Bill Text: NY S07445 | 2009-2010 | General Assembly | Introduced
Bill Title: Permits remote deposit capture machines, clarifies the definition of capital impairment for banking institutions, modifies reporting required by banking organizations, conforms criminal provisions of the mortgage banking article to those in the mortgage loan originator article, reduces operating expenses of the banking department, and makes other technical changes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-06-18 - referred to banks [S07445 Detail]
Download: New_York-2009-S07445-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7445
I N S E N A T E
April 12, 2010
___________
Introduced by Sen. FOLEY -- (at request of the Banking Department) --
read twice and ordered printed, and when printed to be committed to
the Committee on Banks
AN ACT to amend the banking law and the general business law, in
relation to reporting by banking organizations, conforming criminal
provisions of the mortgage banking article to those in the mortgage
loan originator article, permitting remote deposit capture machines,
clarifying the definition of capital impairment for banking insti-
tutions, reducing operating expenses of the banking department and
making other technical changes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 2 of the banking law is amended by adding a new
2 subdivision 28 to read as follows:
3 28. SUPERINTENDENT. THE TERM, "SUPERINTENDENT," WHEN USED IN THIS
4 CHAPTER, SHALL MEAN THE SUPERINTENDENT OF BANKS AS PROVIDED FOR IN
5 SECTION TWELVE OF THIS CHAPTER.
6 S 2. Section 2 of the banking law is amended by adding a new subdivi-
7 sion 29 to read as follows:
8 29. REMOTE DEPOSIT CAPTURE MACHINE. THE TERM, "REMOTE DEPOSIT CAPTURE
9 MACHINE," WHEN USED IN THIS CHAPTER, SHALL MEAN AN AUTOMATED MACHINE,
10 LOCATED AT A CUSTOMER'S PLACE OF BUSINESS AND OPERATED BY PERSONNEL OF
11 THE BUSINESS CUSTOMER, THAT REMOTELY TRANSMITS THE DATA LOCATED ON
12 CHECKS TO A BANKING INSTITUTION FOR PROCESSING AND DEPOSIT.
13 S 3. Paragraph (a) of subdivision 3 of section 28-b of the banking
14 law, as amended by chapter 315 of the laws of 2008, is amended to read
15 as follows:
16 (a) When taking any action on an application OR NOTICE made by a bank-
17 ing institution under (I) section one hundred five, two hundred twenty-
18 four, two hundred forty, or three hundred ninety-six of this chapter for
19 a branch office [or under], (II) section one hundred ninety-one of this
20 chapter for a public accommodation office [or under], (III) section six
21 hundred one-b of this chapter for approval or disapproval of a merger or
22 purchase of assets, or [taking any action on a notice submitted by a
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15519-05-0
S. 7445 2
1 banking institution under] (IV) section one hundred five-a, two hundred
2 forty-a or three hundred ninety-six-a of this chapter for the use or
3 installation of an automated teller machine, [point-of-sale terminal or
4 similar electronic facility] or on any other application OR NOTICE to
5 which the banking board shall by rule or regulation make applicable the
6 provisions of this section, the superintendent shall take into account,
7 among other factors, an assessment, in writing, of the record of
8 performance of the banking institution in helping to meet the credit
9 needs of its entire community, including low and moderate-income neigh-
10 borhoods, consistent with safe and sound operation of the banking insti-
11 tution. Such assessment and any written communications from the banking
12 department to a banking institution relating to such assessment shall be
13 made available to the public upon request, provided that nothing
14 contained in this subdivision shall be deemed to alter, amend or affect
15 the provisions of subdivision ten of section thirty-six of this chapter.
16 In making such assessment the superintendent shall review all reports
17 and documents filed pursuant to subdivision one of this section and any
18 signed, written comments received by the superintendent which specif-
19 ically relate to the banking institution's performance in helping to
20 meet the credit needs of its community. In addition, the superintendent
21 shall consider the following factors in assessing a banking insti-
22 tution's record of performance:
23 (1) Activities conducted by the banking institution to ascertain cred-
24 it needs of its community, including the extent of the banking insti-
25 tution's efforts to communicate with members of its community regarding
26 the credit services being provided by the banking institution;
27 (2) The extent of the banking institution's marketing and special
28 credit-related programs to make members of the community aware of the
29 credit services offered by the banking institution;
30 (3) The extent of participation by the banking institution's board of
31 directors or board of trustees in formulating the banking institution's
32 policies and reviewing its performance with respect to the purposes of
33 the Community Reinvestment Act of 1977;
34 (4) Any practices intended to discourage application for types of
35 credit set forth in the banking institution's Community Reinvestment Act
36 Statement(s);
37 (5) The geographic distribution of the banking institution's credit
38 extensions, credit applications and credit denials;
39 (6) Evidence of prohibited discriminatory or other illegal credit
40 practices;
41 (7) The banking institution's record of opening and closing offices
42 and providing services at offices;
43 (8) The banking institution's participation, including investments, in
44 local community development and redevelopment projects or programs;
45 (9) The banking institution's origination of residential mortgage
46 loans, housing rehabilitation loans, home improvement loans and small
47 business or small farm loans within its community or the purchase of
48 such loans originated in its community;
49 (10) The banking institution's participation in governmentally-in-
50 sured, guaranteed or subsidized loan programs for housing, small busi-
51 nesses or small farms;
52 (11) The banking institution's ability to meet various community cred-
53 it needs based on its financial condition, size, legal impediments,
54 local economic condition and other factors;
55 (11-a) The geographic distribution, availability and use of automated
56 teller machines, point-of-sale terminals, personal computer banking,
S. 7445 3
1 debit cards or similar electronic facilities or services; and any train-
2 ing of customers thereon among every branch of the banking institution,
3 if the institution offers such services to any of its customers; and
4 (12) Other factors that, in the judgment of the superintendent and
5 banking board, reasonably bear upon the extent to which a banking insti-
6 tution is helping to meet the credit needs of its entire community,
7 including, without limitation, the banking institution's participation
8 in credit counseling services.
