reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 5 - Credit Unions › Section LI 5.2 - Manner of holder bearer securities

Current through Register Vol. 46, No. 28, July 10, 2024
A credit union inquired whether securities in which it could
				  legally invest but which were available only in bearer form could be held in an
				  account with a broker who in turn would place them in the broker's own name in
				  a custody account with a commercial bank in this State, but with a designation
				  that they were the property of the credit union. Subdivision 14 of section 453  of the Banking Law, pertaining to
				  securities in which a credit union may invest, provides with exceptions not
				  here relevant that such securities if non-registrable "shall be placed in the
				  custody of a bank or trust company or a national bank located in this State, in
				  the name of the credit union________"
The department replied that the arrangement described would
				  not be in compliance with law. As a technical matter the securities would be
				  held by the bank in the name of the broker, not of the credit union as required
				  by statute. As a matter of substance, the fact that there was some form of
				  designation regarding the credit union's ownership would not give the credit
				  union the same control over the securities as it would have if the account were
				  in its own name. In addition, the placement of a broker in the chain of
				  ownership, however nominal its interest may appear to be, adds a degree of risk
				  to the liquidity of, and clarity of ultimate title to the investment securities
				  concerned.
DATED: November 26, 1973
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 6 - Other Licensees › Section LI 6.1 - Insurance charges by licensed lenders

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				company licensed to make small loans under article 9 of the Banking Law
				inquired whether, in connection with a single loan having more than one
				obligor, the lender could require several obligors to be insured and bear the
				cost of such insurance, so long as a single amount was charged for the joint or
				multiple risk rather than a charge which is the sum of the premiums for each
				individual risk.
(b) Section 357-a 
				of the Banking Law states that when a licensed lender provides credit life or
				credit accident and health insurance, or both, with respect to one or more
				borrowers, the licensee may collect from the borrower otherwise legal premiums
				or charges, and further states that "(o)nly one such amount may be collected in
				connection with any loan contract irrespective of the number of obligors and
				only one obligor need be insured."
(c) The department in response adhered to its
				long-standing interpretation of the statute as permitting the imposition of
				insurance charges only in the amount necessary to cover one obligor. The
				department recognized that several obligors can be insured more economically on
				a joint rather than a several basis. However, in the department's view it has
				not been demonstrated that insurance of more than one obligor is necessary to
				protect the licensee's investment or that it adds significantly to the
				protection afforded by insuring one obligor. Furthermore, there is nothing in
				the legislative history of section 357-a which would indicate legislative
				sanction for insurance of more than one obligor.
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 6 - Other Licensees › Section LI 6.2 - Time of payment of service charge on premium advanced by insurance premium finance agency

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The department
				was asked whether it was legally permissible for a premium finance agency to
				take the service charge authorized by section 568 (4)  of the Banking Law
				in one lump sum at the beginning of the related transaction or whether it must,
				on the contrary, pro-rate such charge over the life of the repayment contract
				and collect it periodically along with installments of principal.
(b) The department, after a careful review of
				the legislative history of article XII-B of the Banking Law and with particular
				emphasis on section 568(1), forbidding agencies from taking any greater charges
				than are permitted by that article, concluded that payment of the full service
				charge at the beginning of the contract rather than in installments over its
				term would constitute an expense to the borrower greater than that contemplated
				by the statute, since a "front end" payment of the service charge would
				immediately deprive the borrower of the use of the money concerned. Such an
				increase in the actual cost of the financing to the consumer was not, in the
				department's view intended by the Legislature and hence is legally
				impermissible.
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 6 - Other Licensees › Section LI 6.4 - Preemption of part of banking law section 352(e) by section 2125(c) of the vehicle and traffic law

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The Banking
				Department was asked whether section 2125 (c) and section 2123  of the Vehicle and Traffic Law, which
				became effective on July 1, 1972, impliedly repealed section 352 (e)  of the Banking Law,
				which permits a licensed lender to charge a borrower the cost of filing fees
				for the perfection of a lien on an automobile or to include it in the lender's
				charge to the borrower.
(1) Section 2123  of the Vehicle and Traffic Law
				provides that the method provided in this article of perfecting and giving
				notice of security interests subject to this article is exclusive. Security
				interests subject to this article are hereby exempted from the provisions of
				law which otherwise relate to the perfection of security interests.
(2) On the subject of fees, section 2125(c)
				directs that the fee for filing a notice of security interest shall be paid by
				the party secured and such fee shall not be charged to the owner in any
				manner.
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 7 - Miscellaneous-Banking Law › Section LI 7.1 - Certain activities with respect to credit cards

