities shall not be
deemed to be branches and shall not be subject to any of the provisions
of this chapter applicable to branches; provided however that notwith-
standing the foregoing, for purposes of paragraph (b) of subdivision two
of section two hundred forty of this chapter, such facilities shall be
deemed to be branches, and such facilities shall be subject to the terms
and conditions of section two hundred forty, and for purposes of section
twenty-eight-b of this chapter, such facilities shall be deemed to be
branches.
S 139. Subdivisions 2 and 4 of section 242 of the banking law, subdi-
vision 2 as amended by chapter 664 of the laws of 1958 and subdivision 4
as amended by chapter 360 of the laws of 1984, are amended to read as
follows:
2. The stocks, bonds, promissory notes or other interest-bearing obli-
gations purchased by a savings bank shall be entered on its books at the
actual cost thereof, and shall not thereafter be carried upon the books
at a valuation exceeding their cost as adjusted by amortization for the
purpose of bringing them to par at maturity; and where securities
purchased at a premium are callable prior to maturity, the rate of amor-
tization thereof shall be increased when necessary to such extent as
shall reduce the amount at which such securities are carried upon the
books to the call price at the date or dates upon which a call may be
made. No adjustment for amortization shall be required to be made on the
books except when the books are closed for the purpose of computing net
earnings. The banking AND FINANCIAL SERVICES board may by general regu-
lation adopted by a three-fifths vote of all its members vary the
requirements of this subdivision to permit the amortization of premiums
at the same rate as that required by federal tax statutes or regu-
lations.
4. Real estate acquired by a savings bank, other than that acquired
for use as a place of business, shall be entered on the books of the
savings bank in conformity with the method of accounting for troubled
debt restructurings approved by the financial accounting standards board
or such other method of accounting as may be authorized or required by
rules and regulations of the banking AND FINANCIAL SERVICES board.
The provisions of this subdivision shall not, except as the super-
intendent may otherwise require, apply to any parcel of real estate as
to which the savings bank has exercised its option to transfer or convey
such real estate to the veterans administration or the federal housing
commissioner pursuant to insurance or guaranty.
S 140. Subdivision 3 of section 244 of the banking law, as amended by
chapter 360 of the laws of 1984, is amended to read as follows:
3. If at the close of any accounting period the net worth of any
savings bank, including the net earnings for that period, is less than
ten per centum of the amount due to depositors, including all interest
accrued and credited for that period, such per centum of its net earn-
ings for such period as may be determined by the banking AND FINANCIAL
SERVICES board shall be credited to its surplus fund.
S 141. Subdivision 3-b of section 245 of the banking law, as amended
by chapter 360 of the laws of 1984, is amended to read as follows:
A. 9064 71
3-b. Subject to such limitations and restrictions as may be prescribed
by regulation of the banking AND FINANCIAL SERVICES board, a savings
bank may credit interest on deposits from the date on which the deposit
is made to the date the deposit is withdrawn.
S 142. Paragraphs (a) and (b) of subdivision 5 of section 247 of the
banking law, as added by chapter 255 of the laws of 1973, are amended to
read as follows:
(a) No executive officer of a savings bank may be an executive offi-
cer, director or trustee of another savings bank, or of a bank or trust
company, savings and loan association, national bank located in this
state, federal savings and loan association located in this state, bank
holding company or foreign banking corporation maintaining a branch in
this state, unless permission therefor has been granted by the banking
AND FINANCIAL SERVICES board pursuant to the provisions of subparagraph
(b) of this subdivision, except that an executive officer of a savings
bank may be (1) an executive officer and (2) a director of a trust
company owned by savings banks, pursuant to subdivision eighteen of
section two hundred thirty-five of this chapter, if one of the stock-
holders of such trust company is the savings bank of which he is an
executive officer; provided, however, that, except as stated in the
foregoing exceptions, an executive officer of a savings bank who on the
effective date of this act is an executive officer, director or trustee
of another savings bank, bank or trust company, savings and loan associ-
ation, national bank located in this state, federal savings and loan
association located in this state, bank holding company or foreign bank-
ing corporation maintaining a branch in this state, may continue to hold
such other office without permission from the banking AND FINANCIAL
SERVICES board, until the expiration of the term of such office or the
close of business on the last day of December, nineteen hundred seven-
ty-four, whichever occurs sooner.
(b) The banking AND FINANCIAL SERVICES board shall have the power to
determine by regulation who shall be considered, under the provisions of
this subdivision, to be an executive officer, and by a general or
specific regulation, upon a three-fifths vote of all its members, to
grant permission to an executive officer of a savings bank to be an
executive officer, director or trustee or both an executive officer and
director or trustee of another savings bank or a bank or trust company,
savings and loan association, national bank located in this state,
federal savings and loan association located in this state, bank holding
company or foreign banking corporation maintaining a branch in this
state. Such permission may be granted only if in the judgment of the
banking AND FINANCIAL SERVICES board such service by the executive offi-
cer will be consistent with the policy of the state of New York as
declared in section ten of this chapter. The banking AND FINANCIAL
SERVICES board shall have the power to revoke such permission by a like
vote whenever it finds, after reasonable notice and an opportunity to be
heard, that the public interest requires such revocation.
S 143. The opening paragraph of section 250 of the banking law, as
added by chapter 883 of the laws of 1980, is amended to read as follows:
Subject to such regulations as the banking AND FINANCIAL SERVICES
board may prescribe, a savings bank may, in the discretion of a majority
of all the trustees:
S 144. Subdivision 6 of section 251 of the banking law, as added by
chapter 849 of the laws of 1964, is amended to read as follows:
6. Any officer elected or appointed by the BANKING AND FINANCIAL
SERVICES board may be removed by the BANKING AND FINANCIAL SERVICES
A. 9064 72
board, or his authority suspended by it, with or without cause. Such
removal or suspension without cause, however, shall be without prejudice
to his contract rights. The election or appointment of an officer shall
not be deemed of itself to create contract rights. This subdivision does
not affect the powers of the superintendent or the banking AND FINANCIAL
SERVICES board under section forty-one of this chapter.
S 145. Section 253 of the banking law, as added by chapter 352 of the
laws of 1938, is amended to read as follows:
S 253. Official communications from [banking] department OF BANKING
AND FINANCIAL SERVICES to be submitted to trustees and noted in minutes.
Every official communication, as defined in article two of this chapter,
shall be submitted by the officer receiving it to the board of trustees
at the next meeting of such board, and duly noted in the minutes.
S 146. Section 288 of the banking law, as added by chapter 259 of the
laws of 1934, is amended to read as follows:
S 288. Contributions as assets. All contributions and payments pursu-
ant to call paid into the fund by any member savings bank may be carried
by it as an asset to the extent authorized by the superintendent of
banks AND FINANCIAL SERVICES.
S 147. Subdivision 1 of section 290 of the banking law, as amended by
section 3 of part D-1 of chapter 109 of the laws of 2006, is amended to
read as follows:
1. Notwithstanding any other provision of law, and in accordance with
general regulations which the banking AND FINANCIAL SERVICES board shall
promulgate to facilitate such reorganizations, a mutual savings bank may
reorganize so as to cause its deposit-taking and one or more other
activities to be conducted by a stock savings bank subsidiary of a mutu-
al holding company formed for such purpose, upon the payment of a fee as
prescribed pursuant to section eighteen-a of this chapter.
S 148. The opening paragraph of subdivision 3 of section 291 of the
banking law, as added by chapter 762 of the laws of 1989, is amended to
read as follows:
If approved by the superintendent, the mutual savings bank shall
submit the plan of reorganization to its depositors for approval at a
meeting convened in accordance with general regulations promulgated by
the banking AND FINANCIAL SERVICES board for the sole purpose of approv-
ing or disapproving such plan. At such meeting:
S 149. Subparagraphs (i) and (iii) of paragraph (a) of subdivision 1
of section 292 of the banking law, as amended by chapter 382 of the laws
of 1993, are amended to read as follows:
(i) the organization by the mutual holding company of a stock savings
bank subsidiary and the transferal to such stock savings bank of the
substantial part of its assets and liabilities, including all of its
deposit liabilities, in accordance with general regulations promulgated
by the banking AND FINANCIAL SERVICES board;
(iii) the reorganization of the mutual savings bank under any other
method approved pursuant to general or specific regulations promulgated
by the banking AND FINANCIAL SERVICES board.
S 150. Subdivision 2 of section 293 of the banking law, as added by
chapter 762 of the laws of 1989, paragraph (a) as amended by chapter 382
of the laws of 1993, and paragraph (d) as amended by chapter 291 of the
laws of 2001, is amended to read as follows:
2. Notwithstanding any inconsistent provisions of section fourteen-e,
six hundred, six hundred one, six hundred one-a or six hundred one-b of
this chapter, subject to general regulations promulgated by the banking
AND FINANCIAL SERVICES board, a mutual holding company may:
A. 9064 73
(a) merge with, acquire or purchase the assets of a mutual holding
company established pursuant to this article or the savings and loan
holding company provisions of the Home Owners Loan Act (title twelve
United States Code Section 1467a);
(b) acquire or purchase the assets or stock of a stock savings bank, a
stock savings and loan association, a stock federal savings bank or a
stock federal savings and loan association;
(c) acquire a mutual savings bank, a mutual savings and loan associ-
ation, a federal mutual savings bank or a federal mutual savings and
loan association through the merger of such institution with a stock
subsidiary of such mutual holding company;
(d) engage in any other acquisition or combination specifically
permitted by general regulations promulgated by or specific resolution
of the banking AND FINANCIAL SERVICES board; provided, however, that any
such regulation promulgated by, or specific resolution, of the banking
AND FINANCIAL SERVICES board shall only authorize activities which are
authorized by the provisions of the Bank Holding Company Act of 1956, as
amended, (title twelve United States Code, Section 1841, et seq.) and
the provisions applicable, to mutual holding companies under the Home
Owners Loan Act, as amended, (title twelve United States Code, Section
1467a) and any regulations or rules of the Federal Reserve Board and the
federal Office of Thrift Supervision pursuant thereto, respectively, to
the extent such authorized activities are not otherwise limited or
prohibited by this chapter.
S 151. Subdivision 1 of section 294 of the banking law, as added by
chapter 762 of the laws of 1989, is amended to read as follows:
1. If approved by the superintendent, a mutual holding company may
convert to a stock holding company in accordance with general regu-
lations promulgated by the banking AND FINANCIAL SERVICES board.
S 152. Section 328 of the banking law, as amended by chapter 684 of
the laws of 1938, is amended to read as follows:
S 328. Communications from [banking] department OF BANKING AND FINAN-
CIAL SERVICES must be submitted to directors and noted in minutes. Every
official communication as defined in article two of this chapter
directed to a safe deposit company or to any officer thereof shall be
submitted, by the officer receiving it, to the board of directors at the
next meeting of such board, and duly noted in the minutes of the meet-
ings of such board.
S 153. Paragraph (b) of subdivision 1 of section 350 of the banking
law, as amended by chapter 22 of the laws of 1990, is amended to read as
follows:
(b) No licensee shall make, directly or indirectly, orally or in writ-
ing, by any method, practice or device, any representation that it is
licensed under this chapter, except a representation that such licensee
is licensed as a licensed lender by the New York state [banking] depart-
ment OF BANKING AND FINANCIAL SERVICES.
S 154. Subdivision 2 of section 351 of the banking law, as amended by
chapter 22 of the laws of 1990, is amended to read as follows:
2. On any loan with a variable rate of interest made pursuant to this
subdivision, the rate shall be determined at regular intervals as set
forth in the evidence of indebtedness and in accordance with such regu-
lations as the banking AND FINANCIAL SERVICES board shall prescribe but
said rate shall not vary more often than once in any three month period
and shall be based on a published index that is (a) readily available,
(b) independently verifiable, (c) beyond the control of the licensee,
and (d) approved by the superintendent.
A. 9064 74
The banking AND FINANCIAL SERVICES board shall adopt regulations,
including but not limited to: (i) providing for disclosure to the
borrower by the licensee of the circumstances under which the rate may
increase, any limitations on the increase, the effect of an increase and
an example of the payment terms that would result from an increase; (ii)
providing for disclosure to the borrower by the licensee of a history of
the fluctuations of the index over a reasonable period of time; and
(iii) providing for notice to the borrower from the licensee prior to
any rate increase or change in the terms of payment.
S 155. Paragraph (bb) of subdivision 4 of section 378 of the banking
law, as amended by chapter 349 of the laws of 1986, is amended to read
as follows:
(bb) Subject to such limitations and restrictions as may be prescribed
by regulation of the banking AND FINANCIAL SERVICES board, special
savings shares, upon which dues shall be paid in such sums, at such
times and for such purposes as the holder thereof may elect, and which
shall provide that dividends shall be credited from the date of actual
receipt of such dues to the date they are withdrawn or retired. Divi-
dends on special savings shares shall be credited and shall be made
available no later than the end of a regular dividend period, or at the
time such special savings shares are withdrawn or retired if in the
opinion of a majority of the board of directors it appears the savings
and loan association will have sufficient profit available at the end of
such regular dividend period to pay dividends and if the board of direc-
tors chooses payment of dividends at withdrawal as an option to periodic
payment of dividends. Any savings and loan association which does not
make dividends available pursuant to the provisions of this paragraph
shall promptly notify the superintendent of banks AND FINANCIAL SERVICES
of such decision. Withdrawals or retirements of special savings shares
during the last three business days of any regular dividend period or,
in the event that any one of such last three business days is a Satur-
day, withdrawals of such shares upon one of the last four business days
of any such period may receive dividends apportioned for the full peri-
od.
S 156. Subdivisions 1 and 7 of section 378-a of the banking law,
subdivision 1 as amended by chapter 360 of the laws of 1984 and subdivi-
sion 7 as added by chapter 65 of the laws of 1971, are amended to read
as follows:
1. Subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper, a savings and
loan association may contract to receive time deposits including depos-
its upon which the savings and loan association contracts to pay inter-
est at a fixed rate.
7. Subject to any regulations and restrictions prescribed by the
superintendent of banks AND FINANCIAL SERVICES, a savings and loan asso-
ciation may accept time deposit without the issuance of a passbook in
connection therewith, and may issue such other evidences of its obli-
gation to repay such time deposits as may be appropriate to safeguard
the interests of the depositors and of the savings and loan association.
S 157. 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 photographic
A. 9064 75
reproductions thereof or records in photographic form shall constitute
compliance with the requirements of this section. Notwithstanding the
foregoing, the banking AND FINANCIAL SERVICES 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 158. Section 379-b of the banking law, as added by chapter 624 of
the laws of 1976 and subdivision 2 as amended by chapter 546 of the laws
of 1983, is amended to read as follows:
S 379-b. Service corporation owned by associations; authorized activ-
ities of such corporation; investment therein. 1. A savings and loan
association may invest in the stock, capital notes and debentures of a
service corporation organized under the laws of this state for the sole
activities set forth in subdivision two of this section, to the extent
and upon such conditions as are or have been authorized by the banking
AND FINANCIAL SERVICES board, provided that all of the stock of such
service corporation is, or is to be, owned by one or more savings and
loan associations; and provided further, that no savings and loan asso-
ciation may make any investment under this section if its aggregate
outstanding investment thereby, determined as prescribed by the banking
AND FINANCIAL SERVICES board, would thereupon exceed three per centum of
its assets.
2. The activities of such service corporation, performed directly or
through one or more wholly owned subsidiaries, shall consist of render-
ing such services to savings and loan associations and making such
investments for itself and for savings and loan associations as are
authorized services and investments for such associations under the
provisions of this chapter as well as such activities as may be
prescribed by general regulation of the banking AND FINANCIAL SERVICES
board.
S 159. Subdivision 1, subparagraph 8 of paragraph (d) of subdivision 2
and subdivisions 2-a and 4-a of section 380 of the banking law, subdivi-
sion 1 as added by chapter 1 of the laws of 1983, subparagraph 8 of
paragraph (d) of subdivision 2 as added by chapter 320 of the laws of
1973, subdivision 2-a as amended by chapter 360 of the laws of 1984 and
subdivision 4-a as amended by chapter 82 of the laws of 2005, are
amended to read as follows:
1. A savings and loan association may make a loan upon the security of
a mortgage of the type authorized to be made by a savings bank by subdi-
visions five-a and six of section two hundred thirty-five of this chap-
ter, subject to such regulations as the banking AND FINANCIAL SERVICES
board may prescribe.
(8) Subject to such limitations and conditions as the banking AND
FINANCIAL SERVICES board may prescribe by general regulation, a savings
and loan association may make a loan pursuant to this paragraph which
the federal housing administrator has insured or has made a commitment
to insure and may receive and hold such debentures as are issued by the
federal housing administrator in payment of such insurance, or which is
guaranteed pursuant to the provisions of the act of congress entitled
the "Servicemen's Readjustment Act of l944." No law of this state
prescribing or limiting the interest rate upon loans or advances of
credit or prescribing a penalty for violation thereof or prescribing the
nature, amount or form of security or requiring security upon which
loans or advances of credit may be made or prescribing or limiting the
period for which loans or advances of credit may be made or limiting the
amount of any class of loans, advances of credit or purchases which may
A. 9064 76
be made shall be deemed to apply to loans, advances of credit or
purchases made or to loans acquired by purchase pursuant to this subpar-
agraph.
2-a. A savings and loan association may lend its funds to borrowers
therefrom upon their promissory notes representing loans for the purpose
of financing the purchase of or refinancing an existing ownership inter-
est in certificates of stock or other evidence of an ownership interest
in, and a proprietary lease from, a corporation or partnership formed
for the purpose of the cooperative ownership of real estate as provided
in this subdivision.
A savings and loan association may, subject to such regulations as the
banking AND FINANCIAL SERVICES board finds necessary and proper, invest
to an amount not exceeding the maximum per cent of the loans permitted
to be made on real estate improved by a single family residence occupied
by the owner, provided that for purposes of this section the amount of
the purchase price shall be deemed to equal the appraised value of such
certificate of stock or other evidence of an ownership interest, or, in
the case of a refinancing, the appraised value of certificates of stock
or other evidence of the ownership of an interest in, and a proprietary
lease from, a corporation or partnership formed for the purpose of the
cooperative ownership of real estate, for the purpose of financing a
purchase of or refinancing an existing ownership interest in such a
corporation or partnership; provided (a) such investment is secured
within ninety days from the making of the loan by an assignment or
transfer of the stock or other evidence of an ownership interest of the
borrower and a proprietary lease; and (b) repayments of principal and
interest shall be effected within the same number of years as a conven-
tional mortgage loan previously described in this subdivision. The maxi-
mum rate of interest which may be charged, taken or received upon any
loan or forbearance made pursuant to this subdivision may exceed the
rate of interest prescribed by the banking AND FINANCIAL SERVICES board
in accordance with section fourteen-a of this chapter by no more than
one and one-half [per cent] PERCENT per annum.
4-a. A savings and loan association may, in addition to the authority
granted under any other subdivision of this section or subdivision six
of section three hundred seventy-nine of this article, make a loan to a
natural person upon the security of a mortgage which is not a first lien
at the rate or rates agreed to by the savings and loan association and
the borrower, subject to such regulations as the banking AND FINANCIAL
SERVICES board may prescribe. Such regulations by the banking AND FINAN-
CIAL SERVICES board may include such restrictions as the banking AND
FINANCIAL SERVICES board finds necessary or proper, including without
limitation, a restriction as to the percentage of total assets which may
be invested in such loans or a restriction on the loan to appraisal
value of property securing such loan.
For purposes of this subdivision, the term mortgage shall include a
lien on an existing ownership interest in certificates of stock or other
evidence of an ownership interest in, and a proprietary lease from, a
corporation or partnership formed for the purpose of the cooperative
ownership of real estate.
S 160. Section 380-c of the banking law, as amended by chapter 205 of
the laws of 1979, is amended to read as follows:
S 380-c. Power to participate in certain loans and mortgage invest-
ments. Subject to such regulations and restrictions as may be prescribed
by the banking AND FINANCIAL SERVICES board, a savings and loan associ-
ation may participate in making or acquiring (1) loans of a type that it
A. 9064 77
is authorized to have by paragraph (b) of subdivision two of section
three hundred eighty of this chapter, and (2) mortgage investments of
any type that it is authorized to have, provided that the participation
acquired shall not be subordinate to any other part interest.
S 161. Subdivisions 1 and 4 of section 380-h of the banking law, as
added by chapter 883 of the laws of 1980, are amended to read as
follows:
1. The banking AND FINANCIAL SERVICES board is authorized and
empowered to grant permission to a savings and loan association to exer-
cise any or all of the powers specified in sections one hundred, one
hundred-a, one hundred-b and one hundred-c of this chapter. In passing
upon applications for permission to exercise any such powers, the bank-
ing AND FINANCIAL SERVICES board may take into consideration the amount
of surplus of the applying association, whether or not such surplus is
sufficient under the circumstances of the case, the needs of the commu-
nity to be served and any other facts and circumstances that seem to it
proper, and may grant or refuse it permission accordingly.
4. The banking AND FINANCIAL SERVICES board is authorized to promul-
gate such regulations as it may deem necessary or proper to implement
the provisions of this section and the proper exercise of the powers
granted by this section.
S 162. Section 380-i of the banking law, as amended by chapter 360 of
the laws of 1984, is amended to read as follows:
S 380-i. Personal loan departments. Subject to such regulations as the
banking AND FINANCIAL SERVICES board may prescribe, a savings and loan
association may operate a personal loan department under the same terms
and conditions as are provided under subdivisions four and five of
section one hundred eight of this chapter.
The banking AND FINANCIAL SERVICES board shall be empowered (a) to
prescribe the terms and conditions governing the conduct and operation
of personal loan departments including the maximum amount, expressed as
a percentage of assets or otherwise, which a savings and loan associ-
ation may invest pursuant to the provisions of this subdivision or in
the aggregate, taking into account such other provisions of law author-
izing investments by savings and loan associations and (b) to prescribe
such terms and conditions as may be appropriate to effect or facilitate
the [tranfer] TRANSFER of accounts operated pursuant to the provisions
of any other section of this chapter to the personal loan departments
authorized to be operated hereunder.
In pursuance of the authority granted hereunder savings and loan asso-
ciations shall be empowered to issue credit cards, extend credit in
connection therewith, and otherwise engage in or participate in credit
card operations, and to act as financing agencies as defined in subdivi-
sion nine of section three hundred one and subdivision eighteen of
section four hundred one of the personal property law.
S 163. Subdivision 2 of section 381 of the banking law, as amended by
chapter 37 of the laws of 1969, is amended to read as follows:
2. All real estate purchased by any such association or taken by it in
settlement of debts due it, shall be conveyed to it directly by name or,
subject to such regulations and restrictions as the banking AND FINAN-
CIAL SERVICES board finds to be necessary and proper, may be taken in
the name of a duly authorized nominee, and the conveyance immediately
recorded or registered in the office of the proper recording officer of
the county in which such real estate is located.
S 164. Section 382 of the banking law, as amended by chapter 360 of
the laws of 1984, is amended to read as follows:
A. 9064 78
S 382. Power to borrow. Subject to such regulations as the banking AND
FINANCIAL SERVICES board may promulgate, a savings and loan association
may borrow money and pledge its assets as security for the repayment
thereof if it has been authorized so to do by the vote of a majority of
its board of directors.
S 165. Subdivision 2 of section 382-b of the banking law, as amended
by chapter 638 of the laws of 1981, is amended to read as follows:
2. Subject to such regulations and restrictions as the banking AND
FINANCIAL SERVICES board finds to be necessary and proper and notwith-
standing any other provisions of law, a savings and loan association may
issue notes, bonds, debentures, or other obligations or other securities
subordinated to deposits in such savings and loan association; provided
that, unless the superintendent has given prior approval otherwise, the
aggregate principal amount thereof at the time of issuance shall not
exceed twenty-five [per cent] PERCENT of the net worth of such savings
and loan association, exclusive of all such notes, bonds, debentures, or
other obligations or other securities. The proceeds or other consider-
ation derived by a savings and loan association from the issuance pursu-
ant to this subdivision of any such notes, bonds, debentures, or other
obligations or other securities shall be deemed for purposes of this
chapter to constitute a part of the net worth of such savings and loan
association. For the purposes of this article, the term "net worth"
shall mean the excess of assets at book value, less allocated reserves,
over known liabilities, including deposit liabilities.
S 166. Subdivisions 5, 13 and 15 of section 383 of the banking law,
subdivision 5 as amended by chapter 1150 of the laws of 1969, subdivi-
sion 13 as amended by chapter 63 of the laws of 1992 and subdivision 15
as added by chapter 1 of the laws of 1983, are amended to read as
follows:
5. To service mortgages for others, and to render investment advice
incidental to the purchase of and investment in mortgages by others,
provided, however, that the superintendent of banks AND FINANCIAL
SERVICES shall have power to prescribe, by specific or general regu-
lation, the extent to which and the conditions upon which such mortgages
may be serviced and such investment advice may be rendered.
13. To receive and repay demand deposits subject to those provisions
applicable to such deposits, in the case of savings banks under section
two hundred thirty-seven of this chapter, including, subject to regu-
lation by the banking AND FINANCIAL SERVICES board, the power to charge
for maintaining a demand deposit account or for honoring checks drawn on
or accepting deposits made to such an account.
The banking AND FINANCIAL SERVICES board shall have the power to
prescribe by regulation (a) the maximum charge which may be imposed in
this state by a savings and loan association in connection with a check
or other written order drawn upon it on insufficient funds, irrespective
of whether the instrument is paid, accepted or returned by the bank, and
(b) the maximum charge which may be imposed in this state by a savings
and loan association in connection with a check or other written order
received by it for deposit or collection and subsequently dishonored and
returned for any reason by the drawee.
15. Subject to such regulations as the banking AND FINANCIAL SERVICES
board finds to be necessary and proper, and notwithstanding any other
provision of law, to accept federal tax and loan accounts, the balance
of which are payable on demand without previous notice of intended with-
drawal and to pledge collateral to secure such accounts.
A. 9064 79
S 167. Subdivisions 2 and 4 of section 384 of the banking law, subdi-
vision 2 as amended by chapter 247 of the laws of 1959 and subdivision 4
as amended by chapter 360 of the laws of 1984, are amended to read as
follows:
2. The stocks, bonds or other interest-bearing obligations purchased
by a savings and loan association shall be entered on its books at the
actual cost thereof, and shall not thereafter be carried upon its books
at a valuation exceeding their cost as adjusted by amortization for the
purpose of bringing them to par at maturity; and where securities
purchased at a premium are callable prior to maturity, the rate of amor-
tization thereof shall be increased when necessary to such extent as
shall reduce the amount at which such securities are carried upon the
books to the call price at the date or dates upon which a call may be
made. No adjustment for amortization shall be required to be made on the
books, except when the books are closed for the purpose of computing
profits. The banking AND FINANCIAL SERVICES board may by general regu-
lation adopted by a three-fifths vote of all its members vary the
requirements of this subdivision to permit the amortization of premiums
at the same rate as that required by federal tax statutes or regu-
lations.
4. Real estate acquired by an association other than that acquired for
use as a place of business, shall be entered on the books of the associ-
ation in conformity with the method of accounting for troubled debt
restructurings approved by the financial accounting standards board or
such other method of accounting as may be authorized or required by
rules and regulations of the banking AND FINANCIAL SERVICES board.
The provisions of this subdivision shall not, except as the super-
intendent may otherwise require, apply to any parcel of real estate as
to which the savings and loan association has exercised its option to
transfer or convey such real estate to the veterans administration or
the federal housing commissioner pursuant to insurance or guaranty.
S 168. Subdivision 1 of section 387 of the banking law, as amended by
chapter 349 of the laws of 1986, is amended to read as follows:
1. When the net profits of any savings and loan association have been
determined at the close of an accounting period, if its net worth does
not equal ten per centum of its capital, such net profits shall be cred-
ited to its surplus account in such amount as may be determined by the
banking AND FINANCIAL SERVICES board until such net worth equals ten per
centum of its capital. For purposes of this article, the term "net
worth" shall mean the excess of assets at book value, less allocated
reserves, over known liabilities. The balance of such net profits,
together with any amounts remaining from similar balances for previous
accounting periods, shall constitute the undivided profits of such
savings and loan association at the close of such period. The directors,
in addition to the transfers to the surplus account required by this
section, may transfer additional amounts to surplus account from undi-
vided profits or continue to carry as undivided profits such sum or sums
as they may deem wise. Amounts heretofore credited to a reserve for bad
debts pursuant to chapter three hundred nine of the laws of nineteen
hundred fifty-two shall be transferred to surplus account.
S 169. Section 396-a of the banking law, as amended by chapter 613 of
the laws of 1995, is amended to read as follows:
S 396-a. Electronic facilities. A savings and loan association may
conduct a banking business, at automated teller machines, point-of-sale
terminals, and similar facilities subject to regulations which may be
promulgated by the banking AND FINANCIAL SERVICES board. Such facilities
A. 9064 80
shall not be deemed to be branches and shall not be subject to any of
the provisions of this chapter applicable to branches; provided however
that notwithstanding the foregoing, for purposes of paragraph (b) of
subdivision two of section three hundred ninety-six of this chapter,
such facilities shall be deemed to be branches, and such facilities
shall be subject to the terms and conditions of section three hundred
ninety-six, and for purposes of section twenty-eight-b of this chapter,
such facilities shall be deemed to be branches.
S 170. Subdivision 7 of section 397 of the banking law, as added by
chapter 849 of the laws of 1964, is amended to read as follows:
7. Any officer elected or appointed by the BANKING AND FINANCIAL
SERVICES board may be removed by the BANKING AND FINANCIAL SERVICES
board, or his authority suspended by it, with or without cause. Such
removal or suspension without cause, however, shall be without prejudice
to his contract rights. The election or appointment of an officer shall
not be deemed of itself to create contract rights. This subdivision does
not affect the powers of the superintendent or the banking AND FINANCIAL
SERVICES board under section forty-one of this chapter.
