There is a newer version of the New York Consolidated Laws
2006 New York Code - Banking Corporation Defined; Exempt Corporations.
§ 1452. Banking corporation defined; exempt corporations. (a) For the
purpose of this article, a banking corporation means:
(1) Every corporation or association organized under the laws of this
state which is authorized to do a banking business, or which is doing a
banking business;
(2) every corporation or association organized under the laws of any
other state or country which is doing a banking business;
(3) every national banking association organized under the authority
of the United States which is doing a banking business;
(4) every federal savings bank which is doing a banking business;
(5) every federal savings and loan association which is doing a
banking business;
(6) a production credit association organized under the federal farm
credit act of nineteen hundred thirty-three, which is doing a banking
business and all of whose stock held by the federal production credit
corporation has been retired;
(7) every other corporation or association organized under the
authority of the United States which is doing a banking business;
(8) the mortgage facilities corporation created by chapter five
hundred sixty-four of the laws of nineteen hundred fifty-six;
(9) any corporation sixty-five percent or more of whose voting stock
is owned or controlled, directly or indirectly, by a corporation or
corporations subject to article three-a of the banking law, or
registered under the federal bank holding company act of nineteen
hundred fifty-six, as amended, or registered as a savings and loan
holding company (but excluding a diversified savings and loan holding
company) under the federal national housing act, as amended, or by a
corporation or corporations described in any of the foregoing paragraphs
of this subsection, provided the corporation whose voting stock is so
owned or controlled is principally engaged in a business, regardless of
where conducted, which (i) might be lawfully conducted by a corporation
subject to article three of the banking law or by a national banking
association or (ii) is so closely related to banking or managing or
controlling banks as to be a proper incident thereto, as set forth in
paragraph eight of subsection (c) of section four of the federal bank
holding company act of nineteen hundred fifty-six, as amended; and
provided, further, that in no event shall a corporation principally
engaged in a business described in section one hundred eighty-three or
one hundred eighty-four, or section one hundred eighty-six as it was in
effect on December thirty-first, nineteen hundred ninety-nine, of this
chapter be subject to the tax imposed under this article if any of its
business receipts from such principally engaged in business are from
other than a corporation (A) which owns or controls, directly or
indirectly, sixty-five percent or more of its voting stock, or (B)
sixty-five percent or more of whose voting stock is owned or controlled,
directly or indirectly, by the corporation engaged in such business, or
(C) sixty-five percent or more of whose voting stock is owned or
controlled, directly or indirectly, by the same interest.
(b) Banking business defined. The words "banking business" as used in
this section mean such business as a corporation or association may be
created to do under article three, three-B, five, five-A, five-C, six or
ten of the banking law or any business which a corporation or
association is authorized by such article to do. However, with respect
to a national banking association organized under the authority of the
United States, a federal savings bank, a federal savings and loan
association or a production credit association, the words "banking
business" as used in this section mean such business as a national
banking association, federal savings bank, federal savings and loan
association or production credit association, respectively, may be
created to do or is authorized to do under the laws of the United States
or this state. The words "banking business" as used in this section
shall also mean such business as any corporation or association
organized under the authority of the United States or organized under
the laws of any other state or country has authority to do which is
substantially similar to the business which a corporation or association
may be created to do under article three, three-B, five, five-A, five-C,
six or ten of the banking law or any business which a corporation or
association is authorized by such article to do.
(c) Exempt corporations. A trust company all of whose capital stock is
owned by twenty or more savings banks organized under New York law shall
be exempt from the tax under this article.
