Bill Text: NY A10181 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to assessment of the record of performance of banking institutions in helping to meet the credit needs of local communities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-04-30 - enacting clause stricken [A10181 Detail]
Download: New_York-2017-A10181-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 10181--A IN ASSEMBLY March 22, 2018 ___________ Introduced by M. of A. SEPULVEDA -- read once and referred to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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: 1 Section 1. Subdivisions 3 and 4 of section 28-b of the banking law, 2 subdivision 3 as amended by chapter 315 of the laws of 2008, the opening 3 paragraph and paragraph 12 of paragraph (a) of subdivision 3 as amended 4 by chapter 227 of the laws of 2013 and subdivision 4 as amended by chap- 5 ter 180 of the laws of 2012, are amended and a new subdivision 5-a is 6 added to read as follows: 7 3. (a) When taking any action on an application or notice made by a 8 banking institution under (i) section one hundred five, two hundred 9 twenty-four, two hundred forty, or three hundred ninety-six of this 10 chapter for a branch office, (ii) section one hundred ninety-one of this 11 chapter for a public accommodation office, (iii) section six hundred 12 one-b of this chapter for approval of a merger or purchase of assets, or 13 (iv) under section one hundred five-a, two hundred forty-a or three 14 hundred ninety-six-a of this chapter for the use or installation of an 15 automated teller machine, point-of-sale terminal or similar electronic 16 facility or on any other application or notice to which the superinten- 17 dent of financial services shall by rule or regulation make applicable 18 the provisions of this section, the superintendent shall take into 19 account, among other factors, an assessment, in writing, of the record 20 of performance of the banking institution in helping to meet the credit 21 needs of its entire community, including low and moderate-income neigh- 22 borhoods and minority- and women-owned businesses, consistent with safe 23 and sound operation of the banking institution. Such assessment and any 24 written communications from the department of financial services to a 25 banking institution relating to such assessment shall be made available 26 to the public upon request, provided that nothing contained in this 27 subdivision shall be deemed to alter, amend or affect the provisions of 28 subdivision ten of section thirty-six of this chapter. In making such 29 assessment the superintendent shall review all reports and documents EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15042-03-8A. 10181--A 2 1 filed pursuant to subdivision one of this section and any signed, writ- 2 ten comments received by the superintendent which specifically relate to 3 the banking institution's performance in helping to meet the credit 4 needs of its community. In addition, the superintendent shall consider 5 the following factors in assessing a banking institution's record of 6 performance: 7 (1) Activities conducted by the banking institution to ascertain cred- 8 it needs of its community, including the extent of the banking insti- 9 tution's efforts to communicate with members of its community regarding 10 the credit services being provided by the banking institution; 11 (2) The extent of the banking institution's marketing and special 12 credit-related programs to make members of the community aware of the 13 credit services offered by the banking institution; 14 (3) The extent of participation by the banking institution's board of 15 directors or board of trustees in formulating the banking institution's 16 policies and reviewing its performance with respect to the purposes of 17 the Community Reinvestment Act of 1977; 18 (4) Any practices intended to discourage application for types of 19 credit set forth in the banking institution's Community Reinvestment Act 20 Statement(s); 21 (5) The geographic distribution of the banking institution's credit 22 extensions, credit applications and credit denials; 23 (6) Evidence of prohibited discriminatory or other illegal credit 24 practices; 25 (7) The banking institution's record of opening and closing offices 26 and providing services at offices; 27 (8) The banking institution's participation, including investments, in 28 local community development and redevelopment projects or programs and 29 in technical assistance programs for small businesses and minority- and 30 women-owned businesses; 31 (9) The banking institution's origination of residential mortgage 32 loans, housing rehabilitation loans, home improvement loans and small 33 business or small farm or minority- and women-owned business loans with- 34 in its community or the purchase of such loans originated in its commu- 35 nity; 