New York Banking Law

Article 2
Banking Department; Superintendent of Banks; supervisory and regulatory powers.

         Section  
         10.   Declaration of policy.
         11.   Banking department; official documents; destruction of
                 documents; official communications.
         12.   Superintendent of banks; acting superintendent;
                 discretion.
         13.   Banking board.
         14.   Powers of the banking board.
         14-a. Rate of interest; banking board to adopt regulations.
         14-b. Power of the banking board to prescribe minimum rate of
                 interest on mortgage escrow accounts.
         14-c. Power of the banking board to prescribe criteria for
                 disclosure of information on savings and time accounts.
         14-d. Power of the banking board to prescribe a reasonable
                 period of time permitting the drawing on items received
                 for deposit in a customer`s account.
         14-e. Power of the banking board to authorize the operation of
                 savings banks and savings and loan associations in
                 stock form.
         14-f. Power of the banking board to require the provision of
                 basic banking services.
         14-g. Power of the banking board to authorize banks or trust
                 companies to exercise the rights of national banks.
         14-h. Power of the banking board to authorize savings banks and
                 savings and loan associations to exercise the rights of
                 federal savings associations and the insurance powers
                 of national banks.
         15.   Deputies, clerks, examiners, special agents and other
                 employees; appointment; compensation; oath of office;
                 bonds; powers of deputies.
         16.   Restrictions on officers and employees of the department;
                 penalty.
         17.   Expenses of department; assessments.
         18.   Fees for copies and certifications.
         19.   Assessments for deficiency in reserves against deposits.
         20.   Assessments, penalties and forfeitures entitled to
                 priority.
         21.   Collection of assessments, penalties and forfeitures;
                 proceedings by attorney-general.
         22.   Fingerprints.
         23.   Acceptance or rejection of certificate; investigation
                 fees.
         24.   Investigation by superintendent; refusal or approval;
                 filing certificate.
         25.   Authorization certificate; when and to whom issued;
                 contents; filing and recording.
         25-a  Authority of superintendent to file organization
                 certificate and issue authorization certificate under
                 certain conditions.
         26.   Licenses to foreign banking corporations; renewal.
         27.   Exchange and examination of securities.
         28.   Change of location; change of designation of principal
                 office; approval or refusal; certificate.
         28-a. Temporary change of location; approval or refusal;
                 certificate.
         28-b. Credit needs of local communities.
         28-c. Branch office closings; report to and action by the
                 superintendent.
         29.   Branch offices; public accommodation offices; approval or
                 refusal; certificate; investigation fee.
         30.   Unclaimed amounts; deposit by superintendent in trust;
                 preference; release of debtor.
         31.   Index of persons entitled to unclaimed amounts; payment
                 to persons entitled; deduction of service charge.
         32.   Insurance of deposits and share accounts.
         33.   Reserve depositaries.
         34.   Superintendent as attorney to accept service of process.
         36.   Examinations; right of inspection; penalties for refusing
                 to permit examination.
         36-a. Reports of lending by banking organizations.
         37.   Reports to superintendent.
         38.   Power of subpoena.
         39.   Orders of superintendent.
         40.   Revocation of authorization certificate or license or
                 suspension of activities in certain cases.
         41.   Removal of director, trustee or officer.
         42.   Official acts of superintendent and details of department
                 business to be made public.
         43.   Annual report of superintendent.
         44.   Violations; penalties.
         45.   Export finance awareness program.
         46.   Export finance awareness advisory board.

  S 10. Declaration of policy. It is hereby declared to be the policy of
the state of New York that the business of all banking organizations
shall be supervised and regulated through the banking department in such
manner as to insure the safe and sound conduct of such business, to
conserve their assets, to prevent hoarding of money, to eliminate
unsound and destructive competition among such banking organizations and
thus to maintain public confidence in such business and protect the
public interest and the interests of depositors, creditors, shareholders
and stockholders.

  S 11. Banking department; official documents; destruction of
documents; official communications. 1. The banking department shall be
charged with the execution of the laws relating to the individuals,
partnerships and corporations to which this chapter is applicable and
shall exercise such powers and perform such duties as are conferred and
imposed upon it by this chapter or by any law of this state. The
principal office of the department shall be in the city of Albany.
  2. Every paper executed by an officer of the department in pursuance
of authority conferred by law and sealed with the official seal of the
department shall be received in evidence, and may be recorded in the
proper recording offices in the same manner and with the same effect as
a deed regularly acknowledged.
  3. (a) Except as specified in paragraph (b) or (c) of this
subdivision, any report expressly required to be rendered to the
superintendent under any provision of this chapter, any report of an
examination made in accordance with any provision of this chapter, and
any oath or declaration of office received by the department shall be
retained in such form and for such period as the superintendent finds
necessary and proper. After such period the superintendent shall
recommend disposal of such material in accordance with the provisions of
the arts and cultural affairs law.
  (b) Reports made in accordance with section twenty-eight-b of this
chapter or pursuant to the rules and regulations of the banking board
promulgated in connection with assessing a banking organization`s record
of performance in meeting the credit needs of local communities within
the meaning of section twenty-eight-b of this chapter, including reports
expressly required to be rendered to the superintendent and reports of
examinations may be destroyed at the direction of the superintendent and
in accordance with the provisions of the arts and cultural affairs law
after three years from date of receipt thereof, provided any such report
has first been photographed, microphotographed or otherwise reproduced.
Each such reproduction shall be retained in the files of the department
for a period of at least fifteen years from the date of the last
received report, oath or declaration appearing thereon.  After the
expiration of such period, such reproduction may be destroyed at the
direction of the superintendent and in accordance with the provisions of
the arts and cultural affairs law. Such reproduction thereof shall be
deemed, for any purpose, the equivalent of the original of such report.
Any such report not so reproduced shall be retained in the files of the
department for a period of at least fifteen years from the date of
receipt thereof, after which it may be destroyed at the direction of the
superintendent and in accordance with the provisions of the arts and
cultural affairs law.
  (c) This subdivision shall not apply to any records, documents or
correspondence referred to in subdivision four of section six hundred
twenty-seven of this chapter.
  4. Any communication from the banking department to any partnership or
corporation may contain a direction that such communication shall be
presented to the members of such partnership or to the board of
directors or trustees of such corporation. A communication containing
such direction shall be for the purposes of this chapter an official
communication. The superintendent may, in his discretion, notify in
writing every member of such partnership and every director or trustee
of such corporation of the sending of such a communication and, in that
event the notification shall state the date of such communication.

  S 12. Superintendent of banks; acting superintendent; discretion. 1.
The superintendent of banks shall be the head of the banking department.
He shall be appointed by the governor, by and with the advice and
consent of the senate, and shall hold office until the end of the term
of the governor by whom he was appointed and until his successor is
appointed and has qualified. Within fifteen days from the time of notice
of his appointment, the superintendent shall take and subscribe the
constitutional oath of office.
  2. The superintendent may, in his discretion, designate one of his
deputies to act as superintendent during the superintendent`s absence or
inability to act. If the office of superintendent is vacant, or if the
superintendent`s absence or inability to act continues for a period of
more than thirty successive days, the governor may designate a deputy to
act as superintendent until the filling of the vacancy or the return or
recovery of the superintendent.
  3. Whenever in this chapter the superintendent is authorized but not
required to take any action or his approval is required as a condition
precedent to the doing of any act, the taking of such action and the
giving of such approval shall be within his sound discretion.  In taking
any action with respect to any banking organization, and in approving or
disapproving any application made by a banking organization, the
superintendent shall give due consideration to the policy of the state
of New York as declared in section ten of this chapter.

  S 13. Banking board. 1. There shall be in the banking department a
banking board which shall consist of seventeen members. The
superintendent shall be a member of the board and its chairman and
executive head. The other sixteen members shall be appointed by the
governor by and with the advice and consent of the senate. Each member,
other than the superintendent and the first person appointed to fill a
new membership on the board, shall serve for a term of three years from
the first day of March in the year in which he was appointed and until
his successor has been appointed and has qualified. Any member appointed
pursuant to the provisions of this section may be removed from office by
the governor whenever in his judgment the public interest may require.
In case of such removal the governor shall file with the department of
state a statement of the cause of such removal.
  2. Of the sixteen members other than the superintendent, eight shall
have had banking experience, and of these eight there shall be one
member whose banking experience shall have been gained in group one, one
in group two, one in group three, one in group four, one in group five,
one in group six, one in group seven, and one in group eight of the
following groups:
  Group one: banks, trust companies and private bankers located in the
city of New York and having total assets of one billion dollars or more
as shown by the last periodical reports of condition received by the
superintendent.
  Group two: banks, trust companies and private bankers located outside
the city of New York and having total assets of one hundred fifty
million dollars or more as shown by the last periodical reports of
condition received by the superintendent.
  Group three: banks, trust companies and private bankers other than
those in group one and group two.
  Group four: savings banks located in the city of New York and the
counties of Westchester, Rockland, Nassau and Suffolk.
  Group five: savings banks other than those in group four.
  Group six: savings and loan associations.
  Group seven: credit unions.
  Group eight: foreign banking corporations licensed pursuant to this
article to maintain a branch or agency in this state. Notwithstanding
any inconsistent provision of this chapter or any other law of this
state, the member whose banking experience shall have been gained in
this group shall be a resident of this state but need not be a citizen
of the United States.
  3. The board shall make rules to regulate the method of selecting
candidates for consideration by the governor to fill a vacancy in the
office of any of the eight members herein required to have banking
experience. Such rules and any amendments thereto shall be subject to
the approval of the governor.
  4. The members other than the superintendent shall receive no salary
but their expenses incurred in attending meetings shall be paid out of
the state treasury, on certificate of the superintendent, upon the audit
and warrant of the comptroller. The board shall make provision for the
holding of regular meetings. The board shall meet at any time on call by
the superintendent upon two days` notice.  The superintendent shall call
a meeting upon two days` notice upon the written request of any two
members. The board may by resolution provide for a shorter notice of
meeting. Any action which may be taken by the board at a meeting may be
taken by instrument in writing signed by all members of the board
without a meeting and any action so taken shall have the same force and
effect for all purposes as if taken at a meeting. Any number of copies
of any such instrument each bearing one or more signatures shall be
deemed a single instrument.  The board shall elect a secretary and such
other officers as it deems necessary. The secretary and other officers
so elected need not be members. The board shall cause a record of its
proceedings to be kept. For the purpose of considering questions before
it, the board shall have access to all books and papers in the
department including all reports and communications, and the members
shall treat such reports and communications as confidential.

