New York Banking Law

Article 5
Foreign banking corporations and national banks

       Section 
        200.   When foreign banking corporation may transact business in
                 this state.
        200-a. Actions maintained by a foreign banking corporation.
        200-b. Actions maintained against foreign banking corporation;
                 residents; foreign corporations, foreign banking
                 corporations as non-residents.
        200-c. Maintenance of books, accounts and records.
        201.   Conditions to be complied with by foreign banking
                 corporations applying for initial license.
        201-a. Rights and privileges of foreign banking corporation
                 under license; effect of revocation.
        201-b. Fiduciary powers of foreign banking corporations.
        201-c. Notice of acquisition of control or merger.
        202.   Rates of interest; installment obligations; personal loan
                 departments; effect of usury.
        202-a. Restrictions on receiving deposits.
        202-b. Maintenance of assets in this state.
        202-c. Reserves against deposits.
        202-d. Foreign banking corporation may not maintain both
                 agencies and branches in this state.
        202-f. Restrictions on loans, purchases of securities and total
                 liabilities of any one person to New York branch or
                 agency of foreign bank.
        202-g. Succession to agency by branch and to branch by agency.
        202-h. Repayment of deposits standing in the names of minors,
                 trustees, joint depositors or custodians; interpleader
                 in certain actions.
        202-i. Safe deposit business of branches.
        202-j. Power to act as trustee under self-employed retirement
                 trust or individual retirement trust.
        203.   Change of location, name or business.
        204.   Reports of foreign banking corporations; penalties.
        204-a. Payment of claims by foreign banking corporations where
                 adverse claim is asserted; effect of claims or advices
                 originating in, and statutes, rules or regulations
                 purporting to be in force in occupied territory;
                 performance of contracts and repayment of deposits
                 performable or repayable at foreign offices of foreign
                 banking corporations.
        206.   Termination of existence.
        207.   Service of process on unlicensed corporation formed under
                 laws other than the statutes of this state.
        208.   Nondiscriminatory treatment of insured state banks and
                 national banks.
        209.   Restrictions on executive officers of foreign banking
                 corporations and national banks.

  S 200. When foreign banking corporation may transact business in this
state. No foreign banking corporation, other than a bank organized under
the laws of the United States, shall transact in this state the business
of buying, selling, paying or collecting bills of exchange, or of
issuing letters of credit or of receiving money for transmission or
transmitting the same by draft, check, cable or otherwise, or of making
loans, or of receiving deposits, or of exercising the fiduciary powers
specified in section two hundred one-b of this chapter, or transacting
any part of such business, or maintaining in this state its initial
agency or branch for carrying on such business, or any part thereof,
unless such corporation shall have:
  1. Been authorized by its charter to carry on such business and shall
have complied with the laws of the state or country under which it is
incorporated;
  2. Furnished to the superintendent such proof as to the nature and
character of its business and as to its financial condition as he may
require;
  3. Filed in the office of the superintendent (a) a duly executed
instrument in writing, by its terms of indefinite duration and
irrevocable, appointing the superintendent and his successors its true
and lawful attorney, upon whom all process in any action or proceeding
against it on a cause of action arising out of a transaction with its
New York agency or agencies, may be served with the same force and
effect as if it were a domestic corporation and had been lawfully served
with process within the state and (b) a written certificate of
designation, which may be changed from time to time thereafter by the
filing of a new certificate of designation, specifying the name and
address of the officer, agent or other person to whom such process shall
be forwarded by the superintendent;
  4. Received a license duly issued to it by the superintendent as
provided in article two of this chapter and, in the case of a foreign
banking corporation desiring to exercise the fiduciary powers specified
in section two hundred one-b of this chapter, or any part thereof,
received a certificate of authorization duly issued to it by the
superintendent as provided in such section two hundred one-b.
  This section shall not be construed to prohibit foreign banking
corporations which do not maintain an office in this state for the
transaction of business from (1) making loans in this state secured by
mortgages on real property, nor from contracting in this state with a
banking institution engaged in the business of banking under the laws of
this state to acquire from or through such banking institution a part
interest or the entire interest in a loan or evidence of debt which such
banking institution has heretofore or hereafter made, purchased or
acquired, for its own account or otherwise, together with a like
interest in any security and any security instrument proposed to be
given or heretofore or hereafter given to secure or evidence such loan
or evidence of debt; (2) enforcing in this state obligations heretofore
or hereafter acquired by it in the transaction of business outside of
this state, or in the transaction of any business authorized by this
section; (3) acquiring, holding, leasing, mortgaging, contracting with
respect to, or otherwise protecting or conveying property in this state
heretofore or hereafter assigned, transferred, mortgaged or conveyed to
it as security for, or in whole or part satisfaction of a loan or loans
made by it or obligations acquired by it in the transaction of business
outside of this state, or in the transaction of any business authorized
by this section.
  If any foreign banking corporation has opened and occupied an agency
or branch in this state pursuant to the provisions of this chapter, it
may, unless otherwise advised by the superintendent, open and occupy an
additional agency or branch, as the case may be, without having to apply
for the approval of the superintendent, provided that it gives the
superintendent notice of at least thirty days (or such shorter period as
the superintendent in individual cases may approve) before opening and
occupying any such additional office.

  S 200-a. Actions maintained by a foreign banking corporation.
  In maintaining an action or special proceeding in this state, a
foreign banking corporation shall maintain such action or proceeding in
like manner and subject to the same limitations as are applicable in the
case of an action or special proceeding maintained by a domestic banking
organization, except as otherwise prescribed by statute.

  S 200-b. Actions maintained against foreign banking corporation;
residents; foreign corporations, foreign banking corporations as
non-residents.
  1. An action or special proceeding against a foreign banking
corporation may be maintained by a resident of this state for any cause
of action. For purposes of this subdivision one, the term "resident of
this state" shall include any corporation formed under any law of this
state.
  2. Except as otherwise provided in this chapter, an action or special
proceeding against a foreign banking corporation may be maintained by
another foreign corporation or foreign banking corporation or by a
non-resident in the following cases only:
  (a) where the action is brought to recover damages for the breach of a
contract made or to be performed within this state, or relating to
property situated within this state at the time of the making of the
contract;
  (b) where the subject matter of the litigation is situated within this
state;
  (c) where the cause of action arose within this state, except where
the object of the action or special proceeding is to affect the title of
real property situated outside this state;
  (d) where the action or special proceeding is based on a liability for
acts done within this state by a foreign banking corporation;
  (e) where the defendant is a foreign banking corporation doing
business in this state.
  3. The limitations contained in subdivision two do not apply to a
corporation formed and existing under the laws of the United States and
which maintains an office in this state.

  S 200-c. Maintenance of books, accounts and records. Every foreign
banking corporation licensed pursuant to this chapter to maintain one or
more branches, agencies or representative offices in this state shall
maintain or make available at any such branch, agency or representative
office appropriate books, accounts and records reflecting (i) all
transactions effected by or on behalf of the branch, agency or
representative office and (ii) all actions taken in this state by
employees of the foreign banking corporation located in this state to
effect transactions on behalf of any office of such foreign banking
corporation located outside this state.

  S 201. Conditions to be complied with by foreign banking corporations
applying for initial license. Every foreign banking corporation before
being licensed by the superintendent to transact in this state the
business of buying, selling, paying or collecting bills of exchange, or
of issuing letters of credit or of receiving money for transmission or
transmitting the same by draft, check, cable or otherwise, or of making
loans, or receiving deposits, and before being authorized by the
superintendent to exercise the fiduciary powers specified in section two
hundred one-b of this chapter, or any part of such business, or before
maintaining in this state its initial agency or branch for carrying on
such business or any part thereof, shall subscribe and acknowledge and
submit to the superintendent at his office, an application certificate
in duplicate, which shall specifically state:
  1. The name of such foreign banking corporation.
  2. The place where its business is to be transacted in this state; and
if such business is to be conducted through an agency in this state, the
name of the agent or agents through whom such business is to be
transacted; and if such business is to be transacted in this state by a
branch of said foreign banking corporation, the name of the person who
shall be in charge of the business and affairs of such branch.
  3. The amount of its capital actually paid in cash and the amount
subscribed for and unpaid.
  4. The actual value of the assets of such corporation, which must be
at least one million dollars in excess of its liabilities; and a
complete and detailed statement of its financial condition as of a date
prior to the date of such application as the superintendent in his
discretion may determine.
  At the time such application certificate is submitted to the
superintendent, such corporation shall also submit a duly exemplified or
otherwise authenticated copy of its charter and a verified or otherwise
authenticated copy of its by-laws, or an equivalent thereof satisfactory
to the superintendent, and pay an investigation fee to be collected by
the superintendent in the sum of two thousand dollars.

  S 201-a. Rights and privileges of foreign banking corporation under
license; effect of revocation. 1. When the superintendent shall have
issued a license as provided in section twenty-six of this chapter to
any such foreign banking corporation, it may engage in the business
specified in sections two hundred and two hundred one of this article
either as an agency or as a branch at the location specified in such
license for a period not exceeding one year from the date of such
license or, if such license so provides, until such license is
surrendered or revoked. A license issued for a period not exceeding one
year may, upon the approval of the superintendent and the banking board,
be renewed as provided in section twenty-six of this chapter. No such
license shall be transferable or assignable. Every such license shall be
at all times conspicuously displayed in the place of business specified
therein. In the event that such license shall have been revoked by the
superintendent, as provided in article two of this chapter, it shall be
surrendered to the superintendent within twenty-four hours after such
corporation has received written notice of such revocation.
  2. Whenever the superintendent shall have revoked any such license and
shall have taken the action to make such revocation effective specified
in article two of this chapter, all the rights and privileges of such
foreign banking corporation to transact the business thus licensed shall
forthwith cease and determine.

  S 201-b. Fiduciary powers of foreign banking corporations. Every
foreign banking corporation licensed pursuant to article two of this
chapter to maintain one or more branches or agencies in this state, and
holding an authorization certificate issued pursuant to this section
may, subject to such further limitations and restrictions as the
superintendent may prescribe, exercise the powers described in sections
one hundred, one hundred-a, one hundred-b and one hundred-c of this
chapter to the same extent, and subject to the same requirements and
restrictions and effect as apply in the case of trust companies in the
exercise of such powers.
  The superintendent shall, within sixty days of the receipt by him of a
request for such authorization, issue to a foreign banking corporation
licensed pursuant to article two of this chapter to maintain one or more
branches or agencies in this state, a certificate of authorization to
exercise the fiduciary powers referred to in this section at all or at
any one or more of its authorized branches or agencies, if he shall be
satisfied that such powers will be exercised in accordance with the
requirements of this chapter. The superintendent may, after giving
notice of the contemplated action and reasonable opportunity to be
heard, revoke any such certificate of authorization if he shall find
that a foreign banking corporation so authorized has failed to conform
to any requirement of this chapter relating to the conduct of such
business. Such revocation may apply to one or more of the authorized
branches or agencies of a foreign banking corporation.

