Ask Reggi Your Question Now
Can you summarize 3 NYCRR Part 73?
General Regulations of the Superintendent > Electronic Facilities
Short Summary
The document governs the use and establishment of electronic facilities in the banking industry. It prohibits banking organizations from staffing electronic facilities with their employees, except for specific purposes such as equipment demonstration, training nonbank employees, providing information, repairing and servicing equipment, or as security guards. Banking organizations are required to take necessary steps to protect their interests in electronic facilities and safeguard the identity of bank customers. The document also outlines the requirements for notifying the Superintendent for the establishment or sharing of electronic facilities, including providing complete address details, facility type, deposit-taking capability, sharing arrangements, details of transactions involving insiders or related interests, and any additional information required by the department. It allows banking organizations to share electronic facilities with other banking organizations, nonbanking entities, and banking institutions not subject to the document’s provisions. However, certain activities, such as establishing facilities on authorized banking office premises, sharing facilities for specific transactions, and sharing facilities for limited customer use, do not require notification to the Superintendent. The document also specifies that banking organizations can establish or share electronic facilities upon receiving written notification from the Superintendent, provided they meet the requirements of the Banking Law and Part 76 of the Title. The document defines electronic facilities as automated teller machines (ATMs), point-of-sale terminals, and similar devices used for various banking transactions. It clarifies that home banking terminals, telexes, and similar equipment are not considered electronic facilities. Automated teller machines allow deposits, withdrawals, fund transfers, loan repayments, and disbursements, but they are not staffed facilities except for specific purposes mentioned in the document. Point-of-sale terminals are used for fund transfers and recording transactions related to the sale of goods or services. They may also accept deposits, loan repayments, make cash withdrawals, and provide funds against prearranged credit lines. Similar facilities are electronic devices used for banking transactions, which can be staffed by nonbank employees if part of a store’s customer convenience counter or sales desk. The document does not mention specific exemptions or penalties.
Whom does it apply to?
The document applies to banking organizations, which include banks, trust companies, savings banks, savings and loan associations, and out-of-state state banks with one or more branches in New York.
What does it govern?
The document pertains to electronic facilities used in the banking business, including automated teller machines (ATMs), point-of-sale terminals, and similar devices.
What are exemptions?
The document specifies exemptions for certain activities, such as the establishment of electronic facilities on the premises of authorized banking offices, sharing of facilities for specific transactions among banking institutions, clearinghouses, clearing corporations, governmental institutions or agencies, business firms, or similar organizations, and sharing of facilities for customer use limited to obtaining information about account balances, making cash withdrawals, and obtaining cash advances against credit lines.
What are the Penalties?
No specific penalties are mentioned in the document.
Jurisdiction
New York