* § 12-a. Power of state chartered banking institutions to exercise
the rights of counterpart federally chartered banking institutions. 1.
Definitions. (a) As used in this section, "state chartered banking
institution" shall mean any bank, trust company, private banker, savings
bank, savings and loan association, foreign banking corporation, or
credit union.

(b) As used in this section and as is applicable, "federally chartered
banking institution" shall mean (i) any national banking association
organized pursuant to the National Bank Act of 1864, as amended, (12 USC
21 et seq.); (ii) any federal savings association as such term is
defined by the Federal Deposit Insurance Act, as amended, (12 USC
1813(b)(2)); (iii) a federal branch and agency of a foreign bank, as
such terms are defined by the International Banking Act of 1978, as
amended, (122 USC 3101); or (iv) a federal credit union, as such term is
defined by the Federal Credit Union Act, as amended, (12 USC 1752(1)).

(c) As used in this section, "charter" shall mean the organization
certificate or comparable document of a state banking institution, or
the license for a state branch or agency of a foreign banking
corporation, or a similar organizational document for a federal banking
institution or a federal branch or agency, and "chartered" shall mean
the formal act of the state or appropriate federal regulatory agency in
approving and conveying such charter of a banking institution.

(d) As used in this section, "federally permitted power" shall mean
any right, power, privilege or benefit, any activity, or any loan,
investment or transaction which a federally chartered banking
institution directly or through a subsidiary or subsidiaries, may
lawfully exercise or into which it may lawfully engage or enter.

(e) As used in this section "foreign banking corporation" shall mean a
banking corporation organized under the laws of a foreign country and
acting through a branch or agency licensed pursuant to section
twenty-six of this article.

(f) As used in this section, unless the context requires otherwise,
the term "subsidiary" shall have the same meaning as set forth in
subdivision five of section one hundred forty-one of this chapter,
except that (i) any reference therein to "bank holding company" shall be
deemed to refer to a "state chartered banking institution" as defined in
this section, and (ii) with respect to a credit union, the term
"subsidiary" as used in this section shall mean a "credit union
organization".

2. Pursuant to this section and notwithstanding any other provision of
law, except as otherwise provided in its charter, a state-chartered
banking institution may exercise any federally permitted power of its
counterpart federally chartered banking institution as herein set forth:

(a) a bank, private banker, or trust company may exercise any
federally permitted power of a national banking association;

(b) a savings bank or savings and loan association may exercise any
federally permitted power of a federal savings association;

(c) a foreign banking corporation acting through a branch may exercise
any federally permitted power of a foreign bank acting through a federal
branch;

(d) a foreign banking corporation acting through an agency may
exercise any federally permitted power of a foreign bank acting through
a federal agency;

(e) a credit union may exercise any federally permitted power of a
federal credit union.

Nothing contained in this section shall be deemed to permit a state
chartered banking institution to exercise any federally permitted power
except in a manner consistent with the following provisions of law, in
each case, as the terms contained in such provisions may be amended from
time to time:

(i) chapter one of the laws of nineteen hundred ninety-four;

(ii) chapter nine of the laws of nineteen hundred ninety-six; and

(iii) sections fourteen-c, twenty-eight-b, thirty-nine and forty-four
of this article, and sections six hundred five through six hundred
thirty-four of this chapter, and with respect to savings banks and
savings and loan associations, respectively, section two hundred forty
and section three hundred ninety-six of this chapter.

3. Except with respect to a federally permitted power approved
pursuant to subdivision four of this section, prior to any state
chartered banking institution initially exercising any federally
permitted power pursuant to this section, such banking institution shall
make an application individually or with one or more state chartered
banking institutions to the superintendent indicating that such
institution or institutions intend to exercise such federally permitted
power and the basis on which such institution or institutions believe
such power is a federally permitted power. The superintendent shall have
one hundred twenty days from receipt of the application to determine
whether it meets the requirements of this section, provided that such
period may be extended for an additional period of time with the written
consent of the applicant or applicants. If such application meets the
requirements of this section, the superintendent shall post such
application upon the bulletin board of the department pursuant to
section forty-two of this article. If such application does not meet the
requirements of this section, the superintendent shall, within ten days
of such determination, notify the applicant or applicants of the reasons
why the application fails to meet the requirements. The superintendent
shall determine, consistent with the standards set forth in subdivision
five of this section, whether to approve such application subject to
such terms and conditions as the superintendent may deem appropriate, in
the superintendent's sole discretion. Such determination, shall be made
by the superintendent within forty-five days after the posting of such
application, provided however that the superintendent may notify the
applicant or applicants that the review of the application shall be
extended for an additional period of time not exceeding sixty days after
the posting of such application, and provided further that such period
of time may be extended for an additional period of time with the
written consent of the applicant or applicants. The superintendent shall
not act upon the application prior to thirty days after such application
has been posted. If the superintendent approves such application, the
superintendent shall, within ten days of approving the application,
notify the applicant or applicants in writing thereof, and the applicant
or applicants may exercise such federally permitted power subject to
such terms and conditions as the superintendent may have approved. If
the superintendent declines such application, the superintendent shall,
within ten days of making such determination, notify the applicant or
applicants in writing thereof. An applicant or applicants may, upon the
superintendent's failure to comply with this section, petition the
superintendent to act upon the application. The failure of the
superintendent to act upon the application or notify the applicant or
applicants, in writing, as to the reasons why action cannot be taken
within thirty days of receipt of such petition shall be deemed a denial
of the application, which shall be subject to judicial review.
Notwithstanding any other law, the superintendent may make the approval
of an application under this section applicable to one or more
additional state chartered banking institutions that are qualified to
exercise the same federally permitted powers as the applicant or
applicants pursuant to subdivision two of this section, subject to such
terms and conditions as the superintendent shall find necessary and
appropriate.