Current through Register Vol. 46, No. 28, July 10, 2024
A company wished to engage in the business of gathering
				  credit card purchase slips from a number of small merchants and presenting the
				  same for payment to the bank having issued the cards. By such presentment in
				  bulk the company obtained a more favorable purchase rate from the card issuer
				  than would have been available to each merchant making smaller individual
				  presentments. Part of the saving was to be retained by the company, and the
				  rest to be passed on to the participating merchants. The department was asked
				  whether this activity required licensing under the Banking Law.
In response the department indicated that article XI-B of the
				  Banking Law would only require licensing of the activity described if the
				  company was in the business of "purchasing or otherwise acquiring" the
				  credit-card obligation involved. If title to the obligations at no time vested
				  in the company and its activity was solely in the nature of providing
				  bookkeeping and bailment services to the merchants as their agent, neither
				  article XI-B nor any other Banking Law provision would require licensing. The
				  department understood that payment arrangements between issuing banks and
				  merchants were not such as to constitute the company as one which receives
				  money for transmission or transmits the same, an activity which would require
				  licensing under article XIII of the Banking Law.
DATED: June 1, 1974
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 8 - Miscellaneous-Banking Board Regulations, Superintendent's Regulations, Supervisory Policies and Procedures › Section LI 8.1 - Interest payments by a person other than the borrower

Current through Register Vol. 46, No. 28, July 10, 2024
A borrower asked whether there would be a violation of the
				  usury laws if a lender, upon the security of a single family residence,
				  required the seller or broker (not the borrower) to pay a certain amount, as
				  discount or points, in addition to charging the borrower interest at a rate
				  slightly below the maximum rate permitted by law.
The borrower's attention was called to the language of
				  section
				  4.2 
				  of Part 4 of the general regulations of the Banking Board which defines
				  interest to include "all other amounts paid or payable, directly or indirectly,
				  by any person, to or for the account of the lender in consideration for making
				  the loan or forbearance." (Emphasis added) The borrower was advised that
				  amounts paid in consideration for the making of the loan or forbearance would,
				  thus, be included as interest regardless of whether they were paid by the
				  borrower or by someone else. If the amount so paid brought the interest rate
				  over the maximum rate permitted by law, then the loan would be usurious.
DATED: July 23, 1969
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 8 - Miscellaneous-Banking Board Regulations, Superintendent's Regulations, Supervisory Policies and Procedures › Section LI 8.2 - Propriety of "transfer" charge by mortgagee upon change of mortgagor

Current through Register Vol. 46, No. 28, July 10, 2024
The department was informed that a mortgage investing
				  institution had granted a conventional home mortgage loan in 1969 which by its
				  terms did not allow the mortgagee to accelerate the mortgage indebtedness or
				  declare it in default upon sale or transfer of the residence mortgaged. The
				  mortgage debt bore the maximum rate permitted by law when made. A sale did
				  occur, and the mortgagee attempted to impose a "transfer fee" on the assuming
				  mortgagor. The department was asked whether in its opinion the charge was
				  proper under Part 4 of the general regulations of the Banking Board, which was
				  applicable because the loan postdated June 30, 1968.
The department responded that on the facts presented it did
				  not see a legal justification for the charge. Since the loan already bore the
				  maximum legal rate in effect at the time it was made, imposing the additional
				  charge would be a usurious practice unless the charge fell within one of the
				  categories set forth in section
				  4.3 
				  of Part 4. Since the purchaser of the home assumed the existing mortgage, the
				  department recognized that certain of these categories might be operative, such
				  as legal services and disbursements (section
				  4.3[b]
				  [5]), and possible fees and taxes for filing
				  or recording whatever transfer, satisfaction or other documents might be
				  necessary (section
				  4.3[c]
				  and [e]). However, the mortgagee should be
				  prepared to itemize and justify these expenses and may not charge an
				  undifferentiated aggregate "transfer fee". The department was of the view that
				  the foregoing principles would be equally applicable if the purchaser had taken
				  the property subject to the mortgage instead of assuming it. It was felt
				  likely, however, that even fewer of the categories in section
				  4.3 
				  would be operative in a "subject to" situation.
DATED: May 1, 1973
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 9 - Miscellaneous-Other › Section LI 9.3 - Transfer agents

