N.Y. General Construction Law § 24-a: Closing of banking organizations on Saturday; Sunday, public holiday or Saturday afternoon banking transactions; emergency bank holidays

§ 24-a. Closing of banking organizations on Saturday; Sunday, public

holiday or Saturday afternoon banking transactions; emergency bank

holidays. 1. Any banking organization lawfully doing business within the

state of New York may be closed on any one or more Saturdays upon the

adoption of a resolution to such effect by a majority vote of the board

of directors or the board of trustees thereof or of the partners in the

case of a private banker. Any one or more of such Saturdays shall, with

respect to any such banking organization which shall be closed thereon

in accordance with the provisions of this subdivision, constitute a

public holiday within the meaning of such term as used in and for all

purposes of section twenty-five and twenty-five-a of this chapter (but

not, in the case of negotiable instruments, for the purposes of

subdivision two of section twenty-five thereof), and shall neither be a

"full business day" nor a banking day within the meaning of such terms

as used in and for all purposes of the uniform commercial code. The term

"banking organization", as used in this section (except where otherwise

defined therein), shall mean any banking organization as defined in the

banking law, any branch or agency of a foreign banking corporation, any

national bank, federal reserve bank, federal savings and loan

association, federal savings bank, federal home loan bank or federal

credit union, and any person or association of persons lawfully carrying

on the business of banking in this state whether incorporated or not. As

used in this section (except where otherwise defined therein), the term

"officers" shall mean the person or persons designated by the board of

directors or trustees of a banking organization, or the partners in the

case of a private banker, to act for the banking organization in

carrying out the provisions of this section; the term "office" shall

mean any place at which a banking organization transacts business other

than its principal office; and the term "person" shall include natural

persons, corporations, partnerships and associations.

2. Nothing in any law of this state shall in any manner whatsoever

affect the validity of, or render void or voidable, the payment

certification or acceptance of a check or other negotiable instrument

under the uniform commercial code or any other transaction by a banking

organization in this state, because done or performed on any Sunday or

public holiday, or on any Saturday between twelve o'clock noon and

midnight, provided such payment, certification, acceptance, or other

transaction would be valid if done or performed on any business day or

before twelve o'clock noon on such Saturday; provided, further, that

nothing in this subdivision shall be construed to compel any banking

organization in this state, which by law or custom is entitled to close

at twelve o'clock noon on any Saturday, to keep open for the transaction

of business or to perform any of the acts or transactions aforesaid, on

any Saturday after such hour except at its own option or to compel any

banking organizations in this state to keep open on a public holiday

except at its own option and then only to the extent it elects to do so.

3. a. The governor is authorized, by proclamation, to designate and

appoint one or more holidays, or holiday periods, to be known as bank

holidays, to be observed throughout the state, or to be observed in a

portion or portions thereof, as specified in such proclamation, if an

emergency as hereinafter defined, shall, in his opinion, require such

action.

b. Whenever the officers of a banking organization are of the opinion

that an emergency, as hereinafter defined, exists which affects one or

more or all the banking organization's offices, they shall have

authority to close one or more or all such offices even though the

governor has not issued and does not issue a proclamation of emergency,

provided however, that provision is made by such officers for the

transaction of the business normally transacted at a closed office at

another office or the principal office of the banking organization,

until further notice. The office or offices so closed shall remain

closed until the officers or, in the case of a banking organization as

defined in the banking law, the superintendent of financial services,

direct that it be opened. A banking organization closing an office or

offices pursuant to this paragraph shall give prompt notice to the

superintendent of financial services of its action.

c. Whenever the officers of a banking organization are of the opinion

that an emergency, as hereinafter defined, exists which affects the

banking organization's principal office, they shall have authority to

close such principal office even though the governor has not issued and

does not issue a proclamation of emergency, provided however, that

provision is made by such officers for the transaction of the business

normally transacted at such principal office, at another office of the

banking organization, until further notice; provided further however,

that if no other office of the banking organization can be so designated

for the transaction of the business normally transacted at the principal

office, the officers may direct that the principal office shall be

closed only with the prior approval of the superintendent of financial

services. The superintendent of financial services, in giving such

approval, may require certification of such official of the federal

government or of the state of New York or a political subdivision

thereof as he deems sufficient to establish that an emergency exists

which affects such banking organization's principal office. A banking

organization closing such principal office pursuant to this paragraph

shall give prompt notice to the superintendent of financial services of

its action.

