S. 4366 2
recommendation in the matter]. [Such] AN EXTENSION OF SUCH NINETY DAY
period [of ninety days] may be [extended] REQUESTED, by a written
[consent] REQUEST executed by a majority of the persons from whom the
superintendent received such organization certificate or private bank-
er's certificate, for such additional reasonable period of time as may
be required for applicants to comply with conditions precedent stipu-
lated by the superintendent as being a prerequisite to his [recommenda-
tion to the superintendent of financial services] OR HER APPROVAL. THE
SUPERINTENDENT, IN THE SUPERINTENDENT'S SOLE DISCRETION, SHALL DETERMINE
WHETHER TO GRANT SUCH AN EXTENSION.
2. [If three-fifths of the members of the board, after consideration
of all relevant information available to them, shall vote for approval,
the] THE superintendent[, if he is still satisfied, upon the consider-
ations set forth in subdivision one of this section, that such proposed
corporation or private banker should be permitted to engage in busi-
ness,] shall [approve such certificate and] ALSO endorse upon each of
the duplicates the date of such approval. [He] THE SUPERINTENDENT shall
forthwith cause notice of such approval to be given to the proposed
incorporators or private banker and one of the duplicate certificates
[to] SHALL 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 superintendent of financial
services] 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 superintendent of financial
services 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 ONE HUNDRED THIRTY-SIX, 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 2. Subdivisions 1 and 3 of section 25 of the banking law, subdivi-
sion 1 as amended by chapter 512 of the laws of 1977 and subdivision 3
as amended by chapter 561 of the laws of 1946, are amended to read as
follows:
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] THE SUPERINTENDENT
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 EXECUTE UNDER the official seal
S. 4366 3
of the department, in triplicate, an authorization certificate to the
person or persons named in such organization certificate or private
banker's certificate. [The] NOTWITHSTANDING THE PRECEDING SENTENCE, IF
THE SUPERINTENDENT DETERMINES IT IS CONSISTENT WITH THE DECLARATION OF
POLICY CONTAINED IN SECTION TEN OF THIS ARTICLE, THE superintendent may
extend the period within which [he] THE SUPERINTENDENT may issue the
authorization certificate by (I) an additional [sixty] NINETY days,
provided, however, that he OR SHE shall have determined that such exten-
sion 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] OR OTHERWISE, OR
(II) SUCH LONGER PERIOD OF TIME HE OR SHE SHALL DEEM APPROPRIATE,
PROVIDED, HOWEVER, THAT HE OR SHE SHALL HAVE DETERMINED THAT EXTRAOR-
DINARY CIRCUMSTANCES EXIST. 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 authori-
zation certificate filed in the offices of the superintendent and the
county clerk shall be attached to the copies of the organization certif-
icate or private banker's certificate previously filed and such certif-
icates shall be recorded in the records of incorporation therein.
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 with-
in which such business may be commenced has been extended by the super-
intendent. Upon satisfactory cause being shown, the superintendent may
grant [an extension for a period of not more than one year] ONE OR MORE
EXTENSIONS. Such extension shall be granted by order executed, transmit-
ted and filed in the manner provided for an authorization certificate in
subdivision one of this section.
S 3. Subdivision 2 of section 28-b of the banking law is REPEALED.
