MEMBERSHIP APPLICATION

Click here for a membership application.
All membership applications are subject to approval by the New York Bankers Association's Board of Directors.

Click on Member List to find lists of current members in the various categories.

We look forward to receiving your application. If you have any questions, please call Mary K. Robb, NYBA Senior Vice President, at (212) 297-1662 or e-mail her at mrobb@nyba.com.

WHY JOIN?

LEADERSHIP FOR A NEW CENTURY: KEY VICTORIES SINCE 1990

Permanent deregulation of interest rates, consumer loans, fees and products – NYBA has been at the forefront of a comprehensive strategy to deregulate pricing and usury ceilings.  In 1994, all State usury ceilings on loans were permanently deregulated.  At NYBA’s request, the New York State Banking Board approved a sweeping deregulation of NSF fees, eliminating the $15.00 fee cap for state banks.  The Association also worked to defeat legislative efforts to re-cap the fees.  The Association has been successful in resisting local and state initiatives to ban or cap ATM convenience fees. Also, the State Banking Board, in response to a NYBA petition, has approved a regulation authorizing state-chartered banks to charge daily overdraft fees. In 2007, NYBA successfully urged the rejection of several pieces of state legislation that would have severely hampered banks’ ability to use risk-based pricing for certain credit products.  

State Regulatory Agency Consolidation – NYBA worked closely with newly-elected Governor Andrew Cuomo this year on his proposal to merge the State’s banking and insurance departments with the consumer protection board.  In the final budget, many of the improvements sought by NYBA were adopted, including maintenance of distinct assessments for insurance and banking, more reasonable hearing processes, strong but fair consumer protection provisions, and more reasonable penalty provisions.  Importantly, the final budget removes penalties as a funding mechanism for the Department’s internal consumer protection unit.


Financial Modernization – In November 1999, the Gramm-Leach-Bliley Act became law, setting forth a legal framework within which all financial services firms could finally compete on a level playing field.  The New York Bankers Association, using its breakthrough détente with the insurance industry in New York , led negotiations at the national level to forge a compromise on the all-important insurance provisions of the legislation.  Similar state legislation was adopted in 2000.  In 2007, NYBA successfully worked to win passage of a law which requires the Banking Superintendent to act within 45 days of receipt on all “wild card” applications from State-chartered banks or groups of banks (including NYBA).  The Superintendent could forward the application to the Banking Board for a vote, deny the application, impose conditions on the application or ask for up to an additional 120 days to consider the application.  The law is designed to address delays in processing “wild card” applications under the current law. More recently, NYBA has contributed input to the Governor’s New York State Commission to Modernize the Regulation of Financial Services, in which it seeks regulatory relief aimed at enhancing the competitiveness of the New York State Banking Charter, as well as retaining New York ’s preeminence as a global financial center. In 2011, the Gramm-Leach-Bliley transitional rules were extended for another two years, until December 2013.  

“Wild Card” Legislation – “Wild Card” legislation, which authorizes the New York State Banking Board to approve new activities and products for State-chartered banks, thereby restoring State-chartered banks’ historical parity with national banks, passed in 1997 and was extended for two years in 1998.  In 1999, the Legislature extended the law for three years.  In 2003, NYBA achieved the longest ‘wild card’ extension ever, preserving this important law for another four years. The Association’s first “wild card” petition – giving state-chartered banks the ability to sell all lines of insurance directly to their customers – was granted in 1998. In 2001, the Banking Board approved a NYBA-originated proposal to reduce the number of state-chartered bank board of directors meetings from 10 to 6 per year.  NYBA also relied on the parity goals of the “wild card” statute and petitioned for a regulation to permit boards of directors of New York State-chartered banks to take action using unanimous written consent. As a result, the Banking Department also has finalized a regulation which sets forth the permissible uses of the unanimous written consent vehicle. Recently, the Banking Board gave final approval of a NYBA-initiated petition to authorize state-chartered banks to underwrite municipal revenue bonds.  Finally, the State Banking Board, in response to a NYBA petition, also authorized a final regulation permitting state-chartered banks to charge daily overdraft fees.   In 2011, the law was extended until September 2014.  

