N.Y. BNK Law § 28-B — New York Code / Act BNK / Article 2 / Section 28-B
Credit needs of local communities
Status: in_force

§ 28-b. Credit needs of local communities. 1. Each banking institution\nas defined in subdivision four of this section to which the Community\nReinvestment Act of 1977, United States P.L. 95-128, applies shall file\nwith the superintendent a copy of each report and document which it is\nrequired to prepare for or file with one or more federal agencies\npursuant to the provisions of that law and the rules and regulations\npromulgated thereunder. Where a banking institution has filed such\nreports or documents with the superintendent, an update of the reports\nor documents shall be required at such time as the banking institution\nrequests the superintendent to take any action on any application to\nwhich the provisions of subdivision three of this section apply.\n  3. (a) When taking any action on an application or notice made by a\nbanking institution under (i) section one hundred five, two hundred\ntwenty-four, two hundred forty, or three hundred ninety-six of this\nchapter for a branch office, (ii) section one hundred ninety-one of this\nchapter for a public accommodation office, (iii) section six hundred\none-b of this chapter for approval of a merger or purchase of assets, or\n(iv) under section one hundred five-a, two hundred forty-a or three\nhundred ninety-six-a of this chapter for the use or installation of an\nautomated teller machine, point-of-sale terminal or similar electronic\nfacility or on any other application or notice to which the\nsuperintendent of financial services shall by rule or regulation make\napplicable the provisions of this section, the superintendent shall take\ninto account, among other factors, an assessment, in writing, of the\nrecord of performance of the banking institution in helping to meet the\ncredit needs of its entire community, including low and moderate-income\nneighborhoods and minority- and women-owned businesses, consistent with\nsafe and sound operation of the banking institution. Such assessment and\nany written communications from the department of financial services to\na banking institution relating to such assessment shall be made\navailable to the public upon request, provided that nothing contained in\nthis subdivision shall be deemed to alter, amend or affect the\nprovisions of subdivision ten of section thirty-six of this chapter. In\nmaking such assessment the superintendent shall review all reports and\ndocuments filed with him or her pursuant to subdivision one of this\nsection and any signed, written comments received by the superintendent\nwhich specifically relate to the banking institution's performance in\nhelping to meet the credit needs of its community. In addition, the\nsuperintendent shall consider the following factors in assessing a\nbanking institution's record of performance, and include in its written\nassessment required by this section the record of performance of such\nbanking institution as to each of the following factors:\n  (1) Activities conducted by the banking institution to ascertain\ncredit needs of its community, including the extent of the banking\ninstitution's efforts to communicate with members of its community\nregarding the credit services being provided by the banking institution;\n  (2) The extent of the banking institution's marketing and special\ncredit-related programs to make members of the community aware of the\ncredit services offered by the banking institution;\n  (3) The extent of participation by the banking institution's board of\ndirectors or board of trustees in formulating the banking institution's\npolicies and reviewing its performance with respect to the purposes of\nthe Community Reinvestment Act of 1977;\n  (4) Any practices intended to discourage application for types of\ncredit set forth in the banking institution's Community Reinvestment Act\nStatement(s);\n  (5) The geographic distribution of the banking institution's credit\nextensions, credit applications and credit denials;\n  (6) Evidence of prohibited discriminatory or other illegal credit\npractices;\n  (7) The banking institution's record of opening and closing offices\nand providing services at offices;\n  (8) The banking institution's participation, including investments, in\nlocal community development and redevelopment projects or programs and\nin technical assistance programs for small businesses and minority- and\nwomen-owned businesses;\n  (9) The banking institution's origination of residential mortgage\nloans, housing rehabilitation loans, home improvement loans and small\nbusiness or small farm or minority- and women-owned business loans\nwithin its community or the purchase of such loans originated in its\ncommunity;\n  (10) The banking institution's participation in\ngovernmentally-insured, guaranteed or subsidized loan programs for\nhousing, small businesses or small farms;\n  (11) The banking institution's ability to meet various community\ncredit needs based on its financial condition, size, legal impediments,\nlocal economic condition and other factors;\n  (11-a) The geographic distribution, availability and use of automated\nteller machines, point-of-sale terminals, personal computer banking,\ndebit cards or similar electronic facilities or services; and any\ntraining of customers thereon among every branch of the banking\ninstitution, if the institution offers such services to any of its\ncustomers; and\n  (12) Other factors that, in the judgment of the superintendent,\nreasonably bear upon the extent to which a banking institution is\nhelping to meet the credit needs of its entire community, including,\nwithout limitation, the banking institution's participation in credit\ncounseling services or participation in a banking development district\nestablished pursuant to section ninety-six-d of this chapter by\nestablishing a branch in such district.\n  (b) In assessing the record of performance of a banking institution\npursuant to the provisions of paragraph (a) of this subdivision, the\nsuperintendent may, where he or she deems it appropriate, provide for\npublic hearings when an objection to the banking institution's\napplication or notification has been submitted.\n  (c) An assessment of a banking institution's record of performance\nunder paragraph (a) of this subdivision may be the basis for denying an\napplication or notice under the provisions of this section.\n  (d) When taking any action pursuant to paragraph (a) of this\nsubdivision, the superintendent shall request from the applicant or\nnotificant banking institution and from the appropriate federal bank\nregulatory authorities any documents, other than those required to be\nfiled with the superintendent by this section or by other applicable\nstatutes or regulations, which are (1) filed with the federal bank\nregulatory authorities in connection with the application or notice or\n(2) produced by the applicant or notificant banking institution or\nothers in connection with the application or notice.\n  4. Notwithstanding any other provision of this chapter or other law to\nthe contrary, the term banking institution when used in this section\nshall mean and include all banks, trust companies, savings banks,\nsavings and loan associations, credit unions and foreign banking\ncorporations incorporated, chartered, organized or licensed under the\nlaws of this state. In the case of a foreign banking corporation\nlicensed pursuant to this article and maintaining a branch in this\nstate, the management of the branch shall establish a committee of not\nfewer than three officers to function in the role of a board of\ndirectors for purposes of this section.\n  5. The superintendent is hereby authorized and empowered to promulgate\nrules and regulations effectuating the provisions of this section,\nincluding any rules and regulations providing that the assessment of\nbanking institutions referred to in subdivision three of this section\nshall be made on a graduated numerical basis.\n  6. If any clause, sentence, paragraph, subdivision or part of this\nsection or the application thereof to any person, firm, or corporation,\nor circumstance shall be adjudged by any court of competent jurisdiction\nto be invalid or unconstitutional, such judgment shall not affect,\nimpair or invalidate the remainder thereof, but shall be confined (i) in\nits operation to the clause, sentence, paragraph, subdivision, or part\nof this section or (ii) in its application to the person, firm or\ncorporation, or circumstance, directly involved in the controversy in\nwhich such judgment shall have been rendered.\n