2010 New York Code
BNK - Banking
Article 2 - (10 - 45) BANKING DEPARTMENT; SUPERINTENDENT OF BANKS; SUPERVISORY AND REGULATORY POWERS
14 - Powers of the banking board.

§ 14.  Powers of the banking board. 1. For the purpose of effectuating
  the policy declared in section ten of this article,  the  banking  board
  shall  have  power,  by a three-fifths vote of all its members, to make,
  alter and amend resolutions, rules and regulations not inconsistent with
  law. Such rules, regulations and resolutions shall  be  brought  to  the
  attention  of those affected thereby in a manner to be prescribed by the
  board. Without limiting the foregoing power,  resolutions  or  rules  or
  regulations may be so adopted for the following specific purposes:
    (a)  To approve organization certificates and articles of association,
  private bankers' certificates and applications of  foreign  corporations
  for  licenses  to  do  business  in  this  state, submitted to it by the
  superintendent as provided in this article.
    (b) To determine the purposes  for  which  and  the  extent  to  which
  capital  notes  or debentures shall be considered and treated as capital
  stock  of  corporate  banking  organizations;  but  capital   notes   or
  debentures  shall  not be considered or treated as capital stock for the
  purposes of sections one hundred ten and  one  hundred  eleven  of  this
  chapter.
    (c) To grant permission to a trust company, including a national bank,
  to  establish  one or more common trust funds upon application and after
  inquiry concerning the qualifications of such trust company to  maintain
  and  manage  the same, and to regulate the conduct and management of any
  common trust fund and for such purpose, but not by way of limitation  of
  the  foregoing  power,  to  prescribe (1) the records and accounts to be
  kept of such common trust funds; (2) the procedure  to  be  followed  in
  adding  moneys  to  or  withdrawing  moneys or investments from any such
  common trust fund; (3) the methods  and  standards  to  be  employed  in
  determining  the  value of such common trust funds and of the assets and
  investments thereof; (4) the maximum amount of  moneys  of  any  estate,
  trust  or  fund  which may be invested in any common trust fund; and (5)
  the maximum proportionate share of any such common trust fund which  may
  be apportioned to any estate, trust or fund; and in connection with such
  powers  to classify the corporations maintaining such common trust funds
  according to the population of the city, town or village  in  which  the
  principal  offices  of such corporations are respectively located and to
  prescribe the minimum total of  any  such  common  trust  fund  and  the
  permissible  limits  of  investment  therein  in  accordance  with  such
  classification.
    (cc) To approve the incorporation by or on behalf of  trust  companies
  and  national  banks  with  trust  powers  of  a mutual trust investment
  company to form a medium for the common  investment  of  funds  held  by
  trust   companies,   including  national  banks,  acting  as  executors,
  administrators,  guardians,  inter-vivos  or  testamentary  trustees  or
  committees   or   conservators   either   alone   or   with   individual
  co-fiduciaries, and any amendments of the certificate  of  incorporation
  of such mutual trust investment company, and to regulate the conduct and
  management of such mutual trust investment company and for such purpose,
  but  not  by  way of limitation of the foregoing power, to prescribe (1)
  the records and accounts to be kept  by  such  mutual  trust  investment
  company;  (2)  the procedure to be followed in the sale or redemption of
  stocks or shares therein; (3) the methods and standards to  be  employed
  in  determining  the value of such shares in the mutual trust investment
  company and the assets and investments  thereof;  and  (4)  the  maximum
  proportionate  shares  of any such mutual trust investment company which
  may be apportioned or sold to any one trust company or national bank.
    (d) To authorize a bank or a trust company to invest  in  the  capital
  stock of, or any other equity interest in, any corporation, partnership,
  unincorporated  association,  limited liability company, or other entity

