N.Y. Banking Law § 240: Restrictions as to place of business; branch offices

§ 240. Restrictions as to place of business; branch offices. 1. A

savings bank shall not be located in the same room with or in a room

connecting with any bank, trust company or national bank, unless it be a

savings bank lawfully so located when this act takes effect. The

prohibitions of this subdivision shall not apply to automated teller

machines, point-of-sale terminals and similar facilities established

pursuant to section one hundred five-a, two hundred forty-a or three

hundred ninety-six-a of this chapter or pursuant to any federal law

authorizing a national bank to operate a similar facility.

2. No savings bank, or trustee, officer, agent or employee thereof,

shall transact any part of its usual business of banking at any place

other than its principal office except as follows:

(a) A savings bank may open and occupy one or more branch offices at

any location in the state. In addition, a savings bank may open and

occupy a branch office or branch offices in one or more places located

without the state of New York.

(b) An office of an affiliated bank at which the customers of a

savings bank may make deposits, renew time deposits, make withdrawals,

close loans, service loans, and receive payments on loans and other

obligations shall not be deemed a branch office of such savings bank.

For the purposes of this section, the term "affiliated bank" means any

bank, as such term is defined in section 3(a)(1) of the Federal Deposit

Insurance Act (12 U.S.C. 1813(a)(1)), that is a subsidiary of the same

bank holding company, as that term is defined in section 2 of the Bank

Holding Company Act (12 U.S.C. 1841).

(c) Except for the city or village in which its principal office is

located, no branch office may be opened and occupied pursuant to

paragraph (a) of this subdivision in any city or village with a

population of fifty thousand or less and in which is already located the

principal office of a bank, trust company or national banking

association, other than a bank holding company, if such bank holding

company is a banking institution, or a banking subsidiary of a bank

holding company, as such terms "bank holding company", "banking

institution" and "banking subsidiary" are defined in section one hundred

forty-one of this chapter 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 institution is

located in this state.

(d) (1) If so provided in the merger or asset acquisition plan

submitted to the superintendent pursuant to section six hundred one or

six hundred one-a of this chapter, and if such merger or asset

acquisition is permitted by law, a savings bank may, in addition to the

authority granted under paragraph (a) of this subdivision, and without

limitation by any of the provisions of paragraph (c) of this

subdivision, maintain as a branch office, or branch offices, the place

or places of business of any savings bank or savings and loan

association, federal savings bank, federal savings and loan association,

bank, trust company, national bank, or out-of-state state bank (as such

term is defined in section two hundred twenty-two of this chapter) which

it has received into itself by merger or asset acquisition pursuant to

this chapter which were in existence at the time the merger or asset

acquisition becomes effective, including any branch office of the

savings bank, savings and loan association, or bank or trust company

with which it has merged or from which it has acquired assets which has

been approved pursuant to subdivision three of this section or paragraph

(c) of subdivision two of section three hundred ninety-six, or

subdivision two of section one hundred five of this chapter even if such

branch office is not in operation at the time said merger or asset

acquisition becomes effective and may maintain, as its principal office

rather than as a branch office, the principal office of such institution

with which it has merged or from which it has acquired assets (so long

as the principal office is located in this state), in which event the

former principal office of the receiving savings bank may be maintained

as a branch office.

(2) Notwithstanding anything to the contrary in subparagraph one of

this paragraph, any public accommodation office of a savings bank,

savings and loan association, or bank or trust company which has been

merged or had assets acquired in an asset acquisition transaction,

including any such office which has been approved pursuant to section

one hundred ninety-one of this chapter but which is not in operation at

the time said merger or asset acquisition becomes effective, may be

maintained by the receiving savings bank as a public accommodation

office only.

(e) If so provided in an agreement submitted to the superintendent

pursuant to section six hundred one-c of this chapter, a savings bank

may, in addition to the authority granted under paragraph (a) of this

subdivision, and without limitation by any of the provisions of

paragraph (a) or (c) of this subdivision, maintain as a branch office or

offices the place or places of business of any savings bank or savings

and loan association which it has acquired pursuant to such agreement as

authorized by section six hundred one-c of this chapter.

3. Before any branch office shall be opened and occupied pursuant to

paragraph (a) of subdivision two of this section, the superintendent

shall have given his written approval.

4. The term "village" as used in this section shall mean either an

incorporated or an unincorporated village.