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NY A06105
Bill
Status
10/26/2015
Primary Sponsor
Annette Robinson
Click for details
AI Summary
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Allows banks and trust companies to require borrowers to place a portion of loan principal into an interest-bearing savings account as a condition for granting a loan, with prior approval from the superintendent of financial services.
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Superintendent may consider examination results, loan terms and structure, underwriting criteria, marketing plans, and other relevant factors when deciding whether to approve such savings-linked loan products.
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Creates an exception to existing banking law that generally prohibits banks from requiring borrowers to make deposits or take other actions entailing additional expense as a condition for obtaining a loan.
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Takes effect immediately upon enactment.
Legislative Description
Relates to loan products that may be offered by banks; authorizes a bank or trust company, with the approval of the superintendent, to offer a loan product that encourages personal savings by requiring a borrower to place a portion of the loan into an interest-bearing savings account.
Last Action
signed chap.380
10/26/2015