§ 36. Examinations; right of inspection; penalties for refusing to\npermit examination. * 1. The superintendent shall have the power to\nexamine every banking organization, every bank holding company and any\nnon-banking subsidiary thereof (as such terms "bank holding company" and\n"non-banking subsidiary" are defined in article three-A of this chapter)\nand every licensed lender at any time prior to its dissolution whenever\nin his judgment such examination is necessary or advisable.\n * NB Effective until certain provisions are met (see Ch. 58 of 2025,\nPart Y, § 13)\n * 1. The superintendent shall have the power to examine every banking\norganization, every bank holding company and any non-banking subsidiary\nthereof (as such terms "bank holding company" and "non-banking\nsubsidiary" are defined in article three-A of this chapter) and every\nlicensed lender and licensed buy-now-pay-later lender at any time prior\nto its dissolution whenever in the superintendent's judgment such\nexamination is necessary or advisable.\n * NB Effective upon the one hundred eightieth day after the\npromulgation of rules and/or regulations by the department of financial\nservices to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §\n13)\n 2. At least once in each calendar year upon such date or dates within\neach such period as in his or her discretion he or she deems proper, the\nsuperintendent shall cause every banking organization to be examined;\nprovided, however, that:\n (a) the provisions of this subdivision shall not be applicable to an\ninvestment company unless (i) such investment company has been\nauthorized by the superintendent of financial services to receive\ndeposits, in accordance with the terms of subdivision three of section\nfive hundred eight of this chapter, (ii) a bank or trust company, or any\ntwo or more of such organizations, shall own an aggregate of twenty-five\nper centum or more of the capital stock of such investment company, or\n(iii) such investment company is a corporation which, under the terms of\nsubdivision six of this section, is deemed for the purposes of this\nsection to be a corporation affiliated with a corporate banking\norganization, and\n (b) the superintendent may extend the examination interval from at\nleast once in each calendar year to at least once in each eighteen month\nperiod if the banking organization to be examined:\n (1) has total assets of less than one billion dollars;\n (2) is well-capitalized, which for purposes of this paragraph is\ndefined as having capital which significantly exceeds the required\nminimum level for each relevant capital measure or as having such\ncapital as the superintendent shall otherwise define by regulation;\n (3) at its most recent examination, was found to be well-managed and\nits composite condition was found to be outstanding or good;\n (4) is not currently subject to a formal enforcement proceeding or\norder by the superintendent, the federal deposit insurance corporation\nor any other federal banking agency; and\n (5) has not been acquired by any person during the twelve month period\nin which an examination would be required but for this paragraph, and\n (c) the superintendent may modify the examination intervals as\nprescribed by this subdivision to the extent the superintendent deems\nappropriate, in his or her sole discretion, in order to obtain the\nefficient use of the personal and nonpersonal resources of the\ndepartment by maximizing coordination with identical or parallel\nexaminations having differing or varying intervals performed by federal\nbanking regulators, whether such examinations are performed in\nconjunction with the department or on an alternating schedule with such\nfederal banking regulators; provided, that nothing in this paragraph\nshall be deemed in any manner to lessen or modify the requirement\nimposed pursuant to section ten of this article.\n 3. On every such examination of any banking organization
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