  S 201-c. Notice of acquisition of control or merger.
  1. A foreign banking corporation licensed pursuant to article two of
this chapter to maintain a branch or agency in this state shall file
with the superintendent a notice, in such form and containing such
information as the superintendent may prescribe, no later than fourteen
calendar days after such foreign banking corporation becomes aware of
any acquisition of control of such corporation or merges with another
foreign banking corporation.
  2. Control, for purposes of this section, means any person or entity,
or group of persons or entities acting in concert, directly or
indirectly, owning, controlling or holding with power to vote,
twenty-five percent or more of any class of voting stock of such foreign
banking corporation, or having the ability in any manner to elect a
majority of the directors of such foreign banking corporation, or
otherwise exercising a controlling influence over the management and
policies of such foreign banking corporation as defined by the
superintendent by regulation.

  S 202. Rates of interest; installment obligations; personal loan
departments; effect of usury. 1. Except as otherwise provided in this
section, no foreign banking corporation licensed pursuant to article two
of this chapter to maintain one or more branches in this state shall in
this state take, receive, reserve or charge on any loan or discount
made, or upon any note, bill of exchange or other evidence of debt,
negotiable or otherwise, interest, as computed pursuant to this section,
at a rate greater than the rate prescribed by the banking board pursuant
to section fourteen-a of this chapter, or, if no rate has been
prescribed, six percentum per annum or two dollars if the interest so
computed is less than that amount. Such interest may be taken in
advance, reckoning the days for which the note, bill or evidence of debt
has to run. If interest is so taken in advance and the maturity of the
debt is accelerated and judgment is obtained, or the debt is otherwise
paid prior to its normal date of maturity, the foreign banking
corporation shall refund to the obligor or his legal representative, as
the case may be, the unearned interest previously deducted and the
unused portion of any premiums charged for insuring the obligor under a
group credit insurance policy, such refund to be calculated in
accordance with the method described in paragraph (e) of subdivision
four of this section. A reasonable charge by a foreign banking
corporation so licensed for the collection of a bona fide bill of
exchange, note or other evidence of debt payable at a place other than
the place where purchased, discounted or sold, in addition to the
interest, shall not be considered interest for the purpose of any law
regulating the maximum rate of interest which may be charged, taken or
received.
  2. Any foreign banking corporation licensed pursuant to article two of
this chapter to maintain one or more branches in this state may purchase
or otherwise acquire from the payee or holder thereof any obligation in
writing to pay in installments all or part of the price of personal
property or that of the performance of services, whether that obligation
be a negotiable promissory note or other evidence of debt, doing so for
such price or other consideration and upon such additional terms and
conditions as may be mutually agreeable.
  3. Upon advances of money repayable on demand to an amount not less
than five thousand dollars made upon warehouse receipts, bills of
lading, certificates of stock, certificates of deposit, bills of
exchange, bonds or other negotiable instruments, pledged as collateral
security for such repayment, any foreign banking corporation licensed
pursuant to article two of this chapter to maintain one or more branches
in this state may receive or contract to receive and collect as
compensation for making such advances any sum which may be agreed upon
by the parties to such transaction.
  4. (a) A foreign banking corporation licensed pursuant to article two
of this chapter to establish and maintain one or more branches in this
state may operate a personal loan department at all or any one or more
of such branches provided that prior written notice of the establishment
of such department or departments is delivered to the superintendent.
The records of such department shall be kept in such form as the
superintendent may from time to time prescribe. The superintendent may,
after giving notice of the contemplated action and reasonable
opportunity to be heard, order that the operation of such personal loan
department or departments be discontinued if he shall find that a
foreign banking corporation operating the same has failed to conform to
any requirement of this subdivision.  The superintendent may by order
forthwith, and for a period not to exceed thirty days pending further
investigation, suspend the operation of any such department if he shall
have reasonable cause to believe that the conduct of such foreign
banking corporation is not in full compliance with the requirements of
this subdivision. Such suspension may apply to one or more of the
branches of a foreign banking corporation. The superintendent may
terminate or modify such orders if he shall be satisfied that such
department will be operated in accordance with the requirement of this
subdivision. No order of discontinuance or temporary order of
discontinuance shall impair or affect the obligation of any preexisting
lawful loan or advance from a foreign banking corporation to any
borrower.
  * (b) Each foreign banking corporation operating such personal loan
department or departments may make loans and charge interest thereon,
which may be calculated on the actual unpaid principal balances of the
loan or in the case of a loan commitment from the date of each advance
thereunder for the actual time outstanding, according to a generally
accepted actuarial method at a fixed or variable rate in accordance with
the provisions of the evidence of the indebtedness, or taken in advance,
computed from the date of the loan, or in the case of a loan commitment
from the date of each advance thereunder, to the date of the last
installment payable thereunder, at the rate or rates agreed to by such
foreign banking corporation and the borrower, with respect to any loan
which is repayable at regular periodic intervals of not more than one
month over a period from the date of the loan not exceeding (i)
thirty-seven months, if the face amount of the loan is for not more than
twelve hundred dollars, or (ii) any number of months agreed to by such
foreign banking corporation and the borrower, (A) if the face amount of
the loan is for more than twelve hundred dollars, (B) if the loan is for
more than twelve hundred dollars, and is made for a commercial or
business use or purpose or for investment in or purchase of an
unincorporated business or commercial enterprise, (C) if the loan or
loan commitment is made for the purpose of defraying the cost of
attendance of one or more students the income of whose family is fifteen
thousand dollars or more per year at the time the loan or loan
commitment is made at a university or college or for the purpose of
defraying the cost of attendance of one or more students at an
elementary or secondary school providing education required for minors,
or (D) if the loan or advance of credit is made for the purpose of
financing alterations, repairs and improvements upon or in connection
with, or as the superintendent may authorize the equipping of existing
structures, and the building of new structures, upon urban, suburban, or
rural real property (including the restoration, rehabilitation,
rebuilding and replacement of such improvements which have been damaged
or destroyed by earthquake, conflagration, tornado, hurricane, cyclone,
flood or other catastrophe), by the owners thereof or by lessees of such
real property under a lease expiring not less than six months after the
maturity of the loan or advance of credit or by lessees under
proprietary leases from corporations or partnerships formed for the
purpose of the cooperative ownership of real estate.  The total unpaid
principal balances of any one or more loans made by such foreign banking
corporation to the borrower pursuant to this subdivision shall be
determined by agreement between such foreign banking corporation and the
borrower. If the loan is made for a period of one year or more,
provision may be made in the note, instrument or other evidence of debt,
for the omission of payments during not more than any three specified
months in any twelve-month period, but the maximum period of
thirty-seven months, shall not be exceeded. On any loan with a variable
rate of interest made pursuant to this paragraph, the rate shall be
determined at regular intervals as set forth in the evidence of
indebtedness and in accordance with such regulations as the banking
board shall prescribe but said rate shall not vary more often than once
in any three month period and shall be based on a published index that
is (a) readily available, (b) independently verifiable, (c) beyond the
control of such foreign banking corporation and (d) approved by the
superintendent.
  The banking board shall adopt regulations, including but not limited
to: (a) providing for disclosure to the borrower by such foreign banking
corporation of the circumstances under which the rate may increase, any
limitations on the increase, the effect of an increase and an example of
the payment terms that would result from an increase; (b) providing for
disclosure to the borrower by such foreign banking corporation of a
history of the fluctuations of the index over a reasonable period of
time; and (c) providing for notice to the borrower from such foreign
banking corporation prior to any rate increase or change in the terms of
payment.
  * NB There are two par (b)`s
  * (b) Each foreign banking corporation operating such personal loan
department or departments may make loans and charge interest thereon,
which may be calculated on the actual unpaid principal balances of the
loan or in the case of a loan commitment from the date of each advance
thereunder for the actual time outstanding, according to a generally
accepted actuarial method at a variable rate and in accordance with the
provisions of the evidence of indebtedness, or taken in advance,
computed from the date of the loan, or in the case of a loan commitment
from the date of each advance thereunder, to the date of the last
installment payable thereunder, at the rate or rates agreed to by the
foreign banking corporation and the borrower, with respect to any loan
which is repayable at regular periodic intervals of not more than one
month over a period from the date of the loan not exceeding (i)
thirty-seven months, if the face amount of the loan is for not more than
twelve hundred dollars, or (ii) sixty-one months, if the face amount of
the loan is for more than twelve hundred dollars or (iii) eighty-five
months, (a) if the face amount of the loan is for more than twelve
hundred dollars, and is made for a commercial or business use or purpose
or for investment in or purchase of an unincorporated business or
commercial enterprise, or (b) if the face amount of the loan or loan
commitment is thirty thousand dollars or less, and is made for the
purpose of defraying the cost of attendance of one or more students the
income of whose family is fifteen thousand dollars or more per year at
the time the loan or loan commitment is made at a university or college
or for the purpose of defraying the cost of attendance of one or more
students at an elementary or secondary school providing education
required for minors.  The total unpaid principal balances of any one or
more loans made by such foreign banking corporation to the borrower
pursuant to this subdivision shall be determined by agreement between
such foreign banking corporation and the borrower except to the extent
that the loan is made pursuant to paragraph (b-1) of this subdivision,
or item (b) of clause (iii) of this paragraph to defray the cost of
attendance of a student or students at a university or college or at an
elementary or secondary school providing education required for minors
in an amount not in excess of thirty thousand dollars. If the loan is
made for a period of one year or more, provision may be made in the
note, instrument, or other evidence of debt, for the omission of
payments during not more than any three specified months in any
twelve-month period, but the maximum period of thirty-seven months,
sixty-one months, or eighty-five months, whichever may be applicable,
shall not be exceeded. On any loan with a variable rate of interest made
pursuant to this paragraph, the rate shall be determined at regular
intervals as set forth in the evidence of indebtedness and in accordance
with such regulations as the banking board shall prescribe but said rate
shall not vary more often than once in any three month period and shall
be based on a published index that is (a) readily available, (b)
independently verifiable, (c) beyond the control of the foreign banking
organization and (d) approved by the superintendent.
  The banking board shall adopt regulations, including but not limited
to: (a) providing for disclosure to the borrower by the foreign banking
corporation of the circumstances under which the rate may increase, any
limitations on the increase, the effect of an increase and an example of
