Section 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  an

  amount  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.