S 171. Paragraphs (a) and (b) of subdivision 5 of section 399 of the
banking law, as added by chapter 255 of the laws of 1973, are amended to
read as follows:
(a) No executive officer of a savings and loan association may be an
executive officer, director or trustee of another savings and loan asso-
ciation, bank or trust company, savings bank, national bank located in
this state, federal savings and loan association located in this state,
bank holding company or foreign banking corporation maintaining a branch
in this state unless permission therefor has been granted by the banking
AND FINANCIAL SERVICES board pursuant to paragraph (b) of this subdivi-
sion, except that an executive officer of a savings and loan association
may be (1) an executive officer and (2) a director of a trust company
owned by savings and loan [association] ASSOCIATIONS or federal savings
and loan associations located in this state, pursuant to section three
hundred seventy-nine-a of this chapter, if one of the stockholders of
such trust company is a savings and loan association of which he is an
executive officer; provided, however, that, except as stated in the
foregoing exceptions, an executive officer of a savings and loan associ-
ation, who on the effective date of this act is an executive officer,
director or trustee of another savings and loan association, bank or
trust company, savings bank, national bank located in this state, feder-
al savings and loan association located in this state, bank holding
company or foreign banking corporation maintaining a branch in this
state, may continue to hold such other office, without permission from
the banking AND FINANCIAL SERVICES board, until the expiration of the
term of such office or the close of business on the last day of Decem-
ber, nineteen hundred seventy-four, whichever occurs sooner.
(b) The banking AND FINANCIAL SERVICES board shall have the power to
determine by regulation who shall be considered, under the provisions of
this subdivision, to be an executive officer, and by a general or
specific regulation, upon a three-fifths vote of all its members, to
grant permission to an executive officer of a savings and loan associ-
ation to be an executive officer, director or trustee or both an execu-
tive officer and a director or a trustee of another savings and loan
association, bank or trust company, savings bank, national bank located
in this state, federal savings and loan association located in this
state, bank holding company or foreign banking corporation maintaining a
branch in this state. Such permission may be granted only if in the
A. 9064 81
judgment of the banking AND FINANCIAL SERVICES board such service by the
executive officer will be consistent with the policy of the state of New
York as declared in section ten of this chapter. The banking AND FINAN-
CIAL SERVICES board shall have the power to revoke such permission by a
like vote whenever it finds, after reasonable notice and an opportunity
to be heard, that the public interest requires such revocation.
S 172. Subdivisions 1 and 2 of section 399-a of the banking law, as
added by chapter 255 of the laws of 1973, are amended to read as
follows:
1. No executive officer of a federal savings and loan association
located in this state may be an executive officer, director or trustee
of a savings and loan association, bank or trust company, savings bank,
bank holding company or foreign banking corporation maintaining a branch
in this state, unless permission therefor has been granted by the bank-
ing AND FINANCIAL SERVICES board pursuant to subdivision two of this
section, except that an executive officer of a federal savings and loan
association located in this state may be (1) an executive officer and
(2) a director of a trust company owned by savings and loan associations
or federal savings and loan associations located in this state, pursuant
to section three hundred seventy-nine-a of this chapter, if one of the
stockholders of such trust company is the federal savings and loan asso-
ciation of which he is an executive officer; provided, however, that,
except as stated in the foregoing exceptions, an executive officer of a
federal savings and loan association located in this state, who on the
effective date of this act is an executive officer, director or trustee
of a savings and loan association, bank or trust company, savings bank,
bank holding company or foreign banking corporation maintaining a branch
in this state, may continue to hold such other office without permission
from the banking AND FINANCIAL SERVICES board, until the expiration of
the term of such office or the close of business on the last day of
December, nineteen hundred seventy-four, whichever occurs sooner.
2. The banking AND FINANCIAL SERVICES board shall have the power to
determine by regulation who shall be considered, under the provisions of
this subdivision, to be an executive officer, and by a general or
specific regulation, upon a three-fifths vote of all its members, to
grant permission to an executive officer of a federal savings and loan
association located in this state, to be at the same time an executive
officer, director or trustee, or both an executive officer and a direc-
tor or trustee of a savings and loan association, bank or trust company,
savings bank, bank holding company, and foreign banking corporation
maintaining a branch in this state. Such permission may be granted only
if in the judgment of the banking AND FINANCIAL SERVICES board such
service by the executive officer will be consistent with the policy of
the state of New York as declared in section ten of this chapter. The
banking AND FINANCIAL SERVICES board shall have the power to revoke such
permission by a like vote whenever it finds, after reasonable notice and
an opportunity to be heard, that the public interest requires such revo-
cation.
S 173. The opening paragraph of section 400 of the banking law, as
added by chapter 883 of the laws of 1980, is amended to read as follows:
Subject to such regulations as the banking AND FINANCIAL SERVICES
board may prescribe, a savings and loan association may, in the
discretion of a majority of all the directors:
S 174. Section 406 of the banking law, as amended by chapter 1 of the
laws of 1984, is amended to read as follows:
A. 9064 82
S 406. Charters conformed to this article; obligations and rights
unimpaired; saving clause; applicability to stock-form savings and loan
associations. 1. Except as provided by regulations promulgated by the
banking AND FINANCIAL SERVICES board pursuant to section fourteen-e of
this chapter, the powers, rights, duties, privileges and obligations of
every savings and loan association shall be governed, controlled,
construed, extended, limited and determined by the provisions of this
chapter, and the articles of association, certificate of incorporation,
by-laws or rules of every such association heretofore made or existing,
are hereby modified, altered and amended to conform to the provisions of
this chapter, and are declared void where such articles of association,
certificate of incorporation, by-laws or rules are inconsistent with the
provisions of this chapter; except that the obligations of any existing
association, and the obligations to any such association, existing on
June thirtieth, nineteen hundred thirty-nine, shall not be in any wise
impaired by the provisions of this [act] ARTICLE. No savings and loan
association shall by reason of the provisions of this act be required to
dispose of any loan or investment held by it on June thirtieth, nineteen
hundred thirty-nine. For the purposes of this section, articles of asso-
ciation and by-laws are not to be deemed obligations of the association
and may be changed as prescribed in section four hundred two, anything
in the articles of association or by-laws to the contrary notwithstand-
ing.
2. The provisions of this article shall apply to stock-form savings
and loan associations except that the banking AND FINANCIAL SERVICES
board, consistent with the declaration of policy described in section
fourteen-e of this chapter, shall be empowered to deem inapplicable to
stock-form savings and loan associations, sections three hundred seven-
ty-five, three hundred seventy-six, three hundred seventy-seven, three
hundred seventy-eight, three hundred eighty-five, three hundred eighty-
six, three hundred eighty-seven, three hundred eighty-eight, three
hundred eighty-nine, three hundred ninety, three hundred ninety-two,
three hundred ninety-seven, three hundred ninety-eight, three hundred
ninety-eight-a, three hundred ninety-eight-b, three hundred ninety-
eight-c, subdivisions one, two and three of section three hundred nine-
ty-nine, four hundred, four hundred two, four hundred five and four
hundred six of this chapter.
S 175. Section 412 of the banking law, as amended by section 9 of part
D-1 of chapter 109 of the laws of 2006, is amended to read as follows:
S 412. Conversion of federal savings institutions to state charter.
The banking AND FINANCIAL SERVICES board is authorized, by a three-
fifths vote of all its members, to promulgate such regulations as are
necessary to permit the conversion of any federal savings association or
federal savings and loan association to state charter where such conver-
sion is not otherwise governed by the provisions of this chapter.
Subject to the foregoing, such regulations may provide for the conver-
sion of a federal savings association or federal savings and loan asso-
ciation, whether in mutual or stock form, into a state-chartered savings
bank or state-chartered savings and loan association. The federal
savings association shall submit a written plan of conversion to the
superintendent, together with an investigation fee as prescribed pursu-
ant to section eighteen-a of this chapter.
S 176. 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
A. 9064 83
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 AND FINANCIAL
SERVICES 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 177. Subdivisions 5 and 10 of section 420-c of the banking law, as
added by chapter 848 of the laws of 1966, are amended to read as
follows:
5. Subject to the approval of the superintendent of banks AND FINAN-
CIAL SERVICES, to establish rules and regulations governing the exercise
of its powers and the fulfillment of its purposes under this article;
10. In the performance of the fund's duties, to utilize the services
of employees of the [banking] department OF BANKING AND FINANCIAL
SERVICES, reimbursing [the banking] SUCH department for such services
and expenses therein;
S 178. Subdivision 1 of section 447 of the banking law, as amended by
section 10 of part D-1 of chapter 109 of the laws of 2006, is amended to
read as follows:
1. Notwithstanding any other provision of law and in accordance with
general regulations which the banking AND FINANCIAL SERVICES board shall
promulgate to facilitate such reorganizations, a mutual savings and loan
association may reorganize so as to cause its deposit-taking and one or
more other activities to be conducted by a stock savings and loan asso-
ciation subsidiary of a mutual holding company formed for such purpose
upon the payment of a fee as prescribed pursuant to section eighteen-a
of this chapter.
S 179. The opening paragraph of subdivision 3 of section 447-a of the
banking law, as added by chapter 382 of the laws of 1993, is amended to
read as follows:
If approved by the superintendent the mutual savings and loan associ-
ation shall submit the plan of reorganization to its shareholders for
approval at a meeting convened in accordance with general regulations
promulgated by the banking AND FINANCIAL SERVICES board for the sole
purpose of approving or disapproving such plan. At such meeting:
S 180. Paragraph (a) of subdivision 1 of section 447-b of the banking
law, as added by chapter 382 of the laws of 1993, is amended to read as
follows:
(a) (i) the organization by the mutual holding company of a stock
savings and loan association subsidiary and the transferal to such stock
savings and loan association of the substantial part of its assets and
liabilities, including all of its deposit liabilities, in accordance
with general regulations promulgated by the banking AND FINANCIAL
SERVICES board;
(ii) the organization by the mutual savings and loan association of a
mutual holding company and the organization by such mutual holding
company of a stock savings and loan association subsidiary which merges
with the mutual savings and loan association; or
(iii) the reorganization of the mutual savings and loan association
under any other method approved pursuant to general or specific regu-
lations promulgated by the banking AND FINANCIAL SERVICES board.
A. 9064 84
S 181. Subdivision 2 of section 447-c of the banking law, as added by
chapter 382 of the laws of 1993, is amended to read as follows:
2. Notwithstanding any inconsistent provision of section fourteen-e,
six hundred, six hundred one, six hundred one-a or six hundred one-b of
this chapter, subject to general regulations promulgated by the banking
AND FINANCIAL SERVICES board, a mutual holding company may:
(a) merge with, acquire or purchase the assets of a mutual holding
company established pursuant to this article or the savings and loan
holding company provisions of the Home Owners Loan Act (title twelve
United States Code Section 1467a);
(b) acquire or purchase the assets or stock of a stock savings bank, a
stock savings and loan association, a stock federal savings bank or a
stock federal savings and loan association;
(c) acquire a mutual savings bank, a mutual savings and loan associ-
ation, a federal mutual savings bank or a federal mutual savings and
loan association through the merger of such institution with a stock
subsidiary of such mutual holding company;
(d) engage in any other acquisition or combination specifically
permitted by general or special regulations promulgated by the banking
AND FINANCIAL SERVICES board; provided, however, that the banking AND
FINANCIAL SERVICES board shall have no power to permit any insurance
activities prohibited by subdivision three of this section or to expand
by interpretation any provision of federal law set forth in the savings
and loan holding company provisions of the Home Owners Loan Act (title
twelve United States Code Section 1467a).
S 181-a. Subdivision 1 of section 447-d of the banking law, as added
by chapter 382 of the laws of 1993, is amended to read as follows:
1. If approved by the superintendent, a mutual holding company may
convert to a stock holding company in accordance with general regu-
lations promulgated by the banking AND FINANCIAL SERVICES board.
S 182. Subdivision 5 of section 450-a of the banking law, as added by
chapter 214 of the laws of 1999, is amended to read as follows:
5. As used in this section, the term "low income credit union" shall
mean a credit union in which a majority of the members: (a) make less
than eighty percent of the average for all wage earners as established
by the bureau of labor statistics of the United States department of
labor or have annual household incomes that fall at or below eighty
percent of the median household income for the nation as established by
the United States census bureau; or (b) are residents of a public hous-
ing project who qualify for such residency because of low income; or (c)
qualify to receive benefits from any program designed to assist the
economically disadvantaged. The banking AND FINANCIAL SERVICES board may
promulgate regulations appropriate to the formation and operation of low
income credit unions.
S 183. The opening paragraph of subdivision 5 of section 453 of the
banking law, as amended by chapter 530 of the laws of 2000, is amended
to read as follows:
A corporate credit union shall enjoy the powers and privileges of any
other credit union incorporated under this chapter in addition to those
powers enumerated in this article, notwithstanding any limitation or
restrictions found elsewhere in this article. The banking AND FINANCIAL
SERVICES board may promulgate such regulations concerning the establish-
ment and operations of corporate credit unions as in its discretion are
necessary and proper. Subject to such regulations, a corporate credit
union may:
A. 9064 85
S 184. The opening paragraph, paragraph (a) of subdivision 6 and
subdivisions 9, 15, 19 and 30 of section 454 of the banking law, as
amended by chapter 679 of the laws of 2003, are amended to read as
follows:
In addition to the powers conferred by the provisions of this chapter,
a credit union shall, subject to the restrictions and limitations
contained in this article, in its bylaws, and in any regulations promul-
gated by the superintendent, or in any regulations of the banking AND
FINANCIAL SERVICES board as may be specifically authorized under this
section, have the following powers:
(a) To lend money to its members at the rate or rates agreed to by the
credit union and the borrower upon such terms and conditions as are
established by its board of directors and subject to such regulations
and restrictions as the banking AND FINANCIAL SERVICES board finds
necessary and proper.
9. To borrow money subject to such regulations and restrictions as the
banking AND FINANCIAL SERVICES board finds necessary and proper from any
source in an aggregate amount not exceeding fifty percent of assets
without the written approval of the superintendent.
15. To conduct its business at automated teller machines, point-of-
sale terminals, shared service centers, and similar facilities subject
to regulations which may be promulgated by the banking AND FINANCIAL
SERVICES board. Such facilities shall not be deemed to be stations and
shall not be subject to any of the provisions of this chapter applicable
to stations.
19. Subject to regulations and restrictions of the banking AND FINAN-
CIAL SERVICES board, a credit union may invest its funds in and make
loans to credit union organizations; provided that such loans or invest-
ments shall be approved by the board of directors. No such loan or
investment shall be made by a credit union pursuant to this subdivision
if the amount of such loan or investment exceeds three per centum of the
total sum due to the members on shares and deposits. For the purpose of
this subdivision, a credit union organization is any organization estab-
lished primarily to serve the needs of its member state and federal
credit unions, and whose business relates to the daily operations of the
credit unions it serves.
30. To acquire and lease personal property, and to hold, assign,
pledge, sell or otherwise dispose of such personal property, to the same
extent as authorized under subdivision twelve of section ninety-six of
this chapter, subject to such limitations and conditions as the banking
AND FINANCIAL SERVICES board may from time to time prescribe by general
regulation.
S 185. Section 455 of the banking law, as added by chapter 608 of the
laws of 1996, is amended to read as follows:
S 455. Trust powers. 1. The banking AND FINANCIAL SERVICES board is
authorized and empowered to grant permission to a credit union to exer-
cise any or all of the powers specified in sections one hundred, one
hundred-a, one hundred-b and one hundred-c of this chapter. In passing
upon applications for permission to exercise any such powers, the bank-
ing AND FINANCIAL SERVICES board may take into consideration the amount
of net worth of the applying credit union, whether or not such net worth
is sufficient under the circumstances of the case, the needs of the
community to be served and any other facts and circumstances that seem
to it proper, and may grant or refuse it permission accordingly.
2. Whenever the laws of this state require a trust company acting in a
fiduciary capacity to deposit securities with the state authorities for
A. 9064 86
the protection of private or court trusts, a credit union, so acting, is
required and empowered to make similar deposits of securities.
3. The banking AND FINANCIAL SERVICES board is authorized to promul-
gate such regulations as it may deem necessary or proper to implement
the provisions of this section and the proper exercise of the powers
granted by this section.
S 186. Subdivision 9 of section 456 of the banking law, as added by
chapter 608 of the laws of 1996, is amended to read as follows:
9. Make a loan to a member upon the security of a mortgage which is
not a first lien, unless such loan is in compliance with the regulations
of the banking AND FINANCIAL SERVICES board. Such regulations may
include such restrictions as the banking AND FINANCIAL SERVICES board
finds necessary and proper, including without limitation, a restriction
as to the percentage of total assets which may be invested in such
loans, a restriction on the loan-to-appraisal value of property securing
such loan, a restriction on the maximum amount to be loaned to each
member, and a limitation on such loans based upon share capital, as
determined by the banking AND FINANCIAL SERVICES board.
S 187. Subdivision 1 of section 477 of the banking law, as amended by
chapter 510 of the laws of 2006, is amended to read as follows:
1. Subject to such regulations as the banking AND FINANCIAL SERVICES
board may prescribe, a credit union may, in the discretion of a majority
of all the board of directors, provide to officers and employees retire-
ment benefits, deferred compensation programs and other employee benefit
plans.
S 188. Section 481 of the banking law, as added by chapter 608 of the
laws of 1996, is amended to read as follows:
S 481. Communications from [banking] department OF BANKING AND FINAN-
CIAL SERVICES must be submitted to directors and supervisory committee,
and noted in the minutes. Every official communication as defined in
article two of this chapter directed to a credit union shall be submit-
ted to both the board of directors and the supervisory committee at the
next meeting of each such board or committee and duly noted in the
minutes of the meeting of such board or committee.
S 189. Subdivision 4 of section 497 of the banking law, as amended by
chapter 502 of the laws of 1961, is amended to read as follows:
4. All reports of examinations and investigations, and all correspond-
ence and memoranda concerning or arising out of such examinations or
investigations, including any duly authenticated copy or copies thereof
in the possession of any licensee or the [banking] department OF BANKING
AND FINANCIAL SERVICES, shall be confidential communications, shall not
be subject to subpoena and shall not be made public unless, in the judg-
ment of the superintendent, the ends of justice and the public advantage
will be subserved by the publication thereof, in which event he OR SHE
may publish or authorize the publication of a copy of any such report or
other material referred to in this subdivision [four], or any part ther-
eof, in such manner, as he OR SHE may deem proper.
S 190. Subdivision 3 of section 507 of the banking law, as added by
chapter 637 of the laws of 1995, is amended to read as follows:
3. For a period of one year following the effective date of this
section, investment companies which have been formed and are operating
pursuant to this article and article fifteen of this chapter on the
effective date of this section, and which meet the requirements of
subdivision one of this section, may convert into limited liability
investment companies provided they meet all of the other requirements of
A. 9064 87
this chapter as if they were newly formed companies and subject to the
approval of the banking AND FINANCIAL SERVICES board.
S 191. The opening paragraph of subdivision 3 and subdivision 6 of
section 508 of the banking law, the opening paragraph of subdivision 3
as amended by chapter 776 of the laws of 1947 and subdivision 6 as
amended by chapter 360 of the laws of 1984, are amended to read as
follows:
With the approval of the banking AND FINANCIAL SERVICES board, and
subject to such conditions as the banking AND FINANCIAL SERVICES board
shall impose,
6. To exercise, subject to such regulations as may be issued from time
to time by the banking AND FINANCIAL SERVICES board, through any branch
office opened and occupied outside the states of the United States and
the District of Columbia with the approval of the superintendent and the
banking AND FINANCIAL SERVICES board as provided in article two of this
chapter, such further powers as may be usual, in connection with the
transaction of the business permitted by this article, in the place
where such branch office shall transact business; provided that no such
branch office shall engage in the general business of producing,
distributing, buying or selling goods, wares, or merchandise.
The grant of powers to investment companies by or pursuant to this
section shall not be deemed to limit or restrict any other corporations,
heretofore or hereafter organized, in the exercise of their lawful
powers.
S 192. Subdivision 4 of section 509 of the banking law, as added by
chapter 776 of the laws of 1947, is amended to read as follows:
4. Except as provided in section five hundred eight of this article,
engage in the business of receiving deposits; provided, however, that
nothing contained in this article shall prevent an investment company
from maintaining for the account of others credit balances incidental
to, or arising out of, the exercise of its lawful powers, but the bank-
ing AND FINANCIAL SERVICES board shall have power to prescribe, by
specific or general regulation, the extent to which, and the conditions
upon which, such credit balances may be established, maintained and paid
out.
S 193. Section 512 of the banking law, as amended by chapter 684 of
the laws of 1938, is amended to read as follows:
S 512. Communications from [banking] department OF BANKING AND FINAN-
CIAL SERVICES must be submitted to directors and noted in minutes. Every
official communication as defined in article two of this chapter
directed to an investment company or to any officer thereof shall be
submitted, by the officer receiving it, to the board of directors at the
next meeting of such board, and duly noted in the minutes of the meet-
ings of such board.
S 194. Section 553 of the banking law, as amended by chapter 805 of
the laws of 1972, is amended to read as follows:
S 553. Investment by fiduciaries in shares. Unless the instrument or
the order, decree or judgment under which moneys are held in a fiduciary
capacity prohibits such investment, an eligible fiduciary or fiduciaries
may invest and reinvest moneys so held in shares of stock of one or more
mutual trust investment companies as it may determine.
The net aggregate amount of moneys of any estate, trust or fund
invested in shares of a mutual trust investment company shall not at any
time exceed the maximum amount permitted by such rules and regulations
as may be promulgated by the banking AND FINANCIAL SERVICES board.
A. 9064 88
"An eligible fiduciary or fiduciaries" shall be deemed to mean a trust
company or a national banking association having its principal office
within the state of New York and acting either as sole fiduciary or with
one or more co-fiduciaries.
S 195. Subdivision 1 of section 556 of the banking law, as added by
chapter 488 of the laws of 1960, is amended to read as follows:
1. Within ninety days after the filing of an application for a license
accompanied by payment of the fees for license and investigation, the
superintendent shall issue the license, or the superintendent may refuse
to issue the license if he OR SHE shall find that the financial respon-
sibility, experience, character and general fitness of the applicant or
any person associated with the applicant are not such as to command the
confidence of the community and to warrant the belief that the business
will be conducted honestly, fairly and efficiently within the purposes
and intent of this article. For the purpose of this subdivision, the
applicant shall be deemed to include all the members of the applicant if
it is a partnership or unincorporated association, and all the stock-
holders, officers and directors of the applicant if it is a corporation.
Such license to engage in business in accordance with the provisions of
this article at the location specified in the application shall be
executed in triplicate by the superintendent and he OR SHE shall trans-
mit one copy thereof to the applicant, file a copy in the office of the
[banking] department OF BANKING AND FINANCIAL SERVICES, and file a copy
in the office of the clerk of the county in which is located the place
designated in such license.
S 196. Section 560 of the banking law, as amended by chapter 474 of
the laws of 1962, is amended to read as follows:
S 560. Investigations and examinations. 1. The superintendent shall
have the power to make such investigations as he OR SHE shall deem
necessary to determine whether any licensee or any other person has
violated any of the provisions of this article, or whether any licensee
has conducted himself OR HERSELF in such manner as would justify the
revocation of his OR HER license, and to the extent necessary therefor,
he OR SHE may require the attendance of and examine any person under
oath, and shall have the power to compel the production of all relevant
books, records, accounts, and documents.
2. The superintendent shall have the power to make such examinations
of the books, records, accounts and documents used in the business of
any licensee as he OR SHE shall deem necessary to determine whether any
such licensee has violated any of the provisions of this article.
3. The expenses incurred in making any examination pursuant to subdi-
vision two of this section [five hundred sixty] shall be assessed
against and paid by the licensee so examined, except that traveling and
subsistence expenses so incurred shall be charged against and paid by
licensees in such proportions as the superintendent shall deem just and
reasonable, and such proportionate charges shall be added to the assess-
ment of the other expenses incurred upon each examination. Upon written
notice by the superintendent of the total amount of such assessment, the
licensee shall become liable for and shall pay such assessment to the
superintendent.
4. All reports of examinations and investigations, and all correspond-
ence and memoranda concerning or arising out of such examinations or
investigations, including any duly authenticated copy or copies thereof
in the possession of any licensee or the [banking] department OF BANKING
AND FINANCIAL SERVICES, shall be confidential communications, shall not
be subject to subpoena and shall not be made public unless, in the judg-
A. 9064 89
ment of the superintendent, the ends of justice and the public advantage
will be subserved by the publication thereof, in which event he OR SHE
may publish or authorize the publication of a copy of any such report or
other material referred to in this subdivision [four], or any part ther-
eof, in such manner as he OR SHE may deem proper.
S 197. Section 577 of the banking law, as amended by chapter 1 of the
laws of 1994, is amended to read as follows:
S 577. Interpretation of article. This article does not affect: (1)
the inclusion of amounts for insurance in retail instalment contracts or
obligations in accordance with the motor vehicle retail instalment sales
act or the retail instalment sales act; (2) the inclusion of amounts for
insurance in retail lease agreements in accordance with the motor vehi-
cle retail leasing act; or (3) the making of loans for the purpose of
financing insurance premiums:
(a) By any person at a rate of interest not greater than the rate
prescribed by the banking AND FINANCIAL SERVICES board pursuant to
section fourteen-a of this chapter, or, if no rate has been so
prescribed, six per centum per annum; or
(b) By a lending institution in accordance with the applicable
provisions of other laws authorizing and regulating the making of loans
by the lending institution.
S 198. Subdivision 4 of section 580 of the banking law, as added by
chapter 629 of the laws of 2002, is amended to read as follows:
4. As a condition for the issuance and retention of a budget planner
license, and subject to such regulations as the superintendent shall
prescribe, applicants for a license shall file with the superintendent a
surety bond in form satisfactory to the superintendent issued by a bond-
ing company or insurance company authorized to do business in this
state. Except as provided hereunder, the principal amount of such bond
shall be two hundred fifty thousand dollars. The superintendent may
require a larger bond if he or she determines, in his or her sole
discretion, that a licensee has engaged in a pattern of conduct result-
ing in bona fide consumer complaints of misconduct and that such
increased bond is necessary for the protection of consumers; or the
superintendent may increase or decrease the amount of such bond or
deposit based upon the applicant's or licensee's financial condition,
business plan, and the actual or estimated aggregate amount of payments
and fees paid by debtors to such licensee. In lieu of such bond, an
applicant may keep on deposit with such banks, savings banks, savings
and loan associations, trust companies, private bankers, national banks,
federal savings banks, or federal savings and loan associations in the
state as such licensee may designate and the superintendent may approve,
interest-bearing bonds, notes, debentures, or other obligations of the
United States or any agency or instrumentality thereof, or guaranteed by
the United States, or of this state, or of a city, county, town,
village, school district, or instrumentality of this state or guaranteed
by this state, or dollar deposits, or such other assets or letters of
credit as the superintendent shall by rule or regulation permit. The
proceeds of each bond or deposit shall constitute a trust fund to be
used exclusively to reimburse payments by debtors that have not been
properly distributed to creditors or to reimburse fees determined by the
superintendent to be improperly charged or collected and, in the event
of the insolvency, liquidation, or bankruptcy of such licensee, to pay
outstanding [banking] department OF BANKING AND FINANCIAL SERVICES exam-
ination costs and assessments. Within ninety days after the effective
A. 9064 90
date of this subdivision, each licensee shall comply with the require-
ments of this subdivision.
S 199. Subdivision 1 of section 581 of the banking law, as amended by
chapter 456 of the laws of 2006, is amended to read as follows:
1. Upon the filing of an application for a license, if the superinten-
dent shall find that the financial responsibility, experience, charac-
ter, and general fitness of the applicant, and of the officers and
directors thereof are such as to command the confidence of the community
and to warrant belief that the business will be operated honestly, fair-
ly, and efficiently within the purposes of this article, he or she shall
thereupon issue a license in duplicate to engage in budget planning in
accordance with the provisions of this article. The superintendent shall
transmit one copy of such license to the applicant and file another in
the office of the [banking] department OF BANKING AND FINANCIAL
SERVICES. Such license shall remain in full force and effect until it
is surrendered by the licensee or revoked or suspended as hereinafter
provided; if the superintendent shall not so find he or she shall not
issue such license and he or she shall notify the applicant of the
denial. The superintendent shall approve or deny every application for
license hereunder within ninety days from the filing thereof.
S 200. Paragraph (e) of subdivision 1 and subdivision 6 of section 590
of the banking law, paragraph (e) of subdivision 1 as added by chapter
571 of the laws of 1986 and subdivision 6 as amended by chapter 293 of
the laws of 1987, are amended to read as follows:
(e) "Exempt organization" shall mean any insurance company, banking
organization, foreign banking corporation licensed by the superintendent
or the comptroller of the currency to transact business in this state,
national bank, federal savings bank, federal savings and loan associ-
ation, federal credit union, or any bank, trust company, savings bank,
savings and loan association, or credit union organized under the laws
of any other state, or any instrumentality created by the United States
or any state with the power to make mortgage loans. Subject to such
regulations as may be promulgated by the banking AND FINANCIAL SERVICES
board, "exempt organization" may also include any subsidiary of such
entities;
6. The banking AND FINANCIAL SERVICES board is hereby authorized and
empowered, consistent with the declaration of policy set forth in this
article, to exempt by rule or regulation from any or all of the
provisions of this article any or all licensees or exempt organizations
as defined in paragraph (e) of subdivision one of this section with
respect to credit line mortgages, installment loans and home improvement
loans.
S 201. Paragraphs (a), (b) and (b-1) of subdivision 2 and subdivisions
3 and 5 of section 590 of the banking law, as amended and paragraph
(b-1) of subdivision 2 as added by chapter 472 of the laws of 2008, are
amended to read as follows:
(a) No person, partnership, association, corporation or other entity
shall engage in the business of making five or more mortgage loans in
any one calendar year without first obtaining a license from the super-
intendent in accordance with the licensing procedure provided in this
article and such regulations as may be promulgated by the banking AND
FINANCIAL SERVICES board or prescribed by the superintendent. The
licensing provisions of this subdivision shall not apply to any exempt
organization nor to any entity or entities which shall be exempted in
accordance with regulations promulgated by the banking AND FINANCIAL
SERVICES board hereunder.
