§ 1-03 Designation Requirements.
RCNY § 1-03
(a)Banking Commission procedures. Every bank in which City moneys shall be deposited shall be designated by the Banking Commission by majority vote, by written notice to the Commissioner of Finance.
(b)Application for designation: Term. Application for designation shall be continuously available. The Banking Commission shall act on a complete application at its next scheduled meeting, provided a complete application is received at least sixty days in advance of such meeting. Subsequent to its initial designation, to remain a designated bank, a bank must submit a new application to the Banking Commission in the second year following the year of its previous designation. Such new application must be submitted by March 1 immediately preceding the Commission's annual designation meeting in May of such second year. The term of a designation shall be for a period no longer than two years, unless the Banking Commission shall by majority vote extend such designation period.
(c)Content of application for designation. Except as provided in subdivision (f) of this section, a bank's application for designation shall consist of the following: (1) Filings. When applying for designation each bank shall file with the Banking Commission: (i) a copy of the bank's charter; (ii) the names and occupations of the bank's Directors; (iii) the names and titles of bank officers; (iv) the location of the main office and branch offices; (v) the location of all processing centers other than branches; (vi) the independently audited public financial statements for the bank and bank holding company for the most recent fiscal year; (vii) a list of all bank and bank holding company executives, employees, shareholders, legal counsel, consultants and advisors and/or their spouses or domestic partners, who (A) individually, jointly or severally hold in excess of a five percent (5%) beneficial interest in the bank and/or in the bank holding company, and who (B) are, or whose spouses or domestic partners are, contemporaneously elected or appointed holders of public office or of party office in any political party; (viii) written confirmation that a completed Division of Labor Services of the Department of Business Services Supply and Service Rider form for any bank that provides at least one distinct service to the City that incurs an annual service charge of at least $50,000 payable by the City has been delivered to the Division of Labor Services; (ix) the names of the federal and state regulatory agencies with jurisdiction over such bank's Community Reinvestment Act ("CRA") activities; (x) a copy of the most recent federal supervisory agency CRA examination summary report issued on or after July 1, 1990, and the most recent New York State Banking Department examination summary report as applicable; (xi) the most recent federal CRA rating for the bank issued on or after July 1, 1990 and/or the most recent state CRA rating for the bank; provided, however, that any more current federal or state CRA rating issued during the period after designation must be submitted to the Banking Commission upon issuance; and (xii) the name, title, address and telephone number of the bank official who will act as contact for City banking relationship matters involving bank accounts; and (xiii) a copy of the bank's banking development district application and the New York State Banking Department's approval of such application, if applicable, or, in the event the bank did not submit the application, information to establish that the bank has opened a branch in a banking development district after the district's establishment and that location of the branch in the district promotes the purposes of the banking development district program by providing banking services in geographic locations where there is a demonstrated need for such services. After the initial application for designation, in lieu of any one or more of the filings enumerated in subparagraphs (i), (ii), (iii), (v), (vii), (ix) or (xi) above, a bank in subsequent applications for designation, may file with the Banking Commission a certificate signed by the president or other duly authorized officer of such bank, certifying that the information most recently filed by the bank in compliance with each such subparagraph named in a certificate remains current, accurate, full and complete and agreeing that the bank shall deliver new filings in compliance with such subparagraphs to the Banking Commission upon the request of the Banking Commission or upon any change in the information contained in the original filings. Each designated bank shall also submit to the Banking Commission any financial statements, CRA examination summary reports or CRA ratings (as described in subparagraphs (vi), (x) and (xi) above, respectively) issued by or with respect to the bank subsequent to its previous filings with the Banking Commission pursuant to paragraph 1 above. For purposes of this paragraph, "domestic partner" shall mean a person who has registered a domestic partnership in accordance with applicable law with the City Clerk or has registered such partnership with the former City Department of Personnel pursuant to Executive Order 123 (dated August 7, 1989) during the period August 7, 1989 through January 7, 1993. (The records of domestic partnerships registered with the former City Department of Personnel have been transferred to the City Clerk.) (2) Certificates. Each bank shall file with the Banking Commission and the City Clerk the following certificates, each signed by the president or other duly authorized officer of such bank: (i) a certificate setting forth that its board of directors has established and will adhere to a policy of hiring and promotion of employees and officers without regard to race, color, religion, religious affiliation, sex, sexual orientation, national origin, marital status, disability or age. The certificate shall further set forth affirmatively the steps taken by such bank to implement said policy; (ii) a certificate setting forth that the bank adheres and will continue to adhere to all equal credit opportunity laws and that its board of directors has established and will adhere to a policy of nondiscrimination in the bank's delivery of banking services to all customers in New York City, including account openings and the offering and extension of credit, which dealings shall at all times be conducted without regard to race, color, religion, religious affiliation, sexual orientation, sex, marital status, disability, age or national origin, and which certificate shall further set forth the detailed plan and the specific steps affirmatively taken by such bank to implement and monitor said policy; and (iii) a certificate setting forth the bank's policy regarding branch closings, and the specific steps affirmatively taken by the bank to implement and monitor said policy. Such policy shall include but not be limited to: (A) the criteria for evaluating the necessity of a branch closing; (B) the process of assessing the impact of the branch closing on the community, (C) the procedure for notifying a community of a branch closing, including but not limited to, the persons to be notified and the timing of such notification and (D) any plans for the continuation of service to the affected community. After the initial application for designation, in lieu of any or all of the certificates enumerated in subparagraphs (i), (ii), or (iii) above, a bank may file with the Banking Commission a certificate signed by the president or other duly authorized officer of such bank, certifying that the certificate most recently filed by the bank in compliance with each such subparagraph named therein remains current, accurate, full and complete and agreeing that the bank shall deliver a new certificate in compliance with any such subparagraph to the Banking Commission upon the request of the Banking Commission or upon any change in the information contained in the bank's original certificate.
