Section 96-D. Banking development districts

1. * There is hereby created a
  banking development  district  program,  the  purpose  of  which  is  to
  encourage  the  establishment  of  bank branches in geographic locations
  where there is a demonstrated need for  banking  services.  The  banking
  board   shall,   in   consultation   with  the  department  of  economic
  development, promulgate rules and regulations, after public hearing  and
  comment,  which  set forth the criteria for the establishment of banking
  development districts. Such criteria shall include, but not  be  limited
  to, the following:
    * NB Effective until January 1, 2012
    * There  is hereby created a banking development district program, the
  purpose of which is to encourage the establishment  of  commercial  bank
  branches  in geographic locations where there is a demonstrated need for
  banking services. The banking board  shall,  in  consultation  with  the
  department  of  economic  development, promulgate rules and regulations,
  after public hearing and comment, which set forth the criteria  for  the
  establishment  of  banking  development  districts.  Such criteria shall
  include, but not be limited to, the following:
    * NB Effective January 1, 2012
    (a) the  location,  number,  and  proximity  of  sites  where  banking
  services are available within the district;
    (b)  the  identification of consumer needs for banking services within
  the district;
    (c) the economic viability and local credit  needs  of  the  community
  within the district;
    (d) the existing commercial development within the district;
    (e)  the  impact  additional  banking services would have on potential
  economic development in the district; and
    (f) such other  criteria  which  the  superintendent  in  his  or  her
  discretion shall identify as appropriate.
    2.  A  local  government, in conjunction with a bank, trust company or
  national bank, may submit an application to the superintendent  for  the
  designation  of a banking development district. The superintendent shall
  issue a determination on  such  an  application  within  sixty  days  of
  receiving   such   application.  If  an  application  is  approved,  the
  superintendent shall transmit notification of such approval to the local
  government,  the  bank,  trust  company  or  national  bank,  the  state
  comptroller,  the commissioner of taxation and finance, the commissioner
  of the department of economic development, the  temporary  president  of
  the senate and the speaker of the assembly.
    2-a. Notwithstanding any other provision of law, an application may be
  submitted  by  a  local  government  in  conjunction  with a bank, trust
  company or national bank which has already opened a bank  branch  within
  such  area, provided such branch was opened after December thirty-first,
  nineteen hundred ninety-six.  In  considering  the  criteria  authorized
  pursuant  to  subdivision  one of this section, the superintendent shall
  also take into account the importance and  benefits  of  preserving  the
  banking services offered by the existing branch.
    * 3.  The  establishment of a branch in a banking development district
  by a bank, trust company or  national  bank  shall  be  subject  to  all
  applicable  state and federal laws regarding the establishment of branch
  offices, including the provisions of section one hundred  five  of  this
  article,  provided  however  that  the  branch  application fee required
  pursuant to section twenty-nine of this chapter shall be waived for  any
  such branch. A bank or trust company may submit an application to open a
  branch  office simultaneously with the submission of the application for
  the designation of a banking development district.
    * NB Effective until January 1, 2012

    * 3. The establishment of a branch in a banking  development  district
  by  a  bank,  trust  company  or  national  bank shall be subject to all
  applicable state and federal laws regarding the establishment of  branch
  offices,  including  the  provisions of section one hundred five of this
  article.  A  bank  or  trust company may submit an application to open a
  branch office simultaneously with the submission of the application  for
  the designation of a banking development district.
    * NB Effective January 1, 2012
    4. For the purposes of this section, the term "local government" shall
  mean a county, town, city or village.
    * 5.  (a) Notwithstanding the provisions of subdivision two of section
  two hundred thirty-seven of this  chapter;  for  the  purposes  of  this
  section,  paragraph  c  of subdivision two of section ten of the general
  municipal law, subdivision six of section one hundred five of the  state
  finance  law and section four hundred eighty-five-f of the real property
  tax law, any reference to a bank, trust company or national  bank  shall
  be  deemed  to  include  a  savings  bank, savings and loan association,
  federal savings and loan association or federal savings bank;  provided,
  however,  that  such  provisions  of  law  do  not grant a savings bank,
  savings and loan association, federal savings and  loan  association  or
  federal  savings bank eligibility to accept municipal or public funds or
  municipal or public moneys other than for the limited  purposes  of  the
  establishment  of a branch in a banking development district pursuant to
  this section. Any such municipal or public  funds  or  moneys  shall  be
  deposited  only  at the branch established pursuant to this section, and
  any municipal funds or moneys may be deposited only  by  the  sponsoring
  municipality  in  which  the branch and banking development district are
  located; provided further that any such municipal  or  public  funds  or
  moneys  shall  be  subject  to  the  same  requirements  which  apply to
  municipal or public funds or moneys deposited in a bank,  trust  company
  or  national bank and shall also be subject to the provisions of section
  one hundred five of the state finance law or section ten of the  general
  municipal law relating to such deposits.
    (b)  Notwithstanding  any  other  provision  of law, the banking board
  shall promulgate rules and regulations to authorize the participation of
  savings banks, savings and loan associations, federal savings banks  and
  federal  savings  and  loan  associations  in  the  program  established
  pursuant to this section.
    * NB Repealed January 1, 2012
    6. For the purposes of this section, nothing shall  preclude  a  bank,
  trust company or national bank from seeking approval to establish one or
  more  branches  in  an existing banking development district where it or
  another bank has or is authorized to have a branch. The department shall
  have the authority to approve any bank, trust company or  national  bank
  for  participation  in the banking development district program, and any
  branch approved pursuant to this section  shall  operate  in  accordance
  with  this  section  and  is  eligible for all the rights and privileges
  authorized by this section.