|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Feb 03, 2014||recommit, enacting clause stricken|
|Jan 08, 2014||referred to banks|
|Jan 22, 2013||referred to banks|
senate Bill S2596
Archive: Last Bill Status - STRICKEN
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S2596 - Details
- Current Committee:
- Law Section:
- Banking Law
- Laws Affected:
- Add §100-e, Bank L
- Versions Introduced in 2011-2012 Legislative Session:
S2596 - Summary
Authorizes trust companies to make affiliated investments and to receive fiduciary compensation for making such investments.
S2596 - Sponsor Memo
BILL NUMBER:S2596 TITLE OF BILL: An act to amend the banking law, in relation to author- izing trust companies to make affiliated investments PURPOSE: This bill authorizes banks, trust companies, savings insti- tutions and credit unions to deal with an affiliate or an affiliated investment, just as they may currently with mutual funds and common trust funds, by investing the funds held in trusts that they administer in such affiliates or affiliated investments. SUMMARY OF PROVISIONS: Section One. Adds a new section 100-e to the Banking Law. New section 100-e has four subdivisions. Subdivision 1 contains five definitions, of affiliate, affiliated investment, fee or commission, investment, and trust company. Subdivision 2 authorizes trust companies to purchase, sell, hold, or otherwise deal with an affiliate or affiliated investments, including hedge funds, private equity vehicles and other nontraditional invest- ments already authorized under the Prudent Investor Act for trustees to invest in. It also makes clear that trust companies engaged in such investments, so long as they satisfy the conditions in subdivision 3, may receive their full trustee commissions.
S2596 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2596 2013-2014 Regular Sessions I N S E N A T E January 22, 2013 ___________ Introduced by Sen. GRIFFO -- 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 authorizing trust compa- nies to make affiliated investments 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 100-e to read as follows: S 100-E. AFFILIATED INVESTMENTS; TRANSACTIONS WITH AFFILIATES. 1. DEFINITIONS. AS USED IN THIS SECTION: (A) "AFFILIATE" MEANS ANY CORPORATION OR OTHER ENTITY THAT DIRECTLY OR INDIRECTLY THROUGH ONE OR MORE INTERMEDIARIES CONTROLS, IS CONTROLLED BY OR IS UNDER COMMON CONTROL WITH THE FIDUCIARY. (B) "AFFILIATED INVESTMENT" MEANS AN INVESTMENT FOR WHICH THE FIDUCI- ARY OR AN AFFILIATE OF THE FIDUCIARY ACTS AS ADVISER, ADMINISTRATOR, DISTRIBUTOR, PLACEMENT AGENT, UNDERWRITER, BROKER OR IN ANY OTHER CAPAC- ITY FOR WHICH IT RECEIVES OR HAS RECEIVED A FEE OR COMMISSION FROM SUCH INVESTMENT OR AN INVESTMENT ACQUIRED OR DISPOSED OF IN A TRANSACTION FOR WHICH THE FIDUCIARY OR AN AFFILIATE OF THE FIDUCIARY RECEIVES OR HAS RECEIVED A FEE OR COMMISSION. (C) "FEE OR COMMISSION" MEANS COMPENSATION PAID TO A FIDUCIARY OR AN AFFILIATE THEREOF ON ACCOUNT OF ITS SERVICES TO OR ON BEHALF OF AN INVESTMENT. (D) "INVESTMENT" MEANS ANY SECURITY AS DEFINED IN SECTION TWO OF THE FEDERAL SECURITIES ACT OF 1933, ANY CONTRACT OF SALE OF A COMMODITY FOR FUTURE DELIVERY WITHIN THE MEANING OF SECTION TWO OF THE FEDERAL COMMOD- ITY EXCHANGE ACT, OR ANY OTHER ASSET PERMITTED FOR FIDUCIARY ACCOUNTS PURSUANT TO SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF SECTION 11-2.3 OF THE ESTATES, POWERS AND TRUSTS LAW OR BY THE TERMS OF THE GOVERNING INSTRU- MENT, INCLUDING, BUT NOT LIMITED TO, SHARES OR INTERESTS IN A PRIVATE INVESTMENT FUND (INCLUDING A PRIVATE INVESTMENT FUND ORGANIZED AS A EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07268-01-3
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