the payment terms that would result from an increase; (b) providing for
disclosure to the borrower by the foreign banking corporation of a
history of the fluctuations of the index over a reasonable period of
time; and (c) providing for notice to the borrower from the foreign
banking corporation prior to any rate increase or change in the terms of
payment.
  * NB (There are 2 par (b)`s)
  (c) The rate of interest authorized by this subdivision shall be
inclusive of all charges incident to investigating and making any loan.
No fee, commission, expense, or other charge whatsoever in addition
thereto shall be taken, received, reserved, or contracted for, except
(i) the fees payable to the appropriate public officer to perfect any
lien or other security interest taken to secure the loan or the premium,
not in excess of such filing fee, payable for any insurance in lieu of
such filing; (ii) in case of default, and in accordance with the
provisions of the instrument evidencing the obligation, either a fine in
an amount not to exceed five cents per dollar on any installment which
has become due and remained unpaid for a period in excess of ten days,
but no such fine shall exceed five dollars and only one fine shall be
collected on any such installment regardless of the period during which
it remains in default, and provided further that should the aggregate of
such fines collected in connection with any loan exceed two per centum
of such loan, or in any event twenty-five dollars, the foreign banking
corporation shall refund such excess to the borrower within sixty days
after the loan is paid in full, or, subject to an allowance of unearned
interest attributable to the amount in default, interest on each amount
past due at a rate not in excess of the rate provided for in the
instrument evidencing the obligation; (iii) the actual expenditures,
including reasonable attorney`s fees for necessary court process, and
(iv) in case the foreign banking corporation insures a borrower under a
group life insurance policy, group health insurance policy, group
accident insurance policy, or group health and accident insurance
policy, or requires insurance on personal property securing any such
loan, an amount not in excess of the premiums chargeable in accordance
with rate schedules then in effect and on file with the superintendent
of insurance for such insurance by the insurer. No foreign banking
corporation shall require a borrower to place any sum on deposit, or to
make deposits in lieu of regular periodic installment payments, or to do
or refrain from doing any other act which would entail additional
expense or sacrifice, as a condition precedent to granting a loan under
the authority of this subdivision except in connection with a loan or
loan commitment made for the purpose of defraying the cost of education
of one or more students at a university or college or at an elementary
or secondary school providing education required for minors under such
terms and conditions as the superintendent may from time to time
approve. Notwithstanding the provisions of this paragraph no refund of
excess fines shall be required if it amounts to less than one dollar.
  (d) In each application for a loan under this subdivision and in each
note, instrument or other evidence of debt given by a borrower to
evidence such a loan, where such loan is not subject to the provisions
of the act of congress entitled "Truth in Lending Act" and the
regulations thereunder, as such act and regulations may from time to
time be amended, the rate of charge (stating any minimum as permitted by
this subdivision four), shall be expressed either in accordance with the
method prescribed by such act of congress or:  (i) as a rate in dollars
per annum discount per one hundred dollars face amount of loan, or (ii)
as the rate or rates agreed to by the foreign banking corporation and
the borrower.
  (e) A borrower may prepay the loan in full or, with the consent of the
foreign banking corporation, may refinance the loan.  If the interest is
calculated on the actuarial basis or if the evidence of the indebtedness
provides that the rate of interest may vary from time to time, a
borrower may prepay the loan in full without penalty.  If interest was
taken in advance, in the event of such prepayment or refinancing, the
foreign banking corporation shall refund: (1) the unearned portion of
the interest to the borrower the amount of which portion shall be
determined according to a generally accepted actuarial method; provided,
however, that if the amount of interest previously deducted (i) was less
than ten dollars, no refund shall be required; or (ii) exceeded the sum
of ten dollars and the earned interest is less than that amount, the
foreign banking corporation may retain such an additional amount as will
bring the earned interest to the sum of ten dollars and refund the
remainder, and provided further, that unless the loan is refinanced, no
refund shall be required if it amounts to less than one dollar; and (2)
if a charge was made to the borrower for premiums for insuring the
borrower under a group life insurance policy, or under a group-health,
group-accident or group health and accident insurance policy, the excess
of the charge to the borrower therefor over the premiums paid or payable
by the foreign banking corporation, if such premiums were paid or
payable by the foreign banking corporation periodically, or the refund
for such insurance premium received or receivable by the foreign banking
corporation, if such premium was paid or payable in a lump sum by the
foreign banking corporation, provided that no such refund shall be
required if it amounts to less than one dollar. In the event (i) the
maturity of the loan is accelerated due to the default of the borrower
or otherwise and judgment is obtained, or (ii) repayment is made
pursuant to any insurance policy for which a charge was made to the
borrower for the premiums thereon, the borrower or his legal
representative, as the case may be, shall be entitled to the same refund
as if the loan had been prepaid in full on the date of acceleration or
repayment.
  (f) A foreign banking corporation may, upon agreement with the
borrower, extend the scheduled due date or defer the scheduled payment
of all or any part of any installment or installments payable under the
loan. The agreement for such extension or deferment must be in writing
and signed by the borrower. The foreign banking corporation may charge
and contract for the payment of an extension or deferral charge by the
borrower and collect and receive the same, at the rate or rates agreed
to by the foreign banking corporation and the borrower, on the amount of
the installment or installments, or part thereof, extended or deferred
for the period of extension or deferral. Such period shall not exceed
the period from the date when such extended or deferred installment or
installments or part thereof, would have been payable in the absence of
such extension or deferral, to the date when such installment or
installments or part thereof, are made payable under the agreement of
extension or deferment; except that a minimum charge of one dollar for
the period of extension or deferral may be made in any case where the
extension or deferral charge, when computed at such rate, amounts to
less than one dollar. Such agreement may also provide for the payment by
the borrower of the additional cost to the foreign banking corporation
bank of premiums for continuing in force, until the end of such period
of extension or deferral, any insurance coverages provided in connection
with the loan subject to the other provisions of this subdivision.
  5. (a) Each foreign banking corporation operating a personal loan
department or departments pursuant to paragraph (a) of subdivision four
hereof may establish a credit under a written agreement with a borrower,
pursuant to which one or more loans or advances to or for the account of
the borrower may be made from time to time, by means of honoring one or
more checks or other written orders or requests of the borrower and may
charge interest on such loans and advances at the rate permitted by
paragraph (b) of this subdivision, provided such loans and advances
comply with the provisions of this subdivision. This subdivision does
not authorize any foreign banking corporation to make any loan or
advance in connection with the purchase or lease of goods or services by
means of a credit card as defined in section five hundred eleven of the
general business law, except for a loan or advance resulting from the
use of a card which may be used to access a deposit account and a line
of credit associated with that account. The records of such loans and
advances shall be kept in such form as the superintendent may from time
to time prescribe.
  (b) Such agreement may provide for interest on the unpaid aggregate
principal amount of such loans and advances from time to time
outstanding at the rate or rates agreed to by the foreign banking
corporation and the borrower, as computed pursuant to this section,
including and in accordance with the provisions of the agreement, rates
that may vary from time to time, reckoned on each loan or advance from
the date thereof, calculated on any of the following bases: (i) on the
unpaid principal amount of such loans and advances from time to time
outstanding, or (ii) for each month on an average balance outstanding
determined by dividing by two the sum of the balances of unpaid
principal of such loans and advances outstanding on two dates during
such month, as specified in such agreement; the first of which dates
being not later than the fifteenth day of such month and the second
being not earlier than the sixteenth day of such month and not less than
ten nor more than twenty days after the first date, or (iii) for each
month on a fixed amount selected from a schedule, which fixed amount may
exceed the average daily balance under clause (i) above, or the average
balance if determined under clause (ii) above, by a differential of not
more than five dollars, provided the same fixed amount is also used for
computing interest for any month for which such balance exceeds said
fixed amount by any amount up to at least the same differential. For
purposes of this subdivision, a month may but need not be a calendar
month, and a foreign banking corporation computing interest on a daily
basis may charge for each day one thirtieth of the monthly interest
rate. No amendment to any agreement adding or deleting a provision that
the rate of interest may vary from time to time, no imposition of an
annual fee permitted by paragraph (e) of this subdivision or, unless the
agreement provides for a rate of interest that may vary from time to
time, no increase in the rate of interest being charged shall take
effect unless: (a) at least thirty days prior to the effective date of
such amendment, imposition or increase, a written notice has been mailed
or delivered to the borrower that clearly and conspicuously describes
such amendment, imposition or increase and the indebtedness to which it
applies and states that the incurrence by the borrower or another person
authorized by him of any further indebtedness under the plan to which
the agreement relates on or after the effective date specified in such
notice shall constitute acceptance of such amendment, imposition or
increase and (b) either the borrower agrees in writing to such
amendment, imposition or increase or the borrower or another person
authorized by him incurs such further indebtedness on or after the
effective date stated in such notice; provided that in no event shall
any such amendment or increase take effect with respect to (i) the
unpaid aggregate principal amount of loans or advances representing
indebtedness outstanding prior to January first, nineteen hundred
eighty-one and (ii) the unpaid aggregate principal amount of loans or
advances representing indebtedness incurred, under or pursuant to an
agreement in effect on the effective date of this paragraph, between
January first, nineteen hundred eighty-one and the effective date of
such amendment or increase specified in the first notice mailed or
delivered pursuant to clause (a). Indebtedness outstanding prior to
January first, nineteen hundred eighty-one, for the purpose of clause
(i) above and indebtedness outstanding prior to the effective date of an
increase for purposes of clause (ii) above shall be determined on the
basis of crediting payments and other credits first to that portion of
any such indebtedness representing interest charges, insurance premiums,
service charges and fines and then to that portion representing the
principal amount of loans or advances in the order in which made. The
provisions of this paragraph permitting an increase in a rate of
interest shall not apply in the case of an agreement which expressly
prohibits changing of interest rates or which provides limitations on
changing of interest rates which are more restrictive than the
requirements of this paragraph. An amendment to an agreement deleting a
provision that the rate of interest may vary from time to time may not
become effective within one year from the later of the effective date of
the agreement or the effective date of an amendment to an agreement
adding a variable rate provision. On any loans or advances with rates of
interest that may vary from time to time made pursuant to this