Current through Register Vol. 46, No. 28, July 10, 2024
It is the opinion of the department that a corporation
				  organized under the Business Corporation Law may not act as transfer agent in
				  this State.
DATED: November 6, 1976
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 1 Banks and Trust Companies › Section 1.1 - Acceptance of warrants to purchase stock of corporate borrowers

Current through Register Vol. 46, No. 28, July 10, 2024
A State bank requested confirmation that a proposed loan
				  transaction in which X, a New York business corporation, would issue warrants
				  to purchase its common stock to several banks for exercise over a five year
				  period would not violate any regulation or policy of the New York State Banking
				  Department. The bank stated that it would not exercise the warrants issued to
				  it in the transaction but that it intended to retain the warrants for its own
				  account. Its letter included the following discussion of New York law:
Regarding the applicable provisions of the Banking Law, it is
				  submitted that the power to acquire warrants by a New York banking corporation
				  in the manner contemplated derives from Section 96-1, the general banking
				  powers clause, as an 'incidental power * * * necessary to carry on the business
				  of banking.' Acquisition of the warrants is not prohibited by Section 97
				  relating to acquisitions by banks of stock of any corporation, because warrants
				  are not 'stock'. The bank will not exercise such warrants, and will thus never
				  own stock in [X]
Finally, the provisions of Section 108  of the Banking Law and Section 190.4 of
				  the Penal Law regarding interest rates do not prohibit the proposed
				  transaction. The warrants are in the nature of prepaid 'interest' as a 'charge
				  * * * incidental to * * * making any such loan,' but their present value,
				  together with the annual interest on the notes of 1/2% over the prime rate,
				  will be substantially below the 25% usury ceiling applicable to corporate
				  borrowers."
The bank was advised that the transaction as outlined did not
				  violate any present regulation or policy of the department. The bank was
				  further advised that the department agreed with its view of the applicable
				  provisions of the New York Banking Law.
The department stated its intention, however, to examine
				  carefully all significant credits involving the issuance of warrants to
				  purchase the common stock of a borrower, because equity arrangements of this
				  kind are frequently made with prospective borrowers of less than adequate
				  credit standing. In this regard, the department noted with satisfaction the
				  bank's express statement that the credit-worthiness of the borrower in the
				  proposed transaction and its ability to repay the principal amount of the loan
				  had been determined "without reference to any value of the warrants" to be
				  issued.
DATED: November 13, 1969
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 1 Banks and Trust Companies › Section 1.2 - Offer of free personal checking account to persons who maintain minimum savings deposits

Current through Register Vol. 46, No. 28, July 10, 2024
A State bank inquired whether the following offer would
				  violate Banking Board General Regulation Part 20, which limits the interest
				  rate which a bank may pay.
The bank would offer a free personal checking account to any
				  person who either purchases a $1000 certificate of deposit or maintains a
				  minimum balance of $1000 in a savings account with the bank. Interest would be
				  paid on the certificates of deposit and on the savings accounts at the highest
				  rate permitted by law.
The department observed that absorption by a bank of all or
				  part of its cost in servicing a checking account of its depositor has not been
				  deemed the payment of interest thereon in violation of the regulation which
				  prohibits the payment of interest on demand deposit accounts.
Applying the foregoing principle, the department concluded
				  that the bank's cost of the free personal checking account would not be
				  regarded as interest within the meaning of Part 20 of the General Regulations
				  and that the offer, therefore, did not violate the regulations.
DATED: March 25, 1970
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 1 Banks and Trust Companies › Section 1.3 - Trust company acting as agent of Department of Motor Vehicles

Current through Register Vol. 46, No. 28, July 10, 2024
The department was asked whether it would be permissible,
				  under the New York State Banking Law, for a trust company to act as agent of
				  the Department of Motor Vehicles for the purpose of issuing vehicle
				  registration renewals.
The department responded that, in its opinion, under section
				  100-1 of the Banking Law it would be permissible for trust companies to engage
				  in such activities.
DATED: January 31, 1969
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 4 Savings Banks and Savings and Loan Associations › Section 4.1 - Leeway investments

