§ 1-04 Revocation and Consequences of Nondesignation.
RCNY § 1-04
(a)Except as provided for under the necessity exception, the Banking Commission shall not designate any bank if it determines in writing, by majority vote, that such bank has not complied with any designation requirement contained herein.
(b)If the Banking Commission shall determine in writing, by majority vote, that a designated bank has violated any designation requirement stated herein and that such bank is not subject to the necessity exception, then the Banking Commission shall revoke its designation upon thirty days' notice to such bank. If a designated bank violates the branch closing formula that is set forth in paragraph (1)(iii) of subdivision (e) of 22 RCNY § 1-03 or fails to conform to any of the policies listed in paragraph (1)(iv) of that subdivision, then such bank shall be given the opportunity to raise relevant material facts in its defense before any action on its designation is taken.
(c)If the Banking Commission does not designate a bank or revokes its designation based upon the bank's failure to meet the City's designation requirements as stated herein, and if such bank has not been conditionally designated, then such bank shall be prohibited from holding City or public administrator deposits, and from providing banking services to the City, and making agreements or contracts with City agencies for banking services that are incidental to the holding of deposits of City moneys.
(d)In any such case described in subdivisions (b) and (c) herein, City agencies or public administrators that obtain any services incidental to the holding of City deposits from such bank must prepare a plan for the prompt and orderly withdrawal of funds from the bank, including but not limited to, termination of any agreement with such bank for the provision of banking services incidental to the holding of deposits of City moneys and removal of any City deposits from such bank.
(e)Any bank not designated by the Banking Commission or whose designation has been revoked, may resubmit its application for designation in accordance with the provisions of these rules.
