S T A T E   O F   N E W   Y O R K
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                                  8156

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              June 3, 2011
                               ___________

Introduced  by M. of A. LANCMAN -- read once and referred to the Commit-
  tee on Banks

AN ACT to amend the banking law, in relation to the exercise  of  feder-
  ally permitted powers by a state chartered banking institution

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

  Section 1. Subdivision 3 of  section  12-a  of  the  banking  law,  as
amended  by  section  88 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
  3. Except with respect to a federally permitted power approved  pursu-
ant  to  subdivision  four of this section, prior to any state chartered
banking institution initially exercising any federally  permitted  power
pursuant  to this section, such banking institution shall make an appli-
cation individually or with one or more state chartered  banking  insti-
tutions to the superintendent indicating that such institution or insti-
tutions  intend to exercise such federally permitted power and the basis
on which such institution or institutions believe such power is a feder-
ally permitted power.  THE SUPERINTENDENT SHALL HAVE ONE HUNDRED  TWENTY
DAYS  FROM  RECEIPT OF THE APPLICATION TO DETERMINE WHETHER IT MEETS THE
REQUIREMENTS OF THIS SECTION, PROVIDED THAT SUCH PERIOD MAY BE  EXTENDED
FOR  AN ADDITIONAL PERIOD OF TIME WITH THE WRITTEN CONSENT OF THE APPLI-
CANT OR APPLICANTS. If such application meets the requirements  of  this
section,  the superintendent shall post such application upon the bulle-
tin board of the department pursuant to section forty-two of this  arti-
cle.  [After  promptly reviewing such application, the] IF SUCH APPLICA-
TION DOES NOT MEET THE REQUIREMENTS OF THIS SECTION, THE  SUPERINTENDENT
SHALL,  WITHIN  TEN  DAYS OF SUCH DETERMINATION, NOTIFY THE APPLICANT OR
APPLICANTS OF THE REASONS WHY THE APPLICATION FAILS TO MEET THE REQUIRE-
MENTS. THE superintendent shall determine, consistent with the standards
set forth in subdivision five of this section, whether to  approve  such
application  subject  to such terms and conditions as the superintendent

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10810-03-1
              

A. 8156                             2

may deem appropriate, in  the  superintendent's  sole  discretion.  Such
determination,  shall  be  made  by the superintendent within forty-five
days after the posting of  such  application  [by  the  superintendent],
provided  however  that  the  superintendent may notify the applicant or
applicants that the review of the application shall be extended  for  an
additional  period of time not exceeding [one hundred twenty] SIXTY days
after the posting of such application, and provided  further  that  such
period of time may be extended for an additional period of time with the
written consent of the applicant or applicants. The superintendent shall
not act upon the application prior to thirty days after such application
has  been  posted. [If the superintendent shall determine not to approve
of such application, the superintendent shall notify  the  applicant  or
applicants  in writing that the applicant or applicants may not exercise
such federally permitted power.] If  the  superintendent  approves  such
application,  the superintendent shall, WITHIN TEN DAYS OF APPROVING THE
APPLICATION, notify the applicant or applicants in writing thereof,  and
the  applicant or applicants may exercise such federally permitted power
subject to such terms and conditions  as  the  superintendent  may  have
approved.    IF THE SUPERINTENDENT DECLINES SUCH APPLICATION, THE SUPER-
INTENDENT SHALL, WITHIN TEN DAYS OF MAKING  SUCH  DETERMINATION,  NOTIFY
THE  APPLICANT  OR APPLICANTS IN WRITING THEREOF. AN APPLICANT OR APPLI-
CANTS MAY,  UPON  THE  SUPERINTENDENT'S  FAILURE  TO  COMPLY  WITH  THIS
SECTION,  PETITION  THE  SUPERINTENDENT TO ACT UPON THE APPLICATION. THE
FAILURE OF THE SUPERINTENDENT TO ACT UPON THE APPLICATION OR NOTIFY  THE
APPLICANT OR APPLICANTS, IN WRITING, AS TO THE REASONS WHY ACTION CANNOT
BE  TAKEN WITHIN THIRTY DAYS OF RECEIPT OF SUCH PETITION SHALL BE DEEMED
A DENIAL OF THE APPLICATION, WHICH SHALL BE SUBJECT TO JUDICIAL  REVIEW.
Notwithstanding  any other law, the superintendent may make the approval
of an application under this section applicable to  one  or  more  addi-
tional  state chartered banking institutions that are qualified to exer-
cise the same federally permitted powers as the applicant or  applicants
pursuant  to  subdivision two of this section, subject to such terms and
conditions as the superintendent shall find necessary and appropriate.
  S 2. This act shall take effect immediately, provided,  however,  that
the  amendments to subdivision 3 of section 12-a of the banking law made
by section one of this act shall not affect the repeal of  such  section
and shall be deemed repealed therewith.