9 S 4. Subdivision 1 of section 37 of the banking law, as amended by
10 chapter 116 of the laws of 1973, is amended to read as follows:
11 1. The superintendent shall at least two times in each year designate
12 a past day as of which every bank, trust company, private banker and, in
13 the discretion of the superintendent, a bank holding company and any
14 non-banking subsidiary thereof shall render a [periodical report of
15 condition to him. He shall deliver or mail a notice designating such day
16 to such bank, trust company, private banker, bank holding company or any
17 non-banking subsidiary thereof at its principal office] PERIODIC REPORT
18 OF CONDITION TO THE SUPERINTENDENT GIVING SUCH INFORMATION AS THE SUPER-
19 INTENDENT MAY REQUIRE CONCERNING THE BUSINESS AND OPERATIONS OF SUCH
20 ENTITY DURING SUCH PRECEDING PERIOD. THE REPORT OF CONDITION SHALL BE IN
21 THE FORM AND SHALL BE FILED AS PRESCRIBED BY THE SUPERINTENDENT.
22 S 5. Subdivision 3 of section 39 of the banking law, as amended by
23 section 1 of part FF of chapter 59 of the laws of 2004, is amended to
24 read as follows:
25 3. To make good AN impairment of capital OR DEFICIENT CAPITAL CONDI-
26 TION or to ensure compliance with financial requirements. [Whenever] THE
27 SUPERINTENDENT MAY, IN HIS OR HER DISCRETION, ISSUE AN ORDER DIRECTING
28 THAT A BANKING ORGANIZATION, BANK HOLDING COMPANY, BRANCH OR AGENCY OF A
29 FOREIGN BANKING CORPORATION, REGISTERED MORTGAGE BROKER, LICENSED MORT-
30 GAGE BANKER, LICENSED LENDER, LICENSED CASHER OF CHECKS, LICENSED SALES
31 FINANCE COMPANY, LICENSED INSURANCE PREMIUM FINANCE AGENCY, LICENSED
32 TRANSMITTER OF MONEY, LICENSED BUDGET PLANNER, OR PRIVATE BANKER MAKE
33 GOOD A DEFICIENCY FORTHWITH OR WITHIN A TIME SPECIFIED IN SUCH ORDER,
34 WHENEVER it shall appear to [the superintendent] HIM OR HER that:
35 (A) the capital or capital stock of any banking organization, bank
36 holding company or any subsidiary thereof which is organized, licensed
37 or registered pursuant to this chapter, is impaired[, or];
38 (B) THE CAPITAL OF ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND
39 LOAN ASSOCIATION OR CREDIT UNION IS, IN THE SOLE DISCRETION OF THE
40 SUPERINTENDENT, DEFICIENT GIVEN THE EXTENT AND NATURE OF ITS OPERATIONS;
41 (C) the financial requirements imposed by subdivision one of section
42 two hundred two-b of this chapter or any regulation of the superinten-
43 dent or the banking board on any branch or agency of a foreign banking
44 corporation ARE NOT SATISFIED, or
45 (D) the financial requirements imposed by this chapter or any regu-
46 lation of the superintendent or THE banking board on any licensed lend-
47 er, registered mortgage broker, licensed mortgage banker, licensed cash-
48 er of checks, licensed sales finance company, licensed insurance premium
49 finance agency, licensed transmitter of money, licensed budget planner
50 or private banker are not satisfied[, he or she may, in his or her
51 discretion, issue an order directing that such banking organization,
52 bank holding company, branch or agency of a foreign banking corporation,
53 registered mortgage broker, licensed mortgage banker, licensed lender,
54 licensed casher of checks, licensed sales finance company, licensed
55 insurance premium finance agency, licensed transmitter of money,
S. 7445 4
1 licensed budget planner, or private banker make good such deficiency
2 forthwith or within a time specified in such order].
3 S 6. The opening paragraph of section 42 of the banking law, as
4 amended by chapter 547 of the laws of 2008, is amended to read as
5 follows:
6 The superintendent shall [publish and] make available to the general
7 public at the offices of the department and also post on the depart-
8 ment's internet website a bulletin [at noon] on Friday of each week AND
9 ON SUCH OTHER DAYS AS THE SUPERINTENDENT SHALL DEEM APPROPRIATE AND IN
10 THE PUBLIC INTEREST stating the following items of general information
11 with regard to the work of the department since the preceding statement:
12 S 7. Section 75-g of the banking law, as added by chapter 9 of the
13 laws of 1996, subdivision 1 as designated by section 4-a of part A of
14 chapter 57 of the laws of 1998 and subdivision 2 as amended by chapter
15 650 of the laws of 2008, is amended to read as follows:
16 S 75-g. Report of compliance. [1.] Within one year after the effec-
17 tive date of this article, and each year thereafter, every banking
18 institution which has an automated teller machine facility which is in
19 operation on such date and such date every year thereafter shall submit
20 a written report to the department on a form prescribed by the super-
21 intendent, certifying that such automated teller machine facility is in
22 compliance with the provisions of this article or any variance or
23 exemption that has been granted, or if such facility is not in compli-
24 ance with such provisions, such report shall state the manner in which
25 such facility fails to meet such requirements, the reasons for such
26 non-compliance and a plan to remedy any such non-compliance.
27 [2. The superintendent shall report to the legislature on or before
28 the fifteenth day of January and annually thereafter, with respect to
29 compliance with this article. Such report shall include, but not be
30 limited to:
31 (a) the number of inspections undertaken by the department in the
32 previous year pursuant to this section;
33 (b) the number and types of violations or other instances of non-com-
34 pliance identified through such inspections and measures undertaken by
35 the department and banking institutions to address such instances;
36 (c) expenses of the department incurred exclusively for the purpose of
37 the implementation of this section, including the number of department
38 personnel assigned to such purpose; and
39 (d) during the year for which the report is rendered, a listing of the
40 number of variance or exemption applications received and granted
41 related to the automated teller machine security measures; the name of
42 any banking institution which received a variance or exemption; the
43 geographic location of the automated teller machines subject to the
44 variance or exemption; and, the general conditions or terms of the vari-
45 ance or exemption.]
46 S 8. Section 105-a of the banking law, as amended by chapter 613 of
47 the laws of 1995, is amended to read as follows:
48 S 105-a. Electronic facilities. A bank or trust company may conduct a
49 banking business, at automated teller machines, point-of-sale terminals,
50 REMOTE DEPOSIT CAPTURE MACHINES, and similar facilities subject to regu-
51 lations which may be promulgated by the banking board. Such facilities
52 shall not be deemed to be branches and shall not be subject to any of
53 the provisions of this chapter applicable to branches; provided however
54 that notwithstanding the foregoing, AUTOMATED TELLER MACHINES AND SUCH
55 OTHER ELECTRONIC FACILITIES AS SPECIFICALLY DESIGNATED BY REGULATION OF
56 THE BANKING BOARD SHALL BE DEEMED TO BE BRANCHES for purposes of clause
S. 7445 5
1 (ii) of PARAGRAPH (A) OF subdivision one of section one hundred five [of
2 this chapter, such facilities shall be deemed to be branches, and such
3 facilities shall be subject to the terms and conditions of section one
4 hundred five, and for purposes of] AND section twenty-eight-b of this
5 chapter[, such facilities shall be deemed to be branches].
