senate Bill S5464

Signed By Governor
2011-2012 Legislative Session

Relates to certain powers and duties of the superintendent of banks

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Archive: Last Bill Status Via A8105 - 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
Jul 20, 2011 signed chap.182
Jul 08, 2011 delivered to governor
Jun 14, 2011 returned to assembly
passed senate
3rd reading cal.906
substituted for s5464
Jun 14, 2011 substituted by a8105
Jun 06, 2011 advanced to third reading
Jun 02, 2011 2nd report cal.
Jun 01, 2011 1st report cal.906
May 24, 2011 referred to banks

Votes

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S5464 - Bill Details

See Assembly Version of this Bill:
A8105
Law Section:
Banking Law
Laws Affected:
Amd §§36, 103, 202-b, 235, 402 & 640, Art 3-A, add §260-a, Bank L; amd §1306, RPAP L

S5464 - Bill Texts

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Relates to certain powers and duties of the superintendent of banks; authorizes the superintendent to set standards for creditworthiness for certain bonds and obligations; makes other technical amendments.

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BILL NUMBER:S5464

TITLE OF BILL:
An act
to amend the banking law, in relation
to access to examination and investigatory reports,
investment limits for banks, savings banks, references to
credit rating agencies, foreign banking corporations and
money transmitters, changes to the organization
certificate or by-laws of a savings bank and savings and
loan association and making related technical changes
thereto; and to amend the real property actions and
proceedings law, in relation to the disclosure of certain
filings made with the superintendent of banks

PURPOSE OF BILL:

This bill amends various sections of the Banking Law ("BL") to
clarify, among other things, the confidentiality of supervisory
information, the treatment of credit extensions and other credit
exposure by a bank or trust company to one person or entity, and the
references in the banking law to credit rating agencies and rated
securities.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends BL §36(10) to include examination and
investigative reports of licensed mortgage loan originators among the
types of reports protected by the section. It also makes certain
other conforming changes.

Section 2 of the bill amends the heading of BL §103 to add the words
"and other credit exposure" so that the heading of that section will
more accurately reflect the scope of that section to reflect
amendments relating to credit exposure resulting from derivatives and
other securities transactions. Section 2 of the bill also amends BL
103(1) to delete specific references to rating agencies and rating
grades and replace these references with a reference instead to
investment securities that meet standards of creditworthiness
established by the superintendent. Similar amendments are also made
to Paragraphs (j) and (k).

Section 3 of the bill adds "control of banking institutions" to the
title of Article III-A of the Banking Law. The purpose is to clearly
designate that Article III-A deals with not only bank holding
companies, but also control of banking institutions generally.

Section 4 of the bill amends BL §202-b(1) to make changes consistent
with those made to BL §103.

Section 5 of the bill amends Subdivisions 12-a and 21-a of BL §235 to
make changes consistent with those made to BL § 103.

Section 6 of the bill adds a new BL §260-a to provide for procedures
for a mutual savings bank to amend its organization certificate and
by-laws.

Section 7 of the bill amends BL §402 to make similar changes to the
savings and loan association article.

Section 8 of the bill amends BL §640(9)(v) and (vi) to make changes
consistent with those made to BL Section § 103.

Section 9 of the bill makes certain technical amendments to Real
Property Actions and Proceedings Law §1306.

Section 10 of the bill provides for the effective date.

EXISTING LAW:

BL §36.10 relates to the confidential and nonpublic nature of
confidential supervisory-related information.

BL § 103 relates to limits on loans and extensions of credit by a
bank or trust company to a single person or entity. The section
places maximum limits on exposures, whether via loans, purchases of
securities, or other extensions of credit, to a single person or
entity and provides various rules concerning exemptions, the effect
of collateral, and the like. Currently, the title of Section 103
refers to "loans, purchases of securities and total liabilities to
bank or trust company of anyone person." The title does not refer
generally to "credit exposure." Paragraphs (i), (j) and (k) of BL
§103(1) provide exemptions from the calculation of total credit
exposure for the purchase by a bank or trust company of certain
short-term bonds, debentures, notes or other obligations rated in one
of the three highest rating grades by an independent rating service
designated by the banking board.

Article III-A of the Banking Law is currently entitled "Bank Holding
Companies".

BL §202-b(1) relates to the requirement for New York-licensed
branches and agencies of foreign banks to maintain liquid assets on
deposit in New York.

