senate Bill S6738A

Signed By Governor
2011-2012 Legislative Session

Relates to the consolidation of the bank and insurance departments; repealer

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Archive: Last Bill Status Via A9820 - 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 18, 2012 signed chap.155
Jul 06, 2012 delivered to governor
Jun 21, 2012 returned to assembly
passed senate
3rd reading cal.476
substituted for s6738a
Jun 21, 2012 substituted by a9820a
Jun 04, 2012 amended on third reading 6738a
Mar 30, 2012 advanced to third reading
Mar 29, 2012 2nd report cal.
Mar 28, 2012 1st report cal.476
Mar 15, 2012 referred to banks

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Bill Amendments

Original
A (Active)
Original
A (Active)

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S6738 - Bill Details

See Assembly Version of this Bill:
A9820A
Law Section:
Banking Law
Laws Affected:
Amd Various Laws, generally

S6738 - Bill Texts

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Relates to the consolidation of the bank and insurance departments.

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BILL NUMBER:S6738

TITLE OF BILL:

An act to amend the banking law, the business corporation law, the civil
practice law and rules, the education law, the executive law, the gener-
al municipal law, the insurance law, the limited liability company law,
the not-for-profit corporation law, the partnership law, the personal
property law, the private housing finance law, the public authorities
law, the public health law, the public officers law, the real property
law, the real property actions and proceedings law, the real property
tax law and the state finance law, in relation to the consolidation of
the banking and insurance departments; and to repeal certain provisions
of the real property law and the defense emergency act of 1951, relating
thereto

PURPOSE OF THE BILL:

The purpose of the Bill is to amend various laws to reflect the consol-
idation of the Banking and Insurance Departments, pursuant to Part A of
Chapter 62 of the Laws of 2011, the Financial Services Law (the "FSL"),
into the Department of Financial Services. These changes are non-sub-
stantive in nature and reflect the merger of Banking and Insurance
Departments.

SUMMARY OF PROVISIONS:

The following sections of law are amended by this bill:

BL §§ 6-k, 14-a, 14-b, 14-e, 18-a, 26, 32, 39, 44, 96, 97, 98, 104, 108,
130, 140-a, 143, 143-a, 143-b, 195, 201-a, 202-b, 209, 235, 242, 247,
251, 293, 384, 397, 399, 399-a, 412, 508, 550, 590, 595-b, 599-e, 599-n,
605, 2001 4001-a, 4001-b, 7006 and 7014; BSC: § 301; CVP: § 7701; EDN:
§695-b; EXC: §§: 63, 161, 292, 296-a and 835; GMU: §§ 215, 219-c and
219-k; ISC: §§ 1118, 1120, 4402, 4403 and 9111-b; LLC: § 204; NPC: §301;
PTR: § 121-102; PEP: § 303; PVH:§§ 15, 30, 94, 122, 307, 311, 407, 454,
474 and 802; PBA: 1835-b; POL: § 73; RPP: §§ 265-b, 280 and 280-a; RPA:
§§ 1303 and 1304; RPT: § 953; STF: §§ 5,14, 106, 201 and 208; and DEA:
Article 7.

EXISTING LAW:

The existing provisions of law amended by this bill are not changed
substantively by the provisions of this bill.

PRIOR LEGISLATIVE HISTORY:

This is a new bill.

STATEMENT IN SUPPORT:

The changes provided herein will clarify existing law to conform to
changes made by the FSL. The changes will assist readers and facilitate
legal research.

FISCAL IMPLICATIONS

There are no fiscal implications from this bill.

EFFECTIVE DATE:

The bill would be effective upon enactment.

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

                                  6738

                            I N  S E N A T E

                             March 15, 2012
                               ___________

Introduced  by  Sens. SEWARD, GRIFFO -- (at request of the Department of
  Financial Services) -- read twice and ordered printed, and when print-
  ed to be committed to the Committee on Banks

AN ACT to amend the banking law, the business corporation law, the civil
  practice law and rules, the education  law,  the  executive  law,  the
  general municipal law, the insurance law, the limited liability compa-
  ny  law,  the not-for-profit corporation law, the partnership law, the
  personal property law, the private housing  finance  law,  the  public
  authorities  law,  the public health law, the public officers law, the
  real property law, the real property actions and proceedings law,  the
  real  property  tax  law and the state finance law, in relation to the
  consolidation of the banking and insurance departments; and to  repeal
  certain  provisions of the real property law and the defense emergency
  act of 1951, relating thereto

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

  Section  1. Paragraph (c) of subdivision 2 of section 6-k of the bank-
ing law, as added by chapter 563 of the laws  of  1992  and  as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, 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  superintendent  [of  financial  services]  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 deposits or share accounts from the general public.
  S 2. Subdivisions 2, 3, 4 and 5 of section 14-a of the banking law, as
added by chapter 883 of the  laws  of  1980  and  such  subdivisions  as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, are amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14494-03-2

S. 6738                             2

  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
superintendent  [of financial services] pursuant to subdivision three of
this section.
  3. The superintendent [of financial services] shall have  the  power[,
by a three-fifths vote of all its members,] to adopt such regulations as
[it]  THE SUPERINTENDENT shall deem necessary or proper to implement the
provisions of this section. The superintendent [of  financial  services]
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 superintendent [of finan-
cial services] 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 superintendent [of financial services  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  3.  Subdivisions  1,  2  and  3 of section 14-b of the banking law,
subdivision 1 as amended by chapter 267 of the laws  of  1987,  subdivi-
sions  2  and  3  as amended by chapter 342 of the laws of 1986 and such
subdivisions as further amended by section 104 of part A of  chapter  62
of the laws of 2011, are amended to read as follows:
  1.  The superintendent [of financial services] 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  institution 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 cooper-
ative 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,  nineteen  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  superintendent  [of  financial
services]  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 superintendent [of financial services] shall  deem
to  be appropriate. Prior to the [superintendent of financial services']
SUPERINTENDENT'S prescription of any such minimum rate of interest,  the
superintendent  shall  [make a written recommendation to the superinten-
dent of financial services as to such minimum rate of  interest,  recit-
ing]  ISSUE  A  STATEMENT IN WRITING SETTING FORTH the economic and cost
data and criteria upon  which  such  [recommendation]  DETERMINATION  is
based.  Prior  to making such [recommendation] DETERMINATION, the super-
intendent may invite presentation, by interested persons, of information

S. 6738                             3

and data relating to economic and cost factors relevant to such  minimum
rate of interest.
  3.  The  superintendent  [of  financial  services] may promulgate such
regulations as [it] THE SUPERINTENDENT deems  necessary  and  proper  to
implement  and define the provisions of this section. The superintendent
[of financial services] 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
superintendent  [of  financial  services], and of any rule or regulation
adopted pursuant to this subdivision.
  S 4. 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 and the section heading, the opening and closing
paragraphs of subdivision 1 and subdivisions 2 and 3 as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  S 14-e. Power of the superintendent [of financial services] to author-
ize the operation of savings banks and savings and loan associations  in
stock form.
  1.  Notwithstanding  any  other  provision of law to the contrary, the
superintendent [of financial services] is authorized[, by a three-fifths
vote of all its members,] to promulgate such rules  and  regulations  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 superintendent [of financial services] is authorized to define and
implement, by [general] regulation, the terms  and  provisions  of  this
section.  In adopting such regulations, the superintendent [of financial
services] 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 organiza-
tion 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 superintendent  [of  financial  services]  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 THIS ARTICLE OR article [two,]  fifteen  or  sixteen  of
this chapter.
  2. Such applications as the superintendent [of financial services] 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 superintendent [of financial
services], if [it] THE SUPERINTENDENT shall determine that  unusual  and
extraordinary  circumstances 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,

S. 6738                             4

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 transaction 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 5. Subdivisions 4 and 5 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, the opening
paragraphs  of  such  subdivisions  as further amended by section 104 of
part A of chapter 62 of the  laws  of  2011,  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 superintendent of
financial services] that may necessitate, as determined  by  the  super-
intendent, a determination regarding the character or fitness and/or the
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 OTHER application requiring the approval of the
superintendent [or the superintendent of financial services], 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.
  S  6.  Section 26 of the banking law, as amended by chapter 315 of the
laws of 2008 and as further amended by section 104 of part A of  chapter
62 of the laws of 2011, 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

S. 6738                             5

foreign banking corporation leave to do business in  this  state,  shall
[submit  such  application  to  the superintendent of financial services
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 7. Subdivision 3 of section 32 of the banking law, as added by chap-
ter  618  of  the  laws of 1976 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  3. Notwithstanding the  foregoing  provisions  of  this  section,  the
superintendent  [of  financial  services]  shall  have  the power[, by a
three-fifths vote of all its members,] to promulgate  such  [general  or
specific]  regulations  as  [it]  THE SUPERINTENDENT 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  organization  must  comply with the
requirements of subdivision one of this section.
  S 8. 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 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  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 superinten-
dent of financial services] 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  superintendent  of  financial
services] 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] THE SUPERINTENDENT may, in [his or her] THE SUPERINTENDENT'S
discretion,  issue  an  order  directing that such banking organization,
bank holding company, branch or agency of a foreign banking corporation,
registered mortgage broker, licensed mortgage 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 9. Paragraph (a) of subdivision 1 and paragraph (a) of subdivision 2
of section 44 of the banking law, paragraph  (a)  of  subdivision  1  as
amended by chapter 123 of the laws of 2009, paragraph (a) of subdivision

S. 6738                             6

2  as amended by chapter 702 of the laws of 2006, and such paragraphs as
further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, are 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,  licensed
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
superintendent of financial services] in connection with  the  grant  of
any  application  or request, or any written agreement entered into with
the superintendent.
  (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  superintendent of financial services] 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.
  S  10.  Subdivision 10 of section 96 of the banking law, as amended by
chapter 259 of the laws of 1994 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  10. To exercise, subject to such regulations as  may  be  issued  from
time  to time by the superintendent [of financial services], 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  superintendent  of  financial
services]  as  provided  in  section  one hundred five of this [chapter]
ARTICLE, 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 securities issued by any foreign nation or any
political subdivision, agency  or  instrumentality  thereof,  engage  or
participate,  directly  or  indirectly, in the business of underwriting,
selling or distributing securities.

S. 6738                             7

  S 11. The opening paragraph of subdivision 5  of  section  97  of  the
banking  law,  as  amended  by  chapter 566 of the laws of 2004 and such
subdivision as further amended by section 104 of part A of chapter 62 of
the laws of 2011, is amended to read as follows:
  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 superintendent [of
financial services], or [by] regulations promulgated by the  superinten-
dent  [of  financial  services,  upon  a  three-fifths  vote  of all its
members].
  S 12. Paragraph (d) of subdivision 1 of section 98 of the banking law,
as amended by chapter 512 of the laws of 1977 and as further amended  by
section  104  of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  (d) Such [as may be  specifically  authorized  by  resolution  of  the
superintendent of financial services upon a three-fifths vote of all its
members,   provided,  however,  that  the  superintendent  of  financial
services 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 AS MAY BE SPECIFICALLY APPROVED
BY THE SUPERINTENDENT.
  S 13. Subdivision 2 of section 104 of the banking law, as  amended  by
chapter 664 of the laws of 1958 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is 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 superintendent [of financial services] 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.
  S 14. Paragraphs (a) and (c) of subdivision 8 of section  108  of  the
banking  law, as added by chapter 344 of the laws of 1974, such subdivi-
sion as renumbered by chapter 512 of the laws of  1977  and  as  further
amended  by section 104 of part A of chapter 62 of the laws of 2011, are
amended to read as follows:
  (a) The superintendent [of financial services] 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

S. 6738                             8

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.
  (c)  In prescribing a maximum charge pursuant to paragraph (a) of this
subdivision, the superintendent [of financial services]  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  superintendent
[of  financial  services]  shall  deem  to  be appropriate. Prior to the
[superintendent of financial services'] SUPERINTENDENT'S prescribing any
such maximum charge, the superintendent shall  [make]  ISSUE  a  written
[recommendation  to  the  superintendent of financial services] DETERMI-
NATION as to such maximum charge, reciting the cost and other data  upon
which [his recommendation] THE DETERMINATION is based.
  S  15.  Paragraph  (c)  of subdivision 7 of section 130 of the banking
law, as added by chapter 299 of the laws of 1969 and as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  (c) The superintendent [of financial services] shall  have  power  [by
three-fifths  vote of all its members] to adopt such regulations as [it]
THE SUPERINTENDENT shall deem  necessary  or  proper  to  implement  the
provisions of this section.
  S  16.  Section 140-a of the banking law, as amended by chapter 291 of
the laws of 1987 and as further amended by section  104  of  part  A  of
chapter 62 of the laws of 2011, is amended to read as follows:
  S 140-a.   Stock   option  plans.  Subject  to  such  regulations  and
restrictions as may be prescribed by the  superintendent  [of  financial
services  by a three-fifths vote of all the members thereof], every bank
and every trust company may grant options  to  purchase  authorized  and
unissued  shares of its capital stock to officers, directors and employ-
ees, for a consideration as authorized by section five thousand four  of
this  chapter  of  not less than one hundred per cent 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
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 17. Paragraph (b) of subdivision 2 of section  143  of  the  banking
law,  as  amended  by  chapter  217  of  the laws of 2010 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  is
amended to read as follows:
  (b) The superintendent [of financial services] 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

S. 6738                             9

maintaining a branch in this state. Such permission may be granted  only
if  in  the  judgment of the superintendent [of financial services] 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
superintendent [of financial services] shall have the  power  to  revoke
such permission [by a like vote] whenever [it] THE SUPERINTENDENT finds,
after  a  reasonable  notice  and  an  opportunity to be heard, that the
public interest requires such revocation.
  S 18. Subdivision 3 of section 143-a of the banking law, as amended by
chapter 217 of the laws of 2010 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  3. If no action to be  taken  pursuant  to  the  plan  of  acquisition
requires  [the  prior]  approval  of  the  superintendent  [of financial
services] pursuant to section 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, and in determining whether or not  to  approve  any
such  plan the superintendent shall take into consideration the declara-
tion 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 superintendent of financial services, the superintendent
shall submit such plan of acquisition together with his or her recommen-
dations in regard thereto  and  all  papers,  correspondence  and  other
information in his or her possession and relating thereto, to the super-
intendent  of financial services for its approval or disapproval as part
of the application submitted to it pursuant to such section one  hundred
forty-three-b.]  If  the superintendent [or the superintendent of finan-
cial services, as required,] 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  superintendent   of   financial
services,]  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.
  S 19. Subdivisions 1, 2 and 3 of section 143-b  of  the  banking  law,
subdivision 1 as amended by chapter 217 of the laws of 2010, subdivision
2  as amended by section 20 of part O of chapter 59 of the laws of 2006,
subdivision 3 as amended by chapter 793 of the laws  of  1980  and  such
subdivisions  as  further amended by section 104 of part A of chapter 62
of the laws of 2011, are amended to read as follows:
  1. It shall be unlawful except with the prior approval of  the  super-
intendent  [of  financial  services  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  company  which  has
submitted  to  the  superintendent  a  plan  of  acquisition pursuant to
section one hundred forty-three-a of this article for an acquisition not
involving a change of control of the banking  institution.  As  used  in
this section, the term "control" means the possession, directly or indi-
rectly,  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 indirectly, owns,

S. 6738                            10

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 institution solely by reason of his or her being an
officer or director of such banking institution or company.  The  super-
intendent  may in [his or her] THE SUPERINTENDENT'S 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  institu-
tion 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  superintendent  of  financial
services], by rule or regulation, may prescribe as necessary  or  appro-
priate  for the purpose of making the determination required by subdivi-
sion 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 department
of financial services. The superintendent shall [submit such application
together with his recommendation  in  regard  thereto  and  all  papers,
correspondence  and  other  information  in  his possession and relating
thereto, to the superintendent of financial  services  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  thereof  shall  be  posted
upon  the  bulletin  board  of  the department of financial services. In
determining whether or not to approve any such application,  the  super-
intendent  [of financial services] 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 thereof, 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 20. Section 195 of the banking law, as added by chapter 1064 of  the
laws  of 1960 and as further amended by section 104 of part A of chapter
62 of the laws of 2011, is amended to read as follows:
  S 195. Rules, regulations and orders. The superintendent [of financial
services 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] THE SUPERINTENDENT may deem necessary to  enable  [it]  THE  SUPER-
INTENDENT to administer and carry out the provisions of this article and
to prevent evasions thereof.
  S 21. Subdivision 1 of section 201-a of the banking law, as amended by
chapter 120 of the laws of 1968 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:

S. 6738                            11

  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
period  not exceeding one year may, upon the approval of the superinten-
dent [and the superintendent  of  financial  services],  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 22. Subdivisions 1 and 2 of section 202-b of  the  banking  law,  as
amended  by chapter 131 of the laws of 2002 and subdivision 2 as amended
by chapter 496 of the laws of 1993  and  such  subdivisions  as  further
amended  by section 104 of part A of chapter 62 of the laws of 2011, 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  super-
intendent  [of  financial  services] SHALL ADOPT 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 obligations issued by the Inter-American Development
Bank,  or  obligations  of  the  Asian  Development Bank, or obligations
issued by the African Development Bank, or  obligations  issued  by  the
International Finance Corporation, 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  Corpo-
ration  (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 super-
intendent [of financial services] 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 superintendent 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] THE SUPERINTENDENT shall prescribe; provided, however,
that the superintendent may determine, in [his or her]  THE  SUPERINTEN-
DENT'S discretion, that any such bonds, notes, debentures or other obli-

S. 6738                            12

gations  of a particular issuer are not acceptable for purposes of meet-
ing the requirements of this subdivision.  The superintendent  may  from
time to time require that the assets deposited pursuant to this subdivi-
sion  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  superintendent  [of  financial
services]  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 agency, agencies, branch or  branches,  including  acceptances  and
such  other liabilities (including contingent liabilities) as the super-
intendent shall determine, but excluding amounts due and  other  liabil-
ities to other offices, agencies or branches of, and affiliates of, such
foreign  banking  corporation.  As used in this subdivision, (i) "affil-
iate" 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 indirect-
ly,  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 subdivision, the term "person" shall mean a corporation, unincorpo-
rated association, partnership, or any other entity or  individual.  For
the  purposes  of this subdivision [two], the superintendent shall value
marketable 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-

