senate Bill S6952A

2011-2012 Legislative Session

Relates to the preservation of books and records of banking institutions

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Archive: Last Bill Status - Passed Senate


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 18, 2012 referred to banks
delivered to assembly
passed senate
Jun 04, 2012 amended on third reading 6952a
May 31, 2012 advanced to third reading
May 30, 2012 2nd report cal.
May 23, 2012 1st report cal.899
Apr 16, 2012 referred to banks

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S6952 - Bill Details

Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §36-b, amd §§75-g & 576, Bank L

S6952 - Bill Texts

view summary

Provides that requirements relating to the preservation of certain banking records may be satisfied by maintenance of original papers or other records, photographic reproductions, or records stored in electronic storage media.

view sponsor memo
BILL NUMBER:S6952

TITLE OF BILL:
An act
to amend the banking law, in relation to electronic preservation of
banking records

PURPOSE:
To update the laws regarding the methods that may be used by banking
and financial service companies to preserve books and records.

SUMMARY OF PROVISIONS:
This bill adds a new section 36-b to the Banking Law to clarify the
ability of regulated entities to preserve their books and records
through the use of electronic storage media.

JUSTIFICATION:
Different articles of the Banking Law govern the activities and
operations of various types of banking institutions and non-bank
financial service companies. Each of these articles generally
requires the regulated entities to preserve books and records for a
specified number of years.
However, these sections of law have often been enacted or amended at
different times, and may not have been updated to reflect new
technologies. For example, some sections refer to the maintenance of
records through photographic reproduction, while others include
references to optical disk technology.
This bill would enact a new section of the Banking Law to allow all
regulated entities to utilize electronic storage media in preserving
their records. The bill specifies certain standards that must be met.
This legislation will clarify the ability of financial institutions
to use current technology and best practices to preserve records in a
cost-effective and practical way.

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
The ninetieth day after it shall have become law.

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

                                  6952

                            I N  S E N A T E

                             April 16, 2012
                               ___________

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

AN ACT to amend the banking law, in relation to electronic  preservation
  of banking records

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

  Section 1. The banking law is amended by adding a new section 36-b  to
read as follows:
  S  36-B. PRESERVATION OF BOOKS AND RECORDS. WHEN ANY PROVISION OF THIS
CHAPTER OR ANY RULE OR REGULATION ADOPTED PURSUANT THERETO REQUIRES THAT
BOOKS AND RECORDS BE PRESERVED, SUCH REQUIREMENT  MAY  BE  SATISFIED  BY
MAINTENANCE  OF  ORIGINAL  PAPERS OR OTHER RECORDS, PHOTOGRAPHIC REPROD-
UCTIONS, OR RECORDS STORED IN ELECTRONIC STORAGE MEDIA. AS USED IN  THIS
CHAPTER,  "ELECTRONIC STORAGE MEDIA" MEANS ANY DIGITAL STORAGE MEDIUM OR
SYSTEM THAT MEETS THE FOLLOWING CONDITIONS:
  1. IT MUST PRESERVE THE RECORDS EXCLUSIVELY IN NON-REWRITABLE, NON-ER-
ASABLE FORMAT;
  2. IT MUST VERIFY AUTOMATICALLY THE QUALITY AND ACCURACY OF THE  STOR-
AGE MEDIA RECORDING PROCESS;
  3.  IT  MUST HAVE THE CAPACITY TO READILY DOWNLOAD INDEXES AND RECORDS
PRESERVED ON THE ELECTRONIC STORAGE MEDIA TO ANY  MEDIUM  ACCEPTABLE  TO
THE SUPERINTENDENT; AND
  4. IT MUST BE IMMEDIATELY READABLE ON EQUIPMENT AT ALL TIMES AVAILABLE
TO THE SUPERINTENDENT FOR EXAMINATION OF SUCH RECORDS.
  S  2. This   act shall take effect on the ninetieth day after it shall
have become a law.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15325-01-2

S6952A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §36-b, amd §§75-g & 576, Bank L

S6952A (ACTIVE) - Bill Texts

view summary

Provides that requirements relating to the preservation of certain banking records may be satisfied by maintenance of original papers or other records, photographic reproductions, or records stored in electronic storage media.

view sponsor memo
BILL NUMBER:S6952A

TITLE OF BILL:
An act
to amend the banking law, in relation to electronic preservation of
banking records

PURPOSE:
This bill would update some sections of the Banking Law in order to
reflect and keep pace with changes in technology and practices.

SUMMARY OF PROVISIONS:
Section 1 of this bill adds a new section 36-b to the Banking Law to
clarify the ability of regulated entities to preserve their books and
records through the use of electronic storage media.

Section 2 of this bill amends section 75-g of the Banking Law to
clarify that the Superintendent may require banking institutions to
file their annual ATM reports electronically.

Section 3 of this bill amends section 576 of the Banking Law to
clarify the ability of insurance premium finance agencies to provide
notice by electronic means.

JUSTIFICATION:
This bill contains some amendments recommended by the Department of
Financial Services to update the Banking Law in order to reflect
changes in technology. These amendments will clarify the ability to
use more modem and efficient methods of record keeping and
communication.