A. 9064 91
(b) No person, partnership, association, corporation or other entity
shall engage in the business of soliciting, processing, placing or nego-
tiating a mortgage loan or offering to solicit, process, place or nego-
tiate a mortgage loan in this state without first being registered with
the superintendent as a mortgage broker in accordance with the registra-
tion procedure provided in this article and by such regulations as may
be promulgated by the banking AND FINANCIAL SERVICES board or prescribed
by the superintendent. The registration provisions of this subdivision
shall not apply to any exempt organization or mortgage banker. No real
estate broker or salesman, as defined in section four hundred forty of
the real property law, shall be deemed to be engaged in the business of
a mortgage broker if he does not accept a fee, directly or indirectly,
for services rendered in connection with the solicitation, processing,
placement or negotiation of a mortgage loan. No attorney-at-law who
solicits, processes, places or negotiates a mortgage loan incidental to
his legal practice shall be deemed to be engaged in the business of a
mortgage broker. The registration provisions of this subdivision shall
not apply to any person or entity which shall be exempted in accordance
with regulations promulgated by the banking AND FINANCIAL SERVICES board
hereunder.
(b-1) No person, partnership, association, corporation or other entity
shall engage in the business of servicing mortgage loans with respect to
any property located in this state without first being registered with
the superintendent as a mortgage loan servicer in accordance with the
registration procedure provided by such regulations as may be prescribed
by the superintendent. The superintendent may refuse to register a mort-
gage loan servicer on the same grounds that he or she may refuse to
issue a registration certificate to a mortgage broker pursuant to subdi-
vision two of section five hundred ninety-two-a of this article. The
registration provisions of this subdivision shall not apply to any
exempt organization, mortgage banker, or mortgage broker or any person
or entity which shall be exempted in accordance with regulations
prescribed by the superintendent hereunder; provided that such exempt
organization, mortgage banker, mortgage broker, or exempted person noti-
fies the superintendent that it is acting as a mortgage loan servicer in
this state and complies with any regulation applicable to mortgage loan
servicers, promulgated by the banking AND FINANCIAL SERVICES board or
prescribed by the superintendent with respect to mortgage loan servi-
cers.
3. Rules and regulations. In addition to such powers as may otherwise
be prescribed by this chapter, the banking AND FINANCIAL SERVICES board
is hereby authorized and empowered to promulgate such rules and regu-
lations as may in the judgement of the banking AND FINANCIAL SERVICES
board be consistent with the purposes of this article, or appropriate
for the effective administration of this article, including, but not
limited to:
(a) Such rules and regulations in connection with the activities of
mortgage brokers, mortgage bankers, mortgage loan servicers and exempt
organizations as may be necessary and appropriate for the protection of
consumers in this state;
(b) Such rules and regulations as may be necessary and appropriate to
define improper or fraudulent business practices in connection with the
activities of mortgage brokers, mortgage bankers, mortgage loan servi-
cers and exempt organizations in making mortgage loans;
A. 9064 92
(c) Such rules and regulations as may define the terms used in this
article and as may be necessary and appropriate to interpret and imple-
ment the provisions of this article; and
(d) Such rules and regulations as may be necessary for the enforcement
of this article.
The banking AND FINANCIAL SERVICES board is hereby authorized and
empowered to make such specific rulings, demands and findings as it may
deem necessary for the proper conduct of the mortgage lending industry.
5. Activities of mortgage brokers, mortgage bankers, mortgage loan
servicers and exempt organizations. (a) Mortgage brokers may not make
mortgage loans in this state;
(b) Mortgage brokers shall solicit, process, place and negotiate mort-
gage loans in conformity with the provisions of this chapter, such rules
and regulations as may be promulgated by the banking AND FINANCIAL
SERVICES board or prescribed by the superintendent thereunder and all
applicable federal laws and the rules and regulations promulgated there-
under;
(c) Mortgage bankers and exempt organizations shall make mortgage
loans in conformity with the provisions of this chapter, such rules and
regulations as may be promulgated by the banking AND FINANCIAL SERVICES
board or prescribed by the superintendent thereunder and all applicable
federal laws and the rules and regulations promulgated thereunder;
(d) Mortgage loan servicers shall engage in the business of servicing
mortgage loans in conformity with the provisions of this chapter, such
rules and regulations as may be promulgated by the banking AND FINANCIAL
SERVICES board or prescribed by the superintendent thereunder and all
applicable federal laws and the rules and regulations promulgated there-
under.
(e) Nothing in this section shall be construed to limit any otherwise
applicable state or federal law or regulations.
S 202. Subdivisions 1 and 4 of section 590-a of the banking law,
subdivision 1 as amended by chapter 81 of the laws of 1996 and subdivi-
sion 4 as added by chapter 631 of the laws of 1983, are amended to read
as follows:
1. A licensee may make a loan to a natural person upon the security of
a mortgage on residential real property which is not a first lien at the
rate or rates agreed to by the licensee and the borrower, subject to
such regulations as the banking AND FINANCIAL SERVICES board may
prescribe. Such regulations by the banking AND FINANCIAL SERVICES board
may include such restrictions as the banking AND FINANCIAL SERVICES
board finds necessary or proper. For purposes of this section, the term
mortgage shall include a lien on an existing ownership interest in
certificates of stock or other evidence of an ownership interest in, and
a proprietary lease from, a corporation or partnership formed for the
purpose of the cooperative ownership of residential real estate.
4. The banking AND FINANCIAL SERVICES board shall adopt regulations,
including but not limited to: (a) providing for disclosure to the
borrower by the licensee of the circumstances under which the rate may
increase, any limitations on the increase, the effect of an increase and
an example of the payment terms that would result from an increase, (b)
providing for disclosure to the borrower by the licensee of a history of
the fluctuations of the index over a reasonable period of time, and (c)
providing for notice to the borrower from the licensee of any rate
increase or change in the terms of payment.
S 203. Subdivision 4 of section 591 of the banking law, as amended by
chapter 146 of the laws of 2003, is amended to read as follows:
A. 9064 93
4. As a condition for the issuance and retention of a mortgage bank-
er's license, and subject to such regulations as the superintendent
shall prescribe, applicants for a license shall file with the super-
intendent a surety bond in form satisfactory to him or her issued by a
bonding company or insurance company authorized to do business in this
state. The principal amount of such bond shall be in an amount and form
prescribed by regulations of the superintendent. Such regulations shall
provide for a varying bond amount based upon a licensee's volume of
business and any other relevant factors as determined by the superinten-
dent, but in no case shall such bond be less than fifty thousand dollars
nor more than five hundred thousand dollars; provided, however, that if
the superintendent determines, in his or her sole discretion, that a
licensee has engaged in a pattern of conduct resulting in bona fide
consumer complaints of misconduct, the superintendent may require such
licensee to post a surety bond, or keep on deposit as provided in this
subdivision, twice the amount of such bond or deposit as is required
consistent with such regulations. In lieu of such bond, an applicant may
keep on deposit with such banks, savings banks, savings and loan associ-
ations, or trust companies or private bankers or national banks or
federal savings banks or federal savings and loan associations in the
state of New York as such applicant may designate and the superintendent
may approve, interest-bearing stocks and bonds, notes, debentures, or
other obligations of the United States or any agency or instrumentality
thereof, or guaranteed by the United States, or of this state, or of a
city, county, town, village, school district, or instrumentality of this
state or guaranteed by this state, or dollar deposits, or such other
assets or letters of credit as the superintendent shall by rule or regu-
lation permit. In the event of the insolvency, liquidation or bankruptcy
of such licensee, or the surrender or revocation of such mortgage bank-
er's license, or where the superintendent takes possession of such
licensee, the proceeds of each bond or deposit shall constitute a trust
fund to be used exclusively to reimburse consumer fees or other charges
determined by the superintendent to be improperly charged or collected
and to pay past due [banking] department OF BANKING AND FINANCIAL
SERVICES examination costs and assessments charged to the licensee,
unpaid penalties, or other obligations of the licensee. The superinten-
dent is authorized to promulgate such regulations as are necessary and
desirable to define and implement the provisions of this subdivision.
Persons and entities licensed prior to the effective date of any regu-
lations of the superintendent prescribing the bonding requirement
authorized by this subdivision shall file such bond or establish such
deposit within six months of the effective date of such regulations.
S 204. Subdivision 3 of section 591-a of the banking law, as amended
by chapter 154 of the laws of 2007, is amended to read as follows:
3. As a condition for the issuance and retention of a mortgage
broker's registration, and subject to such regulations as the super-
intendent shall prescribe, applicants for a registration shall file with
the superintendent a surety bond or make a deposit, as described in
subdivision four of section five hundred ninety-one of this article, in
an amount and form prescribed by regulations of the superintendent. Such
regulations shall provide for a varying bond amount based upon a regis-
trant's volume of business and any other relevant factors as determined
by the superintendent, but in no case shall such bond be less than ten
thousand dollars nor more than one hundred thousand dollars; provided
however that if the superintendent determines, in his or her sole
discretion, that a registrant has engaged in a pattern of conduct
A. 9064 94
resulting in bona fide consumer complaints of misconduct, the super-
intendent may require such registrant to post a surety bond, or keep on
deposit as provided in this subdivision, twice the amount of such bond
or deposit as is required consistent with such regulations. In the event
of the insolvency, liquidation or bankruptcy of such registrant, or the
surrender or revocation of such mortgage broker's registration, or where
the superintendent takes possession of such registrant, the proceeds of
each bond or deposit shall constitute a trust fund to be used exclusive-
ly to reimburse consumer fees or other charges determined by the super-
intendent to be improperly charged or collected and to pay past due
[banking] department OF BANKING AND FINANCIAL SERVICES examination costs
and assessments charged to the registrant, unpaid penalties, or other
obligations of the registrant. The superintendent is authorized to
promulgate such regulations as are necessary and desirable to define and
implement the provisions of this subdivision. Persons and entities
registered prior to the effective date of any regulations of the super-
intendent implementing or modifying the bonding requirement authorized
by this subdivision shall file such bond or establish such deposit with-
in six months of the effective date of such regulations.
S 205. Subdivision 1 of section 592 of the banking law, as amended by
chapter 400 of the laws of 1993, is amended to read as follows:
1. Upon the filing of an application for a license, if the superinten-
dent shall find that the financial responsibility, experience, charac-
ter, 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 issue a
license in duplicate to engage in the business of making mortgage loans
described in section five hundred ninety of this article in accordance
with provisions of this article. If the superintendent shall not so
find, the superintendent shall not issue such license, and the super-
intendent shall notify the applicant of the denial. The superintendent
shall transmit one copy of such license to the applicant and file anoth-
er in the office of the [banking] department OF BANKING AND FINANCIAL
SERVICES. Upon receipt of such license, a mortgage banker shall be
authorized to engage in the business of making mortgage loans in accord-
ance with the provisions of this article. Such license shall remain in
full force and effect until it is surrendered by the licensee or revoked
or suspended as hereinafter provided. The superintendent shall approve
or deny every application for license hereunder within ninety days from
the filing of a completed application provided, however, that failure to
act within the prescribed period shall not be deemed approval of any
such application.
S 206. 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
A. 9064 95
register the applicant as a mortgage broker on a roll maintained for
that purpose at the [banking] department OF BANKING AND FINANCIAL
SERVICES, and issue a certificate attesting 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] depart-
ment OF BANKING AND FINANCIAL SERVICES. Upon receipt of such certif-
icate a mortgage broker shall be authorized to engage in the business of
placing, processing and negotiating mortgage loans. Such registration
shall remain in full force and effect until it is surrendered by the
licensee 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 assess-
ment 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. The superintendent
shall approve or deny every application for registration hereunder with-
in 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 207. Subdivision 2 of section 593-a of the banking law, as added by
chapter 571 of the laws of 1986, is amended to read as follows:
2. In addition to the display of such certificate, each registered
mortgage broker shall prominently display a notice printed in the
English language, each letter to be at least two inches in height, indi-
cating that the mortgage broker is not empowered to make mortgage loans,
and such other notices as required by the banking AND FINANCIAL SERVICES
board.
S 208. The opening paragraph of subdivision 1, the opening paragraph
and paragraph (a) of subdivision 2, and the opening paragraph and para-
graphs (a), (b) and (d) of subdivision 3 of section 595-a of the banking
law, as added by chapter 571 of the laws of 1986, and paragraph (d) of
subdivision 3 as relettered by chapter 400 of the laws of 1993, are
amended to read as follows:
In addition to such other rules, regulations and policies as the bank-
ing AND FINANCIAL SERVICES board may prescribe to effectuate the
purposes of this article, the banking AND FINANCIAL SERVICES board shall
promulgate regulations and policies governing the establishment of
grounds to impose a fine or penalty with respect to the activities of a
mortgage banker, mortgage broker or exempt organization. Such regu-
lation shall encompass the following:
In addition to such other rules, regulations and policies as the bank-
ing AND FINANCIAL SERVICES board may promulgate to effectuate the
purposes of this article, the banking AND FINANCIAL SERVICES board shall
prescribe regulations governing the advertising of mortgage loans,
including, without limitation, the following requirements:
(a) All advertisements by a mortgage broker, mortgage banker or exempt
organization shall contain the name and an office address of such enti-
ty, which in the case of licensees and registrants shall conform to a
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name and address on record with the [banking] department OF BANKING AND
FINANCIAL SERVICES;
In addition to such other rules, regulations and policies as the bank-
ing AND FINANCIAL SERVICES board may promulgate to effectuate the
purposes of this article, the banking AND FINANCIAL SERVICES board shall
promulgate regulations governing the disclosure required to be made to
applicants for a mortgage loan, including, without limitation, the
following requirements:
(a) Each mortgage broker, mortgage banker and exempt organization
shall provide to each applicant for a mortgage loan at or before the
time of application a disclosure of the fees payable at the time of
application and the conditions under which such fees may be refundable,
and such other disclosures as shall be required by the banking AND
FINANCIAL SERVICES board;
(b) Each mortgage banker and exempt organization shall make available
to each applicant for a mortgage loan at or before the time a commitment
to make a mortgage loan is given a written disclosure, the fees to be
paid in connection with the commitment and the loan, or the manner in
which such fees shall be determined and the conditions under which such
fees may be refundable, and such other disclosures as may be required by
the banking AND FINANCIAL SERVICES board; and
(d) Each mortgage broker, mortgage banker and exempt organization
shall provide such other disclosure as the banking AND FINANCIAL
SERVICES board shall determine by regulation are appropriate to carry
out the purposes of this article.
S 209. Section 595-b of the banking law, as added by chapter 472 of
the laws of 2008, is amended to read as follows:
S 595-b. Regulation of mortgage loan servicers. 1. Establishment of
grounds to impose a fine or penalty. In addition to such other rules,
regulations and policies as the banking AND FINANCIAL SERVICES board may
promulgate or the superintendent may prescribe to effectuate the
purposes of this article, the superintendent shall promulgate regu-
lations and policies governing the establishment of grounds to impose a
fine or penalty with respect to the activities of a mortgage loan servi-
cer.
2. Servicing practices. In addition to such other rules, regulations
and policies as the banking AND FINANCIAL SERVICES board may promulgate
to effectuate the purposes of this article, the superintendent may
prescribe regulations which relate to: (a) providing for disclosures to
borrowers of the basis for any interest rate resets; (b) requirements
for the provision of pay-off statements; and (c) governing the timing of
the crediting of payments made by the borrower.
S 210. Subparagraph (vi) of paragraph (b) of subdivision 2 of section
102 of the state administrative procedure act, as amended by chapter 74
of the laws of 1987, is amended to read as follows:
(vi) rates of interest prescribed by the superintendent of banks AND
FINANCIAL SERVICES pursuant to section fourteen-a of the banking law;
S 211. Section 597 of the banking law, as separately amended by chap-
ters 315 and 472 of the laws of 2008, is amended to read as follows:
S 597. Books and records; reports and electronic filing. Each licen-
see, servicer, registrant and exempt organization shall keep and use in
its business such books, accounts and records as will enable the super-
intendent 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 AND FINANCIAL SERVICES board. Every licensee, servicer,
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registrant and exempt organization shall preserve such books, accounts,
and records, for at least three years; provided, however, that preserva-
tion 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 and which are available for examination upon request
shall constitute compliance with the requirements of this section.
Each licensee and registrant shall annually, on or before a date to be
determined by the superintendent, file a report with the superintendent
giving such information as the superintendent may require concerning the
business and operations during the preceding calendar year of such
licensee or registrant under authority of this article. Such report
shall be subscribed and affirmed as true by the licensee or registrant
under the penalties of perjury and shall be in the form prescribed by
the superintendent. In addition to annual reports, the superintendent
may require such additional regular or special reports as he or she may
deem necessary to the proper supervision of licensees and registrants
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.
Notwithstanding article three of the state technology law or any other
law to the contrary, the superintendent may require that any application
for, or renewal of, any license or registration or any other submission
or approval as may be required by the superintendent be made or executed
by electronic means if he or she deems it necessary to ensure the effi-
cient administration of this article.
The superintendent may require servicers to file annual reports or
other regular or special reports, including reports with respect to
mortgage delinquencies and foreclosures. Such reports shall be in the
form prescribed by the superintendent and shall be subscribed and
affirmed as true under the penalties of perjury.
S 212. Paragraph (a) of subdivision 1 of section 599-g of the banking
law, as added by chapter 553 of the laws of 2007, is amended to read as
follows:
(a) Through a course of conduct, the MLO has violated any provisions
of this article, or any rule or regulation promulgated by the banking
AND FINANCIAL SERVICES board, or any rule or regulation prescribed by
the superintendent under and within the authority of this article or
article twelve-D of this chapter or of any other law, rule or regulation
of this state or the federal government pertaining to mortgage banking,
brokering or loan originating;
S 213. Subdivisions 7 and 8 of section 600 of the banking law, subdi-
vision 7 as amended by chapter 315 of the laws of 2008 and subdivision 8
as amended by chapter 152 of the laws of 1993 and as renumbered by chap-
ter 455 of the laws of 2006, are amended to read as follows:
(7) One or more subsidiaries or affiliates of a bank, trust company,
savings bank or savings and loan association, which are not a bank,
trust company, savings bank or savings and loan association, as those
terms are defined in section two of this chapter, with the bank, trust
company, savings bank or savings and loan association of which it is a
subsidiary or affiliate, as the banking AND FINANCIAL SERVICES board
shall approve and enter on its records; provided, however, that nothing
in this subdivision shall be deemed to authorize a bank, trust company,
savings bank or savings and loan association to exercise any power or
engage in any activity that it may not exercise or engage in pursuant to
this chapter. The banking AND FINANCIAL SERVICES board may promulgate
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such regulations as it deems necessary and proper to implement and
define the provisions of this subdivision. Nothing in this subdivision
shall alter, affect or impair any regulation or resolution adopted, or
that may be adopted, by the banking AND FINANCIAL SERVICES board, pursu-
ant to section twelve-a or former sections fourteen-g or fourteen-h of
this chapter.
(8) Such other mergers between and among banking institutions as the
banking AND FINANCIAL SERVICES board may authorize.
S 214. Paragraph (g) of subdivision 1 of section 601-a of the banking
law, as amended by chapter 152 of the laws of 1993, is amended to read
as follows:
(g) One or more banking institutions by another banking institution to
the extent permitted under regulations of the banking AND FINANCIAL
SERVICES board.
S 215. Subdivision 2 of section 601-b of the banking law, as amended
by chapter 55 of the laws of 1965, is amended to read as follows:
2. Notwithstanding the provisions of subdivision one of this section,
the approval of the superintendent shall not be required with respect to
such merger or acquisition, if any of the corporations which are to
merge, or if the selling or acquiring corporation, is a banking subsid-
iary of a bank holding company, and the banking AND FINANCIAL SERVICES
board pursuant to section one hundred forty-two of this chapter has
granted its approval for such bank holding company, or any trustee or
trustees who hold voting stock of such banking subsidiary for the bene-
fit of the stockholders or members of such bank holding company, to vote
the stock of such banking subsidiary in favor of the proposed merger or
acquisition. The superintendent shall file the plan of merger or acqui-
sition and the certificates submitted to him pursuant to section six
hundred one or section six hundred one-a of this chapter, together with
a certified copy of the resolution of the banking AND FINANCIAL SERVICES
board granting such approval, in the office of the superintendent, and,
in the case of a merger, a duplicate of the plan and of each of such
certificates, together with a certified copy of such resolution, shall
be filed in the office of the clerk of the county in which the receiving
corporation is located. Upon such filing in the office of the super-
intendent, the merger or acquisition shall become effective, unless a
later date is specified in the plan, in which event the merger or acqui-
sition shall become effective upon such later date. For purposes of
this subdivision, the terms "bank holding company" and "banking subsid-
iary" shall have the meanings stated in section one hundred forty-one of
this chapter.
S 216. Subdivision 8 of section 605 of the banking law, as amended by
section 60 of part O of chapter 59 of the laws of 2006, is amended to
read as follows:
8. Unless the banking AND FINANCIAL SERVICES board by a three-fifths
vote of all its members shall otherwise provide, any corporate banking
organization that, pursuant to an agreement, sells or conveys more than
fifty per centum of its assets without the written approval of the
superintendent shall take the proceedings for voluntary dissolution
herein prescribed and, within six months from the date of such sale or
conveyance, shall file with the superintendent a certified copy of the
closing order in the form prescribed by subdivision four of this
section. The corporate banking organization, upon making written appli-
cation to the superintendent for approval of the sale or conveyance of
more than fifty per centum of its assets, shall pay an investigation fee
as prescribed pursuant to section eighteen-a of this chapter. If a clos-
A. 9064 99
ing order is required to be filed pursuant to this subdivision and such
order is not filed within the time prescribed, the superintendent shall
have the power, in his or her discretion, to take possession of the
business and property of such corporation and proceed with the liqui-
dation thereof under the provisions of this article.
S 217. Subdivision 2 of section 617 of the banking law, as amended by
chapter 174 of the laws of 1941, is amended to read as follows:
2. If such property or contents shall not be removed, and all rent or
storage and other charges theretofore accrued, if any, shall not be
paid, within the time fixed by such notice, the superintendent may cause
such property to be inventoried, or such safe, vault or box, or any
package, parcel or receptacle in the custody or possession of such bank-
ing organization as bailee or depositary for hire or otherwise, to be
opened and the contents, if any, to be removed and inventoried, in his
presence or in the presence of a deputy superintendent, a special deputy
superintendent, or an examiner and of a notary public, not an officer or
employee of such banking organization or of the [banking] department OF
BANKING AND FINANCIAL SERVICES. Such property or contents shall there-
upon be sealed up by such notary public in a package distinctly marked
by him with the name of the person in whose name such property or such
safe, vault, box, package, parcel or receptacle stands upon the books of
such banking organization, and a copy of the inventory of the property
therein shall be certified and attached thereto by such notary public.
Such package may be kept by the superintendent in such place as he may
determine at the expense and risk of the person in whose name it stands
until delivered to such person or until sold, destroyed or otherwise
disposed of as hereinafter provided. Such package may, pending final
disposition of its contents, be opened by the superintendent, a deputy
superintendent, special deputy superintendent or examiner, from time to
time for inspection or appraisal, or to enable the superintendent to
exercise any of the powers conferred or duties imposed upon him by this
article. Whenever such package is opened, the superintendent, deputy
superintendent, special deputy superintendent or examiner, shall endorse
on the outside of said package the date of opening and re-sealing, and
shall prepare an affidavit which shall be attached thereto, showing the
reason for opening and the articles, if any, removed therefrom, or
placed or replaced therein.
S 218. Subdivision 4 of section 646 of the banking law, as amended by
chapter 677 of the laws of 2004, is amended to read as follows:
4. All reports of investigations and other reports rendered pursuant
to this section, and all correspondence and memoranda concerning or
arising out of such investigations or reports, including any duly
authenticated copy or copies thereof in the possession of any licensee
or the [banking] department OF BANKING AND FINANCIAL SERVICES, shall be
confidential communications, shall not be subject to subpoena and shall
not be made public unless, in the judgment of the superintendent, the
ends of justice and the public advantage will be subserved by the publi-
cation thereof, in which event the superintendent may publish or author-
ize the publication of a copy of any such report or other material
referred to in this subdivision, or any part thereof, in such manner as
may be deemed proper. For purposes of this subdivision, "reports of
investigations, and other reports rendered pursuant to this section and
all correspondence and memoranda concerning or arising out of such
investigations or reports" shall have the same meaning as such terms are
defined pursuant to subdivision ten of section thirty-six of this chap-
ter.
A. 9064 100
S 219. Subdivision (c) of section 675 of the banking law, as added by
chapter 777 of the laws of 1983, is amended to read as follows:
(c) 1. The banking AND FINANCIAL SERVICES board shall promulgate and
may from time to time amend rules and regulations which require that the
joint tenants of an account established on or after the date on which
the rule or regulation becomes effective and representing any deposit or
shares governed by the foregoing provisions of this section, shall, at
the time the account is established be informed of the terms and condi-
tions of the account including the relationship and consequences between
the parties in the account and the responsibilities of the institution
with which the account is established.
2. This subdivision or any rule or regulation thereunder shall not be
deemed or construed as increasing or diminishing the rights or liability
of any person, or other entity.
S 220. Subdivision 2 of section 678 of the banking law, as added by
chapter 436 of the laws of 1990, is amended to read as follows:
2. The banking AND FINANCIAL SERVICES board shall promulgate and may
from time to time amend rules and regulations which require that a depo-
sitor who requests the establishment of an account in the name of the
depositor and another person "for the convenience" of the depositor be
informed of the terms and conditions of the account described in subdi-
vision one of this section, including the relationship and consequences
between the parties in such an account, the difference between such an
account and a joint account established under section six hundred seven-
ty-five of this article, and the responsibilities of the institution
with which such an account is established. This subdivision or any rule
or regulation thereunder shall not be deemed or construed as increasing
or diminishing the rights or liability of any person, or other entity.
S 221. Subdivision 1 of section 1001 of the banking law, as amended by
chapter 1 of the laws of 1984, is amended to read as follows:
1. "Corporation" means and includes all banks, trust companies, safe
deposit companies, investment companies, mutual trust investment compa-
nies, and, to the extent not provided otherwise under any regulation of
the banking AND FINANCIAL SERVICES board promulgated pursuant to the
provisions of section fourteen-e of this chapter, stock-form savings
banks and stock-form savings and loan associations.
S 222. Paragraph (f) of subdivision 2 of section 2001 of the banking
law, as amended by chapter 566 of the laws of 2004, is amended to read
as follows:
(f) To be a promoter, partner, member, associate or manager of other
business enterprises or ventures, or to the extent permitted in any
other jurisdiction to be an incorporator of other corporations of any
type or kind; provided, however, that nothing contained in this para-
graph shall authorize a banking organization to engage in any activity
not otherwise authorized by the laws of New York or by regulations of
the banking AND FINANCIAL SERVICES board or of the superintendent.
S 223. Section 3001 of the banking law, as amended by chapter 464 of
the laws of 2006, is amended to read as follows:
S 3001. Corporate name; general. Except as otherwise provided in this
chapter, the name of a corporation or a foreign corporation, or the name
of representative and other offices in this state, which are open to the
general public and maintained by any banking corporation, wherever
located, shall not be the same as the name of a corporation of any type
or kind, as such name appears on the index of names of existing corpo-
rations and foreign corporations of any type or kind in the [banking]
A. 9064 101
department OF BANKING AND FINANCIAL SERVICES or a name so similar to
such name as to tend to confuse or deceive.
S 224. Subdivision 3 and the closing paragraph of subdivision 9 of
section 4001 of the banking law, as amended by chapter 360 of the laws
of 1984, are amended to read as follows:
3. The amount of its capital stock, the number of shares into which
such capital stock shall be divided and the par value of the shares,
which capital stock shall amount to not less than the amounts prescribed
by the banking AND FINANCIAL SERVICES board.
No corporation shall be authorized to exercise the powers set forth in
section one hundred of this chapter unless its capital stock shall
amount to not less than the amounts prescribed by the banking AND FINAN-
CIAL SERVICES board.
S 225. Subdivision 1 of section 4001-a of the banking law, as added by
chapter 637 of the laws of 1995, is amended to read as follows:
1. Notwithstanding the provisions of section four thousand one of this
article and when authorized by the superintendent and the banking AND
FINANCIAL SERVICES board as provided in article two of this chapter,
five or more persons may form a limited liability investment company
pursuant to the provisions of article twelve of this chapter. Such
person or persons shall subscribe and acknowledge the articles of organ-
ization in duplicate which shall specifically state:
(a) the name by which the limited liability investment company is to
be known;
(b) the place where its office is to be located;
(c) the amount of its capital contributions;
(d) if the company is to have classes or groups of members, the rela-
tive rights, powers, preferences, limitations and voting powers of each
such class or group;
(e) the names and places of residence of the persons forming the
company;
(f) the duration of the company;
(g) the number of managers charged with the management of the company
as its board, provided that such number shall be in accordance with the
requirements set forth in section seven thousand two of this article;
and
(h) the names of the persons who shall manage the company until the
first annual meeting of the members, provided that such persons must
possess the qualifications as to citizenship and residence specified in
section seven thousand one of this article.
S 225-a. Subdivision 1 of section 4001-b of the banking law, as added
by chapter 248 of the laws of 1997, is amended to read as follows:
1. Notwithstanding the provisions of section four thousand one of
this article and when authorized by the superintendent and the banking
AND FINANCIAL SERVICES board as provided in article two of this chapter,
five or more persons may form a limited liability trust company pursuant
to the provisions of article three of this chapter. Such person or
persons shall subscribe and acknowledge the articles of organization in
duplicate, which shall specifically state:
(a) the name by which the limited liability trust company is to be
known;
(b) the place where its office is to be located;
(c) the amount of its capital contributions;
(d) if the company is to have classes or groups of members, the rela-
tive rights, powers, preferences, limitations, and voting powers of each
such class or group;
A. 9064 102
(e) the names and places of residence of the persons forming the
company;
(f) the duration of the company;
(g) the number of managers charged with the management of the company
as its board, provided that such number shall be in accordance with the
requirements set forth in section seven thousand two of this article;
and
(h) the names of the persons who shall manage the company until the
first annual meeting of the members, provided that such persons must
possess the qualifications as to citizenship and residence specified in
section seven thousand one of this article.