(d) Corporations taxable under article nine-a. Notwithstanding the
provisions of this article, all corporations of classes now or
heretofore taxable under article nine-a of this chapter shall continue
to be taxable under article nine-a, except: (1) corporations organized
under article five-a of the banking law; (2) corporations subject to
article three-A of the banking law, or registered under the federal bank
holding company act of nineteen hundred fifty-six, as amended, or
registered as a savings and loan holding company (but excluding a
diversified savings and loan holding company) under the federal national
housing act, as amended, which make a combined return under the
provisions of subsection (f) of section fourteen hundred sixty-two; and
(3) banking corporations described in paragraph nine of subsection (a)
of section fourteen hundred fifty-two. Provided, however, that a
corporation described in paragraph three of this subsection which was
subject to the tax imposed by article nine-A of this chapter for its
taxable year ending during nineteen hundred eighty-four may, on or
before the due date for filing its return (determined with regard to
extensions) for its taxable year ending during nineteen hundred
eighty-five, make a one time election to continue to be taxable under
such article nine-A. Such election shall continue to be in effect until
revoked by the taxpayer. In no event shall such election or revocation
be for a part of a taxable year.
* (e) Corporations taxable under article thirty-three. Except for
corporations described in subsection (1) of section fourteen hundred
fifty-three, corporations liable to tax under article thirty-three shall
not be subject to tax under this article.
* NB Applies to taxable years beginning after December 31, 1986
(f) For exemption from tax of a qualified subchapter S subsidiary, see
subsection (o) of section fourteen hundred fifty-three of this article.
(g) A banking corporation organized under the laws of a country, or
any political subdivision thereof, other than the United States shall
not be deemed to be doing business in this state under this article if
its activities in this state are limited solely to (1) investing or
trading in stocks and securities for its own account within the meaning
of clause (ii) of subparagraph (A) of paragraph (2) of subsection (b) of
section eight hundred sixty-four of the internal revenue code or (2)
investing or trading in commodities for its own account within the
meaning of clause (ii) of subparagraph (B) of paragraph (2) of
subsection (b) of section eight hundred sixty-four of the internal
revenue code or (3) any combination of activities described in
paragraphs one and two of this subsection.
(h) Transitional provisions relating to the enactment and
implementation of the federal Gramm-Leach-Bliley act. (1)
Notwithstanding anything to the contrary contained in this section, a
corporation that was in existence before January first, two thousand and
was subject to tax under article nine-A of this chapter for its last
taxable year beginning before January first, two thousand, shall
continue to be taxable under article nine-A for all taxable years
beginning on or after January first, two thousand and before January
first, two thousand one. The preceding sentence shall not apply to any
taxable year during which such corporation is a banking corporation
described in paragraphs one through eight of subsection (a) of this
section. Notwithstanding anything to the contrary contained in this
section, a banking corporation that was in existence before January
first, two thousand and was subject to tax under this article for its
last taxable year beginning before January first, two thousand, shall
continue to be taxable under this article for all taxable years
beginning on or after January first, two thousand and before January
first, two thousand one. Provided, however, that nothing in this
subsection shall prohibit a corporation that elected pursuant to
subsection (d) of this section to be taxable under article nine-A of
this chapter from revoking that election in accordance with such
subsection (d).
For purposes of this paragraph, a corporation shall be considered to
be subject to tax under article nine-A of this chapter for a taxable
year if such corporation was not a taxpayer but was properly included in
a combined report filed pursuant to section two hundred eleven of this
chapter for such taxable year and a corporation shall be considered to
be subject to tax under this article for a taxable year if such
corporation was not a taxpayer but was properly included in a combined
return filed pursuant to subsection (f) or (g) of section fourteen
hundred sixty-two of this article for such taxable year. A corporation
that was in existence before January first, two thousand but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand and before January first, two thousand one, shall be
considered for purposes of this paragraph to have been subject to tax
under article nine-A of this chapter for its last taxable year beginning
before January first, two thousand if such corporation would have been
subject to tax under such article for such taxable year if it had been a
taxpayer during such taxable year. A corporation that was in existence
before January first, two thousand but first becomes a taxpayer in a
taxable year beginning on or after January first, two thousand and
before January first, two thousand one, shall be considered for purposes
of this paragraph to have been subject to tax under this article for its
last taxable year beginning before January first, two thousand if such
corporation would have been subject to tax under this article for such
taxable year if it had been a taxpayer during such taxable year.