BL §235(12-a) designates as a permissible savings bank investment
obligations of any corporation organized under the laws of any state
of the United States maturing
within 270 days, and which have the highest rating of an independent
rating service designated by the banking board.

BL §235(21-a) designates as a permissible savings bank investment,
subject to certain maximum amounts per issuer, 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 board, which has rated
such obligations.

Currently, there is no formal procedure in the Banking Law for a
mutual-form savings bank to make changes to its organization
certificate or bylaws.

BL §402 provides for the amendment of the articles of association and
bylaws of a savings and loan association.

BL §640(9) enumerates assets constituting "permissible investments"
for purposes of the requirement in BL §651, applicable to a licensed
money transmitter, which must maintain permissible investments in an
amount at least equal to the amount of its outstanding payment
instruments and outstanding travelers checks. Paragraphs (v) and (vi)
of BL .640(9) designate two permitted categories of notes, bonds and
other obligations having a rating in one of the three highest grades
by a nationally recognized investment service organization that has
been engaged regularly in rating such obligations for a period of not
less than five years.

PRIOR LEGISLATIVE HISTORY:

This is a new bill.

STATEMENT IN SUPPORT:

The amendment in Section 1 of the bill would extend the
confidentiality protection in BL §36(10) for examination and
investigation material to cover such materials related to MLOs, to
the same extent as it does for other regulated persons or entities.
In order to make sure that there is no gap in coverage, the
section is also amended to add "any other person or entity subject to
the supervision of the department."

The bill amends BL §§ 103, 202-b, 235 and 640, which currently
reference permitted investments for various types of supervised
entities, as including securities having a specified rating. The
amendment would eliminate references in the statute to rating
agencies, in favor of standards of creditworthiness established by
regulation by the Superintendent. In the recent past, the well-known
rating agencies have experienced a number of failures, including
failure to recognize credit problems at Enron and WorldCom, and
failure to recognize the problems with mortgage-backed securities
that led to rating agencies giving AA ratings to mortgage-related
securities that eventually experienced high default rates. This has
led to criticism of an over-reliance on ratings.
On the federal level, the Dodd-Frank Act mandates that federal

statutes no longer refer to
or require ratings by credit rating entities, and requires instead
that the federal banking and securities regulators establish
applicable standards of creditworthiness. These amendments would
enable New York to follow suit, although they do not mandate a total
elimination of references to rating agencies in the regulations to be
adopted. Given the large number of community and regional banks in
the states, it is recognized that some use of the ratings of rating
agencies or other evaluations of creditworthiness, combined with a
financial institution's own determinations, will provide a balanced
solution to criticisms of the use of ratings alone.

The bill also amends BL § 103(1) by adding a new unnumbered paragraph
at the end of such subdivision, which authorizes the Superintendent
to determine the manner and extent to which credit exposure resulting
from derivatives transaction, repurchase agreements, reverse
repurchase agreements, securities lending transactions and securities
borrowing transactions must be taken into account by a bank for
purposes of the lending limit. Section 610 of the Dodd-Frank Act
contains similar requirements with respect to national banks; Section
611 of the Dodd-Frank Act prohibits an insured state bank from
engaging in derivatives transactions unless its chartering state's
law with respect to lending limits takes into consideration the
credit exposure to derivative transactions.
While there already exists some flexibility in the lending limit
statute to interpret what constitutes credit exposure, the amendment
is designed to provide certainty that New York law will comply with
the requirements of the Dodd Frank Act.

Article XI of the Banking Law does not currently provide a mechanism
for a mutual savings bank to amend its charter. Proposed BL §260-a
would provide for such amendments, along lines that currently apply
to a mutual form savings and loan association.

BL §402 is amended to make clear that any appeal of a ruling of the
Superintendent regarding an amendment to the charter of a mutual
savings and loan association is conducted under Article 78 of the
CPLR. This conforms to the new provisions of BL .260-a.

BUDGET IMPLICATIONS:

There are no budget implications from this bill.

EFFECTIVE DATE:

The bill would take effect immediately upon enactment, except that
sections 2, 4, 5 and 8 shall take effect only at such time as the
Superintendent certifies that the Superintendent has adopted the
regulations required by this act.