S 4. The opening paragraph and subparagraph 12 of paragraph (a) of
subdivision 3 of section 28-b 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, are amended to read as follows:
When taking any action on an application OR NOTICE made by a banking
institution under (I) section one hundred five, two hundred twenty-four,
two hundred forty, or three hundred ninety-six of this chapter for a
branch office [or under], (II) section one hundred ninety-one of this
chapter for a public accommodation office [or under], (III) 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] (IV) under section one hundred five-a, two hundred
forty-a or three hundred ninety-six-a of this chapter for the use or
S. 4366 4
installation of an automated teller machine, point-of-sale terminal or
similar electronic facility or on any other application OR NOTICE to
which the superintendent of financial services shall by rule or regu-
lation make applicable the provisions of this section, the superinten-
dent 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 opera-
tion of the banking institution. Such assessment and any written commu-
nications from the department of financial services to a banking insti-
tution 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 super-
intendent shall review all reports and documents filed pursuant to
subdivision one of this section and any signed, written comments
received by the superintendent which specifically relate to the banking
institution's performance in helping to meet the credit needs of its
community. In addition, the superintendent shall consider the following
factors in assessing a banking institution's record of performance:
(12) Other factors that, in the judgment of the superintendent [and
superintendent of financial services], 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 insti-
tution's participation in credit counseling services.
S 5. Subdivision 5 of section 28-b of the banking law, as added by
chapter 361 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:
5. The superintendent [of financial services] 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.
S 6. Subdivision 1 of section 75-g of the banking law, as added by
chapter 9 of the laws of 1996 and as designated by section 4-a of part A
of chapter 57 of the laws of 1998, is amended and a new subdivision 2 is
added to read as follows:
1. [Within one year after the effective date of this article, and each
year thereafter,] BY THE FIFTEENTH DAY OF JANUARY, APRIL, JULY AND OCTO-
BER EACH YEAR (OR THE FOLLOWING BUSINESS DAY IF SUCH DAY IS NOT A BUSI-
NESS DAY), every banking institution which [has] HAD an automated teller
machine facility which [is] WAS in operation on [such date and such date
every year thereafter] THE FIFTEENTH DAY OF THE PRECEDING MONTH shall
submit a written COMPLIANCE report to the department on a form
prescribed by the superintendent, certifying that such automated teller
machine facility is in compliance with the provisions of this article or
any variance or exemption that has been granted, or if such facility is
not in compliance with such provisions, [such report shall state] STAT-
ING the manner in which such facility fails to meet such requirements[,
the reasons for such non-compliance and a plan to remedy any such non-
compliance]. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW
OR ANY OTHER LAW TO THE CONTRARY, SUCH REPORTS AND ANY OTHER REPORTS
REQUIRED BY THIS SECTION SHALL BE MADE BY ELECTRONIC MEANS, UNLESS THE
SUPERINTENDENT, IN HIS OR HER SOLE DISCRETION, GRANTS A WAIVER OF SUCH
ELECTRONIC FILING REQUIREMENTS, UPON GOOD CAUSE SHOWN.
S. 4366 5
2. IF ANY QUARTERLY COMPLIANCE REPORT REQUIRED BY SUBDIVISION ONE OF
THIS SECTION INDICATES ANY FAILURE TO MEET THE REQUIREMENTS OF THIS
ARTICLE, SUCH BANKING INSTITUTION SHALL SUBMIT A WRITTEN REPORT TO THE
DEPARTMENT, ON A FORM PRESCRIBED BY THE SUPERINTENDENT, NO LATER THAN
THE ELEVENTH BUSINESS DAY FOLLOWING SUCH QUARTERLY COMPLIANCE REPORT,
INDICATING WHETHER EACH SUCH FAILURE HAS BEEN CORRECTED AND, FOR ANY
FAILURE THAT HAS NOT BEEN CORRECTED, THE REASON FOR SUCH FAILURE AND THE
EXPECTED CORRECTION DATE. IF ANY SUCH FAILURE SHALL NOT HAVE BEEN
CORRECTED WITHIN TEN BUSINESS DAYS OF THE FILING DATE OF THE APPLICABLE
QUARTERLY COMPLIANCE REPORT, SUCH BANKING INSTITUTION SHALL, PROMPTLY
AFTER CORRECTING SUCH FAILURE, SUBMIT A WRITTEN REPORT TO THE DEPARTMENT
WITH THE DATE OR DATES OF EACH SUCH CORRECTION.