6 S 9. Section 240-a of the banking law, as amended by chapter 613 of
7 the laws of 1995, is amended to read as follows:
8 S 240-a. Electronic facilities. A savings bank may conduct a banking
9 business, at automated teller machines, point-of-sale terminals, REMOTE
10 DEPOSIT CAPTURE MACHINES, and similar facilities, subject to regulations
11 which may be promulgated by the banking board. Such facilities shall not
12 be deemed to be branches and shall not be subject to any of the
13 provisions of this chapter applicable to branches; provided however that
14 notwithstanding the foregoing, AUTOMATED TELLER MACHINES AND SUCH OTHER
15 ELECTRONIC DEVICES AS SPECIFICALLY DESIGNATED BY THE BANKING BOARD SHALL
16 BE DEEMED TO BE BRANCHES for purposes of paragraph (b) of subdivision
17 two of section two hundred forty [of this chapter, such facilities shall
18 be deemed to be branches, and such facilities shall be subject to the
19 terms and conditions of section two hundred forty,] and [for purposes
20 of] section twenty-eight-b of this chapter[, such facilities shall be
21 deemed to be branches].
22 S 10. Section 396-a of the banking law, as amended by chapter 613 of
23 the laws of 1995, is amended to read as follows:
24 S 396-a. Electronic facilities. A savings and loan association may
25 conduct a banking business, at automated teller machines, point-of-sale
26 terminals, REMOTE DEPOSIT CAPTURE MACHINES, and similar facilities,
27 subject to regulations which may be promulgated by the banking board.
28 Such facilities shall not be deemed to be branches and shall not be
29 subject to any of the provisions of this chapter applicable to branches;
30 provided however that notwithstanding the foregoing, AUTOMATED TELLER
31 MACHINES AND SUCH OTHER ELECTRONIC FACILITIES AS SPECIFICALLY DESIGNATED
32 BY REGULATION BY THE BANKING BOARD SHALL BE DEEMED TO BE BRANCHES for
33 purposes of paragraph (b) of subdivision two of section three hundred
34 ninety-six [of this chapter, such facilities shall be deemed to be
35 branches, and such facilities shall be subject to the terms and condi-
36 tions of section three hundred ninety-six,] and [for purposes of]
37 section twenty-eight-b of this chapter[, such facilities shall be deemed
38 to be branches].
39 S 11. The article heading of article 12-D of the banking law, as added
40 by chapter 864 of the laws of 1981, is amended to read as follows:
41 [LICENSED] MORTGAGE BANKERS, MORTGAGE BROKERS AND
42 MORTGAGE LOAN SERVICERS
43 S 12. Paragraph (c) of subdivision 2 of section 590 of the banking
44 law, as amended by chapter 472 of the laws of 2008, is amended to read
45 as follows:
46 (c) A licensee, registrant or mortgage loan servicer may apply for
47 authority to open and maintain one or more branch offices.
48 S 13. Subdivision 2 of section 592 of the banking law, as amended by
49 chapter 472 of the laws of 2008, is amended to read as follows:
50 2. [The] NOTWITHSTANDING ANY OTHER LAW, THE superintendent [may refuse
51 to] SHALL NOT issue a license pursuant to this article if he or she
52 shall find that the applicant, or any person who is a director, officer,
53 partner, agent, employee, substantial stockholder of the applicant,
54 consultant or person having a relationship with the applicant similar to
55 a consultant, (a) has been convicted of [a crime involving an activity
56 which is a felony under this chapter or under article one hundred
S. 7445 6
1 fifty-five, one hundred seventy, one hundred seventy-five, one hundred
2 seventy-six, one hundred eighty, one hundred eighty-five, one hundred
3 eighty-seven, one hundred ninety, two hundred, two hundred ten or four
4 hundred seventy of the penal law or any comparable felony under the laws
5 of any other state or the United States, provided that such crime would
6 be a felony if committed and prosecuted under the laws of this state] OR
7 PLED NOLO CONTENDERE TO, A FELONY IN A DOMESTIC, FOREIGN, OR MILITARY
8 COURT DURING THE SEVEN-YEAR PERIOD PRECEDING THE DATE OF THE APPLICATION
9 FOR LICENSING OR AT ANY TIME PRECEDING SUCH DATE OF APPLICATION, IF SUCH
10 FELONY INVOLVED AN ACT OF FRAUD, DISHONESTY, OR A BREACH OF TRUST, OR
11 MONEY LAUNDERING or (b) has had a MORTGAGE BANKER license [or], MORTGAGE
12 BROKER registration OR MORTGAGE LOAN ORIGINATOR AUTHORIZATION, LICENSE
13 OR LICENSE EQUIVALENT revoked [by the superintendent] IN ANY GOVERN-
14 MENTAL JURISDICTION, EXCEPT THAT A SUBSEQUENT FORMAL VACATION OF SUCH
15 REVOCATION SHALL NOT BE DEEMED TO BE A REVOCATION or (c) has been a
16 director, partner, or substantial stockholder of an entity which has had
17 a license or registration revoked by the superintendent or (d) has been
18 an agent, employee or officer of an entity, or a consultant to, or
19 person having had a similar relationship with, any entity which has had
20 a license or registration revoked by the superintendent where such
21 person shall have been found by the superintendent to bear responsibil-
22 ity in connection with the revocation. The term "substantial stockhold-
23 er", as used in this subdivision, shall be deemed to refer to a person
24 owning or controlling directly or indirectly ten [per centum] PERCENT or
25 more of the total outstanding stock of a corporation.
26 S 14. Subdivision 2 of section 592-a of the banking law, as amended by
27 chapter 472 of the laws of 2008, is amended to read as follows:
28 2. [The] NOTWITHSTANDING ANY OTHER LAW, THE superintendent [may refuse
29 to] SHALL NOT issue a certificate pursuant to this article if he or she
30 shall find that the applicant, or any person who is a director, officer,
31 partner, agent, employee, substantial stockholder of the applicant,
32 consultant or person having a relationship with the applicant similar to
33 a consultant, (a) has been convicted of [a crime involving an activity
34 which is a felony under this chapter or under article one hundred
35 fifty-five, one hundred seventy, one hundred seventy-five, one hundred
36 seventy-six, one hundred eighty, one hundred eighty-five, one hundred
37 eighty-seven, one hundred ninety, two hundred, two hundred ten or four
38 hundred seventy of the penal law or any comparable felony under the laws
39 of any other state or the United States, provided that such crime would
40 be a felony if committed and prosecuted under the laws of this state] IN
41 A DOMESTIC, FOREIGN, OR MILITARY COURT OR PLED NOLO CONTENDERE TO, A
42 FELONY DURING THE SEVEN-YEAR PERIOD PRECEDING THE DATE OF THE APPLICA-
43 TION FOR LICENSING OR AT ANY TIME PRECEDING SUCH DATE OF APPLICATION, IF
44 SUCH FELONY INVOLVED AN ACT OF FRAUD, DISHONESTY, OR A BREACH OF TRUST,
45 OR MONEY LAUNDERING or (b) has had a MORTGAGE BANKER license [or], MORT-
46 GAGE BROKER registration OR MORTGAGE LOAN ORIGINATOR AUTHORIZATION,
47 LICENSE OR LICENSE EQUIVALENT revoked [by the superintendent] IN ANY
48 GOVERNMENTAL JURISDICTION, EXCEPT THAT A SUBSEQUENT FORMAL VACATION OF
49 SUCH REVOCATION SHALL NOT BE DEEMED TO BE A REVOCATION or (c) has been a
50 director, partner, or substantial stockholder of an entity which has had
51 a license or registration revoked by the superintendent or (d) has been
52 an agent, employee or officer of an entity, or a consultant to, or
53 person having had a similar relationship with, any entity which has had
54 a license or registration revoked by the superintendent where such
55 person shall have been found by the superintendent to bear responsibil-
56 ity in connection with the revocation. The term "substantial stockhold-
S. 7445 7
1 er", as used in this subdivision, shall be deemed to refer to a person
2 owning or controlling directly or indirectly ten [per centum] PERCENT or
3 more of the total outstanding stock of a corporation.