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

                                  5464

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 24, 2011
                               ___________

Introduced  by  Sen. GRIFFO -- (at request of the Banking Department) --
  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 access to examination
  and investigatory reports, investment limits for banks, savings banks,
  references to credit rating agencies, foreign banking corporations and
  money transmitters, changes to the organization certificate or by-laws
  of a savings bank and savings and loan association and making  related
  technical  changes thereto; and to amend the real property actions and
  proceedings law, in relation to the disclosure of certain filings made
  with the superintendent of banks

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

  Section 1. Subdivision 10 of section 36 of the banking law, as amended
by chapter 472 of the laws of 2008, is amended to read as follows:
  10. All reports of examinations and investigations, correspondence and
memoranda  concerning  or  arising  out of such examination and investi-
gations, including any duly authenticated copy or copies thereof in  the
possession  of  any  banking  organization,  bank holding company or any
subsidiary thereof (as such terms "bank holding  company"  and  "subsid-
iary"  are  defined in article three-A of this chapter), any corporation
or any other entity affiliated with a banking  organization  within  the
meaning  of  subdivision six of this section and any non-banking subsid-
iary of a corporation or any other entity which is  an  affiliate  of  a
banking  organization  within  the  meaning of subdivision six-a of this
section, foreign banking corporation, licensed lender,  licensed  casher
of   checks,  licensed  mortgage  banker,  registered  mortgage  broker,
LICENSED MORTGAGE  LOAN  ORIGINATOR,  licensed  sales  finance  company,
registered  mortgage  loan  servicer, licensed insurance premium finance
agency, licensed transmitter of  money,  licensed  budget  planner,  ANY
OTHER PERSON OR ENTITY SUBJECT TO SUPERVISION UNDER THIS CHAPTER, or the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09173-07-1

S. 5464                             2

department,  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 publication thereof, in which event the superintendent
may publish or authorize the publication of a copy of any such report or
any part thereof in such manner as may be deemed proper OR  UNLESS  SUCH
LAWS  SPECIFICALLY  AUTHORIZE  SUCH DISCLOSURE. For the purposes of this
subdivision, "reports of examinations and investigations, and any corre-
spondence and memoranda concerning or arising out of  such  examinations
and investigations", includes any such materials of a bank, insurance or
securities  regulatory  agency  or any unit of the federal government or
that of this state any other state or that  of  any  foreign  government
which  are  considered confidential by such agency or unit and which are
in the possession of the department or which are otherwise  confidential
materials  that  have been shared by the department with any such agency
or unit and are in the possession of such agency or unit.
  S 2. The section heading, paragraphs (i), (j), (k),  and  the  closing
paragraph  of  subdivision  1  of  section  103  of the banking law, the
section heading as amended by chapter 619 of the laws of 1937, paragraph
(i) and the closing paragraph of subdivision 1 as amended by  chapter  1
of the laws of 1983, paragraphs (j) and (k) of subdivision 1 as added by
chapter 367 of the laws of 1997, are amended to read as follows:
  Restrictions  on  loans,  purchases of securities [and], total liabil-
ities AND OTHER CREDIT EXPOSURES to A bank or trust company of  any  one
person.
  (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 board] MEET THE STANDARDS OF CREDIT-
WORTHINESS ESTABLISHED BY REGULATION BY THE  SUPERINTENDENT;  (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 board] SUPERINTENDENT 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 board]
SUPERINTENDENT from the requirements of section thirty-two of this chap-
ter,  the limitations of this subdivision shall not apply to the invest-
ment 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 invest-
ment, 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 board] MEET THE STANDARDS OF  CREDITWORTHINESS
ESTABLISHED  BY  REGULATION  BY  THE  SUPERINTENDENT;  (ii) for any such
bonds, debentures, notes or other obligations, the  foreign  nation,  or
any  political subdivision, agency or instrumentality thereof, has guar-
anteed 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 prin-
cipal and interest; (iii) such investments do not exceed the per  centum

S. 5464                             3

applicable  to such obligor of the capital stock, surplus fund and undi-
vided profits of such bank or trust company as the superintendent  shall
approve[,];  and  (iv) such investments comply with such limitations 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 board]
SUPERINTENDENT from the requirements of section thirty-two of this chap-
ter, 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 board] MEET THE STANDARDS OF CREDITWORTHINESS ESTABLISHED
BY  REGULATION  BY  THE  SUPERINTENDENT;  (ii) for any such direct obli-
gations, the foreign nation, or any  political  subdivision,  agency  or
instrumentality  thereof, has guaranteed payment (by guaranty or commit-
ment to purchase or otherwise) of the principal and interest thereof, 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)  the
purchase  price of such securities does not exceed the per centum appli-
cable to the obligor of such securities of the  capital  stock,  surplus
fund  and  undivided profits of such bank or trust company as the super-
intendent shall approve; and (iv) such purchase complies with such limi-
tations and conditions as the  superintendent  may  from  time  to  time
prescribe.
  The  [banking  board]  SUPERINTENDENT shall be empowered to promulgate
rules and regulations as shall be appropriate to carry out the  purposes
of this subdivision.
  THE  SUPERINTENDENT  ALSO  SHALL BE AUTHORIZED TO DETERMINE THE MANNER
AND EXTENT TO WHICH CREDIT EXPOSURE  RESULTING  FROM  DERIVATIVE  TRANS-
ACTIONS,  REPURCHASE  AGREEMENTS, REVERSE REPURCHASE AGREEMENTS, SECURI-
TIES LENDING TRANSACTIONS AND SECURITIES BORROWING TRANSACTIONS SHALL BE
TAKEN INTO ACCOUNT FOR  PURPOSES  OF  THIS  SECTION.  AS  USED  IN  THIS
SECTION, THE TERM "DERIVATIVE TRANSACTION" INCLUDES ANY TRANSACTION THAT
IS  A  CONTRACT, AGREEMENT, SWAP, WARRANT, NOTE OR OPTION THAT IS BASED,
IN WHOLE OR IN PART, ON THE VALUE OF, ANY INTEREST IN, ANY  QUANTITATIVE
MEASURE  OF,  OR  THE  OCCURRENCE  OF ANY EVENT RELATING TO, ONE OR MORE
COMMODITIES, SECURITIES, CURRENCIES, INTEREST OR OTHER RATES, INDICES OR
OTHER ASSETS. IN MAKING SUCH DETERMINATIONS, THE SUPERINTENDENT MAY, BUT
IS NOT REQUIRED TO, ACT BY ORDER OR REGULATION.
  S 3. The article heading of article 3-A of the banking law,  as  added
by chapter 146 of the laws of 1961, is amended to read as follows:
         BANK HOLDING COMPANIES; CONTROL OF BANKING INSTITUTIONS
  S  4. Subdivision 1 of section 202-b of the banking law, as amended by
chapter 131 of the laws of 2002, is 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  [bank-
ing  board]  SUPERINTENDENT  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

S. 5464                             4

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
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 board or, if the obligation is rated
by more than one such service, the highest rating of at least  two  such
services]  THAT  MEET  THE  STANDARDS OF CREDITWORTHINESS ESTABLISHED BY
REGULATION BY THE SUPERINTENDENT, 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.
  S 5. Paragraph (a) of subdivision 12-a and subdivision 21-a of section
235 of the banking law, as added by chapter 674 of the laws of 1968, are
amended to read as follows:
  (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 board] MEET THE STAND-
ARDS   OF   CREDITWORTHINESS   ESTABLISHED   BY   REGULATION   BY    THE
SUPERINTENDENT.
  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 board,

