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Adopted Regulations
Adoption of Technical Amendments to Parts 334, 405, 406, and 410; Legal Interpretations LI 4, Sections 4.1 and 4.10; Supervisory Procedures G111, CB 101, CB 109, SB 110 and MB 101; and Appendix 8 of the Superintendent's Regulations of Title 3 of NYCRR.


Final Amendment to Superintendent's Regulations
PART 334
INDICES WHICH MAY BE USED IN CONNECTION WITH PART 80 VARIABLE RATE JUNIOR MORTGAGE LOANS, PART 91 VARIABLE RATE INSTALMENT AGREEMENTS AND PART 92 VARIABLE RATE CLOSED-END RETAIL INSTALMENT CONTRACTS AND OBLIGATIONS
The Statutory Authority to Part 334 is amended to read as follows:
(Statutory Authority: Banking Law, §§14[1], [351[e][2]] 351(2), 590-a[3]; Personal Property Law, §§ 303[4], 404[4], 413[3] )


  Final Amendment to Superintendent's Regulations
PART 405
PREMIUM FINANCE AGENCIES
(Statutory Authority: Banking Law, §561)

Subdivision (b) to Section 405.1 of the Superintendent's Regulations is amended by replacing the incorrect statutory references, by deleting a misplaced quotation mark and replacing it with a comma, and by deleting an open quotation mark and replacing it with a closed quotation mark, and is to read as follows:

  1. Every insurance premium finance agreement which originates with a broker or agent shall contain a statement of the amount of the charge under Insurance Law, section [129] 2119, and a statement as to the services for which such charge is made.  A statement that "the services for which the charge pursuant to Insurance Law["], section [129] 2119, is imposed are in connection with obtaining and servicing the policies listed hereon["]" will normally suffice.  If such charge is not being financed, the amount thereof, if any, need not be set forth in the calculations required under Banking Law, section 567(3)(b), but may be set forth separately in the agreement with an appropriate indication that it is not being financed. An insurance premium finance agreement which does not originate with an agent or broker need not contain such statement unless the charge pursuant to Insurance Law, section [129] 2119, is being financed. Unless such premium finance agreement contains a statement with respect to such charge, every premium finance agency, as defined in Banking Law Section 554(7), shall obtain from the insured at the time of entering into the premium finance agreement a separate statement, to be signed by the insured, stating that the insured has paid no such charge, or if such charge has been paid, the amount thereof.  Nothing herein contained shall be construed to imposed any duty upon a premium finance agency to verify whether a charge pursuant to Insurance Law, section [129] 2119, has been imposed or, if so imposed the amount thereof or the reasons therefor.


Final Amendment to Superintendent's Regulations
PART 406
MONEY TRANSMITTERS
(Statutory Authority: Banking Law, §§649, 659)

Subparagraph (1) to Subdivision (a) to Section 406.4 of the Superintendent's Regulations is amended to read as follows:

  1. a brief summary of the proposed money transmission activities to be engaged in by the agents and subagents and a description of how money is to be transferred to the beneficiaries and an undertaking by the licensee to assume responsibility for consumer losses incurred through [angent's] an agent's unauthorized activities or as a result of violations of any laws or regulations; and


Final Amendment to Superintendent's Regulations
PART 410
MORTGAGE BANKERS: LICENSING REQUIREMENTS; MORTGAGE BROKERS: REGISTRATION REQUIREMENTS; BRANCH APPLICATIONS: NOTIFICATION PROVISIONS: BOOKS AND RECORDS; ANNUAL REPORTS
(Statutory Authority: Banking Law, art. 12-D)

Subdivision (b) to Section 410.2 of the Superintendent's Regulations is amended to read as follows:

  1. Application form.  The application for licensure as a mortgage banker shall be in writing, subscribed by the applicant under penalty [or] of perjury, and shall contain the information and documents referred to in Supervisory Procedure MB 101 of this Title as well as any other information and documents deemed reasonable and necessary by the superintendent.

Subdivision (c) to Section 410.11 of the Superintendent's Regulations is amended to read as follows:

  1. the interest rate, series, serial number (if any), face value , maturity date, call date, principal amount and market value of each replacement security;

Subdivision (f) to Section 410.11 of the Superintendent's Regulations is amended to read as follows:

  1. certify that any securities being deposited in exchange for securities being withdrawn comply as to type with the provisions of subdivision 4 of section 591 of the Banking Law, and that, after giving effect to the exchange, the aggregate amount of all securities and funds remaining on deposit by the licensed mortgage banker, based in the case of such securities upon the principal amount or market value, whichever is lower, is at least equal to [$50,000.00] $50,000.


Final Amendment to LEGAL INTERPRETATION LI 4
SAVINGS BANKS AND SAVINGS AND LOAN ASSOCIATIONS

The Index is amended as follows:

Sec.

4.1  Leeway investments
4.2  Savings bank not permitted to remove trustee automatically upon his separation from his position as an officer
4.3  Crediting dividends on [DOD/DOW] date of deposit--date of withdrawal accounts
4.4   Procedure for converting a regular savings account to [a DOD/DOW] date of deposit--date of withdrawal status.
4.5  Savings bank investments in bank holding companies
4.6  Investment by a mutual savings institution in a mutual fund listed on a national securities exchange
4.7  Conflict of interest--mortgage loans by savings bank on real estate sold by trustee of the savings bank
4.8  Contracts of employment for officers of savings banks--deferred compensation
4.9  Investments in mortgages on real property located in possessions of the United States
4.10     Payment of dividends upon conversion from a regular to a [DOD/DOW] Day Of Deposit-Day Of Withdrawal account
4.11    Lump-sum payments to retiring employees in lieu of pension
4.12     Permissible solicitations with respect to savings bank life insurance
4.13     Years of service to mutual savings banks in computing allowable pensions  
4.14      Legality of debentures of real estate investment trusts for investment by savings banks  
4.15     Deposits in savings banks by cooperative corporations  
4.16       Pooling of Keogh retirement accounts into a general investment pool  
4.17       Supplemental pension benefits  
4.18       Checking accounts for the account of fiduciaries; checking accounts in the form of totten trusts
4.19       Direct deposits of payroll funds by a corporate employer into a checking maintained at a savings bank by its employee  
4.20       Interest rates on time deposits in savings banks and savings and loan associations.


