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SECTION 202-B
Maintenance of assets in this state
Banking (BNK) CHAPTER 2, ARTICLE 5
§ 202-b. Maintenance of assets in this state. * 1. Upon opening a
branch or agency and thereafter, a foreign banking corporation licensed
pursuant to article two of this chapter shall keep on deposit, in
accordance with such rules and regulations as the superintendent shall
adopt shall from time to time, with such banks or trust companies or
private bankers or national banks in the state of New York as such
foreign banking corporation may designate and the superintendent may
approve, interest-bearing stocks and bonds, notes, debentures, or other
obligations of the United States or any agency or instrumentality
thereof, or guaranteed by the United States, or of this state, or of a
city, county, town, village, school district, or instrumentality of this
state or guaranteed by this state, or dollar deposits, or obligations of
the International Bank for Reconstruction and Development, or
obligations issued by the Inter-American Development Bank, or
obligations of the Asian Development Bank, or obligations issued by the
African Development Bank, or obligations issued by the International
Finance Corporation, or bonds, notes, debentures, or other obligations
issued by or guaranteed by the Federal Home Loan Mortgage Corporation
(Freddie Mac) or by the Federal National Mortgage Corporation (Fannie
Mae), or bonds, notes, debentures, or other obligations issued by or
guaranteed by the Student Loan Marketing Association (SALLIE MAE) or all
bonds, notes, debentures, or other obligations issued by or guaranteed
by a federal home loan bank, or bonds, notes, debentures or other
obligations of any unaffiliated issuer provided that, at the time of
such investment, the obligation has received the highest rating of an
independent rating service designated by the superintendent or, if the
obligation is rated by more than one such service, the highest rating of
at least two such services, or such other assets as the superintendent
shall by rule or regulation permit, to an aggregate amount to be
determined by the superintendent, based upon principal amount or market
value, whichever is lower, in the case of the above-described
securities, and subject to such limitations as the superintendent shall
prescribe; provided, however, that the superintendent may determine, in
the superintendent's discretion, that any such bonds, notes, debentures
or other obligations of a particular issuer are not acceptable for
purposes of meeting the requirements of this subdivision. The
superintendent may from time to time require that the assets deposited
pursuant to this subdivision may be maintained by the foreign banking
corporation at such amount, in such form and subject to such conditions
as he or she shall deem necessary or desirable for the maintenance of a
sound financial condition, the protection of depositors and the public
interest, and to maintain public confidence in the business of such
branch or branches or such agency or agencies. The superintendent may
give credit to reserves required to be maintained with a federal reserve
bank in or outside the state of New York pursuant to federal law,
subject to such rules and regulations as the superintendent may from
time to time promulgate. So long as it shall continue business in the
ordinary course, such foreign banking corporation shall be permitted to
collect interest on the securities so deposited and from time to time
exchange, examine and compare such securities.

* NB Effective until notification of the superintendent of financial
services

* 1. Upon opening a branch or agency and thereafter, a foreign banking
corporation licensed pursuant to article two of this chapter shall keep
on deposit, in accordance with such rules and regulations as the
superintendent shall from time to time promulgate, with such banks or
trust companies or private bankers or national banks in the state of New
York as such foreign banking corporation may designate and the
superintendent may approve, interest-bearing stocks and bonds, notes,
debentures, or other obligations of the United States or any agency or
instrumentality thereof, or guaranteed by the United States, or of this
state, or of a city, county, town, village, school district, or
instrumentality of this state or guaranteed by this state, or dollar
deposits, or obligations of the International Bank for Reconstruction
and Development, or obligations issued by the Inter-American Development
Bank, or obligations of the Asian Development Bank, or obligations
issued by the African Development Bank, or obligations issued by the
International Finance Corporation, or bonds, notes, debentures, or other
obligations issued by or guaranteed by the Federal Home Loan Mortgage
Corporation (Freddie Mac) or by the Federal National Mortgage
Corporation (Fannie Mae), or bonds, notes, debentures, or other
obligations issued by or guaranteed by the Student Loan Marketing
Association (SALLIE MAE) or all bonds, notes, debentures, or other
obligations issued by or guaranteed by a federal home loan bank, or
bonds, notes, debentures or other obligations of any unaffiliated issuer
that meet the standards of creditworthiness established by regulation by
the superintendent, or such other assets as the superintendent shall by
rule or regulation permit, to an aggregate amount to be determined by
the superintendent, based upon principal amount or market value,
whichever is lower, in the case of the above-described securities, and
subject to such limitations as he or she shall prescribe; provided,
however, that the superintendent may determine, in his or her
discretion, that any such bonds, notes, debentures or other obligations
of a particular issuer are not acceptable for purposes of meeting the
requirements of this subdivision. The superintendent may from time to
time require that the assets deposited pursuant to this subdivision may
be maintained by the foreign banking corporation at such amount, in such
form and subject to such conditions as he or she shall deem necessary or
desirable for the maintenance of a sound financial condition, the
protection of depositors and the public interest, and to maintain public
confidence in the business of such branch or branches or such agency or
agencies. The superintendent may give credit to reserves required to be
maintained with a federal reserve bank in or outside the state of New
York pursuant to federal law, subject to such rules and regulations as
the superintendent may from time to time promulgate. So long as it shall
continue business in the ordinary course, such foreign banking
corporation shall be permitted to collect interest on the securities so
deposited and from time to time exchange, examine and compare such
securities.

