October 19, 2004
To: Sara Kelsey
From: Gene C. Brooks
Subject: A- 11303 (Amending Section 121 of the Banking Law)
Is this new legislation self-implementing or does it require regulations by the Department?
The statute, which eliminates the statutory need for monthly board meetings, is self- implementing and does not require implementing regulations from the Department. Nevertheless, the amended statute does reference the Department's authority to adopt regulations "which may define the terms contained herein and establish such requirements according to size and/or business activities of such bank or trust company." In addition, existing Part 324 (copy also attached) of the Superintendent's regulations was adopted in the early 1980s to clarify the authority provided by Sections 121 and 252.
It would appear, therefore, that consideration should be given to whether revisions to Part 324 or perhaps a new regulation would be helpful from a supervisory point of view to properly implement A-11303.
This legislation has been signed. It was effective upon signing.
cc: Sam Abram