Makes technical corrections to the banking law

BILL NUMBER:S4350A

Title of bill

An act to amend the banking law, in relation to making certain technical corrections thereto

Purpose

To make technical corrections and fix certain inconsistencies in the Banking Law resulting from the elimination of the Banking Board.

Summary of provisions

This bill makes technical amendments to several sections of the Banking Law.

Sections 1, 3 and 13 of the bill delete duplicative references to the Superintendent of Financial Services - these sections had previously referred to both the Superintendent and the Banking Board.

Sections 6 and 9 of the bill delete references to a 3/5ths vote of the Superintendent - these sections had previously referred to a 3/5ths vote of the Banking Board.

Sections 2, 4, 5, 7, 8, 10, 11, 12 and 14 of the bill change or delete references to "it" or "its," which had previously referred to the Board but now incorrectly refer to the Superintendent.

Justification

This bill makes several technical amendments to the Banking Law. These amendments will clean up and clarify some inconsistencies which arose as a result of the elimination of the State Banking Board.

As part of the 2011 State Budget, legislation was enacted to merge the Banking Department and the Insurance Department into a new agency, the Department of Financial Services. This legislation also repealed the existence of the State Banking Board, which had consisted of the Superintendent of Banks and 16 appointed members. The Board had been responsible for chartering banking institutions, licensing foreign bank branches and agencies, approving bank mergers and acquisitions, and promulgating regulations governing many bank activities. In accordance with the merger legislation, these powers became vested solely with the Superintendent of Financial Services.

The 2011 law repealed the authorization for the Banking Board and made conforming amendments in some sections of the Banking Law. For many other sections, the law directed the Legislative Bill Drafting Commission to simply replace certain references in State law. For example, references to the Superintendent of Banks were to be changed to the Superintendent of Financial Services. Also, because the bill eliminated the Banking Board, references to the Banking Board were to be changed to the Superintendent.

However, these changes resulted in some duplication and inconsistencies in the law. For example, a few sections of law which previously referred to both the Superintendent and the Banking Board now refer to the Superintendent and the Superintendent. A few sections

which referred to a 3/5ths vote of the Board now refer to a 3/5ths vote of the Superintendent. There are also several uses of the word "it" or "its" which had been used in relation to the Board, but which are now used incorrectly in relation to the Superintendent.

This bill would make necessary technical corrections to the Banking Law to address these inconsistencies.

Fiscal implications

None.

Effective date

Immediately.