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Adopted Regulations
Final Amendment to General Regulations of the Banking Board Part 4


  MAXIMUM INTEREST RATE ON CERTAIN LOANS
(Statutory Authority: Banking Law, §14-a[2])

Section 4.1 is amended to read as follows:

For the purpose of General Obligations Law section 5-501 and 5-524, and Banking Law section 108(1), 173(1), 202(1), 235-b, [293-a(1),] 380-e, [454(12)(a)(6)] 454(6), 510-a(1) and 577(1), and except as otherwise provided by law, the maximum rate of interest to be charged, taken or received, upon a loan or forbearance of any money, goods, or things in action is as follows:

Effective July 1, 1968………………………………7.25% per annum

Effective February 16, 1969……………………….7.50% per annum1

Effective August 15, 1973…………………………8.00% per annum

Effective October 11, 1973………………………..8.50% per annum2

Effective December 8, 1978……………………….9.50% per annum

Effective May 1, 1979……….……………………..9.75% per annum

Effective August 1, 1979……….…………………10.00% per annum4

Effective November 1, 1979………………………10.25% per annum4

Effective February 1, 1980………………………..10.50% per annum4

Effective May 1, 1980……………………………..10.75% per annum4

Effective August 1, 1980………………………….11.00% per annum4

Effective November 1, 1980………………………11.25% per annum4

Effective December 1, 1980………………………16.00% per annum

Subdivision (c) of Section 4.2 is amended to read as follows:

  1. when applied to any loan or forbearance insured by the New York City Rehabilitation Mortgage Insurance Corporation, shall not include premiums paid for insurance pursuant to section [708] 654(13)(a) of the Private Housing Finance Law.



Paragraph (ii) of Subparagraph (5) of Subdivision (d) of Section 4.3 is amended to read as follows:
  1. the mortgagor may be required to pay such premiums;

as provided in article [IX-E] 65 of the Insurance Law or such other law or laws and regulations promulgated pursuant thereto as may be applicable;


Final Amendment to General Regulations of the Banking Board

Part 8

  BANKING DEVELOPMENT DISTRICTS
(Statutory Authority: Banking Law, §96-d)

 Subdivision (k) of Section 8.4 is amended to read as follows:

  1. specification of whether the proposed banking development district or any portion thereof, lies within an area which has been designated as a New York State [Economic Development] Empire Zone or Enterprise Community or Federal Empowerment Zone or has received similar designation from any Federal, State, or local government entity;


Final Amendment to General Regulations of the Banking Board

Part 10

  PAYMENT OF INTEREST ON MORTGAGE ESCROW ACCOUNTS AND INSURANCE DRAFT ESCROW ACCOUNTS
(Statutory Authority: General Obligations Law, §§5-601, 5-602; Banking Law, §14-b)

 Subdivision (a) of Section 10.2 is amended to read as follows:

  1. Definitions.  The term maintains, for purposes of section 14-b of the Banking Law and section 5-601 of the General Obligations Law, shall mean maintains itself or through an agent.  The term mortgage investing institution, for purposes of section 14-b of the Banking Law and section 5-601 of the General Obligations Law, shall mean and include any bank, trust company, national bank, savings bank, savings and loan association, Federal savings and loan association, private banker, credit union, investment company, insurance company, pension fund, mortgage company or other entity which makes, extends or holds a mortgage on any property owned by a cooperative apartment corporation as defined in subdivision 12 of section 360 of the Tax Law (as such subdivision was in effect on December thirtieth, nineteen hundred sixty), and located in this State, including a governmental or quasi-governmental agency and any institution which has sold or assigned such mortgage if it otherwise continues to service and maintain the escrow account maintained with respect to such mortgage.

 Subdivision (c) of Section 10.2 is amended to read as follows:

  1. If a mortgage investing institution sells either a mortgage on a one- to six-family residence occupied by the owner and located in this State, or a mortgage on any property owned by a cooperative apartment corporation as defined in subdivision 12 of section 360 of the Tax Law (as such subdivision was in effect on December thirtieth, nineteen hundred sixty), and located in this State, to another mortgage investing institution (which may include a governmental or quasi-governmental agency as well as any subsequent purchaser therefrom), the following principles shall apply to the payment of interest on escrow accounts: The mortgage investing institution which owns the mortgage shall be obligated to pay interest on such account, unless such institution is exempt from the requirement to pay interest on such account under proviso (i), (ii) or (iii) of section 14-b(4) of the Banking Law or the provisions of subdivision (b) of this section.   In cases where the mortgage investing institution owning the mortgage is exempt from payment of interest on the escrow account by reason of section 14-b(4)(iii), then interest shall be paid by that mortgage investing institution which does in fact have possession of such escrow account, unless such latter institution is expressly prohibited by the applicable servicing contract from earning or receiving a return from the investment of funds of such escrow account.  Notwithstanding the foregoing, with respect to any mortgage or class of mortgages, the mortgage investing institution owning a mortgage and the mortgage investing institution having possession of the escrow account may by mutual agreement establish which institution shall pay interest on such account.