S. 6738                            13

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] THE  SUPERINTENDENT  may,  subject  to
such  terms  and  conditions  as  [he] THE SUPERINTENDENT 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 23. Subdivisions 1, 2 and 3 of section 209 of the  banking  law,  as
amended  by  chapter  217  of the laws of 2010 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, 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, federal savings bank or federal savings association,  the
principal  office  of  which  institution is located in this state, bank
holding company or another foreign  banking  corporation  maintaining  a
branch in this state, unless permission therefor has been granted by the
superintendent  [of  financial  services]  pursuant to the provisions of
subdivision three of this section, except that an executive officer of a
foreign banking corporation maintaining 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 subsidiary, and of one or more of the banking
institutions which are subsidiaries of such bank holding company.
  2. No executive officer of a national bank, federal  savings  bank  or
federal  savings  association, the principal office of which institution
is located in this state, may be an executive officer, director or trus-
tee of a bank or trust company, savings bank, savings and  loan  associ-
ation, bank holding company or foreign banking corporation maintaining a
branch in this state, unless permission therefor has been granted by the
superintendent  [of  financial  services]  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.
  3.  The superintendent [of financial services] 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, federal  savings  bank  or  federal
savings  association,  the  principal office of which is located in this
state, 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 superintendent [of financial services] 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  superintendent
[of  financial  services] shall have the power to revoke such permission
[by a like vote] whenever [it] THE SUPERINTENDENT finds,  after  reason-

S. 6738                            14

able  notice  and  an  opportunity to be heard, that the public interest
requires such revocation.
  S  24.  Paragraph (ee) of subdivision 26 of section 235 of the banking
law, as added by chapter 231 of the laws of 1964 and as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  (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 superinten-
dent [of  financial  services  upon  a  three-fifths  vote  of  all  its
members].
  S  25.  Subdivision 2 of section 242 of the banking law, as amended by
chapter 664 of the laws of 1958 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is 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  superintendent  [of financial services] 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  regu-
lations.
  S  26.  Paragraphs  (a) and (b) of subdivision 5 of section 247 of the
banking law, as amended by chapter 217  of  the  laws  of  2010  and  as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, 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,  federal  savings
bank  or  federal  savings  association,  the  principal office of which
institution is located in this state, bank holding  company  or  foreign
banking  corporation  maintaining a branch in this state, unless permis-
sion therefor has been  granted  by  the  superintendent  [of  financial
services]  pursuant  to the provisions of paragraph (b) of this subdivi-
sion.
  (b) The superintendent [of financial services] 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, federal savings bank or
federal savings association, the principal office of  which  institution
is located in this state, bank holding company or foreign banking corpo-
ration maintaining a branch in this state. Such permission may be grant-

S. 6738                            15

ed only if in the judgment of the superintendent [of financial services]
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
superintendent  [of  financial  services] shall have the power to revoke
such permission [by a like vote] whenever [it] THE SUPERINTENDENT finds,
after reasonable notice and an opportunity to be heard, that the  public
interest requires such revocation.
  S  27.  Subdivision  6  of section 251 of the banking law, as added by
chapter 849 of the laws of 1964 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  6. Any officer elected or appointed by the board may be removed by the
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  superintendent  of
financial services] under section forty-one of this chapter.
  S  28.  The  opening  paragraph  and paragraph (d) of subdivision 2 of
section 293 of the banking law, the opening paragraph as added by  chap-
ter  762 of the laws of 1989, paragraph (d) as amended by chapter 291 of
the laws of 2001 and such paragraphs as further amended by  section  104
of  part  A  of  chapter  62 of the laws of 2011, are amended to read as
follows:
  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] OF the super-
intendent [of financial services], a mutual holding company may:
  (d) engage  in  any  other  acquisition  or  combination  specifically
permitted  by  [general]  regulations [promulgated by or specific resol-
ution] of the superintendent [of financial services]; provided, however,
that any such regulation [promulgated by, or specific resolution, of the
superintendent of financial services] 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, respec-
tively, to the extent  such  authorized  activities  are  not  otherwise
limited or prohibited by this chapter.
  S  29.  Subdivision  2  and  the opening paragraph of subdivision 4 of
section 384 of the banking law, subdivision 2 as amended by chapter  247
of  the  laws of 1959, the opening paragraph of subdivision 4 as amended
by chapter 360 of the laws of 1984  and  such  subdivision  and  opening
paragraph  as  further amended by section 104 of part A of chapter 62 of
the laws of 2011, 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

S. 6738                            16

books, except when the books are closed for  the  purpose  of  computing
profits.  The  superintendent  [of  financial services] 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  regu-
lations.
  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 superintendent [of financial services].
  S  30.  Subdivision  7  of section 397 of the banking law, as added by
chapter 849 of the laws of 1964 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  7. Any officer elected or appointed by the board may be removed by the
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  superintendent  of
financial services] under section forty-one of this chapter.
  S  31.  Paragraph  (b)  of subdivision 5 of section 399 of the banking
law, as amended by chapter 217 of  the  laws  of  2010  and  as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  (b) The superintendent [of financial services] 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, federal
savings  bank  or  federal  savings association, the principal office of
which is 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  superintendent  [of  financial
services]  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 superintendent [of financial services] shall have the power
to revoke such permission [by a like vote] whenever [it] THE SUPERINTEN-
DENT finds, after reasonable notice and an opportunity to be heard, that
the public interest requires such revocation.
  S  32.  Subdivisions  1  and 2 of section 399-a of the banking law, as
amended by chapter 217 of the laws of 2010 and  as  further  amended  by
section  104 of part A of chapter 62 of the laws of 2011, are amended to
read as follows:
  1. No executive officer of a federal savings bank or  federal  savings
association the principal office of which institution is 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 superintendent
[of financial services] pursuant to subdivision  two  of  this  section,
provided,  however,  that  an executive officer of a federal savings and

S. 6738                            17

loan association located in this state, who on  the  effective  date  of
this  section  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  superintendent [of financial services], 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.
  2.  The superintendent [of financial services] 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  bank  or
federal  savings  association  located  in this state, to be at the same
time an executive officer, director or trustee,  or  both  an  executive
officer  and  a  director  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 superintendent [of  finan-
cial  services] 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 superintendent [of financial services] shall have the
power to revoke such permission [by  a  like  vote]  whenever  [it]  THE
SUPERINTENDENT  finds,  after reasonable notice and an opportunity to be
heard, that the public interest requires such revocation.
  S 33. Section 412 of the banking law, as amended by section 9 of  part
D-1 of chapter 109 of the laws of 2006 and as further amended by section
104  of  part A of chapter 62 of the laws of 2011, is amended to read as
follows:
  S 412. Conversion of federal savings institutions  to  state  charter.
The  superintendent  [of financial services] 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  34.  The  opening  paragraph of subdivision 6 of section 508 of the
banking law, as amended by chapter 360  of  the  laws  of  1984  and  as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, is amended to read as follows:
  To exercise, subject to such regulations as may be issued from time to
time by the superintendent [of financial services], 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  superintendent of financial services] 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.

S. 6738                            18

  S 35. The opening paragraph of section 550  of  the  banking  law,  as
amended  by  chapter  833  of the laws of 1969 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  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 financial services] at
[his] THE SUPERINTENDENT'S office an organization certificate in  dupli-
cate which shall specifically state:
  S 36. Paragraphs (a) and (e) of subdivision 1, paragraphs (a), (b) and
(b-1)  of  subdivision 2, the opening and closing paragraphs of subdivi-
sion 3, paragraphs (b), (c) and (d) of subdivision 5 and  subdivision  6
of  section  590  of the banking law, paragraph (a) of subdivision 1 and
paragraphs (b) and (b-1) of subdivision 2 as amended by chapter  507  of
the laws of 2009, paragraph (e) of subdivision 1 as added by chapter 571
of  the  laws  of  1986, paragraph (a) of subdivision 2, the opening and
closing paragraphs of subdivision 3 and paragraphs (b), (c) and  (d)  of
subdivision 5 as amended by chapter 472 of the laws of 2008, subdivision
6  as  amended by chapter 293 of the laws of 1987 and such provisions as
further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, are amended to read as follows:
  (a)  "Mortgage loan" shall mean a loan to a natural person made prima-
rily for personal, family or household use, secured by either a mortgage
or deed of trust on residential real property, any certificate of  stock
or  other evidence of ownership in, and proprietary lease from, a corpo-
ration or partnership formed for the purpose of cooperative ownership of
residential real property or, if determined by  the  superintendent  [of
financial  services] by regulation, shall include such a loan secured by
a security interest on a manufactured home;
  (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 superintendent [of financial
services], "exempt organization" may also include any subsidiary of such
entities;
  (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 superintendent
[of financial services or prescribed by the superintendent]. The licens-
ing provisions of this subdivision shall not apply to any exempt  organ-
ization nor to any entity or entities which shall be exempted in accord-
ance  with  regulations  promulgated by the superintendent [of financial
services] hereunder.
  (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-

S. 6738                            19

tion  procedure  provided in this article and by such regulations as may
be  promulgated  by  the  superintendent  [of  financial   services   or
prescribed  by  the superintendent]. The registration provisions of this
subdivision  shall not apply to any exempt organization, mortgage banker
or mortgage loan servicer. 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 superintendent [of financial services] 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] THE SUPERINTEN-
DENT may refuse to issue a registration certificate to a mortgage broker
pursuant to subdivision 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 regu-
lations prescribed by the superintendent hereunder; provided  that  such
exempt  organization,  mortgage  banker,  mortgage  broker,  or exempted
person notifies 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 superintendent [of financial
services or prescribed by the superintendent with  respect  to  mortgage
loan  servicers].  The  superintendent may require all registrations and
notifications to be  made  through  the  Nationwide  Mortgage  Licensing
System and Registry. An application to become a registered mortgage loan
servicer  or  any  application  with respect to a mortgage loan servicer
shall be accompanied by a fee as prescribed pursuant  to  section  eigh-
teen-a of this chapter. Any fee established pursuant to this subdivision
may  be collected by and include a processing fee charged by the Nation-
wide Mortgage Licensing System and Registry. Any  such  processing  fees
shall  not  be  remitted  to  the superintendent and shall not be deemed
revenue pursuant to this chapter or the state finance law.
  In addition to such powers as may  otherwise  be  prescribed  by  this
chapter, the superintendent [of financial services] is hereby authorized
and  empowered  to  promulgate  such rules and regulations as may in the
judgement of the superintendent [of financial  services]  be  consistent
with  the  purposes  of  this  article, or appropriate for the effective
administration of this article, including, but not limited to:
  The superintendent [of financial services] is  hereby  authorized  and
empowered  to  make  such specific rulings, demands and findings as [it]
THE SUPERINTENDENT may deem necessary for  the  proper  conduct  of  the
mortgage lending industry.
  (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 superintendent [of finan-

S. 6738                            20

cial services 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 superintendent [of financial
services or prescribed by the superintendent] thereunder and all  appli-
cable 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 superintendent [of
financial services or prescribed by the superintendent]  thereunder  and
all  applicable  federal  laws and the rules and regulations promulgated
thereunder.
  6. The superintendent [of financial services] 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 37. Subdivisions 1 and 2 of section 595-b of  the  banking  law,  as
added  by  chapter  472  of  the  laws of 2008 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  1.  Establishment  of grounds to impose a fine or penalty. In addition
to such other rules, regulations and policies as the superintendent  [of
financial services] may promulgate [or the superintendent may prescribe]
to  effectuate  the  purposes  of this article, the superintendent shall
promulgate regulations  and  policies  governing  the  establishment  of
grounds  to impose a fine or penalty with respect to the activities of a
mortgage loan servicer.
  2. Servicing practices. In addition to such other  rules,  regulations
and  policies  as the superintendent [of financial services] may promul-
gate 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  38.  Paragraph (g) of subdivision 1 of section 599-e of the banking
law, as added by chapter 123 of the laws of 2009 and as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  (g) Affiliation. Unless  the  superintendent  shall  have  waived  the
affiliation  requirement  pursuant  to regulations adopted by the super-
intendent [of financial services], that the applicant is employed by, or
is an independent contractor of (i) an originating entity,  (ii)  solely
in  the case of a mortgage loan originator engaged in the origination of
residential mortgage loans on manufactured  homes,  an  entity  licensed
under  article nine or eleven-B of this chapter, or (iii) in the case of
a mortgage loan  originator  engaged  in  mortgage  loan  servicing  and
employed by a mortgage loan servicer, an entity registered as a mortgage
loan  servicer  under  article  twelve-D  of this chapter or exempt from
registration under such article. A mortgage loan originator may  not  be
simultaneously  employed  or  affiliated  with more than one originating
entity.

S. 6738                            21

  S 39. Paragraph (a) of subdivision 1  and  subdivision  2  of  section
599-n  of  the  banking law, as added by chapter 123 of the laws of 2009
and as further amended by section 104 of part A of  chapter  62  of  the
laws of 2011, is amended to read as follows:
  (a)  Through  a  course  of  conduct,  the  licensee  has violated any
provisions of this article, or any rule or regulation promulgated by the
superintendent [of financial services] THEREUNDER, or any rule or  regu-
lation  [prescribed] PROMULGATED by the superintendent under [and within
the authority of this article or] article twelve-D of this chapter or of
any other applicable law, rule or regulation of this state or the feder-
al government pertaining to mortgage banking, brokering or  loan  origi-
nating; or
  2.  Restitution. The superintendent may order a mortgage loan origina-
tor or any other person to pay restitution for violations of this  arti-
cle  or  any  rules  of the superintendent [of financial services or the
superintendent] promulgated hereunder.
  S 40. Subdivisions 4 and 8 of section  605  of  the  banking  law,  as
amended  by  chapter  567  of the laws of 2000 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, are amended  to
read as follows:
  4. Within three months after the date of any such meeting, application
may  be  made  to the supreme court, after due notice to the superinten-
dent, for an order declaring the business of such corporation closed. In
a proper case, the court shall make such order which shall prescribe the
notice to be given to creditors and depositors to present  their  claims
to  the  corporation  for payment. In the closing order, the court shall
set a date certain by which claims must be presented to the  corporation
for  payment.  The  corporation  need  not consider any claims submitted
after that date. Within five days after the  making  of  such  order,  a
certified  copy  thereof shall be filed in the office of the superinten-
dent. Upon the entry of such order such corporation shall  cease  to  do
business  and  shall  wind  up its affairs, pay its creditors and depos-
itors, if any, and, except  in  the  case  of  a  mutual  savings  bank,
distribute  any  remaining assets among its shareholders or stockholders
according to their respective rights and interests. The  corporation  or
any  creditor  or  depositor  thereof, upon due notice, may apply to the
court that issued the closing  order  for  a  determination  as  to  any
disputed  claim  or  for  any  other  relief necessary to effectuate the
liquidation and dissolution of the corporation. Any  petition,  applica-
tion,  or  motion to vacate, set aside, modify or amend such order so as
to permit the corporation to resume  business  shall  have  incorporated
therein a certificate of the superintendent certifying that after inves-
tigation the superintendent has found[, and the superintendent of finan-
cial services by a three-fifths vote of all its members has found,] that
the public convenience and advantage will be promoted by the granting of
said petition, application or motion.
  8.  Unless the superintendent [of financial services 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

S. 6738                            22

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-
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] THE SUPERINTENDENT'S discretion, to take
possession of the business and property of such corporation and  proceed
with the liquidation thereof under the provisions of this article.
  S  41.  Paragraph  (f) of subdivision 2 of section 2001 of the banking
law, as amended by chapter 566 of  the  laws  of  2004  and  as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, 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 superintendent [of financial services or of the superintendent].
  S 42. The opening paragraph of subdivision 1 of section 4001-a of  the
banking  law, as added by chapter 637 of the laws of 1995 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  is
amended to read as follows:
  Notwithstanding  the  provisions  of section four thousand one of this
[article] TITLE and when  authorized  by  the  superintendent  [and  the
superintendent of financial services] 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
organization in duplicate which shall specifically state:
  S 43. The opening paragraph of subdivision 1 of section 4001-b of  the
banking  law, as added by chapter 248 of the laws of 1997 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  is
amended to read as follows:
  Notwithstanding  the  provisions  of section four thousand one of this
[article] TITLE and when  authorized  by  the  superintendent  [and  the
superintendent of financial services] 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:
  S 44. Subdivision 4 of section 7006 of the banking law,  as  added  by
chapter 849 of the laws of 1964 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  4.  This  section does not affect the powers of the superintendent [or
the superintendent of financial services]  under  section  forty-one  of
this chapter.
  S  45.  Subdivision  2 of section 7014 of the banking law, as added by
chapter 849 of the laws of 1964 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  2. This section does not affect the powers of the  superintendent  [or
the  superintendent  of  financial  services] under section forty-one of
this chapter.
  S 46. 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 and as further amended by section 104 of part A of  chapter  62  of
the laws of 2011, is amended to read as follows:

S. 6738                            23

  (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 financial services [or the
superintendent of financial services, as appropriate,]  is  attached  to
the certificate of incorporation, or application for authority or amend-
ment  thereof;  or that the word "doctor" or "lawyer" or an abbreviation
or derivation thereof is used in the name of a university faculty  prac-
tice  corporation  formed pursuant to section fourteen hundred twelve of
the not-for-profit corporation law or a professional service corporation
formed pursuant to article fifteen of this chapter, or a foreign profes-
sional 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 47. The opening paragraph of section 7701 of the civil practice  law
and  rules, as amended by chapter 193 of the laws of 1976 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  is
amended to read as follows:
  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  property  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 finan-
cial services [or the superintendent of financial services] has been  or
may hereafter be appointed rehabilitator or liquidator or conservator, a
trust  to  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.
  S 48. Subdivision 4 of section 695-b of the education law, as added by
chapter 546 of the laws of 1997 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  4. "Financial organization" shall mean an organization  authorized  to
do  business  in  the  state  of New York and (a) which is an authorized
fiduciary to act as a trustee pursuant to the provisions of  an  act  of
congress  entitled  "Employee Retirement Income Security Act of 1974" as
such provisions may be amended from time to time, or an insurance compa-
ny; and (b)(i) is licensed or chartered by the department  of  financial
services,  (ii) [is licensed or chartered by the department of financial
services, (iii)] is chartered by an agency of  the  federal  government,
[(iv)]  (III) is subject to the jurisdiction and regulation of the secu-
rities and exchange commission of the federal government, or [(v)]  (IV)
is any other entity otherwise authorized to act in this state as a trus-
tee  pursuant to the provisions of an act of congress entitled "Employee