(2) Notwithstanding anything to the contrary contained in this
section, a corporation formed on or after January first, two thousand
and before January first, two thousand one may elect to be subject to
tax under this article or under article nine-A of this chapter for its
first taxable year beginning on or after January first, two thousand and
before January first, two thousand one in which either (i) sixty-five
percent or more of its voting stock is owned or controlled, directly or
indirectly by a financial holding company, provided the corporation
whose voting stock is so owned or controlled is principally engaged in
activities that are described in section 4(k)(4) or 4(k)(5) of the
federal bank holding company act of nineteen hundred fifty-six, as
amended and the regulations promulgated pursuant to the authority of
such section, or (ii) it is a financial subsidiary. An election under
this paragraph may not be made by a corporation described in paragraphs
one through eight of subsection (a) of this section or in subsection (e)
of this section. In addition, an election under this paragraph may not
be made by a corporation that is a party to a reorganization, as defined
in subsection (a) of section 368 of the internal revenue code of 1986,
as amended, of a corporation described in paragraph one of this
subsection if both corporations were sixty-five percent or more owned or
controlled, directly or indirectly, by the same interests at the time of
the reorganization.
An election under this paragraph must be made by the taxpayer on or
before the due date for filing its return (determined with regard to
extensions of time for filing) for the applicable taxable year. The
election to be taxed under article nine-A of this chapter shall be made
by the taxpayer by filing the report required pursuant to section two
hundred eleven of this chapter and the election to be taxed under this
article shall be made by the taxpayer by filing the return required
pursuant to section fourteen hundred sixty-two of this article. Any
election made pursuant to this paragraph shall be irrevocable and shall
apply to each subsequent taxable year beginning on or after January
first, two thousand and before January first, two thousand one, provided
that the stock ownership requirements described in subparagraph (i) of
this paragraph are met or such corporation described in subparagraph
(ii) of this paragraph continues as a financial subsidiary.
(3) For purposes of this section, a financial subsidiary means a
corporation (i) sixty-five percent or more of whose voting stock is
owned or controlled, directly or indirectly by a banking corporation
described in paragraph one, two or three of subsection (a) of this
section and (ii) is described in section 5136A(g) of the revised
statutes of the United States or section 46 of the federal deposit
insurance act. For purposes of this article, the term "banking
corporation" shall include a corporation electing to be taxed under this
article pursuant to paragraph two of this subsection for so long as such
election shall be in effect.
(i) Transitional provisions relating to the enactment and
implementation of the federal Gramm-Leach-Bliley act. (1)
Notwithstanding anything to the contrary contained in this section, a
corporation that was in existence before January first, two thousand one
and was subject to tax under article nine-A of this chapter for its last
taxable year beginning before January first, two thousand one, shall
continue to be taxable under article nine-A for all taxable years
beginning on or after January first, two thousand one and before January
first, two thousand three. The preceding sentence shall not apply to
any taxable year during which such corporation is a banking corporation
described in paragraphs one through eight of subsection (a) of this
section. Notwithstanding anything to the contrary contained in this
section, a banking corporation that was in existence before January
first, two thousand one and was subject to tax under this article for
its last taxable year beginning before January first, two thousand one,
shall continue to be taxable under this article for all taxable years
beginning on or after January first, two thousand one and before January
first, two thousand three. Provided, however, that nothing in this
subsection shall prohibit a corporation that elected pursuant to
subsection (d) of this section to be taxable under article nine-A of
this chapter from revoking that election in accordance with such
subsection (d).
For purposes of this paragraph, a corporation shall be considered to
be subject to tax under article nine-A of this chapter for a taxable
year if such corporation was not a taxpayer but was properly included in
a combined report filed pursuant to section two hundred eleven of this
chapter for such taxable year and a corporation shall be considered to
be subject to tax under this article for a taxable year if such
corporation was not a taxpayer but was properly included in a combined
return filed pursuant to subsection (f) or (g) of section fourteen
hundred sixty-two of this article for such taxable year. A corporation
that was in existence before January first, two thousand one but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand one and before January first, two thousand three,
shall be considered for purposes of this paragraph to have been subject
to tax under article nine-A of this chapter for its last taxable year
beginning before January first, two thousand one if such corporation
would have been subject to tax under such article for such taxable year
if it had been a taxpayer during such taxable year. A corporation that
was in existence before January first, two thousand one but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand one and before January first, two thousand three,
shall be considered for purposes of this paragraph to have been subject
to tax under this article for its last taxable year beginning before
January first, two thousand one if such corporation would have been
subject to tax under this article for such taxable year if it had been a
taxpayer during such taxable year.