paragraph, each rate shall be determined at regular intervals as set
forth in the agreement and in accordance with such regulations as the
banking board shall prescribe but said rate shall not vary more often
than once in any three month period and shall be based on a published
index that is (a) readily available, (b) independently verifiable, (c)
beyond the control of the foreign banking corporation and (d) approved
by the superintendent.  Such loan rate shall be based on the index
values, or the index numbers plus or minus additional percentage points
provided, however, that variations in the rate must correspond directly
to the movements of the index values plus or minus additional percentage
points only. Once such rate is established no foreign banking
corporation may add any factors to increase the rate other than
variations in the established index without the prior approval of the
banking board.
  The banking board shall adopt regulations with respect to agreements
that provide for a variable rate of interest, including but not limited
to:  (a) providing for disclosure to the borrower by the foreign banking
corporation of the circumstances under which the rate may increase, any
limitations on the increase, the effect of an increase and an example of
the payment terms that would result from an increase; (b) providing for
disclosure to the borrower by the foreign banking corporation of a
history of the fluctuations of the index over a reasonable period of
time; and (c) providing for notice to the borrower from the foreign
banking corporation prior to any rate increase or change in the terms of
payment.
  (c) The aggregate unpaid principal amount of all such loans and
advances to a borrower made pursuant to this subdivision by a foreign
banking corporation at any one time outstanding shall, be determined by
agreement between such foreign banking corporation and the borrower
except (i) in the case of a loan or loan commitment in an amount not in
excess of thirty thousand dollars made for the purpose of defraying the
cost of attendance at a college or university of one or more students
the income of whose family is fifteen thousand dollars or more per year
at the time the loan or loan commitment is made or for the purpose of
defraying the cost of attendance of one or more students at an
elementary or secondary school providing education for minors, or (ii)
to the extent that such loans or advances are made pursuant to a written
agreement providing for establishing credits for a primarily commercial
or business use or purpose or for investment in or purchase of an
interest in an unincorporated business or commercial enterprise.
  (d) The aggregate unpaid principal amount of all loans and advances
outstanding at any time pursuant to this subdivision shall be repayable
in substantially equal monthly installments within not more than
sixty-two months thereafter or within eighty-six months if the loan or
loan commitment is made for the purpose of defraying the cost of
attendance at a college or university of one or more students the income
of whose family is fifteen thousand dollars or more per year at the time
the loan or loan commitment is made or for the purpose of defraying the
cost of attendance of one or more students at an elementary or secondary
school providing education required for minors, until there is an
additional borrowing; provided, however, that nothing herein shall
prohibit a foreign banking corporation from providing in any agreement
for the omission of payments for three consecutive specified months
during any consecutive twelve month period. The initial installment of
any loan or advance may be deferred for a period of not more than
sixty-five days from the date of such loan or advance; provided,
however, that the installments payable during any such period on any
prior loans or advances shall not be affected by any such deferment.
Subject to any such deferment, each installment shall be payable in an
amount not less than one-sixty-first, or one-eighty-fifth in the case of
a loan or loan commitment made for the purpose of defraying the cost of
attendance of one or more students at a college or university or an
elementary or secondary school providing education required for minors,
of the aggregate unpaid principal amount of all loans and advances
outstanding as of the end of the month in which the last loan, advance
or refinancing occurred; provided, however, that an agreement (1) may
provide that such one-sixty-first or one-eighty-fifth payment be based
on the maximum credit specified therein, and (2) may require larger
installment payments; the balance for such purpose and for clause (i) of
this paragraph may be deemed to include or exclude the amount of any
unpaid installments then or theretofore due.
  (i) An agreement may require a minimum installment not exceeding
twenty dollars.
  (ii) The borrower may at any time prepay the amount owing in part or
in full, with interest to the date of prepayment.
  (iii) Notwithstanding the foregoing provisions of this paragraph, each
installment or other amount paid by the borrower to the foreign banking
corporation may be applied to interest, insurance premiums, service
charges, fines and principal in the order named, or in any such manner
as the agreement may provide. The term "installment" may be deemed to
include or exclude amounts to be applied to interest, insurance
premiums, service charges and fines.
  (e) The rate of interest authorized by this subdivision shall be
inclusive of all charges to the borrower incident to investigating and
making any such loan or advance. No fee, commission, expense, or other
charge to the borrower whatsoever in addition thereto shall be taken,
received, reserved, or contracted for, except, if it is so provided in
the agreement, (i) a service charge not in excess of twenty-five cents
upon each such check or other written order or request; (ii) in case of
default, in addition to interest, a fine in an amount not to exceed four
cents per dollar of principal of any installment which has become due
and remained unpaid for a period in excess of ten days, other than an
installment the maturity of which has become accelerated, but no such
fine shall exceed five dollars and only one fine shall be collected on
any such installment regardless of the period during which it remains in
default, and provided further that should the aggregate at any time of
such fines collected in respect of defaults during any calendar year
exceed fifteen dollars, the foreign banking corporation shall, within
sixty days, apply such excess fine collected to repayment of principal,
if any, of such loans and advances outstanding at the time of such
application or refund the amount of such excess, if one dollar or more,
to the borrower; (iii) the actual expenditures, including reasonable
attorneys` fees for necessary court process; and (iv) in case the
foreign banking corporation insures a borrower under a group life
insurance policy, or under a group health, group accident or group
health and accident insurance policy, an amount for each month which,
notwithstanding any other law, may be computed on the amount of the
borrower`s entire unpaid indebtedness under this subdivision except in
the case of a loan or loan commitment made under this subdivision for
educational purposes as specified in subparagraph (i) of paragraph (c)
of this subdivision, and then in an amount no greater than the unpaid
balance of the borrower`s scheduled periodic payments, whether due or
not due, upon the loan or loan commitment, at a rate not in excess of
the premiums chargeable for such month in accordance with rate schedules
then in effect and on file with the superintendent of insurance for such
insurance by the insurer; and (v) if loans or advances may be obtained
by use of a credit card issued by the foreign banking corporation to the
borrower, an annual fee for membership in the credit card plan, which
fee shall not be deemed interest for any purposes of law.
  (f) No foreign banking corporation shall require a borrower to keep
any sum on deposit, or to make deposits in lieu of regular periodic
installment payments, or to do or refrain from doing any other act which
would entail additional expense or sacrifice, as a condition precedent
to the entering into of the agreement or granting of a loan or advance
under the authority of this subdivision, except in connection with a
loan or loan commitment made for the purpose of defraying the cost of
education of one or more students at a university or college or at an
elementary or secondary school providing education required for minors
under such terms and conditions as the superintendent may from time to
time approve, provided, however, that nothing herein shall be construed
to prohibit a borrower from agreeing that such loans and advances may be
disbursed by crediting a demand deposit account to be opened or
maintained by the borrower on the same terms as are offered generally by
the foreign banking corporation to all or any class or classes of demand
deposit customers.
  5-a. A foreign banking corporation licensed pursuant to article two of
this chapter to maintain one or more branches in this state may make
loans secured by mobile home chattel paper evidencing a monetary
obligation incurred to finance the purchase of a mobile home located at
the time of such purchase, or to be located within ninety days, at a
semi-permanent site within the state or in a contiguous state and to be
maintained as a residence of the borrower, the borrower`s spouse, child,
grandchild, parent or grandparent.
  (1) For this subdivision:
  (i) "mobile home chattel paper" means written evidence of both a
monetary obligation and a security interest of first priority in a
mobile home and any equipment installed or to be installed therein; and
  (ii) "mobile home" or "manufactured home" means a structure,
transportable in one or more sections, which in the traveling mode, is
eight body feet or more in width or forty body feet or more in length,
or when erected on site, is three hundred twenty or more square feet,
and which is built on a permanent chassis and designed to be used as a
dwelling with or without a permanent foundation when connected to
required utilities, and includes the plumbing, heating, air-conditioning
and electrical systems contained therein.
  (2) If the loan is for the purpose of financing the purchase of a new
mobile home,
  (i) it shall mature not later than two hundred forty months after the
date thereof, and
  (ii) the amount advanced shall not exceed one hundred per cent of the
sum of (a) the manufacturer`s invoice price of such mobile home
(including any installed equipment), excluding freight, plus (b) the
invoice price of the manufacturer of any new equipment installed or to
be installed by the dealer, excluding freight.
  (3) If the loan is for the purpose of financing the purchase of a used
mobile home,
  (i) it shall mature not later than two hundred forty months after the
date of the loan, and
  (ii) the amount advanced shall not exceed one hundred per cent of the
purchase price of the used mobile home actually paid or the wholesale
value of such mobile home (including any installed equipment) as
established in the dealer`s market, whichever is the lower.
  (4) The loan shall be payable in equal or substantially equal monthly
installments calculated from the date of the loan. Interest, which may
be taken in advance, may be charged thereon, computed from the date of
the loan to the date of the last installment payable thereunder, if the
loan has a maturity (i) not exceeding thirty-seven months, at a rate not
to exceed six dollars per annum discount per one hundred dollars of the
face amount or ten dollars if the interest so computed is less than that
amount, or (ii) exceeding thirty-seven months, at a rate not to exceed
five dollars per annum discount per one hundred dollars of the face
amount or ten dollars, if the interest so computed is less than that
amount; provided that the interest which may be charged, if it exceeds
ten dollars, shall not exceed one per cent per month on the unpaid
principal balance.
  (5) The authorized interest shall include all charges incident to
investigating and making any loan. No fee, commission, expense or other
charge shall be permitted except that the foreign banking corporation
may contract to charge the borrower (i) the fees payable to a public
officer to perfect any lien or other security interest taken to secure
the loan, or the premium, not in excess of such fee, payable for any
insurance in lieu of such filing; (ii) in case of default, and in
accordance with the instrument evidencing the obligation, either a fine
in an amount not to exceed five per cent on any installment which has
become due and remained unpaid for a period in excess of ten days, but
no such fine shall exceed five dollars and only one fine shall be
collected on any such installment regardless of the duration of the
default, and provided further that should the aggregate of such fines
collected in connection with any loan exceed two per cent of such loan
or twenty-five dollars the foreign banking corporation shall refund such
excess within sixty days after the loan is paid in full, or, subject to
an allowance of unearned interest attributable to the amount in default,
interest on each amount past due at a rate not in excess of one per cent
per month during the period of delinquency; (iii) the actual