S 226. Subdivision 4 of section 7006 of the banking law, as added by
chapter 849 of the laws of 1964, is amended to read as follows:
4. This section does not affect the powers of the superintendent or
the banking AND FINANCIAL SERVICES board under section forty-one of this
chapter.
S 226-a. Subdivision 2 of section 7014 of the banking law, as added by
chapter 849 of the laws of 1964, is amended to read as follows:
2. This section does not affect the powers of the superintendent or
the banking AND FINANCIAL SERVICES board under section forty-one of this
chapter.
S 227. Section 9014 of the banking law, as amended by chapter 297 of
the laws of 1993, is amended to read as follows:
S 9014. Corporate name; general. Except as otherwise provided in this
chapter, the name of a corporation or a foreign corporation shall not be
the same as the name of a corporation of any type or kind, as such name
appears on the index of names of existing corporations of any type or
kind in the [banking] department OF BANKING AND FINANCIAL SERVICES or a
name so similar to such name as to tend to confuse or deceive.
S 228. Section 9019 of the banking law, as added by chapter 1 of the
laws of 1984, is amended to read as follows:
S 9019. Certain provisions relating to the conversion of non-stock
savings banks and savings and loan associations to stock form. No mutual
savings bank and no mutual savings and loan association shall convert to
stock form unless all depositors (in the case of such savings banks) and
all shareholders (in the case of such savings and loan associations) of
any such converting institution whose aggregate deposit or share
balance, as the case may be, (as shown on the books and records of the
converting institution) equals at least one hundred dollars as of a
record date to be established in accordance with general regulations of
the banking AND FINANCIAL SERVICES board are provided with an opportu-
nity to approve such conversion, either in person or by valid proxy, at
a meeting duly convened in accordance with general regulations of the
banking AND FINANCIAL SERVICES board for the purpose of approving or
disapproving such conversion. At such meeting, each depositor or share-
holder shall be entitled to cast one vote for each full one hundred
dollars of deposits or shares of such depositor or shareholder shown on
the books and records of the converting institution as of such record
date. A depositor or shareholder shall not be entitled to cast any votes
for any deposit or share balances in amounts of less than one hundred
dollars. No such conversion shall be effective unless approved by the
affirmative vote of at least seventy-five per centum of the aggregate
dollar amount of the book value of deposits or shares, as the case may
be, represented (either in person or by proxy) at such duly convened
meeting and entitled to vote thereat.
A. 9064 103
S 229. Section 304 of the abandoned property law, as amended by chap-
ter 44 of the laws of 1950, is amended to read as follows:
S 304. Unclaimed property held by the superintendent of banks AND
FINANCIAL SERVICES after liquidation. 1. All amounts held by the super-
intendent of banks AND FINANCIAL SERVICES as trustee for the owners
thereof after the completion of the voluntary or involuntary liquidation
of the business and property of any banking organization or of the busi-
ness and property in this state of any foreign banking corporation, as
provided in section thirty of the banking law, which shall not have been
claimed and paid within four years after receipt by the superintendent
OF BANKS AND FINANCIAL SERVICES shall be deemed abandoned property.
2. Any such abandoned property held by the superintendent of banks AND
FINANCIAL SERVICES to which the right to receive the same is established
as provided in section thirty-one of the banking law shall cease to be
deemed abandoned.
S 230. Section 305 of the abandoned property law, as amended by chap-
ter 44 of the laws of 1950, is amended to read as follows:
S 305. Payment of abandoned property after liquidation by superinten-
dent of banks AND FINANCIAL SERVICES. 1. Not later than the first day
of October in each year the superintendent of banks AND FINANCIAL
SERVICES shall pay to the state comptroller all such abandoned property
held by him which shall have become abandoned property at any time prior
to the first day of July next preceding, excepting such abandoned prop-
erty as since such first day of July shall have ceased to be abandoned.
2. Such payment shall be accompanied by a statement signed by the
superintendent of banks AND FINANCIAL SERVICES setting forth the name
and last known address of, and the amount owning to, each person appear-
ing to be the owner of any such abandoned property, or if the name is
unknown, the nature and identifying number of the indebtedness and the
name of the banking organization or foreign banking corporation from
which such abandoned property was received, together with such other
identifying information as the state comptroller may require.
S 231. Subdivision (a) of section 1415 of the abandoned property law,
as added by chapter 568 of the laws of 1981, is amended to read as
follows:
(a) the laws of the state of New York including therein the regu-
lations of the New York state [banking] department OF BANKING AND FINAN-
CIAL SERVICES; or
S 232. Paragraphs b and j of subdivision 3 of section 24-a of the
general construction law, paragraph b as amended and paragraph j as
added by chapter 209 of the laws of 1979, are amended to read as
follows:
b. Whenever the officers of a banking organization are of the opinion
that an emergency, as hereinafter defined, exists which affects one or
more or all the banking organization's offices, they shall have authori-
ty to close one or more or all such offices even though the governor has
not issued and does not issue a proclamation of emergency, provided
however, that provision is made by such officers for the transaction of
the business normally transacted at a closed office at another office or
the principal office of the banking organization, until further notice.
The office or offices so closed shall remain closed until the officers
or, in the case of a banking organization as defined in the banking law,
the superintendent of banks AND FINANCIAL SERVICES, direct that it be
opened. A banking organization closing an office or offices pursuant to
this paragraph shall give prompt notice to the superintendent of banks
AND FINANCIAL SERVICES of its action.
A. 9064 104
j. For purposes of this section, each reference to the superintendent
of banks AND FINANCIAL SERVICES shall be deemed to include any official
of the [banking] department OF BANKING AND FINANCIAL SERVICES to whom
authority granted by this section has been delegated.
S 233. Paragraphs (a) and (b) of subdivision 1 of section 15 of the
private housing finance law, paragraph (a) as amended by chapter 990 of
the laws of 1972 and paragraph (b) as added by chapter 23 of the laws of
1976, are amended to read as follows:
(a) One or more banking organizations, foundations, labor unions,
employers' associations, veterans' organizations, colleges, universi-
ties, educational institutions, child care institutions, hospitals,
medical research institutes, insurance companies, trustees, fiduciaries
or any combination of the foregoing, shall have the power to organize a
company pursuant to the provisions of this article, and to purchase for
cash or to receive and hold in exchange for property, and to own the
bonds of a company and to invest, singly or jointly, or with the state
or a municipality or the New York state housing finance agency or the
New York city housing development corporation in a bond or note and
single participating mortgage, or in separate bonds or notes and mort-
gages, in an amount not greater than ninety-five per centum of the total
project cost in the case of a mutual company, urban rental company or a
non-profit company incorporated pursuant to the provisions of the not-
for-profit corporation law and this article for the purpose of providing
housing for staff members, employees or students of a college, universi-
ty, child care institution, or hospital and their immediate families and
in the case of a non-profit company incorporated pursuant to the not-
for-profit corporation law and this article for the purpose of providing
housing for aged persons of low income or in the case of a low income
non-profit housing company such investment shall not be greater than the
total project cost. Where one or more banking organizations, founda-
tions, labor unions, employers' associations, veterans' organizations,
colleges, universities, educational institutions, child care insti-
tutions, hospitals, medical research institutes, insurance companies,
trustees, fiduciaries, or the state or a municipality or the New York
state housing finance agency or the New York city housing development
corporation, shall participate in a loan to a company secured by a
single participating mortgage or by separate mortgages, the interest of
each shall have equal priority as to lien in proportion to the amount of
loan so secured, but need not be equal as to interest rate, time or rate
of amortization or otherwise. Banking organizations, foundations, labor
unions, employers' associations, veterans' organizations, colleges,
universities, educational institutions, child care institutions, hospi-
tals, medical research institutes, insurance companies, trustees, fidu-
ciaries or groups thereof, may exercise any such power on such condi-
tions, however, as to banking organizations, as may be prescribed by the
banking AND FINANCIAL SERVICES board of the state [banking] department
OF BANKING AND FINANCIAL SERVICES, and as to insurance companies only to
the extent and upon such conditions as may be authorized by the state
superintendent of insurance. As used in this subdivision, the terms
"trustees" and "fiduciaries" shall include any fiduciary or fiduciaries
holding funds for investment, and the term "banking organizations" shall
have the same meaning as in subdivision eleven of section two of the
banking law.
(b) Notwithstanding the provisions of paragraph (a) of this subdivi-
sion or of any general, special or local law, for the purpose of
completing the financing of project cost, in the event that a munici-
A. 9064 105
pality has made or contracted to make a loan to a company or to a public
benefit corporation to provide moneys to finance the project cost of a
project (1) the construction of which commenced prior to December first,
nineteen hundred seventy-five, (2) for which a temporary or permanent
certificate of occupancy was not issued prior to January first, nineteen
hundred seventy-three, and (3) which is assisted by a contract with the
secretary of housing and urban development of the United States pursuant
to section two hundred thirty-six of the national housing act, as
amended, covering all dwelling units therein, one or more banking organ-
izations as defined in paragraph (a) of this subdivision, foundations,
labor unions, credit unions, employers' associations, veterans' organ-
izations, colleges, universities, educational institutions, child care
institutions, hospitals, medical research institutes, insurance compa-
nies, trustees or fiduciaries as defined in paragraph (a) of this subdi-
vision, trustees of pension and retirement funds and systems, corpo-
rations, partnerships, individuals, or other entities or any combination
of the foregoing shall have the power to participate in such loan or
make or participate in a new loan secured by a bond or note and a single
participating mortgage, or by separate bonds or notes and separate mort-
gages, or to invest, singly or jointly, with the municipality in a bond
or note and single participating mortgage or in separate bonds or notes
and mortgages, upon such terms and conditions as may be approved by the
supervising agency, including but not limited to provisions providing
that (i) priority may be given to the payment of the principal of and
interest on that portion of the mortgage indebtedness attributable to
participation in a loan or an investment made by one or more of such
entities or organizations, (ii) the interest of the municipality created
as a result of making a mortgage loan may be subordinated to the inter-
est that one or more of such organizations or entities may have upon
such participation or investment, (iii) the interest of each upon such
participation or investment need not be of equal priority as to lien,
nor be equal as to interest rate, time or rate of amortization of prin-
cipal or time of payment of interest, or otherwise, provided, however,
that the aggregate amount of the loan or loans or investment made by one
or more of such organizations or entities shall not exceed thirty per
centum of total project cost and, further provided that the aggregate
amount of the loan or loans to a company does not exceed such amount as
is authorized pursuant to paragraph (a) of this subdivision. All or part
of the proceeds of such participation or investment pursuant to this
paragraph (b) may be applied to reduce or prepay the loan made by the
municipality. The provisions of subdivisions one and five of section
twenty-six of this article shall not apply to such participation in a
loan or investment pursuant to this paragraph (b) if undertaken in
connection with a project theretofore approved pursuant to said section
twenty-six.
Notwithstanding the provisions of this article or of any general,
special or local law, in the event that a municipality has made a loan
pursuant to this article prior to any participation pursuant to this
paragraph, the supervising agency shall have the power, upon the
mortgagor's consent, to modify the terms and conditions of the original
bond or bonds or note or notes and mortgage and any other documents
executed in connection with such initial loan, as the supervising agency
may deem necessary or desirable, to provide for such participation,
including but not limited to modification of the rate and time of
payment of the interest on the initial loan or rate of amortization of
principal thereof, and provision for the additional borrowing cost, if
A. 9064 106
any, with respect to that portion of the mortgage indebtedness attribut-
able to such participation, provided, that except to the extent of any
increase in the maximum principal amount of the original mortgage loan,
with regard to a company that has obtained a temporary or permanent
certificate of occupancy for part or all of a project financed by a loan
pursuant to this article before such participation in a loan or invest-
ment is made, the sum of the payments of interest and principal on the
mortgage loan or loans which the company is obligated to make in any
year as a result of such modification and participation in a loan or
investment made pursuant to this paragraph, shall not exceed the sum of
the payments of interest and principal that such company would have been
obligated to make in such year under the original mortgage loan agree-
ment if the project had been fully financed under the original mortgage
loan agreement by the municipality at an interest rate equal to the
maximum rate per annum prescribed by the banking AND FINANCIAL SERVICES
board pursuant to section fourteen-a of the banking law as of December
nineteenth, nineteen hundred seventy-five, or such higher rate of inter-
est as the secretary of housing and urban development of the United
States shall approve pursuant to an agreement to make interest reduction
payments pursuant to section two hundred thirty-six of the national
housing act, as amended, with respect to such project and that the
rental or carrying charges in such projects shall not be increased as a
result of such participation in a loan or investment and further
provided, that the company shall not seek or accept from the munici-
pality any subsidy, direct or indirect, excluding existing tax
exemption, to offset any increased borrowing costs, if any.
S 234. Subdivision 5 of section 27 of the private housing finance law,
as amended by chapter 341 of the laws of 1976, is amended to read as
follows:
5. Pay interest on its mortgage indebtedness at a rate higher than six
per centum per annum, or at such higher rates as may be approved by the
commissioner, or the supervising agency, as the case may be, but in no
event shall any such rate exceed the rate of interest prescribed by the
banking AND FINANCIAL SERVICES board pursuant to section fourteen-a of
the banking law or, in the case of a mortgage loan insured or held by
the federal government, the rate approved by the federal government;
provided, however, that in the case of a company carrying out a state
urban development corporation project or in the case of an instrument or
instruments securing the residual indebtedness of a company, which
indebtedness is secured by a mortgage on the real property of a project,
such rate shall not exceed the rate of interest prescribed by the bank-
ing AND FINANCIAL SERVICES board pursuant to section fourteen-a of the
banking law or nine per centum per annum, whichever is the higher; and
further provided, however, that, in the case of a company that is a
mortgagor under a mortgage assigned to or acquired by the New York city
housing development corporation pursuant to subdivision twenty-one of
section six hundred fifty-four of this chapter and whose project is
aided by a subsidy from the federal government, such rate shall be the
rate of interest approved by the supervising agency. Notwithstanding
the foregoing provisions of this section, the rate of interest that a
company shall have the power to pay on that portion of its mortgage
indebtedness attributable to an investment or participation in a loan
made pursuant to subdivision one of section fifteen by an organization
or entity mentioned in such subdivision, shall be the rate of interest
approved by the commissioner or the supervising agency, as the case may
be.
A. 9064 107
S 235. Subdivision 2 of section 28 of the private housing finance law,
as amended by chapter 317 of the laws of 1978, is amended to read as
follows:
2. Anything contained in this article to the contrary notwithstanding,
a company which receives a loan from the state, the New York state hous-
ing finance agency or a municipality after July first, nineteen hundred
sixty-nine, or a mutual company which has been duly authorized to issue
income debentures to finance the modernization or replacement of project
improvements or the acquisition and installation of energy saving equip-
ment and which is otherwise authorized to pay dividends upon its shares
or interest upon its income debentures, may, with the approval of the
commissioner or the supervising agency as the case may be, pay such
dividends or interest in excess of six per centum per annum, but in no
event shall any such rate exceed the interest rate prescribed by the
banking AND FINANCIAL SERVICES board pursuant to section fourteen-a of
the banking law, provided, however, if the voting stock of a mutual
company has not been issued and delivered to the stock subscribers, then
the additional authorization of such stock subscribers is required to be
obtained by a majority vote.
S 236. Subdivision 1 of section 30 of the private housing finance law
is amended to read as follows:
1. Notwithstanding any requirement of law to the contrary, every exec-
utor, administrator, trustee, guardian or other person, holding trust
funds or acting in a fiduciary capacity, unless the instrument under
which such fiduciary is acting expressly forbids, the state, its subdi-
visions, municipalities, all other public bodies, all public officers,
persons, partnerships and corporations organized under and governed as
to investments by or pursuant to the provisions of the banking law or
organized under or subject to the provisions of the insurance law, the
superintendent of banks AND FINANCIAL SERVICES or the superintendent of
insurance as conservator, liquidator or rehabilitator of any such
person, partnership or corporation, owning or holding any real property
may grant, sell, lease or otherwise transfer any such real property to a
company and receive and hold any cash, stock, bonds, notes, mortgages,
or other securities or obligations, secured or unsecured, exchanged
therefor by such company and may execute such instruments and do such
acts as may be deemed necessary or desirable by them or it and by the
company in connection with a project or projects. Notwithstanding the
provisions of any general, special or local law, charter or ordinance,
such grant, sale, lease or transfer may be made without public auction
or bidding.
S 237. Subdivision 2 of section 94 of the private housing finance law,
as amended by chapter 23 of the laws of 1976, is amended to read as
follows:
2. Notwithstanding the foregoing provisions of this section, wherever
it shall appear that a government, the New York state housing finance
agency, the New York state urban development corporation, created by the
New York state urban development corporation act, the New York city
housing development corporation, Battery Park city authority, an organ-
ization or entity investing or participating in a loan pursuant to
subdivision one of section fifteen of this chapter, or a corporation
subject to the supervision either of the state insurance department or
the state [banking] department OF BANKING AND FINANCIAL SERVICES, shall
have loaned on a mortgage which is a lien upon any such property, such
government, New York state housing finance agency, New York state urban
development corporation, New York city housing development corporation,
A. 9064 108
Battery Park city authority, an organization or entity investing or
participating in a loan pursuant to said section fifteen or a corpo-
ration subject to such supervision, or any trustee or trustees, or any
successor trustee or trustees, for the benefit of any one or more of the
aforesaid classes shall have all the remedies available to a mortgagee
under the laws of the state of New York, free from any restrictions
contained in this section except that the commissioner shall be made a
party defendant and that the commissioner shall take all steps necessary
to protect the interests of the public and no costs shall be awarded
against him.
S 238. Paragraph (b) of the fifth undesignated paragraph of section
111 of the private housing finance law, as amended by chapter 40 of the
laws of 1969, is amended to read as follows:
(b) the rate prescribed by the banking AND FINANCIAL SERVICES board
pursuant to section fourteen-a of the banking law,
S 239. Subdivision 2 of section 122 of the private housing finance
law, as amended by chapter 804 of the laws of 1981, is amended to read
as follows:
2. If an action be brought to foreclose a mortgage or tax lien upon a
redevelopment project, heretofore or hereafter authorized pursuant to
this article, and the real property constituting the project shall be
acquired at the foreclosure sale or from the mortgagee or lienor that
had acquired the property of such sale, or by a conveyance in lieu of
such sale, by a redevelopment company organized pursuant to this arti-
cle, or by the federal government or an instrumentality thereof, or by a
corporation which is, or by agreement has become subject to the super-
vision of the superintendent of banks AND FINANCIAL SERVICES or the
superintendent of insurance, such successor in interest shall acquire
such project subject to all provisions of the contract regulating such
project and shall be entitled to all of the benefits contained in such
contract. In all other cases of sale at foreclosure or forced sale, the
real property constituting the project or any portion or portions there-
of shall be sold free of all restrictions, except such covenants running
with the land as may be contained in the contract regulating the
project, or in the deed, if any, given by the municipality to the rede-
velopment company affecting all or any portion of the real property upon
which the project is situated, and the tax exemption, if any, thereto-
fore granted to such project pursuant to such contract shall immediately
terminate.
S 240. Section 214 of the private housing finance law is amended to
read as follows:
S 214. Transfer of real property to redevelopment corporation.
Notwithstanding any requirement of law to the contrary or the absence of
direct provision therefor in the instrument under which a fiduciary is
acting, every executor, administrator, trustee, guardian or other
person, holding trust funds or acting in a fiduciary capacity, unless
the instrument under which such fiduciary is acting expressly forbids,
the state, its subdivisions, cities, all other public bodies, all public
officers, corporations organized under or subject to the provisions of
the banking law (including savings banks, savings and loan associations,
trust companies, private bankers and private banking corporations), the
superintendent of banks AND FINANCIAL SERVICES as conservator, liquida-
tor or rehabilitator of any such person, partnership or corporation,
persons, partnerships and corporations organized under or subject to the
provisions of the insurance law, the superintendent of insurance as
conservator, liquidator or rehabilitator of any such person, partnership
A. 9064 109
or corporation, any of which owns or holds any real property within a
development area, may grant, sell, lease or otherwise transfer any such
real property to a redevelopment corporation, and receive and hold any
cash, stocks, income debentures, mortgages, or other securities or obli-
gations, secured or unsecured, exchanged therefor by such redevelopment
corporation, and may execute such instruments and do such acts as may be
deemed necessary or desirable by them or it and by the redevelopment
corporation in connection with the development and the development plan.
S 241. Subdivision 2 of section 218 of the private housing finance
law, as amended by chapter 115 of the laws of 1981, is amended to read
as follows:
2. Certificates, bonds and notes, or part interests therein, or any
part of an issue thereof, which are issued by a redevelopment corpo-
ration and secured by a first mortgage on the real property of the rede-
velopment corporation, or any part thereof, shall be securities in which
all the following persons, partnerships or corporations and public
bodies or public officers may legally invest the funds within their
control, provided that the principal amount thereof shall not exceed the
limits, if any, imposed by law for such investments by the person, part-
nership, corporation, public body or public officer making the same:
every executor, administrator, trustee, guardian, committee, conservator
or other person or corporation holding trust funds or acting in a fidu-
ciary capacity; the state, its subdivisions, cities, all other public
bodies, all public officers; persons, partnerships and corporations
organized under or subject to the provisions of the banking law (includ-
ing savings banks, savings and loan associations, trust companies, bank-
ers and private banking corporations); the superintendent of banks AND
FINANCIAL SERVICES as conservator, liquidator or rehabilitator of any
such person, partnership or corporation; persons, partnerships or corpo-
rations organized under or subject to the provisions of the insurance
law; and the superintendent of insurance as conservator, liquidator or
rehabilitator of any such person, partnership or corporation.
S 242. Subdivision 1 of section 307 of the private housing finance law
is amended to read as follows:
1. The members of such corporation shall consist of such banking
organizations, insurance and surety companies, as may make application
for membership in such corporation, and membership shall become effec-
tive upon the acceptance of such applications by the temporary board of
directors or the permanent board of directors, as the case may be. Each
member shall lend funds to the corporation as and when called upon by it
to do so, pursuant to subdivision two of this section [three hundred
seven], but the total amount on loan by any member at any one time shall
not exceed the following limits to be determined as of the date it
became a member, and such amount shall thereafter be readjusted annually
in the event of any change in the base of the loan limit of such member:
commercial banks, industrial banks and trust companies, one per centum
of capital and surplus; private bankers, one per centum of capital;
savings banks, one per centum of surplus fund; savings and loan associ-
ations, one per centum of surplus; stock insurance companies, one per
centum of capital and surplus; surety and casualty companies, one per
centum of capital and surplus; mutual insurance companies, one per
centum of guaranty funds or of surplus, whichever is applicable; and
comparable limits for other banking, lending and insurance organiza-
tions, as established by the board of directors; provided, however, that
the total amount on loan by any member at any one time shall not exceed
two hundred fifty thousand dollars; provided, however, that in the case
A. 9064 110
of banking organizations, the superintendent of banks AND FINANCIAL
SERVICES, and in the case of insurance and surety companies, the super-
intendent of insurance, may authorize a member to lend to the corpo-
ration an amount in excess of two hundred fifty thousand dollars. All
loan limits shall be established at the thousand dollar nearest to the
amount computed on an actual basis. All calls of funds which members are
committed to lend to such corporation shall be prorated by such corpo-
ration among the members in the same proportion that the maximum loan
limit of each bears to the aggregate loan limits of all members of such
corporation. Upon six months' prior written notice to the board of
directors, a member of such corporation may withdraw from membership,
effective at the end of such six-month period and, after the effective
date of such withdrawal, such member shall be free of obligations here-
under except those accrued or committed by such corporation prior to
such effective date of withdrawal. Notwithstanding the provisions of
any other law, general or special, the notes or other interest-bearing
obligations of such corporation, issued in accordance with and by virtue
of this article and the by-laws of such corporation, shall be legal
investments for the banking, insurance and surety organizations who
become members of such corporations, up to but in no event exceeding the
loan limits established herein.
S 243. Section 311 of the private housing finance law, as amended by
chapter 891 of the laws of 1971, is amended to read as follows:
S 311. Examination. At least once in each calendar year the corpo-
ration shall be examined by either the superintendent of banks AND
FINANCIAL SERVICES or the superintendent of insurance for the purpose of
determining the corporation's net worth and the soundness of its manage-
ment and operating policies. The examination is to be made by the
[superintendant] SUPERINTENDENT of banks AND FINANCIAL SERVICES in
alternate years commencing with the examination for the year ending
October thirty-first, nineteen hundred seventy-one, and by the super-
intendent of insurance in alternate years commencing with the examina-
tion for the year ending October thirty-first, nineteen hundred seven-
ty-two. The corporation shall not, however, be deemed to be a banking
or insurance organization. The corporation shall pay the cost of each
such examination. Copies of each examination report, including the find-
ings, conclusions and recommendations of the examiners, shall be
furnished to the corporation. The corporation shall furnish copies of
each report, including the findings, conclusions and recommendations of
the examiners, to each of the holders of its capital stock and to its
members. Such corporation shall make an annual report of its condition
to the governor, legislature, superintendent of insurance and super-
intendent of banks AND FINANCIAL SERVICES on or before January first of
each year.
S 244. Subdivision 2 of section 407 of the private housing finance
law, as added by chapter 499 of the laws of 1970, is amended to read as
follows:
2. Banking institutions may exercise such power on such conditions as
may be prescribed by the banking AND FINANCIAL SERVICES board of the
state [banking] department OF BANKING AND FINANCIAL SERVICES and insur-
ance companies may exercise such power only to the extent and on such
conditions as may be authorized by the state superintendent of insur-
ance.
S 245. Section 454 of the private housing finance law, as added by
chapter 862 of the laws of 1973, is amended to read as follows:
A. 9064 111
S 454. Servicing of municipal loans by banking institutions. The muni-
cipality is authorized to make provision, either in the loan agreement
or by separate agreement, for the performance by one or more banking
institutions of such services as are generally performed by any such
bank itself owning and holding such a loan and as may be approved by the
banking AND FINANCIAL SERVICES board of the state [banking] department
OF BANKING AND FINANCIAL SERVICES, for which services a bank may make
and collect such service charges as the banking AND FINANCIAL SERVICES
board shall prescribe or approve.
S 246. Subdivision 1 of section 474 of the private housing finance
law, as added by chapter 786 of the laws of 1987, is amended to read as
follows:
1. The agency is authorized to make provision in the note and loan
agreement or by separate agreement for the performance by one or more
banking institutions of such services as are generally performed by any
such bank itself owning and holding such a loan and as may be approved
by the banking AND FINANCIAL SERVICES board of the state [banking]
department OF BANKING AND FINANCIAL SERVICES, for which services a bank
may make and collect such service charges as the banking AND FINANCIAL
SERVICES board shall prescribe or approve.
S 247. Subdivision 7 of section 802 of the private housing finance
law, as added by chapter 822 of the laws of 1976, is amended to read as
follows:
7. Banking organizations may exercise such power on such conditions as
may be prescribed by the banking AND FINANCIAL SERVICES board of the
state [banking] department OF BANKING AND FINANCIAL SERVICES, and insur-
ance companies may exercise such power only to the extent and on such
conditions as may be authorized by the state superintendent of insur-
ance.
S 248. Subdivisions 3, 4 and 5 of section 1303 of the real property
actions and proceedings law, as amended by chapter 472 of the laws of
2008, are amended to read as follows:
3. The notice required by this section shall appear as follows:
Help for Homeowners in Foreclosure
New York State Law requires that we send you this notice about the
foreclosure process. Please read it carefully.
Summons and Complaint
You are in danger of losing your home. If you fail to respond to the
summons and complaint in this foreclosure action, you may lose your
home. Please read the summons and complaint carefully. You should imme-
diately contact an attorney or your local legal aid office to obtain
advice on how to protect yourself.
Sources of Information and Assistance
The State encourages you to become informed about your options in
foreclosure. In addition to seeking assistance from an attorney or legal
aid office, there are government agencies and non-profit organizations
that you may contact for information about possible options, including
trying to work with your lender during this process.
To locate an entity near you, you may call the toll-free helpline
maintained by the New York State [Banking] Department OF BANKING AND
FINANCIAL SERVICES at _____________ (enter number) or visit the Depart-
ment's website at _______________ (enter web address).
Foreclosure rescue scams
Be careful of people who approach you with offers to "save" your home.
There are individuals who watch for notices of foreclosure actions in
order to unfairly profit from a homeowner's distress. You should be
A. 9064 112
extremely careful about any such promises and any suggestions that you
pay them a fee or sign over your deed. State law requires anyone offer-
ing such services for profit to enter into a contract which fully
describes the services they will perform and fees they will charge, and
which prohibits them from taking any money from you until they have
completed all such promised services.
4. The [banking] department OF BANKING AND FINANCIAL SERVICES shall
prescribe the telephone number and web address to be included in the
notice.
5. The [banking] department OF BANKING AND FINANCIAL SERVICES shall
post on its website or otherwise make readily available the name and
contact information of government agencies or non-profit organizations
that may be contacted for information about the foreclosure process,
including maintaining a toll-free helpline to disseminate the informa-
tion required by this section.
S 249. Subdivisions 1 and 2 and paragraph (f) of subdivision 5 of
section 1304 of the real property actions and proceedings law, as added
by chapter 472 of the laws of 2008, are amended to read as follows:
1. Notwithstanding any other provision of law, with regard to a high-
cost home loan, as such term is defined in section six-l of the banking
law, a subprime home loan or a non-traditional home loan, at least nine-
ty days before a lender or a mortgage loan servicer commences legal
action against the borrower, including mortgage foreclosure, the lender
or mortgage loan servicer shall give notice to the borrower in at least
fourteen-point type which shall include the following:
"YOU COULD LOSE YOUR HOME. PLEASE READ THE FOLLOWING
NOTICE CAREFULLY"
"As of ___, your home loan is ___ days in default. Under New York
State Law, we are required to send you this notice to inform you that
you are at risk of losing your home. You can cure this default by making
the payment of _____ dollars by ____.
If you are experiencing financial difficulty, you should know that
there are several options available to you that may help you keep your
home. Attached to this notice is a list of government approved housing
counseling agencies in your area which provide free or very low-cost
counseling. You should consider contacting one of these agencies imme-
diately. These agencies specialize in helping homeowners who are facing
financial difficulty. Housing counselors can help you assess your finan-
cial condition and work with us to explore the possibility of modifying
your loan, establishing an easier payment plan for you, or even working
out a period of loan forbearance. If you wish, you may also contact us
directly at __________ and ask to discuss possible options.