4. Notwithstanding any other law, the superintendent, in the
superintendent's discretion, may, when the superintendent deems it
necessary and appropriate after considering the standards set forth in
subdivision five of this section, by order, authorize one or more state
chartered banking institutions to exercise a federally permitted power,
subject to such terms and conditions as the superintendent shall find
necessary and appropriate. Prior to issuing such order, the
superintendent shall post notice of the superintendent's intention to
issue such order upon the bulletin board of the department pursuant to
section forty-two of this article, and shall not act upon such intention
prior to thirty days after such notice has been posted.

5. Prior to approving any application or proposal pursuant to
subdivision three or four of this section, the superintendent shall make
a finding that the approval of such application or proposal is:

(i) consistent with the policy of the state of New York as declared in
section ten of this article and thereby protects the public interest,
including the interests of depositors, creditors, shareholders,
stockholders and consumers; and

(ii) necessary to achieve or maintain parity between state chartered
banking institutions and their counterpart federally chartered banking
institutions with respect to rights, powers, privileges, benefits,
activities, loans, investments or transactions.

6. A federally permitted power authorized pursuant to this section
shall not exceed and shall be limited by any conditions, qualifications
or restrictions on the same when exercised by a counterpart federally
chartered banking institution of a state chartered banking institution
unless the state chartered banking institution is so authorized by other
New York state law, or a rule, regulation or policy adopted pursuant to
such other New York state law, or by a judicial decision.
Notwithstanding any other law, the superintendent may, at any time,
impose by order any other terms and conditions as he or she finds
necessary and proper including, but not limited to, a requirement that
any federally permitted power authorized by this section be exercised,
conducted or held in a subsidiary of a state chartered banking
institution. In the event that federally chartered banking institutions
located in the state of New York lose the authority to exercise a
federally permitted power, based upon which comparable authority was
granted to the counterpart state chartered banking institutions pursuant
to this section, then unless such authority is authorized by other New
York state law, or a rule, regulation or policy adopted pursuant to such
other New York state law, or by a judicial decision, the authorization
for such state chartered banking institutions pursuant to this section
shall be deemed revoked, provided, however, that any such revocation
shall be subject to such terms and conditions as may be imposed upon the
counterpart federally chartered banking institutions or by the
superintendent.

7. (a) In those instances where state chartered banking institutions
are permitted to engage in the business of insurance pursuant to this
section, they shall do so subject to all insurance laws, rules, and
regulations; provided, however, that the superintendent may exempt state
chartered banking institutions from any insurance law, rule or
regulation which has been preempted under federal law, rule or
regulation for federally chartered banking institutions if such law,
rule or regulation has been preempted because it applies to insurance
activities of federally chartered banking institutions and not to those
of other entities.

(b) In those instances where a federally permitted power authorized
pursuant to this section is subject to regulation by an agency, as
defined in subdivision one of section one hundred two of the state
administrative procedure act, other than the superintendent, then when a
state chartered banking institution exercises such federally permitted
power, unless it is so authorized by other New York state law, or a
rule, regulation or policy adopted pursuant to such other New York state
law, or by a judicial decision, it shall do so subject to such
regulation to the same extent and in the same manner as such agency
regulates entities other than state chartered banking institutions,
except to the extent that federally chartered banking institutions are
not subject to such regulation.

(c) Any state chartered banking institution or federally chartered
banking institution and any subsidiary or affiliate thereof which is
licensed to sell insurance in this state shall maintain separate and
distinct books and records relating to its insurance transactions,
including all files relating to and reflecting consumer complaints, and
such insurance books and records shall be made available to the
superintendent for inspection upon reasonable notice.

8. On or before June first of each year, the superintendent shall
submit a report to the governor, the speaker of the assembly, the
temporary president of the senate, the minority leaders of the senate
and assembly, and the chairs and ranking minority members of the senate
and assembly banks committees, which shall include, with respect to the
authority provided for in this section, with respect to the preceding
calendar year, (1) a listing of state chartered banking institutions
that were established, (2) a listing of institutions that have converted
to a federal charter or have been acquired by, or merged with, another
banking institution, (3) the number of New York banking institutions
exercising the insurance activities authorized by this section, (4) the
total number of New York chartered banking institutions located in this
state, and (5) the total amount of assets of such chartered banking
institutions by type.

9. Any rules or regulations promulgated by the banking board pursuant
to former sections fourteen-g and fourteen-h of this chapter prior to
September first, two thousand seven, and any resolutions adopted by the
banking board pursuant to this section after September first, two
thousand seven and before the effective date of the chapter of the laws
of two thousand eleven which amended this subdivision, including any
such rules, regulations and resolutions which in whole or in part impose
conditions, qualifications or restrictions on any federally permitted
powers authorized thereby which exceed the conditions, qualifications or
restrictions imposed on the same when exercised by a federally chartered
banking institution, shall remain in full force and effect on or after
such date, unless any such rule, regulation or resolution is thereafter
superseded, modified, or revoked by the superintendent pursuant to the
provisions of subdivisions three and four of this section.

* NB Repealed September 10, 2029