S. 6738                            24

Retirement Income Security Act  of  1974"  as  such  provisions  may  be
amended from time to time.
  S  49. Subdivision 3 of section 63 of the executive law, as amended by
chapter 766 of the laws of 2005 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  3. Upon request of the  governor,  comptroller,  secretary  of  state,
commissioner  of  transportation,  superintendent of financial services,
[superintendent of 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 50. Subdivision 1 of section 161 of the executive law, as separately
amended by chapters 430 and 636 of the  laws  of  1969  and  as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, 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 financial services,
[the superintendent of financial services,] 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  OR  SHE
deems  it necessary for the discharge of his OR HER official duties, and
a copy thereof, or extracts therefrom, to be made and officially  certi-
fied or exemplified, without the payment of any fee or charge.
  S  51. Subdivision 25 of section 292 of the executive law, as added by
chapter 173 of the laws of 1974, as renumbered by  chapter  632  of  the
laws  of 1976 and as further amended by section 104 of part A of chapter
62 of the laws of 2011, is amended to read as follows:
  25. The term "superintendent", when used in this  article,  means  the
head  of  the  department  of  financial  services appointed pursuant to
section [twelve] TWO HUNDRED TWO of  the  [banking]  FINANCIAL  SERVICES
law.
  S 52. Subdivision 9 of section 296-a of the executive law, as added by
chapter 173 of the laws of 1974 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  9.  Whenever  any creditor makes application to the superintendent [or
the superintendent] of financial services to take any  action  requiring
consideration by the superintendent [or such board] of the public inter-
est  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-partnership 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  oper-
ated  honestly,  fairly, and efficiently, such creditor shall certify to

S. 6738                            25

the superintendent compliance with the provisions of  this  section.  In
the  event that the records of the department of financial 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 appli-
cations and making the foregoing findings, give  appropriate  weight  to
compliance with this section.
  S 53. Subdivision 9 of section 835 of the executive law, as amended by
section 102 of subpart B of part C of chapter 62 of the laws of 2011 and
as further amended by section 104 of part A of chapter 62 of the laws of
2011, 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
corrections and community supervision, the department of  correction  of
any municipality, the [insurance] FINANCIAL frauds [bureau] AND CONSUMER
PROTECTION  UNIT  of  the  state  department  of financial services, 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 twenty-four of the social services law, the office of Medi-
caid inspector general, the temporary state commission of investigation,
[the criminal investigations  bureau  of  the  department  of  financial
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 54. Subdivision 15 of section 215 of the general municipal  law,  as
added  by  chapter 714 of the laws of 2006 and paragraphs (ii) and (iii)
as further amended by section 104 of part A of chapter 62 of the laws of
2011, is amended to read as follows:
  15. "Financial organization" means an organization duly authorized  to
do  business  in  the state and which is (i) registered as an investment
adviser under the Investment Advisers Act of 1940,  as  such  provisions
may  be  amended  from  time  to time; (ii) licensed or chartered by the
state department of financial services; (iii) [licensed or chartered  by
the state department of financial services; (iv)] chartered by an agency
of the federal government; or [(v)] (IV) subject to the jurisdiction and
regulation  of  the  securities  and  exchange commission of the federal
government.
  S 55. Subdivision 14 of section 219-c of the general municipal law, as
amended by chapter 514 of the laws of 1998 and paragraphs (ii) and (iii)
as further amended by section 104 of part A of chapter 62 of the laws of
2011, is amended to read as follows:
  14. "Financial organization" means an organization duly authorized  to
do  business  in  the state and which is (i) registered as an investment
adviser under the Investment Advisers Act of 1940,  as  such  provisions
may  be  amended  from  time  to time; (ii) licensed or chartered by the
state department of financial services; (iii) [licensed or chartered  by
the state department of financial services; (iv)] chartered by an agency
of the federal government; or [(v)] (IV) subject to the jurisdiction and
regulation  of  the  securities  and  exchange commission of the federal
government.

S. 6738                            26

  S 56. Subdivision 19 of section 219-k of the general municipal law, as
added by chapter 558 of the laws of  1998  and  as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  19.  "Financial organization" means an organization duly authorized to
do business in the state which is (a) registered as an investment advis-
er under the Investment Advisers Act of 1940, as such provisions may  be
amended  from  time  to  time;  (b)  licensed  or chartered by the state
department of financial services; (c)  [licensed  or  chartered  by  the
state  department  of financial services; (d)] chartered by an agency of
the federal government; or [(e)] (D) subject  to  the  jurisdiction  and
regulation  of  the  securities  and  exchange commission of the federal
government.
  S 57. Subsection (d) and paragraphs 3  and  4  of  subsection  (e)  of
section  1118  of the insurance law, as added by chapter 703 of the laws
of 1988 and as further amended by section 104 of part A of chapter 62 of
the laws of 2011, are amended to read as follows:
  (d) Notwithstanding any provisions of [the insurance law] THIS CHAPTER
OR THE FINANCIAL SERVICES LAW to the contrary,  the  superintendent  may
waive, modify or suspend any provision of [the insurance law] THIS CHAP-
TER,  THE  FINANCIAL  SERVICES LAW or [department of financial services]
regulations PROMULGATED THEREUNDER as  applicable  to  the  insurers  or
health maintenance organizations [which] THAT conduct the regional pilot
projects, except as to mandatory benefits, provided such waiver, modifi-
cation  or  suspension  is based on the criteria set forth in subsection
(e) of this section.
  (3) any waiver, modification  or  suspension  of  provisions  of  [the
insurance  law]  THIS CHAPTER, THE FINANCIAL SERVICES LAW or [department
of financial services] regulations PROMULGATED THEREUNDER  is  essential
to  the  operation  of  the  regional  pilot project and to the rational
development of programs to provide health care  coverage  or  equivalent
coverage mechanisms to the uninsured; and
  (4)  any  waiver,  modification  or  suspension  of provisions of [the
insurance law] THIS CHAPTER, THE FINANCIAL SERVICES LAW  or  [department
of  financial  services]  regulations  PROMULGATED  THEREUNDER  will not
impair the ability of the insurer or health maintenance organization  to
satisfy  its  existing  and anticipated contracts and other obligations,
including such standards as the superintendent shall prescribe  concern-
ing adequate capital and financial requirements.
  S 58. Subsections (d) and (e) of section 1120 of the insurance law, as
added  by chapter 922 of the laws of 1990, paragraph 3 of subsection (e)
as amended by chapter 2 of the laws of 1998 and subsection (d) and para-
graph 4 of subsection (e) as further amended by section 104 of part A of
chapter 62 of the laws of 2011, are amended to read as follows:
  (d) Notwithstanding any provisions of [the insurance law] THIS CHAPTER
OR THE FINANCIAL SERVICES LAW to the contrary,  the  superintendent  may
waive,  modify  or  suspend  any  provisions of [the insurance law] THIS
CHAPTER,  THE  FINANCIAL  SERVICES  LAW  or  [department  of   financial
services] regulations PROMULGATED THEREUNDER as applicable to the insur-
ers,  article  forty-three  corporations or health maintenance organiza-
tions [which] THAT issue coverage pursuant  to  this  section,  provided
such  waiver,  modification  or  suspension is based on the criteria set
forth in subsection (e) of this section.
  (e) The superintendent may take the actions set forth  in  subsections
(a)  and (d) of this section upon the superintendent's [judgement] JUDG-
MENT that:

S. 6738                            27

  (1) the contract  or  arrangement  is  a  reasonable  and  appropriate
approach to expand the availability of health care coverage to children;
  (2) the sources of funding for the contract or arrangement are reason-
ably  related  to  the  benefits  provided and sufficient to support the
contract arrangement;
  (3) any waiver, modification or suspension of the provisions  of  [the
insurance  law]  THIS CHAPTER, THE FINANCIAL SERVICES LAW or [insurance]
regulations PROMULGATED THEREUNDER is essential to the operation of  the
child  health insurance plan and to the rational development of programs
to provide covered services to children; and
  (4) any waiver, modification  or  suspension  of  provisions  of  [the
insurance  law]  THIS CHAPTER, THE FINANCIAL SERVICES LAW or [department
of financial  services]  regulations  PROMULGATED  THEREUNDER  will  not
impair  the  ability  of the insurer, article forty-three corporation or
health maintenance organization to satisfy its existing and  anticipated
contracts  and other obligations, including such standards as the super-
intendent shall prescribe  concerning  adequate  capital  and  financial
requirements.
  S  59.  Paragraph 3 of subsection (e) of section 1120 of the insurance
law, as amended by chapter 639 of the laws of 1996, is amended  to  read
as follows:
  (3)  any  waiver,  modification  or  suspension  of provisions of [the
insurance law] THIS CHAPTER, THE FINANCIAL SERVICES LAW  or  [insurance]
regulations  PROMULGATED THEREUNDER is essential to the operation of the
child health insurance plan and to the rational development of  programs
to  provide  primary  and  preventive health care coverage and inpatient
health care services coverage to children; and
  S 60. 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] SUPERVISOR of banks of any state or
[is a member of the federal  reserve  system]  THE  COMPTROLLER  OF  THE
CURRENCY.
  (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] SUPERVISOR of banks of
any state or [is a member of the federal reserve system] THE COMPTROLLER
OF THE CURRENCY; nor shall such term include any insurer licensed  under
the laws of this state or authorized to do business herein.
  S  61. Subsection (b) of section 4403 of the insurance law, as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  is
amended to read as follows:

S. 6738                            28

  (b)  If  it  is  found  that  the  conditions  [which] THAT originally
required registration with the superintendent have ceased to  exist  and
that  new  conditions exist [which] THAT would not require the registra-
tion of an employee welfare fund with [either]  the  superintendent  [of
financial  services  or  the superintendent of financial services], then
the superintendent [of financial services] may, on  application  of  the
trustees  or on [his] THE SUPERINTENDENT'S own motion, cancel the regis-
tration of such fund.
  S 62. Subparagraph (C) of paragraph 2 of  subsection  (h)  of  section
9111-b  of  the  insurance  law,  as added by chapter 148 of the laws of
1998, is amended to read as follows:
  (C) that an undertaking is filed with the  superintendent  [of  insur-
ance]  in such amount and with such sureties as a justice of the supreme
court shall approve to the effect that if such proceeding  be  dismissed
or  the  tax  confirmed,  the  petitioner will pay all costs and charges
[which] THAT may accrue in the prosecution of such proceeding.
  S 63. Subdivision (f) of section 204 of the limited liability  company
law,  as  further  amended by section 104 of part A of chapter 62 of the
laws of 2011, 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 financial services [or the
superintendent of financial services, 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  64. 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 and as further amended by section 104 of part A of chapter 62 of
the laws of 2011, is amended to read as follows:
  (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

S. 6738                            29

doctor                 lawyer

endowment              loan

unless  the approval of the superintendent of financial services [or the
superintendent of financial services, as appropriate,]  is  attached  to
the certificate of incorporation, or application for authority or amend-
ment  thereof; or that the word "doctor", "lawyer", or the phrase "state
police" or "state trooper" or an abbreviation or derivation thereof, 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  65.  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  and  as  further amended by section 104 of part A of chapter 62 of
the laws of 2011, 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 financial services [or  the
superintendent  of  financial  services, 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  medi-
cine.
  S  66.  Subdivision  4 of section 303 of the personal property law, as
added by chapter 641 of the laws of  1984  and  as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, 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 contract and
charge, receive and collect a credit service charge  calculated  on  the
unpaid  balances  of  an amount computed as provided in the second para-
graph 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  regular  intervals  as
set forth in the contract and in accordance with such regulations as the
superintendent of financial services 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 retail seller and (d)
approved by the superintendent.

S. 6738                            30

  The superintendent [of financial  services]  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) provid-
ing  for  disclosure  to  the  buyer by the retail seller 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 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 67. Paragraph (a) of subdivision 1 of  section  15  of  the  private
housing  finance  law, as amended by chapter 990 of the laws of 1972 and
as further amended by section 104 of part A of chapter 62 of the laws of
2011, is 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  superintendent  of  financial  services  of the state department of
financial services,] and as to insurance companies only  to  the  extent
and  upon  such conditions as may be authorized by the state superinten-
dent of financial services.   As used in  this  subdivision,  the  terms

S. 6738                            31

"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.
  S  68. Subdivision 1 of section 30 of the private housing finance law,
as further amended by section 104 of part A of chapter 62 of the laws of
2011, 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 financial services [or the superintendent of financial
services]  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 69. Subdivision 2 of section 94 of the private housing finance  law,
as  amended  by chapter 23 of the laws of 1976 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, 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 department of financial
services  [or  the  state  department of 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,
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 OR HER
  S 70. Subdivision 2 of section 122 of the private housing finance law,
as amended by chapter 804 of the laws of 1981 and as further amended  by

S. 6738                            32

section  104  of part A of chapter 62 of the laws of 2011, 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 financial services [or  the  superinten-
dent  of  financial  services], 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 71. Subdivision 1 of section 307 of the private housing finance law,
as further amended by section 104 of part A of chapter 62 of the laws of
2011, 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
of  banking  organizations[,  the superintendent of financial services,]
and in the case of insurance and surety companies[,] the  superintendent
of  financial  services[,]  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
corporation among the members in the same proportion  that  the  maximum

S. 6738                            33

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 obli-
gations of such corporation, issued in accordance with and by virtue  of
this article and the by-laws of such corporation, shall be legal invest-
ments  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  72.  Section  311 of the private housing finance law, as amended by
chapter 891 of the laws of 1971 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, 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 financial
services [or the superintendent of financial services] for  the  purpose
of  determining  the  corporation's  net  worth and the soundness of its
management and operating policies. [The examination is to be made by the
superintendant of financial services in alternate years commencing  with
the  examination  for  the  year  ending  October thirty-first, nineteen
hundred seventy-one, and by the superintendent of financial services  in
alternate  years  commencing  with  the  examination for the year ending
October thirty-first, nineteen  hundred  seventy-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 findings, conclusions and  recom-
mendations 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[,  super-
intendent   of  financial  services]  and  superintendent  of  financial
services on or before January first of each year.
  S 73. Subdivision 2 of section 407 of the private housing finance law,
as added by chapter 499 of the laws of 1970 and as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  2. Banking institutions AND  INSURANCE  COMPANIES  may  exercise  such
power  on  such  conditions  as  may  be prescribed OR AUTHORIZED by the
superintendent of financial services [of the state department of  finan-
cial  services  and  insurance companies may exercise such power only to
the extent and on such conditions as may  be  authorized  by  the  state
superintendent of financial services].
  S  74.  Section  454  of  the private housing finance law, as added by
chapter 862 of the laws of 1973 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  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
superintendent  of financial services [of the state department of finan-
cial services], for which services a bank  may  make  and  collect  such

S. 6738                            34

service  charges  as  the  superintendent  [of financial services] shall
prescribe or approve.
  S 75. Subdivision 1 of section 474 of the private housing finance law,
as  added  by  chapter 786 of the laws of 1987 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, 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 superintendent of financial services [of the state department of
financial services] for which services a bank may make and collect  such
service  charges  as  the  superintendent  [of financial services] shall
prescribe or approve.
  S 76. Subdivision 7 of section 802 of the private housing finance law,
as added by chapter 822 of the laws of 1976 and as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  7. Banking organizations [may exercise such power on  such  conditions
as  may be prescribed by the superintendent of financial services of the
state department of financial services,]  and  insurance  companies  may
exercise  such power only to the extent and on such conditions as may be
authorized by the state superintendent of financial services.
  S 77. Subdivision 1 of section 1835-b of the public  authorities  law,
as  amended by chapter 118 of the laws of 1990 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  1.  To  prescribe  standards and criteria for the granting of applica-
tions for loans to lenders and for the making of loans for  agricultural
business  projects,  which  standards  and  criteria shall implement the
intent and purposes of this subtitle. In developing such  standards  and
criteria  the  authority shall consult with the superintendent of finan-
cial services [and superintendent of financial services]  regarding  the
qualifications  of  lenders and with the commissioner of agriculture and
markets and the commissioner of economic development regarding the stan-
dards and criteria for the making of loans for business projects.
  S 78. Subdivision 3 of section 4602 of the public health law, as added
by chapter 401 of the laws of 2003 and as further amended by section 104
of part A of chapter 62 of the laws of  2011,  is  amended  to  read  as
follows:
  3.  The council shall establish guidelines under which the commission-
er[, with the advice and consent  of  the  superintendent  of  financial
services,]  is authorized to approve or reject any proposed refinancing,
if the council has already approved an application pursuant to paragraph
a of subdivision two of this section.
  S 79. Paragraph (e) of subdivision 1 of section 73 of the public offi-
cers law, as amended by chapter 813 of the laws of 1987 and  as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  (e) The term "regulatory agency" shall mean the department  of  finan-
cial services, [department of financial services,] state liquor authori-
ty,  department  of  agriculture  and  markets, department 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