Financial Rescue of 2008 - In September 2008, as Congress and the Bush Administration continued to negotiate a massive rescue program for the nation’s financial markets, NYBA was among the first Associations to alert its members and colleagues across the country as to the impact of the Treasury’s proposal to guarantee money market mutual funds. NYBA called CEOs together and communicated a strong message directly to the Federal Reserve Bank of New York and to members of Congress to ensure that the unlimited guarantee would not cause massive deposit outflows.  Treasury ultimately amended its program to limit the guarantee to funds invested as of close-of-business Friday, September 19.

Dodd-Frank Wall Street Reform Act -  NYBA was very active in seeking amendments which the industry identified as critical to New York banking institutions.  Among the improvements NYBA was successful in helping to achieve were: (1) a more workable preemption provision; (2) maintenance of the independent election of the New York Fed’s President by the Board of Directors, although bankers lose voting rights; (3) maintenance of the thrift charter; (4) a SOX exemption for public filers with less than $75 million in capital; (5) an exemption for traditional mortgages from the 5% risk retention requirement; (6) removal of a proposed provision which would have imposed national bank lending limits on state institutions; and (7) the inclusion of fraud losses within the interchange fee calculation.  The Association’s efforts have shifted focus toward two directions, first, engagement in the rulemaking process to implement the provisions of the Act, and, second, developing and pursuing enactment of important technical and procedural amendments to make the bill more workable.  The Association will work with our national trade groups and other state associations in seeking further improvements to the Act.  

Privacy – NYBA was the first banking trade association in the nation to develop Privacy “Best Practices Guidelines” for Financial Institutions.  The Association also played a leadership role in forming an inter-industry coalition to coordinate state-level privacy efforts and provided testimony before several committees of the New York Assembly urging that the privacy provisions of Gramm-Leach-Bliley were sufficient to protect the interests of New York consumers. The initiative resulted in the successful resistance to new, onerous state privacy legislation.  However, the Association strongly supported other efforts to protect consumer privacy such as the criminalization of identity theft and a statewide “do not call” registry. NYBA also worked to develop a reasonable data security notification bill and is now supporting a bill that would penalize “phishing.”  

Uniform Commercial Code (UCC) Article 9 – The Association achieved a top legislative priority when the revised Article 9 of the UCC was enacted in New York effective July 1, 2001.  The statute governs all loans secured by personal property and has been called the most significant new commercial law in the U.S. since 1972.  

Municipal Finance Reform – The State legislature adopted in 1998 an Association priority that reenacted and made permanent the collateral provisions of the 1992 revision to the General Municipal Finance Law and subjected indirect investment vehicles, such as CLASS, to extensive new governance and regulatory procedures, greatly reducing collateral costs for banks. NYBA was successful in opposing bills in 2003, and again in 2004, that would have authorized local governments to invest in mutual funds and that would have created a state-run investment pool (STIP) for municipal deposits. In 2005, NYBA successfully fought for the removal of STIP authorizing language from State Budget proposals, and was successful in strictly limiting the scope of a bill authorizing some localities to invest in money market mutual funds.  The final legislation also included a provision calling for the pooling of collateral – a goal sought by NYBA for fifteen years.