Article 5-B, Continued . . .

  
expenditures, including reasonable attorney`s fees for necessary court
process, and (iv) in case the foreign banking corporation insures a
borrower under a group life insurance policy, or under a group health,
group accident or group health and accident insurance policy, or
requires insurance on the property securing such loan, an amount not in
excess of the premiums lawfully chargeable. No foreign banking
corporation shall require a borrower to place any sum on deposit, or to
make deposits in lieu of regular periodic installment payments, or to do
or refrain from doing any other act which would entail additional
expense or sacrifice, as a condition of a mobile home loan, as the
superintendent may from time to time approve. No refund of excess fines
shall be required if it amounts to less than one dollar.
  (6) A borrower may prepay the loan in full or, with the consent of the
foreign banking corporation, may refinance the loan. In such event, the
foreign banking corporation shall refund: (1) the unearned portion of
the interest to the borrower the amount of which portion shall be
determined accordingly to a generally accepted actuarial method;
provided that if the interest previously deducted (i) was less than ten
dollars, no refund shall be required; or (ii) exceeded ten dollars and
the earned interest is less than that amount, the foreign banking
corporation may retain such an additional amount as will bring the
earned interest to ten dollars and refund the remainder, and provided
further, that unless the loan is refinanced, no refund shall be required
if it amounts to less than one dollar; and (2) if a charge was made to
the borrower for premiums for insuring the borrower under a group life
insurance policy, or under a group health, group accident or group
health and accident insurance policy, the excess of the charge to the
borrower therefor over the premiums paid or payable by the foreign
banking corporation, if such premiums were paid or payable by the
foreign banking corporation periodically, or the refund for such
insurance premium received or receivable by the foreign banking
corporation, if such premium was paid or payable in a lump sum by the
foreign banking corporation. No such refund need be made if it amounts
to less than one dollar. In the event (i) the maturity of the loan is
accelerated due to the default of the borrower or otherwise and judgment
is obtained, or (ii) repayment is made pursuant to any insurance policy
for which a charge was made to the borrower for the premiums thereon,
the borrower or his legal representative, as the case may be, shall be
entitled to the same refund as if the loan had been prepaid in full on
the date of acceleration or repayment.
  (7) As a condition of any loan made pursuant hereto, the borrower
shall certify that the mobile home, for the purchase of which the loan
is made, is intended to be maintained in the state or in a contiguous
state as a residence of the borrower, the borrower`s spouse, child,
grandchild, parent or grandparent. If the mobile home shall not be so
maintained on the ninetieth day next succeeding the date of the loan or
if it is relocated so as to no longer be located in the state or a
contiguous state at any time before the first anniversary of the loan,
the loan and all authorized charges shall become immediately due and
payable subject only to the refund provisions of paragraph six and the
borrower may, if the contract so provides, be required to pay as an
additional authorized charge, a penalty in an amount not to exceed two
per cent of the face amount of the loan.

  (8) No investment shall be made by a foreign banking corporation
pursuant to this subdivision if the total amount invested by it pursuant
to this subdivision exceeds, or by the making of such investment will
exceed, an amount equal to five per cent of the assets of the branch or
branches in this state of such foreign banking corporation.
  (9) Subject to such limitations and conditions as the banking board
may prescribe by general regulation, a foreign banking corporation may
make a loan pursuant to this subdivision which the federal housing
administrator has insured or has made a commitment to insure and may
receive and hold such debentures as are issued by the federal housing
administrator in payment of such insurance, or which is guaranteed
pursuant to the provisions of the act of congress entitled the
"Servicemen`s Readjustment Act of l944." No law of this state
prescribing or limiting the interest rate upon loans or advances of
credit or prescribing a penalty for violation thereof or prescribing the
nature, amount or form of security or requiring security upon which
loans or advances of credit may be made or prescribing or limiting the
period for which loans or advances of credit may be made or limiting the
amount of any class of loans, advances of credit or purchases which may
be made shall be deemed to apply to loans, advances of credit or
purchases made or to loans accquired by purchase pursuant to this
paragraph.
  6. No foreign banking corporation licensed pursuant to article two of
this chapter to maintain one or more branches in this state shall in
this state make any loan for the purpose of financing the purchase of or
refinancing an existing ownership interest in certificates of stock or
other evidence of an ownership interest in, and a proprietary lease
from, a corporation or partnership formed for the purpose of the
cooperative ownership of real estate, unsecured except to the extent of
an assignment or transfer of the stock certificates or other evidence of
ownership interest of the borrower and the proprietary lease within
ninety days from the making of the loan, which shall exceed the same
maximum per cent of the purchase price or, in the case of a refinancing,
the appraised value of such certificates of stock or other evidence of
an ownership interest as is permitted to be made on real estate improved
by a single family residence occupied by the owner and which shall fail
to provide for full repayment of principal and interest within the same
number of years as a loan secured by real estate as hereinabove
described; provided that such loan shall be subject to such regulations
as the banking board may from time to time promulgate.  Notwithstanding
any other provision of law, the maximum rate of interest which may be
charged, taken or received upon any loan or forbearance made pursuant to
this subdivision may exceed the rate of interest prescribed by the
banking board in accordance with section fourteen-a of this chapter by
no more than one and one-half per centum per annum.
  7. The knowingly taking, receiving, reserving or charging a greater
rate of interest than that authorized by this section as computed
pursuant to this section, shall be held and adjudged a forfeiture of the
entire interest which the note, bill of exchange or other evidence of
debt carries with it, or which has been agreed to be paid thereon, and
if a greater rate of interest has been paid, the person paying the same
or his legal representative may recover from the foreign banking
corporation twice the entire amount of the interest thus paid.
  8. (a) The banking board shall have the power, by a three-fifths vote
of all its members, to prescribe by regulation (i) the maximum charge
which may be imposed in this state by a foreign banking corporation
licensed pursuant to article two of this chapter to maintain one or more
branches in this state in connection with a check or other written order
drawn upon it on insufficient funds, regardless of whether the
instrument is paid, accepted, or returned by the foreign banking
corporation, and (ii) the maximum charge which may be imposed in this
state by a foreign banking corporation in connection with a check or
other written order received by it for deposit or collection and
subsequently dishonored and returned for any reason by the drawee.
  (b) No foreign banking corporation shall, in connection with the
payment, acceptance or return of such check or order, impose any fee,
fine, commission or other charge, however designated, in addition to the
maximum charge established therefor by the banking board pursuant to
paragraph (a) of this subdivision, except that nothing herein expressed
shall prevent a foreign banking corporation from taking, receiving,
reserving or charging interest as authorized by law in connection with
credit extended in connection with the payment of such check or order or
from imposing any charge in accordance with a written agreement
established in accordance with the provisions of subdivision five of
this section.  A foreign banking corporation may, as an accommodation to
its customers, pay, accept, or return a check or order without charge,
or at a lesser charge than the maximum charge established by the banking
board.
  (c) In prescribing a maximum charge pursuant to paragraph (a) of this
subdivision, the banking board shall consider the following factors: (i)
the cost of processing an overdraft or returned check or order, as the
case may be, (ii) the charge necessary to deter overdrafts or returned
checks or orders, as the case may be, and (iii) such other economic or
cost factors that the banking board shall deem to be appropriate. Prior
to the banking board`s prescribing any such maximum charge, the
superintendent shall make a written recommendation to the banking board
as to such maximum charge, reciting the cost and other data upon which
his recommendation is based.
  (d) The banking board may promulgate such regulations as it deems
necessary and proper to implement and define the provisions of this
subdivision. The banking board may prescribe maximum charges from time
to time, but not more often than once in any six month period, and shall
provide reasonable notice to the public of any change in such maximum
charges, of the effective date of such change, which shall not be less
than seven days following the adoption of such change by the banking
board, and of any rule or regulation adopted pursuant to this
subdivision.
  9. Notwithstanding any provision of this article to the contrary, a
foreign banking corporation licensed pursuant to article two of this
chapter to maintain one or more branches or agencies in this state, may,
in pursuance of its otherwise lawful powers under this chapter, take,
receive, reserve or charge on any loan or discount made, or upon any
note, bill of exchange or other evidence of debt, negotiable or
otherwise, interest at such rate and such other charges and fees as a
bank or trust company shall be permitted to charge under the provisions
of the laws of this state or of the laws of the United States, with
respect to the same class or classes of loans or transactions to which
such rate or such charges and fees shall be applicable.

  S 202-a. Restrictions on receiving deposits. 1. A foreign banking
corporation licensed pursuant to article two of this chapter to maintain
one or more agencies in this state shall not engage in the business of
receiving deposits in this state; provided (a) that such foreign banking
corporation may maintain for the account of others credit balances
incidental to, or arising out of, the exercise of its lawful powers; and
(b) that the banking board is authorized to adopt regulations that
permit a foreign banking corporation, licensed pursuant to article two
of this chapter to maintain one or more agencies in this state, to issue
to a corporation, partnership, trust, unincorporated association, joint
stock association or similar association obligations each in a principal
amount of not less than one hundred thousand dollars; and (c) that such
foreign banking corporation may accept deposits other than from citizens
or residents of the United States as the superintendent shall define by
regulation.
  2. A foreign banking corporation organized under the laws of a foreign
country or of Puerto Rico may be licensed pursuant to article two of
this chapter to maintain a branch or branches in this state and may
engage in the business of receiving deposits in this state.
  3. The banking board shall have power to prescribe, by specific or
general regulation, to the extent to which and the conditions upon
which, the deposits and credit balances in agencies and branches in this
state of foreign banking corporations may be established, maintained and
paid out.

