N.Y. Banking Law § 142-a: Limitation on acquisition of newly chartered banking institutions

§ 142-a. Limitation on acquisition of newly chartered banking

institutions. 1. No bank holding company may acquire control of any

banking institution which has been chartered for less than five years

and has its principal office in a city or village with a population of

fifty thousand or less if the principal office of a bank, trust company

or national bank the principal office of which institution is located in

this state and which institution is not a subsidiary of a bank holding

company is located in such city or village; provided, however, such an

acquisition may be consummated upon the obtaining of the appropriate

supervisory approvals if: (a) application is pending for the institution

being acquired to merge with or acquire the assets of another banking

institution having its principal office in the same city or village and

chartered for over five years, or if; (b) the superintendent finds that

the banking institution being acquired was not chartered directly or

indirectly by the acquiring bank holding company, its officers,

directors or stockholders, and does not have the capacity to continue to

conduct its business independently in a fashion consistent with the

public interest and the interests of depositors, creditors, shareholders

and stockholders.

2. As used in this section, the term "control" means the possession,

directly or indirectly, of the power to direct or cause the direction of

the management and policies of a banking institution, whether through

the ownership of voting stock of such banking institution, the ownership

of voting stock of any company which possesses such power or otherwise.

Control shall be presumed to exist if any company, directly or

indirectly, owns, controls or holds with the power to vote ten per

centum or more of the voting stock of any banking institution or of any

company which owns, controls or holds with power to vote ten percent or

more of the voting stock of such banking institution, but no person

shall be deemed to control a banking institution solely by reason of his

being an officer or director of such banking institution or company. As

used in this section, the terms "bank holding company" and "banking

institution" shall have the meanings as defined in section one hundred

forty-one of this article, except that the definition of "bank holding

company" is modified to change the phrase "a banking institution"

wherever it appears therein to "two or more banking institutions" and

the definition of "banking institution" is modified to add a national

banking association, the principal office of which is located in this

state.

3. As used in this section, the term "village" shall mean either an

incorporated or unincorporated village.