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.

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S6952A-2011 Actions

• Jun 18, 2012: referred to banks
• Jun 18, 2012: DELIVERED TO ASSEMBLY
• Jun 18, 2012: PASSED SENATE
• Jun 4, 2012: AMENDED ON THIRD READING 6952A
• May 31, 2012: ADVANCED TO THIRD READING
• May 30, 2012: 2ND REPORT CAL.
• May 23, 2012: 1ST REPORT CAL.899
• Apr 16, 2012: REFERRED TO BANKS

S6952A-2011 Calendars

Active List: Jun 18, 2012 , Floor Calendar: Jun 5, 2012 , Floor Calendar: Jun 6, 2012 , Floor Calendar: Jun 11, 2012 , Floor Calendar: Jun 12, 2012 , Floor Calendar: Jun 13, 2012 , Floor Calendar: Jun 14, 2012 , Floor Calendar: Jun 18, 2012

S6952A-2011 Votes

S6952A-2011 Memo

BILL NUMBER:S6952A

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.

SUMMARY OF PROVISIONS:
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 record keeping and
communication.

The activities and operations of various types of banking institutions
and non-bank 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 cost-effective 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-g


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.

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:

The ninetieth day after it shall have become law.

S6952A-2011 Text

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

                                   6952--A
      Cal. No. 899

                              I N  SENATE

                               April 16, 2012
                                 ___________

  Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
    printed to be committed to the Committee on Banks -- reported  favora-
    bly  from  said committee, ordered to first and second report, ordered
    to a third reading, amended and ordered reprinted, retaining its place
    in the order of third reading

  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

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD15325-02-2

 S. 6952--A                          2

  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.