Final Amendment to General Regulations of the Banking Board

Part 11

  INSIDER TRANSACTIONS
The Statutory Authority to Part 11 is amended to read as follows:

 (Statutory Authority: Banking Law, §14[1] [,[1][0]] [l], [o] )

 Subparagraph (2) of Subdivision (a) of Section 11.3 is amended to read as follows:

  1. $50,000 or one half of [the] one percent of the net worth of the bank, whichever is less, if the total assets of the bank are more than $100,000,000 and not more than [$5000,000,000] $500,000,000.


Final Amendment to General Regulations of the Banking Board

Part 12

  ACQUISITION OF RESIDENCES AND SIMILAR FACILITIES BY BANKS AND TRUST COMPANIES
The Statutory Authority to Part 12 is amended to read as follows:

  (Statutory Authority: Banking Law,§§14[1][d],14[1][s]-[t], 97[5], 98[1][d] [,98[3]])


Final Amendment to General Regulations of the Banking Board

Part 24

  ANNUAL FINANCIAL STATEMENTS OF COMMERCIAL BANKS, TRUST  COMPANIES, STOCK FORM SAVINGS BANKS AND STOCK FORM SAVINGS AND LOANS
(Statutory Authority: Banking Law,§§10, 14[1][m])

The Index is amended to read as follows:

Sec.
24.1        Annual Reports
24.2        Exemptions
24.3        [Definitions] Comparative statements
24.4        [Comparative statements] Inspection
[24.5   Principles of financial reporting]
[24.6   Accrual accounting]
[24.7   Consolidated financial statements]
[24.8   Inapplicable captions]
[24.9   Additional information]
[24.10  Changes in accounting principles and practices and     retroactive adjustments of accounts]
[24.11  Accounting for taxes by cash basis taxpayers]
[24.13  Inspection]


Final Amendment to General Regulations of the Banking Board
Part 26

  STOCK OPTIONS
The Statutory Authority to Part 26 is amended to read as follows:

  (Statutory Authority: Banking Law, [§]§140-a [,313]

Subdivision (a) of Section 26.1 is amended to read as follows:

  1. bank means a bank [,] or trust company [or industrial bank];

Subdivision (b) of Section 26.12 is amended to read as follows:

  1. that the plan is subject to the provisions of the Banking Law, section 140-a [or 313], the regulations of the Banking Board and any other applicable law or regulation;

Section 26.14 is amended to read as follows:

If the superintendent shall find at any time that there has been, with respect to any plan approved by him, any violation of any of the provisions of the Banking Law, section 140-a [or 313], of this Part, or of the plan, he may declare such plan or any option granted thereunder null and void, and in such event shall so advise the bank and, if appropriate, the optionee, by official communications stating the grounds for such declaration, and specifying the action, if any, to be taken by such bank or optionee to effectuate or carry out such declaration.  The superintendent may advise the bank and, if appropriate, the optionee, of the action, if any, to be taken by such bank or optionee to cure the defect.



Final Amendment to General Regulations of the Banking Board
Part 28

  IMPLEMENTATION OF BANKING LAW, SECTION 103
(Statutory Authority: Banking Law, §§103[1][a], [c], [i], 103[4])

  Section 28.4 is amended to read as follows:

Pursuant to Banking Law, section [103.1(c)] 103(1)(c), the Banking Board hereby designates Asian Development Bank, African Development Bank, the International Bank for Reconstruction and Development, and the International American Development Bank as international lending facilities.


Final Amendment to General Regulations of the Banking Board
Part 33

  VARIABLE RATE CLOSED-END PERSONAL LOANS
(Statutory Authority: Banking Law, §§108.4, 202.9, 235.8-b, 352[a], 380-i)

  The second Subdivision (h) of Section 33.2 is to be deleted in its entirety:

  1. the option which will be available to the borrower in the event that the requirements of section 33.7 of this Part apply with respect to the final payment on the loan.


Final Amendment to General Regulations of the Banking Board
Part 50

  MUTUAL TRUST INVESTMENT COMPANIES
(Statutory Authority: Banking Law, §14[1])

Subdivision (a) of Section 50.40 is amended to read as follows:

  1. A mutual trust investment company may invest only in such investments as are legal investments for fiduciaries under the  Estates, Powers and Trusts Law, section [11-22(a)(1)] 11-2.2(a)(1).