    As a result of mutual fund legislation passed in 2005, banks statewide are now permitted to pool the collateral backing their local government deposits. The collateral pooling provision was first sought by NYBA more than fifteen years ago and will provide significant efficiencies in managing local government collateral. In 2006, NYBA’s Municipal Finance Committee worked extensively with the State Comptroller’s Office to develop an acceptable model pooled collateral agreement.  The Committee forwarded comments to the Comptroller’s Office on its initial draft.  NYBA’s comments highlighted four major objections.  First, we urged that no excess collateralization be required; the draft called for collateral equaling 110% of uninsured deposits.  Second, NYBA asked that collateral revaluation be required no more frequently than monthly; the draft required daily mark-to-market of collateral.  Third, NYBA opposed the requirement that a third-party custodian be used to hold the collateral, pointing out that banks are not currently required to use such custodians.  Fourth, NYBA urged that collateral requirements be determined on the basis of closing balances; the draft would require collateralization of balances as of 10:00 a.m.  The State Comptroller’s Office has released a model agreement that addresses many, but not all, of the concerns raised by NYBA.  The model agreement reduces to 102% the coverage required for pooled collateral and makes reporting deadlines consistent with other banking transactions.  NYBA remains concerned that the model agreement still requires a third-party custodian, but the cover letter to municipalities emphasizes that the agreement is a model subject to negotiations between banks and their depositors.

     Additionally, NYBA is pursuing legislation to authorize certificate of deposit pooled deposit insurance programs, such as the Certificate of Deposit Account Registry System (CDARS), to provide expansive deposit insurance coverage for local government depositors, and has enlisted the critical support of State Comptroller Thomas DiNapoli in this effort.  NYBA is also supporting a review of the current collateral list to determine whether there are other commonly acceptable forms of collateral that may be added to the list.  

Right to sell property & casualty insurance – As a direct result of the court case brought by NYBA and The Canandaigua National Bank and Trust Company, in combination with a “wild card” petition filed by NYBA, all banks in New York State gained the right to sell property and casualty insurance to their loan customers.  

Bank Tax Rate Reform and Reduction – NYBA achieved its number one 1999 state legislative priority when then-Governor Pataki signed into law a bank tax rate reduction that is saving the State’s banking industry over $100 million per year.  The reduction called for a ½% annual tax rate cut over three years, bringing the rate down to 7.5% by 2002.  In 2003, this important tax reform was extended. In addition, the State Legislature passed a NYBA-initiated measure that clarifies the tax treatment of trusts established in out-of-state affiliates of New York banks.  The legislation is important for maintaining New York as a headquarters state for the trust industry. In 2005, and again in 2006, NYBA’s grassroots efforts helped preserve the tax deduction for REIT dividends despite Governor Pataki’s effort to eliminate the deduction as part of his State Budget proposal. In 2007, the Executive Budget proposed wide-ranging and potentially hurtful measures that would have effectively doubled the state taxes on banks. After a 60-day long negotiation, coupled with a statewide grassroots and public relations campaign, NYBA was able to achieve a result none thought possible, including elimination or softening of a number of potentially very damaging provisions, as well as a reduction in the bank tax rate from 7.5% to 7.1%.  

Deposit Insurance Reform – NYBA chaired a national task force of state banking association executives on federal deposit insurance reform. Its objective was to achieve industry consensus on the issue of 100% coverage of municipal deposits. In addition, for the past several years, NYBA’s own task force on deposit insurance  recommended that the current coverage level be increased to an amount indexed to inflation, and that new entrants be assessed an initiation fee.  The recommendation also envisions a merger of the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) in conjunction with the coverage increase. In 2001, NYBA played a leadership role in helping to craft a unified, national industry policy on this important issue.  The Association was successful in its efforts to get a municipal deposit coverage provision included in House and Senate legislation in 2002. The House passed the bill in 2003. While the final legislation passed in 2005 does not contain the municipal coverage provision, it does merge the BIF and SAIF, increase coverage on retirement accounts to $250,000 and contains adjustments for inflation in 2010.  

Commercial Mortgage Foreclosure – The State enacted in 1998 a major NYBA initiative permitting lenders to engage in uncontested foreclosures on commercial properties in an expedited non-judicial proceeding. The bill was set to expire on July 1, 2001, but the legislature granted a four-year extension during the 2001 session. A second four-year extension until 2009 was enacted in the 2005 legislative session.  

