§ 24-A — Closing of banking organizations on Saturday; Sunday, public holiday or Saturday afternoon banking transactions; emergency bank holidays

§ 24-a. Closing of banking organizations on Saturday; Sunday, public\nholiday or Saturday afternoon banking transactions; emergency bank\nholidays. 1. Any banking organization lawfully doing business within the\nstate of New York may be closed on any one or more Saturdays upon the\nadoption of a resolution to such effect by a majority vote of the board\nof directors or the board of trustees thereof or of the partners in the\ncase of a private banker. Any one or more of such Saturdays shall, with\nrespect to any such banking organization which shall be closed thereon\nin accordance with the provisions of this subdivision, constitute a\npublic holiday within the meaning of such term as used in and for all\npurposes of section twenty-five and twenty-five-a of this chapter (but\nnot, in the case of negotiable instruments, for the purposes of\nsubdivision two of section twenty-five thereof), and shall neither be a\n"full business day" nor a banking day within the meaning of such terms\nas used in and for all purposes of the uniform commercial code. The term\n"banking organization", as used in this section (except where otherwise\ndefined therein), shall mean any banking organization as defined in the\nbanking law, any branch or agency of a foreign banking corporation, any\nnational bank, federal reserve bank, federal savings and loan\nassociation, federal savings bank, federal home loan bank or federal\ncredit union, and any person or association of persons lawfully carrying\non the business of banking in this state whether incorporated or not. As\nused in this section (except where otherwise defined therein), the term\n"officers" shall mean the person or persons designated by the board of\ndirectors or trustees of a banking organization, or the partners in the\ncase of a private banker, to act for the banking organization in\ncarrying out the provisions of this section; the term "office" shall\nmean any place at which a banking organization transacts business other\nthan its principal office; and the term "person" shall include natural\npersons, corporations, partnerships and associations.\n 2. Nothing in any law of this state shall in any manner whatsoever\naffect the validity of, or render void or voidable, the payment\ncertification or acceptance of a check or other negotiable instrument\nunder the uniform commercial code or any other transaction by a banking\norganization in this state, because done or performed on any Sunday or\npublic holiday, or on any Saturday between twelve o'clock noon and\nmidnight, provided such payment, certification, acceptance, or other\ntransaction would be valid if done or performed on any business day or\nbefore twelve o'clock noon on such Saturday; provided, further, that\nnothing in this subdivision shall be construed to compel any banking\norganization in this state, which by law or custom is entitled to close\nat twelve o'clock noon on any Saturday, to keep open for the transaction\nof business or to perform any of the acts or transactions aforesaid, on\nany Saturday after such hour except at its own option or to compel any\nbanking organizations in this state to keep open on a public holiday\nexcept at its own option and then only to the extent it elects to do so.\n 3. a. The governor is authorized, by proclamation, to designate and\nappoint one or more holidays, or holiday periods, to be known as bank\nholidays, to be observed throughout the state, or to be observed in a\nportion or portions thereof, as specified in such proclamation, if an\nemergency as hereinafter defined, shall, in his opinion, require such\naction.\n b. Whenever the officers of a banking organization are of the opinion\nthat an emergency, as hereinafter defined, exists which affects one or\nmore or all the banking organization's offices, they shall have\nauthority to close one or more or all such offices even though the\ngovernor has not issued and does not issue a proclamation of emergency,\nprovided however, that provision is made by such officers for the\ntransaction of the business normally transacted at a closed office at\nanother office or the principal office of the banking organization,\nuntil further notice. The office or offices so closed shall remain\nclosed until the officers or, in the case of a banking organization as\ndefined in the banking law, the superintendent of financial services,\ndirect that it be opened. A banking organization closing an office or\noffices pursuant to this paragraph shall give prompt notice to the\nsuperintendent of financial services of its action.\n c. Whenever the officers of a banking organization are of the opinion\nthat an emergency, as hereinafter defined, exists which affects the\nbanking organization's principal office, they shall have authority to\nclose such principal office even though the governor has not issued and\ndoes not issue a proclamation of emergency, provided however, that\nprovision is made by such officers for the transaction of the business\nnormally transacted at such principal office, at another office of the\nbanking organization, until further notice; provided further however,\nthat if no other office of the banking organization can be so designated\nfor the transaction of the business normally transacted at the principal\noffice, the officers may direct that the principal office shall be\nclosed only with the prior approval of the superintendent of financial\nservices. The superintendent of financial services, in giving such\napproval, may require certification of such official of the federal\ngovernment or of the state of New York or a political subdivision\nthereof as he deems sufficient to establish that an emergency exists\nwhich affects such banking organization's principal office. A banking\norganization closing such principal office pursuant to this paragraph\nshall give prompt notice to the superintendent of financial services of\nits action.