4 S 15. Subdivision 1 of section 601-a of the banking law, as amended by
5 chapter 152 of the laws of 1993, is amended to read as follows:
6 1. The following acquisitions are hereby authorized whether by
7 purchase or otherwise, other than by merger, of all or a substantial
8 part of the assets of:
9 (a) One or more corporations organized under the laws of this state
10 and subject to the provisions of article three, article eight or article
11 twelve of this chapter by another corporation subject to the provisions
12 of the same article.
13 (b) One or more safe deposit companies by a bank or trust company.
14 (c) One or more mutual savings banks by another mutual savings bank.
15 (d) One or more mutual savings and loan associations by another mutual
16 savings and loan association.
17 (e) One or more stock-form savings banks by another stock-form savings
18 bank.
19 (f) One or more stock-form savings and loan associations by another
20 stock-form savings and loan association.
21 (g) One or more banking institutions by another banking institution to
22 the extent permitted under regulations of the banking board. FOR
23 PURPOSES OF THIS SUBDIVISION, A BRANCH OR AGENCY OF A FOREIGN BANKING
24 CORPORATION LICENSED UNDER ARTICLE FIVE OF THIS CHAPTER SHALL BE CONSID-
25 ERED A BANKING INSTITUTION.
26 S 16. Section 604-a of the banking law, as added by chapter 743 of the
27 laws of 1958, the section heading and subdivision 1 as amended by chap-
28 ter 297 of the laws of 1993, subdivision 2 as amended by chapter 489 of
29 the laws of 1963 and subdivision 3 as amended by chapter 115 of the laws
30 of 1981, is amended to read as follows:
31 S 604-a. Transfer of fiduciary relationships [of a banking institu-
32 tion]. 1. If any banking institution, including a bank or trust company,
33 national banking association, savings bank, savings and loan associ-
34 ation, federally chartered savings bank, federally chartered savings and
35 loan association, BRANCH OR AGENCY OF A FOREIGN BANKING CORPORATION,
36 located in this state, shall have transferred all or substantially all
37 of its assets to another banking institution in a transaction subject to
38 this chapter pursuant to a written agreement between the transferor and
39 transferee [corporations] whereby the transferee [corporation] has
40 assumed the deposit liabilities, if any, of the transferor [corporation]
41 and has agreed to assume all fiduciary relationships of the transferor
42 [corporation], the transferee [corporation] may file in the office of
43 the superintendent a certificate in its name and under its [corporate]
44 seal, signed by its president, secretary or cashier, setting forth a
45 copy of such agreement and stating that the transferee [corporation]
46 assumes all of the fiduciary relationships of the transferor [corpo-
47 ration] pursuant to the provisions of this section; provided, however,
48 that such certificate shall not be filed unless the approval of the
49 superintendent shall have been endorsed thereon or annexed thereto
50 before filing.
51 2. Upon the filing of such certificate in the office of the super-
52 intendent, all of the property, rights, powers and franchises of the
53 transferor [corporation] as fiduciary shall vest in the transferee
54 [corporation] and the transferee [corporation] shall be deemed to have
55 assumed all of the debts, liabilities, obligations and duties of the
56 transferor [corporation] as fiduciary, and to have succeeded to all the
S. 7445 8
1 fiduciary relationships of the transferor [corporation], as fully and
2 with the same effect as is provided in sections one hundred thirty-six-c
3 and six hundred two in the case of a merger, and any reference to the
4 transferor [corporation] as fiduciary in any capacity, contained in any
5 contract, will or document, whether executed or taking effect before or
6 after the filing of such certificate in the office of the superinten-
7 dent, shall be considered a reference to the transferee [corporation] if
8 not inconsistent with the other provisions of the contract, will or
9 document.
10 3. For the purposes of this section the fiduciary relationships of the
11 transferor shall include all relationships as agent, trustee, guardian,
12 receiver, committee, conservator, executor, administrator, or other
13 fiduciary in any capacity or for any purpose mentioned in section one
14 hundred, and all relationships of the transferor as bailee or depositary
15 of personal property.
16 4. This section shall not be deemed to authorize a transferee [corpo-
17 ration] to assume any fiduciary relationship of a kind which it would
18 not otherwise have power to undertake and perform. Nothing in this
19 section shall be deemed to authorize any such transferee [corporation]
20 to maintain as its own office any office previously maintained by the
21 transferor [corporation], and authority, if any, to maintain any such
22 office shall be governed by the applicable provisions of law other than
23 this section. This section shall not be deemed to apply to contracts of
24 the transferor for the leasing of safe deposit boxes or vaults.
25 S 17. Paragraph (e) of subdivision 1 of section 606 of the banking
26 law, as amended by chapter 1 of the laws of 1984, is amended to read as
27 follows:
28 (e) Has, AS DETERMINED BY THE SUPERINTENDENT IN HIS OR HER SOLE
29 DISCRETION, (I) an impairment of its capital; or[, in the case of a
30 mutual savings and loan association or credit union, has assets insuffi-
31 cient to pay its debts and the amount due members upon their shares]
32 (II) A DEFICIENT CAPITAL CONDITION GIVEN THE EXTENT AND NATURE OF ITS
33 OPERATIONS; PROVIDED THAT, FOR PURPOSES OF THIS SUBPARAGRAPH, A DEFI-
34 CIENT CAPITAL CONDITION SHALL INCLUDE, WITHOUT LIMITATION, A FINDING BY
35 THE SUPERINTENDENT THAT THE INSTITUTION IS SIGNIFICANTLY UNDERCAPITAL-
36 IZED, AS SUCH TERM IS USED IN THE REGULATIONS OF SUCH INSTITUTION'S
37 PRIMARY FEDERAL REGULATOR;
38 S 18. Section 609 of the banking law, as amended by chapter 684 of the
39 laws of 1938, the section heading and subdivision 1 as amended by chap-
40 ter 1 of the laws of 1984, subdivision 6 and paragraph (k) of subdivi-
41 sion 8 as amended and subdivision 9 as added by chapter 849 of the laws
42 of 1964 and paragraph (g) of subdivision 8 as amended by chapter 115 of
43 the laws of 1981, is amended to read as follows:
44 S 609. Resumption of business by bank[,] OR trust company [or indus-
45 trial bank]; retirement of certificates; applicability to stock-form
46 savings banks and stock-form savings and loan associations. 1. Any bank,
47 trust company, stock-form savings bank or stock-form savings and loan
48 association of which the superintendent has taken possession or which is
49 operating under restrictions imposed by duly constituted authority may
50 be permitted by the superintendent, in his OR HER discretion and subject
51 to such conditions as may be approved by him OR HER, to resume business
52 in accordance with the provisions of this section.
