[ ] 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.