The activities and operations of various types of banking institutions
and non-bank financial service companies are governed by different
articles of the Banking Law govern. Each of these articles generally
requires the regulated entities to preserve books and records for a
specified number of years. However, these sections of law have been
enacted or amended at different times, and may not have been updated
to reflect new recordkeeping technologies. For example, some sections
refer to the maintenance of records through photographic
reproduction, while others include references to optical disk
technology.

This bill would enact a new section 36-b in the Banking Law to allow
all regulated entities to utilize electronic storage media in
preserving their records. The bill specifies certain standards that
must be met. This legislation will clarify the ability of financial
institutions to use current technology and best practices to preserve
records in a cost-effective and practical way.

The bill also amends the ATM Safety Act in regard to the submission
of reports. Currently, banking institutions must submit annual
written reports to the Department of Financial Services regarding
their compliance with this article. This can be costly for both the
institutions submitting such reports and for the Department to
process such written reports. The proposed amendment to Section 75-g


of the Banking Law would automate this process by authorizing the
Superintendent to require such reports to be submitted electronically.

Section 576 of the Banking Law currently specifies the process for
cancelling an insurance premium finance contract upon default, and
the mailing of notices to the insured and insurer.
This new section provides that, in addition to mailing, notice may be
delivered by other means, including electronic means, provided that
such delivery method includes evidence of receipt, including a
receipt created and maintained in electronic form.

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:

The ninetieth day after it shall have become law.

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

                                 6952--A
    Cal. No. 899

                            I N  S E N A T E

                             April 16, 2012
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks -- reported  favora-
  bly  from  said committee, ordered to first and second report, ordered
  to a third reading, amended and ordered reprinted, retaining its place
  in the order of third reading

AN ACT to amend the banking law, in relation to electronic  preservation
  of banking records

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

  Section 1. The banking law is amended by adding a new section 36-b  to
read as follows:
  S  36-B. PRESERVATION OF BOOKS AND RECORDS. WHEN ANY PROVISION OF THIS
CHAPTER OR ANY RULE OR REGULATION ADOPTED PURSUANT THERETO REQUIRES THAT
BOOKS AND RECORDS BE PRESERVED, SUCH REQUIREMENT  MAY  BE  SATISFIED  BY
MAINTENANCE  OF  ORIGINAL  PAPERS OR OTHER RECORDS, PHOTOGRAPHIC REPROD-
UCTIONS, OR RECORDS STORED IN ELECTRONIC STORAGE MEDIA. AS USED IN  THIS
CHAPTER,  "ELECTRONIC STORAGE MEDIA" MEANS ANY DIGITAL STORAGE MEDIUM OR
SYSTEM THAT MEETS THE FOLLOWING CONDITIONS:
  1. IT MUST PRESERVE THE RECORDS EXCLUSIVELY IN NON-REWRITABLE, NON-ER-
ASABLE FORMAT;
  2. IT MUST VERIFY AUTOMATICALLY THE QUALITY AND ACCURACY OF THE  STOR-
AGE MEDIA RECORDING PROCESS;
  3.  IT  MUST HAVE THE CAPACITY TO READILY DOWNLOAD INDEXES AND RECORDS
PRESERVED ON THE ELECTRONIC STORAGE MEDIA TO ANY  MEDIUM  ACCEPTABLE  TO
THE SUPERINTENDENT; AND
  4. IT MUST BE IMMEDIATELY READABLE ON EQUIPMENT AT ALL TIMES AVAILABLE
TO THE SUPERINTENDENT FOR EXAMINATION OF SUCH RECORDS.
  S  2.  Subdivision  1  of section 75-g of the banking law, as added by
chapter 9 of the laws of 1996 and as designated by section 4-a of part A
of chapter 57 of the laws of 1998, is amended to read as follows:
  1. Within one year after the effective date of this article, and  each
year thereafter, every banking institution which has an automated teller
machine  facility which is in operation on such date and such date every
year thereafter shall submit a written report to  the  department  on  a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15325-02-2

S. 6952--A                          2

form  prescribed  by  the superintendent, certifying that such automated
teller machine facility is in compliance with  the  provisions  of  this
article  or  any variance or exemption that has been granted, or if such
facility  is  not  in compliance with such provisions, such report shall
state the manner in which such facility fails to meet such requirements,
the reasons for such non-compliance and a plan to remedy any  such  non-
compliance.    NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW
OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT  MAY  REQUIRE  THAT
ANY  REPORTS REQUIRED BY THIS SUBDIVISION BE MADE BY ELECTRONIC MEANS IF
HE OR SHE DEEMS IT NECESSARY  TO  ENSURE  THE  EFFICIENT  AND  EFFECTIVE
ADMINISTRATION OF THIS ARTICLE.
  S  3. Section 576 of the banking law is amended by adding a new subdi-
vision 4 to read as follows:
  4. IN ADDITION TO MAILING, NOTICES REQUIRED UNDER THIS SECTION MAY  BE
DELIVERED  BY OTHER MEANS, INCLUDING ELECTRONIC MEANS, PROVIDED THAT ANY
SUCH DELIVERY EVIDENCES RECEIPT OF THE NOTICE BY THE  ADDRESSEE.    SUCH
RECEIPT MAY BE CREATED AND MAINTAINED IN ELECTRONIC FORM.
  S  4. This   act shall take effect on the ninetieth day after it shall
have become a law.

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