S. 5463 2
of article thirty-five of the executive law, which shall include the
payment of the prescribed processing fees. The superintendent shall
request that the division submit such fingerprints to the federal bureau
of investigation, together with the processing fees prescribed by such
bureau, for the purpose of conducting a criminal history search and
returning a report thereon UNLESS THE SUPERINTENDENT HAS MADE OTHER
ARRANGEMENTS FOR SUCH SUBMISSION. An applicant shall not be required to
submit his or her fingerprints as required by this subdivision if such
applicant (i) is already subject to regulation by the department and the
applicant has submitted such fingerprints to the department, such fing-
erprints have been submitted to the division of criminal justice
services for the purpose of conducting a criminal history search, and a
report of such search has been received by the department from such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a federal bank regulatory agency and has submitted such fingerprints to
such agency which has had a criminal history search conducted of such
individual and has shared such information or its determination result-
ing from such search with the department WITHIN THE PAST FIVE YEARS; or
(iii) is an officer or stockholder of a corporation whose common or
preferred stock is registered on a national securities exchange, as
provided in an act of congress of the United States entitled the "Secu-
rities Exchange Act of 1934", [approved June sixth, nineteen hundred
thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints to such exchange or market system which has had a criminal
history search conducted of such individual and has shared such informa-
tion or its determination resulting from such search with the department
WITHIN THE PAST FIVE YEARS; provided, however, that the superintendent
may subsequently require such applicant to submit his or her finger-
prints if the superintendent has a reasonable basis for updating the
information or determination resulting from the report of the criminal
history search conducted at the request of such federal banking agency,
exchange or market system.
[(b)] 2. The superintendent [shall] MAY also, concurrent with an
investigation of a licensee or registrant, or an authorized individual,
pertaining to a violation of this chapter, submit such fingerprints to
the division of criminal justice services for the purpose of conducting
a criminal history search and returning a report thereon and through the
division to the federal bureau of investigation for the purpose of a
fingerprint check of such licensee, registrant or authorized individual.
[(c)] 3. For purposes of this section, "applicant" shall include a
natural person or such principal, officer, director, trustee or stock-
holder of any other entity as may be designated by the superintendent.
Notwithstanding any other provision of this article, the superintendent
shall not access criminal history data or information, unless any agency
from which the superintendent receives directly criminal history data or
information has entered into a use and dissemination agreement with the
superintendent consistent with the provisions of this section.
S 3. The second undesignated paragraph of section 23 of the banking
law, as amended by section 5 of part O of chapter 59 of the laws of
2006, is amended to read as follows:
At the time of submission of the certificate and accompanying docu-
ments an investigation fee as prescribed pursuant to section eighteen-a
of this article shall be paid to the superintendent[, to be retained by
him or her if the certificate and accompanying documents are filed. If
the certificate and accompanying documents are not filed because of
S. 5463 3
defects therein, the investigation fee is to be returned with such
papers to the persons from whom they were received].
S 4. Section 24 of the banking law, as amended by chapter 684 of the
laws of 1938, subdivision 1 as amended by chapter 453 of the laws of
1960, subdivision 2 as amended by chapter 419 of the laws of 1996,
subdivision 3 as amended by chapter 52 of the laws of 1944 and subdivi-
sion 4 as amended by chapter 608 of the laws of 1996, is amended to read
as follows:
S 24. Investigation by superintendent; refusal or approval; filing
certificate. 1. Within ninety days after the date when any organization
certificate or private banker's certificate shall have been filed for
examination, the superintendent, if he OR SHE shall find after investi-
gation and examination of what he OR SHE deems to be the best sources of
information [at his command] AVAILABLE that the character, responsibil-
ity and general fitness of the person or persons named in such certif-
icate are such as to command confidence and warrant belief that the
business of the proposed corporation or private banker will be honestly
and efficiently conducted in accordance with the intent and purpose of
this chapter, and that the public convenience and advantage will be
promoted by allowing such proposed corporation or private banker to
engage in business, shall [submit] APPROVE such certificate [to the
banking board together with all papers, correspondence and other infor-
mation in his possession relating thereto, including the results of his
investigation and his recommendation in the matter]. [Such] AN EXTENSION
OF SUCH NINETY DAY period [of ninety days] may be [extended] REQUESTED,
by a written [consent] REQUEST executed by a majority of the persons
from whom the superintendent received such organization certificate or
private banker's certificate, for such additional reasonable period of
time as may be required for applicants to comply with conditions prece-
dent stipulated by the superintendent as being a prerequisite to his
[recommendation to the banking board] OR HER APPROVAL. THE SUPERINTEN-
DENT, IN HIS OR HER SOLE DISCRETION, SHALL DETERMINE WHETHER TO GRANT
SUCH AN EXTENSION.
2. [If three-fifths of the members of the board, after consideration
of all relevant information available to them, shall vote for approval,
the] THE superintendent[, if he is still satisfied, upon the consider-
ations set forth in subdivision one of this section, that such proposed
corporation or private banker should be permitted to engage in busi-
ness,] shall [approve such certificate and] ALSO endorse upon each of
the duplicates the date of such approval. [He] THE SUPERINTENDENT shall
forthwith cause notice of such approval to be given to the proposed
incorporators or private banker and one of the duplicate certificates
[to] SHALL be filed in the office of the department and the other in the
office of the clerk of the county in which the principal office of such
proposed corporation or private banker is to be located. In a case in
which a private banker certificate is submitted to the superintendent
for the purpose of continuing the business in connection with a change
in its partnership, the superintendent shall approve the private banker
certificate [without any action by the banking board] upon making a
determination that the private banker should be permitted to continue
its business based upon the considerations set forth in subdivision one
of this section.
3. If [three-fifths of the members of the banking board shall not vote
for approval, or if] the superintendent[, either prior or subsequent to
the submission of such certificate to the board,] is not satisfied, upon
the considerations set forth in subdivision one of this section, that
S. 5463 4
such proposed corporation or private banker should be permitted to
engage in business, the superintendent shall refuse such certificate and
shall endorse thereon the date of such refusal and return one of the
duplicates to the proposed incorporators or private banker from whom
such certificate was received.
4. The provisions of this section shall not apply to any organization
certificate required to be filed in the office of the superintendent by
SECTION ONE HUNDRED THIRTY-SIX, BY section two hundred sixty-b, by
section four hundred ten, by section four hundred eleven or by section
four hundred eighty-six of this chapter.