S. 6738                            35

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.
  S  80. Paragraph (a) of subdivision 3 and paragraph (a) of subdivision
3-a of section 265-b of the real property law, paragraph (a) of subdivi-
sion 3 as added by chapter 472 of the laws of  2008,  paragraph  (a)  of
subdivision  3-a  as  added  by chapter 553 of the laws of 2010 and such
subdivisions as further amended by section 104 of part A of  chapter  62
of the laws of 2011, are amended to read as follows:
  (a) A distressed property consulting contract shall:
  (i) contain the entire agreement of the parties;
  (ii)  be  provided in writing to the homeowner for review before sign-
ing;
  (iii) be printed in at least twelve point type and written in the same
language that is used by the  homeowner  and  was  used  in  discussions
between  the  consultant  and the homeowner to describe the consultant's
services or to negotiate the contract;
  (iv) fully disclose  the  exact  nature  of  the  distressed  property
consulting services to be provided by the distressed property consultant
or  anyone  working in association with the distressed property consult-
ant;
  (v) fully disclose the total amount and terms of compensation for such
consulting services;
  (vi) contain the name, business address and telephone  number  of  the
consultant and the street address (if different) and facsimile number or
email address of the distressed property consultant where communications
from the homeowner may be delivered;
  (vii)  be  dated  and  personally  signed  by  the  homeowner  and the
distressed property consultant and be witnessed and  acknowledged  by  a
New York notary public; and
  (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  Department  of  Financial   Services,   [www.banking.state.ny.us]
HTTP://WWW.DFS.NY.GOV or by calling the Department of Financial Services
toll-free  at  [1-877-BANK-NYS  (]1-877-226-5697[)].  (PLEASE  NOTE: THE
DEPARTMENT MAY FROM TIME TO TIME CHANGE  THE  NUMBER  OF  ITS  TOLL-FREE
HELPLINE  AND/OR  ITS  WEB ADDRESS.) The law requires that this contract
contain the entire agreement between 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. 6738                            36

  (a) All advertisements disseminated by a distressed property  consult-
ant  must  prominently  include  the  following  statement: "In New York
State, Housing Counselors, who are approved by the  U.S.  Department  of
Housing  &  Urban Development or the New York State Department of Finan-
cial  Services, may provide the same or similar services as a distressed
property consultant for free. A list of approved Housing Counselors  can
be  found on the New York State Department of Financial Services website
at [www.banking.state.ny.us] HTTP://WWW.DFS.NY.GOV or by contacting  the
New   York   State   Department   of  Financial  Services  toll-free  at
[1-877-BANK-NYS (]1-877-226-5697[)].  You should consider consulting  an
attorney  or  a government-approved housing counselor before signing any
legal document concerning a distressed property consultant." Such state-
ment, if disseminated by print media or the internet, shall  be  clearly
and  legibly  printed  or  displayed  in not less than twelve-point bold
type, or, if the advertisement is printed to be displayed in print  that
is smaller than twelve point, in bold type print that is no smaller than
the  print  in  which  the  text  of  the  advertisement  is  printed or
displayed.
  S 81. Paragraph (g) of subdivision 1 of section 280 of the real  prop-
erty  law  is  REPEALED, and paragraph (f) of subdivision 1, as added by
chapter 613 of the laws of 1993 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  (f) Superintendent of financial services.  The  superintendent  estab-
lished  pursuant  to section [thirteen] TWO HUNDRED TWO of the [banking]
FINANCIAL SERVICES law.
  S 82. Paragraph (g) of subdivision 1 of  section  280-a  of  the  real
property law is REPEALED, and paragraph (f) of subdivision 1 as added by
chapter 613 of the laws of 1993 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  (f)  Superintendent  of  financial services. The superintendent estab-
lished pursuant to section [thirteen] TWO HUNDRED TWO of  the  [banking]
FINANCIAL SERVICES law.
  S  83.  Subdivision 5 of section 1303 of the real property actions and
proceedings law, as amended by chapter 358  of  the  laws  of  2010,  is
amended to read as follows:
  5.  The  notice  required  by paragraph (b) of subdivision one of this
section shall appear as follows:
              Notice to Tenants of Buildings in Foreclosure
  New York State Law requires that we provide you this notice about  the
foreclosure process. Please read it carefully.
  We,  (name  of  foreclosing  party), are the foreclosing party and are
located at (foreclosing party's address). We can be  reached  at  (fore-
closing party's telephone number).
  The dwelling where your apartment is located is the subject of a fore-
closure  proceeding. If you have a lease, are not the owner of the resi-
dence, and the lease requires payment of rent that at the  time  it  was
entered  into  was  not substantially less than the fair market rent for
the property, you may be entitled to remain in occupancy for the remain-
der of your lease term. If you do not have a lease, you will be entitled
to remain in your home until ninety days after any person or entity  who
acquires title to the property provides you with a notice as required by
section  1305  of  the  Real  Property  Actions and Proceedings Law. The
notice shall provide information regarding the name and address  of  the
new  owner  and  your rights to remain in your home. These rights are in
addition to any others you may have if you are a subsidized tenant under

S. 6738                            37

federal, state or local law or if you  are  a  tenant  subject  to  rent
control, rent stabilization or a federal statutory scheme.
  ALL  RENT-STABILIZED TENANTS AND RENT-CONTROLLED TENANTS ARE PROTECTED
UNDER THE RENT REGULATIONS WITH RESPECT TO EVICTION AND LEASE  RENEWALS.
THESE  RIGHTS  ARE UNAFFECTED BY A BUILDING ENTERING FORECLOSURE STATUS.
THE TENANTS IN RENT-STABILIZED AND RENT-CONTROLLED BUILDINGS CONTINUE TO
BE AFFORDED THE SAME LEVEL OF PROTECTION EVEN THOUGH THE BUILDING IS THE
SUBJECT OF FORECLOSURE. EVICTIONS CAN  ONLY  OCCUR  IN  NEW  YORK  STATE
PURSUANT TO A COURT ORDER AND AFTER A FULL HEARING IN COURT.
  If you need further information, please call the New York State [Bank-
ing  Department's]  DEPARTMENT OF FINANCIAL SERVICES' toll-free helpline
at [1-877-BANK-NYS (]1-877-226-5697[)] or visit the Department's website
at  [http://www.banking.state.ny.us]  HTTP://WWW.DFS.NY.GOV.     (PLEASE
NOTE:    THE  DEPARTMENT  MAY FROM TIME TO TIME CHANGE THE NUMBER OF ITS
TOLL-FREE HELPLINE AND/OR ITS WEB ADDRESS.)
  S 84. Subdivision 1 of section 1304 of the real property  actions  and
proceedings  law,  as  amended by chapter 507 of the laws of 2009 and as
further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, is amended to read as follows:
  1.  Notwithstanding  any other provision of law, with regard to a home
loan, at least ninety days before a lender, an assignee  or  a  mortgage
loan  servicer  commences  legal  action against the borrower, including
mortgage foreclosure, such lender, assignee 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
Department  of Financial Services' toll-free helpline at [1-877-BANK-NYS
(]1-877-226-5697[)]   or   visit    the    Department's    website    at
[http://www.banking.state.ny.us] HTTP://WWW.DFS.NY.GOV (PLEASE NOTE: THE
DEPARTMENT  MAY  FROM  TIME  TO  TIME CHANGE THE NUMBER OF ITS TOLL-FREE
HELPLINE AND/OR ITS WEB ADDRESS.)"
  S 85. Subdivision 1 of section 1304 of the real property  actions  and
proceedings  law,  as  added  by  chapter 472 of the laws of 2008 and as

S. 6738                            38

further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, is 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
Department  of Financial Services' toll-free helpline at [1-877-BANK-NYS
(]1-877-226-5697[)]   or   visit    the    Department's    website    at
[http://www.banking.state.ny.us]  HTTP://WWW.DFS.NY.GOV.  (PLEASE  NOTE:
THE DEPARTMENT MAY FROM TIME TO TIME CHANGE THE NUMBER OF ITS  TOLL-FREE
HELPLINE AND/OR ITS WEB ADDRESS.)"
  S  86.  Subdivision  3 of section 953 of the real property tax law, as
added by chapter 440 of the laws of  1989  and  as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, 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
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  superintendent  of  financial  services 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
deposits or share accounts from the general public.
  S 87. Paragraph a of subdivision 8 of section 5 of the  state  finance
law,  as  amended  by  chapter  201  of  the laws of 1997 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  is
amended to read as follows:

S. 6738                            39

  a.  The  term  "financial  organization"  shall  mean  an organization
authorized to do business in the state of New York and (A) which  is  an
authorized  fiduciary  to act as a trustee pursuant to the provisions of
an act of congress entitled "Employee Retirement Income Security Act  of
1974"  as such provisions may be amended from time to time, or an insur-
ance company; and (B) (i) is licensed or chartered by the state  depart-
ment  of financial services, (ii) [is licensed or chartered by the state
department of financial services, (iii)] is chartered by  an  agency  of
the  federal government, [(iv)] (III) is subject to the jurisdiction and
regulation of the securities and  exchange  commission  of  the  federal
government,  or  [(v)]  (IV) is any other entity otherwise authorized to
act in this state as a trustee pursuant to the provisions of an  act  of
congress  entitled  "Employee Retirement Income Security Act of 1974" as
such provisions may be amended from time to time.
  S 88. Section 14 of the state finance law, the  closing  paragraph  as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, 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] THAT 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 super-
vision or control of such department or the head thereof  or  under  the
supervision  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
organization, which was derived from any source whether or not deposited
in  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]  THE
GOVERNOR  may desire, shall transmit to the legislature, with the annual
budget, a recapitulation 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
superintendent of financial services [or the superintendent of financial
services] 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  89.  Section  106 of the state finance law, the second undesignated
paragraph as amended by chapter 293 of the laws of 1992,  subdivision  B
and the closing paragraph as amended by chapter 583 of the laws of 1941,
subdivision C as added by chapter 551 of the laws of 2010, and the clos-
ing  paragraph as further amended by section 104 of part A of chapter 62
of the laws of 2011, is amended to read as follows:

S. 6738                            40

  S 106. Deposit of moneys by state  officers,  state  institutions  and
charitable  and  benevolent  institutions.  Such  moneys received by the
commissioner of taxation and finance as are now deposited to the  credit
of  the  comptroller  pursuant  to statute, and thereafter paid into the
state  treasury,  shall  be deposited by him OR HER to the credit of the
comptroller in such bank or trust company as shall be designated by  the
comptroller at such rate of interest, if any, as shall be agreed upon by
the depositary and the comptroller.
  All  other moneys received by the commissioner of taxation and finance
except as provided in section one hundred five of this article  and  all
moneys  received  by  any  other state officer or other person receiving
moneys belonging to the state, or for which such state officer or  other
person  may  be  responsible  in  his  OR HER official capacity, and all
moneys received by any state institution,  except  for  moneys  received
pursuant to a clinical practice plan established pursuant to subdivision
fourteen  of  section  two  hundred six of the public health law and all
moneys received from the state by any charitable or benevolent  institu-
tion  supported  in whole or in part by the state, shall be deposited to
his, HER, or its credit in such bank or trust company as shall be desig-
nated by the comptroller at such rate of interest, if any, as  shall  be
agreed upon by the depositary and the comptroller.
  Every  bank  or  trust  company  designated by the comptroller for the
deposit of any such moneys
  A. Shall give a bond with sufficient sureties for the security of such
deposit, to be approved by the comptroller  and  filed  in  his  OR  HER
office,
  B.  Or  shall, in lieu of such surety bond, with the permission of the
comptroller deposit with  the  comptroller  such  outstanding  unmatured
bonds  or  notes  or  such certified check or checks as are described in
section one hundred five of this article. The comptroller may, in his OR
HER discretion, accept and substitute for any surety bond or undertaking
given, pursuant to this section, a bond or undertaking in such form  and
with  other  surety  or  sureties, or other security as required by this
section, for such sums as may be prescribed and approved  by  the  comp-
troller  for the safe keeping and prompt payment of such moneys on legal
demand therefor with interest, if any, and the comptroller may thereupon
execute and deliver to the surety or sureties, upon the former  bond  or
undertaking,  a  release  of  such surety or sureties from any liability
accruing subsequent to the date of such release. Such release shall  not
relieve  such surety or sureties from any obligation for losses incurred
prior to the date thereof. On the withdrawal of all moneys from any such
depository and a closing and settlement  of  the  account  thereof,  the
comptroller  may in his OR HER discretion certify to such settlement and
release to the obligor or owner or  owners  entitled  thereto,  of  such
surety  bond,  undertaking, certified check or checks, or other security
deposited with him OR HER.
  C. Notwithstanding any other provisions of  this  section,  the  comp-
troller shall not designate for the deposit of moneys by state officers,
state  institutions and charitable and benevolent institutions supported
in whole or in part by the state a  banking  institution  to  which  the
Community  Reinvestment  Act of 1977, United States P.L. 95-128, applies
unless such institution shall have received a record of  performance  no
lower  than  "satisfactory"  as  determined under such act in accordance
with section twenty-eight-b of the banking law.

S. 6738                            41

  This section shall not apply to any funds held by  the  superintendent
of financial services [or the superintendent of financial services] in a
fiduciary capacity.
  S 90. Subdivisions 6 and 7 of section 201 of the state finance law, as
amended  by  chapter  233  of the laws of 1992 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, are amended  to
read as follows:
  6.  Notwithstanding  any  other law to the contrary, where, and to the
extent that, an agreement between the state and an employee organization
pursuant to article fourteen of the civil service law authorizes partic-
ipation in an individual retirement account plan by employees covered by
such agreement, the comptroller, after  receipt  of  written  directions
from  the  director  of  employee  relations where such agreement covers
employees in the executive branch or from the chief administrator of the
courts where such agreement covers employees in the judicial branch,  is
authorized  to deduct from the salary of any employee covered by such an
agreement an amount [which] THAT the employee  may  specify  in  writing
filed in a manner determined by the comptroller for contribution to such
plan  in  accordance  with  the  Economic Recovery Tax Act of 1981 (P.L.
97-34) and transmit deductions so withheld to the financial organization
issuing such plan in accordance with the provisions of  such  agreement.
For  the  purposes  of  this subdivision, subject to the rules and regu-
lations promulgated by the comptroller, the  term  "financial  organiza-
tion"  shall mean an organization authorized to do business in the state
of New York and which is an authorized fiduciary to  act  as  a  trustee
under  an individual retirement account plan established pursuant to the
provisions of an act of congress entitled  "Employee  Retirement  Income
Security  Act  of  1974"  as such provisions may be amended from time to
time, and (i) is licensed or chartered by the state department of finan-
cial services, (ii) [is licensed or chartered by the state department of
financial services, (iii)] is chartered by  an  agency  of  the  federal
government,  [(iv)]  (III) is subject to the jurisdiction and regulation
of the securities and exchange commission of the federal government,  or
[(v)] (IV) is any other entity otherwise authorized to act in this state
as a trustee of an individual retirement account plan established pursu-
ant  to  the provisions of an act of congress entitled "Employee Retire-
ment Income Security Act of 1974" as such provisions may be amended from
time to time; provided, however, that any contributions made pursuant to
this section shall be made to a financial organization whose offices are
located in this state. Any such written authorization may  be  withdrawn
by  the  employee  at  any time upon filing written notice of such with-
drawal in a manner determined by the comptroller or such  deduction  may
be terminated on notice to the comptroller by the financial organization
in accordance with the terms of such plan. Notwithstanding this subdivi-
sion,  an organization defined by subdivision nine of section two of the
banking law or a credit union chartered by the United States and  having
its  principal  office  in  the state of New York and which is otherwise
entitled under this section to receive payments deducted from the salary
of a state employee shall have the right to, and continue  to  have  the
right to, receive such payments for the purpose of individual retirement
account plans offered by such organizations.
  7.  Notwithstanding  any  other law to the contrary, where, and to the
extent that, an agreement between the state and an employee organization
entered into pursuant to article fourteen of the civil  service  law  so
provides  on  behalf  of  employees  in  the collective negotiating unit
designated as the professional  services  negotiating  unit  established

S. 6738                            42

pursuant to article fourteen of the civil service law authorizes partic-
ipation  in  an annuity contract by employees covered by such agreement,
the comptroller, after receipt of written directions from  the  director
of  employee  relations,  is authorized to deduct from the salary of any
employee covered by such an agreement an amount [which] THAT the employ-
ee may specify in writing filed in a  manner  determined  by  the  comp-
troller  for  contribution  to  such  plan  or  plans in accordance with
section four hundred three (b) of the Internal Revenue Code  (26  USC  S
403(b))  and  transmit deductions so withheld to the financial organiza-
tion  or  organizations  issuing  such  plan  in  accordance  with   the
provisions  of  such  agreement.  For  the purposes of this subdivision,
subject to the rules and regulations promulgated by the comptroller, the
term "financial organization" shall mean an organization  authorized  to
do  business in the state of New York and which (i) is licensed or char-
tered by the state department of financial services, (ii)  [is  licensed
or  chartered  by  the state department of financial services, (iii)] is
chartered by an agency of the federal government,  or  [(iv)]  (III)  is
subject  to  the  jurisdiction  and  regulation  of  the  securities and
exchange commission of the federal government; provided,  however,  that
any contribution made pursuant to this section shall be made to a finan-
cial  organization  whose  offices  are  located in this state. Any such
written authorization may be withdrawn by the employee at any time  upon
filing  written  notice of such withdrawal in a manner determined by the
comptroller or such deduction may be terminated on notice to  the  comp-
troller  by  the  financial organization in accordance with the terms of
such plan.
  S 91. Paragraph b of subdivision 1 of section 208 of the state finance
law, as added by chapter 460 of the laws of 1982 and as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  b. The term "financial organization" as used  in  this  section  shall
mean  an  organization  [which] THAT is authorized to do business in the
state of New York, and is licensed or chartered by the state  department
of  financial  services [or the state department of financial services],
is chartered by an agency of the federal government, or  is  subject  to
the jurisdiction of the securities and exchange commission.
  S  92.  Section  94  of  article  7 of chapter 784 of the laws of 1951
constituting the defense emergency act of 1951 is REPEALED.
  S 93. This act shall take effect immediately provided,  however,  that
the  amendments to paragraph 3 of subdivision (e) of section 1120 of the
insurance law made by section fifty-eight of this act shall  be  subject
to  the expiration and reversion of such paragraph pursuant to chapter 2
of the laws of 1998, as amended, when upon such date the  provisions  of
section fifty-nine of this act shall take effect; and provided, further,
that  the  amendments  to  section 1304 of the real property actions and
proceedings law made by section eighty-four of this act shall be subject
to the expiration and reversion of such subdivision when upon such  date
the provisions of section eighty-five of this act shall take effect.

