2023 New York Laws › BNK - Banking › Article 2 - Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers › 28-C - Branch Office Closings; Report to and Action by the Superintendent.

§ 28-c.   Branch   office  closings;  report  to  and  action  by  the
superintendent.  1.  This   section   is   intended   to   provide   the
superintendent  with detailed information concerning the planned closing
of  branch  offices  by  state-chartered  banking   organizations,   the
availability  of  alternative financial services within the general area
served by such  branch  and  the  economic  impact  upon  the  community
resulting  from  such  closing,  and  to provide the superintendent with
authority to conduct meetings with banking organizations  and  community
groups  in  areas where a branch closing is planned. The requirements of
this section shall not apply to the following:
(a) branch offices located outside the state of New York;
(b) a sale or other transfer of a branch office which does not  result
in  any  material  reduction  in  the financial services offered at such
location;
(c) the closing of a branch office acquired from a failing  or  failed
institution, provided that such closing occurs within one hundred eighty
days from the date of the acquisition; or
(d)  the closing of a branch office when unexpected circumstances make
strict compliance impossible, provided that such determination shall  be
solely  within the discretion of the superintendent and provided further
that the superintendent may require the banking organization  to  comply
with the requirements of this section to the extent possible.
2.  Every  banking  organization  shall submit to the superintendent a
report of its planned or intended closing of a branch office, and  shall
give  written  notice  to  any  person  who  maintains a banking account
relationship with such branch  office  which  is  the  subject  of  such
planned  or intended closing, no less than ninety days nor more than one
hundred eighty days prior to the date of  actual  closing.  The  banking
organization shall post and keep posted in a conspicuous place notice of
such  planned  closing at such branch office, commencing on the date the
banking organization  submits  its  report  pursuant  to  the  foregoing
provision and until the proposed closing is effected or withdrawn.
3.  Such  report  shall be in writing and shall contain a statement of
the reasons leading  to  the  decision  to  close  the  branch  and  any
statistical  or  other information in support thereof. Such report shall
be and remain at all times subject to the provisions of subdivision  ten
of  section  thirty-six  of this chapter. Such report shall also contain
the following information, provided that the superintendent may waive or
modify these requirements for good cause:
(a) a past (at least three years),  present  and  projected  financial
analysis  of  deposits  at  such  branch  (giving number of accounts and
dollar amount, profits and losses);
(b) a past (at least three years),  present  and  projected  financial
analysis  of  profits  and  losses relating to the loan activity at such
branch;
(c) a detailed map of the general area served by such  branch  showing
the distance and direction of all remaining state or federally chartered
institutions  within  such area and any licensee of the department which
provides financial services of any kind; and
(d) a description of any  planned  limited  or  full  service  banking
facility  to  be opened within such area by either the reporting banking
organization or, if known, to the reporting banking organization, by any
other banking institution.
4. The superintendent shall make a finding as to whether  or  not  the
proposed  branch  closing  will  result  in  a  significant reduction of
financial services in the community to be affected. Such  finding  shall
be  made  public.  If  the superintendent finds that the availability of
financial services in a particular geographic area or community will  be

significantly  reduced  by the closing of a particular branch office, he
or she shall  conduct  such  meetings  with  banking  organizations  and
community  leaders  as are necessary, in his or her judgment, to explore
the  feasibility  of  replacing  such branch with other adequate banking
facilities.
5. In this section:
(a) "banking organization" includes each bank, trust company,  savings
bank,  and  savings  and  loan association as those terms are defined in
section two of this chapter and each out-of-state state bank  authorized
to  operate  and  maintain  a  branch pursuant to article five-C of this
chapter;
(b)  "branch  office",  "branch",  or  "office"  shall   not   include
electronic   facilities   as   defined  by  general  regulation  of  the
superintendent  of  financial  services,  but  shall  include  a  public
accommodation office;
(c)  "financial  services"  includes demand and time deposit accounts,
check cashing services, deposit and  withdrawal  transactions,  sale  of
bank   or   travellers   checks   and   money  orders,  processing  loan
applications, acceptance of loan repayments, and any  related  services;
and
(d)  "facility"  and  "facilities"  includes  any building, structure,
vehicle, unit, machine, or device, permanent  or  temporary,  mobile  or
stationary,  which  provides or dispenses financial services of any kind
or description.
6. No provision of this section or  any  rule  or  regulation  adopted
pursuant  thereto  shall be deemed or construed as impairing the ability
of any banking organization to close any branch office  after  complying
with the provisions of subdivision two of this section.