S 5. Subdivisions 1 and 3 of section 25 of the banking law, subdivi-
sion 1 as amended by chapter 512 of the laws of 1977 and subdivision 3
as amended by chapter 561 of the laws of 1946, are amended to read as
follows:
1. If the superintendent shall find that a corporation or private
banker, the certificate of which has been approved and filed as provided
in section twenty-four of this article, has in good faith complied with
all the requirements of law and fulfilled all the conditions precedent
to commencing business imposed by this chapter, [he] THE SUPERINTENDENT
shall, within ninety days after the date of such approval, [or within
such longer period thereafter as he may permit pursuant to the second
sentence of this subdivision,] but in no case after the expiration of
that period, issue [under his hand] and EXECUTE UNDER the official seal
of the department, in triplicate, an authorization certificate to the
person or persons named in such organization certificate or private
banker's certificate. [The] NOTWITHSTANDING THE PRECEDING SENTENCE, IF
THE SUPERINTENDENT DETERMINES IT IS CONSISTENT WITH THE DECLARATION OF
POLICY CONTAINED IN SECTION TEN OF THIS ARTICLE, THE superintendent may
extend the period within which he OR SHE may issue the authorization
certificate by (I) an additional [sixty] NINETY days, provided, however,
that he OR SHE shall have determined that such extension of time is
needed for raising capital, for fulfilling any other condition precedent
to the commencement of business or for satisfying any other requirement
of organization, whether imposed by statute or regulation[, and that
such extension is consistent with the declaration of policy contained in
section ten of this chapter] OR OTHERWISE, OR (II) SUCH LONGER PERIOD OF
TIME HE OR SHE SHALL DEEM APPROPRIATE, PROVIDED, HOWEVER, THAT HE OR SHE
SHALL HAVE DETERMINED THAT EXTRAORDINARY CIRCUMSTANCES EXIST. Such
authorization certificate shall state that the corporation or private
banker named therein has complied with the provisions of this chapter
and that it is authorized to transact the business specified therein.
Such authorization certificate shall be conclusive evidence that all
conditions precedent have been fulfilled and that the corporation has
been formed under this chapter, except in an action or special proceed-
ing brought by the superintendent or the attorney general. The super-
intendent shall cause one of the triplicate authorization certificates
to be transmitted to the corporation or private banker thereby author-
ized to commence business, another to be filed in the office of the
department, and the third to be filed in the county clerk's office in
which the organization certificate or the private banker's certificate
has been filed. The copies of the authorization certificate filed in the
offices of the superintendent and the county clerk shall be attached to
the copies of the organization certificate or private banker's certif-
icate previously filed and such certificates shall be recorded in the
records of incorporation therein.
S. 5463 5
3. Any corporation which shall not commence business within six months
after the date on which its authorization certificate is issued by the
superintendent shall forfeit its rights and privileges as a corporation
and its corporate powers shall cease and determine unless the time with-
in which such business may be commenced has been extended by the super-
intendent. Upon satisfactory cause being shown, the superintendent may
grant [an extension for a period of not more than one year] ONE OR MORE
EXTENSIONS. Such extension shall be granted by order executed, transmit-
ted and filed in the manner provided for an authorization certificate in
subdivision one of this section.
S 6. Section 28 of the banking law, as amended by chapter 315 of the
laws of 2008, is amended to read as follows:
S 28. Change of location; change of designation of principal office;
approval or refusal; certificate. Upon receipt by the superintendent of
a written application in proper form from any banking organization or
foreign corporation for leave to change its place or one of its places
of business to another place or from any banking organization for leave
to change the designation of its principal office to a branch office and
to change the designation of one of its branch offices to its principal
office, the superintendent shall, if he or she shall be satisfied that
such change may be permitted under the terms of this chapter and that
there is no reasonable objection to such change, execute and issue a
certificate under the official seal of the department authorizing such
change and specifying the date on or after which such change may be
made, and shall cause the original of such certificate to be transmitted
to the applicant, a copy to be filed in the office of the department and
a copy to be filed in the office of the clerk of the county in which the
principal office of the applicant is located, provided that if the
proposed principal office is in a different county than the county in
which the principal office is located at the time of the filing of the
application, the superintendent shall cause copies to be filed in the
offices of the clerks of both counties. If the superintendent shall [be
satisfied in any case that such change is undesirable or inexpedient, he
or she shall] refuse such application [and], HE OR SHE SHALL notify the
applicant of such determination.
S 7. Section 28-a of the banking law, as amended by section 6 of part
O of chapter 59 of the laws of 2006, is amended to read as follows:
S 28-a. Temporary change of location; approval or refusal; certif-
icate. Notwithstanding any provisions of law limiting the number of
offices which may be maintained thereby, any banking organization or
foreign banking corporation may make a written application to the super-
intendent for a temporary change of location of its authorized place or
one of its authorized places of business or a portion thereof to another
place within the state which shall be as near as practicable to such
authorized place of business. At the time of making the application an
investigation fee as prescribed pursuant to section eighteen-a of this
article shall be paid to the superintendent for each temporary location
for which leave to open is sought, except where (1) the applicant would
not be required to pay an investigation fee upon the filing of an appli-
cation for a change of location under provisions of this chapter other
than this section, or (2) said application is necessitated by damage or
destruction caused by flood, tidal wave, earthquake, conflagration,
tornado, hurricane, cyclone, windstorm or other storm or such other
event as shall have been declared a catastrophe by the superintendent.
If there is no reasonable objection to such change, and if the super-
intendent finds that such change is necessary or desirable during a
S. 5463 6
period of construction, repair, alteration, improvement, or recon-
struction of the previously authorized place of business, he or she
shall issue AND EXECUTE a certificate under [his or her hand and] the
official seal of the department authorizing each such change and speci-
fying (a) the period during which such temporary location may be main-
tained, (b) the date on or after which such change may be made, and (c)
the powers which may be exercised thereat. The superintendent shall
cause the original of such certificate to be transmitted to the appli-
cant, a copy to be filed in the office of the department and a copy to
be filed in the office of the clerk of the county in which the principal
office of the applicant is located. If the superintendent shall [be
satisfied in any case that a change is undesirable or inexpedient, he or
she shall] refuse such application [and], HE OR SHE SHALL notify the
applicant of [his or her] SUCH determination. A temporary place of busi-
ness occupied pursuant to the provisions of this section shall be closed
as soon as practicable, and in no event later than the date specified in
its authorization certificate, unless the superintendent shall have
extended such time. The banking organization or corporation shall notify
the superintendent in writing prior to such closing as to the date it
intends to close the temporary place of business.
S 8. Subdivision 2 of section 28-b of the banking law is REPEALED.
S 9. Subdivision 5 of section 28-b of the banking law, as added by
chapter 361 of the laws of 1984, is amended to read as follows:
5. The [banking board] SUPERINTENDENT is hereby authorized and
empowered[, by a three-fifths vote of all its members,] to promulgate
rules and regulations effectuating the provisions of this section,
including any rules and regulations providing that the assessment of
banking institutions referred to in subdivision three of this section
shall be made on a graduated numerical basis.
S 10. 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-ERASABLE 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 AVAIL-
ABLE TO THE SUPERINTENDENT FOR EXAMINATION OF SUCH RECORDS.
