This bill has been amended

Bill S2933-2013

Relates to the preservation of books and records of banking institutions

Provides that requirements relating to the preservation of certain banking records may be satisfied by maintenance of original papers or other records, photographic reproductions, or records stored in electronic storage media.



  • Jan 8, 2014: REFERRED TO BANKS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 12, 2013: referred to banks
  • Jun 12, 2013: PASSED SENATE
  • Jun 10, 2013: 2ND REPORT CAL.
  • Jun 5, 2013: 1ST REPORT CAL.1129
  • Jan 25, 2013: REFERRED TO BANKS




VOTE: COMMITTEE VOTE: - Banks - Jun 5, 2013
Ayes (18): Griffo, Farley, Bonacic, DeFrancisco, Golden, Marchione, Martins, Marcellino, O'Mara, Ranzenhofer, Savino, Valesky, O'Brien, Breslin, Diaz, Avella, Parker, Gipson
Nays (1): Sanders



TITLE OF BILL: An act to amend the banking law, in relation to electronic preservation of banking records

PURPOSE: This bill would update some sections of the Banking Law in order to reflect and keep pace with changes in technology and practices.


Section 1 of this bill adds a new section 36-b to the Banking Law to clarify the ability of regulated entities to preserve their books and records through the use of electronic storage media.

Section 2 of this bill amends section 75-g of the Banking Law to clarify that the Superintendent may require banking institutions to file their annual ATM reports electronically.

Section 3 of this bill amends section 576 of the Banking Law to clarify the ability of insurance premium finance agencies to provide notice by electronic means.

JUSTIFICATION: This bill contains some amendments recommended by the Department of Financial Services to update the Banking Law in order to reflect changes in technology. These amendments will clarify the ability to use more modem and efficient methods of recordkeeping and communication.

The activities and operations of various types of banking institutions and nonbank financial service companies are governed by different articles of the Banking Law govern. Each of these articles generally requires the regulated entities to preserve books and records for a specified number of years. However, these sections of law have been enacted or amended at different times, and may not have been updated to reflect new recordkeeping technologies. For example, some sections refer to the maintenance of records through photographic reproduction, while others include references to optical disk technology.

This bill would enact a new section 36-b in the Banking Law to allow all regulated entities to utilize electronic storage media in preserving their records. The bill specifies certain standards that must be met. This legislation will clarify the ability of financial institutions to use current technology and best practices to preserve records in a costeffective and practical way.

The bill also amends the ATM Safety Act in regard to the submission of reports. Currently, banking institutions must submit annual written reports to the Department of Financial Services regarding their compliance with this article. This can be costly for both the institutions submitting such reports and for the Department to process such written reports. The proposed amendment to Section 75-a of the Banking Law would

automate this process by authorizing the Superintendent to require such reports to be submitted electronically.

Section 576 of the Banking Law currently specifies the process for cancelling an insurance premium finance contract upon default, and the mailing of notices to the insured and insurer. This new section provides that, in addition to mailing, notice may be delivered by other means, including electronic means, provided that such delivery method includes evidence of receipt, including a receipt created and maintained in electronic form.



EFFECTIVE DATE: The ninetieth day after it shall have become law


STATE OF NEW YORK ________________________________________________________________________ 2933 2013-2014 Regular Sessions IN SENATE January 25, 2013 ___________
Introduced by Sen. FARLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to electronic preservation of banking records THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The banking law is amended by adding a new section 36-b to read as follows: S 36-B. PRESERVATION OF BOOKS AND RECORDS. WHEN ANY PROVISION OF THIS CHAPTER OR ANY RULE OR REGULATION ADOPTED PURSUANT THERETO REQUIRES THAT BOOKS AND RECORDS BE PRESERVED, SUCH REQUIREMENT MAY BE SATISFIED BY MAINTENANCE OF ORIGINAL PAPERS OR OTHER RECORDS, PHOTOGRAPHIC REPROD- UCTIONS, OR RECORDS STORED IN ELECTRONIC STORAGE MEDIA. AS USED IN THIS CHAPTER, "ELECTRONIC STORAGE MEDIA" MEANS ANY DIGITAL STORAGE MEDIUM OR SYSTEM THAT MEETS THE FOLLOWING CONDITIONS: 1. IT MUST PRESERVE THE RECORDS EXCLUSIVELY IN NON-REWRITABLE, NON-ER- ASABLE FORMAT; 2. IT MUST VERIFY AUTOMATICALLY THE QUALITY AND ACCURACY OF THE STOR- AGE MEDIA RECORDING PROCESS; 3. IT MUST HAVE THE CAPACITY TO READILY DOWNLOAD INDEXES AND RECORDS PRESERVED ON THE ELECTRONIC STORAGE MEDIA TO ANY MEDIUM ACCEPTABLE TO THE SUPERINTENDENT; AND 4. IT MUST BE IMMEDIATELY READABLE ON EQUIPMENT AT ALL TIMES AVAILABLE TO THE SUPERINTENDENT FOR EXAMINATION OF SUCH RECORDS. S 2. Subdivision 1 of section 75-g of the banking law, as added by chapter 9 of the laws of 1996 and as designated by section 4-a of part A of chapter 57 of the laws of 1998, is amended to read as follows: [1.] Within one year after the effective date of this article, and each year thereafter, every banking institution which has an automated teller machine facility which is in operation on such date and such date every year thereafter shall submit a written report to the department on
a form prescribed by the superintendent, certifying that such automated teller machine facility is in compliance with the provisions of this article or any variance or exemption that has been granted, or if such facility is not in compliance with such provisions, such report shall state the manner in which such facility fails to meet such requirements, the reasons for such non-compliance and a plan to remedy any such non- compliance. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT ANY REPORTS REQUIRED BY THIS SUBDIVISION BE MADE BY ELECTRONIC MEANS IF HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE. S 3. Section 576 of the banking law is amended by adding a new subdi- vision 4 to read as follows: 4. IN ADDITION TO MAILING, NOTICES REQUIRED UNDER THIS SECTION MAY BE DELIVERED BY OTHER MEANS, INCLUDING ELECTRONIC MEANS, PROVIDED THAT ANY SUCH DELIVERY EVIDENCES RECEIPT OF THE NOTICE BY THE ADDRESSEE. SUCH RECEIPT MAY BE CREATED AND MAINTAINED IN ELECTRONIC FORM. S 4. This act shall take effect on the ninetieth day after it shall have become a law.


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