Clarifies the definition of "community bank institution", expands eligible deposits to a community bank institution under the community bank deposit program and requires an annual report by the state comptroller and the commissioner of taxation and finance on the efficacy of the community bank deposit program.
STATE OF NEW YORK
________________________________________________________________________
9947
IN ASSEMBLY
February 27, 2020
___________
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 on 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
22 participation in the program. Such criteria may include an institution's
23 loan to deposit ratio, its record of small business lending, and the
24 impact such deposits would have on an area's economic activity. [2. A
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14970-01-0
A. 9947 2
1 federal bank, trust company, savings bank or savings and loan associ-
2 ation may also be eligible to receive deposits, or to renew existing
3 deposits, under this program if: (a) its principal office is located in
4 this state; (b) it has a current CRA rating of satisfactory or better;
5 and (c) it meets any additional criteria established by the comptroller
6 and the commissioner of taxation and finance to determine eligibility
7 for participation in the program. Such criteria may include an insti-
8 tution's loan to deposit ratio, its record of small business lending,
9 and the impact such deposits would have on an area's economic activity.]
10 § 2. Subdivision 2 of section 87 of the banking law, as amended by
11 chapter 495 of the laws of 2013, is amended and a new subdivision 5 is
12 added to read as follows:
13 2. The maximum amount of funds which the state comptroller and the
14 commissioner of taxation and finance may deposit under this program
15 shall not exceed [two] three hundred [fifty] million dollars each. [The
16 maximum amount of funds on deposit at a community banking institution
17 shall not exceed twenty million dollars.]
18 5. The comptroller and the commissioner of taxation and finance shall
19 annually submit a joint report to the governor, the temporary president
20 of the senate, the speaker of the assembly, the chair of the senate
21 finance committee, the chair of the assembly ways and means committee,
22 the chair of the senate standing committee on banks, and the chair of
23 the assembly standing committee on banks on the efficacy of the communi-
24 ty bank deposit program, including information on the number of quali-
25 fied community banking institutions, the number of community banking
26 institutions which have received deposits, the size of each participat-
27 ing community bank, the number and amount of such deposits and the
28 percentage of total state funds deposited in such institutions under
29 this program.
30 § 3. This act shall take effect on the one hundred twentieth day after
31 it shall have become a law. Effective immediately the addition, amend-
32 ment and/or repeal of any rule or regulation necessary for the implemen-
33 tation of this act on its effective date are authorized to be made and
34 completed on or before such date.