S 7. Subdivision 1 of section 75-j of the banking law, as amended by
section 11 of part O of chapter 59 of the laws of 2006, is amended to
read as follows:
1. Any banking institution found to be in violation of any provision
of section seventy-five-c of this article IN A QUARTERLY COMPLIANCE
REPORT UNDER SECTION SEVENTY-FIVE-G OF THIS ARTICLE OR OTHERWISE FOUND
BY THE DEPARTMENT TO BE IN VIOLATION OF ANY PROVISION OF SECTION SEVEN-
TY-FIVE-C OF THIS ARTICLE shall correct the violation within ten busi-
ness days after such finding. Where a banking institution fails to
correct [said violation within such period of time] ANY VIOLATION OF A
PROVISION OF SECTION SEVENTY-FIVE-C OF THIS ARTICLE WITHIN TEN BUSINESS
DAYS AFTER THE FILING OF SUCH REPORT OR A FINDING OF VIOLATION BY THE
DEPARTMENT, the superintendent may in a proceeding after notice and a
hearing, require [any] SUCH banking institution to pay a civil penalty
in an amount as determined pursuant to section forty-four of this chap-
ter, provided, however, that the aggregate penalty for all offenses with
respect to any one automated teller machine facility in any one proceed-
ing shall not exceed an amount as determined pursuant to section forty-
four of this chapter. For the purposes of this article, each violation
of section seventy-five-c of this article shall be considered a separate
and distinct violation.
S 8. Paragraphs (a) and (c) of subdivision 1 of section 103 of the
banking law, as amended by chapter 1 of the laws of 1983 and as further
amended by section 104 of part A of chapter 62 of the laws of 2011, are
amended to read as follows:
(a) The limitations in this subdivision shall not apply to (1) any
loan to the extent that the United States, this state or any city, coun-
ty, town, village or school district of this state, [any federal inter-
mediate credit bank, Federal National Mortgage Association, any federal
land bank, any bank for cooperatives organized under the laws of the
United States, any national mortgage association, any federal home loan
bank, the Small Business Administration] or any [other] department,
agency or instrumentality of the United States or this state designated
by the superintendent [of financial services] by general or specific
regulation [upon a three-fifths vote of all its members], has agreed to
pay the principal and interest thereof, or has guaranteed payment (by
guaranty or commitment to purchase or otherwise) of such principal and
interest, or is committed to supply, by loan, subsidy or otherwise,
funds sufficient to pay such principal and interest, or has otherwise
pledged its faith and credit for the payment of such principal and
interest; or (2) any loan secured by not less than a like amount (BASED
ON THEIR PRINCIPAL AMOUNT OR MARKET VALUE, WHICHEVER IS LOWER, AT THE
TIME THE LOAN IS MADE) of direct obligations [(based on their principal
amount or market value, whichever is lower, at the time the loan is
S. 4366 6
made)] of the United States or of this state or of any city, county,
town, village or school district of this state or of any such depart-
ment, agency or instrumentality of the United States or this state[; or
(3) when authorized by the superintendent, any loan to a savings bank of
this state or a corporation all of the capital stock of which is owned
by not less than twenty savings banks of this state] OR BY OBLIGATIONS
OTHERWISE FULLY GUARANTEED AS TO PRINCIPAL AND INTEREST BY THE UNITED
STATES.
(c) Loans (exclusive of any loan described in paragraph (a) of this
subdivision) to any state other than the state of New York, or to any
foreign nation, the New York State thruway authority, the Triborough
bridge and tunnel authority, The Port of New York Authority, a railroad
corporation, a municipal corporation of this state, a corporation
subject to the jurisdiction of a public service commission of this
state, or any international lending facility or public benefit corpo-
ration designated by the superintendent [of financial services] by
[general or specific] regulation [upon a three-fifths vote of all its
members], may equal but not exceed twenty-five per centum of the capital
stock, surplus fund and undivided profits of such bank or trust company.