not  included  among  the  corporations  or  other  entities  for  which
  investment  in  the  capital stock or other equity interest is expressly
  authorized by this chapter.
    (e)  To  authorize  a  savings  bank  to  invest in the capital stock,
  capital notes and debentures of a trust company or other corporation, as
  provided in article six of this chapter.
    (f) To authorize a savings and  loan  association  to  invest  in  the
  capital  stock, capital notes and debentures of a trust company or other
  corporation, as provided in article ten of this chapter.
    (g) To prescribe from time to time: (1) the rates  of  interest  which
  may  be  paid  on  deposits  with  any banking organization and with any
  branch or agency of a foreign banking corporation; and (2) the rates  of
  dividends  which  may  be  paid  on  shares  of  any  savings  and  loan
  association or credit  union,  and  to  prohibit  the  payment  of  such
  interest  or such dividends by any banking organization or by any branch
  of  a  foreign  banking  corporation.  Interest  or  dividend  rates  so
  prescribed need not be uniform.
    (h)  To  limit and regulate withdrawals of deposits or shares from any
  banking organization, if the board shall find that such  limitation  and
  regulation  are  necessary  because  of  the  existence  of  unusual and
  extraordinary circumstances. The board shall enter such finding  on  its
  records.
    (i)  To  prescribe  from  time to time reserves against deposits to be
  maintained by banks and trust companies pursuant  to  article  three  of
  this  chapter; provided that no reserve requirement imposed by the board
  against either time or demand deposits shall require any bank  or  trust
  company to maintain total reserves in an amount greater than it would be
  required  to  maintain  if  it  were at the time a member of the federal
  reserve system; and provided further, however,  that  a  bank  or  trust
  company  not a member of the federal reserve system may be authorized by
  the board to maintain total reserves against deposits in an amount lower
  than the reserves required by  article  three  of  this  chapter  to  be
  maintained,  either in individual cases or by general regulations of the
  board on such basis as the board may deem reasonable or  appropriate  in
  view  of  the character of the business transacted by such bank or trust
  company.
    (ii) To exempt from reserve requirements prescribed by or pursuant  to
  this  chapter  deposits  payable  to  the  United  States by any banking
  organization arising solely as a result  of  subscriptions  made  by  or
  through  any  such  banking  organization  for  United States government
  securities issued under the authority of the second liberty bond act  as
  amended.
    (j) To grant permission to officers, directors, clerks or employees of
  banks   and   trust   companies  to  engage  in  the  issue,  flotation,
  underwriting, public sale or distribution at  wholesale  or  retail,  or
  through  syndicate  participation  of  stocks,  bonds  or  other similar
  securities, and to revoke such permission,  both  as  provided  in  this
  chapter.
    (k)  To  prescribe  the methods and standards to be used (1) in making
  the examinations provided for in this chapter, and (2)  in  valuing  the
  assets of banking organizations.
    (l)  To  prescribe  the  form  and  contents  of periodical reports of
  condition  to  be  rendered  to  the  superintendent  by  banks,   trust
  companies, private bankers and branches of foreign banking corporations,
  and the manner of publication of such reports.
    (m)  To  postpone  or  omit  the  calling for and rendering of reports
  provided for  by  this  chapter  if  the  board  shall  find  that  such
  postponement  or  omission  is  necessary  because  of  the existence of

unusual and extraordinary circumstances.  The  board  shall  enter  such
  finding on its records.
    (n)  To  define what is an unsafe manner of conducting the business of
  banking organizations.
    (o) To define what  is  a  safe  or  unsafe  condition  of  a  banking
  organization.
    (p) To make variations from the requirements of this chapter, provided
  such  variations are in harmony with the spirit of the law, if the board
  shall find that such variations are necessary because of  the  existence
  of  unusual  and extraordinary circumstances. The board shall enter such
  finding on its records.
    (q) To establish safe and sound methods of banking and  safeguard  the
  interests   of  depositors,  creditors,  shareholders  and  stockholders
  generally in times of emergency.
    (qq) To permit any banking organization, national banking association,
  federal mutual savings bank, federal savings and  loan  association  and
  federal  credit  union  to offer graduated payment mortgages which shall
  conform to the provisions of section two  hundred  seventy-nine  of  the
  real property law.
    (s)  To  permit  authorized lenders, as defined by section two hundred
  eighty or two hundred eighty-a  of  the  real  property  law,  to  offer
  reverse  mortgage loans which shall conform to the provisions of section
  two hundred eighty or two hundred eighty-a of the real property law.
    (t) To exercise any other power conferred upon the board by law.
    2. The board shall consider and make recommendations upon  any  matter
  which  the superintendent may submit to it for recommendations, and pass
  upon  and  determine  any  matter  which  he  shall  submit  to  it  for
  determination.
    3.  The  board  shall  submit  to the superintendent proposals for any
  amendments to this chapter which it deems desirable.