S 11. The closing paragraph of section 42 of the banking law, as
amended by chapter 684 of the laws of 1938, is amended to read as
follows:
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS SECTION, THE SUPER-
INTENDENT MAY VARY OR WAIVE ANY SUCH PUBLICATION REQUIREMENTS, IF HE OR
SHE SHALL DETERMINE THAT SUCH VARIATION OR WAIVER IS NECESSARY BECAUSE
OF UNUSUAL AND EXTRAORDINARY CIRCUMSTANCES AND CONSIDERATION OF THE
MATTER IS IN THE PUBLIC INTEREST. Every such statement after having been
so posted for one week shall be placed on file and kept in the office of
S. 5463 7
the department. All such statements shall be public documents and at all
reasonable times shall be open to public inspection.
S 12. Subdivision 1 of section 229 of the banking law, as amended by
chapter 1 of the laws of 1984, is amended to read as follows:
1. This article applies to every savings bank and shall not apply to
any other banking organization except to such extent, if any, as may be
specified in any article of this chapter governing such banking organ-
ization; provided, however, that in the case of stock-form savings
banks, this article applies to every such organization except that the
[banking board] SUPERINTENDENT, consistent with the declaration of poli-
cy described in section fourteen-e of this chapter, shall be empowered
to deem inapplicable to stock-form savings banks, sections two hundred
thirty, [two hundred thirty-one,] two hundred thirty-two, two hundred
thirty-three, subdivisions one and two of section two hundred thirty-
four, two hundred forty-three, two hundred forty-four, two hundred
forty-five, two hundred forty-six, two hundred forty-six-a, two hundred
forty-seven, two hundred forty-eight, two hundred forty-nine, two
hundred fifty, two hundred fifty-one and two hundred fifty-two of this
chapter.
S 13. Subdivision 1 of section 413 of the banking law, as amended by
chapter 300 of the laws of 1994, is amended to read as follows:
1. With the prior approval of the superintendent, a New York savings
and loan holding company or a subsidiary thereof or a New York savings
association may acquire control of an out-of-state savings and loan
holding company or an out-of-state savings association, and an out-of-
state savings and loan holding company or a subsidiary thereof or an
out-of-state savings association may acquire control of a New York
savings and loan holding company or a New York savings association
subject to regulations to be adopted by the [banking board] SUPERINTEN-
DENT. [The terms and conditions prescribed by such regulations shall be
substantially similar to those contained in section one hundred forty-
two-b of this chapter governing reciprocal interstate acquisitions by
bank holding companies.]
S 14. Subdivision 2 of section 460 of the banking law, as added by
chapter 608 of the laws of 1996, is amended to read as follows:
2. Earnings from all sources for the period for which a dividend is to
be paid[, except as provided in section four hundred fifty-eight of this
article,] may be credited to the profit and loss account of the credit
union and the following items shall be charged against such account in
the determination of the amount available for dividends to shareholders:
(a) All expenses paid or incurred by the credit union in the manage-
ment of its affairs, the collection of its debts or the transaction of
its business.
(b) The interest paid or accrued on debts owed by the credit union.
(c) All losses incurred on loans in excess of the allowance for loan
loss account.
(d) Any interest collected in advance shall be considered unearned at
the end of the fiscal period, and shall be set aside in an account
called "unearned interest".
The credit balance of the profit and loss account as thus determined
shall constitute the undivided profits of the credit union at the close
of such period, and shall be applicable to the payment of dividends
except as provided in subdivision three of this section.
S 15. Section 4002 of the banking law, as added by chapter 321 of the
laws of 1992, subdivision (a) as amended by chapter 217 of the laws of
S. 5463 8
2010, subdivision (b) as amended and subdivision (d) as added by chapter
302 of the laws of 2003, is amended to read as follows:
S 4002. Fingerprints. [(a)] 1. Notwithstanding any other provisions
of law, every incorporator of a corporation shall, in addition to any
other requirements which may be imposed by the superintendent, submit
simultaneously with an application, his or her fingerprints in such form
and in such manner as specified by the division of criminal justice
services, but in any event, no less than two digit imprints. Every
applicant filing an application to acquire control of any banking insti-
tution under sections one hundred forty-three-a and one hundred forty-
three-b of this chapter shall, in addition to any other requirements
which may be imposed by the superintendent, submit simultaneously with
an application, his or her fingerprints in such form and in such manner
as specified by the division of criminal justice services, but in any
event, no less than two digit imprints. The superintendent shall submit
the fingerprints to the division of criminal justice services for the
purpose of conducting a criminal history search and returning a report
thereon in accordance with the procedures and requirements established
by the division pursuant to the provisions of article thirty-five of the
executive law, which shall include the payment of the prescribed proc-
essing fees. The superintendent shall request that the division submit
such fingerprints to the federal bureau of investigation, together with
the processing fees prescribed by such bureau, for the purpose of
conducting a criminal history search and returning a report thereon.
[(b)] 2. The superintendent [shall] MAY also, concurrent with an
investigation of an incorporator of a corporation pertaining to a
violation of this chapter, submit such fingerprints to the division of
criminal justice services for the purpose of conducting a criminal
history search and returning a report thereon and through the division
to the federal bureau of investigation for the purpose of a fingerprint
check of such incorporator.
[(c)] 3. For purposes of this section, ["incorporator"] "APPLICANT"
SHALL INCLUDE AN INCORPORATOR AND shall include a natural person or such
principal, officer, director, trustee or stockholder of any other entity
as may be designated by the superintendent. Notwithstanding any other
provision of this article, the superintendent shall not access criminal
history data or information, unless any agency from which the super-
intendent receives directly criminal history data or information has
entered into a use and dissemination agreement with the superintendent
consistent with the provisions of this section.
[(d)] 4. An applicant shall not be required to submit his or her fing-
erprints as required by subdivision [(a)] ONE of this section if such
applicant (i) is already subject to regulation by the department and the
applicant has submitted such fingerprints to the department, such fing-
erprints have been submitted to the division of criminal justice
services for the purpose of conducting a criminal history search, and a
report of such search has been received by the department from such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a federal bank regulatory agency and has submitted such fingerprints to
such agency which has had a criminal history search conducted of such
individual and has shared such information or its determination result-
ing from such search with the department WITHIN THE PAST FIVE YEARS; or
(iii) is an officer or stockholder of a corporation whose common or
preferred stock is registered on a national securities exchange, as
provided in an act of congress of the United States entitled the "Secu-
rities Exchange Act of 1934", [approved June sixth, nineteen hundred
S. 5463 9
thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints to such exchange or market system which has had a criminal
history search conducted of such individual and has shared such informa-
tion or its determination resulting from such search with the department
WITHIN THE PAST FIVE YEARS; provided, however, that the superintendent
may subsequently require such applicant to submit sets of fingerprints
if the superintendent has a reasonable basis for updating the informa-
tion or determination resulting from the report of the criminal history
search conducted at the request of such federal banking agency, exchange
or market system.
