senate Bill S4612A

Signed By Governor
2011-2012 Legislative Session

Relates to the exercise of federally permitted powers by a state chartered banking institution

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Archive: Last Bill Status Via A8156 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2011 signed chap.448
Aug 05, 2011 delivered to governor
Jun 15, 2011 returned to assembly
passed senate
3rd reading cal.1059
substituted for s4612a
Jun 15, 2011 substituted by a8156
Jun 14, 2011 advanced to third reading
Jun 13, 2011 2nd report cal.
Jun 07, 2011 1st report cal.1059
Jun 02, 2011 print number 4612a
amend and recommit to banks
Apr 13, 2011 referred to banks

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S4612 - Bill Details

See Assembly Version of this Bill:
A8156
Law Section:
Banking Law
Laws Affected:
Amd §12-a, Bank L

S4612 - Bill Texts

view summary

Relates to the exercise of federally permitted powers by a state chartered banking institution; requires a banking institution to make an application with one or more state chartered banking institutions to the superintendent indicating intent to exercise the federally permitted power and the basis for doing so.

view sponsor memo
BILL NUMBER:S4612

TITLE OF BILL:
An act
to amend the banking law, in relation to the exercise of federally
permitted powers by a state chartered banking institution

PURPOSE:
To expedite the consideration of wild card applications by mandating
that they be posted on the Banking Department web site and made
available for public consideration within 14 days of their receipt
and requiring the superintendent to notify applicants within 10 days
of making a decision.

SUMMARY OF PROVISIONS:
Section one of the bill amends subdivision 3 of section 12a of the
banking law to mandate that wild card applications be posted on the
Banking Department web site and made available for public
consideration within 14 days of their receipt and requiring the
superintendent to notify applicants within 10 days of making a
decision on the request.
The superintendent's failure to comply with the posting and notice
provisions will allow an applicant to petition the superintendent to
act on the application. The subsequent failure of the superintendent
to act within 30 days of a petition shall be deemed approval of the
application. Currently, there is no deadline by which applications
have to be posted or when applicants need to be notified.

JUSTIFICATION:
New York banking law authorizes state-chartered credit unions and
banks to apply to the Banking Department for permission to exercise
the same powers as their federally chartered counterparts. This power
is critical to the state, as it gives state-chartered institutions
the ability to exercise the same power as federally chartered
institutions while still maintaining state-charter status. Consumers
receive the benefit of financial institutions being able to offer
more services, and the state retains the money it gains from state
chartered institutions and the ability to engage in continued
regulation of the financial industry.

Unfortunately, in spite of the importance of this power, its
implementation has provided no benefits to credit unions. Credit
Unions seeking to exercise their wild card powers have seen their
applications delayed to the point where they are not even considered.

The amendments made by this bill will make wild card powers a truly
useful instrument for all state-chartered financial institutions. By
mandating that applications made by either a bank or credit union be
posted in 14 days, credit unions will no longer be faced with
endless delays in the official consideration of wild card proposals.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.


EFFECTIVE DATE:
Immediate with provisions.

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

                                  4612

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 13, 2011
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to the exercise  of  feder-
  ally permitted powers by a state chartered banking institution

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

  Section 1. Subdivision 3 of  section  12-a  of  the  banking  law,  as
amended  by  section  88 of part A of chapter 62 of the laws of 2011, is
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.   If such application meets  the  requirements  of
this  section,  the  superintendent  shall,  WITHIN FOURTEEN DAYS OF ITS
RECEIPT, post such application upon the bulletin board of the department
pursuant to section forty-two of this article. After promptly  reviewing
such  application,  the  superintendent shall determine, consistent with
the standards set forth in subdivision five of this section, whether  to
approve  such  application  subject  to such terms and conditions as the
superintendent  may  deem  appropriate,  in  the  superintendent's  sole
discretion.  Such  determination,  shall  be  made by the superintendent
within forty-five days after the posting  of  such  application  by  the
superintendent,  provided however that the superintendent 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10810-01-1

