N.Y. Banking Law § 202-b: Maintenance of assets in this state

§ 202-b. Maintenance of assets in this state. * 1. Upon opening a

branch or agency and thereafter, a foreign banking corporation licensed

pursuant to article two of this chapter shall keep on deposit, in

accordance with such rules and regulations as the superintendent shall

adopt shall from time to time, with such banks or trust companies or

private bankers or national banks in the state of New York as such

foreign banking corporation may designate and the superintendent may

approve, interest-bearing stocks and bonds, notes, debentures, or other

obligations of the United States or any agency or instrumentality

thereof, or guaranteed by the United States, or of this state, or of a

city, county, town, village, school district, or instrumentality of this

state or guaranteed by this state, or dollar deposits, or obligations of

the International Bank for Reconstruction and Development, or

obligations issued by the Inter-American Development Bank, or

obligations of the Asian Development Bank, or obligations issued by the

African Development Bank, or obligations issued by the International

Finance Corporation, or bonds, notes, debentures, or other obligations

issued by or guaranteed by the Federal Home Loan Mortgage Corporation

(Freddie Mac) or by the Federal National Mortgage Corporation (Fannie

Mae), or bonds, notes, debentures, or other obligations issued by or

guaranteed by the Student Loan Marketing Association (SALLIE MAE) or all

bonds, notes, debentures, or other obligations issued by or guaranteed

by a federal home loan bank, or bonds, notes, debentures or other

obligations of any unaffiliated issuer provided that, at the time of

such investment, the obligation has received the highest rating of an

independent rating service designated by the superintendent or, if the

obligation is rated by more than one such service, the highest rating of

at least two such services, or such other assets as the superintendent

shall by rule or regulation permit, to an aggregate amount to be

determined by the superintendent, based upon principal amount or market

value, whichever is lower, in the case of the above-described

securities, and subject to such limitations as the superintendent shall

prescribe; provided, however, that the superintendent may determine, in

the superintendent's discretion, that any such bonds, notes, debentures

or other obligations of a particular issuer are not acceptable for

purposes of meeting the requirements of this subdivision. The

superintendent may from time to time require that the assets deposited

pursuant to this subdivision may be maintained by the foreign banking

corporation at such amount, in such form and subject to such conditions

as he or she shall deem necessary or desirable for the maintenance of a

sound financial condition, the protection of depositors and the public

interest, and to maintain public confidence in the business of such

branch or branches or such agency or agencies. The superintendent may

give credit to reserves required to be maintained with a federal reserve

bank in or outside the state of New York pursuant to federal law,

subject to such rules and regulations as the superintendent may from

time to time promulgate. So long as it shall continue business in the

ordinary course, such foreign banking corporation shall be permitted to

collect interest on the securities so deposited and from time to time

exchange, examine and compare such securities.

