NY Banking L § 96-D (2021)
2021 New York Laws BNK - Banking Article 3 - Banks and Trust Companies 96-D - Banking Development Districts.

§  96-d.  Banking  development districts. 1. There is hereby created a banking development  district  program,  the  purpose  of  which  is  to encourage  the  establishment  of  bank branches in geographic locations where  there  is  a  demonstrated  need  for   banking   services.   The superintendent  of  financial  services  shall, in consultation with the department of economic development, promulgate  rules  and  regulations, after  public  hearing and comment, which set forth the criteria for the establishment of banking  development  districts.  Such  criteria  shall include, but not be limited to, the following:  (a)  the  location,  number,  and  proximity  of  sites  where banking services are available within the district;  (b) the identification of consumer needs for banking  services  within the district;  (c)  the  economic  viability  and local credit needs of the community within the district;  (d) the existing commercial development within the district;  (e) the impact additional banking services  would  have  on  potential economic development in the district; and  (f)  such  other  criteria  which  the  superintendent  in  his or her discretion shall identify as appropriate.   2. A local government, in conjunction with a bank,  trust  company  or national  bank,  may submit an application to the superintendent for the designation of a banking development district. The superintendent  shall issue  a  determination  on  such  an  application  within sixty days of receiving  such  application.  If  an  application  is   approved,   the superintendent  shall  transmit  notification  of  the  designation of a banking development district to the local government,  the  bank,  trust company  or  national  bank,  the state comptroller, the commissioner of taxation and finance, the commissioner of  the  department  of  economic development,  the  temporary  president of the senate and the speaker of the assembly. The designation of a banking development district shall be valid  for  fourteen  years.  Prior  to  the  expiration  of  a  banking development  district  designation,  the  superintendent  may extend the designation for one or more additional five or ten year periods.   2-a. Notwithstanding any other provision of law, an application may be submitted by a local  government  in  conjunction  with  a  bank,  trust company  or  national bank which has already opened a bank branch within such area, provided such branch was opened after December  thirty-first, nineteen  hundred  ninety-six.  In  considering  the criteria authorized pursuant to subdivision one of this section,  the  superintendent  shall also  take  into  account  the importance and benefits of preserving the banking services offered by the existing branch.   3. The establishment of a branch in a banking development district  by a  bank,  trust  company  or  national  bank  shall  be  subject  to all applicable state and federal laws regarding the establishment of  branch offices,  including  the  provisions of section one hundred five of this article, provided however  that  the  branch  application  fee  required pursuant  to section twenty-nine of this chapter shall be waived for any such branch. A bank or trust company may submit an application to open a branch office simultaneously with the submission of the application  for the designation of a banking development district.   4. For the purposes of this section, the term "local government" shall mean a county, town, city or village.   * 5.  (a) Notwithstanding the provisions of subdivision two of section two hundred thirty-seven of this  chapter;  for  the  purposes  of  this section,  paragraph  c  of subdivision two of section ten of the general municipal law, subdivision six of section one hundred five of the  state finance  law and section four hundred eighty-five-f of the real property  tax law, any reference to a bank, trust company or national  bank  shall be  deemed  to  include  a  savings  bank, savings and loan association, federal savings and  loan  association,  federal  savings  bank,  credit union,  or federal credit union; provided, however, that such provisions of law do not grant  a  savings  bank,  savings  and  loan  association, federal  savings  and  loan  association,  federal  savings bank, credit union, or federal credit union eligibility to accept municipal or public funds or municipal or public moneys other than for the limited  purposes of  the  establishment  of  a  branch  in a banking development district pursuant to this section. Any such municipal or public funds  or  moneys shall  be  deposited  only  at  the  branch established pursuant to this section, and any municipal funds or moneys may be deposited only by  the sponsoring  municipality  in  which  the  branch and banking development district are located; provided further that any such municipal or public funds or moneys shall be subject to the same requirements which apply to municipal or public funds or moneys deposited in a bank,  trust  company or  national bank and shall also be subject to the provisions of section one hundred five of the state finance law or section ten of the  general municipal law relating to such deposits.  (b)  Notwithstanding any other provision of law, the superintendent of financial services shall promulgate rules and regulations  to  authorize the  participation  of  savings  banks,  savings  and loan associations, federal savings banks, federal savings  and  loan  associations,  credit unions, and federal credit unions in the program established pursuant to this section.   * NB Repealed January 1, 2023   6.  For  the  purposes of this section, nothing shall preclude a bank, trust company or national bank from seeking approval to establish one or more branches in an existing banking development district  where  it  or another bank has or is authorized to have a branch. The department shall have  the  authority to approve any bank, trust company or national bank for participation in the banking development district program,  and  any branch  approved  pursuant  to  this section shall operate in accordance with this section and is eligible for  all  the  rights  and  privileges authorized by this section.