While we cannot assure that a mutually agreeable resolution is possi-
ble, we encourage you to take immediate steps to try to achieve a resol-
ution. The longer you wait, the fewer options you may have.
If this matter is not resolved within 90 days from the date this
notice was mailed, we may commence legal action against you (or sooner
if you cease to live in the dwelling as your primary residence.)
If you need further information, please call the New York State [Bank-
ing Department's] DEPARTMENT OF BANKING AND FINANCIAL SERVICES' toll-
free helpline at 1-877-BANK-NYS (1-877-226-5697) or visit the Depart-
ment's website at http://www.banking.state.ny.us"
2. Such notice shall be sent by the lender or mortgage loan servicer
to the borrower, by registered or certified mail and also by first-class
mail to the last known address of the borrower, and if different, to the
residence which is the subject of the mortgage. Notice is considered
A. 9064 113
given as of the date it is mailed. The notice shall contain a list of at
least five United States department of housing and urban development
approved housing counseling agencies, or other housing counseling agen-
cies as designated by the division of housing and community renewal,
that serve the region where the borrower resides. The list shall include
the counseling agencies' last known addresses and telephone numbers. The
[banking] department OF BANKING AND FINANCIAL SERVICES and/or the divi-
sion of housing and community renewal shall make available a listing, by
region, of such agencies which the lender or mortgage loan servicer may
use to meet the requirements of this section.
(f) For purposes of determining the threshold, the [banking] depart-
ment OF BANKING AND FINANCIAL SERVICES shall publish on its website a
listing of constant maturity yields for U.S. Treasury securities for
each month between January first, two thousand three and September
first, two thousand eight, as published in the Federal Reserve Statis-
tical Release on selected interest rates, commonly referred to as the
H.15 release, in the following maturities, to the extent available in
such release: six month, one year, two year, three year, five year,
seven year, ten year, thirty year.
S 250. Paragraph (d) of subdivision 11 of section 265-a of the real
property law, as added by chapter 308 of the laws of 2006, is amended to
read as follows:
(d) As part of a reconveyance arrangement, an equity purchaser shall
either:
(i) ensure that title to the residence is reconveyed to the equity
seller; or
(ii) make a payment to the equity seller such that the equity seller
has received consideration in an amount of at least eighty-two percent
of the fair market value of the property within one hundred twenty days
of either the eviction or voluntary relinquishment of possession of the
residence by the equity seller. The equity purchaser shall make a
detailed accounting of the basis for the payment amount, or a detailed
accounting of the reasons for failure to make a payment, including
providing written documentation of expenses, within such one hundred
twenty-day period. The accounting shall be on a form prescribed by the
[banking] department OF BANKING AND FINANCIAL SERVICES. For purposes of
this subparagraph, the following applies:
(A) there is a rebuttable presumption that an appraisal by a person
licensed or certified by an agency of the federal government or this
state to appraise real estate establishes the fair market value of the
property;
(B) the time for determining the fair market value amount shall be
determined in the reconveyance arrangement as either at the time of the
execution of the reconveyance arrangement or at resale to a bona fide
purchaser. If the covered contract states that the fair market value
shall be determined at the time of resale, the fair market value shall
be the resale price if it is sold within one hundred twenty days of the
eviction or voluntary relinquishment of the property by the equity sell-
er. If the covered contract states that the fair market value shall be
determined at the time of resale, and the resale is not completed within
one hundred twenty days of the eviction or voluntary relinquishment of
the property by the equity seller, the fair market value shall be deter-
mined by an appraisal conducted within ten days after the end of such
one hundred twenty-day period and payment, if required, shall be made to
the equity seller. If payment is not made to the equity seller at such
time, the fair market value shall be recalculated as the resale price on
A. 9064 114
resale and payment shall be made to the equity seller within fifteen
days of resale. A detailed accounting of the basis for the payment
amount shall be made within fifteen days of resale, including providing
written documentation of expenses. The accounting shall be on a form
prescribed by the [banking] department OF BANKING AND FINANCIAL
SERVICES;
(C) "consideration" shall mean any payment or thing of value provided
to the equity seller, including unpaid lease payments owed by the equity
seller prior to the date of eviction or voluntary relinquishment of the
property, reasonable costs paid to third parties necessary to complete
the reconveyance transaction, payment of money to satisfy a debt or
legal obligation of the equity seller or the reasonable cost of repairs
for damage to the dwelling caused by the equity seller beyond ordinary
wear and tear; but shall not include amounts imputed as any fee paid
directly or indirectly to the equity purchaser, or his or her represen-
tative, incident to a reconveyance arrangement, except for reasonable
costs paid to third parties necessary to complete the reconveyance.
(D) "resale" means a bona fide market sale of the property subject to
the reconveyance arrangement by the equity purchaser to an unaffiliated
third party.
(E) "resale price" means the purchase price of the property on resale.
S 251. Subparagraphs (iii) and (ix) of paragraph (e) of subdivision 1
and subparagraph (viii) of paragraph (a) of subdivision 3 of section
265-b of the real property law, as added by chapter 472 of the laws of
2008, are amended to read as follows:
(iii) a bank, trust company, private banker, bank holding company,
savings bank, savings and loan association, thrift holding company,
credit union or insurance company organized under the laws of this
state, another state or the United States, or a subsidiary or affiliate
of such entity or a foreign banking corporation licensed by the super-
intendent of banks AND FINANCIAL SERVICES or the comptroller of the
currency;
(ix) a person licensed or registered in the state to engage in the
practice of other professions that the superintendent of banks AND
FINANCIAL SERVICES has determined should not be subject to this section.
(viii) contain the following notice, which shall be printed in at
least fourteen point boldface type, completed with the name of the
distressed property consultant, and located in immediate proximity to
the space reserved for the homeowner's signature:
"NOTICE REQUIRED BY NEW YORK LAW
You may cancel this contract, without any penalty or obligation, at
any time before midnight of (fifth business day after
execution).
(Name of Distressed Property Consultant) (the "Consultant") or
anyone working for the Consultant may not take any money from you or ask
you for money until the Consultant has completely finished doing every-
thing this Contract says the Consultant will do.
You should consider consulting an attorney or a government-approved
housing counselor before signing any legal document concerning your
home. It is advisable that you find your own attorney, and not consult
with an attorney recommended or provided to you by the Consultant. A
list of housing counselors may be found on the website of the New York
State [Banking] Department OF BANKING AND FINANCIAL SERVICES,
www.banking.state.ny.us or by calling the [Banking] Department OF BANK-
ING AND FINANCIAL SERVICES toll-free at 1-877-BANK-NYS (1-877-226-5697).
The law requires that this contract contain the entire agreement between
A. 9064 115
you and the Consultant. You should not rely upon any other written or
oral agreement or promise."
The distressed property consultant shall accurately enter the date on
which the right to cancel ends.
S 252. Paragraph (a) of subdivision 2 of section 274-a of the real
property law, as added by chapter 132 of the laws of 1993, is amended to
read as follows:
(a) The mortgagee of an owner-occupied, one-to-six family residential
structure or residential condominium unit, shall deliver within thirty
days, any mortgage related documents to an authorized individual making
a bona fide written demand for such documents. The mortgagee shall not
charge for providing the mortgage-related documents, provided, however,
the mortgagee may charge not more than twenty dollars, or such amount as
may be fixed by the banking AND FINANCIAL SERVICES board, for each
subsequent payoff statement provided under this subdivision. If the
mortgagee fails to deliver the mortgage-related documents, the mortgagee
shall be liable for the actual damages to the mortgagor by reason of
such failure. In computing actual damages the court may consider the
actual rate of interest on the mortgage debt and current prevailing rate
or rates of interest on comparable debts. However, actual damages do not
include pain and suffering, mental or emotional distress or the like.
The replacement costs of a lost abstract of title required to be deliv-
ered hereunder, may be deducted from the amount required to satisfy the
mortgage.
S 253. Section 278 of the real property law, as amended by chapter 115
of the laws of 1981, is amended to read as follows:
S 278. Exchange of mortgage investment. Trustees, executors, adminis-
trators, guardians, committees, conservators, receivers, the town treas-
urer of any town and other persons and corporations holding trust funds,
corporations and private bankers organized under or subject to the
provisions of the banking law, the superintendent of banks AND FINANCIAL
SERVICES as conservator, liquidator or rehabilitator of any such corpo-
ration or private banker organized under and subject to the provisions
of the banking law, persons, partnerships, and corporations organized
under or subject to the provisions of the insurance law, the superinten-
dent of insurance as conservator, liquidator or rehabilitator of any
such person, partnership or corporation organized under or subject to
the provisions of the insurance law, and other domestic corporations,
that shall have made or shall hold an investment, whether with or with-
out a specified ratio of real property security, in a bond secured by
mortgage on real property or share or part thereof, whether guaranteed
or not, may, at any time without an order of the court or other authori-
ty, exchange, prior or subsequent to maturity, such bond and mortgage or
share or part thereof and any rights in respect thereto, for bonds of
Home Owners' Loan Corporation, a corporation created under home owners'
loan act of nineteen hundred and thirty-three, and may hold such bonds
of Home Owners' Loan Corporation as authorized and lawful investments
for any and all purposes, notwithstanding the provisions of any general
or special law of this state inconsistent with the provisions of this
section.
S 254. The opening paragraph of section 278-a of the real property
law, as amended by chapter 115 of the laws of 1981, is amended to read
as follows:
Trustees, executors, administrators, guardians, committees, conserva-
tors and all other persons or corporations holding trust funds or acting
in a fiduciary capacity, corporations and private bankers organized
A. 9064 116
under or subject to the provisions of the banking law, the superinten-
dent of banks AND FINANCIAL SERVICES as conservator, liquidator or reha-
bilitator of any such corporation or private banker organized under and
subject to the provisions of the banking law, persons, partnerships and
corporations organized under or subject to the provisions of the insur-
ance law, the superintendent of insurance as conservator, liquidator or
rehabilitator of any such person, partnership or corporation organized
under or subject to the provisions of the insurance law who or which (1)
own any property on which there is a building defined in the multiple
dwelling law as an old law tenement or who or which hold a mortgage or
other lien on such property, or
S 255. Paragraph (c) of subdivision 3 of section 279 of the real prop-
erty law, as added by chapter 15 of the laws of 1980, is amended to read
as follows:
(c) discloses in advance on a uniform disclosure statement, prescribed
by the banking AND FINANCIAL SERVICES board, the relevant provisions of
the graduated payment mortgage loan including:
(i) a side by side comparison of interest rates and other terms that
differ between a non-graduated payment mortgage loan and a graduated
payment mortgage loan;
(ii) payment schedules for both types of loans and the total payment
in dollars over the full term of each loan;
(iii) a statement prominently displayed that borrowers have the option
to elect a non-graduated payment mortgage loan; and
(iv) a description of the conversion option.
S 256. Paragraphs (f) and (g) of subdivision 1, paragraphs (a), (b),
(e) and (i) of subdivision 2, paragraph (b) of subdivision 3 and subdi-
visions 4, 8 and 9 of section 280 of the real property law, as added by
chapter 613 of the laws of 1993, are amended to read as follows:
(f) Banking AND FINANCIAL SERVICES board. The board established pursu-
ant to section thirteen of the banking law.
(g) Superintendent of banks AND FINANCIAL SERVICES. The position
established pursuant to section twelve of the banking law as the head of
the [banking] department OF BANKING AND FINANCIAL SERVICES and pursuant
to section thirteen of the banking law as the chairman and executive
head of the banking AND FINANCIAL SERVICES board.
(a) the loan to value ratio shall be determined by the banking AND
FINANCIAL SERVICES board; and
(b) subject to such rules or regulations as the banking AND FINANCIAL
SERVICES board shall adopt, any authorized lender or any successor or
assign of such authorized lender which suspends, ceases or makes late
payments to a mortgagor under a reverse mortgage loan shall be subject
to forfeiture (as liquidated damages to such mortgagor and not as a
penalty) of twice the interest which would otherwise have been earned
during the period in which payments were suspended, ceased or made late,
provided that said authorized lender or any successor or assign of such
authorized lender shall have the right to make payments pursuant to said
loan agreement within fifteen days of each payment date, without penal-
ty; and
(e) the authorized lender must deliver to an applicant such disclo-
sures as may be required by the banking AND FINANCIAL SERVICES board
which shall describe the relevant portions of the reverse mortgage being
offered, and shall include but not be limited to the following items:
(i) except for a tenure reverse mortgage loan, a schedule of payments
to and from the mortgagor and the total payments in dollars over the
A. 9064 117
term of the reverse mortgage loan for both the mortgagor and mortgagee
depending on the type of reverse mortgage loan being offered;
(ii) a statement prominently displayed advising applicants to consult
with appropriate authorities regarding tax and estate planning conse-
quences of a reverse mortgage;
(iii) where applicable a description of prepayment and refinancing
features;
(iv) the interest rate and, except for a tenure reverse mortgage loan,
the total interest payable on the loan;
(v) a statement concerning the compliance of the lender with the
criteria established by the banking AND FINANCIAL SERVICES board that an
authorized lender must meet before it may make reverse mortgage loans
pursuant to this section; and
(vi) a statement setting forth those events which would terminate the
reverse mortgage loan; and
(i) subject to such rules or regulations as the banking AND FINANCIAL
SERVICES board may adopt, a reverse mortgage loan shall be made at
either a fixed or variable rate of interest.
(b) provide for the maintenance of an escrow account by the authorized
lender for purposes of payment of real property taxes, insurance on the
property securing the loan, or any other fees and expenses as may be
permitted by banking AND FINANCIAL SERVICES board regulation;
4. The banking AND FINANCIAL SERVICES board shall adopt those rules or
regulations as it considers appropriate to govern reverse mortgage loans
made pursuant to this section. No reverse mortgage loan shall be made
unless it conforms to the requirements of this section and such rules
and regulations as the banking AND FINANCIAL SERVICES board may adopt
except those reverse mortgage loans made pursuant to section two hundred
eighty-a of this article. A reverse mortgage loan made by any authorized
lender, national banking association, federal savings and loan associ-
ation or federal credit union in conformity with applicable federal laws
and regulations specifically regulating reverse mortgage loans shall be
deemed to conform to the requirements of this section unless such
reverse mortgage loan fails to conform to such rules and regulations as
the banking AND FINANCIAL SERVICES board has expressly declared to be
neither preempted by, nor otherwise inconsistent with such federal laws
or regulations. Those rules or regulations shall include, but are not
limited to, the form and contents of any disclosure statement, with the
exception of the counseling statement prepared by the New York state
office for the aging pursuant to paragraph (g) of subdivision two of
this section, that authorized lenders must provide to mortgagors.
8. In a term reverse mortgage loan, the real property securing the
reverse mortgage loan may be reappraised by an independent appraiser at
the end of the loan term. If the value of the real property has appre-
ciated, the term of the reverse mortgage may be extended or refinanced,
however, the total reverse mortgage loan amount may not exceed such
amount or ratio as may be determined by the banking AND FINANCIAL
SERVICES board. The refinancing of the reverse mortgage loan shall be
provided by the original authorized lender or by any other authorized
lender designated by the mortgagee.
9. The principal, including any accrued but unpaid interest, of a
reverse mortgage loan agreement entered into pursuant to this section
may be insured by the mortgagor. If such insurance is purchased from or
otherwise provided by any agency of the state of New York the mortgagor
shall be granted the right, for a term reverse mortgage loan, to refi-
nance or extend the reverse mortgage loan at the end of the term,
A. 9064 118
subject to such rules or regulations as the banking AND FINANCIAL
SERVICES board may adopt. The authorized lender shall have the option to
choose between refinancing or extending the reverse mortgage loan.
Subject to obtaining an adequate increase in the insurance and subject
to such rules and regulations as the banking AND FINANCIAL SERVICES
board may adopt, the total reverse mortgage loan amount shall not exceed
such amount or loan to value ratio as may be determined by the banking
AND FINANCIAL SERVICES board. The refinancing of the reverse mortgage
loan shall be provided by the original authorized lender or by any other
authorized lender designated by the mortgagee.
S 257. Paragraphs (d), (f) and (g) of subdivision 1, subdivisions 2,
4, 8, and 9 of section 280-a of the real property law, as added by chap-
ter 613 of the laws of 1993, are amended to read as follows:
(d) Authorized lender. Any bank, trust company, national banking asso-
ciation, savings bank, savings and loan association, federal savings
bank, federal savings and loan association, credit union, or federal
credit union or any licensed mortgage banker approved for the making of
reverse mortgage loans by the superintendent of banks AND FINANCIAL
SERVICES or any entity exempted from licensing pursuant to section five
hundred ninety of the banking law and approved for the making of reverse
mortgage loans by the superintendent of banks AND FINANCIAL SERVICES.
(f) Banking AND FINANCIAL SERVICES board. The board established pursu-
ant to section thirteen of the banking law.
(g) Superintendent of banks AND FINANCIAL SERVICES. The position
established pursuant to section twelve of the banking law as the head of
the [banking] department OF BANKING AND FINANCIAL SERVICES and pursuant
to section thirteen of the banking law as the chairman and executive
head of the banking AND FINANCIAL SERVICES board.
2. A reverse mortgage loan pursuant to this section shall be subject
to the following:
(a) the mortgagor shall be granted lifetime possession of the subject
premises of the real property which is the security for the reverse
mortgage loan, as long as such real property remains the mortgagors'
principal residence and subject to a limited waiver of the right of
foreclosure as determined by the banking AND FINANCIAL SERVICES board;
and
(b) the term of the reverse mortgage, except for a tenure reverse
mortgage loan, shall be for a period of ten years or less; and
(c) the loan to value ratio shall be determined by the banking AND
FINANCIAL SERVICES board; and
(d) subject to such rules or regulations as the banking AND FINANCIAL
SERVICES board shall adopt, for that period of time commencing at the
end of the loan term or ten years after the reverse mortgage loan
commences, whichever occurs first, and ending at such time as the
reverse mortgage loan is paid in full, the authorized lender, at its
option, may receive no more than twenty percent of the future appreci-
ation of the property securing the reverse mortgage loan as full or
partial consideration for the making of a reverse mortgage loan;
provided, however, that such future appreciation shall be limited by
such rules and regulations as the banking AND FINANCIAL SERVICES board
may adopt or the authorized lender may charge a fixed rate of interest
on the outstanding balance of monies advanced under the reverse mortgage
agreement or any combination thereof. Said reverse mortgage loan shall
not come due and shall be extended until the voluntary relinquishment by
the mortgagors of possessory interest in such real property, the real
property no longer being the mortgagors' principal residence, the death
A. 9064 119
of the mortgagors, or such other events as may be determined by the
banking AND FINANCIAL SERVICES board. Any such appreciation shall not be
considered interest for the purposes of any law regulating the maximum
rate of interest which may be charged, taken or received including
sections 190.40 and 190.42 of the penal law; and
(e) the authorized lender shall maintain an escrow account for the
purposes of paying real property taxes, insurance premiums of the prop-
erty securing the reverse mortgage loan, or for the payment of any other
fees and expenses as may be permitted by banking AND FINANCIAL SERVICES
board regulation; and
(f) subject to such rules or regulations as the banking AND FINANCIAL
SERVICES board may adopt, an authorized lender or any successor or
assign of such authorized lender which [may] suspends, ceases or makes
late payments to a mortgagor under a reverse mortgage loan shall be
subject to forfeiture (as liquidated damages to such mortgagor and not
as a penalty) of twice the interest which would otherwise have been
earned during the period in which payments were suspended, ceased, or
made late, provided that said authorized lender or any successor or
assign of such authorized lender shall have the right to make payments
pursuant to said loan agreement within fifteen days of each payment date
without penalty; and
(g) an authorized lender must deliver to an applicant such disclosures
as may be required by the banking AND FINANCIAL SERVICES board which
shall describe the relevant portions of the reverse mortgage being
offered, and shall include but not be limited to the following items:
(i) except for a tenure reverse mortgage loan, a schedule of payments
to and from the mortgagor and the total payments in dollars over the
term of the reverse mortgage loan for both the mortgagor and mortgagee,
depending on the type of reverse mortgage loan being offered;
(ii) a statement prominently displayed advising applicants to consult
with appropriate authorities regarding tax and estate planning conse-
quences of a reverse mortgage;
(iii) where applicable a description of prepayment and refinancing
features;
(iv) to the extent determinable at or prior to the inception of the
reverse mortgage loan, the interest rate and, except for a tenure
reverse mortgage loan, the total interest payable on the reverse mort-
gage loan;
(v) a statement concerning the compliance of the lender with the
criteria established by the banking AND FINANCIAL SERVICES board that an
authorized lender must meet before it may make reverse mortgage loans
pursuant to this section; and
(vi) a statement setting forth those events which would terminate the
reverse mortgage loan; and
(h) the outstanding balance may be prepaid in full by the mortgagor
without penalty at any time during the reverse mortgage loan term; and
(i) an authorized lender is prohibited from using or attaching any
property or asset of the mortgagor except the real property securing the
reverse mortgage loan in settlement of a reverse mortgage obligation;
and
(j) an authorized lender must deliver to the applicant upon applica-
tion, if available, a statement prepared by the local or county office
for the aging on the advisability and availability of independent coun-
seling and information services. Further, no reverse mortgage commitment
shall be issued by the authorized lender until the applicant presents,
in writing, a statement that the terms of the reverse mortgage loan have
A. 9064 120
been explained to them by an attorney, a housing and urban development
certified counselor or any other counseling service as indicated on the
statement supplied by the county or local office for the aging or a
signed affidavit indicating that the applicant, although made aware of
the importance of counseling and its local availability through the
provision of such information by the authorized lender, chooses not to
utilize any of the aforementioned available services. The form of such
statement and affidavit shall be developed by the New York state office
for the aging; and
(k) a reverse mortgage pursuant to this section shall expressly and
conspicuously bear a legend identifying it as such; and
(l) subject to such rules or regulations as the banking AND FINANCIAL
SERVICES board may adopt, a reverse mortgage loan shall be made at
either a fixed or variable rate of interest; and
(m) in the event that an authorized lender or holder of the reverse
mortgage loan intends to initiate foreclosure proceedings the mortgagor
shall have the right to designate a third party who shall be notified.
In the event that the mortgagor has not designated a third party to
receive such notice of foreclosure, then the authorized lender or the
holder of said reverse mortgage loan shall notify the local or county
office for the aging of its intent to commence foreclosure proceedings.
Such entity shall take appropriate action to protect the interests of
the mortgagor.
4. The banking AND FINANCIAL SERVICES board shall adopt those rules or
regulations as it considers appropriate to govern reverse mortgage loans
made pursuant to this section. No reverse mortgage loan shall be made
unless it conforms to the requirements of this section and such rules
and regulations as the banking AND FINANCIAL SERVICES board may adopt
except those reverse mortgage loans made pursuant to section two hundred
eighty of this article. A reverse mortgage loan made by any authorized
lender, national banking association, federal savings and loan associ-
ation or federal credit union in conformity with applicable federal laws
and regulations specifically regulating reverse mortgage loans shall be
deemed to conform to the requirements of this section unless such
reverse mortgage loan fails to conform to such rules and regulations as
the banking AND FINANCIAL SERVICES board has expressly declared to be
neither preempted by, nor otherwise inconsistent with such federal laws
or regulations. Those rules or regulations shall include, but are not
limited to:
(a) any limitations on the taking of a percentage of the future appre-
ciation of the real property securing the reverse mortgage loan as
consideration for making the reverse mortgage loan;
(b) the execution by an authorized lender of a limited waiver of the
right of foreclosure;
(c) with the exception of the counseling statement prepared by the New
York state office for the aging pursuant to paragraph (j) of subdivision
two of this section, the form and contents of any disclosure statement
that authorized lenders must provide to mortgagors.
8. In a term reverse mortgage loan, the real property securing the
reverse mortgage may be reappraised by an independent appraiser at the
end of the loan term. If the value of the property has appreciated, the
term of the reverse mortgage may be extended or refinanced; however the
total reverse mortgage loan amount may not exceed such amount or loan to
value ratio as may be determined by the banking AND FINANCIAL SERVICES
board. The refinancing of the reverse mortgage loan shall be provided by
A. 9064 121
the original authorized lender or by any other authorized lender desig-
nated by the mortgagee.
9. The principal, including any accrued but unpaid interest, of a
reverse mortgage loan agreement entered into pursuant to this section
must be insured by the mortgagor. If such insurance is purchased from or
otherwise provided by any agency of the state of New York, the mortgagor
shall be granted the right, for a term reverse mortgage loan, to refi-
nance or extend the reverse mortgage loan at the end of the term,
subject to such rules and regulations as the banking AND FINANCIAL
SERVICES board may adopt. The authorized lender shall have the option
to choose between refinancing or extending the reverse mortgage loan.
Subject to obtaining an adequate increase in the insurance and subject
to such rules and regulations as the banking AND FINANCIAL SERVICES
board may adopt, the total reverse mortgage loan amount shall not exceed
such amount or ratio as may be determined by the banking AND FINANCIAL
SERVICES board. The refinancing of the reverse mortgage loan shall be
provided by the original authorized lender or by any other authorized
lender designated by the mortgagee.
S 258. Paragraph (b) of subdivision 1 of section 281 of the real prop-
erty law, as amended by chapter 613 of the laws of 1993, is amended to
read as follows:
(b) Payments made by an authorized lender pursuant to any credit line
reverse mortgage made in accordance with section two hundred eighty-a of
this article during any one year shall be limited to such amount or
ratio as may be determined by the banking AND FINANCIAL SERVICES board.
In the event that a borrower does not take payment under such credit
line during the course of any year then that borrower shall have the
ability to increase the yearly payments by that amount available but not
borrowed during previous years.
S 259. Subdivision 1 and paragraph (b) of subdivision 3 of section
485-f of the real property tax law, as added by chapter 204 of the laws
of 1997, are amended to read as follows:
1. Real property altered, constructed, installed, or improved for use
as a branch of a bank, trust company or national bank in an area desig-
nated as a banking development district by the superintendent of banks
AND FINANCIAL SERVICES pursuant to section ninety-six-d of the banking
law shall be exempt from taxation and special ad valorem levies by any
municipal corporation in which located, for a period of ten years,
provided that the governing board of such municipal corporation, after a
public hearing, adopts a local law, ordinance, or resolution providing
therefor.
(b) No exemption shall be granted pursuant to this section, unless:
(i) the alteration, construction, installation, or improvement
commenced on or after either the date the banking development district
was designated by the superintendent of banks AND FINANCIAL SERVICES
pursuant to section ninety-six-d of the banking law or, if specified in
local law, ordinance, or resolution adopted pursuant to subdivision one
of this section, the effective date of such local law, resolution or
ordinance; and
(ii) the property is located in a banking development district desig-
nated by the superintendent of banks AND FINANCIAL SERVICES pursuant to
section ninety-six-d of the banking law.
S 260. Subdivision 3 of section 953 of the real property tax law, as
added by chapter 440 of the laws of 1989, is amended to read as follows:
3. Every mortgage investing institution shall deposit funds from a
real property tax escrow account of a mortgagor in a banking institution
A. 9064 122
whose deposits are insured by a federal agency or a licensed branch of a
foreign banking corporation whose deposits are insured by a federal
agency. Notwithstanding the foregoing provisions of this subdivision,
the banking AND FINANCIAL SERVICES board shall have the power, by a
three-fifths vote of all its members, to exempt from the requirements of
this subdivision any banking organization which does not receive depos-
its or share accounts from the general public.
S 261. Subdivision 9 of section 90 of chapter 784 of the laws of 1951,
constituting the defense emergency act of 1951, as added by chapter 654
of the laws of 1961, is amended to read as follows:
9. "Superintendent," when used in this article, shall mean the super-
intendent of banks AND FINANCIAL SERVICES.
S 262. Section 94 of chapter 784 of the laws of 1951, constituting the
defense emergency act of 1951, as added by chapter 654 of the laws of
1961, is amended to read as follows:
S 94. The banking AND FINANCIAL SERVICES board. 1. During a period of
acute emergency affecting any area within this state, the superintendent
shall have power to call meetings of the banking AND FINANCIAL SERVICES
board created by section thirteen of the banking law upon such period of
notice as he may deem appropriate in view of the condition of acute
emergency and the urgency of the business to be transacted at such meet-
ing. The superintendent shall give notice of such meeting by making such
reasonable efforts as in his judgment circumstances may permit to notify
each member of the banking AND FINANCIAL SERVICES board of the time and
place of such meeting. Failure of any member of the banking AND FINAN-
CIAL SERVICES board to receive actual notice of such a meeting shall not
affect the power of the members present thereat or the superintendent to
act as prescribed in subdivision two of this section.
2. At any meeting of the banking AND FINANCIAL SERVICES board convened
during a period of acute emergency affecting any area within this state,
the members present, if three or more in number, may, by the vote of a
majority of such members present, take any action which the banking AND
FINANCIAL SERVICES board is empowered to take pursuant to the banking
law. If less than three members shall appear pursuant to notice given
by the superintendent in accordance with subdivision one of this
section, the superintendent may by general or specific regulation,
directive or order, take any action which the banking AND FINANCIAL
SERVICES board is empowered to take pursuant to the banking law.
S 263. Subdivisions 1, 1-a and 3 of section 4 and subdivision 3 of
section 12 of section 1 of chapter 174 of the laws of 1968 constituting
the New York State urban development corporation act, subdivisions 1,
1-a and 3 of section 4 as amended by chapter 280 of the laws of 1984 and
subdivision 3 of section 12 as amended by chapter 508 of the laws of
1985, are amended to read as follows:
(1) There is hereby created the New York state urban development
corporation. The corporation shall be a corporate governmental agency of
the state, constituting a political subdivision and public benefit
corporation. Its membership shall consist of nine directors as follows:
the superintendent of banks AND FINANCIAL SERVICES, the chairman of the
New York state science and technology foundation, and seven directors to
be appointed by the governor with the advice and consent of the senate.
