LBD09332-02-4
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term banking institution when used in this section shall mean and
include all banks, trust companies, savings banks, savings and loan
associations, credit unions, mortgage bankers, exempt organizations as
defined in article twelve-D of this chapter and foreign banking corpo-
rations whether incorporated, chartered, organized or licensed under the
laws of this state or any other state or the United States.
S 4. Subdivision 2 of section 14-c of the banking law, as added by
chapter 19 of the laws of 1978 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
2. The superintendent of financial services may alter or amend rules
and regulations or promulgate additional rules and regulations as [it]
HE OR SHE deems necessary and proper to effectuate the provisions of
subdivision one.
S 5. Subdivision 10 of section 100-c of the banking law, as added by
chapter 239 of the laws of 1986 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
10. The superintendent of financial services shall promulgate such
regulations and rules as [it] HE OR SHE considers appropriate to govern
the administration of common trust funds and short term investment
common trust funds.
S 6. Subdivision 4 of section 103 of the banking law, as amended by
chapter 313 of the laws of 2001, the opening paragraph and the fifth
undesignated paragraph as further amended by section 104 of part A of
chapter 62 of the laws of 2011, is amended to read as follows:
4. Make a loan upon the security of real estate within or without this
state which does not comply with any such rules or regulations as the
superintendent of financial services may prescribe.
No loan shall be made under the provisions of this subdivision except
upon the written and signed certificate of an appraiser appointed pursu-
ant to policies established by the board of directors, certifying to the
value of the premises according to his judgment.
The provisions of this subdivision shall not constitute the authority
to make a loan to a natural person upon the security of a mortgage which
is not a first lien.
Where the collateral for any loan consists partly of real estate secu-
rity and partly of other security, including a guarantee or endorsement
by or an obligation or commitment of a person other than the borrower,
only the amount by which the loan exceeds the value as collateral of
such other security, as found in good faith by a duly authorized officer
of such bank or trust company, at the time of the making of the loan or
commitment therefor, shall be considered a loan upon the security of
real estate, provided, that in no event shall a loan be considered a
loan upon the security of real estate (i) where the principal amount of
any real estate security taken therefor is less than fifteen per centum
of the amount of such loan or (ii) where the loan is payable in monthly
or quarterly installments over a period not to exceed one hundred twen-
ty-one months and does not exceed twenty thousand dollars and is for the
purpose of paying the cost of any repairs, alterations or improvements
upon, or in connection with, or, as the superintendent may authorize,
the equipping of existing structures or the building of new structures
by the owners thereof or by the lessees under a lease expiring not less
than six months after the maturity of the loan or (iii) where the loan
is fully guaranteed or insured by the United States or a state, or any
department, agency or instrumentality thereof, and for the payment of
which loan the full faith and credit of the United States or of such
state is pledged and if under the terms of the guaranty or insurance
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agreement the bank or trust company will be assured of repayment in
accordance with the terms of the loan or (iv) where there is a binding
and valid commitment or agreement by a financially responsible lender,
purchaser or other financially responsible party either directly with
the lending bank or trust company or which is for the benefit of, or has
been assigned to, the lending bank or trust company and pursuant to
which commitment, agreement or assignment, the lender, purchaser or
other party is required to advance to the lending bank or trust company
within thirty months from the date of such commitment or agreement the
full amount of the loan to be made by the lending bank or trust company
upon the security of real estate improved by a building or buildings, or
to be improved by a building or buildings in the process of
construction, the major portion of which building is used, or in the
case of a building under construction is to be used, for residential,
business, manufacturing or agricultural purposes, and where pursuant to
the terms and provisions of such commitment or agreement such advance
shall be made prior to or upon the maturity of the loan by the lending
bank or trust company.
Real estate security for purposes of this section shall not include
(a) an assignment of rents under a lease, (b) a mortgage or other lien
upon a leasehold, (c) a mortgage or other lien upon leasehold, royalty
or other rights in oil, gas, minerals, standing timber, or other
products of land, (d) a mortgage or other lien made or given upon real
estate and taken as collateral security for loans to a borrower,
provided, that at the time of the making of the loan or commitment
therefor, repayment thereof is reasonably expected to be made out of the
operations of such borrower or of the mortgagor, or (e) such mortgages
or other liens on property as may be specifically exempted from the
limitations and restrictions of this subdivision by the superintendent
of financial services by general or specific regulations [adopted by a
three-fifths vote of all its members]. Nothing in this paragraph shall
be construed to imply that security of a kind not mentioned herein is to
be deemed real estate security.
