2023 New York Laws › BNK - Banking › Article 3 - Banks and Trust Companies › 96 - General Powers.

§ 96.  General  powers.  Every  bank  and  every  trust company shall,
subject to the restrictions and limitations contained in  this  chapter,
have the following powers:
1. To discount, purchase and negotiate promissory notes, drafts, bills
of  exchange, other evidences of debt, and obligations in writing to pay
in installments or otherwise all  or  part  of  the  price  of  personal
property  or  that  of  the  performance  of services; purchase accounts
receivable, whether or not they are obligations in writing;  lend  money
on real or personal security; borrow money and secure such borrowings by
pledging  assets;  buy  and sell exchange, coin and bullion; and receive
deposits of moneys, securities or  other  personal  property  upon  such
terms  as  the  bank  or trust company shall prescribe; and exercise all
such incidental powers as shall be necessary to carry on the business of
banking.  For  purposes  of  this  subdivision,   the   term   "accounts
receivable"  shall not include the right to receive payment for property
to be sold at a future date or services to be rendered at a future date.
2. To accept for payment at a future date, drafts drawn upon it by its
customers and to issue letters of credit authorizing the holders thereof
to draw upon it or its correspondents at sight or on time.
3. (a) To receive upon deposit for safe-keeping for  hire  upon  terms
and  conditions  to  be  prescribed by the bank or trust company, money,
securities, papers of any kind and any other personal property;
(b) To engage in the safe deposit business  by  renting  vaults,  safe
deposit  boxes  and other receptacles upon premises occupied by the bank
or trust company, upon such terms and conditions as may be prescribed by
the bank or trust company.
4. To issue by its board of directors  capital  notes  or  debentures,
when  so  specifically  authorized  by  the superintendent, and, when so
specifically authorized by the superintendent,  to  receive  in  payment
therefor,  in  whole  or  in part, mortgages, interests therein or other
property and to  retain,  unrecorded  or  unregistered,  assignments  or
conveyances  of  such  mortgages,  interests  therein or other property,
provided that the superintendent shall not approve the retention of  any
assignment  of  mortgage  or interest therein or any conveyance of other
property, which  may  be  recorded  or  registered,  without  record  or
registration  thereof,  except  where such mortgage, interest therein or
other property is assigned or conveyed by a corporation organized  under
the banking law or by a corporation wholly owned by not less than twenty
savings banks of this state.
5.  To  become  a  member  of  a federal reserve bank, and to have and
exercise all powers, not in conflict with the laws of this state,  which
are conferred upon any such member by the federal reserve act. Such bank
or  trust  company  and  its  directors, officers and stockholders shall
continue to be subject, however, to all liabilities and  duties  imposed
upon  them  by  any  law of this state and to all the provisions of this
chapter relating to banks and trust companies.
6. To  assume  and  discharge  such  obligations  to  Federal  Deposit
Insurance Corporation as may be necessary or required for the purpose of
maintaining deposit insurance in such corporation.
7.  (a)  To act as financial agent of the United States Government and
as depositary of public money of the United States  (including,  without
being limited to, revenues and funds of the United States, and any funds
the  deposit  of  which  is  subject to the control or regulation of the
United States or any of its officers, agents, or employees,  and  Postal
Savings  funds); and to perform all such reasonable duties as depositary
of such public money  and  as  financial  agent  of  the  United  States
Government  as  may  be  required of it; and to pledge assets or furnish
other security, satisfactory in form and amount to the Secretary of  the

Treasury of the United States, for the safekeeping and prompt payment of
such  public money deposited with it and for the faithful performance of
its duties as financial agent of the United States Government.
(b)  To  pledge assets or furnish other security, satisfactory in form
and amount to judges of courts  of  bankruptcy,  for  the  repayment  of
deposits of the money of estates under the national bankruptcy act.