Current through Register Vol. 46, No. 28, July 10, 2024
The department was asked whether mutual savings institutions
				  may use the "leeway" investment authorization (Banking Law, § 235[29]) for
				  the purpose of making investments which are specifically authorized under one
				  of the other 28 subdivisions of section 235. The department took the position
				  that since the opening sentence of subdivision 29 explicitly states that the
				  "leeway" provision is applicable to "[i]nvestments which do not qualify under
any
of the preceding subdivisions," such use of the
				  authorization would be improper. Thus, the department concluded that a savings
				  institution may not, for example, carry on its books, as a "leeway" investment,
				  bonds and mortgages or notes and mortgages on improved and unencumbered real
				  property which would satisfy the requirements of section 235 (6)  of the Banking Law,
				  or preferred, guaranteed or common stock of a corporation which would meet the
				  requirements of section 235(26).
The department was also asked whether "leeway" may be used
				  for investments which do not "qualify" under preceding subdivisions of section 235 
				  of the Banking Law because the limitation on the aggregate amount of the
				  investment, recited in the subdivision under which the investment would
				  otherwise be authorized, has already been met. The department stated that such
				  use of the "leeway" authorization, too, would be improper, because paragraph
				  (d) of subdivision 29 provides that "[t]his subdivision shall not be deemed to
				  alter any provision of this chapter  deemed to
				  alter any provision of this chapter limiting the aggregate amount which may be
				  invested in any class of loan or investment." Accordingly, the department
				  stated that a savings institution may not, for example, exceed the subdivision
				  (9)(a)(1) limitation on its bank premises account by carrying bank premises
				  real estate on its books as a "leeway" investment.
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 4 Savings Banks and Savings and Loan Associations › Section 4.3 - Crediting dividends on date of deposit-date of withdrawal accounts

Current through Register Vol. 46, No. 28, July 10, 2024
A savings bank inquired whether section 245 (3)(b)  of the Banking
				  Law may fairly be read to allow the crediting of dividends on date of
				  deposit-date of withdrawal (DOD/DOW) accounts during, rather than after the
				  close of, business on the last day of the bank's regular dividend
				  period.
The department answered in the affirmative stating that the
				  above interpretation would not be inconsistent with the language of the statute
				  or the intent of the Legislature so long as the bank did not view the
				  interpretation as sanctioning grace days on DOD/DOW accounts. The department
				  observed that grace days are not permitted on DOD/DOW accounts, and cautioned
				  the savings bank that if it chose to avail itself of the advantages of this new
				  interpretation, it must be careful not to violate the grace day
				  proscription.
DATED: September 20, 1968
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 6 Other Licensees › Section 6.1 - Insurance charges by licensed lenders

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A company licensed to make small loans
				under article 9 of the Banking Law inquired whether, in connection with a
				single loan having more than one obligor, the lender could require several
				obligors to be insured and bear the cost of such insurance, so long as a single
				amount was charged for the joint or multiple risk rather than a charge which is
				the sum of the premiums for each individual risk.
(b) Section 357-a  of the Banking Law states
				that when a licensed lender provides credit life or credit accident and health
				insurance, or both, with respect to one or more borrowers, the licensee may
				collect from the borrower otherwise legal premiums or charges, and further
				states that "(o)nly one such amount may be collected in connection with any
				loan contract irrespective of the number of obligors and only one obligor need
				be insured."
(c) The department in
				response adhered to its long-standing interpretation of the statute as
				permitting the imposition of insurance charges only in the amount necessary to
				cover one obligor. The department recognized that several obligors can be
				insured more economically on a joint rather than a several basis. However, in
				the department's view it has not been demonstrated that insurance of more than
				one obligor is necessary to protect the licensee's investment or that it adds
				significantly to the protection afforded by insuring one obligor. Furthermore,
				there is nothing in the legislative history of section 357-a which would
				indicate legislative sanction for insurance of more than one obligor.
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 8 Miscellaneous-Banking Board Regulations, Superintendent's Regulations, Supervisory Policies and Procedures › Section 8.1 - Interest payments by a person other than the borrower

Current through Register Vol. 46, No. 28, July 10, 2024
A borrower asked whether there would be a violation of the
				  usury laws if a lender, upon the security of a single family residence,
				  required the seller or broker (not the borrower) to pay a certain amount, as
				  discount or points, in addition to charging the borrower interest at a rate
				  slightly below the maximum rate permitted by law.
The borrower's attention was called to the language of
				  section
				  4.2 
				  of Part 4 of the general regulations of the Banking Board which defines
				  interest to include "all other amounts paid or payable, directly or indirectly,
by any person,
to or for the account of the lender
in
				  consideration for making the loan or forbearance."
(Emphasis added)
				  The borrower was advised that amounts paid in consideration for the making of
				  the loan or forbearance would, thus, be included as interest regardless of
				  whether they were paid by the borrower or by someone else. If the amount so
				  paid brought the interest rate over the maximum rate permitted by law, then the
				  loan would be usurious.
DATED: July 23, 1969
New York Codes, Rules and Regulations › Title 3 - BANKING › Legal Interpretations › LI 8 Miscellaneous-Banking Board Regulations, Superintendent's Regulations, Supervisory Policies and Procedures › Section 8.2 - Propriety of "transfer" charge by mortgagee upon change of mortgagor

