14 - Powers of the banking board.

§ 14.  Powers of the banking board. 1. For the purpose of effectuating  the policy declared in section ten of this article,  the  banking  board  shall  have  power,  by a three-fifths vote of all its members, to make,  alter and amend resolutions, rules and regulations not inconsistent with  law. Such rules, regulations and resolutions shall  be  brought  to  the  attention  of those affected thereby in a manner to be prescribed by the  board. Without limiting the foregoing power,  resolutions  or  rules  or  regulations may be so adopted for the following specific purposes:    (a)  To approve organization certificates and articles of association,  private bankers' certificates and applications of  foreign  corporations  for  licenses  to  do  business  in  this  state, submitted to it by the  superintendent as provided in this article.    (b) To determine the purposes  for  which  and  the  extent  to  which  capital  notes  or debentures shall be considered and treated as capital  stock  of  corporate  banking  organizations;  but  capital   notes   or  debentures  shall  not be considered or treated as capital stock for the  purposes of sections one hundred ten and  one  hundred  eleven  of  this  chapter.    (c) To grant permission to a trust company, including a national bank,  to  establish  one or more common trust funds upon application and after  inquiry concerning the qualifications of such trust company to  maintain  and  manage  the same, and to regulate the conduct and management of any  common trust fund and for such purpose, but not by way of limitation  of  the  foregoing  power,  to  prescribe (1) the records and accounts to be  kept of such common trust funds; (2) the procedure  to  be  followed  in  adding  moneys  to  or  withdrawing  moneys or investments from any such  common trust fund; (3) the methods  and  standards  to  be  employed  in  determining  the  value of such common trust funds and of the assets and  investments thereof; (4) the maximum amount of  moneys  of  any  estate,  trust  or  fund  which may be invested in any common trust fund; and (5)  the maximum proportionate share of any such common trust fund which  may  be apportioned to any estate, trust or fund; and in connection with such  powers  to classify the corporations maintaining such common trust funds  according to the population of the city, town or village  in  which  the  principal  offices  of such corporations are respectively located and to  prescribe the minimum total of  any  such  common  trust  fund  and  the  permissible  limits  of  investment  therein  in  accordance  with  such  classification.    (cc) To approve the incorporation by or on behalf of  trust  companies  and  national  banks  with  trust  powers  of  a mutual trust investment  company to form a medium for the common  investment  of  funds  held  by  trust   companies,   including  national  banks,  acting  as  executors,  administrators,  guardians,  inter-vivos  or  testamentary  trustees  or  committees   or   conservators   either   alone   or   with   individual  co-fiduciaries, and any amendments of the certificate  of  incorporation  of such mutual trust investment company, and to regulate the conduct and  management of such mutual trust investment company and for such purpose,  but  not  by  way of limitation of the foregoing power, to prescribe (1)  the records and accounts to be kept  by  such  mutual  trust  investment  company;  (2)  the procedure to be followed in the sale or redemption of  stocks or shares therein; (3) the methods and standards to  be  employed  in  determining  the value of such shares in the mutual trust investment  company and the assets and investments  thereof;  and  (4)  the  maximum  proportionate  shares  of any such mutual trust investment company which  may be apportioned or sold to any one trust company or national bank.    (d) To authorize a bank or a trust company to invest  in  the  capital  stock of, or any other equity interest in, any corporation, partnership,  unincorporated  association,  limited liability company, or other entitynot  included  among  the  corporations  or  other  entities  for  which  investment  in  the  capital stock or other equity interest is expressly  authorized by this chapter.    (e)  To  authorize  a  savings  bank  to  invest in the capital stock,  capital notes and debentures of a trust company or other corporation, as  provided in article six of this chapter.    (f) To authorize a savings and  loan  association  to  invest  in  the  capital  stock, capital notes and debentures of a trust company or other  corporation, as provided in article ten of this chapter.    (g) To prescribe from time to time: (1) the rates  of  interest  which  may  be  paid  on  deposits  with  any banking organization and with any  branch or agency of a foreign banking corporation; and (2) the rates  of  dividends  which  may  be  paid  on  shares  of  any  savings  and  loan  association or credit  union,  and  to  prohibit  the  payment  of  such  interest  or such dividends by any banking organization or by any branch  of  a  foreign  banking  corporation.  Interest  or  dividend  rates  so  prescribed need not be uniform.    (h)  To  limit and regulate withdrawals of deposits or shares from any  banking organization, if the board shall find that such  limitation  and  regulation  are  necessary  because  of  the  existence  of  unusual and  extraordinary circumstances. The board shall enter such finding  on  its  records.    (i)  To  prescribe  from  time to time reserves against deposits to be  maintained by banks and trust companies pursuant  to  article  three  of  this  chapter; provided that no reserve requirement imposed by the board  against either time or demand deposits shall require any bank  or  trust  company to maintain total reserves in an amount greater than it would be  required  to  maintain  if  it  were at the time a member of the federal  reserve system; and provided further, however,  that  a  bank  or  trust  company  not a member of the federal reserve system may be authorized by  the board to maintain total reserves against deposits in an amount lower  than the reserves required by  article  three  of  this  chapter  to  be  maintained,  either in individual cases or by general regulations of the  board on such basis as the board may deem reasonable or  appropriate  in  view  of  the character of the business transacted by such bank or trust  company.    (ii) To exempt from reserve requirements prescribed by or pursuant  to  this  chapter  deposits  payable  to  the  United  States by any banking  organization arising solely as a result  of  subscriptions  made  by  or  through  any  such  banking  organization  for  United States government  securities issued under the authority of the second liberty bond act  as  amended.    (j) To grant permission to officers, directors, clerks or employees of  banks   and   trust   companies  to  engage  in  the  issue,  flotation,  underwriting, public sale or distribution at  wholesale  or  retail,  or  through  syndicate  participation  of  stocks,  bonds  or  other similar  securities, and to revoke such permission,  both  as  provided  in  this  chapter.    (k)  To  prescribe  the methods and standards to be used (1) in making  the examinations provided for in this chapter, and (2)  in  valuing  the  assets of banking organizations.    (l)  To  prescribe  the  form  and  contents  of periodical reports of  condition  to  be  rendered  to  the  superintendent  by  banks,   trust  companies, private bankers and branches of foreign banking corporations,  and the manner of publication of such reports.    (m)  To  postpone  or  omit  the  calling for and rendering of reports  provided for  by  this  chapter  if  the  board  shall  find  that  such  postponement  or  omission  is  necessary  because  of  the existence ofunusual and extraordinary circumstances.  The  board  shall  enter  such  finding on its records.    (n)  To  define what is an unsafe manner of conducting the business of  banking organizations.    (o) To define what  is  a  safe  or  unsafe  condition  of  a  banking  organization.    (p) To make variations from the requirements of this chapter, provided  such  variations are in harmony with the spirit of the law, if the board  shall find that such variations are necessary because of  the  existence  of  unusual  and extraordinary circumstances. The board shall enter such  finding on its records.    (q) To establish safe and sound methods of banking and  safeguard  the  interests   of  depositors,  creditors,  shareholders  and  stockholders  generally in times of emergency.    (qq) To permit any banking organization, national banking association,  federal mutual savings bank, federal savings and  loan  association  and  federal  credit  union  to offer graduated payment mortgages which shall  conform to the provisions of section two  hundred  seventy-nine  of  the  real property law.    (s)  To  permit  authorized lenders, as defined by section two hundred  eighty or two hundred eighty-a  of  the  real  property  law,  to  offer  reverse  mortgage loans which shall conform to the provisions of section  two hundred eighty or two hundred eighty-a of the real property law.    (t) To exercise any other power conferred upon the board by law.    2. The board shall consider and make recommendations upon  any  matter  which  the superintendent may submit to it for recommendations, and pass  upon  and  determine  any  matter  which  he  shall  submit  to  it  for  determination.    3.  The  board  shall  submit  to the superintendent proposals for any  amendments to this chapter which it deems desirable.