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

                                  6236

                            I N  S E N A T E

                               (PREFILED)

                             January 6, 2016
                               ___________

Introduced  by Sen. HAMILTON -- 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 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 227 of the laws
of 2013, is 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, (ii) section one hundred ninety-one of this chapter for a
public accommodation office, (iii) section six  hundred  one-b  of  this
chapter  for  approval  of a merger or purchase of assets, or (iv) under
section one hundred five-a, two hundred forty-a or three  hundred  nine-
ty-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 or notice to which the superintendent of finan-
cial services 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 ASSESS-
MENT 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 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, ANNU-
AL DATA FOR THE INSTITUTION AS FOLLOWS: LOANS FOR HOUSING LOW AND MODER-
ATE-INCOME  RESIDENTS OF LOW AND MODERATE-INCOME AREAS, AND THE SCOPE OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD00886-01-5

S. 6236                             2

EFFORTS TO MARKET HOUSING AND SMALL BUSINESS LOANS IN LOW AND  MODERATE-
INCOME  AREAS;  THE  AMOUNT  OF LOANS TO FARMS, AND LOANS TO SMALL BUSI-
NESSES THAT PROVIDE SERVICES TO LOW AND MODERATE-INCOME RESIDENTS OF LOW
AND MODERATE-INCOME AREAS; FINANCIAL INVESTMENTS IN AND CONTRIBUTIONS TO
NONPROFIT LOCAL COMMUNITY DEVELOPMENT OR REDEVELOPMENT PROJECTS OR ENTI-
TIES;  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 EXPLANA-
TION and any written communications from  the  department  of  financial
services to a banking institution relating to such assessment AND EXPLA-
NATION 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  superintendent
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.