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A03235 Summary:

COSPNSRRodriguez, Wright, Taylor, Vanel, Fall, Perry
Amd §28-b, Bank L
Relates to assessment of the record of performance of banking institutions in helping to meet the credit needs of local communities.
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A03235 Actions:

01/29/2019referred to banks
05/30/2019advanced to third reading cal.494
06/04/2019passed assembly
06/04/2019delivered to senate
06/18/2019SUBSTITUTED FOR S3223
06/18/20193RD READING CAL.898
09/13/2019delivered to governor
09/13/2019signed chap.264
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A03235 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 29, 2019
        Introduced  by M. of A. DICKENS -- read once and referred to the Commit-
          tee 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. Subdivision 3 of  section  28-b  of  the  banking  law,  as
     2  amended  by  chapter  315 of the laws of 2008, the opening paragraph and
     3  paragraph 12 of paragraph (a) as amended by chapter 227 of the  laws  of
     4  2013, is amended to read as follows:
     5    3.  (a)  When  taking any action on an application or notice made by a
     6  banking institution under (i) section  one  hundred  five,  two  hundred
     7  twenty-four,  two  hundred  forty,  or  three hundred ninety-six of this
     8  chapter for a branch office, (ii) section one hundred ninety-one of this
     9  chapter for a public accommodation office,  (iii)  section  six  hundred
    10  one-b of this chapter for approval of a merger or purchase of assets, or
    11  (iv)  under  section  one  hundred  five-a, two hundred forty-a or three
    12  hundred ninety-six-a of this chapter for the use or installation  of  an
    13  automated  teller  machine, point-of-sale terminal or similar electronic
    14  facility or on any other application or notice to which the  superinten-
    15  dent  of  financial services shall by rule or regulation make applicable
    16  the provisions of this  section,  the  superintendent  shall  take  into
    17  account,  among  other factors, an assessment, in writing, of the record
    18  of performance of the banking institution in helping to meet the  credit
    19  needs  of its entire community, including low and moderate-income neigh-
    20  borhoods and minority- and women-owned businesses, consistent with  safe
    21  and  sound operation of the banking institution. Such assessment and any
    22  written communications from the department of financial  services  to  a
    23  banking  institution relating to such assessment shall be made available
    24  to the public upon request, provided  that  nothing  contained  in  this

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

        A. 3235                             2
     1  subdivision  shall be deemed to alter, amend or affect the provisions of
     2  subdivision ten of section thirty-six of this chapter.  In  making  such
     3  assessment  the  superintendent  shall  review all reports and documents
     4  filed  pursuant to subdivision one of this section and any signed, writ-
     5  ten comments received by the superintendent which specifically relate to
     6  the banking institution's performance in  helping  to  meet  the  credit
     7  needs  of  its community. In addition, the superintendent shall consider
     8  the following factors in assessing a  banking  institution's  record  of
     9  performance:
    10    (1) Activities conducted by the banking institution to ascertain cred-
    11  it  needs  of  its community, including the extent of the banking insti-
    12  tution's efforts to communicate with members of its community  regarding
    13  the credit services being provided by the banking institution;
    14    (2)  The  extent  of  the  banking institution's marketing and special
    15  credit-related programs to make members of the community  aware  of  the
    16  credit services offered by the banking institution;
    17    (3)  The extent of participation by the banking institution's board of
    18  directors or board of trustees in formulating the banking  institution's
    19  policies  and  reviewing its performance with respect to the purposes of
    20  the Community Reinvestment Act of 1977;
    21    (4) Any practices intended to  discourage  application  for  types  of
    22  credit set forth in the banking institution's Community Reinvestment Act
    23  Statement(s);
    24    (5)  The  geographic  distribution of the banking institution's credit
    25  extensions, credit applications and credit denials;
    26    (6) Evidence of prohibited  discriminatory  or  other  illegal  credit
    27  practices;
    28    (7)  The  banking  institution's record of opening and closing offices
    29  and providing services at offices;
    30    (8) The banking institution's participation, including investments, in
    31  local community development and redevelopment projects or  programs  and
    32  in  technical assistance programs for small businesses and minority- and
    33  women-owned businesses;
    34    (9) The banking  institution's  origination  of  residential  mortgage
    35  loans,  housing  rehabilitation  loans, home improvement loans and small
    36  business or small farm or minority- and women-owned business loans with-
    37  in its community or the purchase of such loans originated in its  commu-
    38  nity;
    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. 3235                             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    § 2. This act shall take effect on the one hundred twentieth day after
    17  it shall have become a law. Effective immediately, the addition,  amend-
    18  ment  and/or repeal of any rules or regulations necessary for the imple-
    19  mentation of the foregoing section of this act on its effective date are
    20  authorized to be made on or before such effective date.
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