53 2. No bank[,] OR trust company [or industrial bank] permitted by the
54 superintendent to resume business in accordance with the provisions of
55 this section shall, without previously obtaining the written permission
56 of the superintendent, pay, on account of any deposit made or debt
S. 7445 9
1 incurred before such restrictions were imposed or before the superinten-
2 dent took possession of such bank[,] OR trust company [or industrial
3 bank], more than that proportion of eighty [per centum] PERCENT of the
4 total value of its sound assets, as determined by the superintendent,
5 which such deposit or debt bears to the total of the deposits and debts
6 of such bank[,] OR trust company [or industrial bank] at the time of
7 resuming business[:]; provided that nothing contained in this section
8 shall affect any preference created by any law of this state for the
9 benefit of any depositor or creditor or impair the rights of any secured
10 depositor or creditor in any assets lawfully pledged or assigned as such
11 security. For the purposes of this section, the holder of a judgment
12 against any such bank[,] OR trust company [or industrial bank] for the
13 payment of money arising out of a cause of action arising prior to such
14 resumption of business, whether such judgment was recovered prior or
15 subsequent to such resumption of business, shall have the same rights as
16 if he OR SHE were a depositor having a balance equal to the amount of
17 such judgment at the time such restrictions were imposed or at the time
18 the superintendent took possession of such bank[,] OR trust company [or
19 industrial bank]. The superintendent shall prepare for each such bank[,]
20 OR trust company [or industrial bank] a list of the assets which, in his
21 OR HER judgment, are sound and the value thereof as determined by him OR
22 HER.
23 3. Such bank[,] OR trust company [or industrial bank] shall, imme-
24 diately upon resuming business, issue to its depositors and creditors
25 non-negotiable transferable certificates, in a form approved by the
26 superintendent, representing the part of its deposits and debts which it
27 is not authorized to pay at that time under the provisions of subdivi-
28 sion two of this section. Such certificates shall bear interest, if any,
29 at a rate not in excess of three [per centum] PERCENT per annum.
30 4. The superintendent shall from time to time determine the excess of
31 the value of the sound assets of such bank[,] OR trust company [or
32 industrial bank] over the total of the principal amount of such certif-
33 icates outstanding and of the deposits and debts of such bank[,] OR
34 trust company [or industrial bank] not represented by such certificates,
35 including deposits made and debts incurred after resuming business. The
36 amount by which such excess is greater than the excess of the value of
37 the sound assets of such bank[,] OR trust company [or industrial bank],
38 determined as provided in subdivision two of this section, over its
39 total deposits and debts at the time of resuming business may, unless
40 the superintendent disapproves, be paid pro rata on account of the prin-
41 cipal due on such certificates or, if the principal has been paid in
42 full, on account of the interest, if any, due thereon. No such bank[,]
43 OR trust company [or industrial bank] shall, without previously obtain-
44 ing the written permission of the superintendent, make any other payment
45 on account of the principal or interest of such certificates.
46 5. No dividends shall be paid on the stock of such bank[,] OR trust
47 company [or industrial bank] while any such certificates are outstand-
48 ing, unless, having previously secured the written permission of the
49 superintendent to pay such certificates, it shall set aside and maintain
50 a sum sufficient for the payment of all such outstanding certificates
51 and the interest, if any, accrued thereon and shall publish once a week
52 for two calendar weeks in a newspaper published in the county in which
53 its principal office is located, notice to the effect that it will pay
54 all such certificates and the interest, if any, accrued thereon upon due
55 presentation for payment. If, thereafter, any such certificate together
56 with all interest, if any, accrued thereon, shall not be paid when so
S. 7445 10
1 presented, the authority of such bank[,] OR trust company [or industrial
2 bank] to pay such dividends shall cease.
3 6. So long as any of such certificates are outstanding, every holder
4 of such a certificate shall have the same right to notice of all regular
5 or special meetings of the stockholders of such bank[,] OR trust company
6 [or industrial bank] and to attend and to vote in person or by proxy at
7 such meetings as would a holder of stock of the par value of the unpaid
8 principal amount of such certificate, except that no holder of a certif-
9 icate or certificates shall be entitled to vote upon any change in
10 respect to shares or capital stock pursuant to title eight of article
11 fifteen OF THIS CHAPTER or to receive notice of or attend a meeting of
12 stockholders specially called for that purpose. Within sixty days after
13 such bank[,] OR trust company [or industrial bank] has resumed business
14 a meeting of its stockholders and holders of such certificates shall be
15 called upon notice prescribed by the superintendent. At such meeting
16 directors shall be elected who shall succeed the former directors, and
17 the directors so elected shall elect officers who shall succeed the
18 former officers. Directors in office at the date of such meeting may be
19 elected at such meeting to succeed themselves and the directors elected
20 at such meeting may elect officers then serving to succeed themselves.
21 7. If the superintendent shall retake possession of the business and
22 property of such bank[,] OR trust company [or industrial bank] while any
23 such certificates are still outstanding and liquidate its business as
24 elsewhere provided in this chapter, deposits and debts not represented
25 by such certificates, including deposits made and debts incurred after
26 resuming business, shall be entitled to payment of principal and inter-
27 est in priority to the payment of the principal and interest of such
28 certificates.
29 8. (a) A plan for the retirement of certificates issued or made avail-
30 able by a bank[,] OR trust company [or industrial bank] pursuant to the
31 provisions of this section may be promulgated in accordance with this
32 subdivision [eight] in any case where the value of all the assets of
33 such bank[,] OR trust company [or industrial bank] as determined by the
34 superintendent is less than the aggregate of the amounts owing to depos-
35 itors and other creditors plus the unpaid amount of all such certif-
36 icates so issued or made available by such bank[,] OR trust company [or
37 industrial bank]. Such plan may be promulgated by such bank[,] OR trust
38 company [or industrial bank] or by the holders of ten [per centum]
39 PERCENT or more in principal amount of all such outstanding certificates
40 or the representative or representatives of such holders.