(2) Notwithstanding anything to the contrary contained in this
section, a corporation formed on or after January first, two thousand
one and before January first, two thousand three may elect to be subject
to tax under this article or under article nine-A of this chapter for
its first taxable year beginning on or after January first, two thousand
one and before January first, two thousand three in which either (i)
sixty-five percent or more of its voting stock is owned or controlled,
directly or indirectly by a financial holding company, provided the
corporation whose voting stock is so owned or controlled is principally
engaged in activities that are described in section 4(k)(4) or 4(k)(5)
of the federal bank holding company act of nineteen hundred fifty-six,
as amended and the regulations promulgated pursuant to the authority of
such section, or (ii) it is a financial subsidiary.
An election under this paragraph may not be made by a corporation
described in paragraphs one through eight of subsection (a) of this
section or in subsection (e) of this section. In addition, an election
under this paragraph may not be made by a corporation that is a party to
a reorganization, as defined in subsection (a) of section 368 of the
internal revenue code of 1986, as amended, of a corporation described in
paragraph one of this subsection if both corporations were sixty-five
percent or more owned or controlled, directly or indirectly, by the same
interests at the time of the reorganization. An election under this
paragraph must be made by the taxpayer on or before the due date for
filing its return (determined with regard to extensions of time for
filing) for the applicable taxable year. The election to be taxed under
article nine-A of this chapter shall be made by the taxpayer by filing
the report required pursuant to section two hundred eleven of this
chapter and the election to be taxed under this article shall be made by
the taxpayer by filing the return required pursuant to section fourteen
hundred sixty-two of this article. Any election made pursuant to this
paragraph shall be irrevocable and shall apply to each subsequent
taxable year beginning on or after January first, two thousand one and
before January first, two thousand three, provided that the stock
ownership requirements described in subparagraph (i) of this paragraph
are met or such corporation described in subparagraph (ii) of this
paragraph continues as a financial subsidiary.
(3) For purposes of this section, a financial subsidiary means a
corporation (i) sixty-five percent or more of whose voting stock is
owned or controlled, directly or indirectly by a banking corporation
described in paragraph one, two or three of subsection (a) of this
section and (ii) is described in section 5136A(g) of the revised
statutes of the United States or section 46 of the federal deposit
insurance act. For purposes of this article, the term "banking
corporation" shall include a corporation electing to be taxed under this
article pursuant to paragraph two of this subsection for so long as such
election shall be in effect.
(j) Transitional provisions relating to the enactment and
implementation of the federal Gramm-Leach-Bliley act. (1)
Notwithstanding anything to the contrary contained in this section, a
corporation that was in existence before January first, two thousand
three and was subject to tax under article nine-A of this chapter for
its last taxable year beginning before January first, two thousand
three, shall continue to be taxable under article nine-A for all taxable
years beginning on or after January first, two thousand three and before
January first, two thousand four. The preceding sentence shall not apply
to any taxable year during which such corporation is a banking
corporation described in paragraphs one through eight of subsection (a)
of this section. Notwithstanding anything to the contrary contained in
this section, a banking corporation that was in existence before January
first, two thousand three and was subject to tax under this article for
its last taxable year beginning before January first, two thousand
three, shall continue to be taxable under this article for all taxable
years beginning on or after January first, two thousand three and before
January first, two thousand four. Provided, however, that nothing in
this subsection shall prohibit a corporation that elected pursuant to
subsection (d) of this section to be taxable under article nine-A of
this chapter from revoking that election in accordance with such
subsection (d).
