N.Y. Banking Law § 14: Additional powers of the superintendent

§ 14. Additional powers of the superintendent. 1. For the purpose of

effectuating the policy declared in section ten of this article, without

limiting any other powers that the superintendent is permitted by law to

exercise, the superintendent shall have the power to make, alter and

amend orders, rules and regulations not inconsistent with law. Such

orders, rules and regulations shall be brought to the attention of those

affected thereby in a manner prescribed by law. Without limiting the

foregoing power, orders or rules or regulations may be so adopted for

the following specific purposes:

(a) To approve organization certificates and articles of association,

private bankers' certificates and applications of foreign corporations

for licenses to do business in this state, 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, or any other equity interest in, any corporation, partnership,

unincorporated association, limited liability company, or other entity

not included among the corporations or other entities for which

investment in the capital stock or other equity interest is expressly

authorized by this chapter.

(e) To authorize a savings bank to invest in the capital stock,

capital notes and debentures of a trust company or other corporation, as

provided in article six of this chapter.

(f) To authorize a savings and loan association to invest in the

capital stock, capital notes and debentures of a trust company or other

corporation, as provided in article ten of this chapter.

(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 superintendent shall find that such

limitation and regulation are necessary because of the existence of

unusual and extraordinary circumstances.

(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 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 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 on such basis as

the superintendent may deem reasonable or appropriate in view of the

character of the business transacted by such bank or trust company.

(j) To grant permission to officers, directors, clerks or employees of

banks and trust companies 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 and branches of foreign banking corporations,

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 superintendent shall find that such

postponement or omission is necessary because of the existence of

unusual and extraordinary circumstances.

(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

superintendent shall find that such variations are necessary because of

the existence of unusual and extraordinary circumstances.

(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.