From the seven directors appointed by him OR HER, the governor shall
designate the chairman of the corporation and two others who shall all
serve at the pleasure of the governor. Of the four remaining directors,
one of such directors first appointed by the governor after the effec-
tive date of this subdivision as amended shall serve for a term ending
A. 9064 123
January first next succeeding his OR HER appointment, one of such direc-
tors shall serve for a term ending one year from such date, one of such
directors shall serve for a term ending two years from such date, and
one of such directors shall serve for a term ending three years from
such date. Their successors shall serve for terms of four years each.
Directors shall continue in office until their successors have been
appointed and qualified. In the event of a vacancy occurring in the
office of a director by death, resignation or otherwise, the governor
shall appoint a successor with the advice and consent of the senate to
serve for the balance of the unexpired term. The governor shall appoint
the president of the corporation, with the advice and consent of the
senate, who shall be the chief executive officer of the corporation and
who shall serve at the pleasure of the governor. Such president may be
one of the directors appointed by the governor.
(1-a) The superintendent of banks AND FINANCIAL SERVICES and the
chairman of the New York state science and technology foundation each
may designate a person from his OR HER department to represent him OR
HER at all meetings of the corporation from which such director may be
absent. Any representative so designated shall have the power to attend
and to vote at any meeting of the corporation from which the director so
designating him OR HER is absent, with the same force and effect as if
the director designating him OR HER were present and voting. Such
designation shall be by written notice filed with the [chairman] CHAIR
of the corporation by the director making the designation. The desig-
nation of each such person shall continue until revoked at any time by
written notice to the [chairman] CHAIR by the director making the desig-
nation. Such designation shall not limit the power of the director
making the designation to attend and vote in person at any meeting of
the corporation.
(3) Such directors other than the superintendent of banks AND FINAN-
CIAL SERVICES, the chairman of the New York state science and technology
foundation, and any director who serves as president of the corporation
may engage in private employment, or in a profession or business. The
corporation, its directors, officers and employees shall be subject to
the provisions of sections seventy-three and seventy-four of the public
officers law.
(3) Notwithstanding any provision of this act to the contrary, the
superintendent of banks AND FINANCIAL SERVICES and the chairman of the
New York state science and technology foundation shall not serve as a
director, trustee or member of any such subsidiary corporation.
S 264. Section 14 of the state finance law is amended to read as
follows:
S 14. Departmental statements. In addition to the annual department
reports prescribed by law, the head of each department of the state, on
or before the fifteenth day of October in each year, shall submit to the
governor a statement of the sources, amounts and disposition of all
money received by such department, its divisions, bureaus or officers
for the preceding fiscal year other than money appropriated for such
department by the legislature or money which was paid by such department
into the treasury. Such statement shall include a description of the
nature and the amount of each fund, if any, then under the supervision
or control of such department or the head thereof or under the super-
vision or control of any division, bureau, commission, board or other
organization therein or under the supervision or control of the head or
any other officer of such division, bureau, commission, board or organ-
ization, which was derived from any source whether or not deposited in
A. 9064 124
the treasury, a citation of the statute authorizing the creation or
establishment of each such fund and the nature and amount of any
payments made therefrom during the preceding fiscal year. The director
of the budget in the executive department shall make rules, which shall
be approved by the governor, regulating the form and contents of such
statements. Copies of such statements shall be simultaneously furnished
to the senate finance committee and the assembly ways and means commit-
tee for their information.
The governor, in such form and with such explanation as he may desire,
shall transmit to the legislature, with the annual budget, a recapitu-
lation or summary of the information contained in such statements
arranged under appropriate headings for each department. The provisions
of this section shall not apply to any funds received by the superinten-
dent of banks AND FINANCIAL SERVICES or the superintendent of insurance
in a fiduciary capacity or to the state teachers' retirement fund, or
any state employees' retirement and pension fund, but such exemption
from the application of this section shall not affect any other
provision of law requiring a report or statement of such funds.
S 265. The closing paragraph of section 106 of the state finance law,
as amended by chapter 583 of the laws of 1941, is amended to read as
follows:
This section shall not apply to any funds held by the superintendent
of banks AND FINANCIAL SERVICES or the superintendent of insurance in a
fiduciary capacity.
S 266. The section heading, subdivision 1 and subdivision 4 of section
215 of the state finance law, the section heading and subdivision 4 as
added by chapter 705 of the laws of 1993 and subdivision 1 as amended by
chapter 291 of the laws of 2004, are amended to read as follows:
Responsibilities of commissioner of economic development, comptroller,
commissioner of taxation and finance and superintendent of banks AND
FINANCIAL SERVICES. 1. The commissioner of economic development shall
administer the program pursuant to section two hundred nineteen of this
article, including all decisions with respect to the application and use
of the program for eligible projects; market and promote the program
pursuant to section two hundred twenty-three of this article; after
consulting with the comptroller, the commissioner of taxation and
finance and the superintendent of banks AND FINANCIAL SERVICES, issue
rules and regulations for the operation of the program pursuant to
section two hundred twenty-four of this article.
4. The superintendent of banks AND FINANCIAL SERVICES' responsibil-
ities for the program shall be limited to marketing and promoting the
program pursuant to section two hundred twenty-three of this article.
S 267. Section 224 of the state finance law, as added by chapter 705
of the laws of 1993, is amended to read as follows:
S 224. Rules and regulations. The commissioner of economic development
shall, in consultation with the comptroller, the commissioner of taxa-
tion and finance and the superintendent of banks AND FINANCIAL SERVICES,
promulgate rules and regulations necessary and reasonable for the opera-
tion of the program.
S 268. Subdivision 1 of section 218 of the labor law, as amended by
chapter 190 of the laws of 1990, and the opening paragraph as amended by
chapter 304 of the laws of 2007, is amended to read as follows:
1. If the commissioner determines that an employer has violated a
provision of article six (payment of wages), article nineteen (minimum
wage act), article nineteen-A, section two hundred twelve-a, section two
hundred twelve-b, section one hundred sixty-one (day of rest) or section
A. 9064 125
one hundred sixty-two (meal periods) of this chapter, or a rule or regu-
lation promulgated thereunder, the commissioner shall issue to the
employer an order directing compliance therewith, which shall describe
particularly the nature of the alleged violation. In addition to direct-
ing payment of wages, benefits or wage supplements found to be due, such
order, if issued to an employer who previously has been found in
violation of those provisions, rules or regulations, or to an employer
whose violation is willful or egregious, shall direct payment to the
commissioner of an additional sum as a civil penalty in an amount equal
to double the total amount found to be due. In no case shall the order
direct payment of an amount less than the total wages, benefits or wage
supplements found by the commissioner to be due, plus the appropriate
civil penalty. Where the violation is for a reason other than the
employer's failure to pay wages, benefits or wage supplements found to
be due, the order shall direct payment to the commissioner of a civil
penalty in an amount not to exceed one thousand dollars for a first
violation, two thousand dollars for a second violation or three thousand
dollars for a third or subsequent violation. In assessing the amount of
the penalty, the commissioner shall give due consideration to the size
of the employer's business, the good faith of the employer, the gravity
of the violation, the history of previous violations and, in the case of
wages, benefits or supplements violations, the failure to comply with
recordkeeping or other non-wage requirements.
Where there is a violation of section one hundred ninety-eight-b of
this chapter, the order shall direct payment back to the employee of the
amount of wages, supplements or other thing of value unlawfully received
plus interest at the rate of interest then in effect, as prescribed by
the superintendent of banks AND FINANCIAL SERVICES pursuant to section
fourteen-a of the banking law per annum from the date of the payback,
return, donation or contribution to the date of payment, and shall
include such other relief as may be appropriate, including rehiring or
reinstatement of the employee to his or her former position, back wages,
and restoration of seniority. In addition, the commissioner shall order
payment of a civil penalty of at least twenty-five hundred dollars but
not more than five thousand dollars per violation. In assessing the
amount of the penalty, the commissioner shall give due consideration to
the size of the employer's business, the good faith of the employer, the
gravity of the violation, the history of previous violations.
S 268-a. Subdivision 1 of section 219 of the labor law, as amended by
chapter 417 of the laws of 1987, is amended to read as follows:
1. If the commissioner determines that an employer has failed to pay
wages, benefits or wage supplements required pursuant to article six
(payment of wages), article nineteen (minimum wage act) or article nine-
teen-a of this chapter, or a rule or regulation promulgated thereunder,
the commissioner shall issue to the employer an order directing compli-
ance therewith, which shall describe particularly the nature of the
alleged violation. Such order shall direct payment of wages or supple-
ments found to be due, including interest at the rate of interest then
in effect as prescribed by the superintendent of banks AND FINANCIAL
SERVICES pursuant to section fourteen-a of the banking law per annum
from the date of the underpayment to the date of the payment.
S 269. Subdivision 8 of section 220 of the labor law, as amended by
chapter 7 of the laws of 2008, is amended to read as follows:
8. Hearings. Before issuing an order or determination as provided in
subdivision seven of this section, the fiscal officer shall order a
hearing thereon at a time and place to be specified, and shall give
A. 9064 126
notice thereof, together with a copy of such complaint or the purpose
thereof, or a statement of the facts disclosed upon such investigation,
which notice shall be served personally or by mail on any person
affected thereby; such person shall have an opportunity to be heard in
respect to the matters complained of at the time and place specified in
such notice, which time shall be not less than five days from the
service of the notice personally or by mail. The fiscal officer in such
hearing shall be deemed to be acting in a judicial capacity, and shall
have the right to issue subpoenas, administer oaths and examine
witnesses. The enforcement of a subpoena issued under this section shall
be regulated by the civil practice law and rules. Such hearing shall be
expeditiously conducted and upon such hearing the fiscal officer shall
determine the issues raised thereon and shall make and file an order in
the office of the fiscal officer stating such determination, and forth-
with serve a copy of such order, with a notice of the filing thereof,
upon the parties to such proceeding, personally or by mail. Such order
shall direct payment of wages or supplements found to be due, including
interest at the rate of interest then in effect as prescribed by the
superintendent of banks AND FINANCIAL SERVICES pursuant to section four-
teen-a of the banking law per annum from the date of the underpayment to
the date of the payment, provided, however, that such interest rate
shall not apply to subdivision eight-c of this section.
In addition to directing payment of wages or supplements including
interest found to be due, such order may direct payment of a further sum
as a civil penalty in an amount not exceeding twenty-five percent of the
total amount found to be due. In assessing the amount of the penalty,
due consideration shall be given to the size of the employer's business,
the good faith of the employer, the gravity of the violation, the histo-
ry of previous violations and the failure to comply with recordkeeping
or other non-wage requirements. Where the fiscal officer is the commis-
sioner, the penalty shall be paid to the commissioner for deposit in the
state treasury. Where the fiscal officer is a city comptroller or other
analogous officer, the penalty shall be paid to said officer for deposit
in the city treasury.
Upon the entry of such order any party aggrieved thereby may commence
a proceeding for the review thereof pursuant to article seventy-eight of
the civil practice law and rules within thirty days from the notice of
the filing of the said order in the office of the fiscal officer. Said
proceeding shall be commenced directly in the appellate division of the
supreme court. If such order is not reviewed, or is so reviewed and the
final decision is in favor of the complainant and the order involves or
relates to the rate of wages paid or the supplements provided on such
public work, the complainant or any other person affected may within six
months after the service of notice of the filing of said order, or the
notice of entry of said final decision on review, institute an action
against the person found violating this act for the recovery of the
difference between the sum actually paid or provided and the amount
which should have been paid or provided, together with interest at the
rate of interest provided herein, as determined by said order or deci-
sion, as the case may be, from and after the date of the filing of said
verified complaint, with the fiscal officer or of the filing of the
fiscal officer's report of investigation made on his own initiative.
Provided that no proceeding for judicial review as provided herein shall
then be pending and the time for initiation of such proceeding shall
have expired, the fiscal officer may file with the county clerk of the
county where the employer resides or has a place of business the order
A. 9064 127
of the fiscal officer containing the amount found to be due. The filing
of such order shall have the full force and effect of a judgment duly
docketed in the office of such clerk. The order may be enforced by and
in the name of the fiscal officer in the same manner, and with like
effect, as that prescribed by the civil practice law and rules for the
enforcement of a money judgment.
S 270. Paragraphs c and f of subdivision 2 of section 220-b of the
labor law, as amended by chapter 304 of the laws of 1989, are amended to
read as follows:
c. The fiscal officer shall cause an investigation to be made to
determine whether any amounts are due to the laborers, workmen or
mechanics, or on their respective behalves, on such public improvement,
for labor performed after the commencement of the three-year period
immediately preceding the filing of the complaint or the commencement of
the investigation on his own initiative, as the case may be, and shall
order a hearing thereon at a time and place to be specified and shall
give notice thereof, together with a copy of such complaint, or a state-
ment of the facts disclosed upon such investigation, which notice shall
be served personally or by mail on all interested persons, including the
person complained against and upon the financial officer of the civil
division interested; such person complained against shall have an oppor-
tunity to be heard in respect to the matters complained of, at the time
and place specified in such notice, which time shall be not less than
five days from the service of said notice. The fiscal officer in such an
investigation shall be deemed to be acting in a judicial capacity and
shall have the rights to issue subpoenas, administer oaths and examine
witnesses. The enforcement of a subpoena issued under this section shall
be regulated by the civil practice law and rules. Such investigation and
hearing shall be expeditiously conducted, and upon such hearing and
investigation, the fiscal officer shall determine the issues raised
thereon and shall make and file an order in his office stating such
determination and forthwith serve a copy of such order, either
personally or by mail, together with notice of filing, upon the finan-
cial officer of the civil division interested, and the parties to such
proceedings and, if the fiscal officer be the comptroller or other anal-
ogous officer of a city, upon the commissioner. Such order shall direct
payment of wages or supplements found to be due, including interest at
the rate of interest then in effect as prescribed by the superintendent
of banks AND FINANCIAL SERVICES pursuant to section fourteen-a of the
banking law per annum from the date of the underpayment to the date of
the payment.
f. If the financial officer of the civil division interested fails to
pay to the claimant the amount of the claim as determined by the fiscal
officer within ten days after the expiration of the contractor's time to
commence a proceeding for review of the fiscal officer's order or, if
such a proceeding has been commenced, within ten days after entry and
service of a court order confirming the fiscal officer's order, the
civil division interested shall pay to the claimant interest on the
claim at the rate of interest then in effect as prescribed by the super-
intendent of banks AND FINANCIAL SERVICES pursuant to section fourteen-a
of the banking law from the date the financial officer was required to
pay the claim as provided herein to the date of payment; provided,
however, this paragraph shall not apply if the failure of the financial
officer of the civil division interested to pay the amount of the claim
is pursuant to court order.
A. 9064 128
S 271. Paragraph c of subdivision 5 of section 235 of the labor law,
as amended by chapter 547 of the laws of 1998, is amended to read as
follows:
c. If the order directs the payment to specified employees of wages
found to be due and unpaid, including interest at a rate not less than
six per centum per year and not more than the rate of interest then in
effect as prescribed by the superintendent of banks AND FINANCIAL
SERVICES pursuant to section fourteen-a of the banking law per annum
from the time such wages should have been paid, the financial officer of
such public agency shall, upon the service to him of such order, pay to
such employees from the trust money withheld the amounts specified in
such order and shall pay the civil penalty as provided herein, provided
no review proceeding pursuant to the provisions of article seventy-eight
of the civil practice law and rules is commenced within thirty days of
the date said order was filed in the office of the fiscal officer. If
such review is timely commenced, the money withheld shall remain in
trust pending final disposition of the review proceeding. In determining
the rate of interest to be imposed the fiscal officer shall consider the
size of the employer's business, the good faith of the employer, the
gravity of the violation, the history of previous violations of the
employer, successor or substantially-owned affiliated entity or any
successor of the contractor or subcontractor, any officer of the
contractor or subcontractor who knowingly participated in the violation
of this article, and any of the partners if the contractor or subcon-
tractor is a partnership or any of the five largest shareholders of the
contractor or subcontractor, as determined by the fiscal officer, and
the failure to comply with recordkeeping or other non-wage requirements.
S 272. Paragraphs (a), (b) and (c) of subdivision 39 of section 100 of
the economic development law, as added by chapter 1008 of the laws of
1984, are amended to read as follows:
(a) To assist the superintendent of banks AND FINANCIAL SERVICES to
solicit, evaluate, develop and provide information to banking corpo-
rations, principally engaged in doing business within the state, about
various methods used by banking corporations to provide financing for
businesses engaged in the export of products and services to foreign
countries.
(b) The commissioner shall evaluate such information as may be avail-
able to the department and help identify local regional banking corpo-
rations currently serving the state exporters and shall assist the
superintendent of banks AND FINANCIAL SERVICES in determining the status
of local and regional banking corporations in export financing so that
in cooperation with the banking department, a program shall be developed
by which new banking corporations may be brought into the export financ-
ing sector and potential and current state exporters may be given a
wider choice of available financing sources for medium and small export
transactions.
(c) The commissioner shall further inform the superintendent of banks
AND FINANCIAL SERVICES of any changes which the department projects may
occur in the international business community about which the commis-
sioner may become aware so that the superintendent of banks AND FINAN-
CIAL SERVICES may provide the most timely and accurate information to
the state banking community.
S 273. Subdivision 8 of section 262 of the economic development law,
as added by chapter 615 of the laws of 1987 and such section as renum-
bered by chapter 300 of the laws of 1988, is amended to read as follows:
A. 9064 129
8. Implementation. In implementing the program, the department shall
promulgate rules and regulations formulated after consultation with the
department of environmental conservation, the energy office and the
superintendent of banks AND FINANCIAL SERVICES. Such rules and regu-
lations may include, but not be limited to, requirements for applica-
tions and supporting materials and criteria for the selection of cooper-
ating financial institutions.
S 274. Subdivisions 1 and 1-a of section 1802 of the public authori-
ties law, as amended by chapter 118 of the laws of 1990, are amended to
read as follows:
1. There is hereby created the "New York job development authority."
The authority shall be a body corporate and politic constituting a
public benefit corporation. Its members shall consist of the commission-
er of economic development, the commissioner of labor, the commissioner
of agriculture and markets, and the superintendent of banks AND FINAN-
CIAL SERVICES, serving ex officio, and seven members to be appointed by
the governor with the advice and consent of the senate. Each member
appointed by the governor shall be a citizen of the United States and a
resident of the state.
1-a. The commissioner of economic development, the commissioner of
labor, the commissioner of agriculture and markets, and the superinten-
dent of banks AND FINANCIAL SERVICES each may designate a person from
his department to represent him at all meetings of the authority from
which such member may be absent. Any representative so designated shall
have the power to attend and to vote at any meeting of the authority
from which the member so designating him is absent, with the same force
and effect as if the member designating him were present and voting.
Such designation shall be by written notice to the chairman by the
member making the designation. Such designation shall not limit the
power of the member making the designation to attend and vote in person
at any meeting of the authority.
S 275. Paragraph c of subdivision 2 of section 10 of the general
municipal law, as amended by chapter 623 of the laws of 1998, is amended
to read as follows:
c. The governing board of a local government, in which a banking
development district has been designated by the superintendent of banks
AND FINANCIAL SERVICES pursuant to section ninety-six-d of the banking
law, may designate a bank, trust company or national bank located in
such district for the deposit of public funds, the disposition of which
is not otherwise provided for by law, received by the chief fiscal offi-
cer or other officer authorized by law to make such deposits. Such
designation shall be by resolution of the governing board or, in the
case of a city, such other body as may be authorized or required by law
to designate depositories. Such resolution shall specify the maximum
amount which may be kept on deposit at any time with such bank, trust
company or national bank located in such district. Subject to an agree-
ment between such governing board and such banking institution, public
funds deposited in such banking institution may earn a fixed interest
rate which is at or below such banking institution's posted two year
certificate of deposit rate. In those instances where there is such an
agreement, its terms and conditions shall also be specified in the
resolution. Any such designation, amount, or agreement provisions may
be changed at any time by further resolution.
S 276. Subdivision 4 of section 11 of the general municipal law, as
amended by chapter 708 of the laws of 1992, is amended to read as
follows:
A. 9064 130
4. Notwithstanding any other provision of law, the governing board of
a local government may authorize the aforementioned officers to turn
over the physical custody and safekeeping of the evidences of the
investments made pursuant to this section to (a) any bank or trust
company incorporated in this state, or (b) any national bank located in
this state, or (c) any private banker duly authorized by the superinten-
dent of banks AND FINANCIAL SERVICES of this state to engage in business
here. All such private bankers shall, as private bankers, maintain a
permanent capital of not less than one million dollars in this state.
The said officers may direct such bank, trust company or private banker
to register and hold any such evidences of investments in its custody,
in the name of its nominee. Such officers may deposit or authorize such
bank, trust company or private banker, to deposit, or arrange for the
deposit of any such evidences of investments with a federal reserve bank
or other book-entry transfer system operated by a federally regulated
entity to be credited to an account as to which the ownership of, and
other interests in, such evidences of investments may be transferred by
entries on the books of such federal reserve bank or other book-entry
transfer system operated by a federally regulated entity without phys-
ical delivery of any such evidences of investments. The records of any
such bank, trust company or private banker shall show, at all times, the
ownership of such evidences of investments, and they shall, when held in
the possession of such bank, trust company or private banker be, at all
times, kept separate from the assets of such bank, trust company or
private banker. All evidences of investments delivered to a bank, trust
company, or private banker pursuant to this subdivision shall be held by
such bank, trust company or private banker pursuant to a written custo-
dial agreement as set forth in paragraph a of subdivision three of
section ten of this article. When any such evidences of investments are
so registered in the name of a nominee, such bank, trust company or
private banker shall be absolutely liable for any loss occasioned by the
acts of such nominee with respect to such evidences of investments.
S 277. Subdivision 18 of section 305 of the education law, as added by
chapter 1008 of the laws of 1984, is amended to read as follows:
18. The commissioner shall cooperate with the superintendent of banks
AND FINANCIAL SERVICES and the commissioner of commerce in the creation
of educational programs to be offered in conjunction with and in support
of the export finance awareness program of the department of banks and
the department of commerce. Such assistance may include, but shall not
be limited to, the development of specific training programs, identifi-
cation of potential training needs, provision of facilities for training
and the identification of potential trainees. Further activity by the
commissioner shall require that a designee of the commissioner attend
each and every export awareness advisory board meeting, formally report
to the commissioner, and have the commissioner contact the superinten-
dent of banks AND FINANCIAL SERVICES and the commissioner of commerce so
that the superintendent of banks AND FINANCIAL SERVICES may coordinate
the activities of each of these components in the area of training.
S 278. Section 658 of the education law, as added by chapter 942 of
the laws of 1974, is amended to read as follows:
S 658. Supervision by the superintendent of banks AND FINANCIAL
SERVICES. The corporation in its administration of student loan
programs shall be subject to the supervision and examination of the
superintendent of banks AND FINANCIAL SERVICES, but shall not be deemed
to be a banking organization nor required to pay a fee for any such
supervision or examination.
A. 9064 131
S 279. Subdivision 7 of section 695-d of the education law, as added
by chapter 546 of the laws of 1997, is amended to read as follows:
7. During the term of any contract with a program manager, the comp-
troller shall conduct an examination of such manager and its handling of
accounts. Such examination shall be conducted at least biennially if
such manager is not otherwise subject to periodic examination by the
superintendent of banks AND FINANCIAL SERVICES, the federal deposit
insurance corporation or other similar entity.
S 280. Subdivision 1 of section 178-a of the retirement and social
security law, as amended by chapter 674 of the laws of 1992, is amended
to read as follows:
1. Notwithstanding any other provision of law, including the
provisions of the administrative code of the city of New York and the
education law, the public officer or officers designated by law as the
custodian of a fund are authorized, in accordance with the provisions of
this section, to turn over the physical custody and safekeeping of any
stock or other securities, in registered or bearer form, owned by such
fund to (a) any state bank or trust company located in this state, or
(b) any national bank located in this state, or (c) any private banker
duly authorized by the superintendent of banks AND FINANCIAL SERVICES of
this state to engage in business here. All such private bankers shall,
as private bankers, maintain a permanent capital of not less than one
million dollars in this state. Transfers of stocks or securities must
receive the prior consent of the trustees of such fund, under such terms
and conditions as they may specify. The custodian of such fund may
direct such bank, trust company or private banker to register and hold
any such stock or securities in its custody, in the name of its nominee.
The custodian of such fund may also authorize such bank, trust company
or private banker to deposit, or arrange for the deposit, of such stock
or securities in a clearing corporation (as defined in article eight of
the uniform commercial code). In addition, the custodian of such fund
may deposit, or authorize such bank, trust company or private banker, to
deposit, or arrange for the deposit of any of such securities the prin-
cipal and interest of which the United States, or any department, agency
or instrumentality thereof has agreed to pay, or has guaranteed payment,
with a federal reserve bank to be credited to an account as to which the
ownership of, and other interests in, such securities may be transferred
by entries on the books of such federal reserve bank without physical
delivery of any securities. The records of such bank, trust company or
private banker shall show, at all times, the ownership of such stock and
securities, and they shall, when held in the possession of such bank,
trust company or private banker be, at all times, kept separate from the
assets of such bank, trust company or private banker. When any such
stock or securities are so registered in the name of a nominee, such
bank, trust company or private banker shall be absolutely liable for any
loss occasioned by the acts of such nominee with respect to such stock
or securities.
S 281. Subparagraphs 9 and 10 of paragraph (b) of section 11-1.1 of
the estates, powers and trusts law, as amended by chapter 501 of the
laws of 1970, are amended to read as follows:
(9) To employ any bank or trust company incorporated in this state,
any national bank located in this state or any private banker duly
authorized by the superintendent of banks AND FINANCIAL SERVICES of this
state to engage in business here (who, as private banker, maintains a
permanent capital of not less than one million dollars) as custodian of
any stock or other securities held as a fiduciary, and the cost thereof,
A. 9064 132
except in the case of a corporate fiduciary, shall be a charge upon the
estate or trust. The records of such bank, trust company or private
banker shall at all times show the ownership of such stock or other
securities. Such stock or other securities shall at all times be kept
separate from the assets of such bank, trust company or private banker
and may be kept by such bank, trust company or private banker
(A) in a manner such that all certificates representing the securities
from time to time constituting the assets of a particular estate, trust
or other fiduciary account are held separate from those of all other
estates, trusts or accounts; or
(B) in a manner such that, without certification as to ownership
attached, certificates representing securities of the same class of the
same issuer and from time to time constituting assets of particular
estates, trusts or other fiduciary accounts are held in bulk, including,
to the extent feasible, the merging of certificates of small denomi-
nation into one or more certificates of large denomination, provided
that a bank, trust company or private banker, when operating under the
method of safekeeping security certificates described in this subpara-
graph (B), shall be subject to such rules and regulations as, in the
case of state chartered institutions, the state banking AND FINANCIAL
SERVICES board and, in the case of national banking associations, the
comptroller of the currency may from time to time issue. Such bank,
trust company or private banker shall, on demand by the fiduciary,
certify in writing the securities held by it for such estate, trust or
fiduciary account.
(10) To cause any stock or other securities (hereinafter referred to
as "securities") held by any bank or trust company, when acting as fidu-
ciary, whether alone or jointly with an individual, with the consent of
the individual fiduciary, if any (who is hereby authorized to give such
consent), to be registered and held in the name of a nominee of such
bank or trust company without disclosure of the fiduciary relationship;
and, in the case of an individual acting as fiduciary, to direct any
bank or trust company incorporated under the laws of this state, any
national bank located in this state or any private banker duly author-
ized by the superintendent of banks AND FINANCIAL SERVICES of this state
to engage in business here (who, as private banker, maintains a perma-
nent capital of not less than one million dollars) to register and hold
any securities deposited with such bank, trust company or private banker
(hereinafter referred to as "bank") in the name of a nominee of such
bank. The bank shall not redeliver such securities to the individual
fiduciary, who authorized their registration in the name of a nominee of
the bank, without first registering the securities in the name of the
individual fiduciary, as such. But, any sale of such securities by the
bank at the direction of the individual fiduciary shall not be treated
as a redelivery. The bank may make any disposition of such securities
which is authorized or directed by an order or decree of the court
having jurisdiction of the estate or trust. Any such bank shall be abso-
lutely liable for any loss occasioned by the acts of its nominee with
respect to the securities so registered. The records of the bank shall
at all times show the ownership of any such securities and of those held
in bearer form. Such securities and those held in bearer form shall at
all times be kept separate from the assets of the bank and may be kept
by such bank
(A) in a manner such that all certificates representing the securities
from time to time constituting the assets of a particular estate, trust
A. 9064 133
or other fiduciary account are held separate from those of all other
estates, trusts or accounts; or
(B) in a manner such that, without certification as to ownership
attached, certificates representing securities of the same class of the
same issuer and from time to time constituting assets of particular
estates, trusts or other fiduciary accounts are held in bulk, including,
to the extent feasible, the merging of certificates of small denomi-
nation into one or more certificates of large denomination, provided
that a bank, when operating under the method of safekeeping security
certificates described in this subparagraph (B), shall be subject to
such rules and regulations as, in the case of state chartered insti-
tutions, the state banking AND FINANCIAL SERVICES board and, in the case
of national banking associations, the comptroller of the currency may
from time to time issue. Such bank or trust company shall, on demand by
any party to an accounting by such bank or trust company as fiduciary or
on demand by the attorney for such party, certify in writing the securi-
ties held by such bank or trust company as such fiduciary.
S 282. Paragraph (a) and subparagraph (B) of paragraph (c) of section
11-1.6 of the estates, powers and trusts law, such section as renumbered
by chapter 686 of the laws of 1967 and paragraph (c) as amended by chap-
ter 501 of the laws of 1970, are amended to read as follows:
(a) Every fiduciary shall keep property received as fiduciary separate
from his OR HER individual property. He OR SHE shall not invest or
deposit such property with any corporation or other person doing busi-
ness under the banking law, or with any other person or institution, in
his OR HER own name, but all transactions by him OR HER affecting such
property shall be in his name as fiduciary; provided, however, that any
bank or trust company, when acting as fiduciary, whether alone or joint-
ly with an individual, may with the consent of the individual fiduciary,
if any (who is hereby authorized to give such consent), register and
hold stock or other securities (referred to in this section as "securi-
ties") in the name of the nominee of such bank or trust company; and
provided, further, that any individual acting as fiduciary is authorized
to direct any bank or trust company incorporated under the laws of this
state, any national bank located in this state or any private banker
duly authorized by the superintendent of banks AND FINANCIAL SERVICES of
this state to engage in business here (who, as private banker, maintains
a permanent capital of not less than one million dollars) to register
and hold any securities in the name of a nominee of such bank, trust
company or private banker (referred to in this section as "bank"). Such
bank shall not redeliver such securities to the individual fiduciary,
who authorized their registration in the name of a nominee of the bank,
without first registering the securities in the name of the individual
fiduciary, as such. But, any sale of such securities by the bank at the
direction of the individual fiduciary shall not be treated as a redeliv-
ery. The bank may make any disposition of such securities which is
authorized or directed by an order or decree of the court having juris-
diction of the estate or trust.
