NY Banking L § 12-A (2021)
2021 New York Laws BNK - Banking Article 2 - Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers 12-A - Power of State Chartered Banking Institutions to Exercise the Rights of Counterpart Federally Chartered Banking Institutions.

* §  12-a.  Power  of state chartered banking institutions to exercise the rights of counterpart federally chartered banking  institutions.  1. Definitions.  (a)  As  used  in  this  section, "state chartered banking institution" shall mean any bank, trust company, private banker, savings bank, savings and loan  association,  foreign  banking  corporation,  or credit union.  (b) As used in this section and as is applicable, "federally chartered banking  institution"  shall  mean  (i) any national banking association organized pursuant to the National Bank Act of 1864, as amended, (12 USC 21 et seq.); (ii) any  federal  savings  association  as  such  term  is defined  by  the  Federal  Deposit  Insurance  Act,  as amended, (12 USC 1813(b)(2)); (iii) a federal branch and agency of  a  foreign  bank,  as such  terms  are  defined  by  the International Banking Act of 1978, as amended, (122 USC 3101); or (iv) a federal credit union, as such term is defined by the Federal Credit Union Act, as amended, (12 USC 1752(1)).  (c) As used in this section, "charter"  shall  mean  the  organization certificate  or  comparable  document of a state banking institution, or the  license  for  a  state  branch  or  agency  of  a  foreign  banking corporation,  or a similar organizational document for a federal banking institution or a federal branch or agency, and  "chartered"  shall  mean the  formal act of the state or appropriate federal regulatory agency in approving and conveying such charter of a banking institution.  (d) As used in this section, "federally permitted  power"  shall  mean any  right,  power,  privilege  or  benefit,  any activity, or any loan, investment  or  transaction  which   a   federally   chartered   banking institution  directly  or  through  a  subsidiary  or  subsidiaries, may lawfully exercise or into which it may lawfully engage or enter.  (e) As used in this section "foreign banking corporation" shall mean a banking corporation organized under the laws of a  foreign  country  and acting   through  a  branch  or  agency  licensed  pursuant  to  section twenty-six of this article.  (f) As used in this section, unless the  context  requires  otherwise, the  term  "subsidiary"  shall  have  the  same  meaning as set forth in subdivision five of section  one  hundred  forty-one  of  this  chapter, except that (i) any reference therein to "bank holding company" shall be deemed to refer to a "state chartered banking institution" as defined in this  section,  and  (ii)  with  respect  to  a  credit  union, the term "subsidiary" as  used  in  this  section  shall  mean  a  "credit  union organization".   2. Pursuant to this section and notwithstanding any other provision of law,  except  as  otherwise  provided  in its charter, a state-chartered banking institution may exercise any federally permitted  power  of  its counterpart federally chartered banking institution as herein set forth:  (a)  a  bank,  private  banker,  or  trust  company  may  exercise any federally permitted power of a national banking association;  (b) a savings bank or savings and loan association  may  exercise  any federally permitted power of a federal savings association;  (c) a foreign banking corporation acting through a branch may exercise any federally permitted power of a foreign bank acting through a federal branch;  (d)  a  foreign  banking  corporation  acting  through  an  agency may exercise any federally permitted power of a foreign bank acting  through a federal agency;  (e)  a  credit  union  may exercise any federally permitted power of a federal credit union.   Nothing contained in this section shall be deemed to  permit  a  state chartered  banking institution to exercise any federally permitted power except in a manner consistent with the following provisions of  law,  in  each case, as the terms contained in such provisions may be amended from time to time:  (i) chapter one of the laws of nineteen hundred ninety-four;  (ii) chapter nine of the laws of nineteen hundred ninety-six; and  (iii)  sections fourteen-c, twenty-eight-b, thirty-nine and forty-four of this article, and sections  six  hundred  five  through  six  hundred thirty-four  of  this  chapter,  and  with  respect to savings banks and savings and loan associations, respectively, section two  hundred  forty and section three hundred ninety-six of this chapter.   3.  