N.Y. Banking Law § 28-c: Branch office closings; report to and action by the superintendent

§ 28-c. Branch office closings; report to and action by the

superintendent. 1. This section is intended to provide the

superintendent with detailed information concerning the planned closing

of branch offices by state-chartered banking organizations, the

availability of alternative financial services within the general area

served by such branch and the economic impact upon the community

resulting from such closing, and to provide the superintendent with

authority to conduct meetings with banking organizations and community

groups in areas where a branch closing is planned. The requirements of

this section shall not apply to the following:

(a) branch offices located outside the state of New York;

(b) a sale or other transfer of a branch office which does not result

in any material reduction in the financial services offered at such

location;

(c) the closing of a branch office acquired from a failing or failed

institution, provided that such closing occurs within one hundred eighty

days from the date of the acquisition; or

(d) the closing of a branch office when unexpected circumstances make

strict compliance impossible, provided that such determination shall be

solely within the discretion of the superintendent and provided further

that the superintendent may require the banking organization to comply

with the requirements of this section to the extent possible.

2. Every banking organization shall submit to the superintendent a

report of its planned or intended closing of a branch office, and shall

give written notice to any person who maintains a banking account

relationship with such branch office which is the subject of such

planned or intended closing, no less than ninety days nor more than one

hundred eighty days prior to the date of actual closing. The banking

organization shall post and keep posted in a conspicuous place notice of

such planned closing at such branch office, commencing on the date the

banking organization submits its report pursuant to the foregoing

provision and until the proposed closing is effected or withdrawn.

3. Such report shall be in writing and shall contain a statement of

the reasons leading to the decision to close the branch and any

statistical or other information in support thereof. Such report shall

be and remain at all times subject to the provisions of subdivision ten

of section thirty-six of this chapter. Such report shall also contain

the following information, provided that the superintendent may waive or

modify these requirements for good cause:

(a) a past (at least three years), present and projected financial

analysis of deposits at such branch (giving number of accounts and

dollar amount, profits and losses);

(b) a past (at least three years), present and projected financial

analysis of profits and losses relating to the loan activity at such

branch;

(c) a detailed map of the general area served by such branch showing

the distance and direction of all remaining state or federally chartered

institutions within such area and any licensee of the department which

provides financial services of any kind; and

(d) a description of any planned limited or full service banking

facility to be opened within such area by either the reporting banking

organization or, if known, to the reporting banking organization, by any

other banking institution.

4. The superintendent shall make a finding as to whether or not the

proposed branch closing will result in a significant reduction of

financial services in the community to be affected. Such finding shall

be made public. If the superintendent finds that the availability of

financial services in a particular geographic area or community will be

significantly reduced by the closing of a particular branch office, he

or she shall conduct such meetings with banking organizations and

community leaders as are necessary, in his or her judgment, to explore

the feasibility of replacing such branch with other adequate banking

facilities.

5. In this section:

(a) "banking organization" includes each bank, trust company, savings

bank, and savings and loan association as those terms are defined in

section two of this chapter and each out-of-state state bank authorized

to operate and maintain a branch pursuant to article five-C of this

chapter;

(b) "branch office", "branch", or "office" shall not include

electronic facilities as defined by general regulation of the

superintendent of financial services, but shall include a public

accommodation office;

(c) "financial services" includes demand and time deposit accounts,

check cashing services, deposit and withdrawal transactions, sale of

bank or travellers checks and money orders, processing loan

applications, acceptance of loan repayments, and any related services;

and

(d) "facility" and "facilities" includes any building, structure,

vehicle, unit, machine, or device, permanent or temporary, mobile or

stationary, which provides or dispenses financial services of any kind

or description.

6. No provision of this section or any rule or regulation adopted

pursuant thereto shall be deemed or construed as impairing the ability

of any banking organization to close any branch office after complying

with the provisions of subdivision two of this section.