(3)Report on branch network. Each bank shall submit or make available to the Banking Commission, at the Banking Commission's option, a written report on its branch network activities. Such written report shall be certified by the president or other duly authorized officer of the bank and shall include but not be limited to the following information: (i) the address, county, ZIP code and census tract of each branch that was opened, closed, or involved in a consolidation, acquisition or sale during the three prior calendar years and during the current calendar year, or that is planned to be opened, closed or involved in a consolidation, acquisition or sale during the current calendar year, and the date such transaction became or will become effective; and (ii) for each branch closing occurring in the prior calendar year: (A) the reasons for such closing, with any supporting information stated in belief; (B) the past three years', present and projected financial analyses of deposits at the closed branch, including but not limited to historical and projected profit and loss information, and brief descriptions of other material factors in the closing of the branch; and (C) a detailed map of the general area served by such branch, showing the distance from remaining bank facilities or offices of such bank or other institutions providing branch banking services within such area; Any information submitted to the Banking Commission under this paragraph (3) of subdivision (c) shall be deemed confidential and shall be treated as such subject to applicable provisions of law.
(4)Community service rating. The Banking Commission shall rate the community service of each bank filing for designation. The basis of such rating shall be a bank's most recent Federal and State Community Reinvestment Act rating, and may also include such other factors as the Banking Commission deems relevant to achieving the purposes of these rules, including but not limited to a bank's participation in the banking development district program. Each bank shall submit to the Banking Commission any information required by the Commission in order to issue such ratings. Such rating shall be used by City agencies in their process of selecting banking service providers.
(5)Notice. Each bank shall submit to the Banking Commission a written statement certified by the president or other duly authorized officer of the bank that it will give to the Banking Commission notice of changes in its branch network as follows: (i) for a branch closing, notice shall be at least 90 days in advance of the date such closing becomes effective; (ii) for a sale of a branch, notice shall be at least 90 days in advance of the date such sale becomes effective, or upon approval of the transaction by the bank regulator, whichever is later; and (iii) for changes in location of an existing branch, at least 90 days in advance of such change, or when the date of such change in location is known, whichever is later.
(d)Timely submission; extensions.
(1)Each bank seeking designation shall submit its application and any other information required by these rules to the Banking Commission in accordance with this section. If a bank has timely submitted its application, the Banking Commission shall notify such bank if its application is incomplete or is not in compliance with the required format and shall give such bank fifteen days from the date of such notice to complete its application or to conform such application as required.
(2)If a bank knows that it will be unable to complete its application in a timely manner, it may apply for an extension of time for submission of materials to the Banking Commission. The Banking Commission shall have the discretion to grant an extension of time up to an additional thirty days for the submission of missing materials if the bank applies for such an extension thirty days prior to the date the application is due.
(e)Other requirements.
(iv)it shall adhere to its policies as provided in the certificates filed by such bank with the Banking Commission and the City Clerk (A) on branch closings, as set forth in 22 RCNY § 1-03(c)(2)(iii); and (B) of not discriminating in the hiring and promotion of employees and officers or in the provision and delivery of banking services, as set forth in 22 RCNY § 1-03(c)(2)(i) and (ii) (v) if any bank seeking to be designated or any bank that is already designated fails to meet the branch closing formula set forth in 22 RCNY § 1-03(e)(1)(iii) or to conform to any of its policies stated above in paragraph (1)(iv) of this subdivision (e), then such bank shall be given the opportunity to raise relevant material facts in its defense before any action on its designation is taken. If the Banking Commission determines that the bank has either not met the branch formula standards or failed to conform to any stated policies, then the Banking Commission shall not designate such bank or shall revoke its designation upon thirty days' notice to such bank, except as provided in subdivision (f) of this section, and such bank shall be subject to the provisions of 22 RCNY § 1-04.
(f)Necessity exception.
(ii)If such petition is granted, the Banking Commission shall (A) by majority vote designate such bank, in writing, under the necessity exception for the sole purpose of providing such services to the City, (B) state in writing which services provided by the bank are specifically covered by the necessity exception and thus are services that the bank is allowed to provide to the City and (C) send a copy of such designation and written authorization of allowable services to be provided by such bank to the City Office of Contracts, or its equivalent.