5. WHENEVER AN INCORPORATOR HAS TIMELY FILED HIS OR HER FINGERPRINTS
AS REQUIRED BY THIS SECTION, BUT: (I) THE SUPERINTENDENT HAS NOT
RECEIVED A REPORT OF THE RESULTS OF A RELATED CRIMINAL HISTORY SEARCH;
(II) THE CIRCUMSTANCES WARRANT AN EXPEDITIOUS DETERMINATION; AND (III)
THE SUPERINTENDENT DETERMINES, AFTER CONSIDERING ALL AVAILABLE INFORMA-
TION, THAT THE REMAINING INCORPORATORS ARE ADEQUATE IN NUMBER AND HAVE
THE CHARACTER, RESPONSIBILITY AND GENERAL FITNESS SO AS TO WARRANT
BELIEF THAT, EVEN IF SUCH PERSON WERE NOT TO SERVE AS AN INCORPORATOR,
SUCH BUSINESS WILL BE HONESTLY AND EFFICIENTLY OPERATED, THE SUPERINTEN-
DENT MAY WAIVE THE REQUIREMENT FOR RECEIPT OF SUCH REPORT PRIOR TO
APPROVAL, SUBJECT TO RECEIPT FROM SUCH INCORPORATOR OF HIS OR HER WRIT-
TEN AGREEMENT TO RESIGN IMMEDIATELY FROM ALL POSITIONS HELD WITH SUCH
ENTITY IF SUCH REPORT DEMONSTRATES, IN THE SOLE DISCRETION OF THE SUPER-
INTENDENT, THAT THE INCORPORATOR LACKS THE NECESSARY CHARACTER, RESPON-
SIBILITY AND FITNESS.
S 16. Subdivision 8 of section 5004 of the banking law, as added by
chapter 849 of the laws of 1964, is amended to read as follows:
8. When the consideration for shares has been paid in full, the
subscriber shall be entitled to all the rights and privileges of a hold-
er of such shares and to a certificate representing his shares, and such
shares shall be fully paid and, subject to sections [one hundred thir-
teen-a, one hundred thirteen-b,] one hundred fourteen[, three hundred
five, three hundred five-a, three hundred six, three hundred twenty-two,
three hundred twenty-two-a] and three hundred twenty-three of this chap-
ter, shall be nonassessable.
S 17. Paragraph (b) of subdivision 1 of section 591 of the banking
law, as amended by chapter 164 of the laws of 2003, is amended to read
as follows:
(b) [The] AS PROVIDED IN SECTION TWENTY-TWO OF THIS CHAPTER, THE fing-
erprints of the applicant[, which may be submitted to the division of
criminal justice services and the federal bureau of investigation for
state and national criminal history record checks];
S 18. Subdivision 1 of section 592 of the banking law, as amended by
chapter 400 of the laws of 1993, is amended to read as follows:
1. Upon the filing of an application for a license, if the superinten-
dent shall find that the financial responsibility, experience, charac-
ter, and general fitness of the applicant and of the members thereof if
the applicant is a co-partnership or association, and of the officers
and directors thereof if the applicant is a corporation are such as to
command the confidence of the community and to warrant belief that the
business will be operated honestly, fairly, and efficiently within the
purpose of this article, the superintendent shall thereupon issue a
license in duplicate to engage in the business of making mortgage loans
described in section five hundred ninety of this article in accordance
with provisions of this article. If the superintendent shall not so
S. 5463 10
find, the superintendent shall not issue such license, and the super-
intendent shall notify the applicant of the denial. The superintendent
shall transmit one copy of such license to the applicant and file anoth-
er in the office of the banking department. Upon receipt of such
license, a mortgage banker shall be authorized to engage in the business
of making mortgage loans in accordance with the provisions of this arti-
cle. [Such license shall remain in full force and effect until it is
surrendered by the licensee or revoked or suspended as hereinafter
provided.] The superintendent shall approve or deny every application
for license hereunder within ninety days from the filing of a completed
application provided, however, that failure to act within the prescribed
period shall not be deemed approval of any such application.
S 19. Subdivision 1 of section 592-a of the banking law, as amended by
section 18 of part D-1 of chapter 109 of the laws of 2006, is amended to
read as follows:
1. Upon the filing of an application for registration, if the super-
intendent shall find that the financial responsibility, experience,
character, and general fitness of the applicant, and of the members
thereof if the applicant is a co-partnership or association, and of the
officers and directors thereof if the applicant is a corporation, are
such as to command the confidence of the community and to warrant belief
that the business will be operated honestly, fairly, and efficiently
within the purpose of this article, the superintendent shall thereupon
register the applicant as a mortgage broker on a roll maintained for
that purpose at the banking department, and issue a certificate attest-
ing to such registration in duplicate. If the superintendent shall not
so find, the superintendent shall not register such applicant, and shall
notify the applicant of the denial. The superintendent shall transmit
one copy of such certificate to the applicant and file another in the
office of the banking department. Upon receipt of such certificate a
mortgage broker shall be authorized to engage in the business of [plac-
ing] SOLICITING, processing [and], PLACING, OR negotiating mortgage
loans. [Such registration shall remain in full force and effect until it
is surrendered by the licensee or revoked or suspended as hereinafter
provided, except that such registration, notwithstanding any provisions
of subdivision five of section seventeen of this chapter to the contra-
ry, shall expire upon the registrant's failure to pay the required
assessment charged pursuant to such section seventeen thirty days after
the date or dates such payment or payments are due. If the registrant
fails to pay such charged assessment by the date or dates such payment
or payments are due, then the registrant shall be required to pay, in
addition, a late fee in the amount of one hundred dollars. Such regis-
tration shall be reinstated if the registrant pays such assessment
charged and any applicable late fees and/or interest within sixty days
of such expiration.] The superintendent shall approve or deny every
application for registration hereunder within ninety days from the
filing of a complete application provided, however, that failure to act
within the prescribed period shall not be deemed approval of any such
application.
S 20. Section 595 of the banking law, as amended by chapter 571 of
the laws of 1986, paragraph (c) of subdivision 1 as amended and para-
graph (d) of subdivision 1 as added by chapter 164 of the laws of 2003,
subdivision 2 as amended by chapter 121 of the laws of 1993, subdivision
3 as amended by chapter 516 of the laws of 1996, subdivisions 4, 5 and 6
as amended and subdivisions 4-a and 7-a as added by chapter 400 of the
laws of 1993, is amended to read as follows:
S. 5463 11
S 595. Grounds for suspension or revocation of license, or suspension
or deletion of name from mortgage broker roll. 1. [The] IN ADDITION TO
THE AUTHORITY SET FORTH IN SUBDIVISION TWO OF THIS SECTION, THE super-
intendent may SUSPEND OR revoke any license to engage in the business of
a mortgage banker issued pursuant to this article or SUSPEND OR delete
the name of a mortgage broker [from the roll of mortgage brokers] OR A
MORTGAGE LOAN SERVICER registered pursuant to this article (EACH
REFERRED TO IN THIS SECTION AS A REGISTRANT) if he OR SHE shall find
AFTER NOTICE AND A HEARING, that:
(a) Through a course of conduct, the licensee or registrant has
violated any provisions of this article, or any rule or regulation
promulgated by the [banking board, or any rule or regulation prescribed
by the] superintendent under and within the authority of this article or
of any other law, rule or regulation of this state or the federal
government;
(b) Any fact or condition exists which, if it had existed at the time
of the original application for such license or registration, would have
warranted the superintendent in refusing originally to issue such
license;
(c) The commission by a licensee or registrant of a crime against the
laws of this state or any other state or of the United States involving
moral turpitude or fraudulent or dishonest dealing, or the entry of a
final judgment against a licensee or registrant in a civil action upon
grounds of fraud, misrepresentation or deceit;
(d) As a part of such determination regarding suspension or revoca-
tion, the superintendent is authorized to require the fingerprinting of
any licensee or registrant. Such fingerprints shall be submitted to the
division of criminal justice services for a state criminal history
record check, as defined in subdivision one of section three thousand
thirty-five of the education law, and may be submitted to the federal
bureau of investigation for a national criminal history record check.
