Banking Interpretations

NYSBL 143-b

Memorandum

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April 4, 1985

To: Examiner Zanko, Domestic Commercial Banks Division

From: M. Schussler

Re: [ ] Bank/[ ] - Control Issue

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The Voting Trust Agreement dated March 1, 1985 between [ ] is not sufficient to release the former from his statutory obligation to obtain Banking Board permission pursuant to B.L. §143-b to own ten percent or more of the stock of [ ]l Bank. [ ] can revoke the trust agreement at any time (Paragraph 4), a provision which clearly demonstrates that the trust agreement is nothing more than an effort to satisfy the form, but not the substance, of the Banking Law. [ ] must either genuinely give up control of a block of stock sufficient to bring the percentage of shares he controls under ten or submit an application under B.L. §143-b.