  S 14. Powers of the banking board. 1. For the purpose of effectuating
the policy declared in section ten of this article, the banking board
shall have power, by a three-fifths vote of all its members, to make,
alter and amend rules and regulations not inconsistent with law. Such
rules and regulations shall be brought to the attention of those
affected thereby in a manner to be prescribed by the board. Without
limiting the foregoing power, resolutions or rules or regulations may be
so adopted for the following specific purposes:
  (a) To approve organization certificates, private bankers`
certificates and applications of foreign corporations for licenses to do
business in this state, submitted to it by the superintendent as
provided in this article.
  (b) To determine the purposes for which and the extent to which
capital notes or debentures shall be considered and treated as capital
stock of corporate banking organizations; but capital notes or
debentures shall not be considered or treated as capital stock for the
purposes of sections one hundred ten and one hundred eleven of this
chapter.
  (c) To grant permission to a trust company, including a national bank,
to establish one or more common trust funds upon application and after
inquiry concerning the qualifications of such trust company to maintain
and manage the same, and to regulate the conduct and management of any
common trust fund and for such purpose, but not by way of limitation of
the foregoing power, to prescribe (1) the records and accounts to be
kept of such common trust funds; (2) the procedure to be followed in
adding moneys to or withdrawing moneys or investments from any such
common trust fund; (3) the methods and standards to be employed in
determining the value of such common trust funds and of the assets and
investments thereof; (4) the maximum amount of moneys of any estate,
trust or fund which may be invested in any common trust fund; and (5)
the maximum proportionate share of any such common trust fund which may
be apportioned to any estate, trust or fund; and in connection with such
powers to classify the corporations maintaining such common trust funds
according to the population of the city, town or village in which the
principal offices of such corporations are respectively located and to
prescribe the minimum total of any such common trust fund and the
permissible limits of investment therein in accordance with such
classification.
  (cc) To approve the incorporation by or on behalf of trust companies
and national banks with trust powers of a mutual trust investment
company to form a medium for the common investment of funds held by
trust companies, including national banks, acting as executors,
administrators, guardians, inter-vivos or testamentary trustees or
committees or conservators either alone or with individual
co-fiduciaries, and any amendments of the certificate of incorporation
of such mutual trust investment company, and to regulate the conduct and
management of such mutual trust investment company and for such purpose,
but not by way of limitation of the foregoing power, to prescribe (1)
the records and accounts to be kept by such mutual trust investment
company; (2) the procedure to be followed in the sale or redemption of
stocks or shares therein; (3) the methods and standards to be employed
in determining the value of such shares in the mutual trust investment
company and the assets and investments thereof; and (4) the maximum
proportionate shares of any such mutual trust investment company which
may be apportioned or sold to any one trust company or national bank.
  (d) To authorize a bank or a trust company to invest in the capital
stock of a corporation not included among the corporations in the
capital stock of which investment is expressly authorized by this
chapter.
  (e) To authorize a savings bank to invest in the capital stock,
capital notes and debentures of and to transfer property to, a trust
company or other corporation, as provided in article six of this
chapter.
  (ee) To authorize a savings and loan association to invest in the
capital stock, capital notes and debentures of and to transfer property
to, a trust company or other corporation, as provided in article ten of
this chapter.
  (f) To authorize savings banks to invest in corporate interest bearing
obligations not otherwise eligible for investment, provided application
for such authorization shall have been made by not less than twenty
savings banks or by a trust company all of the capital stock of which is
owned by not less than twenty savings banks. Any authorization made
pursuant to this subdivision may be revoked upon a majority vote of all
the members of the board.
  (g) To prescribe from time to time: (1) the rates of interest which
may be paid on deposits with any banking organization and with any
branch or agency of a foreign banking corporation; and (2) the rates of
dividends which may be paid on shares of any savings and loan
association or credit union, and to prohibit the payment of such
interest or such dividends by any banking organization or by any branch
of a foreign banking corporation. Interest or dividend rates so
prescribed need not be uniform.
  (h) To limit and regulate withdrawals of deposits or shares from any
banking organization, if the board shall find that such limitation and
regulation are necessary because of the existence of unusual and
extraordinary circumstances. The board shall enter such finding on its
records.
  (i) To prescribe from time to time reserves against deposits to be
maintained by banks and trust companies pursuant to article three of
this chapter; provided that no reserve requirement imposed by the board
against either time or demand deposits shall require any bank or trust
company to maintain total reserves in an amount greater than it would be
required to maintain if it were at the time a member of the federal
reserve system; and provided further, however, that a bank or trust
company not a member of the federal reserve system may be authorized by
the board to maintain total reserves against deposits in an amount lower
than the reserves required by article three of this chapter to be
maintained, either in individual cases or by general regulations of the
board on such basis as the board may deem reasonable or appropriate in
view of the character of the business transacted by such bank or trust
company.
  (ii) To exempt from reserve requirements prescribed by or pursuant to
this chapter deposits payable to the United States by any banking
organization arising solely as a result of subscriptions made by or
through any such banking organization for United States government
securities issued under the authority of the second liberty bond act as
amended.
  (j) To grant permission to officers, directors, clerks or employees of
banks, trust companies and industrial banks to engage in the issue,
flotation, underwriting, public sale or distribution at wholesale or
retail, or through syndicate participation of stocks, bonds or other
similar securities, and to revoke such permission, both as provided in
this chapter.
  (k) To prescribe the methods and standards to be used (1) in making
the examinations provided for in this chapter, and (2) in valuing the
assets of banking organizations.
  (l) To prescribe the form and contents of periodical reports of
condition to be rendered to the superintendent by banks, trust
companies, private bankers, branches of foreign banking corporations and
industrial banks, and the manner of publication of such reports.
  (m) To postpone or omit the calling for and rendering of reports
provided for by this chapter if the board shall find that such
postponement or omission is necessary because of the existence of
unusual and extraordinary circumstances. The board shall enter such
finding on its records.
  (n) To define what is an unsafe manner of conducting the business of
banking organizations.
  (o) To define what is a safe or unsafe condition of a banking
organization.
  (p) To make variations from the requirements of this chapter, provided
such variations are in harmony with the spirit of the law, if the board
shall find that such variations are necessary because of the existence
of unusual and extraordinary circumstances. The board shall enter such
finding on its records.
  (q) To establish safe and sound methods of banking and safeguard the
interests of depositors, creditors, shareholders and stockholders
generally in times of emergency.
  (qq) To permit any banking organization, national banking association,
federal mutual savings bank, federal savings and loan association and
federal credit union to offer graduated payment mortgages which shall
conform to the provisions of section two hundred seventy-nine of the
real property law.
  (s) To permit authorized lenders, as defined by section two hundred
eighty or two hundred eighty-a of the real property law, to offer
reverse mortgage loans which shall conform to the provisions of section
two hundred eighty or two hundred eighty-a of the real property law.
  (t) To exercise any other power conferred upon the board by law.
  2. The board shall consider and make recommendations upon any matter
which the superintendent may submit to it for recommendations, and pass
upon and determine any matter which he shall submit to it for
determination.
  3. The board shall submit to the superintendent proposals for any
amendments to this chapter which it deems desirable.

  S 14-a. Rate of interest; banking board to adopt regulations. 1.  The
maximum rate of interest provided for in section 5-501 of the general
obligations law shall be sixteen per centum per annum.
  2. The rate of interest as so prescribed under this section shall
include as interest any and all amounts paid or payable, directly or
indirectly, by any person, to or for the account of the lender in
consideration for the making of a loan or forbearance as defined by the
banking board pursuant to subdivision three of this section.
  3. The banking board shall have the power, by a three-fifths vote of
all its members, to adopt such regulations as it shall deem necessary or
proper to implement the provisions of this section. The banking board
shall make available to the public copies of all regulations adopted
pursuant to this section.
  4. Such regulations as shall have been adopted pursuant to the
provisions of this chapter and in effect immediately prior to the
effective date of this section, shall continue in effect until such time
as new regulations shall have been adopted by the banking board and
shall become effective.
  5. Whenever reference is made in this chapter or in any other law,
contract or document to the rate of interest prescribed or to be
prescribed by the banking board or the superintendent pursuant to this
section or any former section fourteen-a of this chapter, such reference
shall be deemed a reference to the rate of interest prescribed in
subdivision one of this section.
  6. Notwithstanding the provisions of subdivision five of this section,
the rate of interest charged, taken or received on any loan or
forbearance, which would have otherwise been subject to the provisions
of former section fourteen-a of this chapter, made or entered into
between the effective date of this section and the first day of
February, nineteen hundred eighty-one pursuant to a commitment which was
made or entered into prior to the effective date of United States Public
Law 96-161 and which provides for interest at the prevailing rate at the
time of closing shall not exceed the rate of eleven and one-quarter per
centum per annum.
  7. Nothing contained in this section nor in any other provision of
this act whereunder this section is added to the banking law shall be
deemed to prohibit the charging of interest at the rates provided or
permitted by United States Public Laws 96-161, 96-221 and 96-399, where
applicable.
  8. On or before the twenty-eighth of February, nineteen hundred
eighty-one, the superintendent shall submit to the governor, the speaker
of the assembly, the majority leader of the senate, the chairman of the
senate standing committee on banks and the chairman of the assembly
standing committee on banks a report which shall include recommendations
regarding the general elimination of limitations on rates of interest,
including such limitations as are provided for in section 5-501 of the
general obligations law and section fourteen-a of the banking law. The
report shall also include recommendations regarding the elimination of
limitations on the rate of interest pertaining to lenders not regulated
or licensed by the banking board.