S 9. Subdivision 1 of section 591 of the banking law, as added by
chapter 571 of the laws of 1986, paragraph (b) as amended by chapter 164
of the laws of 2003, is amended to read as follows:
1. The application for a license to be a mortgage banker shall be in
writing, under oath, and in the form prescribed by the superintendent.
NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER
LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN APPLICATION
FOR, OR RENEWAL OF, A LICENSE OR ANY OTHER SUBMISSION OR APPLICATION FOR
APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE, BE MADE OR EXECUTED BY
ELECTRONIC MEANS, INCLUDING THROUGH THE NMLSR OR OTHER ENTITIES DESIG-
NATED BY THE NMLSR IF HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFI-
CIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE. The application
shall contain the name and complete business and residential address or
addresses of the applicant. If the applicant is a partnership, associ-
ation, corporation or other form of business organization, the applica-
tion shall contain the names and complete business and residential
addresses of each member, director and principal officer thereof. Such
application shall also include a description of the activities of the
applicant, in such detail and for such periods, as the superintendent
may require; including:
(a) An affirmation of financial solvency noting such capitalization
requirements as may be required by the superintendent, and access to
such credit as may be required by the superintendent;
(b) The fingerprints of the applicant, which may be submitted to the
division of criminal justice services and the federal bureau of investi-
gation for state and national criminal history record checks;
(c) An affirmation that the applicant, or its members, directors or
principals as may be appropriate, are at least twenty-one years of age;
(d) Information as to the character, fitness, financial and business
responsibility, background and experiences of the applicant.
S 10. Subdivision 1 of section 591-a of the banking law, as amended by
section 53 of part O of chapter 59 of the laws of 2006, is amended to
read as follows:
1. An application to become registered as a mortgage broker shall be
in writing, under oath, in such form as shall be prescribed by the
superintendent, and shall be accompanied by the fingerprints of the
applicant. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR
S. 4366 7
ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN
APPLICATION FOR, OR RENEWAL OF, A LICENSE OR ANY OTHER SUBMISSION OR
APPLICATION FOR APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE, BE MADE OR
EXECUTED BY ELECTRONIC MEANS, INCLUDING THROUGH THE NMLSR OR OTHER ENTI-
TIES DESIGNATED BY THE NMLSR IF HE OR SHE DEEMS IT NECESSARY TO ENSURE
THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE. Such finger-
prints shall be submitted to the division of criminal justice services
for a state criminal history record check, as defined in subdivision one
of section three thousand thirty-five of the education law, and may be
submitted to the federal bureau of investigation for a national criminal
history record check. Such application shall contain the name and
complete business and residential address or addresses of the applicant,
or if the applicant is a partnership, association, corporation or other
form of business organization, the names and complete business and resi-
dential addresses of each member, director and principal officer there-
of. Such application shall also include an affirmation of financial
solvency noting such capitalization requirements as may be required by
the superintendent, and such descriptions of the business activities,
financial responsibility, educational background and general character
and fitness of the applicant as may be required by the superintendent.
Such application shall be accompanied by an investigation fee payable to
the superintendent as prescribed pursuant to section eighteen-a of this
chapter.
S 11. Subdivision 1 of section 595-b of the banking law, as amended by
chapter 155 of the laws of 2012, is amended to read as follows:
1. Establishment of grounds to impose a fine or penalty. In addition
to such other rules, regulations and policies as the superintendent may
promulgate to effectuate the purposes of this article, the superinten-
dent shall promulgate regulations and policies governing the establish-
ment of grounds to impose a fine or penalty with respect to the activ-
ities of a mortgage loan servicer. NOTWITHSTANDING ARTICLE THREE OF THE
STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTEN-
DENT MAY REQUIRE THAT AN APPLICATION FOR, OR RENEWAL OF, A LICENSE OR
ANY OTHER SUBMISSION OR APPLICATION FOR APPROVAL AS MAY BE REQUIRED BY
THIS ARTICLE, BE MADE OR EXECUTED BY ELECTRONIC MEANS, INCLUDING THROUGH
THE NMLSR OR OTHER ENTITIES DESIGNATED BY THE NMLSR IF HE OR SHE DEEMS
IT NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF
THIS ARTICLE.
