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This entry was published on 2020-04-10
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Credit needs of local communities
§ 28-b. Credit needs of local communities. 1. Each banking institution
as defined in subdivision four of this section to which the Community
Reinvestment Act of 1977, United States P.L. 95-128, applies shall file
with the superintendent a copy of each report and document which it is
required to prepare for or file with one or more federal agencies
pursuant to the provisions of that law and the rules and regulations
promulgated thereunder. Where a banking institution has filed such
reports or documents with the superintendent, an update of the reports
or documents shall be required at such time as the banking institution
requests the superintendent to take any action on any application to
which the provisions of subdivision three of this section apply.

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
superintendent 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
neighborhoods 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 subdivision ten of section thirty-six of this chapter. In
making such assessment the superintendent shall review all reports and
documents filed with him or her pursuant to subdivision one of this
section and any signed, written 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, and include in its written
assessment required by this section the record of performance of such
banking institution as to each of the following factors:

(1) Activities conducted by the banking institution to ascertain
credit needs of its community, including the extent of the banking
institution'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

(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

(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
within its community or the purchase of such loans originated in its

(10) The banking institution's participation in
governmentally-insured, guaranteed or subsidized loan programs for
housing, small businesses or small farms;

(11) The banking institution's ability to meet various community
credit 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
training 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
helping to meet the credit needs of its entire community, including,
without limitation, the banking institution's participation in credit
counseling services.

(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
application 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
subdivision, 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 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 maintaining 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. The superintendent is hereby authorized and empowered 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.

6. If any clause, sentence, paragraph, subdivision or part of this
section or the application thereof to any person, firm, or corporation,
or circumstance shall be adjudged by any court of competent jurisdiction
to be invalid or unconstitutional, such judgment shall not affect,
impair or invalidate the remainder thereof, but shall be confined (i) in
its operation to the clause, sentence, paragraph, subdivision, or part
of this section or (ii) in its application to the person, firm or
corporation, or circumstance, directly involved in the controversy in
which such judgment shall have been rendered.