  S 202-b. Maintenance of assets in this state.  1. Upon opening a
branch or agency and thereafter, a foreign banking corporation licensed
pursuant to article two of this chapter shall keep on deposit, in
accordance with such rules and regulations as the banking board shall
from time to time promulgate by a three-fifths vote of all the members
thereof, with such banks or trust companies or private bankers or
national banks in the state of New York as such foreign banking
corporation may designate and the superintendent may approve,
interest-bearing stocks and bonds, notes, debentures, or other
obligations of the United States or any agency or instrumentality
thereof, or guaranteed by the United States, or of this state, or of a
city, county, town, village, school district, or instrumentality of this
state or guaranteed by this state, or dollar deposits, or obligations of
the International Bank for Reconstruction and Development, or
obligations issued by the Inter-American Development Bank, or
obligations of the Asian Development Bank, or obligations issued by the
African Development Bank, or obligations issued by the International
Finance Corporation, or bonds, notes, debentures, or other obligations
issued by or guaranteed by the Federal Home Loan Mortgage Corporation
(Freddie Mac) or by the Federal National Mortgage Corporation (Fannie
Mae), or bonds, notes, debentures, or other obligations issued by or
guaranteed by the Student Loan Marketing Association (SALLIE MAE) or all
bonds, notes, debentures, or other obligations issued by or guaranteed
by a federal home loan bank, or bonds, notes, debentures or other
obligations of any unaffiliated issuer provided that, at the time of
such investment, the obligation has received the highest rating of an
independent rating service designated by the banking board or, if the
obligation is rated by more than one such service, the highest rating of
at least two such services, or such other assets as the superintendent
shall by rule or regulation permit, to an aggregate amount to be
determined by the superintendent, based upon principal amount or market
value, whichever is lower, in the case of the above-described
securities, and subject to such limitations as he or she shall
prescribe; provided, however, that the superintendent may determine, in
his or her discretion, that any such bonds, notes, debentures or other
obligations of a particular issuer are not acceptable for purposes of
meeting the requirements of this subdivision. The superintendent may
from time to time require that the assets deposited pursuant to this
subdivision may be maintained by the foreign banking corporation at such
amount, in such form and subject to such conditions as he or she shall
deem necessary or desirable for the maintenance of a sound financial
condition, the protection of depositors and the public interest, and to
maintain public confidence in the business of such branch or branches or
such agency or agencies. The superintendent may give credit to reserves
required to be maintained with a federal reserve bank in or outside the
state of New York pursuant to federal law, subject to such rules and
regulations as the superintendent may from time to time promulgate. So
long as it shall continue business in the ordinary course, such foreign
banking corporation shall be permitted to collect interest on the
securities so deposited and from time to time exchange, examine and
compare such securities.
  2. Each foreign banking corporation shall hold in this state currency,
bonds, notes, debentures, drafts, bills of exchange or other evidences
of indebtedness, including loan participation agreements or
certificates, or other obligations payable in the United States or in
United States funds or, with the prior approval of the superintendent,
in funds freely convertible into United States funds, or such other
assets as the superintendent shall by rule or regulation permit, in an
amount which shall bear such relationship as the banking board shall by
regulation prescribe to liabilities of such foreign banking corporation
appearing in the books, accounts or records of its agency, agencies,
branch or branches in this state as liabilities of such agency,
agencies, branch or branches, including acceptances and such other
liabilities (including contingent liabilities) as the superintendent
shall determine, but excluding amounts due and other liabilities to
other offices, agencies or branches of, and affiliates of, such foreign
banking corporation. As used in this subdivision, (i) "affiliate" shall
mean any person or entity, or group of persons or entities acting in
concert, that controls, is controlled by or is under common control with
such foreign banking corporation and (ii) "control" means any person, or
group of persons acting in concert, directly or indirectly, owning,
controlling or holding with power to vote, more than fifty percent of
the voting stock of a company, or having the ability in any manner to
elect a majority of the directors of a company, or otherwise exercising
a controlling influence over the management and policies of a company as
defined by the superintendent by regulation. For purposes of this
subdivision, the term "person" shall mean a corporation, unincorporated
association, partnership, or any other entity or individual. For the
purposes of this subdivision two, the superintendent shall value
marketable securities at principal amount or market value, whichever is
lower, shall have the right to determine the value of any non-marketable
bond, note, debenture, draft, bill of exchange, other evidence of
indebtedness, including loan participation agreements or certificates,
or of any other asset or obligation held by or owed to the foreign
banking corporation or its agency, agencies, branch or branches within
the state, and in determining the amount of assets for the purpose of
computing the above ratio of assets to liabilities, shall have the power
to exclude in whole or in part any particular asset. If, by reason of
the existence or the potential occurrence of unusual and extraordinary
circumstances, the superintendent deems it necessary or desirable for
the maintenance of a sound financial condition, the protection of
depositors, creditors and the public interest, and to maintain public
confidence in the business of the agency, agencies, branch or branches
of a foreign banking corporation, he may, subject to such terms and
conditions as he may prescribe, require such foreign banking corporation
to deposit the assets required to be held in this state pursuant to this
subdivision two with such banks or trust companies or private bankers or
national banks located in this state, as the superintendent may
designate.
  3. In the event that any of the deposits received within the state by
a foreign banking corporation are insured by the Federal Deposit
Insurance Corporation, the superintendent shall specify what reasonable
percentage of deposit liabilities may be excluded in determining the
aggregate amount of liabilities of such foreign banking corporation for
deposits received within the state for purposes of subdivision two of
this section by reason of the fact that all or a part of such deposit
liabilities are insured by the Federal Deposit Insurance Corporation.

  S 202-c. Reserves against deposits. Each such foreign banking
corporation which is authorized to maintain a branch or branches in this
state shall maintain such reserves against the deposits of such branch
or branches as may be required from time to time by the laws of this
state to be maintained by banks and trust companies. Such reserves shall
be maintained, subject to call, as provided by sections thirty-three and
one hundred seven of this chapter; provided, however, that any such
foreign banking corporation which maintains reserves with a federal
reserve bank pursuant to federal law shall be exempt from the preceding
provisions of this section so long as it shall comply with the
requirements of such law with reference to reserves, and provided
further that the banking board may determine that it is necessary or
appropriate to require such a foreign banking corporation to maintain
additional reserves against the deposits of its branch or branches in
this state, taking into consideration the character of business
conducted by such institutions and the need to maintain vigorous and
fair competition between and among such branches and banks organized
under the laws of this state. As to any such additional reserves which
are required to be maintained pursuant to this section, to the extent
permitted by the superintendent, amounts carried on the books of any
such branch or branches as credits to the account of another office or
branch or wholly owned (except for a nominal number of directors`
shares) subsidiary of such foreign banking corporation shall not be
deemed to be deposits.

  S 202-d. Foreign banking corporation may not maintain both agencies
and branches in this state. No foreign banking corporation licensed to
maintain one or more agencies in this state shall be licensed to
maintain a branch in this state except upon termination of the operation
of such agency or agencies; and no foreign banking corporation licensed
to maintain one or more branches in this state shall be licensed to
maintain an agency in this state except upon termination of the
operation of such branch or branches.

  S 202-f. Restrictions on loans, purchases of securities and total
liabilities of any one person to New York branch or agency of foreign
bank. Before opening a branch or agency in this state, and annually
thereafter so long as a branch or agency is maintained in this state, a
foreign banking corporation, licensed pursuant to article two of this
chapter, shall certify to the superintendent the amount of its paid-in
capital stock, its surplus fund and its undivided profits, each
expressed in the currency of the country of its incorporation, the
dollar equivalent of which amount, as determined by the superintendent,
shall be deemed to be the amount of its capital stock, surplus fund and
undivided profits.  Loans, purchases and discounts of notes, bills of
exchange, bonds, debentures and other obligations, and extensions of
credit and acceptances by a branch or agency of a foreign banking
corporation within this state shall be subject to the same limitations
as to amount in relation to capital stock, surplus fund, and undivided
profits as are applicable to banks and trust companies pursuant to
article three of this chapter, provided, however, that with the prior
approval of the superintendent of banks, the capital notes and capital
debentures of such foreign banking corporation may be treated as capital
stock in computing such limitations.

  S 202-g. Succession to agency by branch and to branch by agency.
Notwithstanding any other provision of this chapter, the superintendent
may, subject to such regulations as he may adopt, authorize the
conversion of a foreign banking corporation agency to a branch or the
conversion of a foreign banking corporation branch to an agency.
  When a foreign banking corporation shall be licensed to conduct in
this state a branch in lieu of an agency theretofore conducted by it or
to conduct an agency in this state in lieu of a branch theretofore
conducted by it, the preceding form of organization shall, with the
approval of the superintendent, be converted into the succeeding form of
organization of such foreign banking corporation and all of the
liabilities of such foreign banking corporation previously payable at
the office where such preceding form of organization shall have been
conducted shall thereafter be payable at the office of the successor
form of organization.
  In the event that the successor form of organization shall succeed to
assets in which it would not have had legal power to invest in its
successor form, or, in the event the successor form of organization
shall succeed to liabilities which the successor form of organization
would not have had power to incur, it shall liquidate such assets or
liabilities within the next succeeding twelve calendar months unless the
superintendent shall, in his discretion, extend such period of time in
the interest of the orderly conduct of such branch or agency.

  S 202-h. Repayment of deposits standing in the names of minors,
trustees, joint depositors or custodians; interpleader in certain
actions. 1. Any minor may endorse a check payable to his order for the
purpose of depositing the proceeds in a deposit in his name with a
branch in this state of a foreign banking corporation and when any
deposit shall be made by or in the name of any minor, the same shall be
held for the exclusive right and benefit of such minor, and free from
the control or lien of all other persons, except creditors, and shall be
paid, together with the interest thereon to the person or upon the order
by check or otherwise of the person in whose name the deposit shall
stand, and the receipt, acquittance or order of payment of such minor
shall be a valid and sufficient release and discharge for such deposit
or any part thereof to the foreign banking corporation.
  4. (a) In all actions against any foreign banking corporation to
recover for moneys on deposit with a branch thereof in this state, if
there be any person or persons, not parties to the action, who claim the
same fund, the court in which the action is pending, may, on the
petition of such foreign banking corporation, and upon eight days`
notice to the plaintiff and such claimants, and without proof as to the
merits of the claim, make an order amending the proceedings in the
action by making such claimants parties defendant thereto; and the court
shall thereupon proceed to determine the rights and interests of the
several parties to the action in and to such funds. The remedy provided
in this section shall be in addition to and not exclusive of any other
interpleader provision.
  (b) The funds on deposit which are the subject of such an action may
remain with such foreign banking corporation to the credit of the action
until final judgment therein, and be entitled to the same interest as
other deposits of the same class, and shall be paid by such foreign
banking corporation in accordance with the final judgment of the court;
or the deposit in controversy may be paid into court to await the final
determination of the action, and when the deposit is so paid into court
such foreign banking corporation shall be struck out as a party to the
action, and its liability for such deposit shall cease.
  (c) The costs in all actions against a foreign banking corporation to
recover deposits shall be in the discretion of the court, and may be
charged upon the fund affected by the action.
  5. Deposits by custodian for a minor under part six of article seven
of the estates, powers and trusts law. When any deposit of cash or
securities shall be made with a branch in this state of a foreign
banking corporation by a person purporting to act as custodian for a
minor under part six of article seven of the estates, powers and trusts
law or under a similar law of another state, the deposit together with
any interest or dividends credited thereon may be paid or delivered to
or upon the order of such person, or his successor as custodian, or to a
minor upon the minor`s attaining either eighteen years or twenty-one
years, as provided in accordance with part six of article seven of the
estates, powers and trusts law, if no custodian is acting at the time of
such payment or delivery, and any receipt or order of such person,
successor or minor shall be valid and sufficient release and discharge
of the depositary for any payment or delivery so made. No depositary
dealing with a person purporting to act as a custodian for a minor under
said article shall be bound to inquire into any facts bearing upon the
designation of such person as such custodian or the propriety of or
authority for any act of such person under said article or otherwise or
the age of the person designated as a minor. No depositary shall be
liable for any act performed pursuant to the instruction or direction of
any person purporting to act as custodian under said article unless the
depositary has actual knowledge that such act, or the instruction or
direction therefor, constitutes a breach of such person`s obligations as
such custodian, or unless the depositary performs such act with
knowledge of such facts that acting pursuant to such instruction or
direction amounts to bad faith.

