N.Y. Banking Law § 9-f: Geographic discrimination in making mortgage loans prohibited

§ 9-f. Geographic discrimination in making mortgage loans prohibited.

1. No banking institution as such term is defined in this section shall

refuse to make a prudent loan upon the security of real property or

otherwise discriminate with respect thereto because of the geographic

location of such property if such property is located within the

geographic area ordinarily serviced by such bank or within the community

within which the principal or any branch office of such banks is

located. A violation of the provisions of this subdivision shall be

subject to the applicable provisions of sections thirty-nine and

forty-four of this chapter.

2. Any person who makes application for such a loan and is refused

such loan may request the superintendent to review the denial of such

application. If the superintendent determines that such loan was prudent

and was denied in violation of subdivision one hereof, the

superintendent shall certify such determination to the state of New York

mortgage agency created pursuant to title seventeen of article eight of

the public authorities law.

3. For the purposes of this section, the term (a) "prudent loan" means

a loan upon the security of real property which is prudent by acceptable

banking standards and is in compliance with all of the provisions of

this chapter and rules and regulations of the superintendent of

financial services; and (b) notwithstanding any other provision of this

chapter or 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, mortgage

bankers, exempt organizations as defined in article twelve-D of this

chapter and foreign banking corporations whether incorporated,

chartered, organized or licensed under the laws of this state or any

other state or the United States.

4. 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.