Predatory Lending and Mortgage Reform – For more than six years, and before the rest of the nation became concerned about the proliferation of certain unaffordable home loans, NYBA led a legislative, regulatory and public relations initiative to help eradicate abusive lending practices while educating the public and key policymakers on the difference between predatory and sub-prime lending.  The Association’s High Cost Home Loan Working Group launched an innovative communications/outreach pilot project, in conjunction with U.S. Senator Charles E. Schumer and New York City faith-based organizations, designed to help potential borrowers in low- and moderate-income neighborhoods achieve their goal of homeownership.  NYBA, in addition to working closely with the Federal Trade Commission on a consumer education initiative, was the first banking trade association to develop Best Practices Guidelines for High Cost Home Lending. With the passage in the fall of 2002 of both a statewide high cost home lending law and a New York City Council ordinance designed to prohibit financial firms that grant, underwrite or securitize certain loans deemed to be predatory from doing business with the City, the focus of the predatory lending issue shifted from the legislature to the regulators and the court system. The Association filed an amicus brief in Mayor Bloomberg’s suit which overturned the New York City ordinance. In the wake of the most recent foreclosure crisis of 2007-08, NYBA launched a successful full-scale public relations and grassroots campaign to defeat a one-year foreclosure moratorium in New York State . Both Houses passed a mortgage reform bill in which NYBA was been deeply involved in negotiating.  The final bill was materially improved from the original. Aside from a new 90-day pre-foreclosure notice provision, the bill also contains increased thresholds, another major NYBA goal, and links thresholds to a more appropriate standard, the Freddie Mac weekly survey of loan rates in the northeast, rather than comparable Treasury rates.  Importantly, the Banking Superintendent has also been given authority to raise the thresholds in certain circumstances. Another NYBA goal was achieved when the authors of the bill dropped the ‘ability to repay’ standard for prime loans.  Finally, the penalty provisions were scaled back, there is no longer a right of rescission and the newly established crime of mortgage fraud does not exempt the borrower, as the original proposal did.  

Bank Security – NYBA formed a Bank Security Task Force in response to an increase in notepasser bank robberies in the New York City area.  The Task Force developed Best Practices that were presented at a joint news conference with the New York City Police Department.  The partnership resulted in a significant decrease in the number of bank robberies in New York City . NYBA continues to work cooperatively with law enforcement and has been effective in increasing awareness of and participation in the NYPD’s A.P.P.L. communications system.  In addition, NYBA was successful in resisting inflexible security mandates, including ATM ‘panic buttons’ – technology that has been proven ineffective in banking industry tests. The Task Force continues to meet with law enforcement periodically, as circumstances require. In 2009, NYBA successfully defeated another attempt by the New York City Council to mandate Level II anti-ballistic “bandit barriers” at all teller stations in New York City . NYBA continues to partner with law enforcement and is also involved in fundraising efforts on behalf of the Crimestoppers program.  

Trust and Investment – The Association’s Trust and Investment Division is active and fully engaged in the effort to make New York State ’s trust business more competitive.  In 2001, two key components of NYBA’s trust agenda were enacted.  One bill revised the Principal and Income Act to take into account new types of investment instruments and broaden the authority of trustees to allocate funds between principal and income.  Another bill responded to proposed IRS regulations that would deny the Federal generation-skipping transfer tax exemption for certain trusts.  In 2003, the State Legislature passed a NYBA-initiated measure that clarifies the tax treatment of trusts established in out-of-state affiliates of New York banks.  The legislation is important for maintaining New York as a headquarters state for the trust industry.  In 2004, NYBA collaborated on a study with the Lower Manhattan Development Corporation aimed at retaining and attracting New York trust business. That study which, among other things, advocates changes to New York ’s fiduciary income tax, was released in 2006.  

Brownfields Redevelopment – NYBA spearheaded the formation of an alliance of business groups around the State to work for brownfields redevelopment legislation that would protect both lenders and trustees from environmental liability – reversing what has long been an obstacle to economic development.  The group included the Buffalo Niagara Partnership, the Long Island Association, the Metropolitan Development Association of Syracuse and Central New York, the Partnership for New York City and the Rochester Business Alliance.  Governor Pataki signed the landmark legislation in 2003.