S 12. Section 520-c of the general business law, as added by chapter 1
of the laws of 1994, subdivisions 1, 2, 3 and 5 as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
S 520-c. Credit information. 1. The department of financial services
shall establish A TELEPHONE NUMBER AND AN AREA ON ITS WEBSITE, OR
PROVIDE A LINK ON SUCH SITE TO OTHER WEBSITES WITH, a toll-free tele-
phone number service at which CUSTOMERS MAY OBTAIN information on annual
percentage rates, annual fees, per-transaction charges, late payment
fees, overlimit fees and grace periods for credit cards [can be
obtained] TO THE EXTENT READILY AVAILABLE TO THE DEPARTMENT. Every
issuer of credit cards to natural persons residing in this state shall
set forth on each solicitation, application and monthly billing state-
ment mailed or otherwise presented to such persons, a notice stating
"New York residents may contact the New York state department of finan-
cial services [to obtain a] BY TELEPHONE OR VISIT ITS WEBSITE FOR FREE
INFORMATION ON comparative [listing of] credit card rates, fees and
grace periods." Such notice shall be printed on the same side as the
S. 4366 8
disclosure of rates, fees and charges, in case of the solicitations and
applications, and on the same side as the notice of the balance of the
account and the amount due are printed, in the case of the monthly bill-
ing statement. The superintendent of financial services shall prescribe
the address and telephone number to be printed next to the notice. The
notice shall be in type no smaller than eight points. Issuers shall
include such notice in materials sent to residents of this state as
required under this section commencing October first, nineteen hundred
ninety-four.
2. [The superintendent of financial services shall develop and
distribute to all issuers of credit cards, no more than thirty days
after the effective date of this section, a form which shall be used for
the purpose of collecting information on annual percentage rates, annual
fees, per-transaction charges, late payment fees, overlimit fees and
grace periods governed by the terms of each type of credit card offered
by such issuer to natural persons residing in this state. Issuers shall
return the forms to the department of financial services no later than
one hundred fifty days after the effective date of this section, and
annually thereafter, but no later than April first of each year,
commencing in nineteen hundred ninety-five. The superintendent of finan-
cial services shall publish the information obtained from such forms and
make it available to New York residents upon request, commencing not
later than October first, nineteen hundred ninety-four, and annually
thereafter but not later than July first of each year.
3.] The superintendent of financial services is authorized to adopt
such rules and regulations as consistent with the provisions of this
section.
[4.] 3. For the purposes of this section:
(a) "Credit card" means any card issued pursuant to an agreement which
allows the holder of the card to obtain goods and services on the credit
of the issuer; and
(b) "Issuer" means any bank, trust company, savings bank, savings and
loan association, or branch of a foreign banking corporation the depos-
its 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, which issues
credit cards to natural persons residing in this state.
[5.] 4. The authority of the superintendent of financial services
pursuant to sections thirty-nine and forty-four of the banking law shall
extend to violations of this section by any issuer.
S 13. This act shall take effect immediately; provided, however that
sections six and seven of this act shall take effect on the first of
March next succeeding the date on which it shall have become a law or
such later date as the superintendent of financial services may deter-
mine necessary for the department of financial services to develop a
system for the automated reporting of compliance with the requirements
of article 2-AA of the banking law; provided that the superintendent of
financial services shall notify the legislative bill drafting commission
upon the development of such system of automated reporting in order that
the commission may maintain an accurate and timely effective data base
of the official text of the laws of the state of New York in furtherance
of effectuating the provisions of section 44 of the legislative law and
section 70-b of the public officers law.
