S T A T E   O F   N E W   Y O R K
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                                   7964
 
                             I N  S E N A T E
 
                              March 13, 2018
                                ___________
 
 Introduced  by Sen. HAMILTON -- 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 assessment of the record
   of performance of banking institutions in helping to meet  the  credit
   needs of local communities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 3 and 4 of section 28-b of  the  banking  law,
 subdivision 3 as amended by chapter 315 of the laws of 2008, the opening
 paragraph  and paragraph 12 of paragraph (a) of subdivision 3 as amended
 by chapter 227 of the laws of 2013 and subdivision 4 as amended by chap-
 ter 180 of the laws of 2012, are amended and a new  subdivision  5-a  is
 added to read as follows:
   3.  (a)  When  taking any action on an application or notice made by a
 banking institution under (i) section  one  hundred  five,  two  hundred
 twenty-four,  two  hundred  forty,  or  three hundred ninety-six of this
 chapter for a branch office, (ii) section one hundred ninety-one of this
 chapter for a public accommodation office,  (iii)  section  six  hundred
 one-b of this chapter for approval of a merger or purchase of assets, or
 (iv)  under  section  one  hundred  five-a, two hundred forty-a or three
 hundred ninety-six-a of this chapter for the use or installation  of  an
 automated  teller  machine, point-of-sale terminal or similar electronic
 facility or on any other application or notice to which the  superinten-
 dent  of  financial services shall by rule or regulation make applicable
 the provisions of this  section,  the  superintendent  shall  take  into
 account,  among  other factors, an assessment, in writing, of the record
 of performance of the banking institution in helping to meet the  credit
 needs  of its entire community, including low and moderate-income neigh-
 borhoods AND MINORITY- AND WOMEN-OWNED BUSINESSES, consistent with  safe
 and  sound operation of the banking institution. Such assessment and any
 written communications from the department of financial  services  to  a
 banking  institution relating to such assessment shall be made available
 to the public upon request, provided  that  nothing  contained  in  this
 subdivision  shall be deemed to alter, amend or affect the provisions of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15042-02-8

 S. 7964                             2
 
 subdivision ten of section thirty-six of this chapter.  In  making  such
 assessment  the  superintendent  shall  review all reports and documents
 filed pursuant to subdivision one of this section and any signed,  writ-
 ten comments received by the superintendent which specifically relate to
 the  banking  institution's  performance  in  helping to meet the credit
 needs of its community. In addition, the superintendent  shall  consider
 the  following  factors  in  assessing a banking institution's record of
 performance:
   (1) Activities conducted by the banking institution to ascertain cred-
 it needs of its community, including the extent of  the  banking  insti-
 tution's  efforts to communicate with members of its community regarding
 the credit services being provided by the banking institution;
   (2) The extent of the  banking  institution's  marketing  and  special
 credit-related  programs  to  make members of the community aware of the
 credit services offered by the banking institution;
   (3) The extent of participation by the banking institution's board  of
 directors  or board of trustees in formulating the banking institution's
 policies and reviewing its performance with respect to the  purposes  of
 the Community Reinvestment Act of 1977;
   (4)  Any  practices  intended  to  discourage application for types of
 credit set forth in the banking institution's Community Reinvestment Act
 Statement(s);
   (5) The geographic distribution of the  banking  institution's  credit
 extensions, credit applications and credit denials;
   (6)  Evidence  of  prohibited  discriminatory  or other illegal credit
 practices;
   (7) The banking institution's record of opening  and  closing  offices
 and providing services at offices;
   (8) The banking institution's participation, including investments, in
 local  community  development and redevelopment projects or programs AND
 IN TECHNICAL ASSISTANCE PROGRAMS FOR SMALL BUSINESSES AND MINORITY-  AND
 WOMEN-OWNED BUSINESSES;
   (9)  The  banking  institution's  origination  of residential mortgage
 loans, housing rehabilitation loans, home improvement  loans  and  small
 business or small farm OR MINORITY- AND WOMEN-OWNED BUSINESS loans with-
 in  its community or the purchase of such loans originated in its commu-
 nity;
   (9-A) THE BANKING INSTITUTION'S EFFORTS TO  ASSIST  LOW  AND  MODERATE
 INCOME  RESIDENTS  TO  BE  ABLE TO REMAIN IN AFFORDABLE HOUSING IN THEIR
 NEIGHBORHOODS;
   (10) The banking  institution's  participation  in  governmentally-in-
 sured,  guaranteed  or subsidized loan programs for housing, small busi-
 nesses or small farms;
   (11) The banking institution's ability to meet various community cred-
 it needs based on its  financial  condition,  size,  legal  impediments,
 local economic condition and other factors;
   (11-a)  The geographic distribution, availability and use of automated
 teller machines, point-of-sale  terminals,  personal  computer  banking,
 debit cards or similar electronic facilities or services; and any train-
 ing  of customers thereon among every branch of the banking institution,
 if the institution offers such services to any of its customers; and
   (12) Other factors  that,  in  the  judgment  of  the  superintendent,
 reasonably  bear upon the extent to which a banking institution is help-
 ing to meet the credit needs of its entire community, including, without
 limitation, the banking institution's participation in credit counseling
 services.