For purposes of this paragraph, a corporation shall be considered to
be subject to tax under article nine-A of this chapter for a taxable
year if such corporation was not a taxpayer but was properly included in
a combined report filed pursuant to section two hundred eleven of this
chapter for such taxable year and a corporation shall be considered to
be subject to tax under this article for a taxable year if such
corporation was not a taxpayer but was properly included in a combined
return filed pursuant to subsection (f) or (g) of section fourteen
hundred sixty-two of this article for such taxable year. A corporation
that was in existence before January first, two thousand three but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand three and before January first, two thousand four,
shall be considered for purposes of this paragraph to have been subject
to tax under article nine-A of this chapter for its last taxable year
beginning before January first, two thousand three if such corporation
would have been subject to tax under such article for such taxable year
if it had been a taxpayer during such taxable year. A corporation that
was in existence before January first, two thousand three but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand three and before January first, two thousand four,
shall be considered for purposes of this paragraph to have been subject
to tax under this article for its last taxable year beginning before
January first, two thousand three if such corporation would have been
subject to tax under this article for such taxable year if it had been a
taxpayer during such taxable year.
(2) Notwithstanding anything to the contrary contained in this
section, a corporation formed on or after January first, two thousand
three and before January first, two thousand four may elect to be
subject to tax under this article or under article nine-A of this
chapter for its first taxable year beginning on or after January first,
two thousand three and before January first, two thousand four in which
either (i) sixty-five percent or more of its voting stock is owned or
controlled, directly or indirectly by a financial holding company,
provided the corporation whose voting stock is so owned or controlled is
principally engaged in activities that are described in section 4(k)(4)
or 4(k)(5) of the federal bank holding company act of nineteen hundred
fifty-six, as amended and the regulations promulgated pursuant to the
authority of such section, or (ii) it is a financial subsidiary.
An election under this paragraph may not be made by a corporation
described in paragraphs one through eight of subsection (a) of this
section or in subsection (e) of this section. In addition, an election
under this paragraph may not be made by a corporation that is a party to
a reorganization, as defined in subsection (a) of section 368 of the
internal revenue code of 1986, as amended, of a corporation described in
paragraph one of this subsection if both corporations were sixty-five
percent or more owned or controlled, directly or indirectly, by the same
interests at the time of the reorganization. An election under this
paragraph must be made by the taxpayer on or before the due date for
filing its return (determined with regard to extensions of time for
filing) for the applicable taxable year. The election to be taxed under
article nine-A of this chapter shall be made by the taxpayer by filing
the report required pursuant to section two hundred eleven of this
chapter and the election to be taxed under this article shall be made by
the taxpayer by filing the return required pursuant to section fourteen
hundred sixty-two of this article. Any election made pursuant to this
paragraph shall be irrevocable and shall apply to each subsequent
taxable year beginning on or after January first, two thousand three and
before January first, two thousand four, provided that the stock
ownership requirements described in subparagraph (i) of this paragraph
are met or such corporation described in subparagraph (ii) of this
paragraph continues as a financial subsidiary.
(3) For purposes of this section, a financial subsidiary means a
corporation (i) sixty-five percent or more of whose voting stock is
owned or controlled, directly or indirectly by a banking corporation
described in paragraph one, two or three of subsection (a) of this
section and (ii) is described in section 5136A(g) of the revised
statutes of the United States or section 46 of the federal deposit
insurance act. For purposes of this article, the term "banking
corporation" shall include a corporation electing to be taxed under this
article pursuant to paragraph two of this subsection for so long as such
election shall be in effect.
(k) Transitional provisions relating to the enactment and
implementation of the federal Gramm-Leach-Bliley act. (1)
Notwithstanding anything to the contrary contained in this section, a
corporation that was in existence before January first, two thousand
four and was subject to tax under article nine-A of this chapter for its
last taxable year beginning before January first, two thousand four,
shall continue to be taxable under article nine-A for all taxable years
beginning on or after January first, two thousand four and before
January first, two thousand six. The preceding sentence shall not apply
to any taxable year during which such corporation is a banking
corporation described in paragraphs one through eight of subsection (a)
of this section. Notwithstanding anything to the contrary contained in
this section, a banking corporation that was in existence before January
first, two thousand four and was subject to tax under this article for
its last taxable year beginning before January first, two thousand four,
shall continue to be taxable under this article for all taxable years
beginning on or after January first, two thousand four and before
January first, two thousand six. Provided, however, that nothing in this
subsection shall prohibit a corporation that elected pursuant to
subsection (d) of this section to be taxable under article nine-A of
this chapter from revoking that election in accordance with such
subsection (d).
