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Who cares
Headline styles
Sponsors
1 Co-sponsor
History
- Substituted by A8156
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1059
- Print number 4612a
- Amend and recommit to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the exercise of federally permitted powers by a state chartered banking institution
Signed by Governor · Sponsor Rory Lancman
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4612A
Title of bill
An act to amend the banking law, in relation to the exercise of federally permitted powers by a state chartered banking institution
Purpose
To expedite the consideration of wild card applications by mandating that properly submitted applications be posted on the Department's website and made available for public consideration within 120 days of their receipt and requiring the superintendent to notify applicants within 10 days of making a decision.
Summary of provisions
Section one of the bill amends subdivision 3 of section 12-a of the banking law to mandate that wild card applications be reviewed and posted on the Department's website and made available for public consideration within 120 days of their receipt and requiring the superintendent to notify applicants within 10 days of making a decision on the request. The superintendent's failure to comply with the posting and notice provisions will allow an applicant to petition the superintendent to act on the application. The subsequent failure of the superintendent to act within 30 days of a petition shall be deemed denial of the application with an opportunity for the applicant to appeal. Currently, there is no deadline by which applications have to be posted or when applicants need to be notified.
Justification
New York banking law authorizes state-chartered credit unions and banks to apply to the Banking Department for permission to exercise the same powers as their federally chartered counterparts. This power is critical to the state, as it give state-chartered institutions the ability to exercise the same power as federally chartered institutions while still maintaining state-charter status. Consumers receive the benefit of financial institutions being able to offer more services, and the state retains the money it gains from state-chartered institutions and the ability to engage in continued regulation of the financial industry.
Unfortunately, in spite of the importance of this power, its implementation has provided no benefits to credit unions. Credit unions seeking to exercise their wild card powers have seen their applications delayed to the point where they are not even considered. The amendments made by this bill will make wild card powers a truly useful instrument for all state-chartered financial institutions. By mandating that applications made by either a bank or credit union be reviewed in 30 days, credit unions will no longer be faced with endless delays in the official consideration of wild card proposals.
Legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately after enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.