§ 96 — General powers

New York § 96

• Jurisdiction: New York
• Law BNK: Banking
• Art. 3: Banks and Trust Companies

Text

§ 96. General powers. Every bank and every trust company shall,\nsubject to the restrictions and limitations contained in this chapter,\nhave the following powers:\n 1. To discount, purchase and negotiate promissory notes, drafts, bills\nof exchange, other evidences of debt, and obligations in writing to pay\nin installments or otherwise all or part of the price of personal\nproperty or that of the performance of services; purchase accounts\nreceivable, whether or not they are obligations in writing; lend money\non real or personal security; borrow money and secure such borrowings by\npledging assets; buy and sell exchange, coin and bullion; and receive\ndeposits of moneys, securities or other personal property upon such\nterms as the bank or trust company shall prescribe; and exercise all\nsuch incidental powers as shall be necessary to carry on the business of\nbanking. For purposes of this subdivision, the term "accounts\nreceivable" shall not include the right to receive payment for property\nto be sold at a future date or services to be rendered at a future date.\n 2. To accept for payment at a future date, drafts drawn upon it by its\ncustomers and to issue letters of credit authorizing the holders thereof\nto draw upon it or its correspondents at sight or on time.\n 3. (a) To receive upon deposit for safe-keeping for hire upon terms\nand conditions to be prescribed by the bank or trust company, money,\nsecurities, papers of any kind and any other personal property;\n (b) To engage in the safe deposit business by renting vaults, safe\ndeposit boxes and other receptacles upon premises occupied by the bank\nor trust company, upon such terms and conditions as may be prescribed by\nthe bank or trust company.\n 4. To issue by its board of directors capital notes or debentures,\nwhen so specifically authorized by the superintendent, and, when so\nspecifically authorized by the superintendent, to receive in payment\ntherefor, in whole or in part, mortgages, interests therein or other\nproperty and to retain, unrecorded or unregistered, assignments or\nconveyances of such mortgages, interests therein or other property,\nprovided that the superintendent shall not approve the retention of any\nassignment of mortgage or interest therein or any conveyance of other\nproperty, which may be recorded or registered, without record or\nregistration thereof, except where such mortgage, interest therein or\nother property is assigned or conveyed by a corporation organized under\nthe banking law or by a corporation wholly owned by not less than twenty\nsavings banks of this state.\n 5. To become a member of a federal reserve bank, and to have and\nexercise all powers, not in conflict with the laws of this state, which\nare conferred upon any such member by the federal reserve act. Such bank\nor trust company and its directors, officers and stockholders shall\ncontinue to be subject, however, to all liabilities and duties imposed\nupon them by any law of this state and to all the provisions of this\nchapter relating to banks and trust companies.\n 6. To assume and discharge such obligations to Federal Deposit\nInsurance Corporation as may be necessary or required for the purpose of\nmaintaining deposit insurance in such corporation.\n 7. (a) To act as financial agent of the United States Government and\nas depositary of public money of the United States (including, without\nbeing limited to, revenues and funds of the United States, and any funds\nthe deposit of which is subject to the control or regulation of the\nUnited States or any of its officers, agents, or employees, and Postal\nSavings funds); and to perform all such reasonable duties as depositary\nof such public money and as financial agent of the United States\nGovernment as may be required of it; and to pledge assets or furnish\nother security, satisfactory in form and amount to the Secretary of the\nTreasury of the United States, for the safekeeping and prompt payment of\nsuch public money deposited with it and for the faithful performance of\nits duties as financial agent of the United States Government.\n (b) To pledge assets or furnish other security, satisfactory in form\nand amount to judges of courts of bankruptcy, for the repayment of\ndeposits of the money of estates under the national bankruptcy act.