For purposes of this paragraph, a corporation shall be considered to
be subject to tax under article nine-A of this chapter for a taxable
year if such corporation was not a taxpayer but was properly included in
a combined report filed pursuant to section two hundred eleven of this
chapter for such taxable year and a corporation shall be considered to
be subject to tax under this article for a taxable year if such
corporation was not a taxpayer but was properly included in a combined
return filed pursuant to subsection (f) or (g) of section fourteen
hundred sixty-two of this article for such taxable year. A corporation
that was in existence before January first, two thousand four but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand four and before January first, two thousand six,
shall be considered for purposes of this paragraph to have been subject
to tax under article nine-A of this chapter for its last taxable year
beginning before January first, two thousand four, if such corporation
would have been subject to tax under such article for such taxable year
if it had been a taxpayer during such taxable year. A corporation that
was in existence before January first, two thousand four, but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand four and before January first, two thousand six,
shall be considered for purposes of this paragraph to have been subject
to tax under this article for its last taxable year beginning before
January first, two thousand four if such corporation would have been
subject to tax under this article for such taxable year if it had been a
taxpayer during such taxable year.
(2) Notwithstanding anything to the contrary contained in this
section, a corporation formed on or after January first, two thousand
four and before January first, two thousand six may elect to be subject
to tax under this article or under article nine-A of this chapter for
its first taxable year beginning on or after January first, two thousand
four and before January first, two thousand six in which either (i)
sixty-five percent or more of its voting stock is owned or controlled,
directly or indirectly by a financial holding company, provided the
corporation whose voting stock is so owned or controlled is principally
engaged in activities that are described in section 4(k)(4) or 4(k)(5)
of the federal bank holding company act of nineteen hundred fifty-six,
as amended and the regulations promulgated pursuant to the authority of
such section, or (ii) it is a financial subsidiary.
An election under this paragraph may not be made by a corporation
described in paragraphs one through eight of subsection (a) of this
section or in subsection (e) of this section. In addition, an election
under this paragraph may not be made by a corporation that is a party to
a reorganization, as defined in subsection (a) of section three hundred
sixty-eight of the internal revenue code of nineteen eighty-six, as
amended, of a corporation described in paragraph one of this subsection
if both corporations were sixty-five percent or more owned or
controlled, directly or indirectly, by the same interests at the time of
the reorganization. An election under this paragraph must be made by the
taxpayer on or before the due date for filing its return (determined
with regard to extensions of time for filing) for the applicable taxable
year. The election to be taxed under article nine-A of this chapter
shall be made by the taxpayer by filing the report required pursuant to
section two hundred eleven of this chapter and the election to be taxed
under this article shall be made by the taxpayer by filing the return
required pursuant to section fourteen hundred sixty-two of this article.
Any election made pursuant to this paragraph shall be irrevocable and
shall apply to each subsequent taxable year beginning on or after
January first, two thousand four and before January first, two thousand
six, provided that the stock ownership requirements described in
subparagraph (i) of this paragraph are met or such corporation described
in subparagraph (ii) of this paragraph continues as a financial
subsidiary.
(3) For purposes of this section, a financial subsidiary means a
corporation (i) sixty-five percent or more of whose voting stock is
owned or controlled, directly or indirectly by a banking corporation
described in paragraph one, two or three of subsection (a) of this
section and (ii) is described in section 5136A(g) of the revised
statutes of the United States or section forty-six of the federal
deposit insurance act. For purposes of this article, the term "banking
corporation" shall include a corporation electing to be taxed under this
article pursuant to paragraph two of this subsection for so long as such
election shall be in effect.
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