Relates to the exercise of federally permitted powers by a state chartered banking institution; requires a banking institution to make an application with one or more state chartered banking institutions to the superintendent indicating intent to exercise the federally permitted power and the basis for doing so.

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S4612A-2011 Actions

• Jun 15, 2011: SUBSTITUTED BY A8156
• Jun 14, 2011: ADVANCED TO THIRD READING
• Jun 13, 2011: 2ND REPORT CAL.
• Jun 7, 2011: 1ST REPORT CAL.1059
• Jun 2, 2011: PRINT NUMBER 4612A
• Jun 2, 2011: AMEND AND RECOMMIT TO BANKS
• Apr 13, 2011: REFERRED TO BANKS

S4612A-2011 Meetings

Banks: Jun 7, 2011

S4612A-2011 Calendars

Active List: Jun 15, 2011 , Floor Calendar: Jun 13, 2011 , Floor Calendar: Jun 14, 2011 , Floor Calendar: Jun 15, 2011

S4612A-2011 Votes

S4612A-2011 Memo

BILL NUMBER:S4612A

TITLE OF BILL:
An act
to amend the banking law, in relation to the exercise of federally
permitted powers by a state chartered banking institution

PURPOSE:
To expedite the consideration of wild card applications by
mandating that properly submitted applications be posted on the
Department's website and made available for public consideration
within 120 days of their receipt and requiring the superintendent to
notify applicants within 10 days of making a decision.

SUMMARY OF PROVISIONS:
Section one of the bill amends subdivision 3 of
section 12-a of the banking law to mandate that wild card
applications be reviewed and posted on the Department's website and
made available for public consideration within 120 days of their
receipt and requiring the superintendent to notify applicants within
10 days of making a decision on the request. The superintendent's
failure to comply with the posting and notice provisions will allow
an applicant to petition the superintendent to act on the
application. The subsequent failure of the superintendent to act
within 30 days of a petition shall be deemed denial of the
application with an opportunity for the applicant to appeal.
Currently, there is no deadline by which applications have to be
posted or when applicants need to be notified.

JUSTIFICATION:
New York banking law authorizes state-chartered credit
unions and banks to apply to the Banking Department for permission to
exercise the same powers as their federally chartered counterparts.
This power is critical to the state, as it give state-chartered
institutions the ability to exercise the same power as federally
chartered institutions while still maintaining state-charter status.
Consumers receive the benefit of financial institutions being able to
offer more services, and the state retains the money it gains from
state-chartered institutions and the ability to engage in continued
regulation of the financial industry.

Unfortunately, in spite of the importance of this power, its
implementation has provided no benefits to credit unions. Credit
unions seeking to exercise their wild card powers have seen their
applications delayed to the point where they are not even considered.
The amendments made by this bill will make wild card powers a truly
useful instrument for all state-chartered financial institutions. By
mandating that applications made by either a bank or credit union be
reviewed in 30 days, credit unions will no longer be faced with
endless delays in the official consideration of wild card proposals.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.


EFFECTIVE DATE:
Immediately after enactment.

S4612A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   4612--A

                         2011-2012 Regular Sessions

                              I N  SENATE

                               April 13, 2011
                                 ___________

  Introduced  by  Sens.  GRIFFO, AVELLA -- read twice and ordered printed,
    and when printed to be committed to the Committee on Banks --  commit-
    tee  discharged, bill amended, ordered reprinted as amended and recom-
    mitted to said committee

  AN ACT to amend the banking law, in relation to the exercise  of  feder-
    ally permitted powers by a state chartered banking institution

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Subdivision 3 of  section  12-a  of  the  banking  law,  as
  amended  by  section  88 of part A of chapter 62 of the laws of 2011, is
  amended to read as follows:

