Senate Bill S7532

2023-2024 Legislative Session

Relates to removal and prohibition of directors, trustees, officers, members or partners of certain entities; repealer

download bill text pdf

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Current Bill Status - Passed Senate & Assembly


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-S7532 (ACTIVE) - Details

See Assembly Version of this Bill:
A7428
Law Section:
Banking Law
Laws Affected:
Rpld & add §41, Bank L

2023-S7532 (ACTIVE) - Summary

Provides for the removal and prohibition of directors, trustees, officers, members or partners of certain entities.

2023-S7532 (ACTIVE) - Sponsor Memo

2023-S7532 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7532
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 3, 2023
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the banking law, in relation to removal and  prohibition
   of directors, trustees, officers, members or partners of certain enti-
   ties; and to repeal certain provisions of such law related thereto

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 41 of the banking law is REPEALED and a new section
 41 is added to read as follows:
   § 41. REMOVAL AND PROHIBITION.  1.  GROUNDS  FOR  ENFORCEMENT  ACTION.
 WHENEVER  THE  SUPERINTENDENT  HAS  REASON TO BELIEVE THAT ANY DIRECTOR,
 TRUSTEE, OFFICER, MEMBER OR PARTNER, OR, IN THE CASE OF A FOREIGN  BANK-
 ING  CORPORATION,  THE  PERSON  IN CHARGE, OR AN OFFICER, OF A BRANCH OR
 AGENCY (FOR PURPOSES OF THIS SECTION, EACH A "COVERED  INDIVIDUAL"),  OF
 ANY  BANK,  TRUST  COMPANY, LIMITED PURPOSE TRUST COMPANY, PRIVATE BANK,
 SAVINGS BANK, SAFE DEPOSIT COMPANY, SAVINGS AND LOAN ASSOCIATION, CREDIT
 UNION, INVESTMENT COMPANY, BANK HOLDING COMPANY (AS SUCH TERM IS DEFINED
 IN ARTICLE  THREE-A  OF  THIS  CHAPTER),  FOREIGN  BANKING  CORPORATION,
 LICENSED  LENDER,  LICENSED  CASHER  OF CHECKS, BUDGET PLANNER, MORTGAGE
 BANKER, MORTGAGE LOAN SERVICER, MORTGAGE BROKER, LICENSED TRANSMITTER OF
 MONEY OR STUDENT LOAN SERVICER (FOR PURPOSES OF  THIS  SECTION,  EACH  A
 "COVERED  ENTITY") HAS, DIRECTLY OR INDIRECTLY: (A) CAUSED, FACILITATED,
 PERMITTED OR PARTICIPATED IN ANY VIOLATION BY A COVERED ENTITY OF A  LAW
 OR  REGULATION, ORDER ISSUED BY THE SUPERINTENDENT OR ANY WRITTEN AGREE-
 MENT BETWEEN SUCH COVERED ENTITY OR COVERED INDIVIDUAL  AND  THE  SUPER-
 INTENDENT; (B) ENGAGED OR PARTICIPATED IN ANY UNSAFE OR UNSOUND PRACTICE
 IN CONNECTION WITH ANY COVERED ENTITY; OR (C) ENGAGED OR PARTICIPATED IN
 ANY  WILLFUL  MATERIAL  ACT  OR  OMITTED  TO  TAKE ANY MATERIAL ACT THAT
 DIRECTLY CONTRIBUTED TO THE FAILURE OF A COVERED ENTITY; THE SUPERINTEN-
 DENT MAY BRING AN ACTION TO REMOVE SUCH COVERED INDIVIDUAL FROM OFFICE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11595-03-3
 S. 7532                             2
              

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