Final Amendment to Legal Interpretation LI 4, §4.1  

The first paragraph of Section 4.1 is amended as follows:

The department was asked whether mutual savings institutions may use the "leeway" investment authorization (Banking Law, §235[29]) for the purpose of making investments which are specifically authorized under one of the other  28 subdivisions of section 235.  The department took the position that since the opening sentence of subdivision 29 explicitly states that the "leeway" provision is applicable to "[i]nvestments which do not qualify under any of the preceding subdivisions," such use of the authorization would be improper.  Thus, the department concluded that a savings institution may not, for example, carry on its books, as a "leeway" investment, bonds and mortgages or notes and mortgages on improved and unencumbered real property which would satisfy the requirements of section 235(6) of the Banking Law, or preferred, [guaranted] guaranteed or common stock of a corporation which would meet the requirements of section 235(26).


Final Amendment to Legal Interpretation LI 4, §4.10

The title of Legal Interpretation Section 4.10 is amended to read as follows:

§ 4.10  Payment of dividends upon conversion from a regular to a [DOD/DOW] Day of Deposit-Day of Withdrawal account.  


Final Amendment to SUPERVISORY PROCEDURE G 111
ADMINISTRATIVE ADJUDICATION POLICY AND PLAN; PROCEDURAL REQUIREMENTS
(Statutory Authority: State Administrative Procedure Act, § 301.3)

Section 111.4 of Supervisory Procedure G111 is amended to read as follows:

Any party to an adjudicatory proceeding may be represented by counsel who shall file a notice as provided in section [166] 168 of the Executive Law.


Final Amendment to SUPERVISORY PROCEDURE CB 101
CONVERSION OF NATIONAL BANKING ASSOCIATION TO STATE
CHARTER

Subdivision (a) of Section 101.4 of Supervisory Procedure CB 101 is amended to read as follows:

  1. Five executed copies of the plan of conversion, signed in accordance with section 1003(4) of the Banking Law, setting forth the terms and conditions of the conversion, the mode of carrying it into effect and the names of the persons proposed as the principal officers of the State bank.  (Pursuant to Banking Law, section [105[6]] 105(5)(a), such plan should stipulate which offices of the converted institution will be continued by it and show the officially designated address of each such office.)


Final Amendment to SUPERVISORY PROCEDURE CB 101
CONVERSION OF NATIONAL BANKING ASSOCIATION TO STATE
CHARTER

Section 101.6 is deleted in its entirety and amended to read: 

§101.6

Historical Note

Sec. repealed, filed July 10, 1984 eff. October 8,1984


Final Amendment to SUPERVISORY PROCEDURE CB 109
PERMISSION TO MAKE EXCESS DEPOSITS

Section 109.1 of Supervisory Procedure CB 109 is amended to read as follows:

A bank or trust company which proposes to deposit an amount in excess of [25] 100% of its capital stock, surplus fund and undivided profits with another banking corporation or a private banker should request the superintendent's permission to make such deposit, in accordance with Banking Law § 106, by submitting a letter application for such permission, addressed to the Superintendent of Banks, New York State Banking Department [2 World Trade Center, New York, N.Y. 10047 (Attention: Commercial Banks Division)], specifying the name of the proposed depositary and the reasons why the applicant wishes to make such deposit.  


  Final Amendment to SUPERVISORY PROCEDURE SB 110
MERGER OF SAVINGS AND LOAN ASSOCIATION OR SAVINGS BANK
INTO SAVINGS BANK

Subdivision (e) of Section 110.1 of Supervisory Procedure SB 110.1 is amended to read as follows:

  1. If the surviving savings bank plans to maintain as a branch one or more offices or maintain as its principal office the principal office of any bank or association being merged, the plan of merger must specifically provide therefor as required by Banking Law, section [240(2)(f)] 240(2)(d).


Final Amendment to SUPERVISORY PROCEDURE MB 101
APPLICATION FOR A LICENSE AS A MORTGAGE BANKER
(Statutory Authority: Banking Law, art. 12-D, § 590)

Subdivision (h) of Section 101.4 of Supervisory Procedure MB 101 is amended to read as follows:

  1. Personal Information.  As applicable, each individual applicant, each director, the three most senior executive officers and, if different, any officer(s) in charge of the New York operations of the licensed mortgage banker and principal stockholder of a corporate applicant, each controlling member of a partnership applicant, or trustee and principal beneficiary of a trust applicant shall complete a personal history questionnaire obtained from the Banking Department.  All of the above shall file an authority to release information form. As applicable, each individual applicant, each director, the three most senior executive officers, and, if different, any officer(s) in charge of the New York operations of the [licenses] licensed mortgage banker and principal stockholder of a corporate applicant, each controlling member of a partnership applicant, or trustee and principal beneficiary of a trust applicant shall submit a signed and acknowledged current, personal financial statement.


Final Amendment to APPENDIX 8

Appendix 8 is deleted in its entirety.