Co-Sponsors

S6738A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9820A
Law Section:
Banking Law
Laws Affected:
Amd Various Laws, generally

S6738A (ACTIVE) - Bill Texts

view summary

Relates to the consolidation of the bank and insurance departments.

view sponsor memo
BILL NUMBER:S6738A

TITLE OF BILL:

An act
to amend the banking law, the business corporation law, the civil
practice law and rules, the education law, the executive law, the
general municipal law, the insurance law,
the limited liability company law, the not-for-profit corporation
law, the partnership law,
the personal property law, the
private housing finance law, the public authorities law, the public
health law, the public officers law, the real property law, the real
property actions and proceedings law, the real property tax law and the
state finance law, in relation to the consolidation of the banking and
insurance departments; and to repeal certain provisions of the real
property law and the defense emergency act of 1951, relating thereto

PURPOSE OF THE BILL:

The purpose of the Bill is to amend various laws to reflect the
consolidation of the Banking and Insurance Departments, pursuant to
Part A of Chapter 62 of the Laws of 2011, the Financial Services Law
(the "FSL"), into the Department of Financial Services. These changes
are non-substantive in nature and reflect the merger of Banking and
Insurance Departments.

SUMMARY OF PROVISIONS:

The following sections of law are amended by this bill: BL §§ 6-k,
14-a, 14-b, 14-e, 18-a, 26, 32, 39, 44, 96, 97, 98, 104, 108, 130,
140-a, 143, 143-a, 143-b, 195, 201-a, 202-b, 209, 235, 242, 247, 251,
293, 384, 397, 399, 399-a, 412, 508, 550, 590, 595-b, 599-e, 599-n,
605, 2001, 4001-a, 4001-b, 7006 and 7014; BSC: § 301; CVP: § 7701;
EDN: §695-b; EXC: §§: 63, 161, 292, 296-a and 835; GMU: §§ 215, 219-c
and 219-k; ISC: §§ 1118, 1120, 4402, 4403 and 9111-b; LLC: § 204;
NPC: §301; PTR: § 121-102; PEP: § 303; PVH: §§ 15, 30, 94, 122,
307, 311, 407, 454, 474 and 802; PBA: §1835-b;
POL: § 73; RPP: §§ 265-b, 280 and 280-a; RPA: §§ 1303 and 1304; RPT:
§ 953; STF: §§ 5, 14, 106, 201 and 208; and DEA: Article 7.

EXISTING LAW:

The existing provisions of law amended by this bill are not changed
substantively by the provisions of this bill.

PRIOR LEGISLATIVE HISTORY:

This is a new bill.

STATEMENT IN SUPPORT:

The changes provide herein will clarify existing law to conform to
changes made by the FSL. The changes will assist readers and
facilitate legal research.


FISCAL IMPLICATIONS:

There are no fiscal implications from this bill.

EFFECTIVE DATE:

The bill would be effective upon enactment.

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

                                 6738--A
    Cal. No. 476

                            I N  S E N A T E

                             March 15, 2012
                               ___________

Introduced  by  Sens. SEWARD, GRIFFO -- (at request of the Department of
  Financial Services) -- read twice and ordered printed, and when print-
  ed to be committed to the Committee on  Banks  --  reported  favorably
  from  said committee, ordered to first and second report, ordered to a
  third reading, amended and ordered reprinted, retaining its  place  in
  the order of third reading

AN ACT to amend the banking law, the business corporation law, the civil
  practice  law  and  rules,  the  education law, the executive law, the
  general municipal law, the insurance law, the limited liability compa-
  ny law, the not-for-profit corporation law, the partnership  law,  the
  personal  property  law,  the  private housing finance law, the public
  authorities law, the public health law, the public officers  law,  the
  real  property law, the real property actions and proceedings law, the
  real property tax law and the state finance law, in  relation  to  the
  consolidation  of the banking and insurance departments; and to repeal
  certain provisions of the real property law and the defense  emergency
  act of 1951, relating thereto

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

  Section 1. Paragraph (c) of subdivision 2 of section 6-k of the  bank-
ing  law,  as  added  by  chapter 563 of the laws of 1992 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  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  superintendent  [of  financial  services]  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 deposits or share accounts from the general public.
  S 2. Subdivisions 2, 3, 4 and 5 of section 14-a of the banking law, as
added  by  chapter  883  of  the  laws  of 1980 and such subdivisions as

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14494-04-2

S. 6738--A                          2

further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, are amended to read as follows:
  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
superintendent  [of financial services] pursuant to subdivision three of
this section.
  3. The superintendent [of financial services] shall have  the  power[,
by a three-fifths vote of all its members,] to adopt such regulations as
[it]  THE SUPERINTENDENT shall deem necessary or proper to implement the
provisions of this section. The superintendent [of  financial  services]
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 superintendent [of finan-
cial services] 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 superintendent [of financial services  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  3.  Subdivisions  1,  2  and  3 of section 14-b of the banking law,
subdivision 1 as amended by chapter 267 of the laws  of  1987,  subdivi-
sions  2  and  3  as amended by chapter 342 of the laws of 1986 and such
subdivisions as further amended by section 104 of part A of  chapter  62
of the laws of 2011, are amended to read as follows:
  1.  The superintendent [of financial services] 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  institution 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 cooper-
ative 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,  nineteen  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  superintendent  [of  financial
services]  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 superintendent [of financial services] shall  deem
to  be appropriate. Prior to the [superintendent of financial services']
SUPERINTENDENT'S prescription of any such minimum rate of interest,  the
superintendent  shall  [make a written recommendation to the superinten-
dent of financial services as to such minimum rate of  interest,  recit-
ing]  ISSUE  A  STATEMENT IN WRITING SETTING FORTH the economic and cost
data and criteria upon  which  such  [recommendation]  DETERMINATION  is

S. 6738--A                          3

based.  Prior  to making such [recommendation] DETERMINATION, the super-
intendent may invite presentation, by interested persons, of information
and data relating to economic and cost factors relevant to such  minimum
rate of interest.
  3.  The  superintendent  [of  financial  services] may promulgate such
regulations as [it] THE SUPERINTENDENT deems  necessary  and  proper  to
implement  and define the provisions of this section. The superintendent
[of financial services] 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
superintendent  [of  financial  services], and of any rule or regulation
adopted pursuant to this subdivision.
  S 4. 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 and the section heading, the opening and closing
paragraphs of subdivision 1 and subdivisions 2 and 3 as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  S 14-e. Power of the superintendent [of financial services] to author-
ize the operation of savings banks and savings and loan associations  in
stock form.
  1.  Notwithstanding  any  other  provision of law to the contrary, the
superintendent [of financial services] is authorized[, by a three-fifths
vote of all its members,] to promulgate such rules  and  regulations  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 superintendent [of financial services] is authorized to define and
implement, by [general] regulation, the terms  and  provisions  of  this
section.  In adopting such regulations, the superintendent [of financial
services] 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 organiza-
tion 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 superintendent  [of  financial  services]  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 THIS ARTICLE OR article [two,]  fifteen  or  sixteen  of
this chapter.
  2. Such applications as the superintendent [of financial services] 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 superintendent [of financial
services], if [it] THE SUPERINTENDENT shall determine that  unusual  and
extraordinary  circumstances exist, shall be authorized, by resolution[,

S. 6738--A                          4

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 transaction 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 5. Subdivisions 4 and 5 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, the opening
paragraphs  of  such  subdivisions  as further amended by section 104 of
part A of chapter 62 of the  laws  of  2011,  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 superintendent of
financial services] that may necessitate, as determined  by  the  super-
intendent, a determination regarding the character or fitness and/or the
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 OTHER application requiring the approval of the
superintendent [or the superintendent of financial services], 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.
  S  6.  Section 26 of the banking law, as amended by chapter 315 of the
laws of 2008 and as further amended by section 104 of part A of  chapter
62 of the laws of 2011, 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

S. 6738--A                          5

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 superintendent of financial services
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 7. Subdivision 3 of section 32 of the banking law, as added by chap-
ter  618  of  the  laws of 1976 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  3. Notwithstanding the  foregoing  provisions  of  this  section,  the
superintendent  [of  financial  services]  shall  have  the power[, by a
three-fifths vote of all its members,] to promulgate  such  [general  or
specific]  regulations  as  [it]  THE SUPERINTENDENT 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  organization  must  comply with the
requirements of subdivision one of this section.
  S 8. 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 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  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 superinten-
dent of financial services] 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  superintendent  of  financial
services] 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] THE SUPERINTENDENT may, in [his or her] THE SUPERINTENDENT'S
discretion,  issue  an  order  directing that such banking organization,
bank holding company, branch or agency of a foreign banking corporation,
registered mortgage broker, licensed mortgage 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. 6738--A                          6

  S 9. Paragraph (a) of subdivision 1 and paragraph (a) of subdivision 2
of section 44 of the banking law, paragraph  (a)  of  subdivision  1  as
amended by chapter 123 of the laws of 2009, paragraph (a) of subdivision
2  as amended by chapter 702 of the laws of 2006, and such paragraphs as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, are 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, licensed
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
superintendent  of  financial  services] in connection with the grant of
any application or request, or any written agreement entered  into  with
the superintendent.
  (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 superintendent of financial services]  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.
  S 10. Subdivision 10 of section 96 of the banking law, as  amended  by
chapter 259 of the laws of 1994 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  10.  To  exercise,  subject  to such regulations as may be issued from
time to time by the superintendent [of financial services], 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 superintendent of financial
services] as provided in section one  hundred  five  of  this  [chapter]
ARTICLE,  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 securities issued by any foreign  nation  or  any

S. 6738--A                          7

political  subdivision,  agency  or  instrumentality  thereof, engage or
participate, directly or indirectly, in the  business  of  underwriting,
selling or distributing securities.
  S  11.  The  opening  paragraph  of subdivision 5 of section 97 of the
banking law, as amended by chapter 566 of the  laws  of  2004  and  such
subdivision as further amended by section 104 of part A of chapter 62 of
the laws of 2011, is amended to read as follows:
  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 superintendent [of
financial services], or [by] regulations promulgated by the  superinten-
dent  [of  financial  services,  upon  a  three-fifths  vote  of all its
members].
  S 12. Paragraph (d) of subdivision 1 of section 98 of the banking law,
as amended by chapter 512 of the laws of 1977 and as further amended  by
section  104  of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  (d) Such [as may be  specifically  authorized  by  resolution  of  the
superintendent of financial services upon a three-fifths vote of all its
members,   provided,  however,  that  the  superintendent  of  financial
services 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 AS MAY BE SPECIFICALLY APPROVED
BY THE SUPERINTENDENT.
  S 13. Subdivision 2 of section 104 of the banking law, as  amended  by
chapter 664 of the laws of 1958 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is 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 superintendent [of financial services] 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.
  S 14. Paragraphs (a) and (c) of subdivision 8 of section  108  of  the
banking  law, as added by chapter 344 of the laws of 1974, such subdivi-
sion as renumbered by chapter 512 of the laws of  1977  and  as  further
amended  by section 104 of part A of chapter 62 of the laws of 2011, are
amended to read as follows:
  (a) The superintendent [of financial services] shall have the  power[,
by  a  three-fifths vote of all its members,] to prescribe by regulation

S. 6738--A                          8

(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.
  (c)  In prescribing a maximum charge pursuant to paragraph (a) of this
subdivision, the superintendent [of financial services]  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  superintendent
[of  financial  services]  shall  deem  to  be appropriate. Prior to the
[superintendent of financial services'] SUPERINTENDENT'S prescribing any
such maximum charge, the superintendent shall  [make]  ISSUE  a  written
[recommendation  to  the  superintendent of financial services] DETERMI-
NATION as to such maximum charge, reciting the cost and other data  upon
which [his recommendation] THE DETERMINATION is based.
  S  15.  Paragraph  (c)  of subdivision 7 of section 130 of the banking
law, as added by chapter 299 of the laws of 1969 and as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  (c) The superintendent [of financial services] shall  have  power  [by
three-fifths  vote of all its members] to adopt such regulations as [it]
THE SUPERINTENDENT shall deem  necessary  or  proper  to  implement  the
provisions of this section.
  S  16.  Section 140-a of the banking law, as amended by chapter 291 of
the laws of 1987 and as further amended by section  104  of  part  A  of
chapter 62 of the laws of 2011, is amended to read as follows:
  S 140-a.   Stock   option  plans.  Subject  to  such  regulations  and
restrictions as may be prescribed by the  superintendent  [of  financial
services  by a three-fifths vote of all the members thereof], every bank
and every trust company may grant options  to  purchase  authorized  and
unissued  shares of its capital stock to officers, directors and employ-
ees, for a consideration as authorized by section five thousand four  of
this  chapter  of  not less than one hundred per cent 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
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 17. Paragraph (b) of subdivision 2 of section  143  of  the  banking
law,  as  amended  by  chapter  217  of  the laws of 2010 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  is
amended to read as follows:
  (b) The superintendent [of financial services] 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

S. 6738--A                          9

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 superintendent [of  financial  services]  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
superintendent  [of  financial  services] shall have the power to revoke
such permission [by a like vote] whenever [it] THE SUPERINTENDENT finds,
after a reasonable notice and an  opportunity  to  be  heard,  that  the
public interest requires such revocation.
  S 18. Subdivision 3 of section 143-a of the banking law, as amended by
chapter 217 of the laws of 2010 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  3.  If  no  action  to  be  taken  pursuant to the plan of acquisition
requires [the  prior]  approval  of  the  superintendent  [of  financial
services] pursuant to section 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,  and in determining whether or not to approve any
such plan the superintendent shall take into consideration the  declara-
tion  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 superintendent of financial services, the superintendent
shall submit such plan of acquisition together with his or her recommen-
dations  in  regard  thereto  and  all  papers, correspondence and other
information in his or her possession and relating thereto, to the super-
intendent of financial services for its approval or disapproval as  part
of  the application submitted to it pursuant to such section one hundred
forty-three-b.] If the superintendent [or the superintendent  of  finan-
cial services, as required,] 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  superintendent  of  financial
services,] 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.
  S  19.  Subdivisions  1,  2 and 3 of section 143-b of the banking law,
subdivision 1 as amended by chapter 217 of the laws of 2010, subdivision
2 as amended by section 20 of part O of chapter 59 of the laws of  2006,
subdivision  3  as  amended  by chapter 793 of the laws of 1980 and such
subdivisions as further amended by section 104 of part A of  chapter  62
of the laws of 2011, are amended to read as follows:
  1.  It  shall be unlawful except with the prior approval of the super-
intendent [of financial services 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 company which has
submitted to the  superintendent  a  plan  of  acquisition  pursuant  to
section one hundred forty-three-a of this article for an acquisition not
involving  a  change  of  control of the banking institution. As used in
this section, the term "control" means the possession, directly or indi-
rectly, of the power to direct or cause the direction of the  management
and  policies of a banking institution, whether through the ownership of

S. 6738--A                         10

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  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 institution solely by reason of his or her being an
officer  or  director of such banking institution or company. The super-
intendent may in [his or her] THE SUPERINTENDENT'S 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 institu-
tion 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  superintendent  of  financial
services],  by  rule or regulation, may prescribe as necessary or appro-
priate for the purpose of making the determination required by  subdivi-
sion 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  department
of financial services. The superintendent shall [submit such application
together  with  his  recommendation  in  regard  thereto and all papers,
correspondence and other information  in  his  possession  and  relating
thereto,  to  the  superintendent  of financial services 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 thereof shall be posted
upon the bulletin board of the  department  of  financial  services.  In
determining  whether  or not to approve any such application, the super-
intendent [of financial services] 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 thereof, 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  20. Section 195 of the banking law, as added by chapter 1064 of the
laws of 1960 and as further amended by section 104 of part A of  chapter
62 of the laws of 2011, is amended to read as follows:
  S 195. Rules, regulations and orders. The superintendent [of financial
services  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]  THE  SUPERINTENDENT  may  deem necessary to enable [it] THE SUPER-
INTENDENT to administer and carry out the provisions of this article and
to prevent evasions thereof.

