Bill Text: NY S02461 | 2017-2018 | General Assembly | Introduced

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Bill Title: Requires inclusion and explanation of additional annual data in assessing record of performance of banking institutions in meeting community credit needs; additional data includes but is not limited to: loans for housing low and moderate-income residents of low and moderate income areas, the scope of efforts to market housing and small business loans in low and moderate-income areas and other data.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO BANKS [S02461 Detail]

Download: New_York-2017-S02461-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2461
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 13, 2017
                                       ___________
        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:
     1    Section 1. The opening paragraph of paragraph (a) of subdivision 3  of
     2  section  28-b  of the banking law, as amended by chapter 227 of the laws
     3  of 2013, is amended to read as follows:
     4    When taking any action on an application or notice made by  a  banking
     5  institution under (i) section one hundred five, two hundred twenty-four,
     6  two  hundred  forty,  or  three hundred ninety-six of this chapter for a
     7  branch office, (ii) section one hundred ninety-one of this chapter for a
     8  public accommodation office, (iii) section six  hundred  one-b  of  this
     9  chapter  for  approval  of a merger or purchase of assets, or (iv) under
    10  section one hundred five-a, two hundred forty-a or three  hundred  nine-
    11  ty-six-a  of  this  chapter  for the use or installation of an automated
    12  teller machine, point-of-sale terminal or similar electronic facility or
    13  on any other application or notice to which the superintendent of finan-
    14  cial services shall by rule or regulation make applicable the provisions
    15  of this section, the superintendent shall take into account, among other
    16  factors, an assessment, in writing, of the record of performance of  the
    17  banking  institution  in  helping to meet the credit needs of its entire
    18  community, including low and moderate-income  neighborhoods,  consistent
    19  with  safe and sound operation of the banking institution.  Such assess-
    20  ment shall include a separate discussion of the record  of  the  banking
    21  institution  pertaining  to each of the assessment factors listed in all
    22  of the subparagraphs of this paragraph and a complete explanation of how
    23  each of these factors was considered by the  department  in  making  the
    24  assessment. This explanation shall include, but not be limited to, annu-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00724-01-7
        S. 2461                             2
     1  al data for the institution as follows: loans for housing low and moder-
     2  ate-income  residents of low and moderate-income areas, and the scope of
     3  efforts to market housing and small business loans in low and  moderate-
     4  income  areas;  the  amount  of loans to farms, and loans to small busi-
     5  nesses that provide services to low and moderate-income residents of low
     6  and moderate-income areas; financial investments in and contributions to
     7  nonprofit local community development or redevelopment projects or enti-
     8  ties; manpower resources committed to low  and  moderate-income  housing
     9  lending  and  small  business  lending and other forms of administrative
    10  support  for  such  lending;  and  participation  in  governmentally  or
    11  privately  sponsored  loan  insurance, guarantee or subsidy programs for
    12  housing, small businesses and small farms. Such assessment and  explana-
    13  tion  and  any  written  communications from the department of financial
    14  services to a banking institution relating to such assessment and expla-
    15  nation shall be made available to the public upon request, provided that
    16  nothing contained in this subdivision shall be deemed to alter, amend or
    17  affect the provisions of subdivision ten of section thirty-six  of  this
    18  chapter.  In  making such assessment and explanation, the superintendent
    19  shall review all reports and documents filed with him or her pursuant to
    20  subdivision one  of  this  section  and  any  signed,  written  comments
    21  received  by the superintendent which specifically relate to the banking
    22  institution's performance in helping to meet the  credit  needs  of  its
    23  community.  In addition, the superintendent shall consider the following
    24  factors in assessing and explaining a banking  institution's  record  of
    25  performance:
    26    § 2. This act shall take effect on the one hundred twentieth day after
    27  it  shall have become a law. Effective immediately, the addition, amend-
    28  ment and/or repeal of any rules or regulations necessary for the  imple-
    29  mentation of the foregoing section of this act on its effective date are
    30  authorized to be made on or before such effective date.