  S 14-b. Power of the banking board to prescribe minimum rate of
interest on mortgage escrow accounts. 1. The banking board shall have
the power to prescribe, from time to time but not more often than once
in every three month period, by a three-fifths vote of all its members,
by regulation a minimum rate of, and method or basis of computing,
interest that a mortgage investing institution shall be required to pay
on each escrow account maintained with respect to a mortgage on a one to
six family residence occupied by the owner or on any property owned by a
cooperative apartment corporation, as defined in subdivision twelve of
section three hundred sixty of the tax law, (as such subdivision was in
effect on December thirtieth, nineteen hundred sixty), and located in
this state, which rate shall be greater than the rate of interest
required to be paid under section 5-601 or 5-602 of the general
obligations law.
  2. In making such determination the banking board shall consider
pertinent economic and cost factors including, but not limited to: (i)
current yields on short term investments, (ii) current dividend rates
paid on regular savings accounts throughout this state, (iii) currently
prevailing interest rates on conventional and insured or guaranteed
mortgage loans in this state, (iv) cost factors in maintaining escrow
accounts and (v) such other pertinent economic or cost factors that the
banking board shall deem to be appropriate.  Prior to the banking
board`s prescription of any such minimum rate of interest, the
superintendent shall make a written recommendation to the banking board
as to such minimum rate of interest, reciting the economic and cost data
and criteria upon which such recommendation is based. Prior to making
such recommendation, the superintendent may invite presentation, by
interested persons, of information and data relating to economic and
cost factors relevant to such minimum rate of interest.
  3. The banking board may promulgate such regulations as it deems
necessary and proper to implement and define the provisions of this
section. The banking board may prescribe the minimum rate of interest
from time to time, but not more often than once in any three-month
period, and shall provide reasonable notice to the public of any change
in the rate of interest, of the effective date of such change, which
shall be not less than seven days following the adoption of such change
by the banking board, and of any rule or regulation adopted pursuant to
this subdivision.
  4. In no event shall interest be required to be paid on escrow
accounts where (i) there is a contract between the mortgagor and the
mortgage investing institution, entered into before the date this
subdivision shall have become a law which contains an express disclaimer
of an obligation on the part of the mortgage investing institution to
pay interest on such accounts, or (ii) the payment of such interest
would violate any federal law or regulation, or (iii) such accounts are
maintained with a mortgage servicing company, neither affiliated with
nor owned in whole or in part by the mortgage investing institution,
under a written contract, entered into before the date this subdivision
shall have become a law, which contract does not permit the mortgage
investing institution to earn or receive a return from the investment of
such accounts.
  5. "Mortgage investing institution" as used in this section and in
section 5-601 or 5-602 of the general obligations law shall mean and
include any bank, trust company, national bank, savings bank, savings
and loan association, federal savings and loan association, private
banker, credit union, investment company, insurance company, pension
fund, mortgage company or other entity which makes, extends or holds a
mortgage on any one to six family residence occupied by the owner or any
property owned by a cooperative apartment corporation, as defined in
subdivision twelve of section three hundred sixty of the tax law, (as
such subdivision was in effect on December thirtieth, nineteen hundred
sixty), and located in this state.
  6. "Escrow account" as used in this section and in section 5-601 or
5-602 of the general obligations law shall mean any account established
pursuant to an agreement between a mortgagor and a mortgage investing
institution whereby the mortgagor pays to the mortgage investing
institution or his designee amounts to be used for the payment of
insurance premiums, water rents or any similar charges, and shall also
include real property tax escrow accounts as defined in title three-A of
article nine of the real property tax law.
  7. "One to six family residence" as used in this section and in
section 5-601 or 5-602 of the general obligations law shall mean
property used primarily for residential purposes for one to six
families, including property held in condominium form, and which is
occupied in whole or in part by the owner.
  8. 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 application of
such section to individuals, companies, corporations, or circumstances
other than those to which it is held invalid, shall not be affected
thereby.

  S 14-c. Power of the banking board to prescribe criteria for
disclosure of information on savings and time accounts.  1. The banking
board shall promulgate rules and regulations with respect to the
disclosure of information on savings and time accounts by all banking
organizations and out-of-state state banks authorized to operate and
maintain branches pursuant to article five-C of this chapter. Such rules
and regulations shall set forth guidelines for, but not be limited to
the following:
  (a) disclosure of the annual rate of simple interest; the effective
annual yield; the formula used in calculating interest; the frequency of
compounding and crediting of interest; date on which a deposit begins to
earn interest; any delay in crediting a deposited instrument; grace
periods for deposits and withdrawals; the minimum balance required to
earn interest; the method of determining the balance on which interest
is paid; the minimum length of time funds must remain on deposit to earn
interest; any fees levied on inactive accounts; any charges, penalties
or other conditions imposed upon withdrawals; any penalties for the
closing of an account before a specific date; and any other fees,
charges or penalties.
  (b) form, content and distribution of information.
  2. The banking board may alter or amend rules and regulations or
promulgate additional rules and regulations as it deems necessary and
proper to effectuate the provisions of subdivision one.

  S 14-d. Power of the banking board to prescribe a reasonable period of
time permitting the drawing on items received for deposit in a
customer`s account. 1. It is the public policy of this state to provide
all banking customers with the ability to draw against items deposited
for collection with any banking institution located in this state within
a reasonable period of time.
  2. The banking board shall promulgate regulations, which may be
amended from time to time, establishing a reasonable period of time
within which a banking institution must permit a banking customer to
draw, as of right, on an item which has been received for deposit in the
customer`s account.
  3. The superintendent is authorized to gather from banking
institutions such information as may be required by the banking board
for the promulgation of the regulations required by this section.
  4. (a) Except as otherwise provided in paragraph (b) of this
subdivision, a provision in any agreement between a banking institution
and its banking customer which provides for a period of time longer than
the period prescribed under regulations promulgated pursuant to this
section is unreasonable for purposes of article four of the uniform
commercial code and, in lieu thereof, the maximum period of time
permitted in the regulation shall be deemed controlling. For all other
purposes the provisions of this section shall not be deemed or construed
to alter or impair any right or obligation under the uniform commercial
code.
  (b) This section does not prohibit a banking institution and a banking
customer from agreeing in writing to a greater period of time than that
otherwise prescribed by regulation pursuant to this section for the
drawing against items because of special circumstances, provided that,
such agreement is not contained in a pre-printed form and is not a
usual, regular business practice of the institution.
  5. Such regulations shall require every banking institution to notify
each of its banking customers, in writing, of the applicable time
limitations on the right to draw on items received for deposit in the
customer`s account and to keep posted in a conspicuous place at each
branch, a notice substantially setting forth the generally applicable
time limitations of the banking institution`s customers` rights to draw
on items deposited to their accounts.
  6. The banking board is empowered, upon a determination that the
uniform application of a regulation adopted pursuant to this section
would result in unsafe or unsound banking practices, to issue such
further regulation or order with respect thereto as it deems
appropriate.
  7. In this section "banking institution" has the same meaning ascribed
to it by section nine-f of this chapter and "item" has the same meaning
ascribed to it by the uniform commercial code.

  S 14-e. Power of the banking board to authorize the operation of
savings banks and savings and loan associations in stock form. 1.
Notwithstanding any other provision of law to the contrary, the banking
board is authorized, by a three-fifths vote of all its members, to
promulgate such rules and regulations as shall facilitate:
  (a) The organization and operation of stock-form savings banks and
stock-form savings and loan associations,
  (b) The conversion of mutual savings banks and savings and loan
associations to stock form, and
  (c) Mergers and acquisitions of assets or of capital stock between and
among all of the foregoing banking institutions and between and among
such institutions and any other banking institution.
  The banking board is authorized to define and implement, by general
regulation, the terms and provisions of this section. In adopting such
regulations, the banking board shall take into account the declaration
of policy contained in section one of a chapter of the laws of nineteen
hundred eighty-four entitled "An Act to amend the banking law, in
relation to the organization and incorporation of stock-form savings
banks and stock-form savings and loan associations and the conversion of
mutual savings banks and mutual savings and loan associations to stock
form". In connection with such regulations, the banking board is
empowered to apply to such stock-form organizations any provision of
this chapter, in whole or in part, as shall be applicable to any other
stock-form banking organization and to vary any condition, requirement
or provision of article two, fifteen or sixteen of this chapter.
  2. Such applications as the banking board may prescribe under
paragraph (a), (b) or (c) of subdivision one of this section shall each
be accompanied by an investigation fee of five thousand dollars.
  3. Without limiting the foregoing, the banking board, if it shall
determine that unusual and extraordinary circumstances exist, shall be
authorized, by resolution, special or general regulation, to apply or to
deem inapplicable to any banking institution referred to in subdivision
one of this section, such provisions of this chapter in whole or in
part, as it shall find appropriate in connection with the organization,
operation, conversion, merger or any other transaction involving a
stock-form savings bank or stock-form savings and loan association,
provided, however, that such actions are in harmony with the spirit of
the law and are necessary because of the existence of such
circumstances.

  S 14-f. Power of the banking board to require the provision of basic
banking services. 1. The legislature finds and declares that certain
consumers residing in this state may be unable to afford, without undue
financial hardship, the cost of maintaining a consumer transaction
account at a banking institution located in this state.  It is the
policy of this state that, consistent with safe and sound banking
practices, banking institutions make available lower cost banking
services to consumers. It is further intended that no banking
institution be required to offer lower cost banking services at a cost
to account holders which is less than the actual cost to the banking
institution to provide such services.
  2. Except as otherwise provided in this section, every banking
institution shall make available to consumers a consumer transaction
account, to be known as a "basic banking account", with the following
features to be prescribed by the banking board by regulation:
  (a) the maximum amount which a banking institution may require as an
initial deposit, if any;
  (b) the maximum amount a banking institution may require as a minimum
balance, if any, to maintain such account;
  (c) eight withdrawal transactions, including those conducted at
electronic facilities, during any periodic cycle at no additional charge
to the account holder; and
  (d) the maximum amount a banking institution may charge per periodic
cycle for the use of such account.
  3. With respect to any transactions in excess of the number specified
in accordance with paragraph (c) of subdivision two of this section, (a)
a banking institution may impose a reasonable per-transaction charge, or
(b) it may impose the fees and charges normally applied to other
consumer transaction accounts available at that banking institution
provided that any charge per periodic cycle imposed hereunder must be
reduced by the charge imposed under paragraph (d) of subdivision two of
this section; provided however, that at no time shall the fees and
charges on the basic banking account exceed the amount that is normally
applied to other consumer transaction accounts available at that banking
institution.
  4. A banking institution may require as a condition for opening or
maintaining a basic banking account, (a) that the holder of a basic
banking account be a resident of this state; and (b) the direct deposit
to the banking institution of recurring payments such as, but not
limited to, social security, wage, or pension payments where direct
deposit is available to both the consumer and the banking institution.
  5. Except as provided in this section and any rules and regulations
promulgated hereunder, a basic banking account may be offered subject to
the same rules, conditions and terms normally applicable to other
consumer transaction accounts offered by the banking institution;
provided that the fees and charges for specific services other than
those otherwise provided in this section shall not exceed those imposed
by the banking institution for the same services in connection with
other consumer transaction accounts offered by the banking institution.
  6. No banking institution shall be required to permit any person to
open or maintain a basic banking account pursuant to this section if
such person maintains another consumer transaction account either at
that banking institution or any other banking institution.
  7. In lieu of the basic banking account required by this section, a
banking institution may make available an alternative account or other
banking services determined by the superintendent to be at least as
advantageous to consumers as the basic banking account.
  8. Where a banking institution posts in the public area of its offices
notice of the availability of its other consumer transaction accounts,
it shall also post equally conspicuous notice in such public areas and
in the same manner the availability of its basic banking accounts. Where
a banking institution makes available in such public areas material
describing the terms of its other consumer transaction accounts, it
shall also make comparable descriptive material available in the same
such areas and in the same manner for its basic banking account.
  9. For purposes of this section:
  (a) "banking institution" means any bank, trust company, savings bank,
savings and loan association, or credit union, or branch of a foreign
banking corporation the deposits of which are insured by the Federal
Deposit Insurance Corporation, which is incorporated, chartered,
organized or licensed under the laws of this state or any other state or
the United States, and, in the ordinary course of its business, offers
consumer transaction accounts to the general public or, in the case of a
credit union, to its members;
  (b) "consumer transaction account" means a demand deposit account,
negotiable order of withdrawal account, share draft account or similar
account used primarily for personal, family or household purposes.
  10. For purposes of this section, any banking insititution which
offers share draft accounts shall use the term "basic share draft
account" instead of "basic banking account".
  11. If any provision of this section, or the application of such
provision to any person or circumstance shall be held invalid, the
remainder of this section, and the application of such provisions
thereof to persons or circumstances other than those as to which it is
held invalid, shall not be affected thereby.