41 (b) Such plan may provide for any one or more of the following:
42 (1) The retirement of certificates by the issuance in exchange there-
43 for of shares of capital stock or debentures or both of such bank[,] OR
44 trust company [or industrial bank];
45 (2) The issuance of preferred stock of such bank[,] OR trust company
46 [or industrial bank] and the sale of such preferred stock for cash or
47 its exchange for real or personal property or for outstanding capital
48 notes, debentures or other obligations of such bank[,] OR trust company
49 [or industrial bank];
50 (3) The issuance of fractional shares of capital stock of such bank[,]
51 OR trust company [or industrial bank] in exchange for certificates or
52 portions thereof in unpaid amount insufficient to permit the exchange
53 thereof for a full share of capital stock. Such fractional shares of
54 capital stock shall have no voting rights, but, when combined with other
55 fractional shares in sufficient amount, shall be convertible into a full
56 share or shares of capital stock;
S. 7445 11
1 (4) The transfer into a separate account upon the books of such
2 bank[,] OR trust company [or industrial bank] or to a separate corpo-
3 ration, of any assets to be liquidated for the pro rata benefit of
4 certificate holders and the issuance to certificate holders of evidences
5 of participation in such assets if transferred into a separate account
6 upon the books of such bank[,] OR trust company [or industrial bank], or
7 of stock or obligations or both of such separate corporation, if such
8 assets are transferred to a separate corporation;
9 (5) The organization of a corporation to issue its stock or obli-
10 gations or both in exchange for certificates and for the exchange of
11 certificates so acquired by such corporation for shares of the capital
12 stock or debentures or both of such bank[,] OR trust company [or indus-
13 trial bank];
14 (6) The amount of capital stock which such bank[,] OR trust company
15 [or industrial bank] shall have upon the plan becoming effective, the
16 classes, if any, into which such capital stock shall be divided, the
17 number of shares in each class and the par value of each share.
18 In addition to provisions herein specifically authorized to be
19 contained in a plan promulgated pursuant to this subdivision, such plan
20 may also contain any other provisions deemed necessary or convenient to
21 effectuate the general purpose or purposes of the plan.
22 (c) The person or persons promulgating such plan shall first submit it
23 to the superintendent for his OR HER approval. If the plan is approved
24 by the superintendent, such person shall within sixty days of such
25 approval submit it to the supreme court in and for the county in which
26 the principal office of such bank[,] OR trust company [or industrial
27 bank] is located, together with an application for its approval. Such
28 application shall set forth such facts as may be necessary to enable the
29 court to determine the fairness of such plan and shall be made upon an
30 order to show cause which shall provide that notice thereof of a kind
31 which the court deems to be adequate shall be given by such bank[,] OR
32 trust company [or industrial bank] to all holders of such certificates
33 and all other persons whose interests, in the opinion of the court, may
34 be affected by such plan. If the issue is raised in any proceeding
35 involving a plan promulgated pursuant to this subdivision, a certificate
36 executed by the superintendent and filed with the court shall be
37 presumptive evidence of the fact that the value of all of the assets of
38 such bank[,] OR trust company [or industrial bank] is less than the
39 aggregate of the amounts owing to depositors and other creditors plus
40 the unpaid amount of all such certificates issued or made available by
41 such bank[,] OR trust company [or industrial bank].
42 (d) The superintendent or the bank[,] OR trust company [or industrial
43 bank] or any person or persons authorized to promulgate a plan hereunder
44 may propose and submit to the court an alternative plan or a modifica-
45 tion or modifications of any plan before the court. The court may modify
46 any such plan or may propose a new or alternative plan, provided, howev-
47 er, that a modification or modifications, whether proposed by the court
48 or by any other person or persons, may be made only after a hearing upon
49 notice to all holders of certificates and all other persons whose inter-
50 ests, in the opinion of the court, may be affected thereby, and subject
51 to the right of any person who shall previously have consented to such
52 plan to withdraw such consent within a period to be prescribed by the
53 court and after such notice as the court may direct. If any person
54 having such right of withdrawal shall not withdraw within the period so
55 prescribed he OR SHE shall be deemed to have approved such plan as so
56 modified.
S. 7445 12
1 (e) After the hearing or hearings above provided the court shall by
2 order approve a plan, with or without modifications, or shall reject all
3 such plans, provided, however, that no order made pursuant to this para-
4 graph approving such plan shall be made or entered unless such plan, in
5 final form, shall first have been approved in writing by the superinten-
6 dent and such written approval shall have been filed in the proceeding.
7 If at the time of making the order approving such plan, the court is
8 satisfied that the holders of two-thirds in amount of such certificates
9 have approved such plan, the order of the court shall recite such fact
10 and shall declare that such plan shall be effective upon the filing by
11 the superintendent in the office of the clerk of the county in which is
12 located the principal office of such bank[,] OR trust company [or indus-
13 trial bank] of the certificate required to be filed pursuant to para-
14 graph (k) of this subdivision. If at the time of making such order, such
15 plan shall not have been approved by the holders of two-thirds in amount
16 of such certificates, such order shall provide that upon satisfactory
17 proof of the fact that the holders of two-thirds in amount of such
18 certificates shall have approved the same, a further order may be
19 entered ex parte declaring that such plan shall be effective upon the
20 filing by the superintendent in the office of the clerk of the county in
21 which is located the principal office of such bank[,] OR trust company
22 [or industrial bank] of the certificate required to be filed pursuant to
23 paragraph (k) of this subdivision.
24 (f) Upon the entering of an order declaring that such plan shall be
25 effective upon the filing by the superintendent in the office of the
26 county clerk of the certificate required to be filed pursuant to para-
27 graph (k) of this subdivision, such plan shall become binding upon the
28 holders of all certificates of such bank[,] OR trust company [or indus-
29 trial bank] and all such holders shall be conclusively deemed to have
30 consented to all the terms and conditions of such plan whether or not
31 all of such holders shall actually have consented thereto and whether or
32 not all of them shall have received notice thereof or of the hearing
33 thereon hereinbefore provided.
34 (g) Every executor, administrator, trustee, guardian, committee,
35 conservator, receiver, or other fiduciary, and every public and private
36 corporation or association, and every political and public instrumental-
37 ity or body, including, but not by way of limitation of the generality
38 of the foregoing, boards of education and school districts and other
39 special districts, is hereby authorized and empowered to approve and
40 accept a plan promulgated pursuant to this subdivision and to execute
41 and deliver such papers and documents as may be necessary or proper to
42 evidence such approval and acceptance, and shall not be subject to any
43 liability whatsoever for any such approval or acceptance or any exchange
44 of certificates for stock or other securities or both made pursuant
45 thereto.
