![]() The Community and Regional Banks Division is responsible for the examination and supervision of these foundations. These charitable foundations are subject to examination by the DFS. Contributions by the corporation to the charitable foundation are tax deductible for federal tax purposes over a certain period with deductions generally limited to a certain percent of taxable income in any one year. ![]() Such foundations must apply for tax-exempt status at both the state and federal levels. The foundation may be funded by the sponsoring institution with cash, common stock or other property and is established as a separate legal entity, though it may be closely tied to the sponsoring corporation through an interlocking board of directors and staff. When a mutual company converts to a stock form of ownership, it may establish a private charitable foundation expected to provide funds to support charitable causes and community development activities. In the case of a mutual savings bank or a mutual savings association, the members are the financial institution’s depositors. A mutual company is one that is owned, and sometimes governed, by its members instead of being owned by public or private shareholders. Budget planners are licensed by and have their fees approved by the DFS under Article XII-C of the Banking Law. Section 456 of the General Business Law prohibits budget planning by anyone other than a non-profit corporation. A budget planner also provides credit counseling and financial education. Budget PlannersĪ budget planner is a non-profit corporation that enters into a contract with a debtor under which the debtor agrees to pay a sum of money periodically to the budget planner, which the budget planner distributes among the debtor’s creditors. DFS charters and regulates banks and trust companies under Article III of the Banking Law. The basic restriction on limited purpose trusts is the prohibition on receiving deposits and making loans except as incidental to the exercise of fiduciary powers. In the case of a Limited Purpose Trust Company, the application process generally receives the same level of scrutiny as other bank and trust companies with two exceptions: the minimum level of capitalization and the requirement for Federal Deposit Insurance Corporation (FDIC) insurance. The "trust" name refers to the ability of the institution to act as a trustee – someone who administers financial assets on behalf of another. ![]() These companies provide a number of fiduciary responsibilities. ![]() A trust may be a stand-alone entity or be part of a bank. credit cards or inventory loans).Ī Trust Company is an entity that is authorized by the Superintendent to exercise fiduciary (trust) powers. Banks are generally institutions focused on commercial lending to help finance business and other ventures but are also involved in unsecured lending or lending secured by items other than real estate (i.e. Banks and Trust Companiesīanks, also known as commercial banks, are community, regional or national for-profit business corporations owned by private investors and governed by a board of directors chosen by stockholders. Below you will find a brief definition of each of the main types of institutions/individuals that we supervise and a brief description of the laws under which we regulate them. ![]()
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