  * S 14-g. Power of the banking board to authorize banks or trust
companies to exercise the rights of national banks. 1. The legislature
finds and declares that the rapid expansion of federal banking powers
requires a means to ensure parity, in a timely manner, between banks and
trust companies and national banks, in order to preserve and enhance the
state banking charter. It is the intention of the legislature that this
section be construed in such a manner as to ensure that banks and trust
companies may exercise the same rights and powers and engage in the same
activities as national banks, on substantially the same terms and
conditions as national banks. It is the further intention of the
legislature that in exercising any right or power or engaging in any
activity pursuant to this section that is subject to licensing or
regulation by any authority or agency of this state other than the
banking board or superintendent of banks, a bank or trust company be
subject to the same licensing and supervisory requirements that apply to
other persons who are authorized to exercise such rights or powers or
engage in such activities.
  2. Notwithstanding any other provision of law, the banking board is
hereby authorized and empowered to adopt such rules or regulations that
are, in its discretion, appropriate to enable banks or trust companies
to exercise any right, power, privilege or benefit, to engage in any
activity, or to enter into any loan, investment or transaction which a
national bank, acting either directly or through a subsidiary or
subsidiaries, may lawfully exercise or into which it may lawfully engage
or enter. The banking board may, from time to time, amend or repeal any
such rule or regulation and may impose such restrictions as it finds
necessary and proper including, but not limited to, a requirement that
any right, power, privilege, benefit, activity, loan, investment or
transaction be exercised, conducted or held in a subsidiary of a bank or
trust company. In the event that national banks located in the state of
New York lose the authority to exercise a right, power, privilege or
benefit, engage in an activity, or enter into a loan, investment or
transaction, based upon which comparable authority was granted to banks
or trust companies pursuant to this section, then unless such authority
is authorized by other New York state law, or a rule, regulation or
policy adopted pursuant to such other New York state law, or by a
judicial decision, the banking board shall by rule or regulation act to
revoke the authorization for banks and trust companies pursuant to this
section. Further, a right, power, privilege, benefit, activity, loan,
investment or transaction authorized by rule or regulation pursuant to
this section shall not exceed and shall be limited by any conditions,
qualifications or restrictions on the same when exercised by, engaged
in, or entered into by a national bank, unless banks or trust companies
are so authorized by other New York state law, or a rule, regulation or
policy adopted pursuant to such other New York state law, or by a
judicial decision.
  3. Prior to exercising the authority granted pursuant to this section,
the banking board shall make a finding that the promulgation of such
rules or regulations is:
  (a) consistent with the policy of the state of New York as declared in
section ten of this chapter and thereby protects the public interest,
including the interests of depositors, creditors, shareholders,
stockholders and consumers; and
  (b) necessary to achieve or maintain parity between banks and trust
companies and national banks with respect to rights, powers, privileges,
benefits, activities, loans, investments or transactions.
  4. In those instances where banks or trust companies are permitted to
engage in the business of insurance under any rule or regulation adopted
pursuant to this section, they shall do so subject to regulation by the
insurance department and pursuant to all insurance laws, rules, and
regulations; provided, however, that the banking board, in consultation
with the superintendent of insurance, may exempt banks or trust
companies from any insurance law, rule, or regulation which has been
preempted under federal law, rule or regulation for national banks if
such law, rule or regulation has been preempted because it applies to
insurance activities of banks or trust companies and not to those of
other entities.
  5. In those instances where a right, power, privilege, benefit,
activity, loan, investment or transaction authorized by rule or
regulation pursuant to this section is subject to regulation by an
agency, as defined in subdivision one of section one hundred two of the
state administrative procedure act, other than the superintendent,
banking board, or superintendent of insurance, then when a bank or trust
company exercises such right, power, privilege or benefit, engages in
such activity, or enters into such loan, investment or transaction,
unless it is so authorized by other New York state law, or a rule,
regulation or policy adopted pursuant to such other New York state law,
or by a judicial decision, it shall do so subject to such regulation to
the same extent and in the same manner as such agency regulates entities
other than banks or trust companies, except to the extent that national
banks are not subject to such regulation.
  6. Except with respect to a credit unemployment insurance policy,
group credit life insurance policy, a group credit health, group credit
accident or group credit health and accident policy, or similar group
credit insurance covering the person of the insured, banks, trust
companies, national banks, and any person soliciting the purchase of or
selling insurance on the premises thereof, must disclose or cause to be
disclosed in writing, where practicable, in clear and concise language,
to their customers and prospective customers who are solicited therefor
that any insurance offered or sold:
  (a) is not a deposit;
  (b) is not insured by the federal deposit insurance corporation; and
  (c) is not guaranteed by the bank, trust company, or national bank.
  7. Except with respect to a flood insurance policy, or a credit
unemployment insurance policy, group credit life insurance policy, a
group credit health, group credit accident or group credit health and
accident policy, or similar group credit insurance covering the person
of the insured, when a customer obtains insurance and credit from a
bank, trust company, or national bank, then the credit and insurance
transactions shall be completed through separate documents. The expense
of insurance premiums may not be included in the primary credit
transaction without the express written consent of the customer.
  8. Banks, trust companies and national banks shall not extend credit,
lease or sell property of any kind, or furnish any services, or fix or
vary the consideration for any of the foregoing, on the condition or
requirement that the customer obtain insurance from the bank, trust
company or national bank, its affiliate or subsidiary, or a particular
insurer, agent or broker, provided, however, that this prohibition shall
not prevent any bank, trust company or national bank from engaging in
any activity described in this subdivision that would not violate
section 106 of the Bank Holding Company Act Amendments of 1970, as
interpreted by the Board of Governors of the Federal Reserve System.
This prohibition shall not prevent a bank, trust company or national
bank from informing a customer that insurance is required in order to
obtain a loan or credit, that loan or credit approval is contingent upon
the customer`s procurement of acceptable insurance, or that insurance is
available from the bank, trust company or national bank; provided,
however, that the bank, trust company or national bank shall also inform
the customer in writing that his or her choice of insurance provider
shall not affect the bank, trust company or national bank`s credit
decision or credit terms in any way. Such disclosure shall be given
prior to or at the time that a bank, trust company, national bank or
person selling insurance on the premises thereof solicits the purchase
of any insurance from a customer who has applied for a loan or extension
of credit.
  9. No bank, trust company, or national bank shall require a debtor,
insurer, or insurance agent or broker to pay a separate charge in
connection with the handling of insurance that is required in connection
with a loan or other extension of credit or the provision of another
traditional banking product solely because the insurance is being
provided by an insurance agent or broker which is not the bank, trust
company or national bank or any subsidiary or affiliate thereof.
  10. Any bank, trust company or national bank and any subsidiary or
affiliate thereof which is licensed to sell insurance in this state
shall maintain separate and distinct books and records relating to its
insurance transactions, including all files relating to and reflecting
consumer complaints, and such insurance books and records shall be made
available to the superintendent of insurance for inspection upon
reasonable notice.
  11. The promulgation of rules or regulations pursuant to this section
shall be in accordance with the provisions of the state administrative
procedure act with the additional requirement that any rule making
notice shall cite the specific federal authority that enables a national
bank to exercise the right, power, privilege or benefit, engage in the
activity, or enter into the loan, investment or transaction which the
banking board is proposing to extend to banks or trust companies.
  12. Nothing contained herein shall be deemed to authorize the banking
board to promulgate rules or regulations pursuant to this section which
would permit a bank or trust company to exercise any power except in a
manner consistent with the following provisions of law, in each case, as
the terms contained in such provisions may be amended from time to time:
  (a) chapter one of the laws of nineteen hundred ninety-four;
  (b) chapter nine of the laws of nineteen hundred ninety-six; and
  (c) sections fourteen-c and section twenty-eight-b of this chapter.
  13. On or before June first, nineteen hundred ninety-eight and
annually thereafter, the superintendent shall submit a report to the
governor, the speaker of the assembly, the temporary president of the
senate, and the minority leaders of the senate and assembly, which shall
include, with respect to the authority provided for herein:
  (a) a listing of banks and trust companies that have been retained,
established or that have converted to a national bank charter and the
resulting number of jobs created, retained or lost in the state by
virtue thereof; and
  (b) a review and analysis of the extent to which the actions of the
banking board meet the criteria set forth in subdivision three of this
section.
  14. On or before June first, nineteen hundred ninety-eight and
annually thereafter, the superintendent shall, in conjunction with the
superintendent of insurance, submit a report to the governor, the
speaker of the assembly, the temporary president of the senate and the
minority leaders of the senate and assembly, which assesses the impact
of the provisions of this section which apply to the insurance
activities of banks and trust companies.
  * NB Repealed September 10, 2007