2. (A) The superintendent may, [on] FOR good cause [shown], WITHOUT
NOTICE OR A HEARING, or where there is a substantial risk of public
harm, [suspend] ISSUE AN ORDER SUSPENDING any license or [delete the
name of any registrant] REGISTRATION ISSUED PURSUANT TO THIS ARTICLE for
a period not exceeding [thirty] NINETY days, pending investigation.
"Good cause", as used in this subdivision, shall exist only when the
licensee or registrant has defaulted or is likely to default in perform-
ing its financial engagements or engages in dishonest or inequitable
practices which may cause substantial harm to the persons afforded the
protection of this article.
(B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT A
HEARING, ISSUE A NOTICE SUSPENDING THE LICENSE OR REGISTRATION OF ANY
MORTGAGE BANKER OR MORTGAGE LOAN SERVICER THIRTY DAYS AFTER THE DATE OR
DATES IT FAILS TO MAKE ANY PAYMENTS REQUIRED BY THIS CHAPTER.
(C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE OR REGISTRA-
TION ISSUED PURSUANT TO THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE
LICENSEE OR REGISTRANT FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY
IT WITH THE SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY SECTION
FIVE HUNDRED NINETY-SEVEN OF THIS ARTICLE; (II) IMMEDIATELY UPON NOTICE
TO THE SUPERINTENDENT THAT ANY REQUIRED SURETY BOND OR LINE OF CREDIT IS
BEING CANCELED OR IS EXPIRING, IF THE LICENSEE OR REGISTRANT HAS NOT
PROVIDED THE SUPERINTENDENT WITH PROOF OF A REPLACEMENT BOND OR LINE OF
CREDIT SATISFACTORY TO THE SUPERINTENDENT; (III) IMMEDIATELY UPON NOTICE
TO THE SUPERINTENDENT THAT THE LICENSEE OR REGISTRANT HAS FILED A PETI-
S. 5463 12
TION IN BANKRUPTCY; OR (IV) AT LEAST THIRTY DAYS AFTER THE LICENSEE OR
REGISTRANT HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY.
3. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE OR
REGISTRATION PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS
SECTION, SUCH LICENSE OR REGISTRATION MAY BE REINSTATED IF THE SUPER-
INTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION,
THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE
SUPERINTENDENT HAS ISSUED AN ORDER OR NOTICE SUSPENDING A LICENSE OR
REGISTRATION PURSUANT TO PARAGRAPH (B) OR PARAGRAPH (C) OF SUBDIVISION
TWO OF THIS SECTION, SUCH LICENSE OR REGISTRATION MAY BE REINSTATED, IF
THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT THE
LICENSEE OR REGISTRANT HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH
SUSPENSION ORDER OR THE NOTICE BY THE CLOSE OF BUSINESS NINETY DAYS
AFTER THE DATE OF SUCH SUSPENSION ORDER OR NOTICE, INCLUDING, WITHOUT
LIMITATION, MAKING ANY OVERDUE PAYMENT, HAVING ANY SUCH BANKRUPTCY PETI-
TION DISMISSED OR HAVING SUCH BOND REINSTATED OR REPLACED. OTHERWISE,
UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED A
SUSPENSION PURSUANT TO PARAGRAPH (B) OR PARAGRAPH (C) OF SUBDIVISION TWO
OF THIS SECTION, SUCH LICENSE OR REGISTRATION SHALL BE DEEMED TO BE
AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON
SUCH NINETIETH DAY.
4. Except as provided in subdivision two of this section, no license
or registration shall be revoked or suspended except after notice and a
hearing thereon. Any order of suspension issued after notice and a hear-
ing may include as a condition of reinstatement that the licensee or
registrant make restitution to consumers of fees or other charges which
have been improperly charged or collected as determined by the super-
intendent.
[4. Any] 5. WITH THE PRIOR APPROVAL OF THE SUPERINTENDENT, ANY licen-
see or registrant UNDER THIS ARTICLE may surrender any license or
[certificate] REGISTRATION by delivering to the superintendent written
notice that it thereby surrenders such license or [certificate] REGIS-
TRATION, but such surrender shall not affect such licensee's or regis-
trant's civil or criminal liability for acts committed prior to such
surrender. [If such surrender is made after the issuance by the super-
intendent of a statement of charges and notice of hearing, the super-
intendent may proceed against the licensee or registrant as if such
surrender had not taken place.
4-a. An expiration] 6. A TERMINATION of registration OR LICENSE in
accordance with THIS section [five hundred ninety-two-a of this article]
shall not affect such registrant's OR LICENSEE'S civil or criminal
liability for acts committed prior to such [expirations] TERMINATION.
If such [expiration] TERMINATION occurs after the issuance by the super-
intendent of a statement of charges and notice of hearing, the super-
intendent may proceed against the registrant OR LICENSEE as if such
[expiration] TERMINATION had not taken place.
[5] 7. No revocation, suspension, surrender or [expiration] TERMI-
NATION of any license or [certificate] REGISTRATION shall impair or
affect the obligation of any preexisting lawful contract between the
licensee or registrant and any person.
[6] 8. Every license or registration issued pursuant to this article
shall remain in force and effect until the same shall have [expired]
TERMINATED in accordance with [section five hundred ninety-two-a of this
article] SUBDIVISION TWO OR THREE OF THIS SECTION or shall have been
surrendered, revoked or suspended in accordance with any other
provisions of this article, but the superintendent shall have authority
S. 5463 13
to reinstate a suspended license or [certificate] REGISTRATION or to
issue a new license or [certificate] REGISTRATION to a licensee or
registrant whose license or registration shall have been TERMINATED OR
revoked if no fact or condition then exists which would have warranted
the superintendent in refusing originally to issue such license or
registration under this article.
[7] 9. Whenever the superintendent shall revoke or suspend a license
or registration issued pursuant to this article OTHER THAN PURSUANT TO
PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION, he OR SHE shall forth-
with execute in duplicate a written order to that effect. The super-
intendent shall file one copy of such order in the office of the depart-
ment of banking and shall forthwith serve the other copy upon the
licensee or registrant. Any such order may be reviewed in the manner
provided by article seventy-eight of the civil practice law and rules.