\n d. Whenever the officers of a banking organization are of the opinion\nthat an emergency, as hereinafter defined, exists which adversely\naffects the conduct of any business operation or function conducted at\nthe bank's principal office, they shall have the authority, upon the\nprior approval of the superintendent of financial services, not to\nconduct such operation or function even though the governor has not\nissued and does not issue a proclamation of emergency; provided,\nhowever, that such officers may exercise this authority without such\nprior approval if they have in good faith attempted, but been unable, to\ncontact the superintendent of financial services to request permission\nnot to conduct such business operation or function; and provided further\nthe principal office shall not be closed in its entirety pursuant to\nthis paragraph. No business operation or function shall be closed\npursuant to this paragraph d unless such officers have attempted, but in\ngood faith found it infeasible to conduct such business operation or\nfunction at another office. A banking organization closing any business\noperation or function pursuant to this paragraph shall promptly notify\nthe superintendent of financial services of its action in a manner\nprescribed by the superintendent.\n e. The discretion of the officers of any banking organization in\nacting pursuant to this subdivision, when exercised in good faith, shall\nnot be questioned in any court or place.\n f. No banking organization and no director, officer or employee of a\nbanking organization shall be liable to any person for any direct or\nindirect loss suffered by such person by reason of the banking\norganization's failure or inability to make access to the banking\norganization's premises and facilities available to such person or by\nreason of the banking organization's failure to perform, or its delay in\nperforming, any contractual, statutory or other duty assumed by or\nimposed upon the banking organization in any capacity when such failure,\ninability or delay is caused by the banking organization, or any office\nor the principal office thereof, being closed as authorized by this\nsection.\n g. An emergency, within the meaning of this section, shall mean any\ncondition which may interfere with the conduct of normal banking\noperations, in the holiday area, or at one or more or all offices or the\nprincipal office of a banking organization or organizations, or which\nposes an imminent or existing threat to the safety and security of\npersons or property, or both, including floods, wind, rain, hail or snow\nstorms, power failures, transportation failures, earthquake, fire,\nriots, strikes, civil commotion, labor disputes, enemy action or threat\nof enemy action, and any similar or different condition which may\ninterfere physically with the conduct of normal banking operations in\nthe holiday area.\n h. During such holiday, holidays and holiday periods, provided for in\nparagraphs a through c of this subdivision, all banking organizations\nmay close any or all of their places of business in the holiday area.\nThe superintendent of financial services may, however, by special or\ngeneral regulation, restriction, or order, provide that banking\norganizations (as such term is defined in the banking law) and branches\nand agencies of foreign banking corporations in this state shall, to the\nextent and at such of their places of business as may be directed by\nhim, carry on such of their normal and usual operations or banking\ntransactions in the holiday area during such holiday, holidays or\nholiday period, as may appear to him to be in the best interests of the\npublic. Such holiday, holidays or holiday periods shall, with respect to\nsuch place or places of business in the holiday area of any banking\norganization which shall be closed thereon in accordance with the\nprovisions of this subdivision, constitute a public holiday within the\nmeaning of such term as used in and for all purposes of subdivision one\nof section twenty-five and of subdivision one of section twenty-five-a\nof this chapter (but not for the purposes of subdivision two of section\ntwenty-five or of subdivision two of section twenty-five-a thereof), and\nshall neither be "full business days" nor banking days within the\nmeaning of such terms as used in and for all purposes of the uniform\ncommercial code, to the extent that the performance of obligations under\nsaid code are not directed to be performed by the special or general\nregulations, restrictions or orders of the superintendent of financial\nservices, and shall not be deemed to be public holidays for any other\npurpose, or under any other provision of law. If any banking operation\nor function is closed pursuant to paragraph d of this subdivision, a\nbank holiday shall be deemed to exist, with the same effects and\nlimitations as set forth in the preceding sentence, with respect to such\nbanking operation or function.\n i. A bank office or principal office that has been closed as\nauthorized by this section may nonetheless conduct limited operations\nand perform banking transactions (i) for the convenience of its\ncustomers or (ii) relating to transactions between that bank and other\nbanks or persons which have remained open for business or are outside\nthe holiday area.\n j. For purposes of this section, each reference to the superintendent\nof financial services shall be deemed to include any official of the\ndepartment of financial services to whom authority granted by this\nsection has been delegated.\n