§ 14 — Additional powers of the superintendent

New York § 14

• Jurisdiction: New York
• Law BNK: Banking
• Art. 2: Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers

Text

§ 14. Additional powers of the superintendent. 1. For the purpose of\neffectuating the policy declared in section ten of this article, without\nlimiting any other powers that the superintendent is permitted by law to\nexercise, the superintendent shall have the power to make, alter and\namend orders, rules and regulations not inconsistent with law. Such\norders, rules and regulations shall be brought to the attention of those\naffected thereby in a manner prescribed by law. Without limiting the\nforegoing power, orders or rules or regulations may be so adopted for\nthe following specific purposes:\n (a) To approve organization certificates and articles of association,\nprivate bankers' certificates and applications of foreign corporations\nfor licenses to do business in this state, as provided in this article.\n (b) To determine the purposes for which and the extent to which\ncapital notes or debentures shall be considered and treated as capital\nstock of corporate banking organizations; but capital notes or\ndebentures shall not be considered or treated as capital stock for the\npurposes of sections one hundred ten and one hundred eleven of this\nchapter.\n (c) To grant permission to a trust company, including a national bank,\nto establish one or more common trust funds upon application and after\ninquiry concerning the qualifications of such trust company to maintain\nand manage the same, and to regulate the conduct and management of any\ncommon trust fund and for such purpose, but not by way of limitation of\nthe foregoing power, to prescribe (1) the records and accounts to be\nkept of such common trust funds; (2) the procedure to be followed in\nadding moneys to or withdrawing moneys or investments from any such\ncommon trust fund; (3) the methods and standards to be employed in\ndetermining the value of such common trust funds and of the assets and\ninvestments thereof; (4) the maximum amount of moneys of any estate,\ntrust or fund which may be invested in any common trust fund; and (5)\nthe maximum proportionate share of any such common trust fund which may\nbe apportioned to any estate, trust or fund; and in connection with such\npowers to classify the corporations maintaining such common trust funds\naccording to the population of the city, town or village in which the\nprincipal offices of such corporations are respectively located and to\nprescribe the minimum total of any such common trust fund and the\npermissible limits of investment therein in accordance with such\nclassification.\n (cc) To approve the incorporation by or on behalf of trust companies\nand national banks with trust powers of a mutual trust investment\ncompany to form a medium for the common investment of funds held by\ntrust companies, including national banks, acting as executors,\nadministrators, guardians, inter-vivos or testamentary trustees or\ncommittees or conservators either alone or with individual\nco-fiduciaries, and any amendments of the certificate of incorporation\nof such mutual trust investment company, and to regulate the conduct and\nmanagement of such mutual trust investment company and for such purpose,\nbut not by way of limitation of the foregoing power, to prescribe (1)\nthe records and accounts to be kept by such mutual trust investment\ncompany; (2) the procedure to be followed in the sale or redemption of\nstocks or shares therein; (3) the methods and standards to be employed\nin determining the value of such shares in the mutual trust investment\ncompany and the assets and investments thereof; and (4) the maximum\nproportionate shares of any such mutual trust investment company which\nmay be apportioned or sold to any one trust company or national bank.\n (d) To authorize a bank or a trust company to invest in the capital\nstock of, or any other equity interest in, any corporation, partnership,\nunincorporated association, limited liability company, or other entity\nnot included among the corporations or other entities for which\ninvestment in the capital stock or other equity interest is expressly\nauthorized by this chapter.\n (e) To authorize a savings bank to invest in the capital stock,\ncapital notes and debentures of a trust company or other corporation, as\nprovided in article six of this chapter.\n (f) To authorize a savings and loan association to invest in the\ncapital stock, capital notes and debentures of a trust company or other\ncorporation, as provided in article ten of this chapter.\n (g) To prescribe from time to time: (1) the rates of interest which\nmay be paid on deposits with any banking organization and with any\nbranch or agency of a foreign banking corporation; and (2) the rates of\ndividends which may be paid on shares of any savings and loan\nassociation or credit union, and to prohibit the payment of such\ninterest or such dividends by any banking organization or by any branch\nof a foreign banking corporation. Interest or dividend rates so\nprescribed need not be uniform.\n (h) To limit and regulate withdrawals of deposits or shares from any\nbanking organization, if the superintendent shall find that such\nlimitation and regulation are necessary because of the existence of\nunusual and extraordinary circumstances.\n (i) To prescribe from time to time reserves against deposits to be\nmaintained by banks and trust companies pursuant to article three of\nthis chapter; provided that no reserve requirement imposed against\neither time or demand deposits shall require any bank or trust company\nto maintain total reserves in an amount greater than it would be\nrequired to maintain if it were at the time a member of the federal\nreserve system; and provided further, however, that a bank or trust\ncompany not a member of the federal reserve system may be authorized to\nmaintain total reserves against deposits in an amount lower than the\nreserves required by article three of this chapter to be maintained,\neither in individual cases or by general regulations on such basis as\nthe superintendent may deem reasonable or appropriate in view of the\ncharacter of the business transacted by such bank or trust company.\n (j) To grant permission to officers, directors, clerks or employees of\nbanks and trust companies to engage in the issue, flotation,\nunderwriting, public sale or distribution at wholesale or retail, or\nthrough syndicate participation of stocks, bonds or other similar\nsecurities, and to revoke such permission, both as provided in this\nchapter.\n (k) To prescribe the methods and standards to be used (1) in making\nthe examinations provided for in this chapter, and (2) in valuing the\nassets of banking organizations.\n (l) To prescribe the form and contents of periodical reports of\ncondition to be rendered to the superintendent by banks, trust\ncompanies, private bankers and branches of foreign banking corporations,\nand the manner of publication of such reports.\n (m) To postpone or omit the calling for and rendering of reports\nprovided for by this chapter if the superintendent shall find that such\npostponement or omission is necessary because of the existence of\nunusual and extraordinary circumstances.\n (n) To define what is an unsafe manner of conducting the business of\nbanking organizations.\n (o) To define what is a safe or unsafe condition of a banking\norganization.\n (p) To make variations from the requirements of this chapter, provided\nsuch variations are in harmony with the spirit of the law, if the\nsuperintendent shall find that such variations are necessary because of\nthe existence of unusual and extraordinary circumstances.\n (q) To establish safe and sound methods of banking and safeguard the\ninterests of depositors, creditors, shareholders and stockholders\ngenerally in times of emergency.\n (qq) To permit any banking organization, national banking association,\nfederal mutual savings bank, federal savings and loan association and\nfederal credit union to offer graduated payment mortgages which shall\nconform to the provisions of section two hundred seventy-nine of the\nreal property law.\n (s) To permit authorized lenders, as defined by section two hundred\neighty or two hundred eighty-a of the real property law, to offer\nreverse mortgage loans which shall conform to the provisions of section\ntwo hundred eighty or two hundred eighty-a of the real property law.\n