  * S 14-h. Power of the banking board to authorize savings banks and
savings and loan associations to exercise the rights of federal savings
associations and the insurance powers of national banks. 1. (a) The
banking board is hereby authorized and empowered to adopt such rules and
regulations that are, in its discretion, appropriate to enable savings
banks and savings and loan associations to engage in the insurance
business to the extent that a bank or trust company has been authorized
to engage pursuant to section fourteen-g of this article.
  (b) Notwithstanding any other provision of law, the banking board is
hereby authorized and empowered to adopt such rules or regulations that
are, in its discretion, appropriate to enable savings banks and savings
and loan associations to exercise any right, power, privilege, or
benefit, to engage in any activity, or to enter into any loan,
investment, or transaction which a federal savings association, as such
term is defined by the Federal Deposit Insurance Act, as amended, (12
USC 1813(b)(2)), acting either directly or through a subsidiary or
subsidiaries, may lawfully exercise or into which it may lawfully engage
or enter. The banking board may, from time to time, amend or repeal any
such rule or regulation and may impose such restrictions as it finds
necessary and proper, including, but not limited to, a requirement that
any right, power, privilege, benefit, activity, loan, investment, or
transaction be exercised, conducted, or held in a subsidiary of a
savings bank or savings and loan association.
  (c) In the event that federal savings associations located in the
state of New York lose the authority to exercise a right, power,
privilege, or benefit, engage in an activity, or enter into a loan,
investment, or transaction, based upon which comparable authority was
granted to savings banks or savings and loan associations pursuant to
this section, then, unless such authority is authorized by other New
York state law, or a rule, regulation, or policy adopted pursuant to
such other New York state law, or by a judicial decision, the banking
board shall by rule or regulation act to revoke the authorization for
savings banks and savings and loan associations pursuant to this
section. Further, a right, power, privilege, benefit, activity, loan,
investment, or transaction authorized by rule or regulation pursuant to
this section shall not exceed and shall be limited by any conditions,
qualifications, or restrictions on the same when exercised by, engaged
in, or entered into by federal savings associations, unless savings
banks or savings and loan associations are so authorized by other New
York state law, or a rule, regulation, or policy adopted pursuant to
such other New York state law, or by a judicial decision.
  2. Prior to exercising the authority granted pursuant to this section,
the banking board shall make a finding that the promulgation of such
rules or regulations is:
  (a) consistent with the policy of the state of New York as declared in
section ten of this article and thereby protects the public interest,
including the interests of depositors, creditors, shareholders,
stockholders, and consumers; and
  (b) necessary to achieve or maintain parity between savings banks and
savings and loan associations and federal savings associations with
respect to rights, powers, privileges, benefits, activities, loans,
investments, or transactions.
  3. In those instances where savings banks or savings and loan
associations are permitted to engage in the business of insurance under
any rule or regulation adopted pursuant to this section, they shall do
so subject to regulation by the insurance department and pursuant to all
insurance laws, rules, and regulations; provided, however, that the
banking board, in consultation with the superintendent of insurance, may
exempt savings banks or savings and loan associations from any insurance
law, rule, or regulation which has been preempted under federal law,
rule, or regulation for federal savings associations if such law, rule
or regulation has been preempted because it applies to insurance
activities of savings banks or savings and loan associations and not to
those of other entities.
  4. In those instances where a right, power, privilege, benefit,
activity, loan, investment, or transaction authorized by rule or
regulation pursuant to this section is subject to regulation by an
agency, as defined in subdivision one of section one hundred two of the
state administrative procedure act, other than the superintendent,
banking board, or superintendent of insurance, then, when a savings bank
or savings and loan association exercises such right, power, privilege,
or benefit, engages in such activity, or enters into such loan,
investment, or transaction, unless it is so authorized by other New York
state law, or a rule, regulation or policy adopted pursuant to such
other New York state law, or by a judicial decision, it shall do so
subject to such regulation to the same extent and in the same manner as
such agency regulates entities other than savings banks or savings and
loan associations, except to the extent that federal savings
associations are not subject to such regulation.
  5. Except with respect to a credit unemployment insurance policy, a
group credit life insurance policy, a group credit health, group credit
accident, or group credit health and accident policy, or similar group
credit insurance covering the person of the insured, savings banks,
savings and loan associations, federal savings associations, and any
person soliciting the purchase of or selling insurance on the premises
thereof, must disclose or cause to be disclosed in writing, where
practicable, in clear and concise language, to their customers and
prospective customers who are solicited therefor that any insurance
offered or sold:
  (a) is not a deposit;
  (b) is not insured by the federal deposit insurance corporation; and
  (c) is not guaranteed by the savings bank, savings and loan
association, or federal savings association.
  6. Except with respect to a flood insurance policy, a credit
unemployment insurance policy, group credit life insurance policy, a
group credit health, group credit accident, or group credit health and
accident policy, or similar group credit insurance covering the person
of the insured, when a customer obtains insurance and credit from a
savings bank, savings and loan association, or federal savings
association, then the credit and insurance transactions shall be
completed through separate documents. The expense of insurance premiums
may not be included in the primary credit transaction without the
express written consent of the customer.
  7. Savings banks, savings and loan associations, and federal savings
associations shall not extend credit, lease or sell property of any
kind, or furnish any services, or fix or vary the consideration for any
of the foregoing, on the condition or requirement that the customer
obtain insurance from the savings bank, savings and loan association, or
federal savings association, its affiliate or subsidiary, or a
particular insurer, agent, or broker; provided, however, that this
prohibition shall not prevent any savings bank, savings and loan
association, or federal savings association from engaging in any
activity described in this subdivision that would not violate section
106 of the Bank Holding Company Act Amendments of 1970 (12 USCA S 1971
et seq.), as interpreted by the Board of Governors of the Federal
Reserve System. This prohibition shall not prevent a savings bank,
savings and loan association, or federal savings association from
informing a customer that insurance is required in order to obtain a
loan or credit, that loan or credit approval is contingent upon the
customer`s procurement of acceptable insurance, or that insurance is
available from the savings bank, savings and loan association, or
federal savings association; provided, however, that the savings bank,
savings and loan association, or federal savings association shall also
inform the customer in writing that his or her choice of insurance
provider shall not affect the savings bank`s, savings and loan
association`s, or federal savings association`s credit decision or
credit terms in any way. Such disclosure shall be given prior to or at
the time that a savings bank, savings and loan association, federal
savings association, or person selling insurance on the premises thereof
solicits the purchase of any insurance from a customer who has applied
for a loan or extension of credit.
  8. No savings bank, savings and loan association, or federal savings
association shall require a debtor, insurer, or insurance agent or
broker to pay a separate charge in connection with the handling of
insurance that is required in connection with a loan or other extension
of credit or the provision of another traditional banking product solely
because the insurance is being provided by an insurance agent or broker
which is not the savings bank, savings and loan association, federal
savings association, or any subsidiary or affiliate thereof.
  9. Any savings bank, savings and loan association, or federal savings
association, and any subsidiary or affiliate thereof, which is licensed
to sell insurance in this state shall maintain separate and distinct
books and records relating to its insurance transactions, including all
files relating to and reflecting consumer complaints, and such insurance
books and records shall be made available to the superintendent of
insurance for inspection upon reasonable notice.
  10. The promulgation of rules or regulations pursuant to this section
shall be in accordance with the provisions of the state administrative
procedure act, with the additional requirement that any rule making
notice shall cite the specific federal authority that enables a federal
savings association to exercise the right, power, privilege, or benefit,
engage in the activity, or enter into the loan, investment, or
transaction which the banking board is proposing to extend to savings
banks or savings and loan associations.
  11. Nothing contained in this section shall be deemed to authorize the
banking board to promulgate rules or regulations pursuant to this
section which would permit a savings bank or savings and loan
association to exercise any power except in a manner consistent with the
following provisions of law, in each case, as the terms contained in
such provisions may be amended from time to time:
  (a) chapter one of the laws of nineteen hundred ninety-four;
  (b) chapter nine of the laws of nineteen hundred ninety-six; and
  (c) sections fourteen-c and twenty-eight-b of this article and
sections two hundred forty and three hundred ninety-six of this chapter.
  12. On or before June first, two thousand four and annually
thereafter, the superintendent shall submit a report to the governor,
the speaker of the assembly, the temporary president of the senate, and
the minority leaders of the senate and assembly which shall include,
with respect to the authority provided for in this section:
  (a) a listing of savings banks and savings and loan associations that
have been retained or established or that have converted to a federal
savings association and the resulting number of jobs created, retained,
or lost in the state by virtue thereof; and
  (b) a review and analysis of the extent to which the actions of the
banking board meet the criteria set forth in subdivision two of this
section.
  13. On or before June first, two thousand four and annually
thereafter, the superintendent shall, in conjunction with the
superintendent of insurance, submit a report to the governor, the
temporary president of the senate, the speaker of the assembly, and the
minority leaders of the senate and assembly which assesses the impact of
the provisions of this section which apply to the insurance activities
of savings banks and savings and loan associations.
  * NB Repealed September 10, 2007

  S 15. Deputies, clerks, examiners, special agents and other employees;
appointment; compensation; oath of office; bonds; powers of deputies.
1. The superintendent may appoint five deputies, and shall employ from
time to time such clerks, examiners, special agents and other employees,
under such titles as he may assign to them, as he may need to discharge
in the proper manner the duties imposed upon him by law. They shall
perform such duties as the superintendent shall assign to them. The
superintendent shall fix their compensation.
  2. Every deputy, within fifteen days after notice of his appointment,
shall take and subscribe the constitutional oath of office, and file
such oath in the department of state. Every examiner, before entering
upon his duties as such examiner, shall take and subscribe such oath and
file it with the secretary of state.
  3. If any deputy who, prior to appointment as deputy, has served as
examiner for a period of three years or more, is removed by the
superintendent from such position as deputy he must be restored to the
position of examiner and as such shall be entitled to the same rights
and privileges to which he would have been entitled had he continued as
examiner and shall receive full credit for his service as deputy and be
entitled to receive a salary at least equal to that paid to him as
deputy, upon the audit and warrant of the comptroller as provided in
section seventeen of this article, if he shall have served as deputy
continuously for more than one year or, if he shall have served as
deputy for one year or less, at least equal to that paid to him as
examiner immediately preceding his appointment as deputy. The
superintendent may, in his discretion, appoint as an examiner for a term
of not more than six months any person who shall have served in such
capacity for at least three years, and shall have left the department
voluntarily and in good standing.
  4. Any action which the superintendent is required or authorized
hereinafter by this chapter to take may be taken by a deputy to whom the
duty of taking such action has been assigned by the superintendent.

