2023 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;
(f)  whether  a  community is identified as unbanked or underbanked by
the superintendent; and
(g) 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.   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, 2029
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.