Interstate banking and branching – The New York Bankers Association played a key role in the passage of 1994 federal legislation that provided for full interstate banking (i.e. ownership of banks by out-of-state holding companies), preempting any state restrictions.  The Association had taken a leadership role at the state level becoming the first state to authorize reciprocal interstate branching in 1992 and adopting an early opt-in into nationwide branching in 1996. In 2008, NYBA’s Board of Directors approved an amendment to the State’s interstate branching law that would permit out-of-State banks and thrifts to branch de novo into New York if the states in which they are headquartered provide reciprocal de novo branching authority to New York banks.   

Estate and Gift Tax – In 1999, New York ’s estate tax was replaced with a “sop” tax or “pick up” of the Federal credit for state death taxes, reducing the rate from 21% to 15%.  The legislation increased the exemption level for estates to the Federal level, with a cap on the pickup of $1 million.  In addition, the unified credit for gift taxes was increased for gifts made on or after January 1, 1999.  The gift tax was repealed on January 1, 2000.  The changes were designed to enhance the competitiveness of New York ’s trust and investment industry.  

Euro – NYBA successfully argued for State legislation recognizing the euro for commercial contracts after January 1, 1999.  New York , a global financial center, was the first State to do so.  

Holocaust Assets – NYBA’s work with the Presidential Advisory Commission on Holocaust Assets in the United States produced a Suggested Best Practices Guide to be used when conducting Holocaust asset research.  At the request of the Commission, the Association and several member banks took a leadership role in the development of these important Guidelines. Our work figured prominently in the final report of the Commission, which was presented to President Clinton in 2001.  Senator Hillary Rodham Clinton publicly lauded the Association for its leadership in this important and historic undertaking.  

Insurance and Member Services – NYBA’s Insurance and Member Services Division, commonly know as “Profit Solutions,” has compiled a large portfolio of products and services to enhance our members bottomline.  Our endorsed income producing and cost saving products have netted millions of dollars in extra income for participating banks.

The Division is comprised of 6 entities: The New York Bankers Service Corporation (NYBSCO) and Circuit Agency, Inc., both wholly – owned subsidiaries of NYBA. There are three Trusts through which Members participate – The Group Creditors and Group Employee Benefits Insurance Trusts, as well as a defined benefit pension Trust, with over $160 million in assets under management.  Finally, the Creditors Trust owns a reinsurance captive, Trustees Life, through which over $20 million in dividends has been paid to participating Banks over the past 10 years.

            NYBSCO offers over 20 products and services, with a current emphasis on bank security related programs.  Two newer products generating much interest are the email encryption program and the digital video surveillance system.  In addition, the Senior Crimestoppers Program offers Banks high yielding CRA Credit, retail business development opportunities, positive PR and 57:1 leverage on CRA dollars.  

Education Programs – Over 75 professional development programs are sponsored annually, that attract close to 4,000 participants.  Through partnerships with leading national training firms, NYBA offers New York bankers top quality programming on a regional basis.  In addition, NYBA sponsors eight three to five-day banking schools that focus on fundamental concepts and career development.  Continuing education and college credit recommendations are available for many of the courses.  In addition to the traditional on-site schools and seminars, NYBA also offers an online training center, with access to over 125 banking-specific instructor-led and self-paced courses.  In addition, six to eight telephone seminars monthly provide focused updates on a wide array of timely issues. These alternative delivery methods have not only broadened the scope of NYBA programming but also provide the means to respond quickly to industry developments.  NYBA is also a reseller of ABA educational programs and products, including the nationally recognized AIB course offerings.   

PAC and Grassroots – The Association maintains a vibrant Political Action Committee and an effective grassroots banker network.  The PAC supports candidates at the State and Federal levels who share NYBA’s objective for a strong, healthy financial services industry as the foundation for economic prosperity in New York State . Association members are deeply involved in political action and utilize NYBA’s automated, e mail -based Legislative Action Center on www.nyba.com to communicate quickly and effectively with state and congressional leaders.