S. 4612                             2

that  such  period  of  time may be extended for an additional period of
time with the written consent of the applicant or applicants. The super-
intendent shall not act upon the application prior to thirty days  after
such  application has been posted. If the superintendent shall determine
not to approve of such application, the superintendent shall, WITHIN TEN
DAYS OF SUCH DETERMINATION, notify the applicant or applicants in  writ-
ing  that  the  applicant  or applicants may not exercise such federally
permitted power. If the superintendent approves  such  application,  the
superintendent  shall,  WITHIN  TEN  DAYS  OF APPROVING THE APPLICATION,
notify the applicant or applicants in writing thereof, and the applicant
or applicants may exercise such federally  permitted  power  subject  to
such  terms  and conditions as the superintendent may have approved.  IF
THE SUPERINTENDENT DECLINES TO APPROVE SUCH APPLICATION, THE SUPERINTEN-
DENT SHALL, WITHIN TEN DAYS OF MAKING  SUCH  DETERMINATION,  NOTIFY  THE
APPLICANT  OR  APPLICANTS IN WRITING THEREOF. AN APPLICANT OR APPLICANTS
MAY, UPON THE SUPERINTENDENT'S FAILURE TO ACT  UPON  AN  APPLICATION  OR
PROVIDE  NOTICE WITHIN THE TIME PERIODS SET FORTH IN THIS SECTION, PETI-
TION THE SUPERINTENDENT TO ACT UPON THE APPLICATION. THE FAILURE OF  THE
SUPERINTENDENT  TO  ACT  UPON THE APPLICATION OR NOTIFY THE APPLICANT OR
APPLICANTS, IN WRITING, AS TO THE REASONS WHY  ACTION  CANNOT  BE  TAKEN
WITHIN  THIRTY DAYS OF RECEIPT OF SUCH PETITION SHALL BE DEEMED APPROVAL
OF THE APPLICATION BY THE SUPERINTENDENT. Notwithstanding any other law,
the superintendent may 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 applicant or applicants pursuant  to  subdivision  two  of
this section, subject to such terms and conditions as the superintendent
shall find necessary and appropriate.
  S  2.  This act shall take effect immediately, provided, however, that
the amendments to subdivision 3 of section 12-a of the banking law  made
by  section  one of this act shall not affect the repeal of such section
and shall be deemed repealed therewith.

Co-Sponsors

S4612A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A8156
Law Section:
Banking Law
Laws Affected:
Amd §12-a, Bank L

S4612A (ACTIVE) - Bill Texts

view summary

Relates to the exercise of federally permitted powers by a state chartered banking institution; requires a banking institution to make an application with one or more state chartered banking institutions to the superintendent indicating intent to exercise the federally permitted power and the basis for doing so.

view sponsor memo
BILL NUMBER:S4612A

TITLE OF BILL:
An act
to amend the banking law, in relation to the exercise of federally
permitted powers by a state chartered banking institution

PURPOSE:
To expedite the consideration of wild card applications by
mandating that properly submitted applications be posted on the
Department's website and made available for public consideration
within 120 days of their receipt and requiring the superintendent to
notify applicants within 10 days of making a decision.

SUMMARY OF PROVISIONS:
Section one of the bill amends subdivision 3 of
section 12-a of the banking law to mandate that wild card
applications be reviewed and posted on the Department's website and
made available for public consideration within 120 days of their
receipt and requiring the superintendent to notify applicants within
10 days of making a decision on the request. The superintendent's
failure to comply with the posting and notice provisions will allow
an applicant to petition the superintendent to act on the
application. The subsequent failure of the superintendent to act
within 30 days of a petition shall be deemed denial of the
application with an opportunity for the applicant to appeal.
Currently, there is no deadline by which applications have to be
posted or when applicants need to be notified.

JUSTIFICATION:
New York banking law authorizes state-chartered credit
unions and banks to apply to the Banking Department for permission to
exercise the same powers as their federally chartered counterparts.
This power is critical to the state, as it give state-chartered
institutions the ability to exercise the same power as federally
chartered institutions while still maintaining state-charter status.
Consumers receive the benefit of financial institutions being able to
offer more services, and the state retains the money it gains from
state-chartered institutions and the ability to engage in continued
regulation of the financial industry.

Unfortunately, in spite of the importance of this power, its
implementation has provided no benefits to credit unions. Credit
unions seeking to exercise their wild card powers have seen their
applications delayed to the point where they are not even considered.
The amendments made by this bill will make wild card powers a truly
useful instrument for all state-chartered financial institutions. By
mandating that applications made by either a bank or credit union be
reviewed in 30 days, credit unions will no longer be faced with
endless delays in the official consideration of wild card proposals.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.