Final Amendment to General Regulations of the Banking Board
Part 68

  INVESTMENTS IN SAVINGS AND LOAN SERVICE AGENCIES
(Statutory Authority: Banking Law, §379-a[1])

Subparagraph (i) of Paragraph (2) of Subdivision (b) of Section 68.4 is amended to read as follows:

  1. investments which savings and loan associations may make under the laws of this State; provided, however, that such service agency may make investments which would be permitted a savings and loan association under section 379(7) of the Banking Law, subject to those limitations applicable to such investments in the case of savings banks, except that the limitations contained in section [235(29)] 235(31) (a) and (b) which restrict certain individual investments to one per centum of the assets of the savings bank or 10 per centum of its net worth, whichever is less, and the aggregate amount of such investments to two per centum of its assets or 20 per centum of its net worth, which ever is less, shall be changed to establish a limitation of an aggregate amount of not to exceed 30 per centum of the service agency's net worth;


Final Amendment to General Regulations of the Banking Board
Part 79

  REVERSE MORTGAGE LOANS
(Statutory Authority: Banking Law, §6-h; Real Property Law, §§ 280, 280-a)

  Paragraph (2) of Subdivision (d) of Section 79.5 is amended to read as follows:

  1. The denominator of the ratio shall be determined by increasing or decreasing the appraised value of the real property (as determined at loan closing by an independent certified or licensed appraiser as provided for in [section] article 6-E of the Executive Law) by a factor that the creditor reasonably believes will be the average annual increase or decrease in the value of the real property securing the reverse mortgage loan from the loan closing until the anticipated loan maturity; provided, however, that this factor shall in no event exceed the average of the yearly changes in the Consumer Price Index for Shelter for either the Buffalo Area or New York-Northern New Jersey-Long Island-Connecticut Area for the eight years preceding the year in which the loan is made without the superintendent's prior written approval.  In determining which of the two areas to use, the lender shall use, the lender shall use either the area in which the real property is located or the area which is closest to the real property.


Final Amendment to General Regulations of the Banking Board
Part 86

  ORGANIZATION AND OPERATION OF STOCK-FORM SAVINGS BANKS AND SAVINGS AND LOAN ASSOCIATIONS
(Statutory Authority: Banking Law, §§ 14, 14-e)

Paragraph (3) of Subdivision (a) of Section 86.7 is deleted in its entirety and is amended to read as follows:

  1. [Section 231 -- Notice of intention or organize.] Section 231- [Reserved].

Paragraph (10) of Subdivision (a) of Section 86.7 is amended to read as follows:

  1. Section 245--[Dividends; regulations and restrictions; liability of trustees; extra dividends.] Interest payments.

Exhibit 3 of Section 86.13 is amended to read as follows:

Furnish an opinion of counsel for the converting institution regarding each of the following matters: (a) the legal sufficiency of the converting institution's proposed certificates and order forms for shares of capital stock; (b) the conformance with the Banking Law and any regulations promulgated thereunder of the plan of conversion; (c) the compliance with the Banking Law and any regulations promulgated thereunder of the converting institution's bylaws; (d) the type and extent of voting rights in the converting institution after conversion; [(e) and] and (e) the valid authorization and issuance of the capital stock and the nonassessability of such stock.

  Subdivision (b) of Exhibit 4 to Section 86.13 is amended to read as follows:

  1. Furnish an opinion of the converting institution's tax advisor or if applicable, a ruling from the appropriate State taxing authority, as to [ay] any tax consequences of the plan of conversion to the converting institution and to its depositors and shareholders under the laws of the State of New York.


Final Amendment to Special Regulations of the Banking Board

The Index to Chapter II Special Regulations of the Banking Board is amended to read as follows:

PART
200         Effect of Repeal of Regulations
201         Exceptions from Part 20 (Payment of Interest on Commercial Bank Deposits)
202    [Reserved]
203         Permission to Serve as Director, Officer or Employee of Securities Firms
204       Authorization to Act as Financial Agent of United States Government
205       [General Authorization to Hold Certain Capital Stock] [Reserved]
206     Equity Method of Accounting
[Permission to Serve as an Executive Officer, Director or Trustee of Banks, Trust Companies, Savings Banks, Savings and Loan Associations, National Banks, Fed-
207    eral Savings and Loan Associations and Bank Holding Companies]
207    Permission to Serve as an Executive Officer, Director or Trustee of Banks, Trust Companies, Savings Banks, Savings and Loan Associations, National Banks, Federal Savings and Loan Associations and Bank Holding Companies
208        [Reserved]
[Procedure for Meetings of Members and for Nomination and Election of Members of the Board of Directors and Certain Committees of the Municipal Credit Union of the City of New York While the Superintendent is in Possession of the Business and
209    Property Thereof Pursuant to Section 606 of the Banking Law]
209    Procedure for Meetings of Members and for Nomination and Election     of Members of the Board of Directors and Certain Committees of the Municipal Credit Union of the City of New York While the Superintendent is in Possession of the Business and Property Thereof Pursuant to Section 606 of the Banking Law