Current through Register Vol. 46, No. 28, July 10, 2024
The department was informed that a mortgage investing
				  institution had granted a conventional home mortgage loan in 1969 which by its
				  terms did not allow the mortgagee to accelerate the mortgage indebtedness or
				  declare it in default upon sale or transfer of the residence mortgaged. The
				  mortgage debt bore the maximum rate permitted by law when made. A sale did
				  occur, and the mortgagee attempted to impose a "transfer fee" on the assuming
				  mortgagor. The department was asked whether in its opinion the charge was
				  proper under Part 4 of the general regulations of the Banking Board, which was
				  applicable because the loan postdated June 30, 1968.
The department responded that on the facts presented it did
				  not see a legal justification for the charge. Since the loan already bore the
				  maximum legal rate in effect at the time it was made, imposing the additional
				  charge would be a usurious practice unless the charge fell within one of the
				  categories set forth in section
				  4.3 
				  of Part 4. Since the purchaser of the home assumed the existing mortgage, the
				  department recognized that certain of these categories might be operative, such
				  as legal services and disbursements (section
				  4.3[b][5]), and possible fees and taxes for filing or recording whatever transfer,
				  satisfaction or other documents might be necessary (section
				  4.3[c]
				  and [e]). However, the mortgagee should be
				  prepared to itemize and justify these expenses and may not charge an
				  undifferentiated aggregate "transfer fee". The department was of the view that
				  the foregoing principles would be equally applicable if the purchaser had taken
				  the property subject to the mortgage instead of assuming it. It was felt
				  likely, however, that even fewer of the categories in section
				  4.3 
				  would be operative in a "subject to" situation.
DATED: May 1, 1973
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 2 - Advertisement of Interest Rates on Savings and Time Accounts › Section 2.1 - Advertisement of interest rate achieved through compounding

Current through Register Vol. 46, No. 28, July 10, 2024
Advertisements may refer to an effective annual yield on
					 any savings account, time deposit, certificate of deposit, or other time
					 balance, which is achieved by compounding interest during one year together
					 with a reference to the basis of compounding, but the annual rate of simple
					 interest on such time balance which does not include the effect of compounding
					 shall also be stated with at least equal prominence.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 2 - Advertisement of Interest Rates on Savings and Time Accounts › Section 2.2 - Advertisement of compounding method

Current through Register Vol. 46, No. 28, July 10, 2024
While it is the policy of the Banking Board to encourage
					 the payment of the maximum permitted interest rates on savings and time
					 accounts, provided sufficient earnings are available to make such payments, it
					 is the Board's belief that advertisements which give prominence to statements
					 such as interest is "compounded continuously", "compounded every minute of the
					 day", "compounded every second" or "compounded even while you sleep" may be
					 confusing. Accordingly, the following guidelines are established for
					 advertisements which refer to compounding interest for periods of less than one
					 day:
(a) the reference to the basis of
				  compounding shall be limited to the word "compounded" and the actual time
				  period or interval used; further, such reference shall not be emphasized or
				  otherwise given prominence within the advertisement and, in the case of a
				  printed advertisement, shall not appear in a type size which is larger than
				  that of the text of such advertisement;
(b) the advertisement shall state prominently
				  the effective annual yield achieved by compounding on the basis used as well as
				  the simple annual interest rate in accordance with subsection
				  2.1 
				  hereof;
(c) the advertisement shall
				  state the monetary difference in the amount earned annually, on the sum of
				  $1,000, between the method of compounding used and compounding on a daily
				  basis; and
(d) no further statement
				  regarding the basis of compounding, which is not specifically permitted by this
				  subsection 2.2, shall be included in such advertisement.
Irrespective of the description of the method of
					 compounding used, the maximum interest rate permitted by the appropriate
					 regulatory authority may be paid.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 3 - Notice of Minimum Balance Requirements on Day-of-Deposit to Day-of-Withdrawal Savings Accounts › Section 3.1 - Notice of minimum balance requirements to be given depositors