(c)  To  pledge assets or furnish other security, satisfactory in form
and amount to the depositor, for the repayment of  moneys  held  in  the
name  of  any  state  (which  term  shall include every territory of the
United States, the District of Columbia, and the Commonwealth of  Puerto
Rico), or of any foreign nation, or of any Indian nation or tribe, or of
any  political  subdivision  or  instrumentality  or authority of any of
them, when required to be secured by applicable law, decree,  regulation
or  resolution,  and  to pledge assets or furnish other security for the
repayment of moneys held as fiduciary, or in the name of a fiduciary, of
any trust created by any such state, foreign nation,  Indian  nation  or
tribe,  political  subdivision, instrumentality or authority as required
by the terms of such trust; provided, however, that before any pledge or
security is made or furnished to any depositor other than this state  or
a political subdivision, instrumentality or authority of this state, the
bank  or trust company shall obtain a certified or official copy of such
law, decree, regulation, or resolution or trust requiring such pledge or
other security, and an opinion of counsel that such pledge  or  security
is  required  by  such  law, decree, regulation, or resolution or by the
terms of such trust.
9. To execute and deliver such guaranties  as  may  be  incidental  to
carrying on the business of a bank or trust company.
10.  To  exercise,  subject  to such regulations as may be issued from
time to time by the superintendent, through any  foreign  branch  office
(other  than  one  opened  or  occupied  in  another state of the United
States, the District of Columbia, any territory of  the  United  States,
Guam, American Samoa, the United States Virgin Islands, and the Northern
Mariana   Islands)   opened  and  occupied  with  the  approval  of  the
superintendent as provided in section one hundred five of this  article,
such  further  powers as may be usual in connection with the transaction
of the business of banking in the place where such foreign branch office
shall transact business, provided that no  such  foreign  branch  office
shall  engage in the general business of producing, distributing, buying
or selling goods, wares, or merchandise, nor,  except  with  respect  to
securities  issued  by  any foreign nation or any political subdivision,
agency or instrumentality thereof, engage or  participate,  directly  or
indirectly,  in  the  business  of underwriting, selling or distributing
securities.
11. To designate one or more agents (except its employees) to issue or
sell its travelers checks or money orders at locations  other  than  its
principal  office  or  branch offices authorized pursuant to section one
hundred five of this chapter, subject to such rules and  regulations  as
the superintendent may make from time to time.
12.  To  acquire  and  lease personal property, or to acquire personal
property subject  to  an  existing  lease  together  with  the  lessor's
interest  therein,  subject  to  such  limitations and conditions as the
superintendent of financial services may from time to time prescribe  by
general regulation.
13. To reserve or order transportation, travel accommodations or other
travel services.
14.  To  arrange, purchase or sell loans secured by liens on interests
in real estate, subject to such terms, conditions and limitations as may
be prescribed by the superintendent by regulation.
15. To engage in a "savings  promotion"  in  accordance  with  section
nine-v of this chapter and subject to any regulations promulgated by the
superintendent.  The  superintendent shall consult with the state gaming
commission before proposing  any  such  regulations  or  any  amendments
thereto. Such regulations shall ensure that:
a. no participant in a savings promotion is charged any fee that would
constitute,  directly  or indirectly, consideration for participation in
such savings promotion; and
b. no  participant  in  a  savings  promotion  foregoes,  directly  or
indirectly,   any  interest  that  would  constitute  consideration  for
participation in such savings promotion.
* 16. In addition  to  such  authority  as  is  contained  in  section
ninety-eight  of  this  chapter  and notwithstanding any limitations set
forth therein, to purchase, lease, exchange or  otherwise  acquire  real
property,  improved  or  unimproved,  or any interest therein, to erect,
construct,  rebuild,  enlarge,  alter,  improve,  maintain,  manage  and
operate  buildings  or other improvements of any description thereon, to
sell, lease, sublet, mortgage, exchange or otherwise dispose of same and
execute, perform and carry out contracts for  construction,  alteration,
improvement, maintenance, management or repair thereof, to make loans in
connection  therewith,  as owner, co-owner or otherwise, subject to such
specific or general approvals and limitations as shall  be  required  by
regulations  promulgated  from  time  to  time  by the superintendent of
financial services pursuant to this subdivision; provided, however, that
no activity  specified  herein  shall  be  undertaken  pursuant  to  the
authority  contained  in  this  subdivision  until the superintendent of
financial  services  shall  have  issued  regulations   specifying   the
limitations  and  requirements which shall be imposed in connection with
the investments and activities referred to  herein,  including,  without
limitation,  the consideration of such bank or trust company's record in
meeting the credit needs of local  communities  within  the  meaning  of
section twenty-eight-b of this chapter.
* NB Expired June 30, 1988