Such application for review as authorized by this section must be made
within thirty days from the date of such order of suspension or revoca-
tion.
[7-a] 10. Whenever a registration OR LICENSE shall have [expired]
TERMINATED in accordance with [section five hundred ninety-two-a of]
this article, the superintendent shall notify the registrant OR LICENSEE
that the registration OR LICENSE has [expired] TERMINATED and that the
registrant OR LICENSEE may not engage in [the business of soliciting,
processing, placing or negotiating a mortgage loan or offering to solic-
it, process, place or negotiate a mortgage loan] ANY ACTIVITY REQUIRING
REGISTRATION OR A LICENSE in this state.
[8] 11. Any hearing held pursuant to the provisions of this section
shall be noticed, conducted and administered in compliance with the
state administrative procedure act.
S 21. Section 254-b of the real property law, as added by chapter 119
of the laws of 1974, is amended to read as follows:
S 254-b. Limitation on late charges AND INCREASED INTEREST RATE. 1.
If a bond or note, or the mortgage on real property, heretofore or here-
after made, improved by a one to six family residence occupied by the
owner, securing the payment of [same] SUCH BOND OR NOTE, or a note
representing a loan for the purpose of financing the purchase of an
ownership interest in, and proprietary lease from, a corporation or
partnership formed for the purpose of the cooperative ownership of resi-
dential real estate, contains a provision whereby the mortgagee or lend-
er retains the right to collect a late charge on any instalment which
has become due and remains unpaid, such charge on any such delinquent
instalment, regardless of the period it remains in default, shall not
exceed and shall only be enforced to the extent of two percent of such
delinquent instalment; provided, however, that no charge shall be
imposed on any instalment paid within fifteen days after the due date.
No such late charge shall be deducted from any regular instalment
payment by the mortgagor or borrower, but shall be separately charged
and collected by the mortgagee or lender. In the absence of a specific
provision in a bond, note or mortgage no late charge on any delinquent
instalment shall be assessed or collected. The term "instalment" shall
include amounts representing interest, amortization of principal and
payments in respect of insurance premiums, taxes and utility charges if
the bond, note or mortgage provides for collection thereof by the mort-
gagee.
2. NO BOND OR NOTE, OR THE MORTGAGE ON REAL PROPERTY IMPROVED BY A
ONE TO SIX FAMILY RESIDENCE OCCUPIED BY THE OWNER, SECURING THE PAYMENT
OF SUCH BOND OR NOTE, OR A NOTE REPRESENTING A LOAN FOR THE PURPOSE OF
S. 5463 14
FINANCING THE PURCHASE OF AN OWNERSHIP INTEREST IN, AND PROPRIETARY
LEASE FROM, A CORPORATION OR PARTNERSHIP FORMED FOR THE PURPOSE OF THE
COOPERATIVE OWNERSHIP OF RESIDENTIAL REAL ESTATE MAY CONTAIN A PROVISION
WHICH INCREASES THE INTEREST RATE AFTER DEFAULT. THIS PROVISION DOES NOT
APPLY TO INTEREST RATE CHANGES IN A VARIABLE RATE LOAN OTHERWISE
CONSISTENT WITH THE PROVISIONS OF THE LOAN DOCUMENTS; PROVIDED THAT THE
CHANGE IN THE INTEREST RATE IS NOT TRIGGERED BY THE EVENT OF DEFAULT OR
THE ACCELERATION OF THE INDEBTEDNESS.
3. The provisions in this section shall not apply to any loan or
forbearance insured by the federal housing commissioner or for which a
commitment to insure has been made by the federal housing commissioner
or to any loan or forbearance insured or guaranteed pursuant to the
provisions of an act of congress entitled "Servicemen's Readjustment Act
of 1944", or to the extent the provisions of this section are inconsist-
ent with any other federal law or regulation.
[3] 4. If any provision of this section, or the application of such
provision to any individual, company, corporation, or circumstance,
shall be held invalid, the remainder of this section, and the applica-
tion of such section to individuals, companies, corporations, or circum-
stances other than those to which it is held invalid, shall not be
affected thereby.
S 22. Section 9001-a of the banking law, as added by chapter 321 of
the laws of 1992, subdivisions (a) and (b) as amended and subdivision
(d) as added by chapter 302 of the laws of 2003, is amended to read as
follows:
S 9001-a. Fingerprints. [(a)] 1. Notwithstanding any other provision
of law, every incorporator of a corporation shall, in addition to any
other requirements which may be imposed by the superintendent, submit
simultaneously with an application, his or her fingerprints in such form
and in such manner as specified by the division of criminal justice
services, but in any event, no less than two digit imprints. The super-
intendent shall submit the fingerprints to the division of criminal
justice services for the purpose of conducting a criminal history search
and returning a report thereon in accordance with the procedures and
requirements established by the division pursuant to the provisions of
article thirty-five of the executive law, which shall include the
payment of the prescribed processing fees. The superintendent shall
request that the division submit such fingerprints to the federal bureau
of investigation, together with the processing fees prescribed by such
bureau, for the purpose of conducting a criminal history search and
returning a report thereon.
[(b)] 2. The superintendent [shall] MAY also, concurrent with an
investigation of an incorporator of a corporation pertaining to a
violation of this chapter, submit such fingerprints to the division of
criminal justice services for the purpose of conducting a criminal
history search and returning a report thereon and through the division
to the federal bureau of investigation for the purpose of a fingerprint
check of such incorporator.
[(c)] 3. For purposes of this section, ["incorporator"] "APPLICANT"
SHALL INCLUDE AN INCORPORATOR AND shall include a natural person or such
principal, officer, director, trustee or stockholder of any other entity
as may be designated by the superintendent. Notwithstanding any other
provision of this article, the superintendent shall not access criminal
history data or information, unless any agency from which the super-
intendent receives directly criminal history data or information has
S. 5463 15
entered into a use and dissemination agreement with the superintendent
consistent with the provisions of this section.
[(d)] 4. An applicant shall not be required to submit his or her fing-
erprints as required by subdivision [(a)] ONE of this section if such
applicant (i) is already subject to regulation by the department and the
applicant has submitted such fingerprints to the department, such fing-
erprints have been submitted to the division of criminal justice
services for the purpose of conducting a criminal history search, and a
report of such search has been received by the department from such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a federal bank regulatory agency and has submitted such fingerprints to
such agency which has had a criminal history search conducted of such
individual and has shared such information or its determination result-
ing from such search with the department WITHIN THE PAST FIVE YEARS; or
(iii) is an officer or stockholder of a corporation whose common or
preferred stock is registered on a national securities exchange, as
provided in an act of congress of the United States entitled the "Secu-
rities Exchange Act of 1934", [approved June sixth, nineteen hundred
thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints to such exchange or market system which has had a criminal
history search conducted of such individual and has shared such informa-
tion or its determination resulting from such search with the department
WITHIN THE PAST FIVE YEARS; provided, however, that the superintendent
may subsequently require such applicant to submit such fingerprints if
the superintendent has a reasonable basis for updating the information
or determination resulting from the report of the criminal history
search conducted at the request of such federal banking agency, exchange
or market system.
