Explanatory All Institutions Letter
May 10, 2007
TO THE INDIVIDUAL OR INSTITUTION ADDRESSED:
RE: Adoption of Amendments to Part 73 of the General Regulations of the Banking Board, Title 3 NYCRR (Electronic Facilities)
The Banking Board has adopted the attached amendments to Part 73 of the General Regulations of the Banking Board as a final rule. The amendments will become effective upon publication in the State Register, which is expected to occur on May 23, 2007.
The amendments eliminate certain items of information currently required to be included in an application for an electronic facility, including the requirements for a Board resolution, information on costs, the names of any initial sharing institutions, and a description of the activities to be conducted.
The Banking Board originally proposed substantially similar amendments to Part 73 in March 2005 as part of a larger package of proposals to streamline branch and related applications for various types of banking organizations.
The amendments to Part 73 proposed previously included both the changes now being made and a proposal to permit a banking organization with a CRA rating from the Department of “satisfactory” or better to give notice to the Department within 10 days after establishing or sharing an electronic facility.
In response to concerns expressed in comments from certain members of the Legislature, the initial proposal to amend Part 73 was withdrawn. Unlike that prior proposal, the current amendments do not affect the requirement that all banking organizations wishing to establish or share an electronic facility provide prior notice to the Department.
Very truly yours,
Sam L. Abram
Secretary of the Banking Board