(B) in a manner such that, without certification as to ownership
attached, certificates representing securities of the same class of the
same issuer and from time to time constituting assets of particular
estates, trusts or other fiduciary accounts are held in bulk, including,
to the extent feasible, the merging of certificates of small denomi-
nation into one or more certificates of large denomination, provided
that a bank, when operating under the method of safekeeping security
certificates described in this subparagraph (B), shall be subject to
A. 9064 134
such rules and regulations as, in the case of state chartered insti-
tutions, the state banking AND FINANCIAL SERVICES board and, in the case
of national banking associations, the comptroller of the currency may
from time to time issue. Such banks shall, on demand by the fiduciary,
certify in writing the securities held for such fiduciary.
S 283. Paragraph (a) of section 11-1.8 of the estates, powers and
trusts law, as amended by chapter 498 of the laws of 1980, is amended to
read as follows:
(a) Notwithstanding any other provision of law, any bank or trust
company, when acting as fiduciary and any bank, trust company or private
banker, when holding securities as custodian for a fiduciary pursuant to
S 11-1.1(b) (9), is authorized to deposit, or arrange through a
subcustodian or otherwise for the deposit, with the federal reserve bank
in its district of any securities the principal and interest of which
the United States or any department, agency or instrumentality thereof
has agreed to pay, or has guaranteed payment, to be credited to one or
more accounts on the books of said federal reserve bank in the name of
such bank, trust company or private banker, to be designated fiduciary
or safekeeping accounts, to which account other similar securities may
be credited. A bank, trust company or private banker so depositing secu-
rities with a federal reserve bank shall be subject to such rules and
regulations with respect to the making and maintenance of such deposit
as, in the case of state chartered institutions, the state banking AND
FINANCIAL SERVICES board, and, in the case of national banking associ-
ations, the comptroller of the currency, may from time to time issue.
The records of such bank, trust company or private banker shall at all
times show the ownership of the securities held in such account. Owner-
ship of, and other interests in, the securities credited to such account
may be transferred by entries on the books of said federal reserve bank
without physical delivery of any securities. A bank, trust company or
private banker acting as custodian for a fiduciary shall, on demand by
the fiduciary, certify in writing to the fiduciary the securities so
deposited by such bank, trust company or private banker with such feder-
al reserve bank for the account of such fiduciary. A fiduciary shall, on
demand by any party to its accounting or on demand by the attorney for
such party, certify in writing to such party the securities deposited by
such fiduciary with such federal reserve bank for its account as such
fiduciary.
S 284. Paragraph (a) of section 11-1.9 of the estates, powers and
trusts law, as amended by chapter 498 of the laws of 1980, is amended to
read as follows:
(a) Notwithstanding any other provision of law, any fiduciary (as
defined in section 1-2.7) holding securities in its fiduciary capacity,
any bank, trust company or private banker holding securities as a custo-
dian or managing agent, and any bank, trust company or private banker
holding securities as custodian for a fiduciary pursuant to section
11-1.1 (b)(9), is authorized to deposit or arrange through a subcusto-
dian or otherwise for the deposit of such securities in a clearing
corporation (as defined in article eight of the Uniform Commercial
Code). When such securities are so deposited, certificates representing
securities of the same class of the same issuer may be merged and held
in bulk in the name of the nominee of such clearing corporation with any
other such securities deposited in such clearing corporation by any
person regardless of the ownership of such securities, and certificates
of small denomination may be merged into one or more certificates of
larger denomination. The records of such fiduciary and the records of
A. 9064 135
such bank, trust company or private banker acting as custodian, as
managing agent or as custodian for a fiduciary shall at all times show
the name of the party for whose account the securities are so deposited.
Ownership of, and other interests in, such securities may be transferred
by bookkeeping entry on the books of such clearing corporation without
physical delivery of certificates representing such securities. A bank,
trust company or private banker so depositing securities pursuant to
this section shall be subject to such rules and regulations as, in the
case of state chartered institutions, the state banking AND FINANCIAL
SERVICES board and, in the case of national banking associations, the
comptroller of the currency may from time to time issue. A bank, trust
company or private banker acting as custodian for a fiduciary shall, on
demand by the fiduciary, certify in writing to the fiduciary the securi-
ties so deposited by such bank, trust company or private banker in such
clearing corporation for the account of such fiduciary. A fiduciary
shall, on demand by any party to a judicial proceeding for the settle-
ment of such fiduciary's account or on demand by the attorney for such
party, certify in writing to such party the securities deposited by such
fiduciary in such clearing corporation for its account as such fiduci-
ary.
S 285. Subdivision 7 of section 130 of the general business law, as
amended by chapter 950 of the laws of 1990, is amended to read as
follows:
7. Subdivision one of this section shall not apply to a person who, or
a partnership which, has duly filed a certificate of continued use of
firm name under article seven of the partnership law, or to a private
banker duly authorized by the superintendent of banks AND FINANCIAL
SERVICES to engage in business pursuant to the provisions of the banking
law or to a partnership of attorneys and counsellors-at-law engaged in
the practice of their profession, and subdivision three of this section
shall not apply to such a person or partnership who has filed a certif-
icate of discontinuance under subdivision ten of this section.
S 286. Paragraph (g) of subdivision 1 of section 359-f of the general
business law, as amended by chapter 980 of the laws of 1946, is amended
to read as follows:
(g) Any security which under the laws of this state is a legal invest-
ment for savings banks or trust funds, and any securities which are
underwritten or sold by any corporation under the supervision of the
superintendent of banks AND FINANCIAL SERVICES of the state of New York.
S 287. Subdivision 2 of section 396-a of the general business law, as
amended by chapter 310 of the laws of 1962, is amended to read as
follows:
2. Whenever the superintendent of banks AND FINANCIAL SERVICES shall
report a violation of this section to the attorney-general or the attor-
ney-general shall believe from evidence satisfactory to him that a
violation of this section has occurred, the attorney-general may bring
an action in the name of the superintendent or in behalf of the people
of the state, as the case may be, to enjoin further violation. In the
action preliminary relief may be granted as under article sixty-three of
the civil practice law and rules.
S 288. Subdivision 6 of section 684 of the general business law, as
added by chapter 730 of the laws of 1980, is amended to read as follows:
6. This article shall not be applicable to any transaction relating to
a bank credit card plan. "Bank credit card plan" means a credit card
plan in which the issuers of credit cards are only: banks regulated by
or under the supervision of the Federal Reserve Board; the Federal
A. 9064 136
Deposit Insurance Corporation; the Controller of the Currency of the
United States; or the Superintendent of Banks AND FINANCIAL SERVICES of
this state; or persons controlling such banks, provided that the assets
of such a bank or banks represent a majority of the assets on a consol-
idated basis of any holding company system of which such card issuers
may be a party; or, persons controlled by such banks.
S 289. Subsections (a) and (c) of section 4402 of the insurance law
are amended to read as follows:
(a) "Employee welfare fund" or "fund" means any trust fund or other
fund established or maintained jointly by one or more employers together
with one or more labor organizations, whether directly or through trus-
tees, to provide employee benefits by the purchase of insurance or annu-
ity contracts or otherwise, and to which is paid or contracted to be
paid anything, other than income from investments of such fund for the
benefit of employees employed in this state, and, if the principal
office of the employer is located outside of the state, for at least
twenty such employees; provided, however, that such term shall not
include any such fund where its over-all management is vested, alone or
jointly with other trustees, in a corporate trustee which is subject to
supervision by the superintendent of banks AND FINANCIAL SERVICES of any
state or is a member of the federal reserve system.
(c) "Trustee" means the person or group of persons who or which is
charged with or has the general power of administration over an employee
welfare fund and may include a pension board or committee, a board of
individual trustees, a board of administration or the like; provided,
however, such term shall not include a corporate trustee which is
subject to supervision by the superintendent of banks AND FINANCIAL
SERVICES of any state or is a member of the federal reserve system; nor
shall such term include any insurer licensed under the laws of this
state or authorized to do business herein.
S 290. Subsection (b) of section 4403 of the insurance law is amended
to read as follows:
(b) If it is found that the conditions which originally required
registration with the superintendent have ceased to exist and that new
conditions exist which would not require the registration of an employee
welfare fund with either the superintendent of banks AND FINANCIAL
SERVICES or the superintendent of insurance, then the superintendent of
insurance may, on application of the trustees or on his OR HER own
motion, cancel the registration of such fund.
S 291. Subsection (a) of section 7316 of the insurance law, as added
by chapter 540 of the laws of 1998, is amended to read as follows:
(a) (1) Upon compliance with the requirements of this section, the
life insurance business conducted by all savings and insurance banks as
defined in [article six-A] ARTICLES SIX AND SIX-B of the banking law may
be converted into and transferred to a corporation formed as set forth
in subsection (b) of this section and licensed as a mutual life insur-
ance company to do the kinds of insurance business specified in para-
graphs one, two and three of subsection (a) of section one thousand one
hundred thirteen of this chapter. Such conversion and transfer shall be
effected pursuant to a plan approved by the superintendent and the
superintendent of banks AND FINANCIAL SERVICES. Such plan shall be
submitted by the trustees of savings banks life insurance fund to the
superintendent and the superintendent of [banking] BANKS AND FINANCIAL
SERVICES in writing and shall set forth in full the terms and conditions
thereof.
A. 9064 137
(2) Prior to the submission thereof to the superintendent and the
superintendent of banks AND FINANCIAL SERVICES, such plan shall be
approved by the vote of at least three-fourths of the trustees of
savings banks life insurance fund and then by the vote of at least
three-fourths of all the savings and insurance banks at a meeting of all
such banks called for the purpose of submitting such plan to such banks
for approval. Written notice of such meeting shall be given to each such
bank by first class mail addressed to the chairman or president of the
bank at the bank's principal office not less than thirty days prior to
the date of such meeting. Such notice shall state the purpose for which
the meeting is called and shall be accompanied by a true and complete
copy of such plan. At such meeting the vote of each such bank shall be
cast by the chairman or president thereof or by an officer thereof
designated by the chairman or president in a writing addressed to and
received by the secretary of savings banks life insurance fund prior to
the date of such meeting. The results of the vote and the minutes of the
meeting shall be submitted to the superintendent and the superintendent
of banks AND FINANCIAL SERVICES.
(3) The superintendent and the superintendent of banks AND FINANCIAL
SERVICES each may approve the plan if he finds that it conforms to the
requirements of law and is fair and equitable to the holders of insur-
ance policies issued by the life insurance departments of the savings
and insurance banks. The plan submitted shall include a filing in
accordance with section thirteen hundred twenty-two of this chapter
which shows that the proposed mutual insurer's risk based capital level
is in excess of the company action level and there is no company action
level event. Upon the approval by the superintendent and the superinten-
dent of banks AND FINANCIAL SERVICES of the plan, the trustees of
savings banks life insurance fund shall form a corporation as set forth
in subsection (b) of this section to which the life insurance business
conducted by all the savings and insurance banks shall be transferred.
S 292. Subdivision (f) of section 204 of the limited liability company
law is amended to read as follows:
(f) shall not contain the following words, or any abbreviation or
derivative thereof:
acceptance guaranty
annuity indemnity
assurance insurance
attorney investment
bank lawyer
benefit loan
bond mortgage
casualty savings
doctor surety
endowment title
fidelity trust
finance underwriter
unless the approval of the superintendent of banks AND FINANCIAL
SERVICES or the superintendent of insurance, as appropriate, is attached
to the articles of organization or unless the word "doctor" or "lawyer"
or an abbreviation or derivative thereof is used in a context that
clearly denotes a purpose other than the practice of law or medicine;
S 293. Clause (B) of subparagraph (5) of paragraph (a) of section 301
of the not-for-profit corporation law, as amended by chapter 9 of the
laws of 1983, is amended to read as follows:
A. 9064 138
(B) Shall not contain any of the following words, or any abbreviation
or derivative thereof:
acceptance fidelity mortgage
annuity finance savings
assurance guaranty surety
bank indemnity title
bond insurance trust
casualty investment underwriter
doctor lawyer
endowment loan
unless the approval of the superintendent of banks AND FINANCIAL
SERVICES or the superintendent of insurance, as appropriate, is attached
to the certificate of incorporation, or application for authority or
amendment thereof; or that the word "doctor", "lawyer", or the phrase
"state police" or "state trooper" or an abbreviation or derivation ther-
eof, may be used in the name of a corporation the membership of which is
composed exclusively of doctors, lawyers, state policemen or state
troopers, respectively.
S 294. Paragraph (k) of section 404 of the not-for-profit corporation
law, as amended by chapter 139 and as relettered by chapter 431 of the
laws of 1993, is amended to read as follows:
(k) Every certificate of incorporation for a corporation which has as
its exclusive purpose the promotion of the interests of savings bank
life insurance or the promotion of the interests of member banks may, if
the approval of the superintendent of banks AND FINANCIAL SERVICES is
endorsed thereon or annexed thereto, use as a part of the corporate name
any of the words or phrases, or any abbreviation or derivative thereof,
set forth in subparagraph (5) of paragraph (a) of section 301 (Corporate
name; general).
S 295. Subparagraph (B) of paragraph (3) of subdivision (a) of section
121-102 of the partnership law, as added by chapter 950 of the laws of
1990, is amended to read as follows:
(B) may not contain the following words, or any abbreviation or deriv-
ative thereof:
acceptance indemnity
annuity insurance
assurance investment
bank lawyer
benefit loan
bond mortgage
casualty savings
doctor surety
endowment title
fidelity trust
finance underwriter
guaranty
unless the approval of the superintendent of banks AND FINANCIAL
SERVICES or the superintendent of insurance, as appropriate, is attached
to the certificate of limited partnership; or unless the word "doctor"
or "lawyer" or an abbreviation or derivative thereof is used in a
context which clearly denotes a purpose other than the practice of law
or medicine.
S 296. Section 4-a of the banking law, as added by chapter 665 of the
laws of 1975, is amended to read as follows:
A. 9064 139
S 4-a. Banks to display signs. Every banking organization having as
its purpose or among its purposes the receipt of deposits, shall contin-
uously display a sign, or signs, as prescribed by the superintendent of
banks AND FINANCIAL SERVICES, at each station or window within the state
where deposits are usually and normally received in its principal place
of business and in all its branches indicating whether deposits are
insured, and if insured the name of the insurer and the extent to which
each depositor is insured. Signs in non-insured banking organizations
shall clearly and legibly state "DEPOSITS NOT INSURED", all in letters
of the same size and character. No sign shall appear in any non-insured
bank with regard to insurance or deposits except as herein prescribed.
S 297. Section 4-b of the banking law, as added by chapter 665 of the
laws of 1975, is amended to read as follows:
S 4-b. Advertising. Every such non-insured banking organization shall
include in all its advertising within the state with reference to depos-
it accounts the statement substantially as follows: "DEPOSITS NOT
INSURED". Where such advertising is printed the statement shall be of
such size and print to be clearly legible, all letters in such statement
being of the same size and character. No further reference shall be
contained in the advertising of non-insured banking organizations with
reference to the insurance of depositors which shall tend to be mislead-
ing in connection therewith. The non-English equivalent of the insurance
statement may be used in any advertisement provided that the entire
advertisement is in such language and that the translation has had the
prior approval of the superintendent of banks AND FINANCIAL SERVICES.
S 298. Section 202-f of the banking law, as amended by chapter 496 of
the laws of 1993, is amended to read as follows:
S 202-f. Restrictions on loans, purchases of securities and total
liabilities of any one person to New York branch or agency of foreign
bank. Before opening a branch or agency in this state, and annually
thereafter so long as a branch or agency is maintained in this state, a
foreign banking corporation, licensed pursuant to article two of this
chapter, shall certify to the superintendent the amount of its paid-in
capital stock, its surplus fund and its undivided profits, each
expressed in the currency of the country of its incorporation, the
dollar equivalent of which amount, as determined by the superintendent,
shall be deemed to be the amount of its capital stock, surplus fund and
undivided profits. Loans, purchases and discounts of notes, bills of
exchange, bonds, debentures and other obligations, and extensions of
credit and acceptances by a branch or agency of a foreign banking corpo-
ration within this state shall be subject to the same limitations as to
amount in relation to capital stock, surplus fund, and undivided profits
as are applicable to banks and trust companies pursuant to article three
of this chapter, provided, however, that with the prior approval of the
superintendent of banks AND FINANCIAL SERVICES, the capital notes and
capital debentures of such foreign banking corporation may be treated as
capital stock in computing such limitations.
S 299. Section 206 of the banking law, as amended by chapter 154 of
the laws of 2007, is amended to read as follows:
S 206. Termination of existence. When a foreign banking corporation
licensed pursuant to article two of this chapter is dissolved or its
authority or existence is otherwise terminated or cancelled in the
jurisdiction of its incorporation, a certificate of the superintendent
of banks AND FINANCIAL SERVICES, or official performing the equivalent
function as to records of banking corporations, of the jurisdiction of
incorporation of such foreign banking corporation attesting to the
A. 9064 140
occurrence of any such event or a certified copy of an order or decree
of a court of such jurisdiction directing the dissolution of such
foreign banking corporation, the termination of its existence or the
cancellation of its authority shall be delivered to the superintendent.
The filing of the certificate, order or decree shall have the same
effect as the revocation of its license under section forty of this
chapter. The superintendent shall continue as agent of the foreign bank-
ing corporation upon whom process against it may be served in any action
or special proceeding based upon any liability or obligation incurred by
the foreign banking corporation within this state prior to the filing of
such certificate, order or decree and he shall promptly cause a copy of
such process to be mailed by registered mail, return receipt requested,
to such foreign corporation at the post office address on file in his
office specified for such purpose. The post office address may be
changed in the manner provided in section two hundred of this article.
S 300. Subdivision 1 of section 221-a of the banking law, as amended
by chapter 281 of the laws of 1992, is amended to read as follows:
1. No person, co-partnership, association, corporation or other entity
shall establish, maintain or use one or more offices in this state as
the representative of one or more foreign banking corporations unless
the foreign banking corporation to be represented has first obtained a
license from the superintendent of banks AND FINANCIAL SERVICES. Enti-
ties lawfully registered pursuant to this article on or before September
first, nineteen hundred ninety-two shall be deemed licensed pursuant to
this section until September first, nineteen hundred ninety-four,
provided however that the superintendent may require the submission of
any additional documents or materials relating to the business activ-
ities of the registrant as he or she may deem necessary or appropriate.
S 301. Subdivision 1 of section 228-f of the banking law, as added by
chapter 1 of the laws of 1994, is amended to read as follows:
1. The investment companies shall make an annual report of their
conditions to the governor, the legislature and the superintendent of
banks AND FINANCIAL SERVICES, on or before January first of each year.
S 302. Paragraph (a) of subdivision 13 and paragraph (a) of subdivi-
sion 14 of section 235 of the banking law, as amended by chapter 645 of
the laws of 1950, are amended to read as follows:
(a) Such corporation shall have all franchises necessary to operate in
territory in which at least seventy-five per centum of its gross income
is earned. Such corporation shall file with the superintendent of banks
AND FINANCIAL SERVICES and make public in each year a statement and a
report giving the income account covering the previous fiscal year and a
balance sheet showing in reasonable detail the assets and liabilities at
the end of the year.
(a) Such corporation shall have been in existence for a period of not
less than eight fiscal years and at no time within such period of eight
fiscal years next preceding the date of such investment shall said
corporation have failed to pay promptly and regularly the matured prin-
cipal and interest of all its indebtedness direct, assumed, or guaran-
teed, but the period of life of the corporation, together with the peri-
od of life of any predecessor corporation or corporations from which a
major portion of its property was acquired by consolidation, merger or
purchase, shall be considered together in determining the required peri-
od; and such corporation shall file with the superintendent of banks AND
FINANCIAL SERVICES and make public in each year a statement and a report
giving the income account covering the previous fiscal year and a
A. 9064 141
balance sheet showing in reasonable detail the assets and liabilities at
the end of the year.
S 303. Subdivisions 7 and 8 of section 237 of the banking law, subdi-
vision 7 as amended and subdivision 8 as added by chapter 86 of the laws
of 1975, are amended to read as follows:
7. Subject to any regulations and restrictions prescribed by the
superintendent of banks AND FINANCIAL SERVICES, a savings bank shall
have power to act as trustee under a retirement plan established pursu-
ant to the provisions of the act of congress entitled "Self-employed
Individuals Tax Retirement Act of 1962", and provisions of law contained
therein as amended, provided that the provisions of such retirement plan
require the funds of such trust to be invested exclusively in deposits
in savings banks. In the event that any such retirement plan which, in
the judgment of the savings bank, constituted a qualified plan under the
provisions of said Self-employed Individuals Tax Retirement Act of 1962,
and provisions of law contained therein as amended, and the regulations
promulgated thereunder at the time the trust was established and
accepted by the savings bank is subsequently determined not to be such a
qualified plan or subsequently ceases to be such a qualified plan, in
whole or in part, the savings bank may, nevertheless, continue to act as
trustee of any deposits theretofore made under such plan and to dispose
of the same in accordance with the directions of the depositor and the
beneficiaries thereof. No savings bank, in respect to deposits made
under this subdivision, shall be bound by any provision of this chapter
restricting or limiting the amount of deposits which a savings bank may
accept, or be required to segregate such deposits from other deposits of
such savings banks, provided, however, that a savings bank shall keep
appropriate records showing in proper detail all transactions engaged in
under the authority of this subdivision.
8. Subject to any regulations and restrictions prescribed by the
superintendent of banks AND FINANCIAL SERVICES, a savings bank shall
have power to act as trustee of an individual retirement account estab-
lished pursuant to the provisions of the act of congress entitled
"Employee Retirement Income Security Act of 1974", provided that the
provisions of the written governing instrument creating the trust
require the funds of such trust to be invested exclusively in deposits
in savings banks. In the event that any such individual retirement
account, which in the judgment of the savings bank, constituted a quali-
fied individual retirement account under the provisions of said Employee
Retirement Income Security Act of 1974 and the regulations promulgated
thereunder at the time the trust was established and accepted by the
savings bank is subsequently determined not to be such a qualified indi-
vidual retirement account or subsequently ceases to be such a qualified
individual retirement account, in whole or in part, the savings bank
may, nevertheless, continue to act as trustee of any deposits thereto-
fore made under such individual retirement account and to dispose of the
same in accordance with the directions of the depositor and the benefi-
ciaries thereof. No savings bank, in respect to deposits made under this
subdivision, shall be bound by any provision of this chapter restricting
or limiting the amount of deposits which a savings bank may accept, or
be required to segregate such deposits from other deposits of such
savings banks, provided, however, that a savings bank shall keep appro-
priate records showing in proper detail all transactions engaged in
under the authority of this subdivision.
A. 9064 142
S 304. Paragraph (b) of subdivision 1 of section 246 of the banking
law, as amended by chapter 102 of the laws of 1982, is amended to read
as follows:
(b) Notwithstanding the provisions of the foregoing paragraph of this
section, a vacancy now existing or hereafter occurring in the board of
trustees of a savings bank, which savings bank resulted from the merger
of two or more savings banks or one or more savings and loan associ-
ations and a savings bank, may be filled, even though the remaining
number of trustees exceeds twenty, by election thereto of one or more of
the three highest ranking officers of the savings bank who are not then
trustees, provided (1) that the superintendent of banks AND FINANCIAL
SERVICES shall have given his prior written approval that such vacancy
be filled, (2) that the election of such officer or officers shall not
result in having more than three active officers on the board of trus-
tees at any one time, and (3) that the total number of trustees shall in
no event exceed the number authorized by the merger agreement.
S 305. Subdivision 2 of section 258 of the banking law, as amended by
chapter 546 of the laws of 1952, is amended to read as follows:
2. Any school in the state of New York may collect from time to time
amounts of money from the pupils of such school and any philanthropic
agency incorporated for philanthropic purposes, if such agency be so
authorized by certificate of the superintendent of banks AND FINANCIAL
SERVICES, may collect from time to time amounts of money from the chil-
dren or persons under the direction or guidance of, or the promotion of
whose welfare is an object of, such philanthropic agency. As to each
such school, such money shall be collected by or under the supervision
of, the principal or superintendent of such school or by, or under the
supervision of, any person designated for that purpose by the board of
education or other authority having jurisdiction over such school. As to
each such philanthropic agency, such money shall be collected by, or
under the supervision of, the superintendent or other designated head of
such agency. All money so collected shall, not later than the day
following the day of collection, be deposited in some savings bank in
the state, be used for the purchase of shares in any savings and loan
association organized under this law, or under the laws of the United
States, whose principal office is located in the state of New York, or
be deposited in any trust company or state or national bank located in
the state and having an interest department. All money so collected
from any person shall be deposited, or used to purchase shares, in his
name; provided, however, that if the principal, superintendent, desig-
nated person or agency head by whom, or under whose supervision, such
money was collected shall deem the amount of money so collected at any
one time to be insufficient for the opening of individual accounts, such
money shall be deposited, or used to purchase shares, in the name of
such principal, superintendent, designated person or agency head, in
trust, to be by him eventually transferred to the credit of the respec-
tive persons to whom the same belongs, and pending such transfer, said
principal, superintendent, designated person or agency head shall
furnish to the depositary institution or savings and loan association
receiving such money the name, signature, address, age and place of
birth of each person from whom such money was collected, and such other
data concerning such person as the institution may require. Any deposi-
tary institution or savings and loan association authorized to receive
any amounts collected by a school or philanthropic agency in accordance
with this subdivision, may, on the request of any person authorized by
this subdivision to collect such amounts for such school or philanthrop-
A. 9064 143
ic agency, send a collector to such school or philanthropic agency to
receive and receipt for same. Any certificate of authorization issued to
a philanthropic agency by the superintendent of banks AND FINANCIAL
SERVICES in accordance with this subdivision shall specify the period
for which such authorization is to be effective and the area in which
collections may be made, and may specify any other terms or conditions
upon which such authorization is granted. Any such authorization may be
terminated by the superintendent of banks AND FINANCIAL SERVICES by
written notice served upon the philanthropic agency or mailed to it at
its last known address. As used in this subdivision with reference to
the placing of amounts with a depositary institution or savings and loan
association, the words "the day following the day of collection" shall
mean the next day, after the day of collection, on which such institu-
tion or association is open for business. As used in this subdivision,
the words "philanthropic agency" shall be deemed to include, without
limitation a corporation, not organized for profit, engaged in promoting
the welfare of seamen.
S 306. Section 282 of the banking law, as added by chapter 259 of the
laws of 1934, is amended to read as follows:
S 282. Creation of fund. Any seventy-five or more savings banks organ-
ized under the laws of the state of New York whose deposits aggregate
not less than fifty per cent of the total deposit liabilities of all the
savings banks in the state, may enter into an agreement (hereinafter
called the agreement) subject to the approval of the superintendent of
banks AND FINANCIAL SERVICES to create a fund (hereinafter called the
fund) and from time to time make such contributions to such fund as the
said agreement may provide for, for the purpose of insuring deposits
and/or otherwise protecting the interests of depositors in the banks
(hereinafter referred to as member banks) which become parties to the
said agreement. Once this agreement has become effective, if at any
subsequent time there should be fewer member banks than the number
required to create the fund, the remaining member banks are authorized
to continue the fund.
S 307. Section 283 of the banking law, as added by chapter 259 of the
laws of 1934, is amended to read as follows:
S 283. Management of fund. The fund shall be collected, held, adminis-
tered and disbursed by a corporate trustee or a board of trustees
composed of individuals who are trustees of mutual savings banks, either
of which shall be approved by the superintendent of banks AND FINANCIAL
SERVICES, which corporate trustee or board of trustees are hereinafter
referred to as the trustee. In the event there be a board of individual
trustees, a majority of them at any time in office shall constitute a
quorum, and the vote of a majority at any meeting, provided a quorum be
present, shall be determinative and any action taken pursuant thereto be
the action of the trustee.
S 308. Section 284 of the banking law, as added by chapter 259 of the
laws of 1934, is amended to read as follows:
S 284. Agreement; filing and provisions thereof. The agreement when
approved by the superintendent of banks AND FINANCIAL SERVICES shall be
executed by the savings banks parties thereto and filed in his office.
The agreement may be executed in any number of counterparts, all of
which taken together shall constitute the original. The agreement shall
name the trustee and contain suitable provisions for the removal or
resignation of the trustee, or if the trustee named be a board of trus-
tees, for the removal or resignation of any or all of them, and for the
appointment of a successor trustee or for the filling of vacancies in
A. 9064 144
such board of trustees, whether caused by death, resignation, disquali-
fication or removal; it shall also provide the amount of the initial
contributions to the fund and the manner of making subsequent calls, and
may contain such limitations thereon as the superintendent shall
approve, but all such initial contributions to the fund and payments
pursuant to further calls shall be made ratably by all the member banks
in proportion to their several deposit liabilities, except that the
superintendent of banks AND FINANCIAL SERVICES may exempt from any such
call in whole or in part any member bank or banks the condition of which
makes such exemption in his opinion desirable; it may also provide for
the liquidation of the fund pursuant to rules and regulations for that
purpose acceptable to the superintendent of banks AND FINANCIAL
SERVICES, provided that on any such liquidation the liabilities incurred
or assumed by the trustee pursuant to the provisions hereof shall first
be paid and the balance, if any, be distributed among the member banks
pro rata according to their contributions; and the agreement may simi-
larly provide for the change or amendment thereof with the approval of
the superintendent of banks AND FINANCIAL SERVICES and with such
approval may be amended in such manner as may be provided therein; and
the agreement shall also define the powers of the trustee, which may be
all or any one or more or the powers hereinafter set forth, together
with any additional powers not inconsistent with the powers herein
enumerated or with the purposes of the fund, set forth in the agreement.