Current through Register Vol. 46, No. 28, July 10, 2024
The Banking Board has adopted section
					 67.2, Part 67, general
					 regulations of the Banking Board to insure that every depositor having a
					 day-of-deposit to day-of-withdrawal account with a minimum balance requirement
					 be given due notice of such requirement.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 3 - Notice of Minimum Balance Requirements on Day-of-Deposit to Day-of-Withdrawal Savings Accounts › Section 3.2 - Sample notice

Current through Register Vol. 46, No. 28, July 10, 2024
Compliance would be effected if the following appears in
					 each passbook, or other evidence of deposit, in clear and prominent type of
					 stamping, printing or otherwise:
"A minimum balance of $ must be maintained in this account
					 until the end of each interest/dividend period in which a withdrawal is made.
					 Failure to maintain such minimum balance will result in foreiture or
					 interest/dividends on withdrawals up to the date that the balance falls below
					 the minimum balance."
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 3 - Notice of Minimum Balance Requirements on Day-of-Deposit to Day-of-Withdrawal Savings Accounts › Section 3.3 - Application to passbooks already issued

Current through Register Vol. 46, No. 28, July 10, 2024
Passbooks already issued as of the effective date of the
					 amendment may be brought into compliance by inserting or affixing the
					 appropriate notice whenever such passbooks are presented at any office of the
					 issuing institution.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 4 - Public Accommodation Offices, Adjoining Facilities, and Adjacent Facilities › Section 4.1 - General statement

Current through Register Vol. 46, No. 28, July 10, 2024
The Superintendent of Banks is prepared to authorize public
					 accommodation offices for commercial banks, savings banks and savings and loan
					 associations, subject to the requirements of article IV- A of the Banking Law
					 and provided that, unsound or destructive competition would not result, and
					 there is a reasonable likelihood of success for the proposed
					 office.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 4 - Public Accommodation Offices, Adjoining Facilities, and Adjacent Facilities › Section 4.2 - Adjoining or adjacent facilities

Current through Register Vol. 46, No. 28, July 10, 2024
The establishment of the following does not require
					 authorization by the superintendent:
(a) Any facility which adjoins the wall of an
				  existing office of an institution.
(b) Any facility which is within 150 feet of
				  the nearest wall of an institution's principal office or branch provided that
				  such facility is located on the same property or property contiguous with the
				  principal office or branch and there is no intervening space occupied or which
				  may be occupied by anyone else (except for purposes of parking by bank
				  customers and employees), and no public street or thoroughfare, between the
				  facility and the institution's principal office or branch. However, the
				  superintendent must be notified of an institution's intention to open such
				  facility at least 30 days in advance of such opening and such institution must
				  provide proof satisfactory to the superintendent that the facility meets the
				  above criteria.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 4 - Public Accommodation Offices, Adjoining Facilities, and Adjacent Facilities › Section 4.3 - Existence of public accommodation office not considered in evaluating application for full-service branch

Current through Register Vol. 46, No. 28, July 10, 2024
The existence of a public accommodation office shall not be
					 considered as a factor in the evaluation of an application for a full-service
					 branch.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 6 - Branching Policy for Banking Organizations › Section 6.1 - General statement

Current through Register Vol. 46, No. 28, July 10, 2024
The Superintendent of Banks is prepared to authorize
					 branches of State-chartered banking organizations, provided that approval of
					 the proposed branch will not result in unsound and destructive competition, the
					 performance of the institution pursuant to the standards set forth in Part 76
					 of this Title is satisfactory to the department, and the policies, condition
					 and operation of the institution do not afford a basis for supervisory
					 objection. The words banking organization as used in this supervisory policy
					 shall include all banking organizations (as defined in section
					 2[11] of the Banking Law)
					 which are authorized by the Banking Law to open branch offices, subject to the
					 provisions of section 29  of the Banking Law. The words branch,
					 branches, office and offices as used in this Supervisory Policy shall not
					 include limited branches, public accommodation offices, satellite offices,
					 automated teller machines, point-of-sale terminals or similar
					 facilities.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 6 - Branching Policy for Banking Organizations › Section 6.2 - Competing applications