* NB Effective until notification of the superintendent of financial

services

* 1. Upon opening a branch or agency and thereafter, a foreign banking

corporation licensed pursuant to article two of this chapter shall keep

on deposit, in accordance with such rules and regulations as the

superintendent shall from time to time promulgate, with such banks or

trust companies or private bankers or national banks in the state of New

York as such foreign banking corporation may designate and the

superintendent may approve, interest-bearing stocks and bonds, notes,

debentures, or other obligations of the United States or any agency or

instrumentality thereof, or guaranteed by the United States, or of this

state, or of a city, county, town, village, school district, or

instrumentality of this state or guaranteed by this state, or dollar

deposits, or obligations of the International Bank for Reconstruction

and Development, or obligations issued by the Inter-American Development

Bank, or obligations of the Asian Development Bank, or obligations

issued by the African Development Bank, or obligations issued by the

International Finance Corporation, or bonds, notes, debentures, or other

obligations issued by or guaranteed by the Federal Home Loan Mortgage

Corporation (Freddie Mac) or by the Federal National Mortgage

Corporation (Fannie Mae), or bonds, notes, debentures, or other

obligations issued by or guaranteed by the Student Loan Marketing

Association (SALLIE MAE) or all bonds, notes, debentures, or other

obligations issued by or guaranteed by a federal home loan bank, or

bonds, notes, debentures or other obligations of any unaffiliated issuer

that meet the standards of creditworthiness established by regulation by

the superintendent, or such other assets as the superintendent shall by

rule or regulation permit, to an aggregate amount to be determined by

the superintendent, based upon principal amount or market value,

whichever is lower, in the case of the above-described securities, and

subject to such limitations as he or she shall prescribe; provided,

however, that the superintendent may determine, in his or her

discretion, that any such bonds, notes, debentures or other obligations

of a particular issuer are not acceptable for purposes of meeting the

requirements of this subdivision. The superintendent may from time to

time require that the assets deposited pursuant to this subdivision may

be maintained by the foreign banking corporation at such amount, in such

form and subject to such conditions as he or she shall deem necessary or

desirable for the maintenance of a sound financial condition, the

protection of depositors and the public interest, and to maintain public

confidence in the business of such branch or branches or such agency or

agencies. The superintendent may give credit to reserves required to be

maintained with a federal reserve bank in or outside the state of New

York pursuant to federal law, subject to such rules and regulations as

the superintendent may from time to time promulgate. So long as it shall

continue business in the ordinary course, such foreign banking

corporation shall be permitted to collect interest on the securities so

deposited and from time to time exchange, examine and compare such

securities.

* NB Effective upon notification of the superintendent of financial

services

2. Each foreign banking corporation shall hold in this state currency,

bonds, notes, debentures, drafts, bills of exchange or other evidences

of indebtedness, including loan participation agreements or

certificates, or other obligations payable in the United States or in

United States funds or, with the prior approval of the superintendent,

in funds freely convertible into United States funds, or such other

assets as the superintendent shall by rule or regulation permit, in an

amount which shall bear such relationship as the superintendent shall by

regulation prescribe to liabilities of such foreign banking corporation

appearing in the books, accounts or records of its agency, agencies,

branch or branches in this state as liabilities of such agency,

agencies, branch or branches, including acceptances and such other

liabilities (including contingent liabilities) as the superintendent

shall determine, but excluding amounts due and other liabilities to

other offices, agencies or branches of, and affiliates of, such foreign

banking corporation. As used in this subdivision, (i) "affiliate" shall

mean any person or entity, or group of persons or entities acting in

concert, that controls, is controlled by or is under common control with

such foreign banking corporation and (ii) "control" means any person, or

group of persons acting in concert, directly or indirectly, owning,

controlling or holding with power to vote, more than fifty percent of

the voting stock of a company, or having the ability in any manner to

elect a majority of the directors of a company, or otherwise exercising

a controlling influence over the management and policies of a company as

defined by the superintendent by regulation. For purposes of this

subdivision, the term "person" shall mean a corporation, unincorporated

association, partnership, or any other entity or individual. For the

purposes of this subdivision, the superintendent shall value marketable

securities at principal amount or market value, whichever is lower,

shall have the right to determine the value of any non-marketable bond,

note, debenture, draft, bill of exchange, other evidence of

indebtedness, including loan participation agreements or certificates,

or of any other asset or obligation held by or owed to the foreign

banking corporation or its agency, agencies, branch or branches within

the state, and in determining the amount of assets for the purpose of

computing the above ratio of assets to liabilities, shall have the power

to exclude in whole or in part any particular asset. If, by reason of

the existence or the potential occurrence of unusual and extraordinary

circumstances, the superintendent deems it necessary or desirable for

the maintenance of a sound financial condition, the protection of

depositors, creditors and the public interest, and to maintain public

confidence in the business of the agency, agencies, branch or branches

of a foreign banking corporation, the superintendent may, subject to

such terms and conditions as the superintendent may prescribe, require

such foreign banking corporation to deposit the assets required to be

held in this state pursuant to this subdivision two with such banks or

trust companies or private bankers or national banks located in this

state, as the superintendent may designate.

3. In the event that any of the deposits received within the state by

a foreign banking corporation are insured by the Federal Deposit

Insurance Corporation, the superintendent shall specify what reasonable

percentage of deposit liabilities may be excluded in determining the

aggregate amount of liabilities of such foreign banking corporation for

deposits received within the state for purposes of subdivision two of

this section by reason of the fact that all or a part of such deposit

liabilities are insured by the Federal Deposit Insurance Corporation.