Communications – NYBA keeps its members updated on all of the Association’s activities and events in a number of ways. The Daily News Digest is e mail ed to bankers each morning, and includes brief summaries of all the morning’s political, economic and banking news. Friday’s News is a weekly government-relations-focused one-page newsletter. NYBanker is our bi-monthly, e-magazine highlighting meetings, schools, conferences, and products and services. Our website, www.nyba.com, is loaded with content from every operating division of the Association. In addition, NYBA responds to more than 300 press inquiries each year, generates Op/Ed pieces, and Letters to the Editor on the issues of the day, and coordinates editorial board visits across the State of New York on a regular basis.  

Local Governments Initiative – Across the country, local governments are becoming involved in efforts to regulate various aspects of financial services, such as privacy and high cost lending, through local ordinances.  Many of these measures are eventually preempted by state or federal law.  In some instances, banks have had to initiate costly litigation to preserve uniform standards and avoid conflicting patchworks of rules and regulations.  In recent years, county governments in New York State have attempted to regulate ATM fees.  Most recently, the New York City Council overrode a mayoral veto to enact a predatory lending ordinance.  This ordinance was the subject of litigation and was struck down.  NYBA launched a separate political action and public relations strategy in New York City in 2003 to help bring the voice of the banking industry to activist local governments. This initiative has, among other things,  successfully forestalled several proposed bank security ordinances.  

NYBA in Court

TRUST ISSUES  

Deductibility of Investment-Advice Fees – Knight v. Commissioner.  In 2007, NYBA joined the ABA in filing an amicus curiae brief with the United States Supreme Court in support of the trust in this case (formerly known as William L. Rudkin Testamentary Trust v. Commissioner of Internal Revenue).   The trust appealed a decision by the Second Circuit Court of Appeals which ruled that investment-advice fees that are incurred by a trust are not fully deductible in calculating adjusted gross income for purposes of the Internal Revenue Code under 26 U.S.C. Section 67(3)(1).  The Second Circuit’s decision was in conflict with a decision in the Sixth Circuit.  NYBA also filed an amicus curiae brief with the Second Circuit, in support of the William L. Rudkin Testamentary Trust.  While the Supreme Court affirmed the Second Court’s decision that subjects investment advisory fees incurred by trusts to the 2% floor otherwise applicable to individuals, it rejected that Court’s reasoning that the only fees incurred by trusts that would not be subject to the 2% floor are those that ‘could not’ be incurred by an individual. The Court’s decision accomplishes two of the goals for which NYBA, along with the American Bankers Association, filed an amicus brief.  It eliminates the competitive disadvantage under which trustees in the Second Circuit would otherwise have operated with regard to trustees in other Circuits not subject to the Second Circuit's very restrictive reading of section 67 of the Internal Revenue Code; and it provides a facts and circumstances test to determine the applicability of the floor, rather than the far more restrictive standard established by the Second Circuit.  

Diversification of Trust Assets - In the Saxton case, in which NYBA filed an amicus brief, regarding a trustee’s duty to diversify trust assets, the Appellate Division held that an amount equivalent to the capital gains that would have been due if a portfolio had been diversified, should be deducted from damages awarded for a trustee’s failure to so diversify, prior to the imposition of interest.  

Duties of Executors and Trustees - T/U/W Blanche Hunter f/b/o Pamela Creighton.  NYBA filed an amicus curiae brief in this case which challenged a Surrogate Court decision, in which the Court distinguished between the duties of executors and trustees.  The Surrogate’s decision, if upheld, would undermine the widely held belief that when fiduciaries act as both executor and trustee, all issues pertaining to acts or omissions during the estate administration are determined finally by the decree settling the estate and trust beneficiaries do not have the right to raise any of those issues in a trust accounting proceeding.  In May 2004, the Appellate Division, Second Judicial Department reversed the Surrogate’s decision.  The case was then appealed to the Court of Appeals, and NYBA once again filed an amicus curiae brief supporting the reversal of the Surrogate’s decision.  In March 2005, the Court of Appeals affirmed the Appellate Division’s decision and remanded the case back to the Westchester Surrogate consistent with its ruling.  