  S 16. Restrictions on officers and employees of the department;
penalty. 1. No officer or employee of the department shall obtain a loan
from any banking organization, licensed mortgage banker, licensed lender
or foreign corporation licensed by the superintendent to do business in
this state, or receive, either directly or indirectly, from any such
banking organization, licensed mortgage banker, licensed lender or
foreign corporation, or from any officer, director, trustee or employee
thereof, any sum of money or other valuable thing by way of gift, credit
or otherwise; or be an owner, partner, officer, director, trustee or
employee of any banking organization, licensed mortgage banker, licensed
lender or foreign corporation licensed by the superintendent to do
business in this state, or own or deal in, either directly or
indirectly, the stocks or obligations of any such banking organization,
licensed mortgage banker, licensed lender or foreign corporation. A
violation of the provisions of this section by any deputy, examiner,
clerk, special agent or other employee shall constitute sufficient
grounds for his or her removal by the superintendent.
  2. Nothing in this section shall be construed to prohibit an employee
from obtaining first lien financing upon his or her own home, provided
that the premises securing such loan are occupied by such employee, and
further provided that such loan is reported to the department, which
shall keep a record thereof. The term "home," for the purposes of this
section, shall mean a single family or two family residence, condominium
apartment or cooperative apartment, occupied in whole or in part, by the
deputy, examiner, clerk, special agent or other employee of the
department. The term "cooperative apartment" means a residence where
ownership is evidenced by certificates of stock or other evidence of an
ownership interest in, and a proprietary lease from, a corporation or
partnership formed for the purpose of the cooperative ownership of real
estate.
  3. Nothing in this section shall be construed to prohibit an employee
from: (a) obtaining a loan secured by an assignment of his or her
deposit in a banking organization, or an assignment or pledge of his or
her shares in a savings and loan association or credit union; (b)
obtaining from a savings bank which has established a life insurance
department pursuant to article VI-A of this chapter one or more policies
of insurance and one or more annuity policies, receiving dividends on
such policies and pledging such policies as security for a loan from
said banking organization to the extent of the cash surrender value
thereof; (c) accepting dealer financing of an automobile, truck or other
personal property for the sole reason that the financing company is
chartered under article XII of this chapter; or (d) owning shares of an
investment company (mutual fund) that may incidentally invest in the
stock of banking institutions, provided that the purpose of the
investment portfolio of such investment company may not be to invest
primarily or exclusively in the shares of banking institutions. For
purposes of this section, investment companies include open-end and
closed-end investment companies and unit investment trusts as those
terms are defined in an Act of Congress entitled "The Investment Company
Act of 1940," as amended.
  4. Nothing herein contained shall be deemed to extend the powers of
any banking organization or licensed mortgage banker to make such
mortgage and other loans.

  S 17. Expenses of department; assessments.  1. All expenses, including
the compensation of officers and employees of the department, incurred
in and about the conduct of the business of the department, except
expenses incurred in the liquidation of banking organizations, including
compensation of officers and employees engaged primarily in such
liquidation, shall be paid out of the state treasury on the certificate
of the superintendent upon the audit and warrant of the comptroller. The
state treasury shall be reimbursed by payments thereto by the
superintendent of assessments collected by him in accordance with this
section.
  2. All general expenses, including in addition to the direct costs of
personal service, the cost of maintenance and operation, the cost of
retirement contributions made and workers` compensation premiums paid by
the state for or on account of personnel, rentals for space occupied in
state owned or state leased buildings and all other direct or indirect
costs, incurred in connection with the supervision of banking
organizations, licensed lenders, licensed sales finance companies,
licensed cashers of checks, licensed insurance premium finance agencies,
licensed transmitters of money, foreign banking corporations licensed to
maintain a representative office, agency or branch and licensed mortgage
bankers shall be charged to and paid by them in such proportions as the
superintendent shall deem just and reasonable.
  The superintendent shall require that partial payments of the charges
for expenses of each fiscal year commencing on or after April first,
nineteen hundred eighty-three shall be paid on March tenth of the
preceding fiscal year and on June tenth, September tenth and December
tenth of the fiscal year, or on such other dates as the director of the
budget may prescribe. Provided, however, that payment due March tenth,
nineteen hundred eighty-three for the fiscal year beginning April first,
nineteen hundred eighty-three shall not be required to be paid until
June tenth, nineteen hundred eighty-three. Each such payment shall be
equal to twenty-five per centum of the charges for the fiscal year as
estimated by the superintendent. The balance of the expenses shall be
charged and paid upon the determination of the actual amount due. An
overpayment of charges resulting from the requirements of this
subdivision shall be refunded or at the option of the assessed shall be
applied as a credit against the charges for the succeeding fiscal year.
If the estimated annual charge for the fiscal year is equal to or less
than the annual minimum assessment set by the superintendent, no partial
payments should be required and full payment shall be made on or before
September thirtieth of the fiscal year.
  3. The expenses incurred in making examinations of, or for special
services performed on account of, any bank holding company registered
under article three-A of this chapter, banking organization, licensed
lender, licensed transmitter of money, licensed casher of checks, or
foreign banking corporation or agency or branch thereof to which this
chapter is applicable, shall be assessed against and paid by the bank
holding company, banking organization, licensed lender, licensed
transmitter of money, licensed casher of checks, or foreign banking
corporation for which they were incurred or performed, except that
traveling and subsistence expenses so incurred may, in the
superintendent`s discretion, be assessed as provided in subdivision two
of this section.
  4. The expenses incurred in making an examination of any affiliate of
a corporate banking organization pursuant to subdivision six of section
thirty-six of this chapter, and the expenses incurred in making an
examination, pursuant to subdivision six-a of section thirty-six of this
article, of a non-banking subsidiary of a corporation that is an
affiliate of a corporate banking organization, shall be assessed against
and paid by such corporate banking organization if the affiliate cannot
be assessed pursuant to the provisions of subdivision three of this
section.

  S 18. Fees for copies and certifications. For every copy of any paper
filed in the department and for the certification thereof, except where
such copy or certification is made for the benefit of a banking
organization, licensed lender, licensed sales finance company, licensed
casher of checks, licensed insurance premium finance agency, licensed
transmitter of money or foreign corporation licensed by the
superintendent to do business in this state, the department may charge
such amount as the superintendent shall, in his discretion, determine to
be fair and reasonable.

  S 19. Assessments for deficiency in reserves against deposits.  If any
banking organization or branch of a foreign banking corporation shall
not maintain the total reserves prescribed by or pursuant to this
chapter, the superintendent may levy an assessment upon it for such
period as any deficiency in its total reserves amounting to one per
centum or more of its deposits against which reserves are required to be
maintained shall continue, at rates not in excess of the following:
  (1) Six per centum per annum upon any such deficiency not exceeding
two per centum of such deposits.
  (2) Eight per centum per annum upon any additional deficiency in
excess of two and not exceeding three per centum of such deposits.
  (3) Ten per centum per annum upon any additional deficiency in excess
of three and not exceeding four per centum of such deposits.
  (4) Twelve per centum per annum upon any additional deficiency
therein.

  S 20. Assessments, penalties and forfeitures entitled to priority. In
case of the insolvency or voluntary or involuntary liquidation of any
banking organization, licensed lender, licensed sales finance company,
licensed casher of checks, licensed insurance premium finance agency,
licensed transmitter of money or foreign corporation, all unpaid charges
lawfully assessed against it by the superintendent and all unpaid
penalties and forfeitures incurred by it under any section of this
chapter shall be entitled to priority of payment from its assets on an
equality with any other priority given by this chapter.

  S 21. Collection of assessments, penalties and forfeitures;
proceedings by attorney-general. 1. When the superintendent, pursuant to
the powers conferred on him by this article, shall have duly levied any
assessment and shall have given due notification of the amount thereof,
the amount so assessed shall become a liability of, and shall be paid to
the superintendent by the banking organization, licensed lender,
licensed sales finance company, licensed casher of checks, licensed
insurance premium finance agency, licensed transmitter of money or
foreign corporation upon which it was levied.
  2. If any banking organization, licensed transmitter of money or
foreign corporation shall not pay, after due notice, any such assessment
or any penalty or forfeiture incurred under any section of this chapter,
the superintendent may, in his discretion, apply in payment thereof,
with interest at the legal rate, so much as may be necessary of the
interest accruing on any stocks or bonds deposited with him by such
banking organization, licensed transmitter of money or foreign
corporation pursuant to any requirement of this chapter.
  3. The superintendent may, in his discretion, report to the
attorney-general any failure to make such payments or the failure of any
officer, director, trustee, or employee of any such banking
organization, licensed lender, licensed sales finance company, licensed
casher of checks, licensed insurance premium finance agency, licensed
transmitter of money or foreign corporation, after due notice, to pay
any penalty or forfeiture incurred by him under any provision of this
chapter, or any violation by any corporation, unincorporated
association, partnership or individual of any provision of this chapter.
The attorney-general shall thereupon, in the name of the superintendent,
or of the people of the state, institute such action or proceedings as
the facts may warrant.

  S 22. Fingerprints.  (a) Notwithstanding any other provision of law,
every applicant for a license under articles nine, nine-A, eleven-B,
twelve-B, twelve-C, twelve-D and thirteen-B of this chapter and every
applicant filing an application to acquire control of any licensee under
such articles shall 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 such 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. 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 fingerprints 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; 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
resulting from such search with the department; 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 "Securities 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 fingerprints to such exchange or
market system which has had a criminal history search conducted of such
individual and has shared such information or its determination
resulting from such search with the department; provided, however, that
the superintendent may subsequently require such applicant to submit his
or her 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.
  (b) The superintendent shall also, concurrent with an investigation of
a licensee 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.
  (c) For purposes of this section, "applicant" 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 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 23. Acceptance or rejection of certificate; investigation fees.
Within twenty days after the receipt by the superintendent of any
organization certificate of a corporation proposed to be organized under
this chapter, or any private banker`s certificate together with such
documents as are required to be filed therewith, the superintendent
shall, if such certificate and such accompanying documents comply in
form and substance with the requirements of this chapter, file such
certificate for examination and note thereon the date of such filing. If
such certificate or such accompanying documents do not comply in all
respects with the requirements of this chapter, the superintendent
shall, within twenty days after receipt thereof, return them to the
persons from whom they were received, calling attention to the defect or
defects therein.
  At the time of submission of the certificate and accompanying
documents an investigation fee of two thousand five hundred dollars
shall be paid to the superintendent, to be retained by him if the
certificate and accompanying documents are filed. If the certificate and
accompanying documents are not filed because of defects therein, the
investigation fee is to be returned with such papers to the persons from
whom they were received. No investigation fee shall be required on the
submission of an organization certificate for a credit union nor on the
filing of a verified certificate pursuant to section one hundred sixty
of this chapter by the continuing, surviving or successor partner or
partners of a private banker for an authorization certificate to engage
in business as a private banker. 

