Bill Text: NY S03755 | 2017-2018 | General Assembly | Introduced

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Bill Title: Enacts the community bank service corporation act; relates to the authorized activities and investment of community bank service corporations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2018-06-20 - COMMITTED TO RULES [S03755 Detail]

Download: New_York-2017-S03755-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3755
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 26, 2017
                                       ___________
        Introduced  by  Sen.  SAVINO -- 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 community  bank  service
          corporations
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "community bank service corporation act".
     3    § 2. The banking law is amended by adding a new article 2-D to read as
     4  follows:
     5                                 ARTICLE 2-D
     6                     COMMUNITY BANK SERVICE CORPORATIONS
     7  Section 88. Service  corporations  owned  by community banks; authorized
     8                activities of such corporations; investments therein.
     9    § 88. Service corporations owned by community banks; authorized activ-
    10  ities of such corporations; investments therein. 1. A community bank may
    11  invest in the stock, capital notes and debentures of one or more service
    12  corporations organized under the laws of this state for the sole  activ-
    13  ities  set  forth  in subdivision two of this section, to the extent and
    14  upon such conditions as are or have been authorized by  the  superinten-
    15  dent  of  financial  services including but not limited to the following
    16  activities:
    17    (a) providing services  primarily  for  other  financial  institutions
    18  particularly  accounting,  auditing,  clerical,  compliance  activities,
    19  consulting, data storage  and  process,  investment  advisory,  research
    20  services,  locator  services,  personnel training and support, marketing
    21  services, employee leasing services, and managerial;
    22    (b) originating,  investing  in,  purchasing,  selling,  servicing  or
    23  otherwise  dealing  in  directly  or through participation, loans of any
    24  type which may be made by a community bank;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08456-01-7
        S. 3755                             2
     1    (c) providing insurance brokerage or agency  services,  including  but
     2  not  limited to agency for sale of insurance, vehicle warranty programs,
     3  group purchasing programs and real estate settlement programs;
     4    (d)  providing  real  estate  services  including  but  not limited to
     5  brokerage, appraisal, inspection, property management,  and  leasing  of
     6  excess property;
     7    (e) leasing of personal property to customers;
     8    (f)  providing loan support services including but not limited to debt
     9  collection services, loan processing, service  and  sales,  real  estate
    10  settlement  services,  purchasing  and servicing of non-performing loans
    11  and referral and processing of loan applications;
    12    (g) record retention, security and disaster recovery services  includ-
    13  ing  but  not  limited  to alarm-monitoring and other security services,
    14  disaster recovery services, microfilm, microfiche, optical and electron-
    15  ic imaging, CD-ROM data storage and  retrieval  services,  provision  of
    16  forms and supplies and record retention and storage;
    17    (h) securities brokerage services;
    18    (i) shared community bank branch operations;
    19    (j)  student loan origination, including the authority to buy and sell
    20  participation interests in such loans;
    21    (k) travel agency and tax preparation services;
    22    (l) providing courier services;
    23    (m) trust and trust related services  including  but  not  limited  to
    24  acting as administrator for prepaid legal service plans, acting as trus-
    25  tee, guardian, conservator, estate administrator or in any other fiduci-
    26  ary capacity and trust services;
    27    (n) credit and loan origination;
    28    (o) payroll processing services;
    29    (p) issuing credit cards and engaging in credit card operations;
    30    (q) issuing letters of credit; and
    31    (r)  sponsoring,  organizing  and  advising  open-ended  mutual funds;
    32  provided that all of the stock of such service corporations is, or is to
    33  be, owned by one or more community banks; and provided further, that  no
    34  community  bank may make any investment under this section if its aggre-
    35  gate outstanding investment thereby, determined  as  prescribed  by  the
    36  superintendent  of  financial  services, would exceed five per centum of
    37  its assets.
    38    2. The activities of such service corporations, performed directly  or
    39  through  one or more wholly owned subsidiaries, shall consist of render-
    40  ing such services to community banks and  making  such  investments  for
    41  itself  and  for  community banks as are authorized services and invest-
    42  ments for such community banks under the provisions of this chapter,  as
    43  well  as  such activities as may be prescribed by the general regulation
    44  of the superintendent of financial services.
    45    3. For purposes of this section, a community bank shall be defined  as
    46  a  bank  or trust company organized under or subject to the provision of
    47  article three of this chapter or the comparable provision of the laws of
    48  another state or a national banking association or  a  savings  bank,  a
    49  savings  and loan association or other savings institution chartered and
    50  supervised as such under federal or state law  where  average  value  of
    51  assets must not exceed eight billion dollars.
    52    §  3.  This  act  shall take effect on the sixtieth day after it shall
    53  have become a law.