senate Bill S5004

Signed By Governor
2011-2012 Legislative Session

Amends the definition of "bank holding company" to replace the phrase "a banking institution" to "two or more banking institutions"

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Archive: Last Bill Status Via A8157 - 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.449
Aug 05, 2011 delivered to governor
Jun 17, 2011 returned to assembly
passed senate
3rd reading cal.783
substituted for s5004
Jun 17, 2011 substituted by a8157
May 24, 2011 advanced to third reading
May 23, 2011 2nd report cal.
May 18, 2011 1st report cal.783
May 02, 2011 referred to banks

Votes

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S5004 - Bill Details

See Assembly Version of this Bill:
A8157
Law Section:
Banking Law
Laws Affected:
Amd ยงยง142-a, 105, 240 & 396, Bank L

S5004 - Bill Texts

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Amends the definition of "bank holding company" to replace the phrase "a banking institution" to "two or more banking institutions".

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BILL NUMBER:S5004

TITLE OF BILL:
An act
to amend the banking law, in relation to the definition of bank
holding company

PURPOSE:
This bill makes technical changes to Chapter 217 of the Laws
of 2010 with respect to the definition of bank holding company.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend Banking Law section 142-a
subdivision 2 to define a bank holding company as two or more banking
institutions. This would restore the prior definition of bank holding
company as two or more banking institutions. The reason for retaining
the definition of bank holding company in this section is so that the
potential home office protection for the principal office of
subsidiaries of one-bank holding companies will remain.

Section 2 of the bill would amend Banking Law section 105 concerning
branching to define a bank holding company as two or more banking
institutions. This would restore the prior definition of bank holding
company as two or more banking institutions. This change back would
retain the status quo with respect to home office protection for
principal offices of certain banking institutions that are
subsidiaries of one-bank holding companies which are subject to home
office protection.

Section 3 of the bill would amend Banking Law section 240 concerning
branching to define a bank holding company as two or more banking
institutions.

Section 4 of the bill would amend Banking Law section 396 concerning
branching to define a bank holding company as two or more banking
institutions.

Section 5 provides for an immediate effective date.

JUSTIFICATION/STATEMENT IN SUPPORT:
Chapter 217 of the Laws of 2010 made changes to the Banking Law to
streamline regulation of bank holding companies. Due to an oversight,
the definition of bank holding company was changed in Banking Law
sections 142-a, 105, 240 and 396 which relate to branching. This bill
would amend the term bank holding company to retain the former
definition of two bank holding company in the aforementioned
sections. This change is necessary because those provisions extend
New York's home office protection to the principal office of a state
bank or trust company or national bank in a city or village of
limited population, unless the principal office is
that of a bank which is a subsidiary of a bank holding company which
was previously defined under New York law as a two bank holding
company. This maintains the status quo to insure home office
protection for banks which were receiving the same.

LEGISLATIVE HISTORY:


This is a new bill intended to make technical corrections
to Chapter 217 of the Laws of 2010.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This bill would take effect immediately.

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

                                  5004

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 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 definition  of  bank
  holding company

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

  Section 1.  Subdivision 2 of section 142-a  of  the  banking  law,  as
amended  by  chapter  217  of  the  laws  of 2010, is amended to read as
follows:
  2. 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 banking institution, whether through
the ownership of voting stock of such 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 indirect-
ly,  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 percent or more of
the voting stock of such banking institution, but  no  person  shall  be
deemed to control a banking institution solely by reason of his being an
officer  or  director of such banking institution or company. As used in
this section, the terms "bank holding company" and "banking institution"
shall have the meanings as defined in section one hundred  forty-one  of
this  article,  except  that the definition of "bank holding company" is
modified to change  the  phrase  "a  banking  institution"  wherever  it
appears  therein  to  "[one]  TWO  or more banking institutions" and the
definition of "banking institution" is modified to add a national  bank-
ing association, the principal office of which is located in this state.
  S 2. Paragraph (a) of subdivision 1 of section 105 of the banking law,
as  amended  by  chapter  217 of the laws of 2010, is amended to read as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11212-01-1

S. 5004                             2

  (a) No bank or trust company or officer, director, agent  or  employee
thereof, shall transact any part of its usual business of banking at any
place  other  than  its  principal  office,  except that a bank or trust
company may open and occupy one or more branch offices at  any  location
in the state, provided: (i) that the requirements of section twenty-nine
of this chapter are met and (ii) that, except for the city or village in
which  its  principal  office  is located, in no event shall a branch be
opened and occupied pursuant to this subdivision in a  city  or  village
with  a population of fifty thousand or less in which is already located
the principal office of another bank, trust company or national  banking
association,  other  than  a  bank holding company, if such bank holding
company is a banking institution, or a  banking  subsidiary  of  a  bank
holding company (as such terms "bank holding company", "banking institu-
tion"  and  "banking  subsidiary"  are  defined  in  section one hundred
forty-one of this chapter) except that the definition of  "bank  holding
company"  is modified to change the phrase "a banking institution" wher-
ever it appears therein to "[one] TWO or more banking institutions"  and
the  definition  of  "banking institution" is modified to add a national
banking association,  the  principal  office  of  which  institution  is
located  in  this state, except, in the case of a conversion pursuant to
the provisions of this  article,  branch  offices  occupied  immediately
prior  thereto or except for the purpose of acquiring by merger, sale or
otherwise the business and property of a bank, trust company or national
banking association, whether in liquidation or  doing  business  in  the
usual course.
  S 3. Paragraph (c) of subdivision 2 of section 240 of the banking law,
as  amended  by  chapter  217 of the laws of 2010, is amended to read as
follows:
  (c) Except for the city or village in which its  principal  office  is
located,  no  branch office may be opened and occupied pursuant to para-
graph (a) of this subdivision in any city or village with  a  population
of  fifty thousand or less and in which is already located the principal
office of a bank, trust company or national banking  association,  other
than  a  bank holding company, if such bank holding company is a banking
institution, or a banking subsidiary of a bank holding company, as  such
terms "bank holding company", "banking institution" and "banking subsid-
iary"  are  defined  in  section  one  hundred forty-one of this chapter
except that the definition of "bank  holding  company"  is  modified  to
change the phrase "a banking institution" wherever it appears therein to
"[one]  TWO or more banking institutions" and the definition of "banking
institution" is modified to add  a  national  banking  association,  the
principal office of which institution is located in this state.
  S 4. Paragraph (b) of subdivision 2 of section 396 of the banking law,
as  amended  by  chapter  217 of the laws of 2010, is amended to read as
follows:
  (b) Except for the city or village in which its  principal  office  is
located,  no branch office may hereafter be opened and occupied pursuant
to paragraph (a) of this subdivision in any city or village with a popu-
lation of less than thirty thousand and in which is already located  the
principal  office  of  a bank, trust company or national banking associ-
ation, other than a bank holding company, if such bank  holding  company
is  a  banking  institution,  or  a banking subsidiary of a bank holding
company, as such terms "bank holding company", "banking institution" and
"banking subsidiary" are defined in section  one  hundred  forty-one  of
this  chapter  except  that  the definition of "bank holding company" is
modified to change  the  phrase  "a  banking  institution"  wherever  it

S. 5004                             3

appears  therein  to  "[one]  TWO  or more banking institutions" and the
definition of "banking institution" is modified to add a national  bank-
ing association, the principal office of which institution is located in
this state.
  S 5. This act shall take effect immediately.

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