* NB Effective upon notification of the superintendent of financial
services

2. Each foreign banking corporation shall hold in this state currency,
bonds, notes, debentures, drafts, bills of exchange or other evidences
of indebtedness, including loan participation agreements or
certificates, or other obligations payable in the United States or in
United States funds or, with the prior approval of the superintendent,
in funds freely convertible into United States funds, or such other
assets as the superintendent shall by rule or regulation permit, in an
amount which shall bear such relationship as the superintendent shall by
regulation prescribe to liabilities of such foreign banking corporation
appearing in the books, accounts or records of its agency, agencies,
branch or branches in this state as liabilities of such agency,
agencies, branch or branches, including acceptances and such other
liabilities (including contingent liabilities) as the superintendent
shall determine, but excluding amounts due and other liabilities to
other offices, agencies or branches of, and affiliates of, such foreign
banking corporation. As used in this subdivision, (i) "affiliate" shall
mean any person or entity, or group of persons or entities acting in
concert, that controls, is controlled by or is under common control with
such foreign banking corporation and (ii) "control" means any person, or
group of persons acting in concert, directly or indirectly, owning,
controlling or holding with power to vote, more than fifty percent of
the voting stock of a company, or having the ability in any manner to
elect a majority of the directors of a company, or otherwise exercising
a controlling influence over the management and policies of a company as
defined by the superintendent by regulation. For purposes of this
subdivision, the term "person" shall mean a corporation, unincorporated
association, partnership, or any other entity or individual. For the
purposes of this subdivision, the superintendent shall value marketable
securities at principal amount or market value, whichever is lower,
shall have the right to determine the value of any non-marketable bond,
note, debenture, draft, bill of exchange, other evidence of
indebtedness, including loan participation agreements or certificates,
or of any other asset or obligation held by or owed to the foreign
banking corporation or its agency, agencies, branch or branches within
the state, and in determining the amount of assets for the purpose of
computing the above ratio of assets to liabilities, shall have the power
to exclude in whole or in part any particular asset. If, by reason of
the existence or the potential occurrence of unusual and extraordinary
circumstances, the superintendent deems it necessary or desirable for
the maintenance of a sound financial condition, the protection of
depositors, creditors and the public interest, and to maintain public
confidence in the business of the agency, agencies, branch or branches
of a foreign banking corporation, the superintendent may, subject to
such terms and conditions as the superintendent may prescribe, require
such foreign banking corporation to deposit the assets required to be
held in this state pursuant to this subdivision two with such banks or
trust companies or private bankers or national banks located in this
state, as the superintendent may designate.

3. In the event that any of the deposits received within the state by
a foreign banking corporation are insured by the Federal Deposit
Insurance Corporation, the superintendent shall specify what reasonable
percentage of deposit liabilities may be excluded in determining the
aggregate amount of liabilities of such foreign banking corporation for
deposits received within the state for purposes of subdivision two of
this section by reason of the fact that all or a part of such deposit
liabilities are insured by the Federal Deposit Insurance Corporation.