\n (c) To pledge assets or furnish other security, satisfactory in form\nand amount to the depositor, for the repayment of moneys held in the\nname of any state (which term shall include every territory of the\nUnited States, the District of Columbia, and the Commonwealth of Puerto\nRico), or of any foreign nation, or of any Indian nation or tribe, or of\nany political subdivision or instrumentality or authority of any of\nthem, when required to be secured by applicable law, decree, regulation\nor resolution, and to pledge assets or furnish other security for the\nrepayment of moneys held as fiduciary, or in the name of a fiduciary, of\nany trust created by any such state, foreign nation, Indian nation or\ntribe, political subdivision, instrumentality or authority as required\nby the terms of such trust; provided, however, that before any pledge or\nsecurity is made or furnished to any depositor other than this state or\na political subdivision, instrumentality or authority of this state, the\nbank or trust company shall obtain a certified or official copy of such\nlaw, decree, regulation, or resolution or trust requiring such pledge or\nother security, and an opinion of counsel that such pledge or security\nis required by such law, decree, regulation, or resolution or by the\nterms of such trust.\n 9. To execute and deliver such guaranties as may be incidental to\ncarrying on the business of a bank or trust company.\n 10. To exercise, subject to such regulations as may be issued from\ntime to time by the superintendent, through any foreign branch office\n(other than one opened or occupied in another state of the United\nStates, the District of Columbia, any territory of the United States,\nGuam, American Samoa, the United States Virgin Islands, and the Northern\nMariana Islands) opened and occupied with the approval of the\nsuperintendent as provided in section one hundred five of this article,\nsuch further powers as may be usual in connection with the transaction\nof the business of banking in the place where such foreign branch office\nshall transact business, provided that no such foreign branch office\nshall engage in the general business of producing, distributing, buying\nor selling goods, wares, or merchandise, nor, except with respect to\nsecurities issued by any foreign nation or any political subdivision,\nagency or instrumentality thereof, engage or participate, directly or\nindirectly, in the business of underwriting, selling or distributing\nsecurities.\n 11. To designate one or more agents (except its employees) to issue or\nsell its travelers checks or money orders at locations other than its\nprincipal office or branch offices authorized pursuant to section one\nhundred five of this chapter, subject to such rules and regulations as\nthe superintendent may make from time to time.\n 12. To acquire and lease personal property, or to acquire personal\nproperty subject to an existing lease together with the lessor's\ninterest therein, subject to such limitations and conditions as the\nsuperintendent of financial services may from time to time prescribe by\ngeneral regulation.\n 13. To reserve or order transportation, travel accommodations or other\ntravel services.\n 14. To arrange, purchase or sell loans secured by liens on interests\nin real estate, subject to such terms, conditions and limitations as may\nbe prescribed by the superintendent by regulation.\n 15. To engage in a "savings promotion" in accordance with section\nnine-v of this chapter and subject to any regulations promulgated by the\nsuperintendent. The superintendent shall consult with the state gaming\ncommission before proposing any such regulations or any amendments\nthereto. Such regulations shall ensure that:\n a. no participant in a savings promotion is charged any fee that would\nconstitute, directly or indirectly, consideration for participation in\nsuch savings promotion; and\n b. no participant in a savings promotion foregoes, directly or\nindirectly, any interest that would constitute consideration for\nparticipation in such savings promotion.\n * 16. In addition to such authority as is contained in section\nninety-eight of this chapter and notwithstanding any limitations set\nforth therein, to purchase, lease, exchange or otherwise acquire real\nproperty, improved or unimproved, or any interest therein, to erect,\nconstruct, rebuild, enlarge, alter, improve, maintain, manage and\noperate buildings or other improvements of any description thereon, to\nsell, lease, sublet, mortgage, exchange or otherwise dispose of same and\nexecute, perform and carry out contracts for construction, alteration,\nimprovement, maintenance, management or repair thereof, to make loans in\nconnection therewith, as owner, co-owner or otherwise, subject to such\nspecific or general approvals and limitations as shall be required by\nregulations promulgated from time to time by the superintendent of\nfinancial services pursuant to this subdivision; provided, however, that\nno activity specified herein shall be undertaken pursuant to the\nauthority contained in this subdivision until the superintendent of\nfinancial services shall have issued regulations specifying the\nlimitations and requirements which shall be imposed in connection with\nthe investments and activities referred to herein, including, without\nlimitation, the consideration of such bank or trust company's record in\nmeeting the credit needs of local communities within the meaning of\nsection twenty-eight-b of this chapter.\n * NB Expired June 30, 1988\n