§ 96-d. Banking development districts. 1. There is hereby created a
banking development district program, the purpose of which is to
encourage the establishment of bank branches in geographic locations
where there is a demonstrated need for banking services. The
superintendent of financial services shall, in consultation with the
department of economic development, promulgate rules and regulations,
after public hearing and comment, which set forth the criteria for the
establishment of banking development districts. Such criteria shall
include, but not be limited to, the following:

(a) the location, number, and proximity of sites where banking
services are available within the district;

(b) the identification of consumer needs for banking services within
the district;

(c) the economic viability and local credit needs of the community
within the district;

(d) the existing commercial development within the district;

(e) the impact additional banking services would have on potential
economic development in the district;

(f) whether a community is identified as unbanked or underbanked by
the superintendent; and

(g) such other criteria which the superintendent in his or her
discretion shall identify as appropriate.

2. A local government, in conjunction with a bank, trust company or
national bank, may submit an application to the superintendent for the
designation of a banking development district. The superintendent shall
issue a determination on such an application within sixty days of
receiving such application. If an application is approved, the
superintendent shall transmit notification of the designation of a
banking development district to the local government, the bank, trust
company or national bank, the state comptroller, the commissioner of
taxation and finance, the commissioner of the department of economic
development, the temporary president of the senate and the speaker of
the assembly. The designation of a banking development district shall be
valid for fourteen years. Prior to the expiration of a banking
development district designation, the superintendent may extend the
designation for one or more additional five or ten year periods.

2-a. Notwithstanding any other provision of law, an application may be
submitted by a local government in conjunction with a bank, trust
company or national bank which has already opened a bank branch within
such area. In considering the criteria authorized pursuant to
subdivision one of this section, the superintendent shall also take into
account the importance and benefits of preserving the banking services
offered by the existing branch.

3. The establishment of a branch in a banking development district by
a bank, trust company or national bank shall be subject to all
applicable state and federal laws regarding the establishment of branch
offices, including the provisions of section one hundred five of this
article, provided however that the branch application fee required
pursuant to section twenty-nine of this chapter shall be waived for any
such branch. A bank or trust company may submit an application to open a
branch office simultaneously with the submission of the application for
the designation of a banking development district.

4. For the purposes of this section, the term "local government" shall
mean a county, town, city or village.

* 5. (a) Notwithstanding the provisions of subdivision two of section
two hundred thirty-seven of this chapter; for the purposes of this
section, paragraph c of subdivision two of section ten of the general
municipal law, subdivision six of section one hundred five of the state
finance law and section four hundred eighty-five-f of the real property
tax law, any reference to a bank, trust company or national bank shall
be deemed to include a savings bank, savings and loan association,
federal savings and loan association, federal savings bank, credit
union, or federal credit union; provided, however, that such provisions
of law do not grant a savings bank, savings and loan association,
federal savings and loan association, federal savings bank, credit
union, or federal credit union eligibility to accept municipal or public
funds or municipal or public moneys other than for the limited purposes
of the establishment of a branch in a banking development district
pursuant to this section. Any such municipal or public funds or moneys
shall be deposited only at the branch established pursuant to this
section, and any municipal funds or moneys may be deposited only by the
sponsoring municipality in which the branch and banking development
district are located; provided further that any such municipal or public
funds or moneys shall be subject to the same requirements which apply to
municipal or public funds or moneys deposited in a bank, trust company
or national bank and shall also be subject to the provisions of section
one hundred five of the state finance law or section ten of the general
municipal law relating to such deposits.

(b) Notwithstanding any other provision of law, the superintendent of
financial services shall promulgate rules and regulations to authorize
the participation of savings banks, savings and loan associations,
federal savings banks, federal savings and loan associations, credit
unions, and federal credit unions in the program established pursuant to
this section.

* NB Repealed January 1, 2029

6. For the purposes of this section, nothing shall preclude a bank,
trust company or national bank from seeking approval to establish one or
more branches in an existing banking development district where it or
another bank has or is authorized to have a branch. The department shall
have the authority to approve any bank, trust company or national bank
for participation in the banking development district program, and any
branch approved pursuant to this section shall operate in accordance
with this section and is eligible for all the rights and privileges
authorized by this section.