Except  with  respect  to  a  federally  permitted  power approved pursuant to subdivision  four  of  this  section,  prior  to  any  state chartered   banking   institution  initially  exercising  any  federally permitted power pursuant to this section, such banking institution shall make an application individually or with one  or  more  state  chartered banking   institutions   to  the  superintendent  indicating  that  such institution or institutions intend to exercise such federally  permitted power  and  the  basis on which such institution or institutions believe such power is a federally permitted power. The superintendent shall have one hundred twenty days from receipt of  the  application  to  determine whether  it  meets  the requirements of this section, provided that such period may be extended for an additional period of time with the written consent of the applicant or applicants. If such  application  meets  the requirements  of  this  section,  the  superintendent  shall  post  such application upon the  bulletin  board  of  the  department  pursuant  to section forty-two of this article. If such application does not meet the requirements  of this section, the superintendent shall, within ten days of such determination, notify the applicant or applicants of the reasons why the application fails to meet the requirements.  The  superintendent shall  determine, consistent with the standards set forth in subdivision five of this section, whether to approve  such  application  subject  to such terms and conditions as the superintendent may deem appropriate, in the  superintendent's sole discretion. Such determination, shall be made by the superintendent within forty-five days after the posting  of  such application,  provided  however  that  the superintendent may notify the applicant or applicants that the review  of  the  application  shall  be extended for an additional period of time not exceeding sixty days after the  posting  of such application, and provided further that such period of time may be extended for  an  additional  period  of  time  with  the written consent of the applicant or applicants. The superintendent shall not act upon the application prior to thirty days after such application has  been  posted.  If the superintendent approves such application, the superintendent shall, within ten  days  of  approving  the  application, notify the applicant or applicants in writing thereof, and the applicant or  applicants  may  exercise  such federally permitted power subject to such terms and conditions as the superintendent may  have  approved.  If the  superintendent declines such application, the superintendent shall, within ten days of making such determination, notify  the  applicant  or applicants  in writing thereof. An applicant or applicants may, upon the superintendent's failure to  comply  with  this  section,  petition  the superintendent   to  act  upon  the  application.  The  failure  of  the superintendent to act upon the application or notify  the  applicant  or applicants,  in  writing,  as  to the reasons why action cannot be taken within thirty days of receipt of such petition shall be deemed a  denial of   the  application,  which  shall  be  subject  to  judicial  review. Notwithstanding any other law, the superintendent may make the  approval of  an  application  under  this  section  applicable  to  one  or  more additional state chartered banking institutions that  are  qualified  to exercise  the  same  federally  permitted  powers  as  the  applicant or  applicants pursuant to subdivision two of this section, subject to  such terms  and  conditions  as  the  superintendent shall find necessary and appropriate.   4.   Notwithstanding   any  other  law,  the  superintendent,  in  the superintendent's discretion,  may,  when  the  superintendent  deems  it necessary  and  appropriate after considering the standards set forth in subdivision five of this section, by order, authorize one or more  state chartered  banking institutions to exercise a federally permitted power, subject to such terms and conditions as the  superintendent  shall  find necessary   and   appropriate.   Prior   to   issuing  such  order,  the superintendent shall post notice of the  superintendent's  intention  to issue  such  order upon the bulletin board of the department pursuant to section forty-two of this article, and shall not act upon such intention prior to thirty days after such notice has been posted.   5.  Prior  to  approving  any  application  or  proposal  pursuant  to subdivision three or four of this section, the superintendent shall make a finding that the approval of such application or proposal is:  (i) consistent with the policy of the state of New York as declared in section  ten  of  this article and thereby protects the public interest, including  the  interests  of   depositors,   creditors,   shareholders, stockholders and consumers; and  (ii)  necessary  to achieve or maintain parity between state chartered banking institutions and their counterpart federally  chartered  banking institutions  with  respect  to  rights,  powers,  privileges, benefits, activities, loans, investments or transactions.   6. A federally permitted power authorized  pursuant  to  this  section shall  not exceed and shall be limited by any conditions, qualifications or restrictions on the same when exercised by  a  counterpart  federally chartered  banking  institution of a state chartered banking institution unless the state chartered banking institution is so authorized by other New York state law, or a rule, regulation or policy adopted pursuant  to such   other   New   York   state   law,  or  by  a  judicial  decision. Notwithstanding any other law, the  superintendent  may,  at  any  time, impose  by  order  any  other  terms  and  conditions as he or she finds necessary and proper including, but not limited to, a  requirement  that any  federally  permitted power authorized by this section be exercised, conducted  or  held  in  a  subsidiary  of  a  state  chartered  banking institution.  