    3. Except with respect to a federally permitted power approved  pursu-
  ant  to  subdivision  four of this section, prior to any state chartered
  banking institution initially exercising any federally  permitted  power
  pursuant  to this section, such banking institution shall make an appli-
  cation individually or with one or more state chartered  banking  insti-
  tutions to the superintendent indicating that such institution or insti-
  tutions  intend to exercise such federally permitted power and the basis
  on which such institution or institutions believe such power is a feder-
  ally permitted power.  THE SUPERINTENDENT SHALL HAVE ONE HUNDRED  TWENTY
  DAYS  FROM  RECEIPT OF THE APPLICATION TO DETERMINE WHETHER IT MEETS THE
  REQUIREMENTS OF THIS SECTION, PROVIDED THAT SUCH PERIOD MAY BE  EXTENDED
  FOR  AN ADDITIONAL PERIOD OF TIME WITH THE WRITTEN CONSENT OF THE APPLI-
  CANT OR APPLICANTS. If such application meets the requirements  of  this
  section,  the superintendent shall post such application upon the bulle-
  tin board of the department pursuant to section forty-two of this  arti-
  cle.  [After  promptly reviewing such application, the] IF SUCH APPLICA-
  TION DOES NOT MEET THE REQUIREMENTS OF THIS SECTION, THE  SUPERINTENDENT
  SHALL,  WITHIN  TEN  DAYS OF SUCH DETERMINATION, NOTIFY THE APPLICANT OR
  APPLICANTS OF THE REASONS WHY THE APPLICATION FAILS TO MEET THE REQUIRE-
  MENTS. THE superintendent shall determine, consistent with the standards

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD10810-02-1

 S. 4612--A                          2

  set forth in subdivision five of this section, whether to  approve  such
  application  subject  to such terms and conditions as the superintendent
  may deem appropriate, in  the  superintendent's  sole  discretion.  Such
  determination,  shall  be  made  by the superintendent within forty-five
  days after the posting of  such  application  [by  the  superintendent],
  provided  however  that  the  superintendent may notify the applicant or
  applicants that the review of the application shall be extended  for  an
  additional  period of time not exceeding [one hundred twenty] SIXTY days
  after the posting of such application, and provided  further  that  such
  period of time may be extended for an additional period of time with the
  written consent of the applicant or applicants. The superintendent shall
  not act upon the application prior to thirty days after such application
  has  been  posted. [If the superintendent shall determine not to approve
  of such application, the superintendent shall notify  the  applicant  or
  applicants  in writing that the applicant or applicants may not exercise
  such federally permitted power.] If  the  superintendent  approves  such
  application,  the superintendent shall, WITHIN TEN DAYS OF APPROVING THE
  APPLICATION, notify the applicant or applicants in writing thereof,  and
  the  applicant or applicants may exercise such federally permitted power
  subject to such terms and conditions  as  the  superintendent  may  have
  approved.    IF THE SUPERINTENDENT DECLINES SUCH APPLICATION, THE SUPER-
  INTENDENT SHALL, WITHIN TEN DAYS OF MAKING  SUCH  DETERMINATION,  NOTIFY
  THE  APPLICANT  OR APPLICANTS IN WRITING THEREOF. AN APPLICANT OR APPLI-
  CANTS MAY,  UPON  THE  SUPERINTENDENT'S  FAILURE  TO  COMPLY  WITH  THIS
  SECTION,  PETITION  THE  SUPERINTENDENT TO ACT UPON THE APPLICATION. THE
  FAILURE OF THE SUPERINTENDENT TO ACT UPON THE APPLICATION OR NOTIFY  THE
  APPLICANT OR APPLICANTS, IN WRITING, AS TO THE REASONS WHY ACTION CANNOT
  BE  TAKEN WITHIN THIRTY DAYS OF RECEIPT OF SUCH PETITION SHALL BE DEEMED
  A DENIAL OF THE APPLICATION, WHICH SHALL BE SUBJECT TO JUDICIAL  REVIEW.
  Notwithstanding  any other law, the superintendent may make the approval
  of an application under this section applicable to  one  or  more  addi-
  tional  state chartered banking institutions that are qualified to exer-
  cise the same federally permitted powers as the applicant or  applicants
  pursuant  to  subdivision two of this section, subject to such terms and
  conditions as the superintendent shall find necessary and appropriate.
    S 2. This act shall take effect immediately, provided,  however,  that
  the  amendments to subdivision 3 of section 12-a of the banking law made
  by section one of this act shall not affect the repeal of  such  section
  and shall be deemed repealed therewith.