EFFECTIVE DATE:
Immediately after enactment.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4612--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 13, 2011
                               ___________

Introduced  by  Sens.  GRIFFO, AVELLA -- read twice and ordered printed,
  and when printed to be committed to the Committee on Banks --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

AN ACT to amend the banking law, in relation to the exercise  of  feder-
  ally permitted powers by a state chartered banking institution

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

  Section 1. Subdivision 3 of  section  12-a  of  the  banking  law,  as
amended  by  section  88 of part A of chapter 62 of the laws of 2011, is
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 HAVE ONE HUNDRED  TWENTY
DAYS  FROM  RECEIPT OF THE APPLICATION TO DETERMINE WHETHER IT MEETS THE
REQUIREMENTS OF THIS SECTION, PROVIDED THAT SUCH PERIOD MAY BE  EXTENDED
FOR  AN ADDITIONAL PERIOD OF TIME WITH THE WRITTEN CONSENT OF THE APPLI-
CANT OR APPLICANTS. If such application meets the requirements  of  this
section,  the superintendent shall post such application upon the bulle-
tin board of the department pursuant to section forty-two of this  arti-
cle.  [After  promptly reviewing such application, the] IF SUCH APPLICA-
TION DOES NOT MEET THE REQUIREMENTS OF THIS SECTION, THE  SUPERINTENDENT
SHALL,  WITHIN  TEN  DAYS OF SUCH DETERMINATION, NOTIFY THE APPLICANT OR
APPLICANTS OF THE REASONS WHY THE APPLICATION FAILS TO MEET THE REQUIRE-
MENTS. THE superintendent shall determine, consistent with the standards

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10810-02-1

S. 4612--A                          2

set forth in subdivision five of this section, whether to  approve  such
application  subject  to such terms and conditions as the superintendent
may deem appropriate, in  the  superintendent's  sole  discretion.  Such
determination,  shall  be  made  by the superintendent within forty-five
days after the posting of  such  application  [by  the  superintendent],
provided  however  that  the  superintendent 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] SIXTY 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 superintendent shall
not act upon the application prior to thirty days after such application
has  been  posted. [If the superintendent shall determine not to approve
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  approves  such
application,  the superintendent shall, WITHIN TEN DAYS OF APPROVING THE
APPLICATION, notify the applicant or applicants in writing thereof,  and
the  applicant or applicants may exercise such federally permitted power
subject to such terms and conditions  as  the  superintendent  may  have
approved.    IF THE SUPERINTENDENT DECLINES SUCH APPLICATION, THE SUPER-
INTENDENT SHALL, WITHIN TEN DAYS OF MAKING  SUCH  DETERMINATION,  NOTIFY
THE  APPLICANT  OR APPLICANTS IN WRITING THEREOF. AN APPLICANT OR APPLI-
CANTS MAY,  UPON  THE  SUPERINTENDENT'S  FAILURE  TO  COMPLY  WITH  THIS
SECTION,  PETITION  THE  SUPERINTENDENT TO ACT UPON THE APPLICATION. THE
FAILURE OF THE SUPERINTENDENT TO ACT UPON THE APPLICATION OR NOTIFY  THE
APPLICANT OR APPLICANTS, IN WRITING, AS TO THE REASONS WHY ACTION CANNOT
BE  TAKEN WITHIN THIRTY DAYS OF RECEIPT OF SUCH PETITION SHALL BE DEEMED
A DENIAL OF THE APPLICATION, WHICH SHALL BE SUBJECT TO JUDICIAL  REVIEW.
Notwithstanding  any other law, the superintendent may make the approval
of an application under this section applicable to  one  or  more  addi-
tional  state chartered banking institutions that are qualified to exer-
cise the same federally permitted powers as the applicant or  applicants
pursuant  to  subdivision two of this section, subject to such terms and
conditions as the superintendent shall find necessary and appropriate.
  S 2. This act shall take effect immediately, provided,  however,  that
the  amendments to subdivision 3 of section 12-a of the banking law made
by section one of this act shall not affect the repeal of  such  section
and shall be deemed repealed therewith.

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