Requires inclusion and explanation of additional annual data in assessing record of performance of banking institutions in meeting community credit needs; additional data includes but is not limited to: loans for housing low and moderate-income residents of low and moderate income areas, the scope of efforts to market housing and small business loans in low and moderate-income areas and other data.
STATE OF NEW YORK
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6236
IN SENATE(Prefiled)
January 6, 2016
___________
Introduced by Sen. HAMILTON -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
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. The opening paragraph of paragraph (a) of subdivision 3 of
2 section 28-b of the banking law, as amended by chapter 227 of the laws
3 of 2013, is amended to read as follows:
4 When taking any action on an application or notice made by a banking
5 institution under (i) section one hundred five, two hundred twenty-four,
6 two hundred forty, or three hundred ninety-six of this chapter for a
7 branch office, (ii) section one hundred ninety-one of this chapter for a
8 public accommodation office, (iii) section six hundred one-b of this
9 chapter for approval of a merger or purchase of assets, or (iv) under
10 section one hundred five-a, two hundred forty-a or three hundred nine-
11 ty-six-a of this chapter for the use or installation of an automated
12 teller machine, point-of-sale terminal or similar electronic facility or
13 on any other application or notice to which the superintendent of finan-
14 cial services shall by rule or regulation make applicable the provisions
15 of this section, the superintendent shall take into account, among other
16 factors, an assessment, in writing, of the record of performance of the
17 banking institution in helping to meet the credit needs of its entire
18 community, including low and moderate-income neighborhoods, consistent
19 with safe and sound operation of the banking institution. Such assess-
20 ment shall include a separate discussion of the record of the banking
21 institution pertaining to each of the assessment factors listed in all
22 of the subparagraphs of this paragraph and a complete explanation of how
23 each of these factors was considered by the department in making the
24 assessment. This explanation shall include, but not be limited to, annu-
25 al data for the institution as follows: loans for housing low and moder-
26 ate-income residents of low and moderate-income areas, and the scope of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00886-01-5
S. 6236 2
1 efforts to market housing and small business loans in low and moderate-
2 income areas; the amount of loans to farms, and loans to small busi-
3 nesses that provide services to low and moderate-income residents of low
4 and moderate-income areas; financial investments in and contributions to
5 nonprofit local community development or redevelopment projects or enti-
6 ties; manpower resources committed to low and moderate-income housing
7 lending and small business lending and other forms of administrative
8 support for such lending; and participation in governmentally or
9 privately sponsored loan insurance, guarantee or subsidy programs for
10 housing, small businesses and small farms. Such assessment and explana-
11 tion and any written communications from the department of financial
12 services to a banking institution relating to such assessment and expla-
13 nation shall be made available to the public upon request, provided that
14 nothing contained in this subdivision shall be deemed to alter, amend or
15 affect the provisions of subdivision ten of section thirty-six of this
16 chapter. In making such assessment and explanation, the superintendent
17 shall review all reports and documents filed with him or her pursuant to
18 subdivision one of this section and any signed, written comments
19 received by the superintendent which specifically relate to the banking
20 institution's performance in helping to meet the credit needs of its
21 community. In addition, the superintendent shall consider the following
22 factors in assessing and explaining a banking institution's record of
23 performance:
24 § 2. This act shall take effect on the one hundred twentieth day after
25 it shall have become a law. Effective immediately, the addition, amend-
26 ment and/or repeal of any rules or regulations necessary for the imple-
27 mentation of the foregoing section of this act on its effective date are
28 authorized to be made on or before such effective date.