The limitations and restrictions contained in this subdivision shall
not prevent the acceptance of any real estate security to secure the
payment of a debt previously contracted in good faith. Every mortgage
and every assignment of a mortgage taken or held by such bank or trust
company shall immediately be recorded or registered in its name in the
office of the clerk or the proper recording officer of the county in
which the real estate described in the mortgage is located, except that
where the underlying real estate is located outside the state of New
York such mortgage or assignment may be recorded or registered in the
name of a duly authorized nominee, and except that if such mortgage or
assignment of mortgage or of an interest therein shall be taken from a
corporation organized under the banking law or all of the capital stock
of which is owned by not less than twenty savings banks of this state,
the bank or trust company may hold such mortgage or assignment unre-
corded unless the superintendent shall direct the bank or trust company
to record the same. The recording or registering of assignments of mort-
gages shall not be required when not less than ten mortgages are
assigned as security for a loan, the term of which does not exceed
twelve months.
Any bank or trust company may renew from time to time any loan upon
the security of real estate lawfully made by it prior to June thirtieth,
nineteen hundred thirty-seven.
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None of the prohibitions and restrictions contained in this subdivi-
sion shall apply to any corporation all of the capital stock of which is
owned by not less than twenty savings banks of this state.
S 7. Paragraph (d) of subdivision 8 of section 108 of the banking law,
as added by chapter 344 of the laws of 1974, such subdivision as renum-
bered by chapter 512 of the laws of 1977, and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
(d) The superintendent of financial services may promulgate such regu-
lations as [it] HE OR SHE deems necessary and proper to implement and
define the provisions of this subdivision. The superintendent of finan-
cial services may prescribe maximum charges from time to time, but not
more often than once in any six month period, and shall provide reason-
able notice to the public of any change in such maximum charges, of the
effective date of such change, which shall not be less than seven days
following the adoption of such change by the superintendent of financial
services, and of any rule or regulation adopted pursuant to this subdi-
vision.
S 8. Section 111 of the banking law, as amended by chapter 360 of the
laws of 1984 and as further amended by section 104 of part A of chapter
62 of the laws of 2011, is amended to read as follows:
S 111. Profits; credits to surplus fund and to undivided profits. In
any case where the combined capital stock, surplus fund and undivided
profits of a bank or trust company do not equal ten per centum of its
net deposit liabilities, the superintendent of financial services may in
[its] HIS OR HER discretion require such bank or trust company at the
close of each accounting period to credit its surplus fund with a
portion of its net profits for such period, not to exceed ten per centum
thereof, until its combined capital stock, surplus fund and undivided
profits equal ten per centum of its net deposit liabilities. For the
purposes of this section, the term "net deposit liabilities" shall mean
total deposits including all amounts due to national banks, banks, bank-
ers, trust companies and savings banks, the amounts due on certified and
cashier's checks, and for unpaid dividends less the amounts of balances
due from national banks, banks, bankers, and trust companies and cash
items in process of collection payable immediately upon presentation in
the United States.
S 9. Paragraph (b) of subdivision 3 of section 130 of the banking
law, as amended by chapter 217 of the laws of 2010 and as further
amended by section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
(b) The superintendent of financial services shall have the power to
determine by regulation who shall be considered, under the provisions of
this subdivision, to be an executive officer, and by a general or
specific regulation[, upon a three-fifths vote of all its members,] to
grant permission to an executive officer of a bank or trust company to
be an executive officer, director or trustee or both an executive offi-
cer and director or a trustee of another bank or trust company, savings
bank, or savings and loan association, national bank, federal savings
bank or federal savings association, the principal office of which is
located in this state, bank holding company, or foreign banking corpo-
ration maintaining a branch in this state. Such permission may be grant-
ed only if in the judgment of the superintendent of financial services
such service by the executive officer will be consistent with the policy
of the state of New York as declared in section ten of this chapter. The
superintendent of financial services shall have the power to revoke such
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permission [by a like vote] whenever [it] HE OR SHE finds, after reason-
able notice and an opportunity to be heard, that the public interest
requires such revocation.
