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A02962 Summary:

BILL NOA02962
 
SAME ASNo Same As
 
SPONSORZebrowski
 
COSPNSRBurdick
 
MLTSPNSR
 
Amd §§86 & 87, Bank L
 
Clarifies the definition of "community bank institution"; expands eligible deposits to a community bank institution under the community bank deposit program; requires an annual report by the state comptroller and the commissioner of taxation and finance of the efficacy of the community bank deposit program.
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A02962 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2962
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 1, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
          Committee on Banks
 
        AN ACT to amend the banking law, in relation  to  clarifying  the  defi-
          nition of "community bank institution", expanding eligible deposits to
          a  community bank institution under the community bank deposit program
          and requiring an annual  report  by  the  state  comptroller  and  the
          commissioner  of taxation and finance on the efficacy of the community
          bank deposit program
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 86 of the banking law, as amended by chapter 274 of
     2  the laws of 2007, is amended to read as follows:
     3    § 86. Eligibility. 1. For purposes of this article, the term "communi-
     4  ty bank institution" shall mean any state or federally chartered banking
     5  institution  and  shall include any bank, trust company, savings bank or
     6  savings and loan association with  less  than  ten  billion  dollars  in
     7  assets  that is headquartered in this state and whose predominant retail
     8  and commercial banking operations serve residents and businesses of this
     9  state, as determined by the superintendent in his or her sole discretion
    10  and pursuant to such rules and regulations as the  superintendent  deems
    11  necessary to implement and administer these provisions.
    12    2.  To  be eligible to receive deposits, or to renew existing deposits
    13  under this program, a [bank, trust company, savings bank or savings  and
    14  loan  association:  (a)  must  be chartered under the provisions of this
    15  chapter and (b)] community bank institution:
    16    (a) must have a current CRA rating  of  satisfactory  or  better.  The
    17  superintendent  shall,  if  requested  by  the  state comptroller or the
    18  commissioner of taxation and finance, confirm whether a particular bank-
    19  ing institution meets the criteria specified in this section; and
    20    (b) meet any additional criteria established by  the  comptroller  and
    21  the  commissioner  of  taxation and finance to determine eligibility for
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00456-01-3

        A. 2962                             2
 
     1  participation in the program. Such criteria may include an institution's
     2  loan to deposit ratio, its record of small  business  lending,  and  the
     3  impact such deposits would have on an area's economic activity.
     4    [2.  A  federal  bank, trust company, savings bank or savings and loan
     5  association may also be eligible to receive deposits, or to renew exist-
     6  ing deposits, under this program if: (a) its principal office is located
     7  in this state; (b) it has  a  current  CRA  rating  of  satisfactory  or
     8  better;  and  (c)  it  meets  any additional criteria established by the
     9  comptroller and the commissioner of taxation and  finance  to  determine
    10  eligibility  for participation in the program. Such criteria may include
    11  an institution's loan to deposit ratio, its  record  of  small  business
    12  lending,  and  the impact such deposits would have on an area's economic
    13  activity.]
    14    § 2. Subdivision 2 of section 87 of the banking  law,  as  amended  by
    15  chapter  495  of the laws of 2013, is amended and a new subdivision 5 is
    16  added to read as follows:
    17    2. The maximum amount of funds which the  state  comptroller  and  the
    18  commissioner  of  taxation  and  finance  may deposit under this program
    19  shall not exceed [two] three hundred [fifty] million dollars each.  [The
    20  maximum  amount  of  funds on deposit at a community banking institution
    21  shall not exceed twenty million dollars.]
    22    5. The comptroller and the commissioner of taxation and finance  shall
    23  annually  submit a joint report to the governor, the temporary president
    24  of the senate, the speaker of the assembly,  the  chair  of  the  senate
    25  finance  committee,  the chair of the assembly ways and means committee,
    26  the chair of the senate standing committee on banks, and  the  chair  of
    27  the assembly standing committee on banks on the efficacy of the communi-
    28  ty  bank  deposit program, including information on the number of quali-
    29  fied community banking institutions, the  number  of  community  banking
    30  institutions  which have received deposits, the size of each participat-
    31  ing community bank, the number and  amount  of  such  deposits  and  the
    32  percentage  of  total  state  funds deposited in such institutions under
    33  this program.
    34    § 3. This act shall take effect on the one hundred twentieth day after
    35  it shall have become a law. Effective immediately the  addition,  amend-
    36  ment and/or repeal of any rule or regulation necessary for the implemen-
    37  tation  of  this act on its effective date are authorized to be made and
    38  completed on or before such date.
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