202-B - Maintenance of assets in this state.

§  202-b.  Maintenance  of  assets  in this state.   1. Upon opening a  branch or agency and thereafter, a foreign banking corporation  licensed  pursuant  to  article  two  of  this  chapter  shall keep on deposit, in  accordance with such rules and regulations as the  banking  board  shall  from  time  to time promulgate by a three-fifths vote of all the members  thereof, with such banks  or  trust  companies  or  private  bankers  or  national  banks  in  the  state  of  New  York  as  such foreign banking  corporation  may  designate  and   the   superintendent   may   approve,  interest-bearing   stocks   and   bonds,  notes,  debentures,  or  other  obligations of the  United  States  or  any  agency  or  instrumentality  thereof,  or  guaranteed by the United States, or of this state, or of a  city, county, town, village, school district, or instrumentality of this  state or guaranteed by this state, or dollar deposits, or obligations of  the  International  Bank  for   Reconstruction   and   Development,   or  obligations   issued   by   the   Inter-American  Development  Bank,  or  obligations of the Asian Development Bank, or obligations issued by  the  African  Development  Bank,  or  obligations issued by the International  Finance Corporation, or bonds, notes, debentures, or  other  obligations  issued  by  or  guaranteed by the Federal Home Loan Mortgage Corporation  (Freddie Mac) or by the Federal National  Mortgage  Corporation  (Fannie  Mae),  or  bonds,  notes,  debentures, or other obligations issued by or  guaranteed by the Student Loan Marketing Association (SALLIE MAE) or all  bonds, notes, debentures, or other obligations issued by  or  guaranteed  by  a  federal  home  loan  bank,  or  bonds, notes, debentures or other  obligations of any unaffiliated issuer provided that,  at  the  time  of  such  investment,  the  obligation has received the highest rating of an  independent rating service designated by the banking board  or,  if  the  obligation is rated by more than one such service, the highest rating of  at  least  two such services, or such other assets as the superintendent  shall by rule or  regulation  permit,  to  an  aggregate  amount  to  be  determined  by the superintendent, based upon principal amount or market  value,  whichever  is  lower,  in  the  case  of   the   above-described  securities,  and  subject  to  such  limitations  as  he  or  she  shall  prescribe; provided, however, that the superintendent may determine,  in  his  or  her discretion, that any such bonds, notes, debentures or other  obligations of a particular issuer are not acceptable  for  purposes  of  meeting  the  requirements  of  this subdivision. The superintendent may  from time to time require that the assets  deposited  pursuant  to  this  subdivision may be maintained by the foreign banking corporation at such  amount,  in  such form and subject to such conditions as he or she shall  deem necessary or desirable for the maintenance  of  a  sound  financial  condition,  the protection of depositors and the public interest, and to  maintain public confidence in the business of such branch or branches or  such agency or agencies. The superintendent may give credit to  reserves  required  to be maintained with a federal reserve bank in or outside the  state of New York pursuant to federal law, subject  to  such  rules  and  regulations  as  the superintendent may from time to time promulgate. So  long as it shall continue business in the ordinary course, such  foreign  banking  corporation  shall  be  permitted  to  collect  interest on the  securities so deposited and from time  to  time  exchange,  examine  and  compare such securities.    2. Each foreign banking corporation shall hold in this state currency,  bonds,  notes,  debentures, drafts, bills of exchange or other evidences  of   indebtedness,   including   loan   participation   agreements    or  certificates,  or  other  obligations payable in the United States or in  United States funds or, with the prior approval of  the  superintendent,  in  funds  freely  convertible  into  United States funds, or such other  assets as the superintendent shall by rule or regulation permit,  in  anamount  which shall bear such relationship as the banking board shall by  regulation prescribe to liabilities of such foreign banking  corporation  appearing  in  the  books,  accounts or records of its agency, agencies,  branch  or  branches  in  this  state  as  liabilities  of  such agency,  agencies, branch or  branches,  including  acceptances  and  such  other  liabilities  (including  contingent  liabilities)  as the superintendent  shall determine, but excluding amounts  due  and  other  liabilities  to  other  offices, agencies or branches of, and affiliates of, such foreign  banking corporation. As used in this subdivision, (i) "affiliate"  shall  mean  any  person  or  entity, or group of persons or entities acting in  concert, that controls, is controlled by or is under common control with  such foreign banking corporation and (ii) "control" means any person, or  group of persons acting in  concert,  directly  or  indirectly,  owning,  controlling  or  holding  with power to vote, more than fifty percent of  the voting stock of a company, or having the ability in  any  manner  to  elect  a majority of the directors of a company, or otherwise exercising  a controlling influence over the management and policies of a company as  defined by the  superintendent  by  regulation.  For  purposes  of  this  subdivision,  the term "person" shall mean a corporation, unincorporated  association, partnership, or any other entity  or  individual.  For  the  purposes  of  this  subdivision  two,  the  superintendent  shall  value  marketable securities at principal amount or market value, whichever  is  lower, shall have the right to determine the value of any non-marketable  bond,  note,  debenture,  draft,  bill  of  exchange,  other evidence of  indebtedness, including loan participation agreements  or  certificates,  or  of  any  other  asset  or  obligation held by or owed to the foreign  banking corporation or its agency, agencies, branch or  branches  within  the  state,  and  in determining the amount of assets for the purpose of  computing the above ratio of assets to liabilities, shall have the power  to exclude in whole or in part any particular asset. If,  by  reason  of  the  existence  or the potential occurrence of unusual and extraordinary  circumstances, the superintendent deems it necessary  or  desirable  for  the  maintenance  of  a  sound  financial  condition,  the protection of  depositors, creditors and the public interest, and  to  maintain  public  confidence  in  the business of the agency, agencies, branch or branches  of a foreign banking corporation, he may,  subject  to  such  terms  and  conditions as he may prescribe, require such foreign banking corporation  to deposit the assets required to be held in this state pursuant to this  subdivision two with such banks or trust companies or private bankers or  national  banks  located  in  this  state,  as  the  superintendent  may  designate.    3. In the event that any of the deposits received within the state  by  a  foreign  banking  corporation  are  insured  by  the  Federal Deposit  Insurance Corporation, the superintendent shall specify what  reasonable  percentage  of  deposit  liabilities  may be excluded in determining the  aggregate amount of liabilities of such foreign banking corporation  for  deposits  received  within  the state for purposes of subdivision two of  this section by reason of the fact that all or a part  of  such  deposit  liabilities are insured by the Federal Deposit Insurance Corporation.