N.Y. Banking Law § 96-d: Banking development districts

§ 96-d. Banking development districts. 1. There is hereby created a

banking development district program, the purpose of which is to

encourage the establishment of bank branches in geographic locations

where there is a demonstrated need for banking services. The

superintendent of financial services shall, in consultation with the

department of economic development, promulgate rules and regulations,

after public hearing and comment, which set forth the criteria for the

establishment of banking development districts. Such criteria shall

include, but not be limited to, the following:

(a) the location, number, and proximity of sites where banking

services are available within the district;

(b) the identification of consumer needs for banking services within

the district;

(c) the economic viability and local credit needs of the community

within the district;

(d) the existing commercial development within the district;

(e) the impact additional banking services would have on potential

economic development in the district;

(f) whether a community is identified as unbanked or underbanked by

the superintendent; and

(g) such other criteria which the superintendent in his or her

discretion shall identify as appropriate.

2. A local government, in conjunction with a bank, trust company or

national bank, may submit an application to the superintendent for the

designation of a banking development district. The superintendent shall

issue a determination on such an application within sixty days of

receiving such application. If an application is approved, the

superintendent shall transmit notification of the designation of a

banking development district to the local government, the bank, trust

company or national bank, the state comptroller, the commissioner of

taxation and finance, the commissioner of the department of economic

development, the temporary president of the senate and the speaker of

the assembly. The designation of a banking development district shall be

valid for fourteen years. Prior to the expiration of a banking

development district designation, the superintendent may extend the

designation for one or more additional five or ten year periods.

2-a. Notwithstanding any other provision of law, an application may be

submitted by a local government in conjunction with a bank, trust

company or national bank which has already opened a bank branch within

such area. In considering the criteria authorized pursuant to

subdivision one of this section, the superintendent shall also take into

account the importance and benefits of preserving the banking services

offered by the existing branch.

3. The establishment of a branch in a banking development district by

a bank, trust company or national bank shall be subject to all

applicable state and federal laws regarding the establishment of branch

offices, including the provisions of section one hundred five of this

article, provided however that the branch application fee required

pursuant to section twenty-nine of this chapter shall be waived for any

such branch. A bank or trust company may submit an application to open a

branch office simultaneously with the submission of the application for

the designation of a banking development district.

4. For the purposes of this section, the term "local government" shall

mean a county, town, city or village.

* 5. (a) Notwithstanding the provisions of subdivision two of section

two hundred thirty-seven of this chapter; for the purposes of this

section, paragraph c of subdivision two of section ten of the general

municipal law, subdivision six of section one hundred five of the state

finance law and section four hundred eighty-five-f of the real property

tax law, any reference to a bank, trust company or national bank shall

be deemed to include a savings bank, savings and loan association,

federal savings and loan association, federal savings bank, credit

union, or federal credit union; provided, however, that such provisions

of law do not grant a savings bank, savings and loan association,

federal savings and loan association, federal savings bank, credit

union, or federal credit union eligibility to accept municipal or public

funds or municipal or public moneys other than for the limited purposes

of the establishment of a branch in a banking development district

pursuant to this section. Any such municipal or public funds or moneys

shall be deposited only at the branch established pursuant to this

section, and any municipal funds or moneys may be deposited only by the

sponsoring municipality in which the branch and banking development

district are located; provided further that any such municipal or public

funds or moneys shall be subject to the same requirements which apply to

municipal or public funds or moneys deposited in a bank, trust company

or national bank and shall also be subject to the provisions of section

one hundred five of the state finance law or section ten of the general

municipal law relating to such deposits.

(b) Notwithstanding any other provision of law, the superintendent of

financial services shall promulgate rules and regulations to authorize

the participation of savings banks, savings and loan associations,

federal savings banks, federal savings and loan associations, credit

unions, and federal credit unions in the program established pursuant to

this section.

* NB Repealed January 1, 2029

6. For the purposes of this section, nothing shall preclude a bank,

trust company or national bank from seeking approval to establish one or

more branches in an existing banking development district where it or

another bank has or is authorized to have a branch. The department shall

have the authority to approve any bank, trust company or national bank

for participation in the banking development district program, and any

branch approved pursuant to this section shall operate in accordance

with this section and is eligible for all the rights and privileges

authorized by this section.