In the event that federally chartered banking institutions located in the state of New  York  lose  the  authority  to  exercise  a federally  permitted  power,  based  upon which comparable authority was granted to the counterpart state chartered banking institutions pursuant to this section, then unless such authority is authorized by  other  New York state law, or a rule, regulation or policy adopted pursuant to such other  New  York state law, or by a judicial decision, the authorization for such state chartered banking institutions pursuant to  this  section shall  be  deemed  revoked,  provided, however, that any such revocation shall be subject to such terms and conditions as may be imposed upon the counterpart  federally  chartered  banking  institutions   or   by   the superintendent.   7.  (a)  In those instances where state chartered banking institutions are permitted to engage in the business of insurance  pursuant  to  this section,  they  shall  do  so  subject to all insurance laws, rules, and regulations; provided, however, that the superintendent may exempt state chartered  banking  institutions  from  any  insurance  law,   rule   or regulation   which  has  been  preempted  under  federal  law,  rule  or regulation for federally chartered banking  institutions  if  such  law, rule  or  regulation  has been preempted because it applies to insurance  activities of federally chartered banking institutions and not to  those of other entities.  (b)  In  those  instances where a federally permitted power authorized pursuant to this section is subject  to  regulation  by  an  agency,  as defined  in  subdivision  one  of  section  one hundred two of the state administrative procedure act, other than the superintendent, then when a state chartered banking institution exercises such  federally  permitted power,  unless  it  is  so  authorized by other New York state law, or a rule, regulation or policy adopted pursuant to such other New York state law, or by  a  judicial  decision,  it  shall  do  so  subject  to  such regulation  to  the  same  extent  and in the same manner as such agency regulates entities other  than  state  chartered  banking  institutions, except  to  the extent that federally chartered banking institutions are not subject to such regulation.  (c) Any state chartered banking  institution  or  federally  chartered banking  institution  and  any  subsidiary or affiliate thereof which is licensed to sell insurance in this state  shall  maintain  separate  and distinct  books  and  records  relating  to  its insurance transactions, including all files relating to and reflecting consumer complaints,  and such  insurance  books  and  records  shall  be  made  available  to the superintendent for inspection upon reasonable notice.   8. On or before June first of  each  year,  the  superintendent  shall submit  a  report  to  the  governor,  the  speaker of the assembly, the temporary president of the senate, the minority leaders  of  the  senate and  assembly, and the chairs and ranking minority members of the senate and assembly banks committees, which shall include, with respect to  the authority  provided  for  in this section, with respect to the preceding calendar year, (1) a listing of  state  chartered  banking  institutions that were established, (2) a listing of institutions that have converted to  a  federal charter or have been acquired by, or merged with, another banking institution, (3) the number of  New  York  banking  institutions exercising  the insurance activities authorized by this section, (4) the total number of New York chartered banking institutions located in  this state,  and  (5)  the  total  amount of assets of such chartered banking institutions by type.   9. Any rules or regulations promulgated by the banking board  pursuant to  former  sections  fourteen-g and fourteen-h of this chapter prior to September first, two thousand seven, and any resolutions adopted by  the banking  board  pursuant  to  this  section  after  September first, two thousand seven and before the effective date of the chapter of the  laws of  two  thousand  eleven  which amended this subdivision, including any such rules, regulations and resolutions which in whole or in part impose conditions, qualifications or restrictions on  any  federally  permitted powers authorized thereby which exceed the conditions, qualifications or restrictions imposed on the same when exercised by a federally chartered banking  institution,  shall remain in full force and effect on or after such date, unless any such rule, regulation or resolution is  thereafter superseded,  modified,  or revoked by the superintendent pursuant to the provisions of subdivisions three and four of this section.   * NB Repealed September 10, 2024