  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 shall find after investigation
and examination of what he deems to be the best sources of information
at his command that the character, responsibility and general fitness of
the person or persons named in such certificate 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 such certificate to the banking board together with all papers,
correspondence and other information in his possession relating thereto,
including the results of his investigation and his recommendation in the
matter. Such period of ninety days may be extended, by a written consent
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 precedent stipulated by the
superintendent as being a prerequisite to his recommendation to the
banking board.
  2. If three-fifths of the members of the board, after consideration of
all relevant information available to them, shall vote for approval, the
superintendent, if he is still satisfied, upon the considerations set
forth in subdivision one of this section, that such proposed corporation
or private banker should be permitted to engage in business, shall
approve such certificate and endorse upon each of the duplicates the
date of such approval.  He shall forthwith cause notice of such approval
to be given to the proposed incorporators or private banker and one of
the duplicate certificates to 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
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 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 25. Authorization certificate; when and to whom issued; contents;
filing and recording. 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 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 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 superintendent may
extend the period within which he may issue the authorization
certificate by an additional sixty days, provided, however, that he
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. 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 proceeding brought by the superintendent or the
attorney general. The superintendent shall cause one of the triplicate
authorization certificates to be transmitted to the corporation or
private banker thereby authorized 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 certificate previously filed and such
certificates shall be recorded in the records of incorporation therein.
 
   2. Any corporation which shall not receive an authorization
certificate within the time period provided by subdivision one of this
section shall forfeit its rights and privileges as a corporation and its
corporate powers shall cease and determine.
  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
within which such business may be commenced has been extended by the
superintendent.  Upon satisfactory cause being shown, the superintendent
may grant an extension for a period of not more than one year. Such
extension shall be granted by order executed, transmitted and filed in
the manner provided for an authorization certificate in subdivision one
of this section.

  * S 25-a. Authority of superintendent to file organization certificate
and issue authorization certificate under certain conditions. 1.
Notwithstanding any other provision of law to the contrary, the
superintendent is authorized to file and approve the organization
certificate of a bank or trust company and to issue an authorization
certificate to such bank or trust company in accordance with the
provisions of subdivision two of this section.
  2. If the superintendent, after taking possession of the business and
property of any banking organization pursuant to section six hundred six
of this chapter, shall find that it is in the public interest for all or
a substantial part of the business or property of such banking
organization to be acquired by a bank or trust company to be organized
for such purpose, he may forthwith file and approve the organization
certificate of, and issue an authorization certificate to, such bank or
trust company and in connection therewith may waive any condition,
requirement or provision of articles two, three and fifteen of this
chapter, provided, however, that the superintendent shall be empowered
to impose such terms and conditions, if any, on the exercise of any
authority granted to any such bank or trust company as he may deem
appropriate to effectuate the declaration of policy contained in section
ten of this article.
  * NB Expired March 31, 1982

  S 26. Licenses to foreign banking corporations; renewal. Upon receipt
of an application in proper form of any foreign banking corporation for
leave to do business in this state under the provisions of article five
of this chapter, the superintendent, if he shall find after
investigation and examination of what he deems to be the best sources of
information at his command that the character, responsibility and
general fitness of the person or persons named in such application are
such as to command confidence and warrant belief that the business of
such foreign banking corporation 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 granting
such foreign banking corporation leave to do business in this state,
shall submit such application to the banking board together with a
summary of the results of his investigation. If three-fifths of the
members of the board shall vote for approval of such application, the
superintendent shall issue a license under his hand and the official
seal of the department authorizing such applicant to carry on such
business at the place designated in the license. Such license shall be
executed in triplicate and the superintendent shall cause one copy to be
transmitted to the applicant, another to be filed in the office of the
department and the third to be filed in the office of the clerk of the
county in which is located the place of business designated in such
license. A license which is issued to such foreign banking corporation
pursuant to this section shall remain in full force and effect until
surrendered or revoked.

  S 27. Exchange and examination of securities. 1. Any corporation,
unincorporated association, partnership or individual which shall have
deposited with the superintendent in trust any stocks or bonds in
pursuance of any requirement of this chapter, may be permitted by the
superintendent, so long as it shall continue business in the ordinary
course, from time to time to withdraw any of such stocks or bonds upon
depositing with the superintendent other stocks or bonds of the kind it
is required by this chapter to deposit with him and if the value of the
stocks or bonds so held by the superintendent exceeds the amount
required by this chapter to be so deposited, the stocks or bonds in
excess of such amount may be withdrawn without depositing others in
exchange therefor.
  2. Any such corporation, unincorporated association, partnership or
individual may, at any time during ordinary business hours, examine such
stocks or bonds and compare them with the record on the books of the
department. Unless it shall deliver to the superintendent at least once
in each calendar year, a statement listing such stocks or bonds and the
amounts thereof, and stating that they are in the custody and possession
of the superintendent at the date of the statement, the state
comptroller and the superintendent shall appoint some suitable and
discreet person as agent for such corporation, unincorporated
association, partnership or individual, who shall make an examination of
such stocks or bonds. If such agent finds that the stocks or bonds held
by the superintendent agree with the records thereof on the books of the
department, he shall execute a statement in the form above described and
transmit a copy thereof to the corporation, unincorporated association,
partnership or individual in behalf of which it is made, and such
statement shall have the same force and effect as if executed by such
corporation, unincorporated association, partnership or individual.
Compensation for the services and expenses of such agent in making such
examination shall be paid as a general expense of the department.

  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 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, issue a certificate under his
hand and 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, he 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 shall refuse
such application and notify the applicant of his determination.

  S 28-a. Temporary change of location; approval or refusal;
certificate.  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
superintendent 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 of one hundred fifty dollars 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 application 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
superintendent finds that such change is necessary or desirable during a
period of construction, repair, alteration, improvement, or
reconstruction of the previously authorized place of business, he shall
issue a certificate under his hand and the official seal of the
department authorizing each such change and specifying (a) the period
during which such temporary location may be maintained, (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 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.  If the superintendent shall be satisfied in any case that a
change is undesirable or inexpedient, he shall refuse such application
and notify the applicant of his determination. A temporary place of
business 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 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.
  2. A special committee is hereby created to consist of seven members
to be appointed as follows:  three members shall be appointed by the
governor, two members shall be appointed by the temporary president of
the senate and two members shall be appointed by the speaker of the
assembly. The chairman of the committee shall be appointed by the
governor. The members appointed to such committee shall be chosen from
consumer groups, banking institutions, business and labor organizations
and other groups representative of the public-at-large. Such committee
shall receive from the superintendent all reports furnished pursuant to
this section and such other information as the superintendent may deem
relevant. Such committee shall review such reports and the current
lending and investment policies of banking institutions, and not later
than February first, nineteen hundred eighty, shall make an interim
report to the governor and to the legislature, and a final report to the
governor and the legislature not later than November fifteenth, nineteen
hundred eighty. Such reports may contain recommendations of the
committee in legislative form.
  3. (a) When taking any action on an application made by a banking
institution under section one hundred five, two hundred twenty-four, two
hundred forty, or three hundred ninety-six of this chapter for a branch
office or under section one hundred ninety-one of this chapter for a
public accommodation office or under section six hundred one-b of this
chapter for approval or disapproval of a merger or purchase of assets,
or taking any action on an application made by a banking institution
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 to which the banking board 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, consistent with safe
and sound operation of the banking institution. Such assessment and any
written communications from the banking department 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
pursuant to subdivision one of this section and any signed, written
comments received by him 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
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
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;
  (9) The banking institution`s origination of residential mortgage
loans, housing rehabilitation loans, home improvement loans and small
business or small farm loans within its community or the purchase of
such loans originated in its community;
  (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 automatic
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 and
banking board, 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 deems it appropriate, provide for public
hearings when an objection to the banking institution`s application 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 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 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 (a) filed with the federal bank regulatory
authorities in connection with the application or (b) produced by the
applicant banking institution or others in connection with the
application.
  4. Notwithstanding any other provision of this chapter or 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.
  5. The banking board 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.
  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.

  S 28-c. Branch office closings; report to and action by the
superintendent. 1. This section is intended to provide the
superintendent with detailed information concerning the planned closing
of branch offices by state-chartered banking organizations, the
availability of alternative financial services within the general area
served by such branch and the economic impact upon the community
resulting from such closing, and to provide the superintendent with
authority to conduct meetings with banking organizations and community
groups in areas where a branch closing is planned.
  2. Every banking organization shall submit to the superintendent a
report of its planned or intended closing of a branch office, and shall
give written notice to any person who maintains a banking account
relationship with such branch office which is the subject of such
planned or intended closing, no less than ninety days nor more than one
hundred twenty days prior to the date of actual closing. The banking
organization shall post and keep posted in a conspicuous place notice of
such planned closing at such branch office, commencing on the date the
banking organization submits its report pursuant to the foregoing
provision and until the proposed closing is effected or withdrawn.
  3. Such report shall be in writing and shall contain a statement of
the reasons leading to the decision to close the branch and any
statistical or other information in support thereof. Such report shall
be and remain at all times subject to the provisions of subdivision ten
of section thirty-six of this chapter. Such report shall also contain:
  (a) a past (at least three years), present and projected financial
analysis of deposits at such branch (giving number of accounts and
dollar amount, profits and losses);
  (b) a past (at least three years), present and projected financial
analysis of profits and losses relating to the loan activity at such
branch;
  (c) a detailed map of the general area served by such branch showing
the distance and direction of all remaining state or federally chartered
institutions within such area and any licensee of the department which
provides financial services of any kind; and
  (d) a description of any planned limited or full service banking
facility to be opened within such area by either the reporting banking
organization or, if known, to the reporting banking organization, by any
other banking institution.
  4. The superintendent shall make a finding as to whether or not the
proposed branch closing will result in a significant reduction of
banking services in the community to be affected. Such finding shall be
made public. If the superintendent finds that the availability of
banking services in a particular geographic area or community will be
significantly reduced by the closing of a particular branch office, he
shall conduct such meetings with banking organizations and community
leaders as are necessary, in his judgment, to explore the feasibility of
replacing such branch with other adequate banking facilities.
  5. In this section:
  (a) "banking organization" means and includes each bank, trust
company, savings bank, and savings and loan association as those terms
are defined in section two of this chapter and each out-of-state state
bank authorized to operate and maintain a branch pursuant to article
five-C of this chapter;
  (b) "branch office", "branch", or "office" shall not include
electronic branches as defined by general regulation of the banking
board, but shall include a public accommodation office;
  (c) "financial services" means and includes demand and time deposit
accounts, check cashing services, deposit and withdrawal transactions,
sale of bank or travellers checks and money orders, processing loan
applications, acceptance of loan repayments, and any related services;
and
  (d) "facility" and "facilities" means and includes any building,
structure, vehicle, unit, machine, or device, permanent or temporary,
mobile or stationary, which provides or dispenses financial services of
any kind or description.
  6. No provision of this section or any rule or regulation adopted
pursuant thereto shall be deemed or construed as impairing the ability
of any banking organization to close any branch office after complying
with the provisions of subdivision two of this section.