S 10. Subdivision 4 of section 234-b of the banking law, as added by
chapter 883 of the laws of 1980 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
4. The superintendent of financial services is authorized to promul-
gate such regulations as [it] HE OR SHE may deem necessary or proper to
implement the provisions of this section and the proper exercise of the
powers granted by this section.
S 11. Section 380-h of the banking law, as added by chapter 883 of
the laws of 1980, subdivisions 1 and 4 as further amended by section 104
of part A of chapter 62 of the laws of 2011, is amended to read as
follows:
S 380-h. Trust powers. 1. The superintendent of financial services is
authorized and empowered to grant permission to a savings and loan asso-
ciation to exercise any or all of the powers specified in sections one
hundred, one hundred-a, one hundred-b and one hundred-c of this chapter.
In passing upon applications for permission to exercise any such powers,
the superintendent of financial services may take into consideration the
amount of surplus of the applying association, whether or not such
surplus is sufficient under the circumstances of the case, the needs of
the community to be served and any other facts and circumstances that
seem [to it] proper, and may grant or refuse it permission accordingly.
2. Whenever the laws of this state require a trust company acting in a
fiduciary capacity to deposit securities with the state authorities for
the protection of private or court trusts, a savings and loan associ-
ation, so acting, is empowered to make similar deposits of securities.
4. The superintendent of financial services is authorized to promul-
gate such regulations as [it] HE OR SHE may deem necessary or proper to
implement the provisions of this section and the proper exercise of the
powers granted by this section.
S 12. Section 455 of the banking law, as added by chapter 608 of the
laws of 1996, subdivisions 1 and 3 as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
S 455. Trust powers. 1. The superintendent of financial services is
authorized and empowered to grant permission to a credit union to exer-
cise any or all of the powers specified in sections one hundred, one
hundred-a, one hundred-b and one hundred-c of this chapter. In passing
upon applications for permission to exercise any such powers, the super-
intendent of financial services may take into consideration the amount
of net worth of the applying credit union, whether or not such net worth
is sufficient under the circumstances of the case, the needs of the
community to be served and any other facts and circumstances that seem
[to it] proper, and may grant or refuse it permission accordingly.
2. Whenever the laws of this state require a trust company acting in a
fiduciary capacity to deposit securities with the state authorities for
the protection of private or court trusts, a credit union, so acting, is
required and empowered to make similar deposits of securities.
3. The superintendent of financial services is authorized to promul-
gate such regulations as [it] HE OR SHE may deem necessary or proper to
implement the provisions of this section and the proper exercise of the
powers granted by this section.
S 13. Paragraph (a) of subdivision 1 of section 595 of the banking
law, as amended by chapter 571 of the laws of 1986 and as further
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amended by section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
(a) Through a course of conduct, the licensee or registrant has
violated any provisions of this article, or any rule or regulation
promulgated by the superintendent of financial services[, or any rule or
regulation prescribed by the superintendent] under and within the
authority of this article or of any other law, rule or regulation of
this state or the federal government;
S 14. Subdivision 7 of section 600 of the banking law, as amended by
chapter 315 of the laws of 2008 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
(7) One or more subsidiaries or affiliates of a bank, trust company,
savings bank or savings and loan association, which are not a bank,
trust company, savings bank or savings and loan association, as those
terms are defined in section two of this chapter, with the bank, trust
company, savings bank or savings and loan association of which it is a
subsidiary or affiliate, as the superintendent of financial services
shall approve and enter on its records; provided, however, that nothing
in this subdivision shall be deemed to authorize a bank, trust company,
savings bank or savings and loan association to exercise any power or
engage in any activity that it may not exercise or engage in pursuant to
this chapter. The superintendent of financial services may promulgate
such regulations as [it] HE OR SHE deems necessary and proper to imple-
ment and define the provisions of this subdivision. Nothing in this
subdivision shall alter, affect or impair any regulation or resolution
adopted, or that may be adopted, by the superintendent of financial
services, pursuant to section twelve-a or former sections fourteen-g or
fourteen-h of this chapter.
S 15. This act shall take effect immediately.