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

                                  5004

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to the definition  of  bank
  holding company

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

  Section 1.  Subdivision 2 of section 142-a  of  the  banking  law,  as
amended  by  chapter  217  of  the  laws  of 2010, is amended to read as
follows:
  2. As used in this section, the term "control" means  the  possession,
directly or indirectly, of the power to direct or cause the direction of
the  management  and  policies of a banking institution, whether through
the ownership of voting stock of such banking institution, the ownership
of voting stock of any company which possesses such power or  otherwise.
Control shall be presumed to exist if any company, directly or indirect-
ly,  owns,  controls  or  holds with the power to vote ten per centum or
more of the voting stock of any banking institution or  of  any  company
which  owns, controls or holds with power to vote ten percent or more of
the voting stock of such banking institution, but  no  person  shall  be
deemed to control a banking institution solely by reason of his being an
officer  or  director of such banking institution or company. As used in
this section, the terms "bank holding company" and "banking institution"
shall have the meanings as defined in section one hundred  forty-one  of
this  article,  except  that the definition of "bank holding company" is
modified to change  the  phrase  "a  banking  institution"  wherever  it
appears  therein  to  "[one]  TWO  or more banking institutions" and the
definition of "banking institution" is modified to add a national  bank-
ing association, the principal office of which is located in this state.
  S 2. Paragraph (a) of subdivision 1 of section 105 of the banking law,
as  amended  by  chapter  217 of the laws of 2010, is amended to read as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11212-01-1
              

S. 5004                             2

  (a) No bank or trust company or officer, director, agent  or  employee
thereof, shall transact any part of its usual business of banking at any
place  other  than  its  principal  office,  except that a bank or trust
company may open and occupy one or more branch offices at  any  location
in the state, provided: (i) that the requirements of section twenty-nine
of this chapter are met and (ii) that, except for the city or village in
which  its  principal  office  is located, in no event shall a branch be
opened and occupied pursuant to this subdivision in a  city  or  village
with  a population of fifty thousand or less in which is already located
the principal office of another bank, trust company or national  banking
association,  other  than  a  bank holding company, if such bank holding
company is a banking institution, or a  banking  subsidiary  of  a  bank
holding company (as such terms "bank holding company", "banking institu-
tion"  and  "banking  subsidiary"  are  defined  in  section one hundred
forty-one of this chapter) except that the definition of  "bank  holding
company"  is modified to change the phrase "a banking institution" wher-
ever it appears therein to "[one] TWO or more banking institutions"  and
the  definition  of  "banking institution" is modified to add a national
banking association,  the  principal  office  of  which  institution  is
located  in  this state, except, in the case of a conversion pursuant to
the provisions of this  article,  branch  offices  occupied  immediately
prior  thereto or except for the purpose of acquiring by merger, sale or
otherwise the business and property of a bank, trust company or national
banking association, whether in liquidation or  doing  business  in  the
usual course.
  S 3. Paragraph (c) of subdivision 2 of section 240 of the banking law,
as  amended  by  chapter  217 of the laws of 2010, is amended to read as
follows:
  (c) Except for the city or village in which its  principal  office  is
located,  no  branch office may be opened and occupied pursuant to para-
graph (a) of this subdivision in any city or village with  a  population
of  fifty thousand or less and in which is already located the principal
office of a bank, trust company or national banking  association,  other
than  a  bank holding company, if such bank holding company is a banking
institution, or a banking subsidiary of a bank holding company, as  such
terms "bank holding company", "banking institution" and "banking subsid-
iary"  are  defined  in  section  one  hundred forty-one of this chapter
except that the definition of "bank  holding  company"  is  modified  to
change the phrase "a banking institution" wherever it appears therein to
"[one]  TWO or more banking institutions" and the definition of "banking
institution" is modified to add  a  national  banking  association,  the
principal office of which institution is located in this state.
  S 4. Paragraph (b) of subdivision 2 of section 396 of the banking law,
as  amended  by  chapter  217 of the laws of 2010, is amended to read as
follows:
  (b) Except for the city or village in which its  principal  office  is
located,  no branch office may hereafter be opened and occupied pursuant
to paragraph (a) of this subdivision in any city or village with a popu-
lation of less than thirty thousand and in which is already located  the
principal  office  of  a bank, trust company or national banking associ-
ation, other than a bank holding company, if such bank  holding  company
is  a  banking  institution,  or  a banking subsidiary of a bank holding
company, as such terms "bank holding company", "banking institution" and
"banking subsidiary" are defined in section  one  hundred  forty-one  of
this  chapter  except  that  the definition of "bank holding company" is
modified to change  the  phrase  "a  banking  institution"  wherever  it

S. 5004                             3

appears  therein  to  "[one]  TWO  or more banking institutions" and the
definition of "banking institution" is modified to add a national  bank-
ing association, the principal office of which institution is located in
this state.
  S 5. This act shall take effect immediately.