d. Whenever the officers of a banking organization are of the opinion

that an emergency, as hereinafter defined, exists which adversely

affects the conduct of any business operation or function conducted at

the bank's principal office, they shall have the authority, upon the

prior approval of the superintendent of financial services, not to

conduct such operation or function even though the governor has not

issued and does not issue a proclamation of emergency; provided,

however, that such officers may exercise this authority without such

prior approval if they have in good faith attempted, but been unable, to

contact the superintendent of financial services to request permission

not to conduct such business operation or function; and provided further

the principal office shall not be closed in its entirety pursuant to

this paragraph. No business operation or function shall be closed

pursuant to this paragraph d unless such officers have attempted, but in

good faith found it infeasible to conduct such business operation or

function at another office. A banking organization closing any business

operation or function pursuant to this paragraph shall promptly notify

the superintendent of financial services of its action in a manner

prescribed by the superintendent.

e. The discretion of the officers of any banking organization in

acting pursuant to this subdivision, when exercised in good faith, shall

not be questioned in any court or place.

f. No banking organization and no director, officer or employee of a

banking organization shall be liable to any person for any direct or

indirect loss suffered by such person by reason of the banking

organization's failure or inability to make access to the banking

organization's premises and facilities available to such person or by

reason of the banking organization's failure to perform, or its delay in

performing, any contractual, statutory or other duty assumed by or

imposed upon the banking organization in any capacity when such failure,

inability or delay is caused by the banking organization, or any office

or the principal office thereof, being closed as authorized by this

section.

g. An emergency, within the meaning of this section, shall mean any

condition which may interfere with the conduct of normal banking

operations, in the holiday area, or at one or more or all offices or the

principal office of a banking organization or organizations, or which

poses an imminent or existing threat to the safety and security of

persons or property, or both, including floods, wind, rain, hail or snow

storms, power failures, transportation failures, earthquake, fire,

riots, strikes, civil commotion, labor disputes, enemy action or threat

of enemy action, and any similar or different condition which may

interfere physically with the conduct of normal banking operations in

the holiday area.

h. During such holiday, holidays and holiday periods, provided for in

paragraphs a through c of this subdivision, all banking organizations

may close any or all of their places of business in the holiday area.

The superintendent of financial services may, however, by special or

general regulation, restriction, or order, provide that banking

organizations (as such term is defined in the banking law) and branches

and agencies of foreign banking corporations in this state shall, to the

extent and at such of their places of business as may be directed by

him, carry on such of their normal and usual operations or banking

transactions in the holiday area during such holiday, holidays or

holiday period, as may appear to him to be in the best interests of the

public. Such holiday, holidays or holiday periods shall, with respect to

such place or places of business in the holiday area of any banking

organization which shall be closed thereon in accordance with the

provisions of this subdivision, constitute a public holiday within the

meaning of such term as used in and for all purposes of subdivision one

of section twenty-five and of subdivision one of section twenty-five-a

of this chapter (but not for the purposes of subdivision two of section

twenty-five or of subdivision two of section twenty-five-a thereof), and

shall neither be "full business days" nor banking days within the

meaning of such terms as used in and for all purposes of the uniform

commercial code, to the extent that the performance of obligations under

said code are not directed to be performed by the special or general

regulations, restrictions or orders of the superintendent of financial

services, and shall not be deemed to be public holidays for any other

purpose, or under any other provision of law. If any banking operation

or function is closed pursuant to paragraph d of this subdivision, a

bank holiday shall be deemed to exist, with the same effects and

limitations as set forth in the preceding sentence, with respect to such

banking operation or function.

i. A bank office or principal office that has been closed as

authorized by this section may nonetheless conduct limited operations

and perform banking transactions (i) for the convenience of its

customers or (ii) relating to transactions between that bank and other

banks or persons which have remained open for business or are outside

the holiday area.

j. For purposes of this section, each reference to the superintendent

of financial services shall be deemed to include any official of the

department of financial services to whom authority granted by this

section has been delegated.