 S. 7964                             3
 
   (b) In assessing the record of performance of  a  banking  institution
 pursuant  to  the  provisions  of paragraph (a) of this subdivision, the
 superintendent may, where he or she deems it  appropriate,  provide  for
 public  hearings when an objection to the banking institution's applica-
 tion or notification has been submitted.
   (c)  An  assessment  of  a banking institution's record of performance
 under paragraph (a) of this subdivision may be the basis for denying  an
 application or notice under the provisions of this section.
   (d)  When taking any action pursuant to paragraph (a) of this subdivi-
 sion, the superintendent shall request from the applicant or  notificant
 banking  institution  and  from  the appropriate federal bank regulatory
 authorities any documents, other than those required to  be  filed  with
 the  superintendent  by  this section or by other applicable statutes or
 regulations, which are  (1)  filed  with  the  federal  bank  regulatory
 authorities in connection with the application or notice or (2) produced
 by  the  applicant  or  notificant  banking  institution  or  others  in
 connection with the application or notice.
   4. Notwithstanding any other provision of this chapter or other law to
 the contrary, the term banking institution when  used  in  this  section
 shall  mean  and  include  all  banks,  trust  companies, savings banks,
 savings and loan associations, credit unions, LICENSED MORTGAGE  BANKERS
 OR  LICENSE MORTGAGE LOAN ORIGINATORS THAT HAVE MADE ONE HUNDRED OR MORE
 HOME MORTGAGE LOANS IN NEW YORK STATE IN THE LAST CALENDAR YEAR, INVEST-
 MENT BANKS and foreign  banking  corporations  incorporated,  chartered,
 organized  or  licensed  under  the laws of this state. In the case of a
 foreign banking corporation licensed pursuant to this article and  main-
 taining  a  branch  in  this  state,  the management of the branch shall
 establish a committee of not fewer than three officers  to  function  in
 the role of a board of directors for purposes of this section.
   5-A. IN ADDITION TO THE PUBLIC NOTICE REQUIRED UNDER FEDERAL CRA, EACH
 BANK  SHALL  PROVIDE  IN THE PUBLIC LOBBY OF ITS MAIN OFFICE AND EACH OF
 ITS BRANCHES IN THIS STATE A PUBLIC NOTICE SUBSTANTIALLY SIMILAR TO  THE
 FOLLOWING:
                             STATE OF NEW YORK
                       COMMUNITY REINVESTMENT NOTICE
   THE BANKING SUPERINTENDENT EVALUATES OUR RECORD OF HELPING TO MEET THE
 CREDIT  NEEDS  OF  THIS  COMMUNITY  CONSISTENT WITH SAFE AND SOUND OPER-
 ATIONS. THE BANKING SUPERINTENDENT ALSO TAKES THIS RECORD  INTO  ACCOUNT
 WHEN DECIDING ON CERTAIN APPLICATIONS SUBMITTED BY US.
   YOUR INVOLVEMENT IS ENCOURAGED.
   IN  ADDITION TO THE INFORMATION THAT YOU ARE ENTITLED TO RECEIVE UNDER
 THE FEDERAL COMMUNITY REINVESTMENT ACT,  AS  LISTED  IN  THE  "COMMUNITY
 REINVESTMENT  ACT NOTICE" POSTED IN THIS LOBBY, YOU MAY REVIEW TODAY THE
 PUBLIC SECTION OF OUR MOST  RECENT  COMMUNITY  REINVESTMENT  PERFORMANCE
 EVALUATION PREPARED BY THE SUPERINTENDENT.
   YOU MAY SEND WRITTEN COMMENTS ABOUT OUR PERFORMANCE IN HELPING TO MEET
 COMMUNITY  CREDIT  NEEDS  TO  THE SUPERINTENDENT (ADDRESS). YOUR LETTER,
 TOGETHER WITH ANY RESPONSE BY US, WILL BE CONSIDERED BY THE  SUPERINTEN-
 DENT  IN  EVALUATING  OUR  COMMUNITY REINVESTMENT PERFORMANCE AND MAY BE
 MADE PUBLIC.
   YOU MAY ASK TO LOOK AT ANY COMMENTS RECEIVED BY THE SUPERINTENDENT.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment  and/or repeal of any rules or regulations necessary for the imple-
 mentation of the foregoing section of this act on its effective date are
 authorized to be made on or before such effective date.