Current through Register Vol. 46, No. 28, July 10, 2024
(a) If
				  applications are filed by two or more institutions for new branches in the same
				  area and, in the judgment of the superintendent, approval of only one branch is
				  warranted, particular consideration will be given to the following factors:
(1) which of the institutions is best able,
				  in terms of capital and management strength, to support an additional
				  office;
(2) the effects of approval
				  on competition and public choice among banking institutions in the
				  area;
(3) the effects of approval
				  on the competitive banking structure on a citywide or countywide
				  basis;
(4) the performance of the
				  institution pursuant to the standards set forth in General Regulation Part 76;
				  and
(5) any other factors which may
				  be of particular relevance in a given situation.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 6 - Branching Policy for Banking Organizations › Section 6.3 - Competitive effects on other institutions

Current through Register Vol. 46, No. 28, July 10, 2024
In determining whether approval of a branch application by
					 an institution will result in unsound and destructive competition,
					 consideration will be given to all banking organizations as well as to all
					 national banks, out-of-state state banks, Federal savings banks and Federal
					 savings and loan associations, in substantial competition with the proposed
					 branch.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 7 - Legalization of Foreign Documents › Section 7.1 - General statement

Current through Register Vol. 46, No. 28, July 10, 2024
From time to time, documents executed in foreign countries
					 must be submitted to the Banking Department. Such documents include
					 applications by a foreign banking corporation for a license to open a branch or
					 agency in New York, appointment of New York branch manager as well as
					 certifications as to paid-in-capital stock, surplus fund and undivided profit.
					 Such requirements are found, for example, in article V of the New York State
					 Banking Law and Supervisory Procedure CB 104.
On October 15, 1981, the United States became a party to
					 the Hague Convention Abolishing the Requirement of Legalization for Foreign
					 Public Documents. The convention simplified the procedure for having a foreign
					 document legalized. Each country which is a party to the convention designates
					 the authority or authorities who may certify public documents. A certification,
					 also known as an apostille, is affixed to the document by the competent local
					 authority of the foreign country where the document originated. The form of the
					 apostille is set forth in section
					 7.2  of
					 this supervisory policy in the same form as set forth in the convention.
					 Further legalization of documents will not be required for submission to the
					 New York State Banking Department in the case of documents originating in
					 countires which are parties to the convention.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 7 - Legalization of Foreign Documents › Section 7.2 - Model form of apostille

Current through Register Vol. 46, No. 28, July 10, 2024
APOSTILLE
1.
				  Country ____________
2. This public
				  document ____________
has been signed by ____________
3. Acting in the capacity of
				  ____________
4. bears the
				  seal/stamp of ____________
____________
5. certified at ________
6. the ________
7. by ____________
8. No. ____________
9. Seal/stamp Signature
10. ____________
____________
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 7 - Legalization of Foreign Documents › Section 7.3 - Limitations

Current through Register Vol. 46, No. 28, July 10, 2024
This supervisory policy applies only to documents
					 originating in countries which are party to the convention. The Banking
					 Department will rely on opinions of counsel or other appropriate evidence from
					 parties seeking to use this supervisory policy that the country in which the
					 documents originate is a party to the convention.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 8 - Registration of Domestic Representative Offices › Section 8.1 - General

Current through Register Vol. 46, No. 28, July 10, 2024
Any banking institution seeking to establish or maintain a
					 representative office shall submit the information called for by section
					 8.3  of this
					 Supervisory Policy to the Superintendent of Banks, at the New York City Office
					 of the Banking Department at the address set forth in section
					 1.1  of
					 Supervisory Policy G 1.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 8 - Registration of Domestic Representative Offices › Section 8.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Supervisory Policy:
(a) Banking institution means any bank, trust
				  company, savings bank, and savings and loan association chartered under the
				  laws of New York State, Puerto Rico or any other state or territory of the
				  United States.
(b) Representative
				  office means any office located in this State of a banking institution that
				  engages in representational functions (including but not limited to soliciting
				  business, marketing services or acting as liaison with customers) on behalf of
				  the banking institution, but shall not include a branch office of a banking
				  institution or any office that engages solely in administrative or supervisory
				  functions. A representative office shall also include an office of a New York
				  chartered institution located outside this State that engages in
				  representational functions.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 8 - Registration of Domestic Representative Offices › Section 8.3 - Information required

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  information to be supplied to the superintendent pursuant to section
				  8.1  of
				  this Supervisory Policy shall be in letter form, shall be submitted prior to
				  the establishment of the office, and shall include:
(1) address of the representative
				  office;
(2) for institutions
				  headquartered outside this State, address of the head office of the banking
				  institution;
(3) complete
				  description of the activities of the representative office;
(4) for institutions headquartered outside
				  this State, opinion of counsel that:
(i) the
				  activities of the representative office are permissible under section
				  8.4 
				  of this Supervisory Policy; and
(ii) the banking institution has obtained all
				  regulatory approvals required to establish and maintain such representative
				  office.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 8 - Registration of Domestic Representative Offices › Section 8.4 - Permissible activities

