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Wild Card Approvals

Resolution

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WHEREAS, pursuant to Section 12-a of the Banking Law, the Banking Board may, upon recommendation of the Superintendent, adopt a resolution authorizing one or more state chartered banking institutions to exercise a federally permitted power (as such term is used in Section 12-a), subject to such terms and conditions as the Superintendent shall find necessary and appropriate and as the Board shall approve; and

WHEREAS, Title 12, United States Code, Section 92a, and Title 12, Code of Federal Regulations, Part 9, permit a national bank to conduct fiduciary activities and particularly to invest assets held as fiduciary in collective investment funds to the extent and in the circumstances specified therein; and

WHEREAS, the Superintendent has recommended that the Banking Board adopt a resolution authorizing The Bank of New York to conduct fiduciary activities and particularly to invest assets in collective investment funds to the same extent and subject to the same conditions as permitted for national banks pursuant to Title 12, United States Code, Section 92a, and Title 12, Code of Federal Regulations, Part 9; and

WHEREAS, such recommendation has been posted upon the bulletin board of the Banking Department pursuant to Section 42 of the Banking Law for at least 30 days; and

WHEREAS, the Banking Board hereby finds that approval of such recommendation is consistent with the policy of the State of New York as declared in section 10 of the Banking Law and thereby protects the public interest, including the interests of depositors, creditors, shareholders, stockholders and consumers, and is necessary to achieve or maintain parity between banks and trust companies and national banks with respect to rights, powers, privileges, benefits, activities, loans, investments or transactions; and

WHEREAS, the Superintendent has submitted information and his recommendations to the Banking Board.

NOW, THEREFORE, BE IT RESOLVED THAT

Notwithstanding anything in the New York Banking Law or regulations thereunder to the contrary, this Board, pursuant to Section 12-a of the Banking Law, hereby authorizes The Bank of New York:

  1. to charge fees and compensation (such as custody and administrative fees, and securities lending compensation, but not investment management fees) at the common trust fund (“CTF”) level, to the same extent and subject to the same conditions as permitted for national banks;

  2. to establish and/or maintain CTFs without being subject to the requirement of periodic judicial accounting, to the same extent and subject to the same conditions (such as required annual independent audits) as permitted for national banks;

  3. with respect to its short term investment CTFs, to invest in debt obligations without limitation as to maturity, to the same extent and subject to the same conditions (such as requirements regarding average portfolio maturity) as permitted for national banks;

  4. to establish or maintain CTFs without filing a copy of each plan of operation or amendment thereto with the Superintendent prior to its effective date, provided that copies of such plans and amendments are maintained and available for inspection in accordance with applicable regulations of the Office of the Comptroller of the Currency (“OCC”);

  5. to permit its trust investment committee having responsibility for oversight of CTFs to (a) delegate the duties of periodic valuation of CTF investments, to the same extent and subject to the same conditions as permitted for national banks, and (b) delegate the duty of permitting admissions and withdrawals of CTF participants subject to conditions established by the committee;

  6. to allow a participant’s interest in a CTF to exceed 10% of the value of the fund, to the same extent and subject to the same conditions as permitted for national banks, provided that disclosure of whether the CTF currently has any participants holding in excess of a 10% interest in that CTF is made to a new participant (other than a new participant in a short term investment fund) in advance of its initial participation in such CTF;

  7. to the same extent and subject to the same conditions as permitted for national banks, value investments on the basis of market valuations obtained from recognized pricing services or brokers, and if market quotations are not readily available, by a method that it believes accurately reflects fair value;

  8. to accumulate income in a CTF to the same extent and subject to the same conditions as permitted for national banks;

  9. to the same extent and subject to the same terms and conditions as permitted for national banks, make investments for a CTF in stocks, bonds, other CTFs or other securities or obligations issued or guaranteed by one issuer even though the total invested in such stocks, bonds, CTFs and other securities or obligations could exceed 10% of the value of the fund, provided that disclosure of this possibility is made to new participants in advance of their participation;

  10. to the same extent and subject to the same conditions as permitted for national banks, deposit securities investments of CTFs with foreign depositories, clearing agencies, subcustodians and banks;

  11. to the same extent and subject to the same conditions as heretofore permitted for Mellon Bank, N.A. and Mellon Trust of New England, National Association (together, “Mellon”) by the OCC, to permit its index and model-driven funds to invest in stock of The Bank of New York Mellon Corporation, when including stock of the parent helps better replicate the index;

  12. to the same extent and subject to the same conditions as heretofore permitted for Mellon by the OCC, to permit in-kind contributions to its decommissioning trust CTFs, as well as to include fossil fuel trusts as authorized participants in such funds;

  13. to the same extent and subject to the same conditions as heretofore permitted for Mellon by the OCC, to establish rules varying the types of distributions permitted to withdrawing participants from its decommissioning trust index fund CTFs based on the size of their investments;

  14. to the same extent and subject to the same conditions as heretofore permitted for Mellon by the OCC, to permit withdrawals from CTFs and collective investment funds (“CIFs”) on the same date in cash or in kind or in a combination of the two;

  15. to the same extent and subject to the same conditions as heretofore permitted for Mellon by the OCC, to invest assets of employee benefit plans that the bank holds in the capacity of trustee, investment manager, directed agent or non-discretionary custodian in CIFs;

  16. to the same extent and subject to the same conditions as heretofore permitted by the OCC, to allocate costs, expenses and related adjustments in connection with admissions or withdrawals from model-driven funds and index funds to individual participants rather than to such funds;

  17. to the same extent and subject to the same conditions as heretofore permitted for Mellon by the OCC, to permit trusts created by certain foreign organizations to invest in CTFs established for tax-exempt participants; and

  18. to the same extent and subject to the same conditions as heretofore permitted for Mellon by the OCC and as permitted for national banks generally, to collectively invest assets of trusts created by affiliated corporations or closely related settlors without complying with the regulatory requirements applicable to CTFs.