46 (h) A plan promulgated pursuant to this subdivision may be effectuated
47 even though it has not been expressly approved by the holders of two-
48 thirds in amount of all outstanding certificates, provided, as an alter-
49 native to such express approval, the provisions of this paragraph have
50 been complied with. After the plan is approved by the superintendent as
51 provided by paragraph (c) of this subdivision, the person or persons
52 promulgating such plan shall file a copy thereof with the clerk of the
53 court and shall prepare and mail to each of the holders of such certif-
54 icates and to each of the holders of stock of the bank[,] OR trust
55 company [or industrial bank], addressed by registered mail to him OR
56 HER, postage prepaid, to his OR HER last known address as the same
S. 7445 13
1 appears on the records of the bank[,] OR trust company [or industrial
2 bank], a summary of such plan together with a notice stating in
3 substance that such plan will be presented to the supreme court in and
4 for the county in which the principal office of the bank[,] OR trust
5 company [or industrial bank] is located, and designating a date, which
6 date shall not be less than thirty days after the mailing of such
7 notice, when such court will consider such plan and hear any objection
8 thereto on the part of any holder of a certificate or of stock. Such
9 notice shall also be published by the person or persons promulgating
10 such plan once, at least twenty days before said date, in a daily news-
11 paper of general circulation published in the county where such hearing
12 is to be had and if no such daily newspaper is published in such county,
13 then such notice shall be published in a newspaper of general circu-
14 lation in said county. Upon the return of such notice or any adjourned
15 date or dates thereof, the court shall hear the parties interested ther-
16 ein and may accept proof in affidavit form or otherwise as to any facts
17 and circumstances material thereto. The court upon proof by affidavit
18 that the provisions hereof with respect to mailing and publication have
19 been fully complied with shall thereupon approve, modify or disapprove
20 such plan, but in no event shall any such plan, with or without modifi-
21 cations, be approved by the court unless the court deems such plan fair
22 and equitable to the holders of certificates and unless such plan, in
23 final form, shall first have been approved in writing by the superinten-
24 dent, and such written approval shall have been filed in the proceeding;
25 or if written dissent therefrom, duly executed and acknowledged, shall
26 be filed with the clerk of the court prior to such return date, or prior
27 to such other date as may be fixed by the court, by the holders in the
28 aggregate of more than thirty-three and one-third [per centum] PERCENT
29 of the face amount of the certificates affected by such plan. All hold-
30 ers of certificates who have not dissented from the plan in the manner
31 provided by this paragraph and prior to the return date or such other
32 date as may be fixed by the court shall be conclusively deemed to have
33 assented thereto. Such plan shall contain a provision in respect of
34 certificate holders dissenting thereto, to the effect that adequate
35 protection will be provided for the realization by them of the value of
36 their certificates by such method as will in the opinion of the court,
37 under and consistent with the circumstances of the particular case, be
38 equitable and fair to them. When such plan, with or without modifica-
39 tions, shall be approved by the court, the court shall make an order
40 reciting such approval and declaring that such plan shall be effective
41 upon the filing by the superintendent in the office of the clerk of the
42 county in which is located the principal office of such bank[,] OR trust
43 company [or industrial bank] of the certificate required to be filed
44 pursuant to paragraph (k) of this subdivision. The appellate court to
45 which an appeal is taken by any dissenting certificate holder or by any
46 stockholder from any action by the court pursuant to this section shall
47 have the right to impose upon the appellant as part of the costs of the
48 appeal, reasonable fees of counsel for the respondent, and such appel-
49 late court may also, in its discretion, require bond therefor before
50 entertaining any such appeal.
51 (i) Upon the entering of an order declaring that such plan shall be
52 effective upon the filing by the superintendent in the office of the
53 county clerk of the certificate required to be filed pursuant to para-
54 graph (k) of this subdivision, such steps shall be taken by the super-
55 intendent and all other persons, and all acts shall be done as may be
56 required by such plan and as may be necessary or desirable to make such
S. 7445 14
1 plan operative. Within ten days after the entering of such order, the
2 superintendent shall issue an order pursuant to article two of this
3 chapter directing that such bank[,] OR trust company [or industrial
4 bank] shall forthwith make good the impairment of its capital OR CAPITAL
5 DEFICIENCY. Upon receipt of such order, the directors of the bank[,] OR
6 trust company [or industrial bank] shall give notice to each stockholder
7 of such requisition and of the amount of the assessment he OR SHE must
8 pay, which amount shall be the aggregate par value of his OR HER shares.
9 Such notice shall be mailed to each stockholder at his OR HER address
10 appearing on the records of the bank[,] OR trust company [or industrial
11 bank] or shall be served personally upon him OR HER. Notwithstanding
12 any provision of section one hundred fourteen [or section three hundred
13 six] of this chapter, all outstanding stock certificates of the bank[,]
14 OR trust company [or industrial bank] shall be canceled of record not
15 less than thirty days after notice of assessment is given to stockhold-
16 ers as herein provided, and thereupon such stock certificates shall be
17 null and void for all purposes and the rights of the holders thereunder
18 shall cease and determine; provided, however, that each stockholder who
19 pays the full amount of such assessment within thirty days after notice
20 of assessment is given as herein provided shall receive, in lieu of the
21 stock on account of which such assessment was paid, new stock in the
22 amount to which he OR SHE would be entitled if he OR SHE held certif-
23 icates issued by such bank[,] OR trust company [or industrial bank]
24 pursuant to the provisions of this section in an aggregate unpaid prin-
25 cipal and interest amount equal to the assessment so paid.
26 (j) Not less than thirty nor more than sixty days after notice of
27 assessment is given to stockholders as provided in paragraph (i) of this
28 subdivision, the superintendent shall, if the plan so provides, cause
29 any assets of such bank[,] OR trust company [or industrial bank] which
30 are to be liquidated for the pro rata benefit of certificate holders, to
31 be set aside in a special account upon the books of such bank[,] OR
32 trust company [or industrial bank] or transferred to a separate corpo-
33 ration.
