STATE OF NEW YORK
________________________________________________________________________
10181--A
IN ASSEMBLY
March 22, 2018
___________
Introduced by M. of A. SEPULVEDA -- read once and referred to the
Committee on Banks -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the banking law, in relation to assessment of the record
of performance of banking institutions in helping to meet the credit
needs of local communities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 3 and 4 of section 28-b of the banking law,
2 subdivision 3 as amended by chapter 315 of the laws of 2008, the opening
3 paragraph and paragraph 12 of paragraph (a) of subdivision 3 as amended
4 by chapter 227 of the laws of 2013 and subdivision 4 as amended by chap-
5 ter 180 of the laws of 2012, are amended and a new subdivision 5-a is
6 added to read as follows:
7 3. (a) When taking any action on an application or notice made by a
8 banking institution under (i) section one hundred five, two hundred
9 twenty-four, two hundred forty, or three hundred ninety-six of this
10 chapter for a branch office, (ii) section one hundred ninety-one of this
11 chapter for a public accommodation office, (iii) section six hundred
12 one-b of this chapter for approval of a merger or purchase of assets, or
13 (iv) under section one hundred five-a, two hundred forty-a or three
14 hundred ninety-six-a of this chapter for the use or installation of an
15 automated teller machine, point-of-sale terminal or similar electronic
16 facility or on any other application or notice to which the superinten-
17 dent of financial services shall by rule or regulation make applicable
18 the provisions of this section, the superintendent shall take into
19 account, among other factors, an assessment, in writing, of the record
20 of performance of the banking institution in helping to meet the credit
21 needs of its entire community, including low and moderate-income neigh-
22 borhoods and minority- and women-owned businesses, consistent with safe
23 and sound operation of the banking institution. Such assessment and any
24 written communications from the department of financial services to a
25 banking institution relating to such assessment shall be made available
26 to the public upon request, provided that nothing contained in this
27 subdivision shall be deemed to alter, amend or affect the provisions of
28 subdivision ten of section thirty-six of this chapter. In making such
29 assessment the superintendent shall review all reports and documents
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15042-03-8
A. 10181--A 2
1 filed pursuant to subdivision one of this section and any signed, writ-
2 ten comments received by the superintendent which specifically relate to
3 the banking institution's performance in helping to meet the credit
4 needs of its community. In addition, the superintendent shall consider
5 the following factors in assessing a banking institution's record of
6 performance:
7 (1) Activities conducted by the banking institution to ascertain cred-
8 it needs of its community, including the extent of the banking insti-
9 tution's efforts to communicate with members of its community regarding
10 the credit services being provided by the banking institution;
11 (2) The extent of the banking institution's marketing and special
12 credit-related programs to make members of the community aware of the
13 credit services offered by the banking institution;
14 (3) The extent of participation by the banking institution's board of
15 directors or board of trustees in formulating the banking institution's
16 policies and reviewing its performance with respect to the purposes of
17 the Community Reinvestment Act of 1977;
18 (4) Any practices intended to discourage application for types of
19 credit set forth in the banking institution's Community Reinvestment Act
20 Statement(s);
21 (5) The geographic distribution of the banking institution's credit
22 extensions, credit applications and credit denials;
23 (6) Evidence of prohibited discriminatory or other illegal credit
24 practices;
25 (7) The banking institution's record of opening and closing offices
26 and providing services at offices;
27 (8) The banking institution's participation, including investments, in
28 local community development and redevelopment projects or programs and
29 in technical assistance programs for small businesses and minority- and
30 women-owned businesses;
31 (9) The banking institution's origination of residential mortgage
32 loans, housing rehabilitation loans, home improvement loans and small
33 business or small farm or minority- and women-owned business loans with-
34 in its community or the purchase of such loans originated in its commu-
35 nity;
36 (9-a) The banking institution's efforts to assist low and moderate
37 income residents to be able to remain in affordable housing in their
38 neighborhoods;
39 (10) The banking institution's participation in governmentally-in-
40 sured, guaranteed or subsidized loan programs for housing, small busi-
41 nesses or small farms;
42 (11) The banking institution's ability to meet various community cred-
43 it needs based on its financial condition, size, legal impediments,
44 local economic condition and other factors;
45 (11-a) The geographic distribution, availability and use of automated
46 teller machines, point-of-sale terminals, personal computer banking,
47 debit cards or similar electronic facilities or services; and any train-
48 ing of customers thereon among every branch of the banking institution,
49 if the institution offers such services to any of its customers; and
50 (12) Other factors that, in the judgment of the superintendent,
51 reasonably bear upon the extent to which a banking institution is help-
52 ing to meet the credit needs of its entire community, including, without
53 limitation, the banking institution's participation in credit counseling
54 services.
55 (b) In assessing the record of performance of a banking institution
56 pursuant to the provisions of paragraph (a) of this subdivision, the
A. 10181--A 3
1 superintendent may, where he or she deems it appropriate, provide for
2 public hearings when an objection to the banking institution's applica-
3 tion or notification has been submitted.
4 (c) An assessment of a banking institution's record of performance
5 under paragraph (a) of this subdivision may be the basis for denying an
6 application or notice under the provisions of this section.
7 (d) When taking any action pursuant to paragraph (a) of this subdivi-
8 sion, the superintendent shall request from the applicant or notificant
9 banking institution and from the appropriate federal bank regulatory
10 authorities any documents, other than those required to be filed with
11 the superintendent by this section or by other applicable statutes or
12 regulations, which are (1) filed with the federal bank regulatory
13 authorities in connection with the application or notice or (2) produced
14 by the applicant or notificant banking institution or others in
15 connection with the application or notice.
16 4. Notwithstanding any other provision of this chapter or other law to
17 the contrary, the term banking institution when used in this section
18 shall mean and include all banks, trust companies, savings banks,
19 savings and loan associations, credit unions, licensed mortgage bankers
20 or license mortgage loan originators that have made one hundred or more
21 home mortgage loans in New York state in the last calendar year, invest-
22 ment banks and foreign banking corporations incorporated, chartered,
23 organized or licensed under the laws of this state. In the case of a
24 foreign banking corporation licensed pursuant to this article and main-
25 taining a branch in this state, the management of the branch shall
26 establish a committee of not fewer than three officers to function in
27 the role of a board of directors for purposes of this section.
28 5-a. In addition to the public notice required under federal CRA, each
29 bank shall provide in the public lobby of its main office and each of
30 its branches in this state a public notice substantially similar to the
31 following:
32 STATE OF NEW YORK
33 COMMUNITY REINVESTMENT NOTICE
34 The banking superintendent evaluates our record of helping to meet the
35 credit needs of this community consistent with safe and sound oper-
36 ations. The banking superintendent also takes this record into account
37 when deciding on certain applications submitted by us.
38 Your involvement is encouraged.
39 In addition to the information that you are entitled to receive under
40 the federal Community Reinvestment Act, as listed in the "Community
41 Reinvestment Act Notice" posted in this lobby, you may review today the
42 public section of our most recent community reinvestment performance
43 evaluation prepared by the superintendent.
44 You may send written comments about our performance in helping to meet
45 community credit needs to the superintendent (address). Your letter,
46 together with any response by us, will be considered by the superinten-
47 dent in evaluating our community reinvestment performance and may be
48 made public.
49 You may ask to look at any comments received by the superintendent.
50 § 2. This act shall take effect on the one hundred twentieth day after
51 it shall have become a law. Effective immediately, the addition, amend-
52 ment and/or repeal of any rules or regulations necessary for the imple-
53 mentation of the foregoing section of this act on its effective date are
54 authorized to be made on or before such effective date.