Reasonable Compensation for Trustees – In the Prankard decision, the Appellate Division confirmed the principle that a corporate trustee is entitled to reasonable compensation as a matter of right.  NYBA filed an amicus brief in this case, whose outcome was critical to the continued profitability of trust administration.  

Investment of Trust Assets – In 1997, Governor Pataki signed Association-initiated legislation to overturn the Onbank case.  The legislation made clear that bank trust departments are authorized to invest the assets of common trust funds in mutual funds, and to pay investment advisory and other management-type fees from the common trust fund assets.  

OTHER ISSUES  

Mutual Savings & Loan Associations -- NYBA joined the New Jersey Community and Connecticut Bankers Associations in an amicus curiae brief supporting Spencer Bank, S.L.A., a state-chartered mutual savings and loan association, in its appeal of a decision by the U.S. District Court, District of New Jersey. In the case of Spencer Bank, S.L.A, v. Lawrence B. Seidman, et al., Spencer Bank alleged that the defendants had targeted the bank for takeover using illegal tactics, in violation of the Savings and Loan Holding Company Act (SLHCA). In its decision, the District Court granted defendants’ motion to dismiss the suit, stating that the SLHCA provides neither an explicit nor implied private right of action for individual banks, and that therefore even if SLHCA violations had occurred, there was “simply an insufficient basis upon which to infer a private remedy.”  

Preemption – NYBA joined a coalition of national banking trade groups in an amicus curiae brief to the United States Supreme Court in support of Wachovia Bank, in the 2006 case of Watters v. Wachovia Bank, N.A., et al. which examined whether the principles of preemption apply equally to national banks and their operating subsidiaries of national banks.  Consistent with our position in the amicus curiae brief, the Court held that “Wachovia’s mortgage business, whether conducted by the bank itself or through the bank’s operating subsidiary, is subject to OCC’s superintendence, and not to the licensing, reporting and visitorial regimes of the several states in which the subsidiary operates.”  

Fraudulent Transfer Claims – United Community Insurance Company v. The Chase Manhattan Bank, et al.  In 2007 NYBA filed an amicus curiae brief in this case, seeking a reversal of a decision by the New York Supreme Court – County of Schenectady which denied the banks’ motion for summary judgment dismissing fraudulent transfer claims against them.  This case examines whether a fraudulent transfer claim may lie against a lender where the alleged fraud relates to conduct of the borrower and its affiliates in sourcing the funds for payment of valid antecedent debt, and the lender knows of but does not actively participate in its borrower’s conduct.  The Third Judicial Department of the Appellate Division affirmed the lower court decision, stating that there were facts in dispute, and thereby not addressing the question of law addressed in NYBA’s brief. The banks subsequently sought and were denied leave to appeal the Third Judicial Department decision.  

Credit Unions – NYBA joined the ABA and 40 other state associations in support of a credit union seeking to convert to a mutual savings bank charter in the 2005 case of Community Credit Union v. National Credit Union Administration, et al.  Texas-based Community Credit Union had requested that a U.S. District Court for the Eastern District of Texas grant its request for a preliminary injunction overturning the National Credit Union Administration’s (NCUA’s) refusal to certify Community’s member vote to convert to the mutual savings bank charter.  After the filing of the amicus curiae briefs, the NCUA dropped its objections to the conversion, and agreed to formally approve the conversions.  The credit union plaintiffs then agreed to drop the lawsuit.  

Mortgage Guarantees.- In 2005, NYBA filed an amicus curiae brief (and later presented oral arguments) in support of Union State Bank (USB) in the Dutch Hill Realty case in which the New Jersey Superior Court of New Jersey, Chancery Division, Bergen County, General Equity Part, discharged a number of USB mortgages and ordered the cancellation of same.  The court also declared void absolute unlimited and continuing guarantees, which backed those mortgages.  In the fall of 2006, the Appellate Division of the Superior Court of New Jersey overturned that part of the lower court’s decision which had ordered the discharge and cancellation of the guarantees.  On February 21, 2007 the Supreme Court of New Jersey denied a petition for leave to appeal.  If the Appellate Division had not reversed the lower court’s decision - which imperiled the enforceability of personal guarantees of payment - it could have had a significant, negative impact on the ability of consumers to obtain loans from financial institutions.   

