NY Banking L § 202-B (2021)
2021 New York Laws BNK - Banking Article 5 - Foreign Banking Corporations and National Banks 202-B - Maintenance of Assets in This State.

§  202-b.  Maintenance  of  assets  in this state. * 1. Upon opening a   branch or agency and thereafter, a foreign banking corporation  licensed   pursuant  to  article  two  of  this  chapter  shall keep on deposit, in   accordance with such rules and regulations as the  superintendent  shall   adopt  shall  from  time  to time, with such banks or trust companies or   private bankers or national banks in the  state  of  New  York  as  such   foreign  banking  corporation  may  designate and the superintendent may   approve, interest-bearing stocks and bonds, notes, debentures, or  other   obligations  of  the  United  States  or  any  agency or instrumentality   thereof, or guaranteed by the United States, or of this state, or  of  a   city, county, town, village, school district, or instrumentality of this   state or guaranteed by this state, or dollar deposits, or obligations of   the   International   Bank   for   Reconstruction  and  Development,  or   obligations  issued  by  the   Inter-American   Development   Bank,   or   obligations  of the Asian Development Bank, or obligations issued by the   African Development Bank, or obligations  issued  by  the  International   Finance  Corporation,  or bonds, notes, debentures, or other obligations   issued by or guaranteed by the Federal Home  Loan  Mortgage  Corporation   (Freddie  Mac)  or  by the Federal National Mortgage Corporation (Fannie   Mae), or bonds, notes, debentures, or other  obligations  issued  by  or   guaranteed by the Student Loan Marketing Association (SALLIE MAE) or all   bonds,  notes,  debentures, or other obligations issued by or guaranteed   by a federal home loan  bank,  or  bonds,  notes,  debentures  or  other   obligations  of  any  unaffiliated  issuer provided that, at the time of   such investment, the obligation has received the highest  rating  of  an   independent  rating  service designated by the superintendent or, if the   obligation is rated by more than one such service, the highest rating of   at least two such services, or such other assets as  the  superintendent   shall  by  rule  or  regulation  permit,  to  an  aggregate amount to be   determined by the superintendent, based upon principal amount or  market   value,   whichever   is  lower,  in  the  case  of  the  above-described   securities, and subject to such limitations as the superintendent  shall   prescribe;  provided, however, that the superintendent may determine, in   the superintendent's discretion, that any such bonds, notes,  debentures   or  other  obligations  of  a  particular  issuer are not acceptable for   purposes  of  meeting  the  requirements  of   this   subdivision.   The   superintendent  may  from time to time require that the assets deposited   pursuant to this subdivision may be maintained by  the  foreign  banking   corporation  at such amount, in such form and subject to such conditions   as he or she shall deem necessary or desirable for the maintenance of  a   sound  financial  condition, the protection of depositors and the public   interest, and to maintain public confidence  in  the  business  of  such   branch  or  branches  or such agency or agencies. The superintendent may   give credit to reserves required to be maintained with a federal reserve   bank in or outside the state  of  New  York  pursuant  to  federal  law,   subject  to  such  rules  and regulations as the superintendent may from   time to time promulgate. So long as it shall continue  business  in  the   ordinary  course, such foreign banking corporation shall be permitted to   collect interest on the securities so deposited and from  time  to  time   exchange, examine and compare such securities.* NB  Effective  until notification of the superintendent of financial   services* 1. Upon opening a branch or agency and thereafter, a foreign banking   corporation licensed pursuant to article two of this chapter shall  keep   on  deposit,  in  accordance  with  such  rules  and  regulations as the   superintendent shall from time to time promulgate, with  such  banks  or   trust companies or private bankers or national banks in the state of New   York   as  such  foreign  banking  corporation  may  designate  and  the    superintendent may approve, interest-bearing stocks  and  bonds,  notes,   debentures,  or  other obligations of the United States or any agency or   instrumentality thereof, or guaranteed by the United States, or of  this   state,  or  of  a  city,  county,  town,  village,  school  district, or   instrumentality of this state or guaranteed by  this  state,  or  dollar   deposits,  or  obligations  of the International Bank for Reconstruction   and Development, or obligations issued by the Inter-American Development   Bank, or obligations of  the  Asian  Development  Bank,  or  obligations   issued  by  the  African  Development Bank, or obligations issued by the   International Finance Corporation, or bonds, notes, debentures, or other   obligations issued by or guaranteed by the Federal  Home  Loan  Mortgage   Corporation   (Freddie   Mac)   or  by  the  Federal  National  Mortgage   Corporation  (Fannie  Mae),  or  bonds,  notes,  debentures,  or   other   obligations  issued  by  or  guaranteed  by  the  Student Loan Marketing   Association (SALLIE MAE) or  all  bonds,  notes,  debentures,  or  other   obligations  issued  by  or  guaranteed  by a federal home loan bank, or   bonds, notes, debentures or other obligations of any unaffiliated issuer   that meet the standards of creditworthiness established by regulation by   the superintendent, or such other assets as the superintendent shall  