5. WHENEVER AN INCORPORATOR HAS TIMELY FILED HIS OR HER FINGERPRINTS
AS REQUIRED BY THIS SECTION, BUT: (I) THE SUPERINTENDENT HAS NOT
RECEIVED A REPORT OF THE RESULTS OF A RELATED CRIMINAL HISTORY SEARCH;
(II) THE CIRCUMSTANCES WARRANT AN EXPEDITIOUS DETERMINATION; AND (III)
THE SUPERINTENDENT DETERMINES, AFTER CONSIDERING ALL AVAILABLE INFORMA-
TION, THAT THE REMAINING INCORPORATORS HAVE THE CHARACTER, RESPONSIBIL-
ITY AND GENERAL FITNESS SO AS TO WARRANT BELIEF THAT, EVEN IF SUCH
PERSON WERE NOT TO SERVE AS AN INCORPORATOR, SUCH BUSINESS WILL BE
HONESTLY AND EFFICIENTLY OPERATED, THE SUPERINTENDENT MAY WAIVE THE
REQUIREMENT FOR RECEIPT OF SUCH REPORT PRIOR TO APPROVAL, SUBJECT TO
THERE BEING AN ADEQUATE NUMBER OF OTHER INCORPORATORS TO SATISFY THE
REQUIREMENTS OF THIS CHAPTER AND RECEIPT FROM SUCH INCORPORATOR OF HIS
OR HER WRITTEN AGREEMENT TO RESIGN IMMEDIATELY FROM ALL POSITIONS HELD
WITH SUCH ENTITY IF SUCH REPORT DEMONSTRATES, IN THE SOLE DISCRETION OF
THE SUPERINTENDENT, THAT THE INCORPORATOR LACKS THE NECESSARY CHARACTER,
RESPONSIBILITY AND FITNESS.
S 23. Section 128 of the banking law, as amended by chapter 24 of the
laws of 1958, is amended to read as follows:
S 128. Preservation of books and records. Every bank and every trust
company shall preserve all its records of final entry[, including cards
used under the card system and deposit tickets,] for a period of at
least six years from the date of making the same or from the date of the
last entry thereon[; provided, however, that preservation of photograph-
ic reproductions thereof or records in photographic form shall consti-
tute compliance with the requirements of this section] BY ANY MANNER
PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER. Notwithstanding the
foregoing, the [banking board] SUPERINTENDENT may prescribe by regu-
S. 5463 16
lation such period of time longer or shorter than six years during which
all records kept by banks and trust companies as fiduciary shall be
preserved in original form.
S 24. Subdivision 3 of section 175 of the banking law, as amended by
chapter 369 of the laws of 1955, is amended to read as follows:
3. Every private banker shall preserve all [his] records of final
entry[, including cards used under the card system and deposit tickets,]
for a period of at least six years from the date of making the same or
from the date of the last entry thereon[; provided, however, that pres-
ervation of photographic reproduction thereof or records in photographic
form shall constitute compliance with the requirements of this section]
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 25. Section 200-c of the banking law, as added by chapter 496 of the
laws of 1993, is amended to read as follows:
S 200-c. Maintenance of books, accounts and records. Every foreign
banking corporation licensed pursuant to this chapter to maintain one or
more branches, agencies or representative offices in this state shall
maintain or make available at any such branch, agency or representative
office appropriate books, accounts and records reflecting (i) all trans-
actions effected by or on behalf of the branch, agency or representative
office and (ii) all actions taken in this state by employees of the
foreign banking corporation located in this state to effect transactions
on behalf of any office of such foreign banking corporation located
outside this state. SUCH RECORDS SHALL BE PRESERVED FOR A PERIOD OF AT
LEAST SIX YEARS AND SHALL BE PRESERVED BY ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 26. Section 221-h of the banking law, as added by chapter 493 of the
laws of 1979, is amended to read as follows:
S 221-h. Licensee's books and records; reports. A foreign banking
corporation licensed pursuant to this article shall [keep] CREATE or
cause each of its representatives to [keep] CREATE and use such books,
accounts and records as will enable the superintendent to determine
whether the representative is complying with the provisions of this
article and with the rules and regulations lawfully made by the super-
intendent. Such books, accounts and records shall be preserved for at
least three years[; provided however, that preservation by photographic
reproduction thereof or records in photographic form shall constitute
compliance with the requirements of this section] BY ANY MANNER PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
The superintendent may require such regular or special reports as may
be deemed necessary to the proper supervision of licensees under this
article. Such additional reports shall be in the form prescribed by the
superintendent and shall be subscribed and affirmed as true under the
penalties of perjury.
S 27. Section 239-a of the banking law, as added by chapter 164 of the
laws of 2002, is amended to read as follows:
S 239-a. Preservation of books and records. Every savings bank shall
preserve all its records of final entry[, including cards used under the
card system and deposit tickets,] for a period of at least six years
from the date of making the same or from the date of the last entry
thereon[; provided, however, that preservation of photographic reprod-
uctions thereof or records in photographic form shall constitute compli-
ance with the requirements of this section] BY ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER. Notwithstanding the foregoing,
the [banking board] SUPERINTENDENT may prescribe by regulation such
S. 5463 17
period of time longer or shorter than six years during which all records
kept by saving banks as fiduciary shall be preserved in original form.
S 28. Section 320 of the banking law, as amended by section 29 of part
O of chapter 59 of the laws of 2006, is amended to read as follows:
S 320. Books and records. EVERY SAFE DEPOSIT COMPANY SHALL CREATE
SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTENDENT TO
DETERMINE WHETHER SUCH COMPANY IS COMPLYING WITH THE PROVISIONS OF THIS
ARTICLE AND WITH THE RULES AND REGULATIONS ADOPTED BY THE SUPERINTENDENT
APPLICABLE TO SAFE DEPOSIT COMPANIES, AND SHALL PRESERVE SUCH BOOKS,
ACCOUNTS AND RECORDS FOR A PERIOD OF AT LEAST TWO YEARS FROM THE DATE OF
CREATING THE SAME OR SUCH OTHER PERIOD AS MAY BE ESTABLISHED BY THE
SUPERINTENDENT, INCLUDING PRESERVATION IN ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER. Every safe deposit company shall
conform its methods of keeping its books and records to such orders in
respect thereto as shall have been made and promulgated by the super-
intendent pursuant to the provisions of article two of this chapter. Any
safe deposit company that refuses or neglects to obey such order shall
be subject to a penalty of an amount as determined pursuant to section
forty-four of this chapter for each day it so refuses or neglects.
