New York Laws
Article 3 - Banks and Trust Companies
131 - Prohibitions Against Encroachments Upon Certain Powers of Banks and Trust Companies.

(b) Notwithstanding any other provisions of this chapter, a bank or
trust company incorporated under the laws of another state, which is
authorized by its charter and by the laws of the state of its
incorporation to exercise in such state any or all of the fiduciary
powers that trust companies are authorized to exercise in this state
pursuant to sections one hundred, one hundred-a, one hundred-b, one
hundred-c and one hundred-d of this article, may establish and maintain
a trust office in this state for purposes of exercising any or all of
the fiduciary powers authorized by the laws of the state of its
incorporation; provided, however, that (i) such trust office is not its
principal office; (ii) such exercise does not exceed the powers
authorized under sections one hundred, one hundred-a, one hundred-b, one
hundred-c and one hundred-d of this article; and (iii) a bank or trust
company organized under the laws of this state and authorized to
exercise any or all fiduciary powers under sections one hundred, one
hundred-a, one hundred-b, one hundred-c and one hundred-d of this
article is permitted to establish a trust office and exercise
substantially similar fiduciary powers on substantially the same basis
as permitted an out-of-state state bank or trust company pursuant to
this subdivision, in the state where such out-of-state state bank or
trust company is so incorporated. A trust office established or
maintained by such an out-of-state state bank or trust company pursuant
to this subdivision shall not be considered to be a branch office
pursuant to any other provisions of this chapter.
(c) An out-of-state state bank or trust company seeking to establish
and maintain a trust office or open any additional trust offices in this
state shall file a notice with the superintendent in the form prescribed
by the superintendent describing the proposed activities of the office
and such other information as the superintendent shall request. The
trust office may commence operation thirty days after the superintendent
receives such notice, unless the superintendent notifies the
out-of-state state bank or trust company in writing within such time
period that such office may not commence operation or that additional
information or time is required for the superintendent to consider such
notice.
(d) Such out-of-state state bank or trust company may establish and
maintain additional trust offices in this state pursuant to and
consistent with the provisions of this subdivision, provided that the
superintendent finds that the establishment and maintenance of any and
all trust offices by such out-of-state state bank or trust company is
and continues to be consistent with the goals set forth in the
declaration of policy contained in section ten of this chapter. The
superintendent shall have the power at any time in his or her discretion
to examine any trust office established pursuant to this section to the
same extent as is provided for in the case of banking organizations
pursuant to the provisions of this chapter. If any such foreign
corporation or out-of-state state bank or trust company violates this
provision, such foreign corporation or out-of-state state bank or trust
company shall not thereafter be appointed or act in any such fiduciary
capacity in this state. The validity of any mortgage heretofore given by

a foreign corporation to a trust company doing business within a foreign
domicile of such mortgagor to secure the payment of an issue of bonds
shall not be affected by any of the provisions of this section and such
mortgage shall be enforceable in accordance with the laws of this state
against property covered thereby within the state of New York.
5. Any out-of-state state bank or trust company subject to the
provision of subdivision three or four of this section may be either in
corporate form or organized as a limited liability company.
6. Every person, and every corporation, director, agent, officer or
member thereof, who shall violate any provision of this section,
directly or indirectly or assent to such violation, shall forfeit an
amount as determined pursuant to section forty-four of this chapter to
the people of the state.

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