  S 29. Branch offices; public accommodation offices; approval or
refusal; certificate; investigation fee. When a banking organization
seeks to open a branch office or public accommodation office, it shall
submit a written application to the superintendent. The application
shall contain such information as the superintendent deems necessary. At
the time of making such application, an investigation fee of six hundred
fifty dollars shall be paid to the superintendent for each branch office
or public accommodation office for which leave to open is sought. If the
superintendent finds that the opening of the branch office or public
accommodation office is consistent with the declaration of policy set
forth in section ten of this article and that the applicant is in
compliance with section twenty-eight-b of this article, he shall issue a
certificate in triplicate under his hand and the official seal of the
department authorizing the opening and occupation of such branch office
or public accommodation office and specifying the date on or after which
and the conditions under which it may be opened and the place where it
shall be located. The superintendent shall cause one of such triplicate
certificates to be transmitted to the applicant, another to be filed in
the office of the department and the third 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 not find that the opening of the
branch or public accommodation office is consistent with the declaration
of policy set forth in section ten of this article or that the applicant
is in compliance with section twenty-eight-b of this article, he shall
notify the applicant that the application has been denied.
  No investigation fee for branch applications shall be collected from
applicants if such branch applications are filed in conjunction with
proceedings under section one hundred thirty-six, three hundred twelve,
four hundred ten or subdivision eight of section six hundred five of
this chapter.
  A safe deposit company shall not be required to pay a fee on making an
application to open a branch.

  S 30. Unclaimed amounts; deposit by superintendent in trust;
preference; release of debtor. 1. After the completion of the voluntary
or involuntary liquidation of the business and property of any banking
organization or of the business and property in this state of any
foreign banking corporation, the superintendent may take and hold as
trustee for the owners thereof any amounts which remain due to and
unclaimed by any creditor, depositor, stockholder, shareholder, bailor
or depositor of property for hire or otherwise, or lessee of any safe,
vault or box. Whenever such amounts are received by the superintendent
and he is not in possession of the business and property of such banking
organization or corporation, he shall give his receipt for such amounts
and shall forthwith deposit them in one or more banks, trust companies,
or savings banks, to the credit of the superintendent of banks in trust
for the persons entitled thereto. In a liquidation by the superintendent
he shall deposit such amounts in like manner at the times provided in
article thirteen of this chapter.
  2. All such deposits by the superintendent shall be entitled to
priority of payment in case of the insolvency or voluntary or
involuntary liquidation of the depositary on an equality with any other
priority given by this chapter.
  3. The superintendent shall before the close of each fiscal year pay
into the state treasury all interest received by him on such unclaimed
amounts since the last such payment.
  4. Any banking organization or foreign banking corporation with
respect to which the superintendent has received unclaimed amounts as
trustee for the owners thereof pursuant to the provisions of this
section shall, from and after the date when such amounts are so
received, be relieved and held harmless from any and all liability for
any claim or claims which exist at such time with respect to such
unclaimed amounts, or which may thereafter be made or may come into
existence on account of or in respect of any such unclaimed amounts, and
no action shall be maintained against such banking organization or
corporation or any officer, partner, agent, employee, attorney,
shareholder or stockholder thereof for the recovery of any such
unclaimed amounts, or for interest thereon subsequent to the date of
receipt by the superintendent or for damages alleged to have resulted
from the payment thereof to the superintendent.

  S 31. Index of persons entitled to unclaimed amounts; payment to
persons entitled; deduction of service charge. An index shall be kept in
the office of the department of the names of all persons for whom the
superintendent holds in trust any unclaimed amounts. The superintendent
may pay over any such amount which he holds in trust amounting to over
three dollars to any person who shall show by evidence satisfactory to
the superintendent that he is lawfully entitled to receive it. In cases
of doubt or conflicting claims, he may require of the claimant an order
of the supreme court authorizing and directing the payment thereof. The
superintendent shall be held harmless and shall not be liable to any
subsequent claimant for any payment made by him in good faith.  The
superintendent shall deduct from the amount of any claim of fifty
dollars or more allowed by him or ordered by the court to be paid a
service charge of one percentum of the amount thereof, but in no event
less than one dollar and, in addition, any costs, disbursements and
legal fees which the court may allow. The amount so deducted shall be
paid into the state treasury in accordance with the provisions of
section seventeen of this chapter.

  S 32. Insurance of deposits and share accounts.
  1. Within one year from the date this section shall have become law,
every bank, trust company, savings bank, savings and loan association
and credit union shall obtain insurance of deposits and share accounts,
as the case may be:
  (a) from the Federal Deposit Insurance Corporation, in the case of a
bank, trust company, savings bank or savings and loan association;
  (b) from the Administrator of the National Credit Union
Administration, in the case of a credit union; or
  (c) in the case of any such banking organization, from any other
insurer upon such terms and conditions as the superintendent shall
approve.
  2. No banking organization whose deposit or share accounts are so
insured shall hereafter voluntarily terminate such insured status.
  3. Notwithstanding the foregoing provisions of this section, the
banking board shall have the power, by a three-fifths vote of all its
members, to promulgate such general or specific regulations as it deems
necessary and proper (a) to implement and define the provisions of this
section, (b) to exempt from the requirements of this section any banking
organization which does not receive deposits or share accounts from the
general public, and (c) for good cause shown, to extend for up to two
years the period within which any banking organization must comply with
the requirements of subdivision one of this section.

  S 33. Reserve depositaries. The superintendent shall, in his
discretion, upon the nomination of any bank, trust company, industrial
bank, foreign banking corporation authorized to maintain a branch or
branches in this state or private banker, designate as a depositary for
its reserves on deposit a bank, trust company, private banker or
national bank located in this state, or a banking corporation located
elsewhere in the United States if such banking corporation shall make
such reports as the superintendent may prescribe and shall submit to
such examinations as he may deem necessary.  No such bank, trust
company, private banker, national bank or banking corporation may be a
depositary of any such reserves unless it shall have a combined capital
and surplus of at least
  (1) One million dollars, if located in a borough in this state which
has a population of one million five hundred thousand or over;
  (2) Seven hundred and fifty thousand dollars, if located in a borough
in this state which has a population of one million or over and less
than one million five hundred thousand or in a city in this state not
divided into boroughs which has a population of four hundred thousand or
over;
  (3) Five hundred thousand dollars, if located elsewhere in this state;
  (4) Two million dollars, if located outside this state.
  No bank, trust company, private banker or national bank located in a
borough having a population of one million five hundred thousand or over
which does not have a combined capital and surplus of at least two
million dollars, may be a depositary for such reserves unless it shall
have a combined capital and surplus greater than the combined capital
and surplus of the bank, trust company, industrial bank, foreign banking
corporation authorized to maintain a branch or branches in this state or
private banker depositing such reserves.

  S 34. Superintendent as attorney to accept service of process.
Whenever pursuant to any provision of this chapter, the superintendent
shall have been duly appointed attorney to receive service of process
for any individual, partnership, unincorporated association or
corporation, such service shall be made by personally delivering
duplicate copies of the process to and leaving them with the
superintendent or any deputy superintendent. Service of process so made
shall be deemed to have been made within the territorial jurisdiction of
any court in this state. The superintendent or deputy superintendent
shall forthwith forward by mail, postage prepaid, a copy of every
process served upon him in accordance with this section, directed to the
person last designated by such individual, partnership, unincorporated
association or corporation in accordance with the provisions of this
chapter to receive such process on his or its behalf. For each service
of process upon the superintendent or a deputy, he shall collect the sum
of two dollars, which shall be paid by the plaintiff or moving party at
the time of such service. The term process when used in this section,
includes any writ, summons, petition or order whereby any suit, action
or proceeding shall be commenced.

  S 36. Examinations; right of inspection; penalties for refusing to
permit examination. 1. The superintendent shall have the power to
examine every banking organization, every bank holding company and any
non-banking subsidiary thereof (as such terms "bank holding company" and
"non-banking subsidiary" are defined in article three-A of this chapter)
and every licensed lender at any time prior to its dissolution whenever
in his judgment such examination is necessary or advisable.
  2. At least once in each calendar year upon such date or dates within
each such period as in his discretion he deems proper, the
superintendent shall cause every banking organization to be examined;
provided, however, that:
  (a) the provisions of this subdivision shall not be applicable to an
investment company unless (i) such investment company has been
authorized by the banking board to receive deposits, in accordance with
the terms of subdivision three of section five hundred eight of this
chapter, (ii) a bank, trust company or industrial bank, or any two or
more of such organizations, shall own an aggregate of twenty-five per
centum or more of the capital stock of such investment company, or (iii)
such investment company is a corporation which, under the terms of
subdivision six of this section, is deemed for the purposes of this
section to be a corporation affiliated with a corporate banking
organization, and
  (b) the superintendent may extend the examination interval from at
least once in each calendar year to at least once in each eighteen month
period if the banking organization to be examined:
  (1) has total assets of less than two hundred fifty million dollars;
  (2) is well-capitalized, which for purposes of this paragraph is
defined as having capital which significantly exceeds the required
minimum level for each relevant capital measure or as