S 309. Subdivisions 2, 5, 6, 8, and 9 of section 285 of the banking
law, subdivisions 2, 8 and 9 as added by chapter 259 of the laws of 1934
and subdivisions 5 and 6 as amended by chapter 352 of the laws of 1938,
are amended to read as follows:
2. To buy any assets owned by any member bank at the book value there-
of notwithstanding such value may exceed the market value thereof, or
such other value as the trustee may elect either with or without an
agreement providing for the repurchase of the same at such price or
value and at such time and subject to such conditions as may be agreed
upon by the trustee in its discretion and to make loans or advances to
any member bank upon such terms and conditions as may seem desirable and
with such security as the trustee may determine or without security; in
any agreement of repurchase or repayment it may be provided that the
savings bank receiving such loan or advance or making such sale of
assets may not be obligated to repay the same or repurchase such assets
until the superintendent of banks AND FINANCIAL SERVICES shall certify
that such savings bank is in a safe and sound condition to make such
repurchase or repayment.
5. To make contributions to the surplus fund of any member bank upon
such terms and conditions for the use and the repayment thereof and
evidenced in such manner as the superintendent of banks AND FINANCIAL
SERVICES may approve, and such savings bank may make such repayment as
such agreement may provide notwithstanding any provisions of law; but no
such agreement shall require such repayment except if, as and when the
surplus and surplus fund of such savings bank shall be not less than
five per centum of the amount due its depositors nor shall any such
agreement require any payment on account of such contribution in such an
amount as to reduce the surplus and surplus fund of such savings bank
below five per centum of the amount owed its depositors. The agreement
may provide the manner in which the surplus and surplus fund shall be
computed for the purpose of this subdivision. Such contributions shall
not constitute a liability of such member bank except as herein
provided.
A. 9064 145
6. If it shall appear by certificate of the superintendent of banks
AND FINANCIAL SERVICES filed in his office, that any member bank to
which the trustee with the approval of the superintendent has made any
loan or advance, or to the surplus fund of which it has made a contrib-
ution, or from which the trustee has purchased any asset at a price in
excess of the market value thereof, would but for such loan, advance,
contribution or purchase be in such condition that the superintendent
might take possession of the business and property of the same pursuant
to law, or that any such member bank to which the trustee with the
approval of the superintendent has made any loan or advance, or to the
surplus fund of which it has made a contribution, or from which the
trustee has purchased any asset at a price in excess of the market value
thereof, or the deposits in which have been insured by the fund in whole
or in part shall have committed such an act or is in such condition that
the superintendent might take possession of the business and property of
the same pursuant to law, the trustee shall have the right if it so
elects, and in such case the superintendent, on such conditions and
subject to such rules and regulations as he shall prescribe, shall
permit the trustee to take possession and control forthwith of the prop-
erty and business of such bank and operate and/or liquidate the same.
The trustee may, while carrying on such business, pay to such bank out
of the moneys in or available to the fund such sums as the agreement may
authorize as the trustee deems necessary for the protection of the
bank's depositors.
8. The trustee, with the approval of the superintendent of banks AND
FINANCIAL SERVICES may at any time after it has taken over the control,
possession and operation of any bank under subdivision six [hereof] OF
THIS SECTION discontinue the business of such bank and proceed to liqui-
date its affairs. The trustee may use the assets in the fund to pay to
the depositors of any such savings bank out of moneys in or available to
the fund the excess, if any, or such portion thereof as the agreement
may provide, of the full amount of their respective deposits over the
dividends received therefor on such liquidation.
9. To carry out the provisions [aforesaid] OF THIS SECTION, the trus-
tee shall have and may exercise all the rights, powers, privileges and
franchises of any savings bank taken over by it, and at any time, with
the approval of the superintendent of banks AND FINANCIAL SERVICES, to
suspend the authority of the trustees of any savings bank and exercise
the powers and duties of such trustees, and in addition to the forego-
ing, in the event it shall operate and/or liquidate any such savings
bank it shall have and may exercise all of the rights and powers which
the superintendent of banks AND FINANCIAL SERVICES would have pursuant
to law in connection with the operation and/or liquidation of such bank
and be subject to the same duties and supervision. The trustee, or any
duly authorized agent of the trustee, in connection with the operation
and/or liquidation of any such bank may execute, acknowledge and deliver
in the name of such bank, and under its seal, or may authorize any offi-
cer or officers of any such bank to execute, acknowledge and deliver in
the name of such bank and under its seal any instrument affecting or
relating to the property, business or affairs of such bank, and in the
event any such officer is so authorized by the trustee, such authori-
zation shall be deemed the authorization of the board of trustees of
such bank and he may swear or affirm the usual certificate of acknowl-
edgment to the effect that he executed the same and such seal was
affixed by the authority of the board of trustees thereof. Any instru-
A. 9064 146
ment executed in any manner provided herein shall be valid and effectual
for all purposes.
S 310. The first undesignated paragraph of section 329 of the banking
law, as amended by chapter 845 of the laws of 1965, is amended to read
as follows:
On or before the first day of February in each year, every safe depos-
it company shall make a written report to the superintendent of banks
AND FINANCIAL SERVICES which shall contain a statement of its condition
on the morning of the first day of January in said year. Every such
report shall be subscribed and affirmed as true under the penalties of
perjury, according to the best of their knowledge and belief, by the two
principal officers in charge of the affairs of the safe deposit company
at the time of such subscription and shall state that the usual business
of the safe deposit company has been transacted at the location required
by this article and not elsewhere.
S 311. Subdivision 1 of section 366 of the banking law, as amended by
chapter 849 of the laws of 1964, is amended to read as follows:
1. The term "licensed casher of checks" means any individual, partner-
ship, unincorporated association or corporation duly licensed by the
superintendent of banks AND FINANCIAL SERVICES to engage in business
pursuant to the provisions of this article.
S 312. Section 380-a of the banking law, as added by chapter 430 of
the laws of 1965, is amended to read as follows:
S 380-a. Power to purchase mortgage, loan or investment. Subject to
such regulations and restrictions as the superintendent of banks AND
FINANCIAL SERVICES may prescribe therefor, an association may acquire by
purchase any mortgage, loan or [invetsment] INVESTMENT which by the
provisions of this article it is authorized to make and hold.
S 313. Section 382-a of the banking law, as amended by chapter 86 of
the laws of 1975, is amended to read as follows:
S 382-a. Power to act as trustee under self-employed retirement trust
and of individual retirement account; investment in savings account. 1.
Subject to any regulations and restrictions prescribed by the super-
intendent of banks AND FINANCIAL SERVICES, a savings and loan associ-
ation shall have power to act as trustee under a retirement plan estab-
lished pursuant to the provisions of the act of congress entitled
"Self-employed Individuals Tax Retirement Act of 1962", and provisions
of law contained therein as amended, provided that the provisions of
such retirement plan require the funds of such trust to be invested
exclusively in deposits in savings and loan associations and federal
savings and loan associations whose principal offices are located in
this state. In the event that any such retirement plan, which in the
judgment of the association, constituted a qualified plan under the
provisions of said Self-employed Individuals Tax Retirement Act of 1962,
and provisions of law contained therein as amended, and the regulations
promulgated thereunder at the time the trust was established and
accepted by the association is subsequently determined not to be such a
qualified plan or subsequently ceases to be such a qualified plan, in
whole or in part, the association may, nevertheless, continue to act as
trustee of any deposits theretofore made under such plan and to dispose
of the same in accordance with the directions of the depositor and the
beneficiaries thereof. No association, in respect to deposits made under
this subdivision, shall be required to segregate such deposits from
other deposits of such association, provided, however, that the associ-
ation shall keep appropriate records showing in proper detail all trans-
actions engaged in under the authority of this subdivision. As used in
A. 9064 147
this subdivision, the term "deposits" shall include shares issued by the
association and time deposits held pursuant to section three hundred
seventy-eight-a of this [chapter] ARTICLE.
2. Subject to any regulations and restrictions prescribed by the
superintendent of banks AND FINANCIAL SERVICES, a savings and loan asso-
ciation shall have power to act as trustee of an individual retirement
account established pursuant to the provisions of the act of congress
entitled "Employee Retirement Income Security Act of 1974" provided that
the provisions of the written governing instrument creating the trust
require the funds of such trust to be invested exclusively in deposits
in savings and loan associations and federal savings and loan associ-
ations whose principal offices are located in this state. In the event
that any such individual retirement account, which in the judgment of
the association, constituted a qualified individual retirement account
under the provisions of said Employee Retirement Income Security Act of
1974 and the regulations promulgated thereunder at the time the trust
was established and accepted by the association is subsequently deter-
mined not to be such a qualified individual retirement account or subse-
quently ceases to be such a qualified individual retirement account, in
whole or in part, the association may, nevertheless, continue to act as
trustee of any deposits theretofore made under such individual retire-
ment account and to dispose of the same in accordance with the
directions of the depositor and the beneficiaries thereof. No associ-
ation, in respect to deposits made under this subdivision, shall be
required to segregate such deposits from other deposits of such associ-
ation, provided, however, that the association shall keep appropriate
records showing in proper detail all transactions engaged in under the
authority of this subdivision. As used in this subdivision, the term
"deposits" shall include shares issued by the association and time
deposits held pursuant to section three hundred seventy-eight-a of this
[chapter] ARTICLE.
S 314. Subdivision 5 of section 390 of the banking law, as amended by
chapter 225 of the laws of 1976, is amended to read as follows:
5. Subject to any regulations and restrictions prescribed by the
superintendent of banks AND FINANCIAL SERVICES, a savings and loan asso-
ciation may accept deposits, including demand deposits, without the
issuance of a passbook in connection therewith, and may issue such other
evidences of its obligation to repay such deposits as may be appropriate
to safeguard the interests of the depositors and of the savings and loan
association.
S 315. Subdivisions 9 and 10 of section 420-a of the banking law, as
added by chapter 848 of the laws of 1966, are amended to read as
follows:
9. The fund shall be subject to an examination by the superintendent
of banks AND FINANCIAL SERVICES at least once in each calendar year.
10. Within three days, Saturdays, Sundays and holidays excepted, after
each meeting of the trustees of the fund, the secretary or other officer
of the fund in charge of the minutes of the proceedings of the trustees
shall transmit to the superintendent of banks AND FINANCIAL SERVICES at
his office in Albany three certified copies of the minutes of every
meeting of the trustees for his information.
S 316. Paragraph (d) of subdivision 1 of section 495 of the banking
law, as added by chapter 481 of the laws of 1959, is amended to read as
follows:
(d) Any fact or condition exists which, if it had existed at the time
of the original application for such license, clearly would have
A. 9064 148
warranted the superintendent of banks AND FINANCIAL SERVICES in refusing
to issue such license originally.
S 317. Section 498-b of the banking law, as added by chapter 598 of
the laws of 1957, is amended to read as follows:
S 498-b. Regulations and rulings. The superintendent of banks AND
FINANCIAL SERVICES is hereby authorized and empowered to make such
general rules and regulations, and such specific rulings, demands and
findings as may be necessary for the proper conduct of the business
authorized and licensed under and for the enforcement of this article.
S 318. Section 513 of the banking law, as amended by chapter 360 of
the laws of 1984, is amended to read as follows:
S 513. Reports to superintendent. On or before the first day of April
in each year, every investment company shall make a written report to
the superintendent of banks AND FINANCIAL SERVICES which shall contain a
statement of its condition on the morning of the first day of January in
said year and shall be in the form and contain the matters prescribed by
the superintendent. The superintendent may, however, in his discretion
accept from an investment company which has branches in a foreign coun-
try or countries, a report containing a statement of its condition as of
a date not later than the first day of January and not earlier than the
first day of November in the preceding year. Every such report shall be
subscribed and affirmed as true under the penalties of perjury, accord-
ing to the best of their knowledge and belief, by the two principal
officers of the investment company at the time of such subscription, and
shall state that the usual business of the investment company has been
transacted at the location or locations required by this article and not
elsewhere.
Every such investment company shall also make such other special
reports to the superintendent as he may from time to time require, which
shall be in such form and filed at such date as may be prescribed by the
superintendent and shall, if required by him, be subscribed and affirmed
as true under the penalties of perjury.
S 319. Section 550 of the banking law, as amended by chapter 833 of
the laws of 1969, is amended to read as follows:
S 550. Incorporation; organization certificate. When authorized by the
superintendent as provided in article two of this chapter, five or more
persons may form a corporation to be known as a mutual trust investment
company. Such persons shall subscribe and acknowledge and submit to the
superintendent of banks AND FINANCIAL SERVICES at his office an organ-
ization certificate in duplicate which shall specifically state:
1. The name by which the mutual trust investment company is to be
known and the investment purpose of its formation under [the following]
section five hundred fifty-one OF THIS ARTICLE.
2. The place where its principal office is to be located.
3. The amount of its capital stock and the number of shares into which
such capital stock shall be divided.
4. The full name, residence and post-office address of each of the
incorporators and the number of shares subscribed for by each.
5. The term of its existence, which may be perpetual.
6. The number of its directors, which shall not be less than five and
the names and addresses of the persons who shall be its directors until
the first annual meeting of stockholders.
Such certificate may provide for the manner in which the stock of the
corporation may be transferred and for the number of directors necessary
to constitute a quorum.
A. 9064 149
When the superintendent shall have endorsed his OR HER approval on the
organization certificate as provided in article two of this chapter, the
corporate existence shall begin.
S 320. Subdivision 9 of section 554 of the banking law, as added by
chapter 488 of the laws of 1960, is amended to read as follows:
9. "Superintendent" means the superintendent of banks AND FINANCIAL
SERVICES.
S 321. Section 631 of the banking law, as amended by chapter 684 of
the laws of 1938, is amended to read as follows:
S 631. Actions against directors, trustees, managers or officers for
violation of their official duties. At any time while the superintendent
is in possession of the property and business of any corporation, he may
within six years after the cause of action has accrued institute and
maintain in his name as superintendent of banks AND FINANCIAL SERVICES
against its directors, trustees, managers or officers, or any of them,
any action or proceeding which is vested in such corporation or in the
stockholders or creditors thereof.
S 322. The opening paragraph of section 669 of the banking law, as
amended by chapter 339 of the laws of 1967, is amended to read as
follows:
S 669. Unauthorized use of the term "bank" or "trust company." Any
person not authorized by the superintendent of banks AND FINANCIAL
SERVICES, who:
S 323. Subdivision 4 of section 303 of the personal property law, as
added by chapter 641 of the laws of 1984, is amended to read as follows:
4. As an alternative to the credit service charge provided for above,
a retail seller may contract for in a retail [instalment] INSTALLMENT
contract and charge, receive and collect a credit service charge calcu-
lated on the unpaid balances of an amount computed as provided in the
second paragraph of subdivision one above, for the time outstanding
according to a generally accepted actuarial method at rates that may
vary from time to time and in accordance with the provisions of the
contract. On any contract with a variable rate credit service charge
made pursuant to this subdivision the rate shall be determined at regu-
lar intervals as set forth in the contract and in accordance with such
regulations as the banking AND FINANCIAL SERVICES board shall prescribe
but said rate shall not vary more often than once in any three month
period and shall be based on a published index that is (a) readily
available, (b) independently verifiable, (c) beyond the control of the
retail seller and (d) approved by the superintendent.
The banking AND FINANCIAL SERVICES board shall adopt regulations with
respect to retail installment contracts that provide for a variable rate
of credit-service charge, including but not limited to: (a) providing
for disclosure to the buyer by the retail seller of the circumstances
under which the rate may increase, any limitations on the increase, the
effect of an increase and an example of the payment terms that would
result from an increase; (b) providing for disclosure to the buyer by
the retail seller of a history of the fluctuations of the index over a
reasonable period of time; and (c) providing for notice to the buyer by
the retail seller prior to any rate increase or change in the terms of
payment.
S 324. Subdivision 4 of section 404 of the personal property law, as
added by chapter 641 of the laws of 1984, is amended to read as follows:
4. As an alternative to the credit service charge provided for above,
a seller may, in a retail [instalment] INSTALLMENT contract or obli-
gation, contract for and, if so contracted for, the holder may charge,
A. 9064 150
receive and collect a credit service charge calculated on the unpaid
principal balances of the contract for the time each is outstanding,
according to a generally accepted actuarial method at rates that may
vary from time to time and in accordance with the provisions of the
contract or obligation. On any contract or obligation with a variable
rate credit service charge made pursuant to this subdivision, each rate
shall be determined at regular intervals as set forth in the contract or
obligation and in accordance with such regulations as the banking AND
FINANCIAL SERVICES board shall prescribe but said rate shall not vary
more often than once in any three month period and shall be based on a
published index that is (a) readily available, (b) independently verifi-
able, (c) beyond the control of the holder, and (d) approved by the
superintendent.
The banking AND FINANCIAL SERVICES board shall adopt regulations with
respect to retail installment contracts or obligations that provide for
a variable rate of credit service charge, including but not limited to:
(a) providing for disclosure to the buyer by the holder of the circum-
stances under which the rate may increase, any limitations on the
increase, the effect of an increase and an example of the payment terms
that would result from an increase; (b) providing for disclosure to the
buyer by the holder of a history of the fluctuations of the index over a
reasonable period of time; and (c) providing for notice to the buyer
from the holder prior to any rate increase or change in the terms of
payment.
S 325. Paragraph (a) of subdivision 3 of section 413 of the personal
property law, as amended by chapter 1 of the laws of 1994, is amended to
read as follows:
(a) A seller may, in a retail instalment credit agreement, contract
for and, if so contracted for, the seller or holder thereof may charge,
receive and collect the service charge authorized by this article, which
service charge shall not exceed the rate or rates agreed upon by the
seller and the buyer, including, in accordance with the provisions of
the credit agreement, rates that may vary, from time to time computed,
for the purposes of this section, on the outstanding indebtedness from
month to month, or if the service charge so computed is less than seven-
ty cents for any month, seventy cents. If the credit agreement provides
for a variable rate of service charge, such rate shall be determined at
regular intervals as set forth in the credit agreement and in accordance
with such regulations as the banking AND FINANCIAL SERVICES board shall
prescribe but said rate shall not vary more often than once in any three
month period and shall be based on a published index that is (a) readily
available, (b) independently verifiable, (c) beyond the control of the
seller and (d) approved by the superintendent, (e) such charges in cred-
it agreements shall be based on the index values, or the index numbers
plus or minus additional percentage points provided, however, that vari-
ations in the charge must correspond directly to the movements of the
index values plus or minus additional percentage points only. Once such
charge is established no lending institution may add any factors to
increase the charge other than variations in the established index with-
out the prior approval of the banking AND FINANCIAL SERVICES board.
The banking AND FINANCIAL SERVICES board shall adopt regulations with
respect to credit agreements that provide for a variable rate of service
charge, including but not limited to: (a) providing for disclosure to
the buyer by the seller of the circumstances under which the rate may
increase, any limitations on the increase, the effect of an increase and
an example of the payment terms that would result from an increase; (b)
A. 9064 151
providing for disclosure to the buyer by the seller of a history of the
fluctuations of the index over a reasonable period of time; and (c)
providing for notice to the buyer by the seller prior to any rate
increase or change in the terms of payment. The regulations shall allow
a seller, holder or financing agency after choosing an approved index to
choose a spread and a minimum and maximum rate of service charge at its
discretion. A retail instalment credit agreement, whether it provides
for a fixed or variable service charge, may provide for an introductory
rate of service charge at either a fixed or variable rate, provided that
the terms of such introductory rate, including, if applicable, the date
on which the introductory rate shall terminate, are disclosed to the
buyer. Such disclosure shall be contained on an application form or
pre-approved written solicitation as specified pursuant to subdivisions
one and one-a of section five hundred twenty of the general business
law. A change in the service charge rate upon expiration of an introduc-
tory rate shall not be considered a variable rate or a change in terms.
The service charge rate in effect after expiration of an introductory
rate may apply to all amounts due under the credit agreement regardless
of when incurred, and disclosure of the same shall be provided to the
buyer in the written agreement.
S 326. Clause (B) of subparagraph 5 of paragraph (a) of section 301 of
the business corporation law, as amended by chapter 555 of the laws of
1993, is amended to read as follows:
(B) Shall not contain any of the following words, or any abbreviation
or derivative thereof:
acceptance endowment loan
annuity fidelity mortgage
assurance finance savings
bank guaranty surety
benefit indemnity title
bond insurance trust
casualty investment underwriter
doctor lawyer
unless the approval of the superintendent of banks AND FINANCIAL
SERVICES or the superintendent of insurance, as appropriate, is attached
to the certificate of incorporation, or application for authority or
amendment thereof; or that the word "doctor" or "lawyer" or an abbrevi-
ation or derivation thereof is used in the name of a university faculty
practice corporation formed pursuant to section fourteen hundred twelve
of the not-for-profit corporation law or a professional service corpo-
ration formed pursuant to article fifteen of this chapter, or a foreign
professional service corporation authorized to do business in this state
pursuant to article fifteen-A of this chapter, the members or sharehold-
ers of which are composed exclusively of doctors or lawyers, respective-
ly, or are used in a context which clearly denotes a purpose other than
the practice of law or medicine.
S 327. Subparagraphs 5 and 8 of paragraph (b) of section 302 of the
business corporation law, subparagraph 8 of paragraph (b) as amended by
chapter 619 of the laws of 1976 and as renumbered by chapter 892 of the
laws of 1981, are amended to read as follows:
(5) Shall not prevent an "investment company" as defined in an act of
congress entitled "Investment Company Act of 1940" from including the
word "finance" or "bond" as part of its name, if the approval of the
superintendent of banks AND FINANCIAL SERVICES is attached to the
certificate of incorporation, application for authority, or amendment
thereof.
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(8) Shall not prevent a bank holding company, as long as it is
required to be registered under article III-A of the banking law or
under the federal Bank Holding Company Act, as each may be amended from
time to time, from using the words "bank", "banker" or "trusts" or any
abbreviation, derivative or combination thereof as part of its corporate
name, if the approval of the superintendent of banks AND FINANCIAL
SERVICES is attached to the certificate of incorporation, application
for authority, or amendment thereof.
S 328. Paragraph (y) of subdivision 6 of section 470.00 of the penal
law, as added by chapter 489 of the laws of 2000, is amended to read as
follows:
(y) any business or agency engaged in any activity which the super-
intendent of banks AND FINANCIAL SERVICES or the United States Secretary
of the Treasury determines, by regulation, to be an activity which is
similar to, related to, or a substitute for activity which any business
as described in this subdivision is authorized to engage.
S 329. Subdivision 61 of section 2.10 of the criminal procedure law,
as added by chapter 321 of the laws of 1992, is amended to read as
follows:
61. Investigators employed by the criminal investigations bureau when
assigned to such bureau by the superintendent of banks AND FINANCIAL
SERVICES and acting pursuant to their special duties as set forth in
article two-B of the banking law; provided, however, that nothing in
this subdivision shall be deemed to authorize such officer to carry,
possess, repair or dispose of a firearm unless the appropriate license
therefor has been issued pursuant to section 400.00 of the penal law.
S 330. Subdivision 2 of section 1107 of the surrogate's court proce-
dure act, as amended by chapter 655 of the laws of 1978, is amended to
read as follows:
2. The public administrators shall deposit to their respective credit
all moneys by them severally collected and received within 5 days after
receipt in demand, time, thrift or other accounts in one or more banks
or trust companies designated by the mayor, comptroller and commissioner
of finance for the deposit of moneys of the city of New York or in such
accounts in savings banks or savings and loan associations located in
their respective counties. All interest received on such deposits shall
be credited to the respective estates. In case of the insolvency or
involuntary liquidation of the depository all money so deposited shall
be entitled to equal priority of payment with that given by law to
deposits of money by the state superintendent of banks AND FINANCIAL
SERVICES.
S 331. Subdivision 1 of section 1208 of the surrogate's court proce-
dure act, as amended by chapter 655 of the laws of 1993, is amended to
read as follows:
1. All moneys collected shall be deposited by the public administrator
in a state or national bank, savings bank, savings and loan association
or trust company and shall, in case of the insolvency or voluntary or
involuntary liquidation of the depositary be entitled to equal priority
of payment with that given by law to deposits of moneys by the state
superintendent of banks AND FINANCIAL SERVICES.
S 332. Subparagraph (vi) of paragraph (a) of subdivision 1 of section
1310 of the surrogate's court procedure act, as amended by chapter 260
of the laws of 1968, is amended to read as follows:
(vi) a balance of money due on an accepted claim or account payable,
on account of dividends payable by the superintendent of banks AND
A. 9064 153
FINANCIAL SERVICES in liquidation of bank assets, to, or to the estate
of, or to a beneficiary designated by, a depositor or
S 333. Subdivision (a) of section 209 of the civil practice law and
rules is amended to read as follows:
(a) Cause of action accruing in foreign country. Where a cause of
action, whether originally accrued in favor of a resident or non-resi-
dent of the state, accrued in a foreign country with which the United
States or any of its allies were then or subsequently at war, or terri-
tory then or subsequently occupied by the government of such foreign
country, the time which elapsed between the commencement of the war, or
of such occupation, and the termination of hostilities with such coun-
try, or of such occupation, is not a part of the time within which the
action must be commenced. This section shall neither apply to nor in any
manner affect an action brought pursuant to section six hundred twenty-
five of the banking law against a banking organization or against the
superintendent of banks AND FINANCIAL SERVICES.
S 334. Subparagraphs (ii) and (iii) of paragraph 3 of subdivision (1)
of section 5205 of the civil practice law and rules, as amended by chap-
ter 24 of the laws of 2009, are amended to read as follows:
(ii) The superintendent of banks AND FINANCIAL SERVICES shall deter-
mine the amount of the adjustment based on the change in the Consumer
Price Index for All Urban Consumers, New York-Northern New Jersey-Long
Island, NY-NJ-CT-PA, published by the U.S. Department of Labor, Bureau
of Labor Statistics, for the most recent three-year period ending on
December thirty-first preceding the adjustment, with each adjusted
amount rounded to the nearest twenty-five dollars.
(iii) Beginning on April first, two thousand twelve, and at each
three-year interval ending on April first thereafter, the superintendent
of banks AND FINANCIAL SERVICES shall publish the current dollar amount
of the exemption provided in this section, subdivisions (e) and (h) of
section fifty-two hundred twenty-two, subdivision (a) of section fifty-
two hundred thirty and subdivision (e) of section fifty-two hundred
thirty-two of this [chapter] ARTICLE, together with the date of the next
scheduled adjustment. The publication shall be substantially in the form
set below:
CURRENT DOLLAR AMOUNT OF EXEMPTION FROM ENFORCEMENT OF JUDGMENT UNDER
NEW YORK CIVIL PRACTICE LAW AND RULES Sections 5205(l), 5222(e),
5222(h), 5230(a), and 5232(e)
The following is the current dollar amount of exemption from enforce-
ment of money judgments under CPLR sections 5205(l), 5222(e), 5222(h),
5230(a), and 5232(e), as required by CPLR section 5205(l)(3):
(Amount)
This amount is effective on April 1, (year) and shall not apply to
cases commenced before April 1, (year). The next adjustment is scheduled
for April 1, (year).
S 335. Section 7701 of the civil practice law and rules, as amended
by chapter 193 of the laws of 1976, is amended to read as follows:
S 7701. Special proceeding relating to express trust. A special
proceeding may be brought to determine a matter relating to any express
trust except a voting trust, a mortgage, a trust for the benefit of
creditors, a trust to carry out any plan of reorganization of real prop-
erty acquired on foreclosure or otherwise of a mortgage or mortgages
against which participation certificates have been issued and guaranteed
by a corporation and for which the superintendent of insurance or the
superintendent of banks AND FINANCIAL SERVICES has been or may hereafter
be appointed rehabilitator or liquidator or conservator, a trust to
A. 9064 154
carry out any plan of reorganization pursuant to sections one hundred
nineteen through one hundred twenty-three of the real property law or
pursuant to section seventy-seven B of the national bankruptcy act, and
trusts for cemetery purposes, as provided for by sections 8-1.5 and
8-1.6 of the estates, powers and trusts law.
Any party to the proceeding shall have the right to examine the trus-
tees, under oath, either before or after filing an answer or objections,
as to any matter relating to their administration of the trust, in
accordance with the provisions of article thirty-one OF THIS CHAPTER.
S 336. This act shall take effect immediately; provided, however:
(a) That the amendments to subdivision four of section 2405 of the
public authorities law made by section seventeen of this act shall be
subject to the expiration and reversion of such subdivision pursuant to
section 16 of chapter 915 of the laws of 1982, as amended, when upon
such date the provisions of section eighteen of this act shall take
effect.
(b) That the amendments to subdivision 6 of section 2405-b of the
public authorities law made by section nineteen of this act shall not
affect the repeal of such section and shall be deemed repealed there-
with.
(c) That the amendments to subdivision 6 of section 2405-c of the
public authorities law made by section twenty-one of this act shall not
affect the repeal of such section and shall be deemed repealed there-
with.
(d) Section forty of this act shall take effect on the same date and
in the same manner as subdivision d of section 28 of chapter 472 of the
laws of 2008, takes effect.
(e) That the amendments to subdivisions 3, 4 and 5 of section 12-a of
the banking law made by section forty-nine of this act shall not affect
the repeal of such section and shall be deemed repealed therewith.
(f) That the amendments to paragraph b of subdivision 19 of section 42
of the banking law made by section sixty-eight of this act shall not
affect the repeal of such subdivision and shall be deemed repealed ther-
ewith.
(g) Sections 70, 201, 209 and 211 of this act shall take effect on the
same date and in the same manner as subdivision e of section 28 of chap-
ter 472 of the laws of 2008, takes effect.
(h) That the amendments to subdivision 1 of section 96-d of the bank-
ing law made by section seventy-three of this act shall be subject to
the expiration and reversion of such subdivision pursuant to section 4
of chapter 526 of the laws of 1998, as amended, when upon such date the
provisions of section seventy-four of this act shall take effect.
(i) That the amendments to paragraph (b) of subdivision 5 of section
96-d of the banking law made by section seventy-three of this act shall
not affect the repeal of such subdivision and shall be deemed repealed
therewith.
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