34 (k) Upon the completion of the acts required to be done pursuant to
35 paragraph (i) and paragraph (j) of this subdivision and not more than
36 sixty days after notice of assessment is given to stockholders as
37 provided in paragraph (i) of this subdivision, the superintendent shall
38 execute in triplicate a certificate declaring such plan to be effective
39 and stating the amount of capital stock which such bank[,] OR trust
40 company [or industrial bank] shall thereafter have, the classes, if any,
41 into which such capital stock shall be divided, the number of shares in
42 each class and the par value of each such share. The amount of capital
43 stock stated in such certificate shall be not less than the amount of
44 capital stock required to be issued to certificate holders pursuant to
45 such plan, plus the amount of capital stock required, pursuant to para-
46 graph (i) of this subdivision, to be issued to stockholders who shall
47 have paid the full amount of the assessments levied pursuant to such
48 paragraph (i). The amount of capital stock, the number of shares and
49 the par value of each such share as stated in such certificate shall be
50 the amount of capital stock, the number of shares and the par value
51 thereof which such bank[,] OR trust company [or industrial bank] shall
52 thereafter be authorized to have, provided that nothing herein contained
53 shall be deemed to limit the power of any such bank[,] OR trust company
54 [or industrial bank] subsequently to change the amount of its capital
55 stock, the number of its shares or the par value of its shares pursuant
56 to subdivision two of section eight thousand one. One of such triplicate
S. 7445 15
1 certificates shall be transmitted forthwith by the superintendent to
2 such bank[,] OR trust company [or industrial bank], another shall be
3 filed in the office of the superintendent and the third shall be filed
4 by the superintendent in the office of the clerk of the county in which
5 is located the principal office of such bank[,] OR trust company [or
6 industrial bank]. Upon such filing in the office of the county clerk,
7 the plan shall become effective and all certificates theretofore issued
8 by such bank[,] OR trust company [or industrial bank] pursuant to the
9 provisions of this section shall be null and void and shall not be
10 deemed to be outstanding for any purpose. Thereupon such bank[,] OR
11 trust company [or industrial bank] shall issue and make available to the
12 holders of such certificates shares of stock or debentures or both of
13 such bank[,] OR trust company [or industrial bank], and if the plan so
14 provides, evidences of participation in the assets aside in a special
15 account or stock or other securities or both of a separate corporation,
16 in the proportions and amounts specified in such plan.
17 (l) Within sixty days after a plan pursuant to this subdivision has
18 become effective with respect to any bank[,] OR trust company [or indus-
19 trial bank], there shall be called in accordance with its by-laws a
20 meeting of its stockholders who shall elect directors who shall succeed
21 the former directors. The directors so elected shall elect officers who
22 shall succeed the former officers. Directors in office at the date of
23 such meeting may be elected at such meeting to succeed themselves and
24 the directors elected at such meeting may elect officers then serving to
25 succeed themselves. [Notwithstanding the requirements as to ownership of
26 capital stock contained in section one hundred sixteen or section three
27 hundred three of this chapter, the] THE directors of such bank[,] OR
28 trust company [or industrial bank] holding office at the time that such
29 plan becomes effective may continue to hold office as directors, until
30 their successors are elected and shall have qualified.
31 (m) The supreme court in and for the county in which is located the
32 principal office of such bank[,] OR trust company [or industrial bank]
33 is hereby vested with jurisdiction and authority to determine the fair-
34 ness of, and to approve or disapprove, any plan, or modification or
35 modifications thereof, which may be promulgated hereunder and to deter-
36 mine the fairness of, and to approve or disapprove, the terms and condi-
37 tions of the issuance and exchange of stock or other securities, or
38 both, of any corporation for certificates issued pursuant to the
39 provisions of this section and to make such orders and do such other
40 things as may be required by this subdivision or as may be necessary or
41 convenient to carry out the purposes hereof.
42 9. If there be in article fifteen of this chapter a provision which
43 conflicts with any provision of this section six hundred nine, the
44 provision of this section six hundred nine shall prevail, and the
45 conflicting provision of article fifteen shall not apply in such case.
46 If there be in article fifteen a provision relating to a matter embraced
47 in this section six hundred nine, but not in conflict therewith, both
48 provisions shall apply.
49 S 19. Section 520-c of the general business law, as added by chapter 1
50 of the laws of 1994, is amended to read as follows:
51 S 520-c. Credit information. 1. The banking department shall establish
52 AND MAKE AVAILABLE ON ITS WEBSITE, OR PROVIDE A LINK OR LINKS ON SUCH
53 SITE TO OTHER WEBSITES WITH, a toll-free telephone number service at
54 which CONSUMERS MAY OBTAIN information on annual percentage rates, annu-
55 al fees, per-transaction charges, late payment fees, overlimit fees and
56 grace periods for credit cards [can be obtained], TO THE EXTENT READILY
S. 7445 16
1 AVAILABLE TO THE BANKING DEPARTMENT. Every issuer of credit cards to
2 natural persons residing in this state shall set forth on each solicita-
3 tion, application and monthly billing statement mailed or otherwise
4 presented to such persons, a notice stating "New York residents may
5 contact the New York state banking department [to obtain a] BY TELEPHONE
6 OR VISIT ITS WEBSITE FOR FREE INFORMATION ON comparative [listing of]
7 credit card rates, fees and grace periods." Such notice shall be printed
8 on the same side as the disclosure of rates, fees and charges, in case
9 of the solicitations and applications, and on the same side as the
10 notice of the balance of the account and the amount due are printed, in
11 the case of the monthly billing statement. The superintendent of banks
12 shall prescribe the [address and] telephone number AND WEBSITE to be
13 printed next to the notice. The notice shall be in type no smaller than
14 eight points. [Issuers shall include such notice in materials sent to
15 residents of this state as required under this section commencing Octo-
16 ber first, nineteen hundred ninety-four.]
17 2. [The superintendent of banks shall develop and distribute to all
18 issuers of credit cards, no more than thirty days after the effective
19 date of this section, a form which shall be used for the purpose of
20 collecting information on annual percentage rates, annual fees, per-
21 transaction charges, late payment fees, overlimit fees and grace periods
22 governed by the terms of each type of credit card offered by such issuer
23 to natural persons residing in this state. Issuers shall return the
24 forms to the banking department no later than one hundred fifty days
25 after the effective date of this section, and annually thereafter, but
26 no later than April first of each year, commencing in nineteen hundred
27 ninety-five. The superintendent of banks shall publish the information
28 obtained from such forms and make it available to New York residents
29 upon request, commencing not later than October first, nineteen hundred
30 ninety-four, and annually thereafter but not later than July first of
31 each year.
32 3.] The superintendent of banks is authorized to adopt such rules and
33 regulations as consistent with the provisions of this section.
34 [4] 3. For the purposes of this section:
35 (a) "Credit card" means any card issued pursuant to an agreement which
36 allows the holder of the card to obtain goods and services on the credit
37 of the issuer; and
38 (b) "Issuer" means any bank, trust company, savings bank, savings and
39 loan association, or branch of a foreign banking corporation the depos-
40 its of which are insured by the federal deposit insurance corporation,
41 which is incorporated, chartered, organized or licensed under the laws
42 of this state or any other state or the United States, which issues
43 credit cards to natural persons residing in this state.
44 [5] 4. The authority of the superintendent of banks pursuant to
45 sections thirty-nine and forty-four of the banking law shall extend to
46 violations of this section by any issuer.
47 S 20. This act shall take effect immediately; provided that section
48 nineteen of this act shall take effect on the thirtieth day after it
49 shall have become a law.