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  activities that may be conducted by a representative office of a banking
				  institution in this State on behalf of such banking institution shall be
				  limited to the following:
(1) approval of
				  loans;
(2) execution of loan
				  documents;
(3) solicitation of
				  loans and, in connection therewith, assembly of credit information, making of
				  property inspections and appraisals, securing of title information, preparation
				  of applications for loans (including making recommendations with respect to
				  action thereon);
(4) solicitation
				  of purchasers of loans from the banking institution;
(5) solicitation of parties to contract with
				  the banking institution for the servicing of its loans;
(6) solicitation of other banking business on
				  behalf of the banking institution;
(7) conduct of research;
(8) acting as liaison with customers of the
				  banking institution; and
(9) other
				  similar activities.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Policy 8 - Registration of Domestic Representative Offices › Section 8.5 - Designation as representative office

Current through Register Vol. 46, No. 28, July 10, 2024
Any representative office subject to registration pursuant
					 to this Supervisory Policy shall designate itself as a representative office on
					 any office sign at its office location, telephone listing, print advertisement
					 and on its stationery. It shall also prominently display a notice at its office
					 location that it is not a branch office of a bank and does not engage in
					 general banking transactions at such office.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Procedure 100 - Addressing of Requests for Official Action › Section 100.1 - General rule

Current through Register Vol. 46, No. 28, July 10, 2024
To insure the orderly processing of Banking Department
					 mail, supervised institutions and licensees should, unless otherwise specified
					 in a particular Procedure, address all initial requests for official action and
					 all initial requests for an opinion of Banking Department counsel to the
					 superintendent, at the address set forth in section
					 1.1  of
					 Supervisory Policy G 1 of this Title.
Copies of such initial correspondence may be sent to named
					 individuals or divisions within the Banking Department.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Procedure 100 - Addressing of Requests for Official Action › Section 100.2 - Subsequent correspondence

Current through Register Vol. 46, No. 28, July 10, 2024
Such initial requests will be routed to specific
					 individuals or divisions within the department, from whom the applicant may
					 receive further correspondence, including requests for additional information.
					 Subsequent correspondence from the applicant concerning the same request should
					 be addressed specifically to such individual or to the deputy superintendent in
					 charge of the division to whom the initial request has been
					 referred.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Procedure 101 - Notice of Automated Data Processing Systems: Superintendent's Right to Examine Independent Services › Section 101.1 - Notice

Current through Register Vol. 46, No. 28, July 10, 2024
All banking organizations, registered bank holding
					 companies, and other entities supervised by the Banking Department should
					 notify the Banking Department, at the address set forth in section
					 1.1  of
					 Supervisory Policy G 1 of this Title, of a decision to contract to receive
					 automated data processing services from an independent firm or banking
					 organization.
Such notice should list the name of the firm or banking
					 organization which is to furnish such services and the date for conversion of
					 records to outside- serviced automated data processing equipment, and should
					 identify the application to be initially converted, the applications scheduled
					 for subsequent conversion and the anticipated conversion dates; and should be
					 accompanied by a copy of the proposed contract to receive automated data
					 processing services.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Procedure 101 - Notice of Automated Data Processing Systems: Superintendent's Right to Examine Independent Services › Section 101.2 - Superintendent's right of examination

Current through Register Vol. 46, No. 28, July 10, 2024
Such contract for independently furnished automated data
					 processing services shall state that the superintendent or his authorized
					 representative has the right to examine all records and material, use the
					 equipment and interview employees of the firm or banking organization
					 furnishing the services to the extent he deems necessary to protect the
					 interests of depositors, creditors or stockholders of the banking organization
					 or licensee receiving such services.
New York Codes, Rules and Regulations › Title 3 - BANKING › Supervisory Policies and Procedures › General › Supervisory Procedure 104 - Application for a Public Accommodation Office › Section 104.1 - General information

Current through Register Vol. 46, No. 28, July 10, 2024
A bank or trust company, savings bank or savings and loan
					 association which seeks approval of a public accommodation office pursuant to
					 Banking Law, section
					 191 should submit an application for such
					 approval to the superintendent, accompanied by payment of the fee specified in
					 section
					 1.2  of
					 Supervisory Policy G 1 of this Title.