S. 6738--A                         11

  S 21. Subdivision 1 of section 201-a of the banking law, as amended by
chapter 120 of the laws of 1968 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, 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
period  not exceeding one year may, upon the approval of the superinten-
dent [and the superintendent  of  financial  services],  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 22. Subdivisions 1 and 2 of section 202-b of  the  banking  law,  as
amended  by chapter 131 of the laws of 2002 and subdivision 2 as amended
by chapter 496 of the laws of 1993  and  such  subdivisions  as  further
amended  by section 104 of part A of chapter 62 of the laws of 2011, 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  super-
intendent  [of  financial  services] SHALL ADOPT 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 obligations issued by the Inter-American Development
Bank,  or  obligations  of  the  Asian  Development Bank, or obligations
issued by the African Development Bank, or  obligations  issued  by  the
International Finance Corporation, 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  Corpo-
ration  (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 super-
intendent [of financial services] 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 superintendent 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

S. 6738--A                         12

as  [he  or  she] THE SUPERINTENDENT shall prescribe; provided, however,
that the superintendent may determine, in [his or her]  THE  SUPERINTEN-
DENT'S discretion, that any such bonds, notes, debentures or other obli-
gations  of a particular issuer are not acceptable for purposes of meet-
ing the requirements of this subdivision.  The superintendent  may  from
time to time require that the assets deposited pursuant to this subdivi-
sion  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  superintendent  [of  financial
services]  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 agency, agencies, branch or  branches,  including  acceptances  and
such  other liabilities (including contingent liabilities) as the super-
intendent shall determine, but excluding amounts due and  other  liabil-
ities to other offices, agencies or branches of, and affiliates of, such
foreign  banking  corporation.  As used in this subdivision, (i) "affil-
iate" 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 indirect-
ly,  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 subdivision, the term "person" shall mean a corporation, unincorpo-
rated association, partnership, or any other entity or  individual.  For
the  purposes  of this subdivision [two], the superintendent shall value
marketable 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

S. 6738--A                         13

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]  THE SUPERINTENDENT may, subject to
such terms and conditions as  [he]  THE  SUPERINTENDENT  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  23.  Subdivisions  1, 2 and 3 of section 209 of the banking law, as
amended by chapter 217 of the laws of 2010 and  as  further  amended  by
section  104 of part A of chapter 62 of the laws of 2011, 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, federal savings bank or federal savings association, the
principal office of which institution is located  in  this  state,  bank
holding  company  or  another  foreign banking corporation maintaining a
branch in this state, unless permission therefor has been granted by the
superintendent [of financial services] pursuant  to  the  provisions  of
subdivision three of this section, except that an executive officer of a
foreign  banking corporation maintaining 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 subsidiary, and of one or more of  the  banking
institutions which are subsidiaries of such bank holding company.
  2.  No  executive  officer of a national bank, federal savings bank or
federal savings association, the principal office of  which  institution
is located in this state, may be an executive officer, director or trus-
tee  of  a bank or trust company, savings bank, savings and loan associ-
ation, bank holding company or foreign banking corporation maintaining a
branch in this state, unless permission therefor has been granted by the
superintendent [of financial services] 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.
  3. The superintendent [of financial services] 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, federal savings bank or federal
savings association, the principal office of which is  located  in  this
state, 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 superintendent [of financial services] such  service  by
the executive officer will be consistent with the policy of the state of

S. 6738--A                         14

New  York as declared in section ten of this chapter. The superintendent
[of financial services] shall have the power to revoke  such  permission
[by  a  like vote] whenever [it] THE SUPERINTENDENT finds, after reason-
able  notice  and  an  opportunity to be heard, that the public interest
requires such revocation.
  S 24. Paragraph (ee) of subdivision 26 of section 235 of  the  banking
law,  as added by chapter 231 of the laws of 1964 and as further amended
by section 104 of part A of chapter 62 of the laws of 2011,  is  amended
to read as follows:
  (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 superinten-
dent  [of  financial  services  upon  a  three-fifths  vote  of  all its
members].
  S 25. Subdivision 2 of section 242 of the banking law, as  amended  by
chapter 664 of the laws of 1958 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is 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 superintendent [of financial services]  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 regu-
lations.
  S 26. Paragraphs (a) and (b) of subdivision 5 of section  247  of  the
banking  law,  as  amended  by  chapter  217  of the laws of 2010 and as
further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, 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, federal savings
bank or federal savings  association,  the  principal  office  of  which
institution  is  located  in this state, bank holding company or foreign
banking corporation maintaining a branch in this state,  unless  permis-
sion  therefor  has  been  granted  by  the superintendent [of financial
services] pursuant to the provisions of paragraph (b) of  this  subdivi-
sion.
  (b) The superintendent [of financial services] 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,  federal  savings  bank  or

S. 6738--A                         15

federal  savings  association, the principal office of which institution
is located in this state, bank holding company or foreign banking corpo-
ration maintaining a branch in this state. Such permission may be grant-
ed only if in the judgment of the superintendent [of financial services]
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
superintendent  [of  financial  services] shall have the power to revoke
such permission [by a like vote] whenever [it] THE SUPERINTENDENT finds,
after reasonable notice and an opportunity to be heard, that the  public
interest requires such revocation.
  S  27.  Subdivision  6  of section 251 of the banking law, as added by
chapter 849 of the laws of 1964 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  6. Any officer elected or appointed by the board may be removed by the
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  superintendent  of
financial services] under section forty-one of this chapter.
  S  28.  The  opening  paragraph  and paragraph (d) of subdivision 2 of
section 293 of the banking law, the opening paragraph as added by  chap-
ter  762 of the laws of 1989, paragraph (d) as amended by chapter 291 of
the laws of 2001 and such paragraphs as further amended by  section  104
of  part  A  of  chapter  62 of the laws of 2011, are amended to read as
follows:
  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] OF the super-
intendent [of financial services], a mutual holding company may:
  (d) engage  in  any  other  acquisition  or  combination  specifically
permitted  by  [general]  regulations [promulgated by or specific resol-
ution] of the superintendent [of financial services]; provided, however,
that any such regulation [promulgated by, or specific resolution, of the
superintendent of financial services] 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, respec-
tively, to the extent  such  authorized  activities  are  not  otherwise
limited or prohibited by this chapter.
  S  29.  Subdivision  2  and  the opening paragraph of subdivision 4 of
section 384 of the banking law, subdivision 2 as amended by chapter  247
of  the  laws of 1959, the opening paragraph of subdivision 4 as amended
by chapter 360 of the laws of 1984  and  such  subdivision  and  opening
paragraph  as  further amended by section 104 of part A of chapter 62 of
the laws of 2011, 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

S. 6738--A                         16

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 superintendent [of financial  services]  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 regu-
lations.
  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 superintendent [of financial services].
  S 30. Subdivision 7 of section 397 of the banking  law,  as  added  by
chapter 849 of the laws of 1964 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  7. Any officer elected or appointed by the board may be removed by the
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 superintendent of
financial services] under section forty-one of this chapter.
  S 31. Paragraph (b) of subdivision 5 of section  399  of  the  banking
law,  as  amended  by  chapter  217  of  the laws of 2010 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  is
amended to read as follows:
  (b) The superintendent [of financial services] 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, federal
savings bank or federal savings association,  the  principal  office  of
which  is 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 superintendent [of financial
services] 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 superintendent [of financial services] shall have the power
to revoke such permission [by a like vote] whenever [it] THE SUPERINTEN-
DENT finds, after reasonable notice and an opportunity to be heard, that
the public interest requires such revocation.
  S 32. Subdivisions 1 and 2 of section 399-a of  the  banking  law,  as
amended  by  chapter  217  of the laws of 2010 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, are amended  to
read as follows:
  1.  No  executive officer of a federal savings bank or federal savings
association the principal office of which institution is 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

S. 6738--A                         17

state, unless permission therefor has been granted by the superintendent
[of  financial  services]  pursuant  to subdivision two of this section,
provided, however, that an executive officer of a  federal  savings  and
loan  association  located  in  this state, who on the effective date of
this section 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 superintendent [of financial services], 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.
  2. The superintendent [of financial services] 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 bank or
federal savings association located in this state, to  be  at  the  same
time  an  executive  officer,  director or trustee, or both an executive
officer and a director 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 superintendent [of finan-
cial services] 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 superintendent [of financial services] shall have  the
power  to  revoke  such  permission  [by  a like vote] whenever [it] THE
SUPERINTENDENT finds, after reasonable notice and an opportunity  to  be
heard, that the public interest requires such revocation.
  S  33. Section 412 of the banking law, as amended by section 9 of part
D-1 of chapter 109 of the laws of 2006 and as further amended by section
104 of part A of chapter 62 of the laws of 2011, is amended to  read  as
follows:
  S  412.  Conversion  of federal savings institutions to state charter.
The superintendent [of financial services] 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 34. The opening paragraph of subdivision 6 of  section  508  of  the
banking  law,  as  amended  by  chapter  360  of the laws of 1984 and as
further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, is amended to read as follows:
  To exercise, subject to such regulations as may be issued from time to
time  by  the superintendent [of financial services], 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 superintendent of financial services] 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

S. 6738--A                         18

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.
  S  35.  The  opening  paragraph  of section 550 of the banking law, as
amended by chapter 833 of the laws of 1969 and  as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  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 financial services]  at
[his]  THE SUPERINTENDENT'S office an organization certificate in dupli-
cate which shall specifically state:
  S 36. Paragraphs (a) and (e) of subdivision 1, paragraphs (a), (b) and
(b-1) of subdivision 2, the opening and closing paragraphs  of  subdivi-
sion  3,  paragraphs (b), (c) and (d) of subdivision 5 and subdivision 6
of section 590 of the banking law, paragraph (a) of  subdivision  1  and
paragraphs  (b)  and (b-1) of subdivision 2 as amended by chapter 507 of
the laws of 2009, paragraph (e) of subdivision 1 as added by chapter 571
of the laws of 1986, paragraph (a) of subdivision  2,  the  opening  and
closing  paragraphs  of subdivision 3 and paragraphs (b), (c) and (d) of
subdivision 5 as amended by chapter 472 of the laws of 2008, subdivision
6 as amended by chapter 293 of the laws of 1987 and such  provisions  as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, are amended to read as follows:
  (a) "Mortgage loan" shall mean a loan to a natural person made  prima-
rily for personal, family or household use, secured by either a mortgage
or  deed of trust on residential real property, any certificate of stock
or other evidence of ownership in, and proprietary lease from, a  corpo-
ration or partnership formed for the purpose of cooperative ownership of
residential  real  property  or, if determined by the superintendent [of
financial services] by regulation, shall include such a loan secured  by
a security interest on a manufactured home;
  (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  superintendent  [of  financial
services], "exempt organization" may also include any subsidiary of such
entities;
  (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 superintendent
[of financial services or prescribed by the superintendent]. The licens-
ing  provisions of this subdivision shall not apply to any exempt organ-
ization nor to any entity or entities which shall be exempted in accord-
ance with regulations promulgated by the  superintendent  [of  financial
services] hereunder.
  (b)  No  person, partnership, association, corporation or other entity
shall engage in the business of soliciting, processing, placing or nego-

S. 6738--A                         19

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  superintendent  [of  financial   services   or
prescribed  by  the superintendent]. The registration provisions of this
subdivision shall not apply to any exempt organization, mortgage  banker
or mortgage loan servicer. 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 superintendent [of financial services] 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] THE  SUPERINTEN-
DENT may refuse to issue a registration certificate to a mortgage broker
pursuant to subdivision 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  regu-
lations  prescribed  by the superintendent hereunder; provided that such
exempt organization,  mortgage  banker,  mortgage  broker,  or  exempted
person  notifies 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 superintendent [of financial
services  or  prescribed  by the superintendent with respect to mortgage
loan servicers]. The superintendent may require  all  registrations  and
notifications  to  be  made  through  the  Nationwide Mortgage Licensing
System and Registry. An application to become a registered mortgage loan
servicer or any application with respect to  a  mortgage  loan  servicer
shall  be  accompanied  by a fee as prescribed pursuant to section eigh-
teen-a of this chapter. Any fee established pursuant to this subdivision
may be collected by and include a processing fee charged by the  Nation-
wide  Mortgage  Licensing  System and Registry. Any such processing fees
shall not be remitted to the superintendent  and  shall  not  be  deemed
revenue pursuant to this chapter or the state finance law.
  In  addition  to  such  powers  as may otherwise be prescribed by this
chapter, the superintendent [of financial services] is hereby authorized
and empowered to promulgate such rules and regulations  as  may  in  the
judgement  of  the  superintendent [of financial services] be consistent
with the purposes of this article,  or  appropriate  for  the  effective
administration of this article, including, but not limited to:
  The  superintendent  [of  financial services] is hereby authorized and
empowered to make such specific rulings, demands and  findings  as  [it]
THE  SUPERINTENDENT  may  deem  necessary  for the proper conduct of the
mortgage lending industry.

S. 6738--A                         20

  (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 superintendent  [of  finan-
cial  services  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 superintendent [of financial
services or prescribed by the superintendent] thereunder and all  appli-
cable 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 superintendent [of
financial services or prescribed by the superintendent]  thereunder  and
all  applicable  federal  laws and the rules and regulations promulgated
thereunder.
  6. The superintendent [of financial services] 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 37. Subdivisions 1 and 2 of section 595-b of  the  banking  law,  as
added  by  chapter  472  of  the  laws of 2008 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  1.  Establishment  of grounds to impose a fine or penalty. In addition
to such other rules, regulations and policies as the superintendent  [of
financial services] may promulgate [or the superintendent may prescribe]
to  effectuate  the  purposes  of this article, the superintendent shall
promulgate regulations  and  policies  governing  the  establishment  of
grounds  to impose a fine or penalty with respect to the activities of a
mortgage loan servicer.
  2. Servicing practices. In addition to such other  rules,  regulations
and  policies  as the superintendent [of financial services] may promul-
gate 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  38.  Paragraph (g) of subdivision 1 of section 599-e of the banking
law, as added by chapter 123 of the laws of 2009 and as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  (g) Affiliation. Unless  the  superintendent  shall  have  waived  the
affiliation  requirement  pursuant  to regulations adopted by the super-
intendent [of financial services], that the applicant is employed by, or
is an independent contractor of (i) an originating entity,  (ii)  solely
in  the case of a mortgage loan originator engaged in the origination of
residential mortgage loans on manufactured  homes,  an  entity  licensed
under  article nine or eleven-B of this chapter, or (iii) in the case of
a mortgage loan  originator  engaged  in  mortgage  loan  servicing  and
employed by a mortgage loan servicer, an entity registered as a mortgage
loan  servicer  under  article  twelve-D  of this chapter or exempt from

S. 6738--A                         21

registration under such article. A mortgage loan originator may  not  be
simultaneously  employed  or  affiliated  with more than one originating
entity.
  S  39.  Paragraph  (a)  of  subdivision 1 and subdivision 2 of section
599-n of the banking law, as added by chapter 123 of the  laws  of  2009
and  as  further  amended  by section 104 of part A of chapter 62 of the
laws of 2011, is amended to read as follows:
  (a) Through a  course  of  conduct,  the  licensee  has  violated  any
provisions of this article, or any rule or regulation promulgated by the
superintendent  [of financial services] THEREUNDER, or any rule or regu-
lation [prescribed] PROMULGATED by the superintendent under [and  within
the authority of this article or] article twelve-D of this chapter or of
any other applicable law, rule or regulation of this state or the feder-
al  government  pertaining to mortgage banking, brokering or loan origi-
nating; or
  2. Restitution. The superintendent may order a mortgage loan  origina-
tor  or any other person to pay restitution for violations of this arti-
cle or any rules of the superintendent [of  financial  services  or  the
superintendent] promulgated hereunder.
  S  40.  Subdivisions  4  and  8  of section 605 of the banking law, as
amended by chapter 567 of the laws of 2000 and  as  further  amended  by
section  104 of part A of chapter 62 of the laws of 2011, are amended to
read as follows:
  4. Within three months after the date of any such meeting, application
may be made to the supreme court, after due notice  to  the  superinten-
dent, for an order declaring the business of such corporation closed. In
a proper case, the court shall make such order which shall prescribe the
notice  to  be given to creditors and depositors to present their claims
to the corporation for payment. In the closing order,  the  court  shall
set  a date certain by which claims must be presented to the corporation
for payment. The corporation need  not  consider  any  claims  submitted
after  that  date.  Within  five  days after the making of such order, a
certified copy thereof shall be filed in the office of  the  superinten-
dent.  Upon  the  entry of such order such corporation shall cease to do
business and shall wind up its affairs, pay  its  creditors  and  depos-
itors,  if  any,  and,  except  in  the  case  of a mutual savings bank,
distribute any remaining assets among its shareholders  or  stockholders
according  to  their respective rights and interests. The corporation or
any creditor or depositor thereof, upon due notice,  may  apply  to  the
court  that  issued  the  closing  order  for  a determination as to any
disputed claim or for any  other  relief  necessary  to  effectuate  the
liquidation  and  dissolution of the corporation. Any petition, applica-
tion, or motion to vacate, set aside, modify or amend such order  so  as
to  permit  the  corporation  to resume business shall have incorporated
therein a certificate of the superintendent certifying that after inves-
tigation the superintendent has found[, and the superintendent of finan-
cial services by a three-fifths vote of all its members has found,] that
the public convenience and advantage will be promoted by the granting of
said petition, application or motion.
  8. Unless the superintendent [of financial services 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

S. 6738--A                         22

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-
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] THE SUPERINTENDENT'S discretion, to take
possession  of the business and property of such corporation and proceed
with the liquidation thereof under the provisions of this article.
  S 41. Paragraph (f) of subdivision 2 of section 2001  of  the  banking
law,  as  amended  by  chapter  566  of  the laws of 2004 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  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 superintendent [of financial services or of the superintendent].
  S  42. The opening paragraph of subdivision 1 of section 4001-a of the
banking law, as added by chapter 637 of the laws of 1995 and as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  Notwithstanding the provisions of section four thousand  one  of  this
[article]  TITLE  and  when  authorized  by  the superintendent [and the
superintendent of financial services] 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
organization in duplicate which shall specifically state:
  S  43. The opening paragraph of subdivision 1 of section 4001-b of the
banking law, as added by chapter 248 of the laws of 1997 and as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  Notwithstanding the provisions of section four thousand  one  of  this
[article]  TITLE  and  when  authorized  by  the superintendent [and the
superintendent of financial services] 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:
  S  44.  Subdivision  4 of section 7006 of the banking law, as added by
chapter 849 of the laws of 1964 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  4. This section does not affect the powers of the  superintendent  [or
the  superintendent  of  financial  services] under section forty-one of
this chapter.
  S 45. Subdivision 2 of section 7014 of the banking law,  as  added  by
chapter 849 of the laws of 1964 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  2.  This  section does not affect the powers of the superintendent [or
the superintendent of financial services]  under  section  forty-one  of
this chapter.

