2006 New York Code - 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 rules and regulations not inconsistent  with  law.  Such
  rules  and  regulations  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,   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 a corporation  not  included  among  the  corporations  in  the
  capital  stock  of  which  investment  is  expressly  authorized by this
  chapter.
    (e)  To  authorize  a  savings  bank  to  invest in the capital stock,
  capital notes and debentures of and to transfer  property  to,  a  trust
  company  or  other  corporation,  as  provided  in  article  six of this
  chapter.
    (ee) To authorize a savings and loan  association  to  invest  in  the
  capital  stock, capital notes and debentures of and to transfer property
  to, a trust company or other corporation, as provided in article ten  of
  this chapter.
    (f) To authorize savings banks to invest in corporate interest bearing
  obligations  not otherwise eligible for investment, provided application
  for such authorization shall have been made  by  not  less  than  twenty
  savings banks or by a trust company all of the capital stock of which is
  owned  by  not  less  than  twenty savings banks. Any authorization made
  pursuant to this subdivision may be revoked upon a majority vote of  all
  the members of the board.
    (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, trust companies and industrial banks  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, branches of foreign banking corporations and
  industrial banks, 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.