NY S03755

Creates Article 2-D in Banking Law to authorize community banks to invest in service corporations that provide specialized services to financial institutions and perform authorized banking activities.

Permits community banks to invest in stock, capital notes, and debentures of service corporations for 18 specified activities including accounting, auditing, loan origination, insurance brokerage, real estate services, securities brokerage, trust services, and credit card operations.

Limits community bank investments in service corporations to 5% of the bank's assets and requires all stock in service corporations to be owned by one or more community banks.

Defines "community bank" as banks, trust companies, national banking associations, savings banks, or savings institutions with average asset values not exceeding $8 billion.

Takes effect 60 days after enactment into law.