S. 6738--A                         23

  S  46. 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  and  as  further amended by section 104 of part A of chapter 62 of
the laws of 2011, 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 financial services [or  the
superintendent  of  financial  services, as appropriate,] is attached to
the certificate of incorporation, or application for authority or amend-
ment thereof; or that the word "doctor" or "lawyer" or  an  abbreviation
or  derivation thereof is used in the name of a university faculty prac-
tice corporation formed pursuant to section fourteen hundred  twelve  of
the not-for-profit corporation law or a professional service corporation
formed pursuant to article fifteen of this chapter, or a foreign profes-
sional  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  47. The opening paragraph of section 7701 of the civil practice law
and rules, as amended by chapter 193 of the laws of 1976 and as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  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 property 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  finan-
cial  services [or the superintendent of financial services] has been or
may hereafter be appointed rehabilitator or liquidator or conservator, a
trust to 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.
  S 48. Subdivision 4 of section 695-b of the education law, as added by
chapter 546 of the laws of 1997 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  4.  "Financial  organization" shall mean an organization authorized to
do business in the state of New York and  (a)  which  is  an  authorized
fiduciary  to  act  as a trustee pursuant to the provisions of an act of
congress entitled "Employee Retirement Income Security Act of  1974"  as
such provisions may be amended from time to time, or an insurance compa-
ny;  and  (b)(i) is licensed or chartered by the department of financial
services, (ii) [is licensed or chartered by the department of  financial
services,  (iii)]  is  chartered by an agency of the federal government,
[(iv)] (III) is subject to the jurisdiction and regulation of the  secu-

S. 6738--A                         24

rities  and exchange commission of the federal government, or [(v)] (IV)
is any other entity otherwise authorized to act in this state as a trus-
tee pursuant to the provisions of an act of congress entitled  "Employee
Retirement  Income  Security  Act  of  1974"  as  such provisions may be
amended from time to time.
  S 49. Subdivision 3 of section 63 of the executive law, as amended  by
chapter 766 of the laws of 2005 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  3.  Upon  request  of  the  governor, comptroller, secretary of state,
commissioner of transportation, superintendent  of  financial  services,
[superintendent  of  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 50. Subdivision 1 of section 161 of the executive law, as separately
amended  by  chapters  430  and  636  of the laws of 1969 and as further
amended by section 104 of part A of chapter 62 of the laws of  2011,  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  financial  services,
[the  superintendent  of  financial services,] 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 OR SHE
deems it necessary for the discharge of his OR HER official duties,  and
a  copy thereof, or extracts therefrom, to be made and officially certi-
fied or exemplified, without the payment of any fee or charge.
  S 51. Subdivision 25 of section 292 of the executive law, as added  by
chapter  173  of  the  laws of 1974, as renumbered by chapter 632 of the
laws of 1976 and as further amended by section 104 of part A of  chapter
62 of the laws of 2011, is amended to read as follows:
  25.  The  term  "superintendent", when used in this article, means the
head of the department  of  financial  services  appointed  pursuant  to
section  [twelve]  TWO  HUNDRED  TWO of the [banking] FINANCIAL SERVICES
law.
  S 52. Subdivision 9 of section 296-a of the executive law, as added by
chapter 173 of the laws of 1974 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  9. Whenever any creditor makes application to the  superintendent  [or
the  superintendent]  of financial services to take any action requiring
consideration by the superintendent [or such board] of the public inter-
est 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-partnership or association, and of the officers and directors thereof

S. 6738--A                         25

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 oper-
ated 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 department of financial 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  appli-
cations  and  making  the foregoing findings, give appropriate weight to
compliance with this section.
  S 53. Subdivision 9 of section 835 of the executive law, as amended by
section 102 of subpart B of part C of chapter 62 of the laws of 2011 and
as further amended by section 104 of part A of chapter 62 of the laws of
2011, 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
corrections  and  community supervision, the department of correction of
any municipality, the [insurance] FINANCIAL frauds [bureau] AND CONSUMER
PROTECTION UNIT of the  state  department  of  financial  services,  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 twenty-four of the social services law, the office of Medi-
caid inspector general, the temporary state commission of investigation,
[the  criminal  investigations  bureau  of  the  department of financial
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  54.  Subdivision 15 of section 215 of the general municipal law, as
added by chapter 714 of the laws of 2006 and paragraphs (ii)  and  (iii)
as further amended by section 104 of part A of chapter 62 of the laws of
2011, is amended to read as follows:
  15.  "Financial organization" means an organization duly authorized to
do business in the state and which is (i) registered  as  an  investment
adviser  under  the  Investment Advisers Act of 1940, as such provisions
may be amended from time to time; (ii)  licensed  or  chartered  by  the
state  department of financial services; (iii) [licensed or chartered by
the state department of financial services; (iv)] chartered by an agency
of the federal government; or [(v)] (IV) subject to the jurisdiction and
regulation of the securities and  exchange  commission  of  the  federal
government.
  S 55. Subdivision 14 of section 219-c of the general municipal law, as
amended by chapter 514 of the laws of 1998 and paragraphs (ii) and (iii)
as further amended by section 104 of part A of chapter 62 of the laws of
2011, is amended to read as follows:
  14.  "Financial organization" means an organization duly authorized to
do business in the state and which is (i) registered  as  an  investment
adviser  under  the  Investment Advisers Act of 1940, as such provisions
may be amended from time to time; (ii)  licensed  or  chartered  by  the
state  department of financial services; (iii) [licensed or chartered by
the state department of financial services; (iv)] chartered by an agency
of the federal government; or [(v)] (IV) subject to the jurisdiction and

S. 6738--A                         26

regulation of the securities and  exchange  commission  of  the  federal
government.
  S 56. Subdivision 19 of section 219-k of the general municipal law, as
added  by  chapter  558  of  the  laws of 1998 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  19.  "Financial organization" means an organization duly authorized to
do business in the state which is (a) registered as an investment advis-
er under the Investment Advisers Act of 1940, as such provisions may  be
amended  from  time  to  time;  (b)  licensed  or chartered by the state
department of financial services; (c)  [licensed  or  chartered  by  the
state  department  of financial services; (d)] chartered by an agency of
the federal government; or [(e)] (D) subject  to  the  jurisdiction  and
regulation  of  the  securities  and  exchange commission of the federal
government.
  S 57. Subsection (d) and paragraphs 3  and  4  of  subsection  (e)  of
section  1118  of the insurance law, as added by chapter 703 of the laws
of 1988 and as further amended by section 104 of part A of chapter 62 of
the laws of 2011, are amended to read as follows:
  (d) Notwithstanding any provisions of [the insurance law] THIS CHAPTER
OR THE FINANCIAL SERVICES LAW to the contrary,  the  superintendent  may
waive, modify or suspend any provision of [the insurance law] THIS CHAP-
TER,  THE  FINANCIAL  SERVICES LAW or [department of financial services]
regulations PROMULGATED THEREUNDER as  applicable  to  the  insurers  or
health maintenance organizations [which] THAT conduct the regional pilot
projects, except as to mandatory benefits, provided such waiver, modifi-
cation  or  suspension  is based on the criteria set forth in subsection
(e) of this section.
  (3) any waiver, modification  or  suspension  of  provisions  of  [the
insurance  law]  THIS CHAPTER, THE FINANCIAL SERVICES LAW or [department
of financial services] regulations PROMULGATED THEREUNDER  is  essential
to  the  operation  of  the  regional  pilot project and to the rational
development of programs to provide health care  coverage  or  equivalent
coverage mechanisms to the uninsured; and
  (4)  any  waiver,  modification  or  suspension  of provisions of [the
insurance law] THIS CHAPTER, THE FINANCIAL SERVICES LAW  or  [department
of  financial  services]  regulations  PROMULGATED  THEREUNDER  will not
impair the ability of the insurer or health maintenance organization  to
satisfy  its  existing  and anticipated contracts and other obligations,
including such standards as the superintendent shall prescribe  concern-
ing adequate capital and financial requirements.
  S 58. Subsections (d) and (e) of section 1120 of the insurance law, as
added  by chapter 922 of the laws of 1990, paragraph 3 of subsection (e)
as amended by chapter 2 of the laws of 1998 and subsection (d) and para-
graph 4 of subsection (e) as further amended by section 104 of part A of
chapter 62 of the laws of 2011, are amended to read as follows:
  (d) Notwithstanding any provisions of [the insurance law] THIS CHAPTER
OR THE FINANCIAL SERVICES LAW to the contrary,  the  superintendent  may
waive,  modify  or  suspend  any  provisions of [the insurance law] THIS
CHAPTER,  THE  FINANCIAL  SERVICES  LAW  or  [department  of   financial
services] regulations PROMULGATED THEREUNDER as applicable to the insur-
ers,  article  forty-three  corporations or health maintenance organiza-
tions [which] THAT issue coverage pursuant  to  this  section,  provided
such  waiver,  modification  or  suspension is based on the criteria set
forth in subsection (e) of this section.

S. 6738--A                         27

  (e) The superintendent may take the actions set forth  in  subsections
(a)  and (d) of this section upon the superintendent's [judgement] JUDG-
MENT that:
  (1)  the  contract  or  arrangement  is  a  reasonable and appropriate
approach to expand the availability of health care coverage to children;
  (2) the sources of funding for the contract or arrangement are reason-
ably related to the benefits provided  and  sufficient  to  support  the
contract arrangement;
  (3)  any  waiver, modification or suspension of the provisions of [the
insurance law] THIS CHAPTER, THE FINANCIAL SERVICES LAW  or  [insurance]
regulations  PROMULGATED THEREUNDER is essential to the operation of the
child health insurance plan and to the rational development of  programs
to provide covered services to children; and
  (4)  any  waiver,  modification  or  suspension  of provisions of [the
insurance law] THIS CHAPTER, THE FINANCIAL SERVICES LAW  or  [department
of  financial  services]  regulations  PROMULGATED  THEREUNDER  will not
impair the ability of the insurer, article  forty-three  corporation  or
health  maintenance organization to satisfy its existing and anticipated
contracts and other obligations, including such standards as the  super-
intendent  shall  prescribe  concerning  adequate  capital and financial
requirements.
  S 59. Paragraph 3 of subsection (e) of section 1120 of  the  insurance
law,  as  amended by chapter 639 of the laws of 1996, is amended to read
as follows:
  (3) any waiver, modification  or  suspension  of  provisions  of  [the
insurance  law]  THIS CHAPTER, THE FINANCIAL SERVICES LAW or [insurance]
regulations PROMULGATED THEREUNDER is essential to the operation of  the
child  health insurance plan and to the rational development of programs
to provide primary and preventive health  care  coverage  and  inpatient
health care services coverage to children; and
  S 60. 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] SUPERVISOR of banks of any state  or
[is  a  member  of  the  federal  reserve system] THE COMPTROLLER OF THE
CURRENCY.
  (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] SUPERVISOR  of  banks  of
any state or [is a member of the federal reserve system] THE COMPTROLLER
OF  THE CURRENCY; nor shall such term include any insurer licensed under
the laws of this state or authorized to do business herein.

S. 6738--A                         28

  S 61. Subsection (b) of section 4403 of the insurance law, as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  (b)  If  it  is  found  that  the  conditions  [which] THAT originally
required registration with the superintendent have ceased to  exist  and
that  new  conditions exist [which] THAT would not require the registra-
tion of an employee welfare fund with [either]  the  superintendent  [of
financial  services  or  the superintendent of financial services], then
the superintendent [of financial services] may, on  application  of  the
trustees  or on [his] THE SUPERINTENDENT'S own motion, cancel the regis-
tration of such fund.
  S 62. Subparagraph (C) of paragraph 2 of  subsection  (h)  of  section
9111-b  of  the  insurance  law,  as added by chapter 148 of the laws of
1998, is amended to read as follows:
  (C) that an undertaking is filed with the  superintendent  [of  insur-
ance]  in such amount and with such sureties as a justice of the supreme
court shall approve to the effect that if such proceeding  be  dismissed
or  the  tax  confirmed,  the  petitioner will pay all costs and charges
[which] THAT may accrue in the prosecution of such proceeding.
  S 63. Subdivision (f) of section 204 of the limited liability  company
law,  as  further  amended by section 104 of part A of chapter 62 of the
laws of 2011, 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 financial services [or the
superintendent of financial services, 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  64. 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 and as further amended by section 104 of part A of chapter 62 of
the laws of 2011, is amended to read as follows:
  (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

S. 6738--A                         29

bond                   insurance              trust

casualty               investment             underwriter

doctor                 lawyer

endowment              loan

unless  the approval of the superintendent of financial services [or the
superintendent of financial services, as appropriate,]  is  attached  to
the certificate of incorporation, or application for authority or amend-
ment  thereof; or that the word "doctor", "lawyer", or the phrase "state
police" or "state trooper" or an abbreviation or derivation thereof, 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  65.  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  and  as  further amended by section 104 of part A of chapter 62 of
the laws of 2011, 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 financial services [or  the
superintendent  of  financial  services, 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  medi-
cine.
  S  66.  Subdivision  4 of section 303 of the personal property law, as
added by chapter 641 of the laws of  1984  and  as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, 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 contract and
charge, receive and collect a credit service charge  calculated  on  the
unpaid  balances  of  an amount computed as provided in the second para-
graph 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  regular  intervals  as
set forth in the contract and in accordance with such regulations as the
superintendent of financial services shall prescribe but said rate shall
not  vary  more  often  than once in any three month period and shall be

S. 6738--A                         30

based on a published index that is (a) readily available, (b)  independ-
ently  verifiable,  (c)  beyond the control of the retail seller and (d)
approved by the superintendent.
  The  superintendent  [of  financial  services] 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) provid-
ing for disclosure to the buyer by the  retail  seller  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 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 67. Paragraph (a) of subdivision 1 of  section  15  of  the  private
housing  finance  law, as amended by chapter 990 of the laws of 1972 and
as further amended by section 104 of part A of chapter 62 of the laws of
2011, is 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  superintendent  of  financial  services  of the state department of

S. 6738--A                         31

financial services,] and as to insurance companies only  to  the  extent
and  upon  such conditions as may be authorized by the state superinten-
dent of financial services.   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.
  S  68. Subdivision 1 of section 30 of the private housing finance law,
as further amended by section 104 of part A of chapter 62 of the laws of
2011, 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 financial services [or the superintendent of financial
services]  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 69. Subdivision 2 of section 94 of the private housing finance  law,
as  amended  by chapter 23 of the laws of 1976 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, 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 department of financial
services  [or  the  state  department of 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,
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 OR HER

S. 6738--A                         32

  S 70. Subdivision 2 of section 122 of the private housing finance law,
as amended by chapter 804 of the laws of 1981 and as further amended  by
section  104  of part A of chapter 62 of the laws of 2011, 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 financial services [or  the  superinten-
dent  of  financial  services], 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 71. Subdivision 1 of section 307 of the private housing finance law,
as further amended by section 104 of part A of chapter 62 of the laws of
2011, 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
of  banking  organizations[,  the superintendent of financial services,]
and in the case of insurance and surety companies[,] the  superintendent
of  financial  services[,]  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

S. 6738--A                         33

are  committed  to  lend  to  such corporation shall be prorated by such
corporation 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 obli-
gations of such corporation, issued in accordance with and by virtue  of
this article and the by-laws of such corporation, shall be legal invest-
ments  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  72.  Section  311 of the private housing finance law, as amended by
chapter 891 of the laws of 1971 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, 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 financial
services [or the superintendent of financial services] for  the  purpose
of  determining  the  corporation's  net  worth and the soundness of its
management and operating policies. [The examination is to be made by the
superintendant of financial services in alternate years commencing  with
the  examination  for  the  year  ending  October thirty-first, nineteen
hundred seventy-one, and by the superintendent of financial services  in
alternate  years  commencing  with  the  examination for the year ending
October thirty-first, nineteen  hundred  seventy-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 findings, conclusions and  recom-
mendations 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[,  super-
intendent   of  financial  services]  and  superintendent  of  financial
services on or before January first of each year.
  S 73. Subdivision 2 of section 407 of the private housing finance law,
as added by chapter 499 of the laws of 1970 and as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  2. Banking institutions AND  INSURANCE  COMPANIES  may  exercise  such
power  on  such  conditions  as  may  be prescribed OR AUTHORIZED by the
superintendent of financial services [of the state department of  finan-
cial  services  and  insurance companies may exercise such power only to
the extent and on such conditions as may  be  authorized  by  the  state
superintendent of financial services].
  S  74.  Section  454  of  the private housing finance law, as added by
chapter 862 of the laws of 1973 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  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

S. 6738--A                         34

superintendent  of financial services [of the state department of finan-
cial services], for which services a bank  may  make  and  collect  such
service  charges  as  the  superintendent  [of financial services] shall
prescribe or approve.
  S 75. Subdivision 1 of section 474 of the private housing finance law,
as  added  by  chapter 786 of the laws of 1987 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, 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 superintendent of financial services [of the state department of
financial services] for which services a bank may make and collect  such
service  charges  as  the  superintendent  [of financial services] shall
prescribe or approve.
  S 76. Subdivision 7 of section 802 of the private housing finance law,
as added by chapter 822 of the laws of 1976 and as  further  amended  by
section  104  of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  7. Banking organizations [may exercise such power on  such  conditions
as  may be prescribed by the superintendent of financial services of the
state department of financial services,]  and  insurance  companies  may
exercise  such power only to the extent and on such conditions as may be
authorized by the state superintendent of financial services.
  S 77. Subdivision 1 of section 1835-b of the public  authorities  law,
as  amended by chapter 118 of the laws of 1990 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  1.  To  prescribe  standards and criteria for the granting of applica-
tions for loans to lenders and for the making of loans for  agricultural
business  projects,  which  standards  and  criteria shall implement the
intent and purposes of this subtitle. In developing such  standards  and
criteria  the  authority shall consult with the superintendent of finan-
cial services [and superintendent of financial services]  regarding  the
qualifications  of  lenders and with the commissioner of agriculture and
markets and the commissioner of economic development regarding the stan-
dards and criteria for the making of loans for business projects.
  S 78. Subdivision 3 of section 4602 of the public health law, as added
by chapter 401 of the laws of 2003 and as further amended by section 104
of part A of chapter 62 of the laws of  2011,  is  amended  to  read  as
follows:
  3.  The council shall establish guidelines under which the commission-
er[, with the advice and consent  of  the  superintendent  of  financial
services,]  is authorized to approve or reject any proposed refinancing,
if the council has already approved an application pursuant to paragraph
a of subdivision two of this section.
  S 79. Paragraph (e) of subdivision 1 of section 73 of the public offi-
cers law, as amended by chapter 813 of the laws of 1987 and  as  further
amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  (e) The term "regulatory agency" shall mean the department  of  finan-
cial services, [department of financial services,] state liquor authori-
ty,  department  of  agriculture  and  markets, department of education,
department of environmental conservation, department of health, division
of housing and community renewal, department of state,  other  than  the

S. 6738--A                         35

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.
  S 80. Paragraph (a) of subdivision 3 and paragraph (a) of  subdivision
3-a of section 265-b of the real property law, paragraph (a) of subdivi-
sion  3  as  added  by chapter 472 of the laws of 2008, paragraph (a) of
subdivision 3-a as added by chapter 553 of the laws  of  2010  and  such
subdivisions  as  further amended by section 104 of part A of chapter 62
of the laws of 2011, are amended, and a new subdivision 5  is  added  to
read as follows:
  (a) A distressed property consulting contract shall:
  (i) contain the entire agreement of the parties;
  (ii)  be  provided in writing to the homeowner for review before sign-
ing;
  (iii) be printed in at least twelve point type and written in the same
language that is used by the  homeowner  and  was  used  in  discussions
between  the  consultant  and the homeowner to describe the consultant's
services or to negotiate the contract;
  (iv) fully disclose  the  exact  nature  of  the  distressed  property
consulting services to be provided by the distressed property consultant
or  anyone  working in association with the distressed property consult-
ant;
  (v) fully disclose the total amount and terms of compensation for such
consulting services;
  (vi) contain the name, business address and telephone  number  of  the
consultant and the street address (if different) and facsimile number or
email address of the distressed property consultant where communications
from the homeowner may be delivered;
  (vii)  be  dated  and  personally  signed  by  the  homeowner  and the
distressed property consultant and be witnessed and  acknowledged  by  a
New York notary public; and
  (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 Department of Financial Services, [www.banking.state.ny.us] (ENTER
WEB ADDRESS) or by calling the Department of  Financial  Services  toll-
free  at  [1-877-BANK-NYS  (1-877-226-5697)]  (ENTER  NUMBER).  The  law
requires that this contract contain the entire agreement between you and
the Consultant. You should not rely  upon  any  other  written  or  oral
agreement or promise."

