2023 New York Laws › BNK - Banking › Article 6 - Savings Banks › 240 - Restrictions as to Place of Business; Branch Offices.

§ 240.  Restrictions  as  to  place  of business; branch offices. 1. A
savings bank shall not be located in the same room with  or  in  a  room
connecting with any bank, trust company or national bank, unless it be a
savings  bank  lawfully  so  located  when  this  act  takes effect. The
prohibitions of this subdivision shall not  apply  to  automated  teller
machines,  point-of-sale  terminals  and  similar facilities established
pursuant to section one hundred five-a, two  hundred  forty-a  or  three
hundred  ninety-six-a  of  this  chapter  or pursuant to any federal law
authorizing a national bank to operate a similar facility.
2. No savings bank, or trustee, officer, agent  or  employee  thereof,
shall  transact  any  part of its usual business of banking at any place
other than its principal office except as follows:
(a) A savings bank may open and occupy one or more branch  offices  at
any  location  in  the  state.  In addition, a savings bank may open and
occupy a branch office or branch offices in one or more  places  located
without the state of New York.
(b)  An  office  of  an  affiliated  bank  at which the customers of a
savings bank may make deposits, renew time deposits,  make  withdrawals,
close  loans,  service  loans,  and  receive payments on loans and other
obligations shall not be deemed a branch office of  such  savings  bank.
For  the  purposes of this section, the term "affiliated bank" means any
bank, as such term is defined in section 3(a)(1) of the Federal  Deposit
Insurance  Act  (12 U.S.C. 1813(a)(1)), that is a subsidiary of the same
bank holding company, as that term is defined in section 2 of  the  Bank
Holding Company Act (12 U.S.C. 1841).
(c)  Except  for  the city or village in which its principal office is
located, no branch  office  may  be  opened  and  occupied  pursuant  to
paragraph  (a)  of  this  subdivision  in  any  city  or  village with a
population of fifty thousand or less and in which is already located the
principal  office  of  a  bank,  trust  company  or   national   banking
association,  other  than  a  bank holding company, if such bank holding
company is a banking institution, or a  banking  subsidiary  of  a  bank
holding   company,  as  such  terms  "bank  holding  company",  "banking
institution" and "banking subsidiary" are defined in section one hundred
forty-one of this chapter except that the definition  of  "bank  holding
company"  is  modified  to  change  the  phrase  "a banking institution"
wherever it appears therein to "two or more  banking  institutions"  and
the  definition  of  "banking institution" is modified to add a national
banking association,  the  principal  office  of  which  institution  is
located in this state.
(d)  (1)  If  so  provided  in  the  merger  or asset acquisition plan
submitted to the superintendent pursuant to section six hundred  one  or
six  hundred  one-a  of  this  chapter,  and  if  such  merger  or asset
acquisition is permitted by law, a savings bank may, in addition to  the
authority  granted  under paragraph (a) of this subdivision, and without
limitation  by  any  of  the  provisions  of  paragraph  (c)   of   this
subdivision,  maintain  as a branch office, or branch offices, the place
or  places  of  business  of  any  savings  bank  or  savings  and  loan
association, federal savings bank, federal savings and loan association,
bank,  trust company, national bank, or out-of-state state bank (as such
term is defined in section two hundred twenty-two of this chapter) which
it has received into itself by merger or asset acquisition  pursuant  to
this  chapter  which  were  in existence at the time the merger or asset
acquisition becomes  effective,  including  any  branch  office  of  the
savings  bank,  savings  and  loan association, or bank or trust company
with which it has merged or from which it has acquired assets which  has
been approved pursuant to subdivision three of this section or paragraph
(c)   of  subdivision  two  of  section  three  hundred  ninety-six,  or

subdivision two of section one hundred five of this chapter even if such
branch office is not in operation at  the  time  said  merger  or  asset
acquisition  becomes effective and may maintain, as its principal office
rather than as a branch office, the principal office of such institution
with  which  it has merged or from which it has acquired assets (so long
as the principal office is located in this state), in  which  event  the
former  principal office of the receiving savings bank may be maintained
as a branch office.
(2) Notwithstanding anything to the contrary in  subparagraph  one  of
this  paragraph,  any  public  accommodation  office  of a savings bank,
savings and loan association, or bank or trust company  which  has  been
merged  or  had  assets  acquired  in  an asset acquisition transaction,
including any such office which has been approved  pursuant  to  section
one  hundred ninety-one of this chapter but which is not in operation at
the time said merger or asset  acquisition  becomes  effective,  may  be
maintained  by  the  receiving  savings  bank  as a public accommodation
office only.
(e) If so provided in an agreement  submitted  to  the  superintendent
pursuant  to  section  six hundred one-c of this chapter, a savings bank
may, in addition to the authority granted under paragraph  (a)  of  this
subdivision,  and  without  limitation  by  any  of  the  provisions  of
paragraph (a) or (c) of this subdivision, maintain as a branch office or
offices the place or places of business of any savings bank  or  savings
and loan association which it has acquired pursuant to such agreement as
authorized by section six hundred one-c of this chapter.
3.  Before  any branch office shall be opened and occupied pursuant to
paragraph (a) of subdivision two of  this  section,  the  superintendent
shall have given his written approval.
4.  The  term  "village"  as used in this section shall mean either an
incorporated or an unincorporated village.