Bill S6735-2013

Relates to extending certain provisions authorizing banks and trust companies to exercise the rights of national banks

Extends provisions relating to the power of banks, private bankers, trust companies, savings banks, savings and loan associations, credit unions and foreign banking corporations to exercise the rights of national banks.

Details

Actions

  • Jun 10, 2014: SUBSTITUTED BY A9057
  • Mar 31, 2014: ADVANCED TO THIRD READING
  • Mar 27, 2014: 2ND REPORT CAL.
  • Mar 26, 2014: 1ST REPORT CAL.366
  • Mar 5, 2014: REFERRED TO BANKS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Banks - Mar 26, 2014
Ayes (19): Griffo, Farley, Bonacic, DeFrancisco, Golden, Marchione, Martins, Marcellino, O'Mara, Ranzenhofer, Valesky, Avella, O'Brien, Breslin, Diaz, Parker, Sanders, Gipson, Kennedy

Memo

BILL NUMBER:S6735

TITLE OF BILL: An act to amend chapter 322 of the laws of 2007, amending the banking law relating to the power of banks, private bankers, trust companies, savings banks, savings and loan associations, credit unions and foreign banking corporations to exercise the rights of national banks, federal savings associations, federal credit unions and federal branches and agencies of foreign banks, in relation to the effectiveness of certain provisions of such chapter; and to amend chapter 3 of the laws of 1997, amending the banking law and the insurance law relating to authorizing the banking board to permit banks and trust companies to exercise the rights of national banks, in relation to the effectiveness of certain provisions of such chapter

PURPOSE:

To extend, for an additional five years, the banking "wild card" law, which provides an administrative mechanism to keep the state banking charter viable and competitive with the federal banking charter.

SUMMARY OF PROVISIONS:

The effective date provisions of Chapter 322 of 2007 and Chapter 3 of the Laws of 1997 are amended to extend the sunset date from September 10, 2014 to September 10, 2019.

EXISTING LAW:

Under the "wild card" law (Section 12-a of the Banking Law), the Superintendent of Financial Services is authorized to permit state-chartered banking organizations to exercise banking powers that are available to corresponding federally-chartered institutions, but which are not expressly authorized under the Banking Law.

STATEMENT IN SUPPORT:

Under the nation's dual banking system, banking institutions may choose to operate under either a state or federal charter. Almost every state has a banking "wild card" law which provides an administrative mechanism to help maintain parity in regard to the powers of state banks and national banks.

In general, a banking wild card law enables a state regulator to administratively authorize state banks to exercise the same powers as national banks. A wild card law can provide a timely, flexible and efficient mechanism for keeping a state's banking charter competitive, attractive and viable in comparison with the federal charter.

In 1997, a banking wild card law was enacted in New York State to help retain and promote the state banking charter and state banking system. With this law, the State sought to reassure its state-chartered banking institutions that it was committed and determined to keep the state charter competitive with the federal charter.

With the rapid and continuing changes in the financial system, state-chartered institutions were becoming increasingly concerned that

they would find themselves at a significant disadvantage. While federally-chartered institutions were positioned to immediately take advantage of any expanded powers and new opportunities granted at the federal level, state institutions feared that lengthy delays and uncertainty at the state level would place them at a significant disadvantage.

The wild card law is intended to help address these concerns by establishing an administrative process to enable New York State to quickly respond to significant parity issues. New York's wild card law included a sunset date, and the law has been extended several times since its original enactment in 1997. This bill would extend the law for an additional five years.

BUDGET IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6735 IN SENATE March 5, 2014 ___________
Introduced by Sens. GRIFFO, FARLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend chapter 322 of the laws of 2007, amending the banking law relating to the power of banks, private bankers, trust companies, savings banks, savings and loan associations, credit unions and foreign banking corporations to exercise the rights of national banks, federal savings associations, federal credit unions and federal branches and agencies of foreign banks, in relation to the effective- ness of certain provisions of such chapter; and to amend chapter 3 of the laws of 1997, amending the banking law and the insurance law relating to authorizing the banking board to permit banks and trust companies to exercise the rights of national banks, in relation to the effectiveness of certain provisions of such chapter THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 6 of chapter 322 of the laws of 2007, amending the banking law relating to the power of banks, private bankers, trust companies, savings banks, savings and loan associations, credit unions and foreign banking corporations to exercise the rights of national banks, federal savings associations, federal credit unions and federal branches and agencies of foreign banks, as amended by section 95 of part A of chapter 62 of the laws of 2011, is amended to read as follows: S 6. This act shall take effect immediately; provided, however that sections one, two, three and four of this act shall take effect Septem- ber 1, 2007; and provided further that sections one, two, three and four of this act shall expire and be deemed repealed September 10, [2014] 2019; and provided further that any federally permitted powers approved under section three of this act shall remain in full force and effect on and after such repeal date and shall not be affected by such repeal. S 2. Section 7 of chapter 3 of the laws of 1997, amending the banking law and the insurance law relating to authorizing the banking board to permit banks and trust companies to exercise the rights of national banks, as amended by section 95-a of part A of chapter 62 of the laws of 2011, is amended to read as follows:
S 7. This act shall take effect immediately provided that section two of this act shall take effect on the thirtieth day after it shall have become a law and shall apply to violations prescribed in section 44 of the banking law that occur on or after such date; and provided further that sections one, three, four and five shall expire and be deemed repealed September 10, [2014] 2019; and provided further that any rules and regulations promulgated pursuant to sections one, three, four and five shall remain in full force and effect on and after such expiration date and shall not be affected by such expiration date. S 3. This act shall take effect immediately.

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