S. 6738--A                         36

The  distressed  property  consultant shall accurately enter the date on
which the right to cancel ends.
  (a)  All advertisements disseminated by a distressed property consult-
ant must prominently include  the  following  statement:  "In  New  York
State,  Housing  Counselors,  who are approved by the U.S. Department of
Housing & Urban Development or the New York State Department  of  Finan-
cial  Services, may provide the same or similar services as a distressed
property consultant for free. A list of approved Housing Counselors  can
be  found on the New York State Department of Financial Services website
at [www.banking.state.ny.us] (ENTER WEB ADDRESS) or  by  contacting  the
New   York   State   Department   of  Financial  Services  toll-free  at
[1-877-BANK-NYS (1-877-226-5697)] (ENTER NUMBER).  You  should  consider
consulting an attorney or a government-approved housing counselor before
signing any legal document concerning a distressed property consultant."
Such statement, if disseminated by print media or the internet, shall be
clearly  and  legibly printed or displayed in not less than twelve-point
bold type, or, if the advertisement is printed to be displayed in  print
that is smaller than twelve point, in bold type print that is no smaller
than  the  print  in  which  the text of the advertisement is printed or
displayed.
  5. THE DEPARTMENT OF FINANCIAL SERVICES SHALL PRESCRIBE THE  TELEPHONE
NUMBER AND WEB ADDRESS TO BE INCLUDED IN THE NOTICE.
  S  81. Paragraph (g) of subdivision 1 of section 280 of the real prop-
erty law is REPEALED, and paragraph (f) of subdivision 1,  as  added  by
chapter 613 of the laws of 1993 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  (f)  Superintendent  of  financial services. The superintendent estab-
lished pursuant to section [thirteen] TWO HUNDRED TWO of  the  [banking]
FINANCIAL SERVICES law.
  S  82.  Paragraph  (g)  of  subdivision 1 of section 280-a of the real
property law is REPEALED, and paragraph (f) of subdivision 1 as added by
chapter 613 of the laws of 1993 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  (f) Superintendent of financial services.  The  superintendent  estab-
lished  pursuant  to section [thirteen] TWO HUNDRED TWO of the [banking]
FINANCIAL SERVICES law.
  S 83. Subdivision 5 of section 1303 of the real property  actions  and
proceedings  law,  as  amended  by  chapter  358 of the laws of 2010, is
amended to read as follows:
  5. The notice required by paragraph (b) of  subdivision  one  of  this
section shall appear as follows:
              Notice to Tenants of Buildings in Foreclosure
  New  York State Law requires that we provide you this notice about the
foreclosure process. Please read it carefully.
  We, (name of foreclosing party), are the  foreclosing  party  and  are
located  at  (foreclosing  party's address). We can be reached at (fore-
closing party's telephone number).
  The dwelling where your apartment is located is the subject of a fore-
closure proceeding. If you have a lease, are not the owner of the  resi-
dence,  and  the  lease requires payment of rent that at the time it was
entered into was not substantially less than the fair  market  rent  for
the property, you may be entitled to remain in occupancy for the remain-
der of your lease term. If you do not have a lease, you will be entitled
to  remain in your home until ninety days after any person or entity who
acquires title to the property provides you with a notice as required by
section 1305 of the Real  Property  Actions  and  Proceedings  Law.  The

S. 6738--A                         37

notice  shall  provide information regarding the name and address of the
new owner and your rights to remain in your home. These  rights  are  in
addition to any others you may have if you are a subsidized tenant under
federal,  state  or  local  law  or  if you are a tenant subject to rent
control, rent stabilization or a federal statutory scheme.
  ALL RENT-STABILIZED TENANTS AND RENT-CONTROLLED TENANTS ARE  PROTECTED
UNDER  THE RENT REGULATIONS WITH RESPECT TO EVICTION AND LEASE RENEWALS.
THESE RIGHTS ARE UNAFFECTED BY A BUILDING ENTERING  FORECLOSURE  STATUS.
THE TENANTS IN RENT-STABILIZED AND RENT-CONTROLLED BUILDINGS CONTINUE TO
BE AFFORDED THE SAME LEVEL OF PROTECTION EVEN THOUGH THE BUILDING IS THE
SUBJECT  OF  FORECLOSURE.  EVICTIONS  CAN  ONLY  OCCUR IN NEW YORK STATE
PURSUANT TO A COURT ORDER AND AFTER A FULL HEARING IN COURT.
  If you need further information, please call the New York State [Bank-
ing Department's] DEPARTMENT OF FINANCIAL SERVICES'  toll-free  helpline
at [1-877-BANK-NYS (1-877-226-5697)] (ENTER NUMBER) or visit the Depart-
ment's website at [http://www.banking.state.ny.us] (ENTER WEB ADDRESS).
  S  84.  Subdivision 1 of section 1304 of the real property actions and
proceedings law, as amended by chapter 507 of the laws of  2009  and  as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, is amended and a new subdivision 6 is added to read as follows:
  1. Notwithstanding any other provision of law, with regard to  a  home
loan,  at  least  ninety days before a lender, an assignee or a mortgage
loan servicer commences legal action  against  the  borrower,  including
mortgage  foreclosure,  such  lender, assignee 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
Department of Financial Services' toll-free helpline at  [1-877-BANK-NYS
(1-877-226-5697)]  (SHOW  NUMBER)  or  visit the Department's website at
[http://www.banking.state.ny.us] (SHOW WEB ADDRESS)".
  6. THE DEPARTMENT OF FINANCIAL SERVICES SHALL PRESCRIBE THE  TELEPHONE
NUMBER AND WEB ADDRESS TO BE INCLUDED IN THE NOTICE.

S. 6738--A                         38

  S  85.  Subdivision 1 of section 1304 of the real property actions and
proceedings law, as added by chapter 472 of the  laws  of  2008  and  as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, is amended and a new subdivision 6 is added 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
Department  of Financial Services' toll-free helpline at [1-877-BANK-NYS
(1-877-226-5697)] (SHOW NUMBER) or visit  the  Department's  website  at
[http://www.banking.state.ny.us] (SHOW WEB ADDRESS)".
  6.  THE DEPARTMENT OF FINANCIAL SERVICES SHALL PRESCRIBE THE TELEPHONE
NUMBER AND WEB ADDRESS TO BE INCLUDED IN THE NOTICE.
  S 86. Subdivision 3 of section 953 of the real property  tax  law,  as
added  by  chapter  440  of  the  laws of 1989 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, 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
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 superintendent of financial services 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
deposits or share accounts from the general public.
  S  87.  Paragraph a of subdivision 8 of section 5 of the state finance
law, as amended by chapter 201 of  the  laws  of  1997  and  as  further

S. 6738--A                         39

amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  a.  The  term  "financial  organization"  shall  mean  an organization
authorized to do business in the state of New York and (A) which  is  an
authorized  fiduciary  to act as a trustee pursuant to the provisions of
an act of congress entitled "Employee Retirement Income Security Act  of
1974"  as such provisions may be amended from time to time, or an insur-
ance company; and (B) (i) is licensed or chartered by the state  depart-
ment  of financial services, (ii) [is licensed or chartered by the state
department of financial services, (iii)] is chartered by  an  agency  of
the  federal government, [(iv)] (III) is subject to the jurisdiction and
regulation of the securities and  exchange  commission  of  the  federal
government,  or  [(v)]  (IV) is any other entity otherwise authorized to
act in this state as a trustee pursuant to the provisions of an  act  of
congress  entitled  "Employee Retirement Income Security Act of 1974" as
such provisions may be amended from time to time.
  S 88. Section 14 of the state finance law, the  closing  paragraph  as
further  amended  by  section 104 of part A of chapter 62 of the laws of
2011, 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] THAT 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 super-
vision or control of such department or the head thereof  or  under  the
supervision  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
organization, which was derived from any source whether or not deposited
in  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]  THE
GOVERNOR  may desire, shall transmit to the legislature, with the annual
budget, a recapitulation 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
superintendent of financial services [or the superintendent of financial
services] 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  89.  Section  106 of the state finance law, the second undesignated
paragraph as amended by chapter 293 of the laws of 1992,  subdivision  B
and the closing paragraph as amended by chapter 583 of the laws of 1941,
subdivision C as added by chapter 551 of the laws of 2010, and the clos-

S. 6738--A                         40

ing  paragraph as further amended by section 104 of part A of chapter 62
of the laws of 2011, is amended to read as follows:
  S  106.  Deposit  of  moneys by state officers, state institutions and
charitable and benevolent institutions.  Such  moneys  received  by  the
commissioner  of taxation and finance as are now deposited to the credit
of the comptroller pursuant to statute, and  thereafter  paid  into  the
state  treasury,  shall  be deposited by him OR HER to the credit of the
comptroller in such bank or trust company as shall be designated by  the
comptroller at such rate of interest, if any, as shall be agreed upon by
the depositary and the comptroller.
  All  other moneys received by the commissioner of taxation and finance
except as provided in section one hundred five of this article  and  all
moneys  received  by  any  other state officer or other person receiving
moneys belonging to the state, or for which such state officer or  other
person  may  be  responsible  in  his  OR HER official capacity, and all
moneys received by any state institution,  except  for  moneys  received
pursuant to a clinical practice plan established pursuant to subdivision
fourteen  of  section  two  hundred six of the public health law and all
moneys received from the state by any charitable or benevolent  institu-
tion  supported  in whole or in part by the state, shall be deposited to
his, HER, or its credit in such bank or trust company as shall be desig-
nated by the comptroller at such rate of interest, if any, as  shall  be
agreed upon by the depositary and the comptroller.
  Every  bank  or  trust  company  designated by the comptroller for the
deposit of any such moneys
  A. Shall give a bond with sufficient sureties for the security of such
deposit, to be approved by the comptroller  and  filed  in  his  OR  HER
office,
  B.  Or  shall, in lieu of such surety bond, with the permission of the
comptroller deposit with  the  comptroller  such  outstanding  unmatured
bonds  or  notes  or  such certified check or checks as are described in
section one hundred five of this article. The comptroller may, in his OR
HER discretion, accept and substitute for any surety bond or undertaking
given, pursuant to this section, a bond or undertaking in such form  and
with  other  surety  or  sureties, or other security as required by this
section, for such sums as may be prescribed and approved  by  the  comp-
troller  for the safe keeping and prompt payment of such moneys on legal
demand therefor with interest, if any, and the comptroller may thereupon
execute and deliver to the surety or sureties, upon the former  bond  or
undertaking,  a  release  of  such surety or sureties from any liability
accruing subsequent to the date of such release. Such release shall  not
relieve  such surety or sureties from any obligation for losses incurred
prior to the date thereof. On the withdrawal of all moneys from any such
depository and a closing and settlement  of  the  account  thereof,  the
comptroller  may in his OR HER discretion certify to such settlement and
release to the obligor or owner or  owners  entitled  thereto,  of  such
surety  bond,  undertaking, certified check or checks, or other security
deposited with him OR HER.
  C. Notwithstanding any other provisions of  this  section,  the  comp-
troller shall not designate for the deposit of moneys by state officers,
state  institutions and charitable and benevolent institutions supported
in whole or in part by the state a  banking  institution  to  which  the
Community  Reinvestment  Act of 1977, United States P.L. 95-128, applies
unless such institution shall have received a record of  performance  no
lower  than  "satisfactory"  as  determined under such act in accordance
with section twenty-eight-b of the banking law.

S. 6738--A                         41

  This section shall not apply to any funds held by  the  superintendent
of financial services [or the superintendent of financial services] in a
fiduciary capacity.
  S 90. Subdivisions 6 and 7 of section 201 of the state finance law, as
amended  by  chapter  233  of the laws of 1992 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, are amended  to
read as follows:
  6.  Notwithstanding  any  other law to the contrary, where, and to the
extent that, an agreement between the state and an employee organization
pursuant to article fourteen of the civil service law authorizes partic-
ipation in an individual retirement account plan by employees covered by
such agreement, the comptroller, after  receipt  of  written  directions
from  the  director  of  employee  relations where such agreement covers
employees in the executive branch or from the chief administrator of the
courts where such agreement covers employees in the judicial branch,  is
authorized  to deduct from the salary of any employee covered by such an
agreement an amount [which] THAT the employee  may  specify  in  writing
filed in a manner determined by the comptroller for contribution to such
plan  in  accordance  with  the  Economic Recovery Tax Act of 1981 (P.L.
97-34) and transmit deductions so withheld to the financial organization
issuing such plan in accordance with the provisions of  such  agreement.
For  the  purposes  of  this subdivision, subject to the rules and regu-
lations promulgated by the comptroller, the  term  "financial  organiza-
tion"  shall mean an organization authorized to do business in the state
of New York and which is an authorized fiduciary to  act  as  a  trustee
under  an individual retirement account plan established pursuant to the
provisions of an act of congress entitled  "Employee  Retirement  Income
Security  Act  of  1974"  as such provisions may be amended from time to
time, and (i) is licensed or chartered by the state department of finan-
cial services, (ii) [is licensed or chartered by the state department of
financial services, (iii)] is chartered by  an  agency  of  the  federal
government,  [(iv)]  (III) is subject to the jurisdiction and regulation
of the securities and exchange commission of the federal government,  or
[(v)] (IV) is any other entity otherwise authorized to act in this state
as a trustee of an individual retirement account plan established pursu-
ant  to  the provisions of an act of congress entitled "Employee Retire-
ment Income Security Act of 1974" as such provisions may be amended from
time to time; provided, however, that any contributions made pursuant to
this section shall be made to a financial organization whose offices are
located in this state. Any such written authorization may  be  withdrawn
by  the  employee  at  any time upon filing written notice of such with-
drawal in a manner determined by the comptroller or such  deduction  may
be terminated on notice to the comptroller by the financial organization
in accordance with the terms of such plan. Notwithstanding this subdivi-
sion,  an organization defined by subdivision nine of section two of the
banking law or a credit union chartered by the United States and  having
its  principal  office  in  the state of New York and which is otherwise
entitled under this section to receive payments deducted from the salary
of a state employee shall have the right to, and continue  to  have  the
right to, receive such payments for the purpose of individual retirement
account plans offered by such organizations.
  7.  Notwithstanding  any  other law to the contrary, where, and to the
extent that, an agreement between the state and an employee organization
entered into pursuant to article fourteen of the civil  service  law  so
provides  on  behalf  of  employees  in  the collective negotiating unit
designated as the professional  services  negotiating  unit  established

S. 6738--A                         42

pursuant to article fourteen of the civil service law authorizes partic-
ipation  in  an annuity contract by employees covered by such agreement,
the comptroller, after receipt of written directions from  the  director
of  employee  relations,  is authorized to deduct from the salary of any
employee covered by such an agreement an amount [which] THAT the employ-
ee may specify in writing filed in a  manner  determined  by  the  comp-
troller  for  contribution  to  such  plan  or  plans in accordance with
section four hundred three (b) of the Internal Revenue Code  (26  USC  S
403(b))  and  transmit deductions so withheld to the financial organiza-
tion  or  organizations  issuing  such  plan  in  accordance  with   the
provisions  of  such  agreement.  For  the purposes of this subdivision,
subject to the rules and regulations promulgated by the comptroller, the
term "financial organization" shall mean an organization  authorized  to
do  business in the state of New York and which (i) is licensed or char-
tered by the state department of financial services, (ii)  [is  licensed
or  chartered  by  the state department of financial services, (iii)] is
chartered by an agency of the federal government,  or  [(iv)]  (III)  is
subject  to  the  jurisdiction  and  regulation  of  the  securities and
exchange commission of the federal government; provided,  however,  that
any contribution made pursuant to this section shall be made to a finan-
cial  organization  whose  offices  are  located in this state. Any such
written authorization may be withdrawn by the employee at any time  upon
filing  written  notice of such withdrawal in a manner determined by the
comptroller or such deduction may be terminated on notice to  the  comp-
troller  by  the  financial organization in accordance with the terms of
such plan.
  S 91. Paragraph b of subdivision 1 of section 208 of the state finance
law, as added by chapter 460 of the laws of 1982 and as further  amended
by  section  104 of part A of chapter 62 of the laws of 2011, is amended
to read as follows:
  b. The term "financial organization" as used  in  this  section  shall
mean  an  organization  [which] THAT is authorized to do business in the
state of New York, and is licensed or chartered by the state  department
of  financial  services [or the state department of financial services],
is chartered by an agency of the federal government, or  is  subject  to
the jurisdiction of the securities and exchange commission.
  S  92.  Section  94  of  article  7 of chapter 784 of the laws of 1951
constituting the defense emergency act of 1951 is REPEALED.
  S 93. This act shall take effect immediately provided,  however,  that
the  amendments to paragraph 3 of subdivision (e) of section 1120 of the
insurance law made by section fifty-eight of this act shall  be  subject
to  the expiration and reversion of such paragraph pursuant to chapter 2
of the laws of 1998, as amended, when upon such date the  provisions  of
section fifty-nine of this act shall take effect; and provided, further,
that  the  amendments  to  section 1304 of the real property actions and
proceedings law made by section eighty-four of this act shall be subject
to the expiration and reversion of such subdivision when upon such  date
the provisions of section eighty-five of this act shall take effect.

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