S. 5464                             5

which has rated such obligations] MEET THE STANDARDS OF CREDITWORTHINESS
ESTABLISHED BY REGULATION  BY  THE  SUPERINTENDENT,  provided  that  the
aggregate amount invested in the obligations of any single issuer pursu-
ant  to  this  subdivision and pursuant to subparagraph (2) 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  obligations  of  any
single issuer pursuant to this subdivision and pursuant to any provision
of this section specifically authorizing such investment, may not exceed
the percentage limitations contained in any such provision.
  S  6. The banking law is amended by adding a new section 260-a to read
as follows:
  S 260-A. AMENDMENT OF  ORGANIZATION  CERTIFICATE  AND  BY-LAWS.    ANY
PROPOSED  CHANGE  IN  THE ORGANIZATION CERTIFICATE OR THE BY-LAWS OF ANY
SAVINGS BANK SHALL BE SUBMITTED TO  THE  SUPERINTENDENT  AND,  UPON  THE
SUPERINTENDENT'S WRITTEN APPROVAL THEREOF, SHALL BE POSTED IN A CONSPIC-
UOUS  PLACE  IN  THE  OFFICE  OF THE SAVINGS BANK FOR THIRTY DAYS.  SUCH
PROPOSED CHANGES MAY THEREAFTER  BE  INCORPORATED  IN  THE  ORGANIZATION
CERTIFICATE  OR THE BY-LAWS OF THE SAVINGS BANK BY BEING DULY ADOPTED BY
ITS TRUSTEES. A COPY OF SUCH CHANGE SHALL BE FILED IN THE OFFICE OF  THE
SUPERINTENDENT WITHIN THIRTY DAYS AFTER SUCH ADOPTION.
  S  7. Section 402 of the banking law, as amended by chapter 849 of the
laws of 1964, is amended to read as follows:
  S 402. Amendment of articles of association and by-laws[;  application
to  supreme court].  [1.] Any proposed change in the articles of associ-
ation, certificate  of  association,  organization  certificate  or  the
by-laws  of  any  savings and loan association shall be submitted to the
superintendent and, upon the superintendent's written approval  thereof,
shall  be posted in a conspicuous place in the office of the association
for thirty days. Such proposed changes may thereafter be incorporated in
the articles of association, certificate  of  association,  organization
certificate  or  the by-laws of the association by being duly adopted by
its directors. A copy of such change shall be filed in the office of the
superintendent within thirty days after such adoption.
  [2. Any association may, upon notice to the superintendent,  apply  to
any  justice  of the supreme court of the district wherein the principal
office of such association is located, for a review of  the  superinten-
dent's refusal to approve any proposed change in its articles of associ-
ation,  certificate of association, organization certificate or by-laws.
Any proposed change approved by such court may be  incorporated  in  the
articles   of  association,  certificate  of  association,  organization
certificate or the by-laws of such association by being duly adopted  by
its directors. A copy of such change shall be filed in the office of the
superintendent within thirty days after such adoption.]
  S  8.  Paragraphs  (v) and (vi) of subdivision 9 of section 640 of the
banking law, as added by chapter 374 of the laws of 1979, are amended to
read as follows:
  (v) interest-bearing bills, notes, bonds, debentures  or  other  obli-
gations  issued or guaranteed by the United States or any state or other
local governmental entity  or  any  agent  or  instrumentality  thereof,
[bearing  a  rating  of  one of the three highest grades by a nationally
recognized investment service organization that has been  engaged  regu-
larly in rating state and municipal issues for a period of not less than
five  years] WHICH MEET THE STANDARDS OF CREDITWORTHINESS ESTABLISHED BY
REGULATION BY THE SUPERINTENDENT;

S. 5464                             6

  (vi) interest-bearing bills, notes,  bonds,  debentures  or  preferred
stock  traded on any national securities exchange or on a national over-
the-counter market or [bearing a rating of  one  of  the  three  highest
grades  by  a nationally recognized investment service organization that
has been engaged regularly in rating corporate debt or equity issues for
a  period  of  not  less  than  five  years] WHICH MEET THE STANDARDS OF
CREDITWORTHINESS ESTABLISHED BY REGULATION BY THE SUPERINTENDENT; and
  S 9. Subdivisions 3 and 4 of section 1306 of the real property actions
and proceedings law, as added by chapter 507 of the laws  of  2009,  are
amended to read as follows:
  3.  Within  one  hundred  eighty  days  of  the effective date of this
[subdivision] SECTION, or such later  time  as  the  superintendent  may
determine,  the  superintendent shall develop with the assistance of the
commissioner of the division of housing and community renewal, an  elec-
tronic  database that shall be capable of receiving all filings required
by this section.
  4. The information provided to the  superintendent  pursuant  to  this
[subdivision]  SECTION shall not be subject to article six of the public
officers law or paragraphs (a), (c) and (d) of subdivision one or subdi-
vision six of section ninety-four of the public officers law.  All  such
information  shall  be  used  by  the superintendent exclusively for the
purposes of monitoring on a statewide basis the  extent  of  foreclosure
filings  within  this  state, to perform an analysis of loan types which
were the subject of a pre-foreclosure notice and directing as  appropri-
ate  available  public and private foreclosure prevention and counseling
services to borrowers at risk of  foreclosure.  The  superintendent  may
share  information  contained  in  the  database with housing counseling
agencies designated by the division of housing and community renewal  as
well  as  with  other state agencies with jurisdiction over housing, for
the purpose of coordinating or securing help for borrowers  at  risk  of
foreclosure.
  S  10.  This act shall take effect immediately; provided that sections
two, four, five and eight of this act shall take effect only  upon  such
time  as  the superintendent of banks shall certify that the superinten-
dent has adopted the regulations required  by  this  act;  and  provided
further  that  the  superintendent of banks shall notify the legislative
bill drafting commission upon the occurrence of  such  certification  in
order  that the commission may maintain an accurate and timely effective
data base of the official text of the laws of the state of New  York  in
furtherance of effectuating the provisions of section 44 of the legisla-
tive law and section 70-b of the public officers law.

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