  S 202-i. Safe deposit business of branches. Each such foreign banking
corporation which is authorized to maintain a branch or branches in this
state may (a) receive upon deposit for safe-keeping for hire upon terms
and conditions to be prescribed by such foreign banking corporation,
money, securities, papers of any kind and any other personal property,
and (b) engage in the safe deposit business by renting vaults, safe
deposit boxes or other receptacles upon premises of such branch or
branches, upon such terms and conditions as may be prescribed by such
foreign corporation.

  S 202-j. Power to act as trustee under self-employed retirement trust
or individual retirement trust. Each such foreign banking corporation
which is authorized to maintain a branch or branches in this state the
deposits of which are insured by the federal deposit insurance
corporation or any successor may, subject to any regulations prescribed
by the banking board, act through any such branch as trustee under a
retirement plan established pursuant to the provisions of the act of
congress entitled "Self-employed Individuals Tax Retirement Act of 1962"
as such provisions may be amended from time to time, and under an
individual retirement account plan established pursuant to the
amendments to the provisions of the Internal Revenue Code contained in
the act of congress entitled "Employee Retirement Income Security Act of
1974" as such provisions may be amended from time to time, provided that
the provisions of such retirement or individual retirement account plan
require the funds of such trust to be invested exclusively in deposits
of branches of foreign banking corporations located in this state the
deposits of which are insured by the federal deposit insurance
corporation or any successor and in deposits of banks, trust companies,
savings banks, savings and loan associations, federal mutual savings or
federal savings banks or federal savings and loan associations whose
principal offices are located in this state. In the event that any such
retirement or individual retirement account plan, which in the judgment
of the foreign banking corporation constituted a qualified plan under
the provisions of the applicable act of congress hereinabove mentioned
and the regulations promulgated thereunder at the time the trust was
established and accepted by the foreign banking corporation is
subsequently determined not to be such a qualified plan or subsequently
ceases to be such a qualified plan, in whole or in part, the foreign
banking corporation may, nevertheless, continue to act as trustee of any
deposits theretofore made under such plan and to dispose of the same in
accordance with the directions of the depositor and the beneficiaries
thereof. No foreign banking corporation, in respect to deposits made
under this section, shall be required to segregate such deposits from
other deposits of such foreign banking corporation, provided, however,
that the foreign banking corporation shall keep appropriate records
showing in proper detail all transactions engaged in under the authority
of this section.

  S 203. Change of location, name or business. Any foreign corporation
licensed pursuant to article two of this chapter to engage in business
in this state, may make a written application to the superintendent for
leave to do one or more of the following:
  1. To change its place of business from the place designated in its
license to another place in this state. An application for such change
shall be accompanied by an investigation fee of four hundred fifty
dollars.
  2. To change its corporate name if such change has been effected under
the laws of the jurisdiction of its incorporation.
  3. To enlarge, limit or otherwise change the business which it
proposes to do in this state.

  S 204. Reports of foreign banking corporations; penalties. Every
foreign banking corporation licensed by the superintendent to engage in
business in this state, shall at such times and in such form as the
superintendent shall prescribe, make written reports to the
superintendent under the oath of one of its officers, managers or agents
transacting business in this state, showing the amount of its assets and
liabilities and containing such other matters as the superintendent
shall prescribe. If any such corporation shall fail to make any such
report as directed by the superintendent, it shall be subject to the
penalties prescribed by section one hundred twenty-five of this chapter,
and any false statement contained in any such report or in any other
sworn statement made to the superintendent by such corporation in
pursuance of the provisions of this chapter shall constitute perjury.
Nothing herein contained shall be deemed to modify the prohibitions of
section one hundred thirty-one of this chapter.

  S 204-a. Payment of claims by foreign banking corporations where
adverse claim is asserted; effect of claims or advices originating in,
and statutes, rules or regulations purporting to be in force in occupied
territory; performance of contracts and repayment of deposits
performable or repayable at foreign offices of foreign banking
corporations.  1. Notice to any foreign banking corporation doing
business in this state under a license issued by the superintendent in
accordance with the provisions of this chapter, of an adverse claim to a
credit standing on its books to the account of any person, or to the
balance in any deposit account, or of an adverse claim to securities or
other property held for the account of any person, shall not be
effectual in this state to cause said foreign banking corporation to
recognize said adverse claimant unless said adverse claimant shall also
either procure a restraining order, injunction or other appropriate
process against said foreign banking corporation from a court of
competent jurisdiction in the United States in a cause therein
instituted by him wherein the person to whose account the credit or
deposit stands, or for whose account the securities or other property
are held, or his executor or administrator is made a party and served
with summons, or shall execute to said foreign banking corporation, in
form and with sureties acceptable to it a bond, indemnifying said
foreign banking corporation from any and all liability, loss, damage,
costs and expenses, for and on account of the payment of or delivery
pursuant to such adverse claim or the dishonor of the order of the
person to whose account the credit or deposit stands on the books of
said foreign banking corporation or for whose account the securities or
other property are held by said foreign banking corporation.
  2. (a) A foreign banking corporation doing business in this state
under a license issued by the superintendent in accordance with the
provisions of this chapter, need not in this state recognize or give any
effect to (1) any claim to a credit standing on its books to the account
of, or the balance in any deposit account of, or any claim to
securities, or other property held by it for the account of, any
corporation, firm or association in occupied territory or (2) any
advice, statute, rule or regulation purporting to cancel or to give
notice of the cancellation of the authority of any person at the time
appearing on the books of such foreign banking corporation as authorized
to withdraw or otherwise dispose of cash, securities, or other property
of such corporation, firm or association, unless such foreign banking
corporation is required so to do by appropriate process procured against
it in a court of competent jurisdiction in the United States in a cause
therein instituted by or in the name of such corporation, firm or
association, or unless the person making such claim or giving such
advice or invoking such statute, rule or regulation, as the case may be,
shall execute to such foreign banking corporation, in form and with
sureties acceptable to it, a bond indemnifying it from any and all
liability, loss, damage, costs and expenses for and on account of
recognizing or giving any effect to such claim, advice, statute, rule or
regulation.
  (b) For the purposes of this subdivision (1) the term "occupied
territory" shall mean territory occupied by a dominant authority
asserting governmental, military or police powers of any kind in such
territory, but not recognized by the United States as the de jure
government of such territory, and (2) the term "corporation, firm or
association in occupied territory" shall mean a corporation, firm or
association which has, or at any time has had, a place of business in
territory which has at any time been occupied territory.
  (c) The foregoing provisions of this subdivision shall be effective
only in cases where (1) such claim or advice purports or appears to have
been sent from or is reasonably believed to have been sent pursuant to
orders originating in, such occupied territory during the period of
occupation, or (2) such statute, rule or regulation appears to have
emanated from such dominant authority and purports to be or to have been
in force in such occupied territory during the period of occupation.
  (d) The foregoing provisions of this subdivision shall apply to
claims, advices, statutes, rules or regulations made, given or invoked
either prior to, or on or subsequent to the effective date of this act.
  (e) A foreign banking corporation doing business in this state under a
license issued by the superintendent in accordance with the provisions
of this chapter need not in this state recognize or give any effect to a
claim of authority to order the payment or delivery of any funds or
other property standing on its books to the credit of, or held by it for
the account of, any person, corporation, unincorporated association or
partnership, which claim conflicts with a claim of authority of which
the foreign banking corporation had prior notice, unless the person or
persons asserting such subsequent claim shall procure a restraining
order, injunction or other appropriate process against said foreign
banking corporation from a court of competent jurisdiction in the United
States, or, in lieu thereof, at the option of said foreign banking
corporation, shall execute to said foreign banking corporation, in form
and with sureties acceptable to it, a bond, indemnifying it for any and
all liability, loss, damage, costs and expenses for or on account of any
payment or delivery of such property by it pursuant to such subsequent
claim of authority or for or on account of the dishonor of any check or
other order of any person or persons asserting the claim of authority of
which such foreign banking corporation already had notice at the time
the subsequent conflicting claim of authority is asserted by the person
or persons furnishing such bond.
  3. (a) Notwithstanding section 1-105 of the uniform commercial code,
any foreign banking corporation doing business in this state under a
license issued by the superintendent in accordance with the provisions
of this chapter shall be liable in this state for contracts to be
performed at its office or offices in any foreign country, and for
deposits to be repaid at such office or offices, to no greater extent
than a bank, banking corporation or other organization or association
for banking purposes organized and existing under the laws of such
foreign country would be liable under its laws. The laws of such foreign
country for the purpose of this subdivision shall be deemed to include
all acts, decrees, regulations and orders promulgated or enforced by a
dominant authority asserting governmental, military or police power of
any kind at the place where any such office is located, whether or not
such dominant authority be recognized as a de facto or de jure
government.
  (b) Notwithstanding section 1-105 of the uniform commercial code, if
by action of any such dominant authority which is not recognized by the
United States as the de jure government of the foreign territory
concerned, any property situated in or any amount to be received in such
foreign territory and carried as an asset of any office of such foreign
banking corporation in such foreign territory is seized, destroyed or
cancelled, then the liability, if any, in this state of such foreign
banking corporation for any deposit theretofore received and thereafter
to be repaid by it, and for any contract theretofore made and thereafter
to be performed by it, at any office in such foreign territory shall be
reduced pro tanto by the proportion that the value (as shown by the
books or other records of such foreign banking corporation, at the time
of such seizure, destruction or cancellation) of such assets bears to
the aggregate of all the deposit and contract liabilities of the office
or offices of such foreign banking corporation in such foreign
territory, as shown at such time by the books or other records of such
foreign banking corporations.  Nothing contained in this paragraph shall
diminish or otherwise affect the liability of any such foreign banking
corporation to any corporation, firm or individual which at the time of
such seizure, destruction or cancellation was incorporated or resident
in any state of the United States.
  (c) Notwithstanding the provisions of any law to the contrary, a
foreign banking corporation operating a branch or branches or an agency
or agencies in this state shall not be required to repay, at any such
branch, branches, agency or agencies in this state, any deposit made at
a foreign office of any such foreign banking corporation if such office
cannot repay the deposit due to (i) an act of war, insurrection, or
civil strife; or (ii) an action by a foreign government or
instrumentality, whether de jure or de facto, in the country in which
the office is located preventing such repayment, unless the foreign
banking corporation operating in this state has expressly agreed in
writing to repay the deposit under such circumstances.  The banking
board may promulgate regulations necessary to effectuate the provisions
of this paragraph, including regulations providing for adequate
disclosure to retail depositors in the United States of the restrictions
on repayment contained in this subdivision. The provisions of this
paragraph shall not alter or diminish the liability of a custodian of
assets of a fund under section one hundred seventy-eight-a of the
retirement and social security law.