by   rule  or  regulation  permit, to an aggregate amount to be determined by   the  superintendent,  based  upon  principal  amount  or  market  value,   whichever  is  lower, in the case of the above-described securities, and   subject to such limitations as he  or  she  shall  prescribe;  provided,   however,   that   the  superintendent  may  determine,  in  his  or  her   discretion, that any such bonds, notes, debentures or other  obligations   of  a  particular  issuer are not acceptable for purposes of meeting the   requirements of this subdivision. The superintendent may  from  time  to   time  require that the assets deposited pursuant to this subdivision may   be maintained by the foreign banking corporation at such amount, in such   form and subject to such conditions as he or she shall deem necessary or   desirable for the  maintenance  of  a  sound  financial  condition,  the   protection of depositors and the public interest, and to maintain public   confidence  in the business of such branch or branches or such agency or   agencies. The superintendent may give credit to reserves required to  be   maintained  with  a  federal reserve bank in or outside the state of New   York pursuant to federal law, subject to such rules and  regulations  as   the superintendent may from time to time promulgate. So long as it shall   continue   business   in  the  ordinary  course,  such  foreign  banking   corporation shall be permitted to collect interest on the securities  so   deposited  and  from  time  to  time  exchange, examine and compare such   securities.* NB Effective upon notification of the  superintendent  of  financial   services2. Each foreign banking corporation shall hold in this state currency,   bonds,  notes,  debentures, drafts, bills of exchange or other evidences   of   indebtedness,   including   loan   participation   agreements    or   certificates,  or  other  obligations payable in the United States or in   United States funds or, with the prior approval of  the  superintendent,   in  funds  freely  convertible  into  United States funds, or such other   assets as the superintendent shall by rule or regulation permit,  in  an   amount which shall bear such relationship as the superintendent shall by   regulation  prescribe to liabilities of such foreign banking corporation   appearing in the books, accounts or records  of  its  agency,  agencies,   branch  or  branches  in  this  state  as  liabilities  of  such agency,   agencies, branch or  branches,  including  acceptances  and  such  other   liabilities  (including  contingent  liabilities)  as the superintendent   shall determine, but excluding amounts  due  and  other  liabilities  to   other  offices, agencies or branches of, and affiliates of, such foreign    banking corporation. As used in this subdivision, (i) "affiliate"  shall   mean  any  person  or  entity, or group of persons or entities acting in   concert, that controls, is controlled by or is under common control with   such foreign banking corporation and (ii) "control" means any person, or   group  of  persons  acting  in  concert, directly or indirectly, owning,   controlling or holding with power to vote, more than  fifty  percent  of   the  voting  stock  of a company, or having the ability in any manner to   elect a majority of the directors of a company, or otherwise  exercising   a controlling influence over the management and policies of a company as   defined  by  the  superintendent  by  regulation.  For  purposes of this   subdivision, the term "person" shall mean a corporation,  unincorporated   association,  partnership,  or  any  other entity or individual. For the   purposes of this subdivision, the superintendent shall value  marketable   securities  at  principal  amount  or  market value, whichever is lower,   shall have the right to determine the value of any non-marketable  bond,   note,   debenture,   draft,   bill   of   exchange,  other  evidence  of   indebtedness, including loan participation agreements  or  certificates,   or  of  any  other  asset  or  obligation held by or owed to the foreign   banking corporation or its agency, agencies, branch or  branches  within   the  state,  and  in determining the amount of assets for the purpose of   computing the above ratio of assets to liabilities, shall have the power   to exclude in whole or in part any particular asset. If,  by  reason  of   the  existence  or the potential occurrence of unusual and extraordinary   circumstances, the superintendent deems it necessary  or  desirable  for   the  maintenance  of  a  sound  financial  condition,  the protection of   depositors, creditors and the public interest, and  to  maintain  public   confidence  in  the business of the agency, agencies, branch or branches   of a foreign banking corporation, the  superintendent  may,  subject  to   such  terms  and conditions as the superintendent may prescribe, require   such foreign banking corporation to deposit the assets  required  to  be   held  in  this state pursuant to this subdivision two with such banks or   trust companies or private bankers or national  banks  located  in  this   state, as the superintendent may designate.3.  In the event that any of the deposits received within the state by   a foreign  banking  corporation  are  insured  by  the  Federal  Deposit   Insurance  Corporation, the superintendent shall specify what reasonable   percentage of deposit liabilities may be  excluded  in  determining  the   aggregate  amount of liabilities of such foreign banking corporation for   deposits received within the state for purposes of  subdivision  two  of   this  section  by  reason of the fact that all or a part of such deposit   liabilities are insured by the Federal Deposit Insurance Corporation.