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Can you summarize NYCL BNK Article 3-A?
Banking > Bank Holding Companies; Control of Banking Institutions
Short Summary
This legal document, part of the Consolidated Laws of New York, governs the regulation and control of banking institutions and bank holding companies. It applies to various entities, including banks, trust companies, stock-form savings banks, stock-form savings and loan associations, corporations, partnerships, trusts, unincorporated associations, and individuals residing or doing business in the state of New York. The document defines key terms and provides exceptions for certain entities. It establishes limitations on borrowing money or property from subsidiaries of bank holding companies for the purpose of acquiring shares of stock. It also prohibits executive officers or directors of bank holding companies from borrowing money from subsidiaries, except in conformity with rules and regulations. The document further governs the acquisition of newly chartered banking institutions, imposing limitations on bank holding companies. It outlines the conditions under which acquisitions may be allowed, such as pending applications for mergers or acquisitions of assets. The document also imposes limitations on directors, officers, and employees of bank holding companies and banking institutions, requiring directors contingently obligated on loans to file statements of financial condition. It prohibits executive officers of bank holding companies from holding positions in other financial institutions without permission from the superintendent. The document also governs the acquisition of all the capital stock or membership interests of banks and trust companies, requiring written plans of acquisition to be submitted to the superintendent for approval. It grants stockholders the right to receive payment of the fair value of their shares if they do not assent to the plan of acquisition. The document further governs the acquisition of control of banking institutions by companies, requiring prior approval from the superintendent. It defines ‘control’ and outlines the application process for companies desiring to acquire control. The superintendent has the discretion to determine whether the ownership, control, or holding of voting stock constitutes control. The document provides exemptions for certain types of stock acquisitions and transfers of control by operation of law. No specific penalties are mentioned in this document.
Whom does it apply to?
Banks, trust companies, stock-form savings banks, stock-form savings and loan associations, corporations, partnerships, trusts, unincorporated associations, and individuals residing or doing business in the state of New York
What does it govern?
Regulation and control of banking institutions and bank holding companies
What are exemptions?
Corporations owned by the United States or any state, religious, charitable, or educational corporations or foundations, and corporations or partnerships owning or controlling stock acquired in connection with an underwriting of securities
What are the Penalties?
No penalties specified
Jurisdiction
New York