N.Y. Banking Law § 240 Restrictions As to Place of Business; Branch Offices

• Library: New York Statutes
• Edition: 2023
• Currency: Current through 2023 NY Law Chapter 682

1. A savings bank shall not be located in the same room with or in a room connecting with any bank, trust company or national bank, unless it be a savings bank lawfully so located when this act takes effect. The prohibitions of this subdivision shall not apply to automated teller machines, point-of-sale terminals and similar facilities established pursuant to section one hundred five-a, two hundred forty-a or three hundred ninety-six-a of this chapter or pursuant to any federal law authorizing a national bank to operate a similar facility.

2. No savings bank, or trustee, officer, agent or employee thereof, shall transact any part of its usual business of banking at any place other than its principal office except as follows:

(a) A savings bank may open and occupy one or more branch offices at any location in the state. In addition, a savings bank may open and occupy a branch office or branch offices in one or more places located without the state of New York.

(b) An office of an affiliated bank at which the customers of a savings bank may make deposits, renew time deposits, make withdrawals, close loans, service loans, and receive payments on loans and other obligations shall not be deemed a branch office of such savings bank. For the purposes of this section, the term "affiliated bank" means any bank, as such term is defined in section 3(a)(1) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(a)(1) ), that is a subsidiary of the same bank holding company, as that term is defined in section 2 of the Bank Holding Company Act ( 12 U.S.C. 1841 ).

(c) Except for the city or village in which its principal office is located, no branch office may be opened and occupied pursuant to paragraph (a) of this subdivision in any city or village with a population of fifty thousand or less and in which is already located the principal office of a bank, trust company or national banking association, other than a bank holding company, if such bank holding company is a banking institution, or a banking subsidiary of a bank holding company, as such terms "bank holding company", "banking institution" and "banking subsidiary" are defined in section one hundred forty-one of this chapter except that the definition of "bank holding company" is modified to change the phrase "a banking institution" wherever it appears therein to "two or more banking institutions" and the definition of "banking institution" is modified to add a national banking association, the principal office of which institution is located in this state.