Mortgage Escrow Accounts -  NYBA filed a successful amicus curiae brief in the Flagg case, in which the plaintiffs sought to recover interest on funds that they paid into a mortgage escrow account maintained by a federally chartered OTS-regulated thrift, which was later acquired by a New York chartered FDIC insured commercial bank.  The U.S. Court of Appeals for the Second Circuit, affirmed the lower court’s decision to dismiss the complaint, finding that New York ’s law authorizing the payment of interest on mortgage escrow accounts was preempted in this case.  The Court also found that the choice-of-law language, which was included in the pre-printed Fannie Mae-Freddie Mortgage contract did not incorporate the New York escrow statute as a contract term.  In May 2005, the Flaggs petitioned the United States Supreme Court for certiorari.  That petition was denied.  

Time Periods for Challenging Wire Transfers – The case of Regatos v. North Fork Bank involved the time period in which a bank customer must object to any electronic funds transfer and examines whether a bank and a customer may vary the one-year period set forth in Article 4A of the UCC by agreement.  The case also examined whether, in the absence of agreement, Article 4A requires actual, rather than merely constructive notice.  The federal district court of the Southern District of New York has issued an opinion that limits the freedom of contract that generally prevails under the UCC, precluding commercial banks from agreeing with their customers that the customer must provide notice of objections to an account statement within a period shorter than one year.  The lower Court decision was appealed to the United States Court of Appeals for the Second Circuit, which certified the state law question to the New York Court of Appeals.  In October 2005 the New York Court of Appeals again, unfortunately, ruled in favor of the bank customer, in accord with the Southern District’s findings.  NYBA filed an amicus curiae brief to the New York Court of Appeals in this case.   

Garnishment - NYBA filed an amicus curiae brief in the Huggins case in support of the lower court's decision dismissing plaintiff's action.  The complaint alleged that HSBC’s compliance with New York 's garnishment statute, when it knew or should have known that the plaintiff's account was exempt from garnishment, violated his due process rights under the 14th amendment of the United States Constitution and under the Social Security Act.  Given the vast number of garnishment notices which are served on banks daily, a finding in this case shifting the burden to banks to determine whether or not funds in an account are exempt from the garnishment statute, could create significant administrative and legal challenges for financial institutions. Shortly after NYBA filed its brief, the plaintiff withdrew his appeal.

Predatory Lending - In 2003, NYBA filed an amicus curiae brief, supporting the New York City Mayor's motion for a preliminary injunction in this case, which challenged the City Council's predatory lending bill both because the law would curtail various powers vested in the Mayor by the City Charter and by State law, and because the local law is preempted by State law.  In early 2004 the Supreme Court of the State of New York ruled in the Mayor’s favor, and the City Council did not challenge this decision. This case was important, in that it will, to some degree, establish parameters for those banking issues over which the City - and perhaps other localities - may claim legislative jurisdiction.  

Right to Sell Insurance – As a direct result of the court case brought by NYBA and The Canandaigua National Bank and Trust Company, in combination with a “wild card” petition filed by NYBA, all banks in New York State gained the right to sell property and casualty insurance to their customers.  

Right to Sell Annuities – The Court of Appeals unanimously affirmed state banks’ rights to sell annuities, a case initiated by NYBA.  The U.S. Supreme Court affirmed national banks’ authority, with NYBA assisting as amicus.  

Bank Tax Audit Fees – In a 1992 case, the Court of Appeals upheld NYBA’s challenge of the constitutionality of the state bank tax audit fee.  The decision saved NYBA member banks a minimum of $3 million since the legislature dropped the fee from future budget bills and refunded fees already paid as a result of NYBA’s lawsuit.