2023 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
  services
2. 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.