NY Banking L § 28-B (2021)
2021 New York Laws BNK - Banking Article 2 - Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers 28-B - Credit Needs of Local Communities.

§ 28-b. Credit needs of local communities. 1. Each banking institution as  defined  in  subdivision four of this section to which the Community Reinvestment Act of 1977, United States P.L. 95-128, applies shall  file with  the  superintendent a copy of each report and document which it is required to prepare for or  file  with  one  or  more  federal  agencies pursuant  to  the  provisions  of that law and the rules and regulations promulgated thereunder. Where  a  banking  institution  has  filed  such reports  or  documents with the superintendent, an update of the reports or documents shall be required at such time as the  banking  institution requests  the  superintendent  to  take any action on any application to which the provisions of subdivision three of this section apply.   3. (a) When taking any action on an application or notice  made  by  a banking  institution  under  (i)  section  one hundred five, two hundred twenty-four, two hundred forty, or  three  hundred  ninety-six  of  this chapter for a branch office, (ii) section one hundred ninety-one of this chapter  for  a  public  accommodation office, (iii) section six hundred one-b of this chapter for approval of a merger or purchase of assets, or (iv) under section one hundred five-a,  two  hundred  forty-a  or  three hundred  ninety-six-a  of this chapter for the use or installation of an automated teller machine, point-of-sale terminal or  similar  electronic facility   or   on   any  other  application  or  notice  to  which  the superintendent of financial services shall by rule  or  regulation  make applicable the provisions of this section, the superintendent shall take into  account,  among  other  factors, an assessment, in writing, of the record of performance of the banking institution in helping to meet  the credit  needs of its entire community, including low and moderate-income neighborhoods and minority- and women-owned businesses, consistent  with safe and sound operation of the banking institution. Such assessment and any  written communications from the department of financial services to a  banking  institution  relating  to  such  assessment  shall  be  made available to the public upon request, provided that nothing contained in this  subdivision  shall  be  deemed  to  alter,  amend  or  affect  the provisions of subdivision ten of section thirty-six of this chapter.  In making  such  assessment the superintendent shall review all reports and documents filed with him or her pursuant  to  subdivision  one  of  this section  and any signed, written comments received by the superintendent which specifically relate to the banking  institution's  performance  in helping  to  meet  the  credit  needs of its community. In addition, the superintendent shall consider  the  following  factors  in  assessing  a banking  institution's record of performance, and include in its written assessment required by this section the record of  performance  of  such banking institution as to each of the following factors:  (1)  Activities  conducted  by  the  banking  institution to ascertain credit needs of its community,  including  the  extent  of  the  banking institution's  efforts  to  communicate  with  members  of its community regarding the credit services being provided by the banking institution;  (2) The extent of the  banking  institution's  marketing  and  special credit-related  programs  to  make members of the community aware of the credit services offered by the banking institution;  (3) The extent of participation by the banking institution's board  of directors  or board of trustees in formulating the banking institution's policies and reviewing its performance with respect to the  purposes  of the Community Reinvestment Act of 1977;  (4)  Any  practices  intended  to  discourage application for types of credit set forth in the banking institution's Community Reinvestment Act Statement(s);  (5) The geographic distribution of the  banking  institution's  credit extensions, credit applications and credit denials;  (6)  Evidence  of  prohibited  discriminatory  or other illegal credit practices;  (7)  The  banking  institution's record of opening and closing offices and providing services at offices;  (8) The banking institution's participation, including investments, in local community development and redevelopment projects or  programs  and in  technical assistance programs for small businesses and minority- and women-owned businesses;  (9) The banking  institution's  origination  of  residential  mortgage loans,  housing  rehabilitation  loans, home improvement loans and small business or small farm  or  minority-  and  women-owned  business  loans within  its  community  or  the purchase of such loans originated in its community;  (10)     The     banking      institution's      participation      in governmentally-insured,  guaranteed  or  subsidized  loan  programs  for housing, small businesses or small farms;  (11) The banking  institution's  ability  to  meet  various  community credit  needs based on its financial condition, size, legal impediments, local economic condition and other factors;  (11-a) The geographic distribution, availability and use of  automated teller  machines,  point-of-sale  terminals,  personal computer banking, debit cards or  similar  electronic  facilities  or  services;  and  any training  of  customers  thereon  among  every  branch  of  the  banking institution, if the institution offers  such  services  to  any  of  its customers; and  (12)  Other  factors  that,  in  the  judgment  of the superintendent, reasonably bear upon the  extent  to  which  a  banking  institution  is helping  to  meet  the  credit needs of its entire community, including, without limitation, the banking institution's  participation  in  credit counseling services.  (b)  In  assessing  the record of performance of a banking institution pursuant to the provisions of paragraph (a)  of  this  subdivision,  the superintendent  may,  where  he or she deems it appropriate, provide for public  hearings  when  an  objection  to  the   banking   institution's application or notification has been submitted.  (c)  An  assessment  of  a banking institution's record of performance under paragraph (a) of this subdivision may be the basis for denying  an application or notice under the provisions of this section.  (d)  When  taking  any  action  pursuant  to  paragraph  (a)  of  this subdivision, the superintendent shall  request  from  the  applicant  or notificant  banking  institution  and  from the appropriate federal bank regulatory authorities any documents, other than those  required  to  be filed  with  the  superintendent  by this section or by other applicable statutes or regulations, which are  (1)  filed  with  the  federal  bank regulatory  authorities  in connection with the application or notice or (2) produced by the  applicant  or  notificant  banking  institution  or others in connection with the application or notice.   4. Notwithstanding any other provision of this chapter or other law to the  contrary,  the  term  banking institution when used in this section shall mean and  include  all  banks,  trust  companies,  savings  banks, savings  and  loan  associations,  credit  unions  and  foreign  banking corporations incorporated, chartered, organized or  licensed  under  the laws  of  this  state.  In  the  case  of  a foreign banking corporation licensed pursuant to this article  and  maintaining  a  branch  in  this state,  the  management of the branch shall establish a committee of not fewer than three officers  to  function  in  the  role  of  a  board  of directors for purposes of this section.    5. The superintendent is hereby authorized and empowered to promulgate rules  and  regulations  effectuating  the  provisions  of this section, including any rules and regulations providing  that  the  assessment  of banking  institutions  referred  to in subdivision three of this section shall be made on a graduated numerical basis.   6.  If  any  clause,  sentence, paragraph, subdivision or part of this section or the application thereof to any person, firm, or  corporation, or circumstance shall be adjudged by any court of competent jurisdiction to  be  invalid  or  unconstitutional,  such  judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined (i) in its operation to the clause, sentence, paragraph, subdivision,  or  part of  this  section  or  (ii)  in  its  application to the person, firm or corporation, or circumstance, directly involved in  the  controversy  in which such judgment shall have been rendered.