36 (9-a) The banking institution's efforts to assist low and moderate 37 income residents to be able to remain in affordable housing in their 38 neighborhoods; 39 (10) The banking institution's participation in governmentally-in- 40 sured, guaranteed or subsidized loan programs for housing, small busi- 41 nesses or small farms; 42 (11) The banking institution's ability to meet various community cred- 43 it needs based on its financial condition, size, legal impediments, 44 local economic condition and other factors; 45 (11-a) The geographic distribution, availability and use of automated 46 teller machines, point-of-sale terminals, personal computer banking, 47 debit cards or similar electronic facilities or services; and any train- 48 ing of customers thereon among every branch of the banking institution, 49 if the institution offers such services to any of its customers; and 50 (12) Other factors that, in the judgment of the superintendent, 51 reasonably bear upon the extent to which a banking institution is help- 52 ing to meet the credit needs of its entire community, including, without 53 limitation, the banking institution's participation in credit counseling 54 services. 55 (b) In assessing the record of performance of a banking institution 56 pursuant to the provisions of paragraph (a) of this subdivision, theA. 10181--A 3 1 superintendent may, where he or she deems it appropriate, provide for 2 public hearings when an objection to the banking institution's applica- 3 tion or notification has been submitted. 4 (c) An assessment of a banking institution's record of performance 5 under paragraph (a) of this subdivision may be the basis for denying an 6 application or notice under the provisions of this section. 7 (d) When taking any action pursuant to paragraph (a) of this subdivi- 8 sion, the superintendent shall request from the applicant or notificant 9 banking institution and from the appropriate federal bank regulatory 10 authorities any documents, other than those required to be filed with 11 the superintendent by this section or by other applicable statutes or 12 regulations, which are (1) filed with the federal bank regulatory 13 authorities in connection with the application or notice or (2) produced 14 by the applicant or notificant banking institution or others in 15 connection with the application or notice. 16 4. Notwithstanding any other provision of this chapter or other law to 17 the contrary, the term banking institution when used in this section 18 shall mean and include all banks, trust companies, savings banks, 19 savings and loan associations, credit unions, licensed mortgage bankers 20 or license mortgage loan originators that have made one hundred or more 21 home mortgage loans in New York state in the last calendar year, invest- 22 ment banks and foreign banking corporations incorporated, chartered, 23 organized or licensed under the laws of this state. In the case of a 24 foreign banking corporation licensed pursuant to this article and main- 25 taining a branch in this state, the management of the branch shall 26 establish a committee of not fewer than three officers to function in 27 the role of a board of directors for purposes of this section. 28 5-a. In addition to the public notice required under federal CRA, each 29 bank shall provide in the public lobby of its main office and each of 30 its branches in this state a public notice substantially similar to the 31 following: 32 STATE OF NEW YORK 33 COMMUNITY REINVESTMENT NOTICE 34 The banking superintendent evaluates our record of helping to meet the 35 credit needs of this community consistent with safe and sound oper- 36 ations. The banking superintendent also takes this record into account 37 when deciding on certain applications submitted by us. 38 Your involvement is encouraged. 39 In addition to the information that you are entitled to receive under 40 the federal Community Reinvestment Act, as listed in the "Community 41 Reinvestment Act Notice" posted in this lobby, you may review today the 42 public section of our most recent community reinvestment performance 43 evaluation prepared by the superintendent. 44 You may send written comments about our performance in helping to meet 45 community credit needs to the superintendent (address). Your letter, 46 together with any response by us, will be considered by the superinten- 47 dent in evaluating our community reinvestment performance and may be 48 made public. 49 You may ask to look at any comments received by the superintendent. 50 § 2. This act shall take effect on the one hundred twentieth day after 51 it shall have become a law. Effective immediately, the addition, amend- 52 ment and/or repeal of any rules or regulations necessary for the imple- 53 mentation of the foregoing section of this act on its effective date are 54 authorized to be made on or before such effective date.