Prohibits state chartered banking institutions from investing in and providing financing for private prisons

This bill prohibits state-chartered banks from investing in or providing financing for private prisons. It directly affects state-chartered banking institutions by banning financial support for entities owning or operating private correctional facilities. The key provision (Section 12 of the banking law) explicitly forbids banks from funding or purchasing securities related to such facilities, aligning with existing state restrictions on private prisons under Correction Law §121. The law applies immediately to all new or modified financial contracts after its effective date.