S 29. The opening paragraph of section 349 of the banking law, as
amended by chapter 499 of the laws of 1995, is amended to read as
follows:
The licensee shall [keep] CREATE and use in its business such books,
accounts, and records as will enable the superintendent to determine
whether such licensee is complying with the provisions of this article
and with the rules and regulations lawfully made by the superintendent
hereunder. Every licensee shall preserve such books, accounts, and
records[, including cards used in the card system, if any,] for at least
two years after making the final entry on any loan recorded therein.
[Preservation of photographic reproduction thereof or records in photo-
graphic form, including an optical disk storage system and the use of
electronic data processing equipment that provides comparable records to
those otherwise required and which are available for examination upon
request shall constitute compliance with the requirements of this
section] SUCH RECORDS SHALL BE PRESERVED BY ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 30. Subdivision 5 of section 372 of the banking law, as amended by
chapter 151 of the laws of 1945 and as renumbered by chapter 263 of the
laws of 1983, is amended to read as follows:
5. Each licensee shall [keep] CREATE and use in its business such
books, accounts, and records as [the superintendent may require to carry
into effect] WILL ENABLE THE SUPERINTENDENT TO DETERMINE WHETHER SUCH
LICENSEE IS COMPLYING WITH the provisions of this article and the rules
and regulations made by the superintendent hereunder. Every licensee
shall preserve such books, accounts and records for at least two years
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 31. Section 378-d of the banking law, as added by chapter 164 of the
laws of 2002, is amended to read as follows:
S 378-d. Preservation of books and records. Every savings and loan
association shall preserve all its records of final entry[, including
cards used under the card system and deposit tickets,] for a period of
at least six years from the date of making the same or from the date of
the last entry thereon[; provided, however, that preservation of photo-
graphic reproductions thereof or records in photographic form shall
constitute compliance with the requirements of this section] BY ANY
MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER. Notwithstand-
S. 5463 18
ing the foregoing, the [banking board] SUPERINTENDENT may prescribe by
regulation such period of time longer or shorter than six years during
which all records kept by savings and loan associations as fiduciary
shall be preserved in original form.
S 32. Subdivision 2 of section 485 of the banking law, as added by
chapter 608 of the laws of 1996, is amended to read as follows:
2. Every credit union shall preserve all of its records of [original
and] final entry[, including cancelled checks, withdrawal slips and
deposit tickets,] for a period of at least six years from the date of
making same or from the date of the last entry thereon[; provided,
however, that preservation of photographic reproduction thereof or
records in photographic form shall constitute compliance with the
requirements of this section] BY ANY MANNER PERMITTED BY SECTION THIR-
TY-SIX-B OF THIS CHAPTER.
S 33. The banking law is amended by adding a new section 498-c to read
as follows:
S 498-C. BOOKS AND RECORDS. EVERY LICENSEE SHALL CREATE SUCH BOOKS,
ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTENDENT TO DETERMINE
WHETHER SUCH LICENSEE IS COMPLYING WITH THE PROVISIONS OF THIS ARTICLE
AND WITH THE RULES AND REGULATIONS ADOPTED BY THE SUPERINTENDENT APPLI-
CABLE TO LICENSEES, AND SHALL PRESERVE SUCH BOOKS, ACCOUNTS AND RECORDS
FOR A PERIOD OF AT LEAST TWO YEARS FROM THE DATE OF CREATING THE SAME OR
SUCH OTHER PERIOD AS MAY BE ESTABLISHED BY THE SUPERINTENDENT, INCLUDING
PRESERVATION IN ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS
CHAPTER.
S 34. Section 515 of the banking law, as amended by chapter 369 of the
laws of 1955, is amended to read as follows:
S 515. Preservation of records of investment company. Every investment
company shall preserve all its records of final entry[, including cards
used under the card system and deposit tickets,] for a period of at
least six years from the date of making the same or from the date of the
last entry thereon[; provided, however, that preservation of photograph-
ic reproduction thereof or records in photographic form shall constitute
compliance with the requirements of this section] BY ANY MANNER PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 35. Subdivision 1 of section 565 of the banking law, as added by
chapter 488 of the laws of 1960, is amended to read as follows:
1. The licensee shall [keep] CREATE and use in his OR HER business
such books, accounts and records as will enable the superintendent to
determine whether such licensee is complying with the provisions of this
article and with the rules and regulations lawfully made by the super-
intendent hereunder. Every licensee shall preserve such books, accounts
and records[, including cards used in a card system, if any,] for at
least six years after making the final entry in respect to any premium
finance agreement recorded therein[; provided, however, the preservation
of photographic reproductions thereof or records in photographic form
shall constitute compliance with this requirement] BY ANY MANNER PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 36. Subdivision 1 of section 586 of the banking law, as added by
chapter 448 of the laws of 1975, is amended to read as follows:
1. The licensee shall [keep] CREATE and use in its business such
books, accounts, and records as will enable the superintendent to deter-
mine whether such licensee is complying with the provisions of this
article and with the rules and regulations lawfully made by the super-
intendent hereunder. Every licensee shall preserve such books, accounts,
and records, for at least three years[; provided, however, that preser-
S. 5463 19
vation by photographic reproduction thereof or records in photographic
form shall constitute compliance with the requirements of this section]
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
S 37. The opening paragraph of section 597 of the banking law, as
separately amended by chapters 315 and 472 of the laws of 2008, is
amended to read as follows:
Each licensee, servicer, registrant and exempt organization shall
[keep] CREATE and use in its business such books, accounts and records
as will enable the superintendent to determine whether such licensee,
servicer, registrant or exempt organization is complying with the
provisions of this article and with the rules and regulations lawfully
made by the superintendent [and the banking board]. Every licensee,
servicer, registrant and exempt organization shall preserve such books,
accounts, and records, for at least [three] SIX years[; provided, howev-
er, that preservation by photographic reproduction thereof or records in
photographic form, including an optical disk storage system and the use
of electronic data processing equipment that provides comparable records
to those otherwise required] BY ANY MANNER PERMITTED BY SECTION THIRTY-
SIX-B OF THIS CHAPTER and which are available for examination upon
request shall constitute compliance with the requirements of this
section.
S 38. Section 651-b of the banking law, as added by chapter 374 of the
laws of 1979, is amended to read as follows:
S 651-b. Maintenance of books and records by MONEY TRANSMITTERS AND
agents. Each licensee shall MAKE AND KEEP, AND SHALL require of each of
its agents to make and keep, IN ANY MANNER PERMITTED BY SECTION THIRTY-
SIX-B OF THIS CHAPTER, such accounts, correspondence, memoranda, papers,
books and other records as the superintendent by regulation or order
requires. All records so required shall be preserved for the time speci-
fied by the regulation or order of the superintendent.
S 39. This act shall take effect immediately; provided that section
twenty-one of this act shall only apply to loans made after the effec-
tive date of this act; provided further that sections twenty-eight and
thirty-three of this act shall take effect on the sixtieth day after
this act shall have become a law.