  S 206. Termination of existence. When a foreign banking corporation
licensed pursuant to article five of this chapter is dissolved or its
authority or existence is otherwise terminated or cancelled in the
jurisdiction of its incorporation, a certificate of the superintendent
of banks, or official performing the equivalent function as to records
of banking corporations, of the jurisdiction of incorporation of such
foreign banking corporation attesting to the occurrence of any such
event or a certified copy of an order or decree of a court of such
jurisdiction directing the dissolution of such foreign banking
corporation, the termination of its existence or the cancellation of its
authority shall be delivered to the superintendent. The filing of the
certificate, order or decree shall have the same effect as the
revocation of its license under section forty of this chapter. The
superintendent shall continue as agent of the foreign banking
corporation upon whom process against it may be served in any action or
special proceeding based upon any liability or obligation incurred by
the foreign banking corporation within this state prior to the filing of
such certificate, order or decree and he shall promptly cause a copy of
such process to be mailed by registered mail, return receipt requested,
to such foreign corporation at the post office address on file in his
office specified for such purpose. The post office address may be
changed in the manner provided in section two hundred of this chapter.

  S 207. Service of process on unlicensed corporation formed under laws
other than the statutes of this state. 1.  Every corporation formed
under laws other than the statutes of this state which is required by
this chapter to obtain a license from the superintendent, and which
itself or through an agent does any business in this state for which
such license is required either without obtaining such license or after
the revocation thereof, submits itself to the jurisdiction of the courts
of this state and is deemed to have designated the superintendent as its
agent upon whom process against it may be served, in any action or
special proceeding arising out of or in connection with the doing of
such business. Such process may issue in any court in this state having
jurisdiction of the subject matter.
  2. Service of such process upon the superintendent shall be made by
personally delivering to and leaving with him or his deputy, or with any
person authorized by the superintendent to receive such service, at the
office of the superintendent, a copy of such process together with the
statutory fee, which fee shall be a taxable disbursement.  Such service
shall be sufficient if notice thereof and a copy of the process are:
  (a) Delivered personally without this state to such foreign banking
corporation by a person and in the manner authorized to serve process by
law in the jurisdiction in which service is made, or
  (b) Sent by or on behalf of the plaintiff to such foreign banking
corporation by registered mail with return receipt requested, at the
post office address specified for the purpose of mailing process, on
file in the banking department, or with any official or body performing
the equivalent function, in the jurisdiction of its incorporation, or if
no such address is there specified, to its registered or other office
there specified, or if no such office is there specified, to the last
address of such foreign banking corporation known to the plaintiff.
  3. Proof of service shall be by affidavit of compliance with this
section filed, together with the process, within thirty days after such
service, with the clerk of the court in which the action or special
proceeding is pending. If a copy of the process is mailed in accordance
with this section, there shall be filed with the affidavit of compliance
either the return receipt signed by such foreign banking corporation or
other official proof of delivery or, if acceptance was refused by it,
the original envelope with a notation by the postal authorities that
acceptance was refused. If acceptance was refused, a copy of the notice
and process together with notice of the mailing by registered mail and
refusal to accept shall be promptly sent to such foreign banking
corporation at the same address by ordinary mail and the affidavit of
compliance shall so state. Service of process shall be complete ten days
after such papers are filed with the clerk of the court. The refusal to
accept delivery of the registered mail or to sign the return receipt
shall not affect the validity of the service and such foreign banking
corporation refusing to accept such registered mail shall be charged
with knowledge of the contents thereof.
  4. Service made as provided in this section shall have the same force
as personal service made within this state.
  5. Nothing in this section shall affect the right to serve process in
any other manner permitted by law.
  6. The banking department shall keep a record of each process served
upon the superintendent under this section, including the date of
service.  It shall, upon request made within ten years of such service,
issue a certificate under its seal certifying as to the receipt of the
service by an authorized person, the date and place of such service and
the receipt of the statutory fee. Process served upon the superintendent
under this section shall be destroyed by him after a period of ten years
from such service.

  S 208. Nondiscriminatory treatment of insured state banks and national
banks. Notwithstanding any other laws of this state, a state bank, which
is incorporated in another state and whose deposits are insured by
Federal Deposit Insurance Corporation, shall have the same protection,
privileges and immunities, including the right to sue, collect debts,
realize on collateral security, enforce liens, claims and obligations,
and protect its property in this state, as a national bank whose
principal office is located in the same state as such state bank, and
such state bank and its shares, securities and evidences of indebtedness
shall enjoy the same privileges, protections and immunities as those of
such a national bank and shall not be subject to any disability,
incapacity, restriction, regulation, penalty, fee, fine or taxation
which is not imposed by this state in the case of such a national bank,
provided however that this section shall not apply with respect to any
state bank and its shares, securities and evidences of indebtedness
unless such state bank`s state of incorporation has a statute with
provisions substantially similar to this section which is applicable to
a state bank incorporated in this state. As used in this section the
term "state bank" shall mean any commercial bank or trust company.

  S 209. Restrictions on executive officers of foreign banking
corporations and national banks. 1. No executive officer of a foreign
banking corporation maintaining a branch in this state may be an
executive officer, director or trustee of a bank or trust company,
savings bank, savings and loan association, national bank located in
this state, federal savings and loan association located in this state,
bank holding company or another foreign banking corporation maintaining
a branch in this state, unless permission therefor has been granted by
the banking board pursuant to the provisions of subdivision three of
this section, except that an executive officer of a foreign banking
corporation maintaining a branch in this state which is a subsidiary of
a bank holding company may be (i) an executive officer and (ii) a
director of the bank holding company of which such foreign banking
corporation is a subsidiary, and of one or more of the banking
institutions which are subsidiaries of such bank holding company; and
provided, however, that, except as stated in the foregoing exceptions,
an executive officer of a foreign banking corporation maintaining a
branch in this state, who on the effective date of this act is an
executive officer, director or trustee of a bank or trust company,
savings bank, savings and loan association, national bank located in
this state, federal savings and loan association located in this state,
bank holding company or another foreign banking corporation maintaining
a branch in this state, may continue to hold such other office, without
permission from the banking board, until the expiration of the term of
such office or the close of business on the last day of December,
nineteen hundred seventy-four, whichever occurs sooner.
  2. No executive officer of a national bank located in this state may
be an executive officer, director or trustee of a bank or trust company,
savings bank, savings and loan association, bank holding company or
foreign banking corporation maintaining a branch in this state, unless
permission therefor has been granted by the banking board pursuant to
the provisions of subdivision three of this section, except that (1) an
executive officer of a national bank located in this state, which is a
subsidiary of a bank holding company may be (i) an executive officer and
(ii) a director of the bank holding company and of one or more banking
institutions which are subsidiaries of such bank holding company;
provided, however, that, except as stated in the foregoing exceptions,
an executive officer of a national bank located in this state, who on
the effective date of this act is an executive officer, director or
trustee of a bank or trust company, savings bank, savings and loan
association, bank holding company or foreign banking corporation
maintaining a branch in this state, may continue to hold such other
office, without permission from the banking board, until the expiration
of the term of such office or the close of business on the last day of
December, nineteen hundred seventy-four, whichever occurs sooner.
  3. The banking board shall have the power to determine by regulation
who shall be considered, under the provisions of this subdivision, to be
an executive officer, and by a general or specific regulation, upon a
three-fifths vote of all its members, to grant permission to an
executive officer of a foreign banking corporation maintaining a branch
in this state and to an executive officer of a national bank located in
this state, to be at the same time an executive officer, trustee or
director or both an executive officer and a trustee or director of a
bank or trust company, savings bank, savings and loan association,
national bank located in this state, federal savings and loan
association located in this state, bank holding company, and foreign
banking corporation maintaining a branch in this state. Such permission
may be granted only if in the judgment of the banking board such service
by the executive officer will be consistent with the policy of the state
of New York as declared in section ten of this chapter. The banking
board shall have the power to revoke such permission by a like vote
whenever it finds, after reasonable notice and an opportunity to be
heard, that the public interest requires such revocation.
  4. For the purposes of this subdivision, the terms "subsidiary",
"banking institution" and "bank holding company" shall each be given the
same meaning as is contained in their respective definition in section
one hundred forty-one of this chapter, except that the definition of
"bank holding company" is modified by deleting the phrase "each of two
or more" and substituting the word "institution" for "institutions", and
the definition of the term "banking institution" is modified to include
a foreign banking corporation maintaining a branch in this state.
  5. All other restrictions and limitations imposed by this chapter on
executive officers and directors of foreign banking corporations
maintaining a branch in this state and on national banks located in this
state shall continue in effect.