S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1362

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M.  of  A.  JEFFRIES  --  Multi-Sponsored by -- M. of A.
  CAMARA, FARRELL, PHEFFER, TOWNS --  read  once  and  referred  to  the
  Committee on Banks

AN ACT to amend the banking law, in relation to assessment of the record
  of  performance  of banking institutions in helping to meet the credit
  needs of local communities

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The opening paragraph of paragraph (a) of subdivision 3 of
section 28-b of the banking law, as amended by chapter 315 of  the  laws
of 2008, is amended to read as follows:
  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 a notice submitted 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 SHALL INCLUDE A SEPARATE DISCUSSION OF THE
RECORD OF THE BANKING INSTITUTION PERTAINING TO EACH OF  THE  ASSESSMENT
FACTORS  LISTED  IN  ALL  OF  THE  SUBPARAGRAPHS OF THIS PARAGRAPH AND A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00195-01-1

A. 1362                             2

COMPLETE EXPLANATION OF HOW EACH OF THESE FACTORS WAS CONSIDERED BY  THE
DEPARTMENT IN MAKING THE ASSESSMENT. THIS EXPLANATION SHALL INCLUDE, BUT
NOT BE LIMITED TO, ANNUAL DATA FOR THE INSTITUTION AS FOLLOWS: LOANS FOR
HOUSING  LOW  AND  MODERATE-INCOME  RESIDENTS OF LOW AND MODERATE-INCOME
AREAS, AND THE SCOPE OF EFFORTS TO MARKET  HOUSING  AND  SMALL  BUSINESS
LOANS  IN  LOW  AND MODERATE-INCOME AREAS; THE AMOUNT OF LOANS TO FARMS,
AND LOANS TO SMALL BUSINESSES THAT PROVIDE SERVICES TO  LOW  AND  MODER-
ATE-INCOME RESIDENTS OF LOW AND MODERATE-INCOME AREAS; FINANCIAL INVEST-
MENTS  IN  AND CONTRIBUTIONS TO NONPROFIT LOCAL COMMUNITY DEVELOPMENT OR
REDEVELOPMENT PROJECTS OR ENTITIES; MANPOWER RESOURCES COMMITTED TO  LOW
AND MODERATE-INCOME HOUSING LENDING AND SMALL BUSINESS LENDING AND OTHER
FORMS  OF  ADMINISTRATIVE SUPPORT FOR SUCH LENDING; AND PARTICIPATION IN
GOVERNMENTALLY OR  PRIVATELY  SPONSORED  LOAN  INSURANCE,  GUARANTEE  OR
SUBSIDY  PROGRAMS  FOR  HOUSING,  SMALL BUSINESSES AND SMALL FARMS. Such
assessment AND EXPLANATION and any written communications from the bank-
ing department to a banking institution relating to such assessment  AND
EXPLANATION 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 AND EXPLANATION, the super-
intendent shall review all reports and documents filed WITH HIM  OR  HER
pursuant  to  subdivision  one  of  this section and any signed, written
comments received by the superintendent which specifically relate to the
banking institution's performance in helping to meet the credit needs of
its community.  In  addition,  the  superintendent  shall  consider  the
following  factors  in  assessing AND EXPLAINING a banking institution's
record of performance:
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition,  amend-
ment  and/or repeal of any rules or regulations necessary for the imple-
mentation of the foregoing section of this act on its effective date are
authorized to be made on or before such effective date.