N.Y. Banking Law § 28-b: Credit needs of local communities

§ 28-b. Credit needs of local communities. 1. Each banking institution

as defined in subdivision four of this section to which the Community

Reinvestment Act of 1977, United States P.L. 95-128, applies shall file

with the superintendent a copy of each report and document which it is

required to prepare for or file with one or more federal agencies

pursuant to the provisions of that law and the rules and regulations

promulgated thereunder. Where a banking institution has filed such

reports or documents with the superintendent, an update of the reports

or documents shall be required at such time as the banking institution

requests the superintendent to take any action on any application to

which the provisions of subdivision three of this section apply.

3. (a) When taking any action on an application or notice made by a

banking institution under (i) section one hundred five, two hundred

twenty-four, two hundred forty, or three hundred ninety-six of this

chapter for a branch office, (ii) section one hundred ninety-one of this

chapter for a public accommodation office, (iii) section six hundred

one-b of this chapter for approval of a merger or purchase of assets, or

(iv) under section one hundred five-a, two hundred forty-a or three

hundred ninety-six-a of this chapter for the use or installation of an

automated teller machine, point-of-sale terminal or similar electronic

facility or on any other application or notice to which the

superintendent of financial services shall by rule or regulation make

applicable the provisions of this section, the superintendent shall take

into account, among other factors, an assessment, in writing, of the

record of performance of the banking institution in helping to meet the

credit needs of its entire community, including low and moderate-income

neighborhoods and minority- and women-owned businesses, consistent with

safe and sound operation of the banking institution. Such assessment and

any written communications from the department of financial services to

a banking institution relating to such assessment shall be made

available to the public upon request, provided that nothing contained in

this subdivision shall be deemed to alter, amend or affect the

provisions of subdivision ten of section thirty-six of this chapter. In

making such assessment the superintendent shall review all reports and

documents filed with him or her pursuant to subdivision one of this

section and any signed, written comments received by the superintendent

which specifically relate to the banking institution's performance in

helping to meet the credit needs of its community. In addition, the

superintendent shall consider the following factors in assessing a

banking institution's record of performance, and include in its written

assessment required by this section the record of performance of such

banking institution as to each of the following factors:

(1) Activities conducted by the banking institution to ascertain

credit needs of its community, including the extent of the banking

institution's efforts to communicate with members of its community

regarding the credit services being provided by the banking institution;

(2) The extent of the banking institution's marketing and special

credit-related programs to make members of the community aware of the

credit services offered by the banking institution;

(3) The extent of participation by the banking institution's board of

directors or board of trustees in formulating the banking institution's

policies and reviewing its performance with respect to the purposes of

the Community Reinvestment Act of 1977;

(4) Any practices intended to discourage application for types of

credit set forth in the banking institution's Community Reinvestment Act

Statement(s);

(5) The geographic distribution of the banking institution's credit

extensions, credit applications and credit denials;

(6) Evidence of prohibited discriminatory or other illegal credit

practices;

(7) The banking institution's record of opening and closing offices

and providing services at offices;

(8) The banking institution's participation, including investments, in

local community development and redevelopment projects or programs and

in technical assistance programs for small businesses and minority- and

women-owned businesses;

(9) The banking institution's origination of residential mortgage

loans, housing rehabilitation loans, home improvement loans and small

business or small farm or minority- and women-owned business loans

within its community or the purchase of such loans originated in its

community;

(10) The banking institution's participation in

governmentally-insured, guaranteed or subsidized loan programs for

housing, small businesses or small farms;

(11) The banking institution's ability to meet various community

credit needs based on its financial condition, size, legal impediments,

local economic condition and other factors;

(11-a) The geographic distribution, availability and use of automated

teller machines, point-of-sale terminals, personal computer banking,

debit cards or similar electronic facilities or services; and any

training of customers thereon among every branch of the banking

institution, if the institution offers such services to any of its

customers; and

(12) Other factors that, in the judgment of the superintendent,

reasonably bear upon the extent to which a banking institution is

helping to meet the credit needs of its entire community, including,

without limitation, the banking institution's participation in credit

counseling services or participation in a banking development district

established pursuant to section ninety-six-d of this chapter by

establishing a branch in such district.

(b) In assessing the record of performance of a banking institution

pursuant to the provisions of paragraph (a) of this subdivision, the

superintendent may, where he or she deems it appropriate, provide for

public hearings when an objection to the banking institution's

application or notification has been submitted.

(c) An assessment of a banking institution's record of performance

under paragraph (a) of this subdivision may be the basis for denying an

application or notice under the provisions of this section.

(d) When taking any action pursuant to paragraph (a) of this

subdivision, the superintendent shall request from the applicant or

notificant banking institution and from the appropriate federal bank

regulatory authorities any documents, other than those required to be

filed with the superintendent by this section or by other applicable

statutes or regulations, which are (1) filed with the federal bank

regulatory authorities in connection with the application or notice or

(2) produced by the applicant or notificant banking institution or

others in connection with the application or notice.

4. Notwithstanding any other provision of this chapter or other law to

the contrary, the term banking institution when used in this section

shall mean and include all banks, trust companies, savings banks,

savings and loan associations, credit unions and foreign banking

corporations incorporated, chartered, organized or licensed under the

laws of this state. In the case of a foreign banking corporation

licensed pursuant to this article and maintaining a branch in this

state, the management of the branch shall establish a committee of not

fewer than three officers to function in the role of a board of

directors for purposes of this section.

5. The superintendent is hereby authorized and empowered to promulgate

rules and regulations effectuating the provisions of this section,

including any rules and regulations providing that the assessment of

banking institutions referred to in subdivision three of this section

shall be made on a graduated numerical basis.

6. If any clause, sentence, paragraph, subdivision or part of this

section or the application thereof to any person, firm, or corporation,

or circumstance shall be adjudged by any court of competent jurisdiction

to be invalid or unconstitutional, such judgment shall not affect,

impair or invalidate the remainder thereof, but shall be confined (i) in

its operation to the clause, sentence, paragraph, subdivision, or part

of this section or (ii) in its application to the person, firm or

corporation, or circumstance, directly involved in the controversy in

which such judgment shall have been rendered.