Bill S5004-2011

Amends the definition of "bank holding company" to replace the phrase "a banking institution" to "two or more banking institutions"

Amends the definition of "bank holding company" to replace the phrase "a banking institution" to "two or more banking institutions".

Details

Actions

  • Jun 17, 2011: SUBSTITUTED BY A8157
  • May 24, 2011: ADVANCED TO THIRD READING
  • May 23, 2011: 2ND REPORT CAL.
  • May 18, 2011: 1ST REPORT CAL.783
  • May 2, 2011: REFERRED TO BANKS

Votes

VOTE: COMMITTEE VOTE: - Banks - May 18, 2011
Ayes (19): Griffo, Farley, Bonacic, DeFrancisco, Gallivan, Golden, Johnson, O'Mara, Marcellino, Ranzenhofer, Smith, Breslin, Carlucci, Diaz, Kruger, Krueger, Rivera, Savino, Valesky

Memo

BILL NUMBER:S5004

TITLE OF BILL: An act to amend the banking law, in relation to the definition of bank holding company

PURPOSE: This bill makes technical changes to Chapter 217 of the Laws of 2010 with respect to the definition of bank holding company.

SUMMARY OF PROVISIONS: Section 1 of the bill would amend Banking Law section 142-a subdivision 2 to define a bank holding company as two or more banking institutions. This would restore the prior definition of bank holding company as two or more banking institutions. The reason for retaining the definition of bank holding company in this section is so that the potential home office protection for the principal office of subsidiaries of one-bank holding companies will remain.

Section 2 of the bill would amend Banking Law section 105 concerning branching to define a bank holding company as two or more banking institutions. This would restore the prior definition of bank holding company as two or more banking institutions. This change back would retain the status quo with respect to home office protection for principal offices of certain banking institutions that are subsidiaries of one-bank holding companies which are subject to home office protection.

Section 3 of the bill would amend Banking Law section 240 concerning branching to define a bank holding company as two or more banking institutions.

Section 4 of the bill would amend Banking Law section 396 concerning branching to define a bank holding company as two or more banking institutions.

Section 5 provides for an immediate effective date.

JUSTIFICATION/STATEMENT IN SUPPORT: Chapter 217 of the Laws of 2010 made changes to the Banking Law to streamline regulation of bank holding companies. Due to an oversight, the definition of bank holding company was changed in Banking Law sections 142-a, 105, 240 and 396 which relate to branching. This bill would amend the term bank holding company to retain the former definition of two bank holding company in the aforementioned sections. This change is necessary because those provisions extend New York's home office protection to the principal office of a state bank or trust company or national bank in a city or village of limited population, unless the principal office is that of a bank which is a subsidiary of a bank holding company which was previously defined under New York law as a two bank holding company. This maintains the status quo to insure home office protection for banks which were receiving the same.

LEGISLATIVE HISTORY:

This is a new bill intended to make technical corrections to Chapter 217 of the Laws of 2010.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: This bill would take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5004 2011-2012 Regular Sessions IN SENATE May 2, 2011 ___________
Introduced by Sen. GRIFFO -- 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 the definition of bank holding company THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 142-a of the banking law, as amended by chapter 217 of the laws of 2010, is amended to read as follows: 2. As used in this section, the term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a banking institution, whether through the ownership of voting stock of such banking institution, the ownership of voting stock of any company which possesses such power or otherwise. Control shall be presumed to exist if any company, directly or indirect- ly, owns, controls or holds with the power to vote ten per centum or more of the voting stock of any banking institution or of any company which owns, controls or holds with power to vote ten percent or more of the voting stock of such banking institution, but no person shall be deemed to control a banking institution solely by reason of his being an officer or director of such banking institution or company. As used in this section, the terms "bank holding company" and "banking institution" shall have the meanings as defined in section one hundred forty-one of this article, except that the definition of "bank holding company" is modified to change the phrase "a banking institution" wherever it appears therein to "[one] TWO or more banking institutions" and the definition of "banking institution" is modified to add a national bank- ing association, the principal office of which is located in this state. S 2. Paragraph (a) of subdivision 1 of section 105 of the banking law, as amended by chapter 217 of the laws of 2010, is amended to read as follows:
(a) No bank or trust company or officer, director, agent or employee thereof, shall transact any part of its usual business of banking at any place other than its principal office, except that a bank or trust company may open and occupy one or more branch offices at any location in the state, provided: (i) that the requirements of section twenty-nine of this chapter are met and (ii) that, except for the city or village in which its principal office is located, in no event shall a branch be opened and occupied pursuant to this subdivision in a city or village with a population of fifty thousand or less in which is already located the principal office of another 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 institu- tion" 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" wher- ever it appears therein to "[one] 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, except, in the case of a conversion pursuant to the provisions of this article, branch offices occupied immediately prior thereto or except for the purpose of acquiring by merger, sale or otherwise the business and property of a bank, trust company or national banking association, whether in liquidation or doing business in the usual course. S 3. Paragraph (c) of subdivision 2 of section 240 of the banking law, as amended by chapter 217 of the laws of 2010, is amended to read as follows: (c) Except for the city or village in which its principal office is located, no branch office may be opened and occupied pursuant to para- graph (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 subsid- iary" 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 "[one] 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. S 4. Paragraph (b) of subdivision 2 of section 396 of the banking law, as amended by chapter 217 of the laws of 2010, is amended to read as follows: (b) Except for the city or village in which its principal office is located, no branch office may hereafter be opened and occupied pursuant to paragraph (a) of this subdivision in any city or village with a popu- lation of less than thirty thousand and in which is already located the principal office of a bank, trust company or national banking associ- ation, 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 "[one] TWO or more banking institutions" and the definition of "banking institution" is modified to add a national bank- ing association, the principal office of which institution is located in this state. S 5. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus