New York Banking Law

Article 10, Savings and Loan Associations

Section 375.   Incorporation; organization certificate.
        376.   Proposed by-laws.
        377.   When corporate existence begins.
        378.   Power to issue shares; dues thereon.
        378-a. Time deposits.
        378-b. Club accounts.
        378-c. Excelsior linked deposit program.
        378-d. Preservation of books and records.
        379.   Power to invest in securities.
        379-a. Corporation owned by associations; investment therein and
                 in certain mortgage certificates and notes.
        379-b. Service corporation owned by associations; authorized
                 activities of such corporation; investment therein.
        380.   Power to make loans.
        380-a. Power to purchase mortgage, loan or investment.
        380-b. Power to purchase mortgages from mortgage holders.
        380-c. Power to participate in certain loans and mortgage
                 investments.
        380-e. Effect of usury.
        380-f. Power to make advances of federal funds.
        380-g. Power to engage in line of credit financing of
                 residential real estate.
        380-h. Trust powers.
        380-i. Personal loan departments.
        380-j. Authorization to acquire and lease personal property.
        380-k. Investment in promissory notes.
        380-l. Excelsior linked deposit program.
        381.   Power to take and hold real estate; restrictions.
        382.   Power to borrow.
        382-a. Power to act as trustee under self-employed retirement
                 trust and of individual retirement account; investment
                 in savings account.
        382-b. Power to issue certain obligations.
        383.   Other powers.
        383-a. Rental of safe deposit boxes.
        384.   Entries in books; restrictions; amortization of
                 securities.
        385.   Surplus account.
        386.   Profits; how and when to be computed.
        387.   Credits to surplus account and undivided profits;
                 dividends to shareholders.
        388.   Fines and penalties for failure to make payments on
                 instalment shares.
        389.   Matured shares; conversion into shares of another class
                 upon notice.
        390.   Withdrawal of unpledged shares; provisions for dividends.
        392.   Retirement of shares; suspension; transfer.
        393.   Repayment of mortgage loans; application of pledged
                 shares.
        394.   Joint shares; shares of minors; shares in trust.
        395.   Alternative provisions relative to payment of interest to
                 shareholders.
        396.   Change of location; change of designation of principal
                 office; maintenance of branch office.
        396-a. Electronic facilities.
        396-b. Acceptance of United States currency.
        397.   Number, qualifications and disqualifications of
                 directors; oath; quorum; meeting of directors.
        397-a. Report to directors.
        398.   Filling of vacancies in board of directors; change in
                 number of directors.
        398-a. Forfeiture of office of director.
        398-b. Duties of directors and officers.
        398-c. Executive committee and other committees.
        399.   Restrictions on directors and officers.
        399-a. Restrictions on holding of certain offices by executive
                 officers of federal savings and loan associations.
        400.   Pensions; insurance.
        401.   Official communications to be submitted to directors and
                 noted in minutes.
        402.   Amendment of articles of association and by-laws;
                 application to supreme court.
        403.   Examination by directors.
        404.   Reports to the superintendent; penalty for failure to
                 make.
        404-a. Photographic reproduction of records.
        405.   Annual report to shareholders; delivery and publication.
        406.   Charters conformed to this article; obligations and
                 rights unimpaired; saving clause; applicability to
                 stock-form savings and loan associations.
        407.   Exemptions.
        409.   Conversion of a state savings and loan association into a
                 federal savings and loan association.
        410.   Conversion of a federal savings and loan association into
                 a state savings and loan association.
        411.   Conversion of a savings and loan association or federal
                 savings and loan association into a savings bank.
        412.   Conversion of federal savings institutions to state
                 charter.
        413.   Reciprocal interstate acquisitions.

  S 375. Incorporation; organization certificate. When authorized by the
superintendent as provided in article two of this chapter, fifteen or
more persons, residents of the state of New York, may form a corporation
to be known as a savings and loan association. Such persons shall
subscribe and acknowledge and submit to the superintendent an
organization certificate in duplicate, which shall specifically state:
  1. The name by which the association is to be known, which shall
contain as a part thereof the words "savings and loan association."
  2. The place where its principal office is to be located.
  3. The name, occupation and place of residence of each incorporator
and the number of shares for which he has subscribed.
  4. The total matured value of the shares for which the incorporators
have subscribed, which shall be at least: (a) Twenty-five thousand
dollars if the place where the principal office is to be located has a
population of ten thousand or more; or
  (b) Ten thousand dollars if the principal office is to be located
elsewhere.
  5. The number of directors of the association, or that the number of
directors shall not be less than a stated minimum nor more than a stated
maximum. Such number, or the minimum and the maximum stated, shall be
within the limitations prescribed by section three hundred ninety-seven
of this article.
  6. The names of the incorporators who shall be its directors until the
first annual meeting. The incorporators named as directors must possess
the qualifications of directors as to citizenship and residence
specified in section three hundred ninety-seven of this article.

  S 376. Proposed by-laws. 1. The incorporators shall subscribe and
acknowledge and submit to the superintendent proposed by-laws in
duplicate, which shall make provision for the following: (a) The dates
of regular meetings of shareholders; the notice, if any, to be given;
the qualifications of voters and the manner of voting; the manner of
calling special meetings; and the number of members which shall
constitute a quorum.
  (b) The number of directors, and their qualifications, other than
those specified in this article; their terms of office, which shall not
be less than one year nor more than three years, and if the terms of
office be more than one year, the method of division into classes for
the purpose of electing, as nearly as may be, an equal number of
directors each year; and the removal or suspension of directors.  The
by-laws may provide that the number of directors shall be not less than
seven nor more than fifteen, in which event the by-laws shall also
provide the manner in which the number of directors shall be fixed
within the minimum and maximum limits.
  (c) The meetings of the board of directors, of which there shall be no
less than ten regular monthly meetings per year, provided, however, that
during any three consecutive calendar months the board of directors
shall meet at least twice; its powers and duties; the appointment or
election of auditors and their compensation; the establishment of
policies governing the appointment of appraisers and their compensation.
  (d) The officers; the manner of their election; their terms of office,
duties and compensation; and the bonds which shall be required of
officers.
  (e) The classes of shares which may be issued; whether they shall be
issued in series or otherwise; the times when they may be issued; and
their matured value.
  (f) The manner in which evidence of share ownership shall be issued to
members.
  (g) The dues that shall be paid upon shares and the time of their
payment; the time and manner of apportioning, crediting and paying
dividends.
  (h) The conditions upon which shares may be transferred, matured,
withdrawn, retired or suspended and forfeited.
  (i) If a member thereof, the voting of shares in the Savings and Loan
Bank of the State of New York and the nomination of a director of such
bank.
  (j) The manner and conditions under which the by-laws may be altered
or amended.
  2. Such by-laws may make provision for the following:
  (a) The fees that may be charged, which shall be only an entrance fee
at a rate not exceeding twenty-five cents a share with a maximum amount
of five dollars, or in lieu thereof a membership fee not exceeding one
dollar; a transfer fee not exceeding twenty-five cents a share, or in
lieu thereof a total fee not exceeding one dollar on each transfer.
  (b) Loans and investments; the security to be taken for loans, and the
conditions under which loans may be repaid.
  (c) The fines and penalties which may be imposed for failure promptly
to make payments when due.
  (d) Prohibiting or further limiting proxies for members, and their
duration, pursuant to subdivision two of section three hundred
seventy-eight.
  (e) The receipt of time and demand deposits.

  S 377. When corporate existence begins. When the superintendent shall
have approved the organization certificate and the proposed by-laws, and
shall have issued his authorization certificate as provided in article
two of this chapter, the corporate existence of the association shall
begin.

  S 378. Power to issue shares; dues thereon. 1. Every savings and loan
association shall be either permanent or serial in character. A
permanent association shall be one which issues instalment shares, not
in series, and credits dividends thereon to the holders of such shares
individually. A serial association shall be one which issues instalment
shares in series and credits the dividends apportioned to such shares by
series. No additional shares shall be issued in any series after a
dividend has been credited thereto unless the person to whom such shares
shall be issued shall pay therefor the book value of such shares
including the estimated accrued dividend thereon since the close of the
preceding dividend period. Dividends credited by a serial association
upon shares issued by it other than instalment shares may be credited to
the holders of such shares individually.
  2. The members of a savings and loan association shall be: (1) those
persons who are the holders of record of shares whose membership shall
continue until such shares have matured and been paid, or have been
withdrawn, retired, suspended, forfeited, or transferred; and (2) all
borrowers from the association and all persons obligated to the
association on loans whose membership shall continue until such loans or
obligations have been paid. Each member shall be entitled to at least
one vote upon all question at any meeting of such members of the
association, except when by statute the vote is required to be based
upon the capital of the association. Every member entitled to vote at a
meeting of members of the association may authorize another person or
persons to act for him by proxy, but no director, officer, clerk, teller
or bookkeeper of the savings and loan association shall act as proxy at
any meeting of such association. Every proxy must be signed by the
member or his attorney-in-fact. No proxy shall be valid after the
expiration of eleven months from the date thereof unless otherwise
provided in the proxy. Every proxy shall be revocable at the pleasure of
the member executing it. The authority of the holder of a proxy to act
shall not be revoked by the incompetence or death of the member who
executed the proxy unless, before the authority is exercised, written
notice of an adjudication of such incompetence or of such death is
received by the officer of the association responsible for maintaining
the list of members. The by-laws may prohibit or further limit proxies
for members and their duration. No director or officer of a savings and
loan association shall be eligible to act as an inspector of an election
of directors at any meeting of members of the association.
  3. The capital of every such association shall consist of the dues and
dividends credited to its members upon their shares either individually
or by series, time deposits held by such association pursuant to section
three hundred seventy-eight-a of this chapter together with interest
accrued on such deposits, and demand deposits held by such association
pursuant to subdivision thirteen of section three hundred eighty-three
of this chapter.
  4. Any savings and loan association may issue shares of the following
classes: (a) Instalment shares, class one, upon which regular payments
of dues shall be made as provided in the by-laws of the association,
until such shares reach their matured value or are withdrawn, retired or
forfeited; and instalment shares, class two, which shall have no
participation in dividends and upon which the dues payable in regularly
increasing amounts are applied in reduction of a debt due to the
association from the holder of such shares in accordance with a
direction given by him.
  (b) Savings shares, upon which dues shall be paid in such sums, at
such times and for such purposes as the holder thereof may elect, until
the shares are withdrawn or retired. Upon the request of the holder
thereof, such savings shares may be converted by the issuing association
into special savings shares authorized for issuance by paragraph (bb) of
this subdivision. The association may enter such conversion in its
records and on the evidence of ownership of the savings shares as an
alternative to withdrawal or retirement of the savings shares and
issuance of special savings shares.
  (bb) Subject to such limitations and restrictions as may be prescribed
by regulation of the banking board, special savings shares, upon which
dues shall be paid in such sums, at such times and for such purposes as
the holder thereof may elect, and which shall provide that dividends
shall be credited from the date of actual receipt of such dues to the
date they are withdrawn or retired.  Dividends on special savings shares
shall be credited and shall be made available no later than the end of a
regular dividend period, or at the time such special savings shares are
withdrawn or retired if in the opinion of a majority of the board of
directors it appears the savings and loan association will have
sufficient profit available at the end of such regular dividend period
to pay dividends and if the board of directors chooses payment of
dividends at withdrawal as an option to periodic payment of dividends.
Any savings and loan association which does not make dividends available
pursuant to the provisions of this paragraph shall promptly notify the
superintendent of banks of such decision. Withdrawals or retirements of
special savings shares during the last three business days of any
regular dividend period or, in the event that any one of such last three
business days is a Saturday, withdrawals of such shares upon one of the
last four business days of any such period may receive dividends
apportioned for the full period.
  (c) Accumulative prepaid shares upon which a single payment of dues to
the amount of fifty per centum or more of the matured value thereof
shall be paid at the time when such shares are issued. The whole or a
part of the dividends apportioned to such shares shall be credited
thereto until such shares are matured, withdrawn or retired. Any balance
of such dividends not so credited shall be paid in cash.
  (d) Income shares, upon which a single payment of dues amounting to
one hundred dollars per share shall be paid at the time when such shares
are issued. The dividends on such shares shall be paid in cash or, in
accordance with the written order of the holder, applied to the purchase
of other shares in the association. Income shares may be issued which
shall not be withdrawable without the consent of the board of directors,
until the expiration of a fixed period, which shall be not more than ten
years. Whenever income shares are issued which are not withdrawable
until the expiration of a fixed period, a statement that they are not
withdrawable until the expiration of such fixed period shall be printed
upon the face of the certificate of shares or other evidence of
ownership in such manner as to be clearly legible. Whenever any
association is unable to locate the holder of income shares and
dividends shall have been apportioned which cannot be paid to the holder
thereof by reason of the inability of such association to locate such
holder, such association may credit such dividends as dues upon another
class of shares in the name of holder of such income shares and shall
carry such other shares and any accumulations thereon for the benefit of
such shareholder. Income shares which are not withdrawable until the
expiration of a fixed period shall be termed "income shares, class two."
Other income shares shall be termed "income shares, class one."
  (e) Cumulative income shares upon which a single payment of dues of
not less than one hundred dollars shall be paid at the time such shares
are issued. The dividends on such shares may be credited thereto until
such shares are matured, withdrawn or retired.  Cumulative income shares
may be issued which shall not be withdrawable without the consent of the
board of directors, until the expiration of a fixed period, which shall
be not more than ten years nor less than ninety days. Whenever
cumulative income shares are issued which are not withdrawable until the
expiration of a fixed period, a statement that they are not withdrawable
until the expiration of such fixed period shall be printed upon the face
of the certificate of shares or other evidence of ownership in such
manner as to be clearly legible. Cumulative income shares which are not
withdrawable until the expiration of a fixed period shall be termed
"cumulative income shares, class two." Other cumulative income shares
shall be termed "cumulative income shares, class one."
  5. All shares hereafter issued by any savings and loan association
shall have a matured value of one hundred dollars, except that
instalment shares may be issued having a matured value of not less than
one hundred nor more than two hundred fifty dollars.
  6. Shares issued in the name of more than one person shall confer no
greater voting rights than if issued in the name of one person.
  7. Persons who hold shares in a fiduciary capacity shall have all the
rights and privileges of membership, except to hold office.
  8. A savings and loan association shall have a lien upon the shares of
its members to the extent of any lawful fines or other obligations due
to it, whether or not such shares are specifically transferred or
pledged to it, and may, at its option, after five days` notice to the
member, apply such shares toward the payment of any matured obligations
due it.
  9. A savings and loan association may in its discretion accept or
refuse advance payments of dues.
  10. Notwithstanding any provision of this chapter, a savings and loan
association, in its organization certificate, by-laws, advertising
matter or any other instrument, document or other writing used in or in
connection with its business, may designate its shares as "deposit
accounts" or "savings accounts" its members as "depositors", its dues or
share payments as "deposits", and its capital as "deposit liability".
The use of any term permitted by this subdivision shall not affect any
right, duty, privilege or liability which the savings and loan
association, any member or any depositor would otherwise have.

  S 378-a. Time deposits. 1. Subject to such regulations and
restrictions as the banking board finds to be necessary and proper, a
savings and loan association may contract to receive time deposits
including deposits upon which the savings and loan association contracts
to pay interest at a fixed rate.
  2. Any time deposit made by or in the name of any minor shall be held
for the exclusive right and benefit of such minor, and free from the
control or lien of all other persons, except creditors, and shall be
paid together with interest credited thereon, to the person in whose
name the deposit shall have been made. The receipt or acquittance of
such minor shall be a valid and sufficient release and discharge to the
association for any payment so made. When any time deposit shall be made
by any person in trust for another, including a minor, and no other or
further notice of the existence and terms of a legal and valid trust
shall have been given in writing to the association, in the event of the
death of the trustee, the deposit, together with the interest credited
thereon, may be paid to the person for whom the deposit was made. The
receipt of acquittance of such person shall be a valid and sufficient
release and discharge to the association for any payment so made.
  3. The repayment of time deposits made with any association and any
interest credited thereto, shall be subject to the provisions of this
chapter and to rules and regulations made in accordance therewith. Any
such regulations adopted by the board of directors shall be posted in a
conspicuous place in the office or offices of such association, and
shall be available to depositors upon request. All such rules and
regulations, from time to time in effect, and all amendments thereto,
from time to time in effect, shall be binding upon all depositors.
  4. Notice to any association of an adverse claim to a time deposit
standing on its books to the credit of any person shall not be effectual
to cause such association to recognize such adverse claimant unless he
shall also either procure a restraining order, injunction or other
appropriate process against such association from a court of competent
jurisdiction in a cause therein instituted by him wherein the person to
whose credit the deposit stands or his executor or administrator is made
a party and served with summons, or shall execute to such association,
in form and with sureties acceptable to it a bond, indemnifying such
association from any and all liability, loss, damage, costs and
expenses, for and on account of the payment of such adverse claim or the
dishonor of the order of the person to whose credit the deposit stands
on the books of such association; provided, that this section shall not
apply in any instance where the person to whose credit the deposit
stands is a fiduciary for such adverse claimant, and the facts
constituting such relationship, and the facts showing reasonable cause
for belief on the part of such claimant that such fiduciary is about to
misappropriate such deposit, are made to appear by the affidavit of such
claimant.
  5. (a) In all actions against any association to recover a time
deposit, if there be any person or persons, not parties to the action,
who claim the same fund, the court in which the action is pending may,
on the petition of such association, and upon eight days` notice to the
plaintiff and such claimants, and without proof as to the merits of the
claim, make an order amending the proceedings in the action by making
such claimants parties defendants thereto; and the court shall thereupon
proceed to determine the rights and interests of the several parties to
the action in and to such funds. The remedy provided in this section
shall be in addition to and not exclusive of that provided in any other
interpleader provision.
  (b) The time deposit which is the subject of such an action may remain
with such association to the credit of the action until final judgment
therein, and be entitled to the same interest as other deposits of the
same class, and shall be paid by such association in accordance with the
final judgment of the court; or the deposit in controversy may be paid
into court to await the final determination of the action, and when the
deposit is so paid into court such association shall be struck out as a
party to the action, and its liability for such deposit shall cease.
  (c) The costs in all actions against an association to recover
deposits shall be in the discretion of the court, and may be charged
upon the fund affected by the action.
  7. Subject to any regulations and restrictions prescribed by the
superintendent of banks, a savings and loan association may accept time
deposit without the issuance of a passbook in connection therewith, and
may issue such other evidences of its obligation to repay such time
deposits as may be appropriate to safeguard the interests of the
depositors and of the savings and loan association.

  S 378-b. Club accounts. 1. No contract under which a savings and loan
association agrees to repay shares of fixed sums made at regular
intervals at a given time with all interest or dividends credited
thereon, or to repay said shares when, together with interest or
dividends credited thereon, they shall equal a specified sum, may
provide for any forfeiture of the sums deposited in the event of the
discontinuance of the regular payments. Interest or dividends on club
accounts, if offered, must be credited at least quarterly and may not be
forfeited once credited, in the event of the discontinuance of regular
payments.
  2. Any savings and loan association which provides for deposits in
club accounts shall, in all advertising announcements or brochures
pertaining to such accounts, state whether or not interest or dividends
are paid thereon and, if interest or dividends are paid, shall state the
rate or form of interest or dividends so paid in accordance with any
rules and regulations that may be prescribed by the superintendent.

  S 378-c. Excelsior linked deposit program. A savings and loan
association may accept moneys deposited by the comptroller or the
commissioner of taxation and finance as linked deposits pursuant to
article fifteen of the state finance law and enter into agreements,
pledge assets or furnish other security, satisfactory in form and amount
to such authorized depositor, for the repayment of such moneys.

  S 378-d. Preservation of books and records. Every savings and loan
association shall preserve all its records of final entry, including
cards used under the card system and deposit tickets, for a period of at
least six years from the date of making the same or from the date of the
last entry thereon; provided, however, that preservation of photographic
reproductions thereof or records in photographic form shall constitute
compliance with the requirements of this section. Notwithstanding the
foregoing, the banking board may prescribe by regulation such period of
time longer or shorter than six years during which all records kept by
savings and loan associations as fiduciary shall be preserved in
original form.

  S 379. Power to invest in securities. A savings and loan association
may invest its funds in the following securities: (1) Shares of the
Savings and Loan Bank of the State of New York, in an amount not
exceeding five per centum of the assets of such association at the time
of such investment, except that such amount may exceed five per centum
with the written approval of the superintendent.
  (2) Capital stock of a federal home loan bank, in an amount not
exceeding five per centum of the assets of such association at the time
of such investment, except that such amount may exceed five per centum
with the written approval of the superintendent.
  (3) Obligations of the Savings and Loan Bank of the State of New York.
  (4) Bonds, debentures, consolidated debentures, or other obligations
of a federal home loan bank or banks.
  (5) Securities, certificates of deposit and other accounts and
corporate obligations in which investments are authorized to be made by
savings banks subject to those limitations applicable to such
investments in the case of savings banks, including, without limiting
the foregoing, investments made under the provisions of subdivision
thirty of section two hundred thirty-five of this chapter.
  (6) Such additional investments as are authorized to be made by
savings banks by subdivision thirty-one of section two hundred
thirty-five of this chapter, subject to those limitations applicable to
such investments in the case of savings banks.
  (7) Such bonds or other evidences of indebtedness issued or guaranteed
by the State of Israel as are approved by the comptroller of the
currency for investment by national banks; provided, however, that the
principal and interest payable thereon shall be payable in United States
dollars; and provided that such investments may not exceed in the
aggregate five percent of the association`s capital deposits, undivided
profits, surplus and reserves.

  S 379-a. Corporation owned by associations; investment therein and in
certain mortgage certificates and notes. 1. A savings and loan
association may invest in the stock, capital notes and debentures of any
trust company and of any other corporation organized under the laws of
this state, to the extent and upon such conditions as are or have been
authorized by the banking board, provided all of the stock of such trust
company or corporation is, or is to be, owned by not less than twenty
savings and loan associations or federal savings and loan associations
located in New York State; and in any participation certificates or any
other form of participation, though junior in interest, issued by any
such trust company in its individual capacity or as trustee or by any
such corporation, and representing participation in first mortgages
assigned by savings and loan associations or federal savings and loan
associations located in New York State in payment of stock, capital
notes or debentures of any such trust company or any such corporation,
or assigned in connection with the sale of mortgages by such savings and
loan association to such trust company or such corporation.
  2. A savings and loan association, subject to such limitations and
conditions as the banking board may prescribe by general regulation, may
invest in
  (a) Any certificate issued by a trust company or other corporation,
organized under the laws of this state, all of the capital stock of
which is owned by at least twenty savings and loan associations or
federal savings and loan associations located in New York State or
issued by a subsidiary corporation all of the capital stock of which is
owned by such trust company or other corporation, which certificate
evidences a beneficial interest in a bond and mortgage or note and
mortgage, upon real property, in which a savings and loan association
would be authorized to invest directly or evidences a beneficial
interest in a participation in a bond and mortgage or note and mortgage
in which a savings and loan association would be authorized to have a
participation directly, or
  (b) Any note issued by such trust company or such other corporation or
issued by such subsidiary corporation, which note is secured by a bond
and mortgage or note and mortgage, upon real property, in which a
savings and loan association would be authorized to invest directly or
is secured by a participation in a bond and mortgage or note and
mortgage in which a savings and loan association would be authorized to
have a participation directly.

  S 379-b. Service corporation owned by associations; authorized
activities of such corporation; investment therein. 1. A savings and
loan association may invest in the stock, capital notes and debentures
of a service corporation organized under the laws of this state for the
sole activities set forth in subdivision two of this section, to the
extent and upon such conditions as are or have been authorized by the
banking board, provided that all of the stock of such service
corporation is, or is to be, owned by one or more savings and loan
associations; and provided further, that no savings and loan association
may make any investment under this section if its aggregate outstanding
investment thereby, determined as prescribed by the banking board, would
thereupon exceed three per centum of its assets.
  2. The activities of such service corporation, performed directly or
through one or more wholly owned subsidiaries, shall consist of
rendering such services to savings and loan associations and making such
investments for itself and for savings and loan associations as are
authorized services and investments for such associations under the
provisions of this chapter as well as such activities as may be
prescribed by general regulation of the banking board.

  S 380. Power to make loans.  1. A savings and loan association may
make a loan upon the security of a mortgage of the type authorized to be
made by a savings bank by subdivisions five-a and six of section two
hundred thirty-five of this chapter, subject to such regulations as the
banking board may prescribe.
  1-b. A savings and loan association may also lend its funds to
borrowers therefrom upon their promissory notes payable to the
association which are:
  (a) secured by one or more mortgages in which a savings and loan
association may invest; provided however, that the amount loaned is not
in excess of ninety per centum of the principal sum secured by such
mortgage or mortgages. The assignment of every mortgage taken as
security for any such note shall be recorded or registered in the office
of the proper recording officer of the county in which the real property
described in such mortgage is located, unless such mortgage or mortgages
have been so assigned by a savings and loan association;
  (b) secured by any of the stocks and bonds in which a savings and loan
association may invest, except stocks eligible for investment pursuant
to the provisions of subdivision twenty-six of section two hundred
thirty-five of this chapter; provided however, that the amount of the
loan is not in excess of ninety per centum of the market value of such
stocks and bonds;
  (c) made by a savings bank which has been incorporated three years or
more.
  (d) secured by any of the stocks eligible for investment by a savings
and loan association pursuant to the provisions of subdivision
twenty-six of section two hundred thirty-five of this chapter; provided
however, that (1) the amount of the loan is not in excess of the lesser
of (i) eighty-five per centum of the market value of such stocks, or
(ii) the maximum loan value of such stocks determined in accordance with
Federal Reserve Regulation U and the supplement thereto of the board of
governors of the federal reserve system and as if the savings and loan
association were a member bank of such system extending credit secured
by such stocks for their purchase as margin stock, and (2) the amount of
such loan, together with the aggregate amount outstanding of all loans
made pursuant to this paragraph and the aggregate amount of investments
in stock eligible for investment by a savings and loan association
pursuant to the provisions of subdivision twenty-six of section two
hundred thirty-five of this chapter, shall not exceed the aggregate
limitations set forth in subdivision twenty-six of section two hundred
thirty-five of this chapter;
  2. A savings and loan association may lend its funds to its members
upon their notes as follows: (a) secured by the transfer and pledge to
the association of shares of any savings and loan association or by the
assignment to the association of a time deposit in any savings and loan
association, the withdrawal value of which, in either case, shall not be
less than the amount of any such loan.
  (b) Representing loans and advances of credit for the purpose of
financing alterations, repairs and improvements upon or in connection
with, or as the superintendent may authorize the equipping of existing
structures, and the building of new structures, upon urban, suburban, or
rural real property (including the restoration, rehabilitation,
rebuilding, and replacement of such improvements which have been damaged
or destroyed by earthquake, conflagration, tornado, hurricane, cyclone,
flood, or other catastrophe), by the owners thereof or by lessees of
such real property under a lease expiring not less than six months after
the maturity of the loan or advance of credit or by lessees under
proprietary leases from a corporation or partnership formed for the
purpose of the cooperative ownership of real estate, provided:  (1) the
amount of such loan, advance of credit, or purchase made for the purpose
of financing the alteration, repair, equipping or improvement of
existing structure or the building of new structure does not exceed
twenty thousand dollars; (2) the maturity thereof does not exceed one
hundred twenty-one months; (3) the rate which may be paid by the
borrower for interest, discount, and fees of all kinds in connection
with the transaction shall be the rate or rates agreed to by the savings
and loan association and the borrower; and (4) the loan shall be paid in
equal or substantially equal monthly installments calculated from the
date of the note; provided, however, that in addition thereto, the
savings and loan association may contract to charge the borrower:  (i)
the fees payable to the appropriate public officer to perfect any lien
or other security interest taken to secure the loan or the premium, not
in excess of such filing fee, payable for any insurance in lieu of such
filing; (ii) in case of default, and in accordance with the provisions
of the instrument evidencing the obligation, either a fine in an amount
not to exceed five cents per dollar on any installment which has become
due and remained unpaid for a period in excess of ten days, but no such
fine shall exceed five dollars and only one fine shall be collected on
any such installment regardless of the period during which it remains in
default, and provided further that should the aggregate of such fines
collected in connection with any loan exceed two per centum of such
loan, or in any event twenty-five dollars, the savings and loan
association shall refund such excess to the borrower within sixty days
after the loan is paid in full, or, subject to an allowance of unearned
interest attributable to the amount in default, interest on each amount
past due at a rate not in excess of the rate provided for in the
instrument evidencing the obligation; (iii) the actual expenditures,
including reasonable attorney`s fees, for necessary court process; and
(iv) in case the savings and loan association insures a borrower under a
credit unemployment insurance policy, group life insurance policy, group
health insurance policy, group accident insurance policy, or group
health and accident insurance policy, or requires insurance on personal
property securing any such loan, an amount not in excess of the premiums
chargeable in accordance with rate schedules then in effect and on file
with the superintendent of insurance for such insurance by the insurer.
No savings and loan association shall require a borrower to purchase
shares in the association, or to purchase shares in lieu of regular
periodic installment payments, or to do or refrain from any other act
which would entail additional expense or sacrifice, as a condition
precedent to granting a loan or advance of credit under the authority of
this paragraph. Notwithstanding the provisions of this paragraph no
refund of excess fines shall be required if it amounts to less than one
dollar.
  (c) Representing loans and advances of credit for the purpose of
defraying the cost of attendance of one or more students the income of
whose family is fifteen thousand dollars or more per year at the time
the loan or loan commitment is made at a university or college or for
the purpose of defraying the cost of attendance of one or more students
at an elementary or secondary school providing education required for
minors; provided, however, that no such loan shall bring the total
unpaid principal balances of any one or more loans made by such savings
and loan association to the borrower pursuant to this paragraph to an
amount in excess of thirty thousand dollars; and further provided that
the maturity of any such loan does not exceed eighty-five months; and
further provided that the rate which may be paid by the borrower for
interest, discount, and fees of all kinds in connection with the
transaction shall be the rate or rates agreed to by the savings and loan
association and the borrower, reckoned on each loan or advance from the
date thereof, calculated on any of the following bases: (i) on the
unpaid principal amount of such loans and advances from time to time
outstanding, or (ii) for each month on an average balance outstanding
determined by dividing by two the sum of the balances of unpaid
principal of such loans and advances outstanding on two dates during
such month, as specified in such agreement; the first of which dates
being not later than the fifteenth day of such month and the second
being not earlier than the sixteenth day of such month and not less than
ten nor more than twenty days after the first day, or (iii) for each
month on a fixed amount selected from a schedule, which fixed amount may
exceed the average daily balance under (i) above, or the average balance
if determined under (ii) above, by a differential of not more than five
dollars, provided the same fixed amount is also used for computing
interest for any month for which such balance exceeds said fixed amount
by any amount up to at least the same differential; and further provided
that the loan shall be paid in equal or substantially equal monthly
installments calculated from the date of the note.  No fee, commission,
expense, or other charge whatsoever shall be taken, received, reserved
or contracted for in addition to the rate of interest authorized by this
paragraph except (i) the fees payable to the appropriate public officer
to perfect any lien or other security interest taken to secure the loan
or the premium, not in excess of such filing fee, payable for any
insurance in lieu of such filing; (ii) in case of default, and in
accordance with the provisions of the instrument evidencing the
obligation, either a fine in an amount not to exceed five cents per
dollar on any installment which has become due and remained unpaid for a
period in excess of ten days, but no such fine shall exceed five dollars
and only one fine shall be collected on any such installment regardless
of the period during which it remains in default, and provided further
that should the aggregate of such fines collected in connection with any
loan exceed two per centum of such loan, or in any event twenty-five
dollars, the savings and loan association shall refund such excess to
the borrower within sixty days after the loan is paid in full, or,
subject to an allowance of unearned interest attributable to the amount
in default, interest on each amount past due at a rate not in excess of
the rate provided for in the instrument evidencing the obligation; (iii)
the actual expenditures, including reasonable attorney`s fees, for
necessary court process; and (iv) in case the savings and loan
association insures a borrower under a credit unemployment insurance
policy, group life insurance policy, group health insurance policy,
group accident insurance policy, or group health and accident insurance
policy, or requires insurance on personal property securing any such
loan, an amount not in excess of the premiums chargeable in accordance
with rate schedules then in effect and on file with the superintendent
of insurance for such insurance by the insurer. No savings and loan
association shall require a borrower to place any sum on deposit, or to
make deposits in lieu of regular periodic installment payments, or to do
or refrain from doing any other act which would entail additional
expense or sacrifice, as a condition precedent to granting a loan or
advance of credit under the authority of this paragraph, except under
such terms and conditions as the superintendent may from time to time
approve. Notwithstanding the provisions of this paragraph no refund of
excess fines shall be required if it amounts to less than one dollar.
  (d) Representing loans secured by mobile home chattel paper evidencing
a monetary obligation incurred to finance the purchase of a mobile home
located at the time of such purchase, or to be located within ninety
days, at a semipermanent site within the state or in a contiguous state
and to be maintained as a residence of the borrower, the borrower`s
spouse, child, grandchild, parent or grandparent.
  (1) For this paragraph:
  (i) "mobile home chattel paper" means written evidence of both a
monetary obligation and a security interest of first priority in a
mobile home and any equipment installed, or to be installed therein, and
  (ii) "mobile home" or "manufactured home" means a structure,
transportable in one or more sections, which in the traveling mode, is
eight body feet or more in width or forty body feet or more in length,
or when erected on site, is three hundred twenty or more square feet,
and which is built on a permanent chassis and designed to be used as a
dwelling with or without a permanent foundation when connected to
required utilities, and includes the plumbing, heating, air-conditioning
and electrical systems contained therein.
  (2) If the loan is for the purpose of financing the purchase of a new
mobile home,
  (i) it shall mature not later than two hundred forty months after the
date thereof, and
  (ii) the amount advanced to the borrower shall not exceed one hundred
per cent of the sum of (a) the purchase price of such mobile home
(including any installed equipment) plus (b) the price of any new
equipment installed or to be installed by the dealer.
  (3) If the loan is for the purpose of financing the purchase of a used
mobile home,
  (i) it shall mature not later than two hundred forty months after the
date thereof, and
  (ii) the amount advanced to the borrower shall not exceed one hundred
per cent of the purchase price of the mobile home actually paid
(including any installed equipment).
  (4) The loan shall be payable in equal or substantially equal monthly
installments calculated from the date of the loan. Interest, which may
be taken in advance, may be charged thereon, computed from the date of
the loan to the date of the last installment payable thereunder, if the
loan has a maturity, (i) not exceeding thirty-seven months, at a rate
not to exceed six dollars per annum discount per one hundred dollars of
the face amount or ten dollars if the interest so computed is less than
that amount, or (ii) exceeding thirty-seven months, at a rate not to
exceed five dollars per annum discount per one hundred dollars of the
face amount provided that the interest charged, if the amount thereof
exceeds ten dollars, shall not exceed one per cent per month on the
unpaid principal balance.
  (5) The authorized interest shall be inclusive of all charges incident
to investigating and making any loan. No fee, commission, expense, or
other charge shall be permitted except that the savings and loan
association may contract to charge the borrower (i) the fees payable to
a public officer to perfect any lien or other security interest taken to
secure the loan, or the premium, not in excess of such filing fee,
payable for any insurance in lieu of such filing; (ii) in case of
default, and in accordance with the instrument evidencing the
obligation, either a fine in an amount not to exceed five per cent on
any installment which has become due and remained unpaid for a period in
excess of ten days, but no such fine shall exceed five dollars and only
one fine shall be collected on any such installment regardless of the
duration of the default, and provided further that should the aggregate
of such fines collected in connection with any loan exceed two per cent
of such loan or twenty-five dollars, the savings and loan association
shall refund such excess within sixty days after the loan is paid in
full, or, subject to an allowance of unearned interest attributable to
the amount in default, interest on each amount past due at a rate not in
excess of one per cent per month during the delinquency; (iii) the
actual expenditures, including reasonable attorney`s fees for necessary
court process, and (iv) in case the savings and loan association insures
a borrower under a credit unemployment insurance policy, group life
insurance, health insurance, accident insurance, or health and accident
insurance policy, or requires insurance on the property securing such
loan, an amount not in excess of the premiums lawfully chargeable. No
savings and loan association shall require a borrower to purchase shares
in the association, or to purchase shares in lieu of regular periodic
installment payments, or to do or refrain from doing any other act which
would entail additional expense or sacrifice, as a condition to granting
a loan under this paragraph except as the superintendent may from time
to time approve. No refund of excess fines need be made if it amounts to
less than one dollar.
  (6) As a condition of any loan made pursuant to this paragraph, the
borrower shall certify that the mobile home, against which the loan is
made, is intended to be maintained in the state or in a contiguous state
as a residence of the borrower, the borrower`s spouse, child,
grandchild, parent or grandparent. If the mobile home shall not be so
maintained on the ninetieth day next succeeding the date of the loan or
if it is relocated so as to no longer be located in the state or a
contiguous state at any time before the first anniversary of the loan,
the loan and all authorized charges shall become immediately due and
payable subject only to the refund provisions of paragraph (d) and the
borrower may, if the contract so provides, be required to pay, as an
additional authorized charge, a penalty in an amount not to exceed two
per cent of the face amount of the loan.
  (7) No loan shall be made by a savings and loan association pursuant
hereto if the total amount loaned by it pursuant to this paragraph
exceeds, or by the making of such loan will exceed, an amount equal to
five per cent of the assets of the savings and loan association.
  (8) Subject to such limitations and conditions as the banking board
may prescribe by general regulation, a savings and loan association may
make a loan pursuant to this paragraph which the federal housing
administrator has insured or has made a commitment to insure and may
receive and hold such debentures as are issued by the federal housing
administrator in payment of such insurance, or which is guaranteed
pursuant to the provisions of the act of congress entitled the
"Servicemen`s Readjustment Act of l944." No law of this state
prescribing or limiting the interest rate upon loans or advances of
credit or prescribing a penalty for violation thereof or prescribing the
nature, amount or form of security or requiring security upon which
loans or advances of credit may be made or prescribing or limiting the
period for which loans or advances of credit may be made or limiting the
amount of any class of loans, advances of credit or purchases which may
be made shall be deemed to apply to loans, advances of credit or
purchases made or to loans acquired by purchase pursuant to this
subparagraph.
  (e) A borrower may prepay any loan made pursuant to paragraph (b), (c)
or (d) in full or, with the consent of the savings and loan association,
may refinance the loan.  In the event of such prepayment or refinancing,
the savings and loan association shall refund: (1) the unearned portion
of the interest to the borrower the amount of which portion shall be
determined according to a generally accepted actuarial method; provided,
however, that if the amount of interest previously deducted (i) was less
than ten dollars, no refund shall be required; or (ii) exceeded the sum
of ten dollars and the earned interest is less than that amount, the
savings and loan association may retain such an additional amount as
will bring the earned interest to the sum of ten dollars and refund the
remainder, and provided further, that unless the loan is refinanced, no
refund shall be required if it amounts to less than one dollar; and (2)
if a charge was made to the borrower for premiums for insuring the
borrower under a credit unemployment insurance policy, group life
insurance policy, or under a group health, group accident or group
health and accident insurance policy, the excess of the charge to the
borrower therefor over the premiums paid or payable by the savings and
loan association, if such premiums were paid or payable by the savings
and loan association periodically, or the refund for such insurance
premium received or receivable by the savings and loan association, if
such premium was paid or payable in a lump sum by the savings and loan
association, provided that no such refund shall be required if it
amounts to less than one dollar. In the event (i) the maturity of the
loan is accelerated due to the default of the borrower or otherwise and
judgment is obtained, or (ii) repayment is made pursuant to any such
insurance policy, the borrower or his legal representative, as the case
may be, shall be entitled to the same refund as if the loan had been
prepaid in full on the date of acceleration or repayment.
  2-a. A savings and loan association may lend its funds to borrowers
therefrom upon their promissory notes representing loans for the purpose
of financing the purchase of or refinancing an existing ownership
interest in certificates of stock or other evidence of an ownership
interest in, and a proprietary lease from, a corporation or partnership
formed for the purpose of the cooperative ownership of real estate as
provided in this subdivision.
  A savings and loan association may, subject to such regulations as the
banking board finds necessary and proper, invest to an amount not
exceeding the maximum per cent of the loans permitted to be made on real
estate improved by a single family residence occupied by the owner,
provided that for purposes of this section the amount of the purchase
price shall be deemed to equal the appraised value of such certificate
of stock or other evidence of an ownership interest, or, in the case of
a refinancing, the appraised value of certificates of stock or other
evidence of the ownership of an interest in, and a proprietary lease
from, a corporation or partnership formed for the purpose of the
cooperative ownership of real estate, for the purpose of financing a
purchase of or refinancing an existing ownership interest in such a
corporation or partnership; provided (a) such investment is secured
within ninety days from the making of the loan by an assignment or
transfer of the stock or other evidence of an ownership interest of the
borrower and a proprietary lease; and (b) repayments of principal and
interest shall be effected within the same number of years as a
conventional mortgage loan previously described in this subdivision. The
maximum rate of interest which may be charged, taken or received upon
any loan or forbearance made pursuant to this subdivision may exceed the
rate of interest prescribed by the banking board in accordance with
section fourteen-a of this chapter by no more than one and one-half per
cent per annum.
  3. A savings and loan association may also lend its funds, if at any
time such association has funds in excess of the amount needed for loans
to its members, as follows:
  (a) To other savings and loan associations.
  (b) Upon bonds and mortgages and notes and mortgages upon real estate
to the same extent authorized in subdivision one of this section,
subject to the limitations therein.
  3-a. A savings and loan association may also lend its funds to its
members or their children who are attending or planning to attend
colleges in this state or elsewhere, to assist them in meeting their
expenses of higher education, where such loans are made by the
association and (1) guaranteed by the New York higher education
assistance corporation in accordance with the provisions of article
fourteen of the education law, or (2) insured or covered by a commitment
to insure or are guaranteed or covered by a commitment to guarantee
issued by the federal education commissioner in accordance with the
provisions of the act of congress entitled the "Higher Education Act of
1965". In such cases no further security for the repayment of such loans
shall be required of the borrowers by the association. A savings and
loan association may also lend its funds to nonmembers, for the same
purposes and upon the same terms and conditions if, at any time, such
association has funds in excess of the amount needed for loans to its
members.
  4. No loan shall be made under the provisions of this section upon the
security of a mortgage:
  (a) Which is not a first lien upon the property described therein,
unless all prior mortgages, liens or encumbrances thereon are owned by
such association; and no such prior mortgage, lien or encumbrance shall
be sold, transferred or assigned by such association until every
subsequent mortgage, lien or encumbrance owned by it shall have been
fully paid and satisfied; and further provided that whenever loans are
made under both subdivisions one and three of this section upon the same
real estate the limitations of amount applicable to the loan under each
subdivision shall be determined by first segregating that portion of the
appraised value of the premises necessary to sustain the prior mortgage,
lien or encumbrance, and the limitation of amount applicable to the
additional mortgage, lien or encumbrance shall then be determined with
reference only to the remaining portion of the appraised value; provided
further that the loan under subdivision three shall provide for equal or
substantially equal periodic payments of interest and principal at least
annually in amount sufficient to pay all interest and effect full
repayment of principal within thirty years;
  (b) Except upon the written and signed certificate of an appraiser
appointed pursuant to policies established by the board of directors,
certifying to the value of the premises according to such appraiser`s
judgment. Such certificate shall be filed and preserved among the
records of the association and any member shall have access thereto;
  4-a. A savings and loan association may, in addition to the authority
granted under any other subdivision of this section or subdivision seven
of section three hundred seventy-nine of this chapter, make a loan to a
natural person upon the security of a mortgage which is not a first lien
at the rate or rates agreed to by the savings and loan association and
the borrower, subject to such regulations as the banking board may
prescribe. Such regulations by the banking board may include such
restrictions as the banking board finds necessary or proper, including
without limitation, a restriction as to the percentage of total assets
which may be invested in such loans or a restriction on the loan to
appraisal value of property securing such loan.
  For purposes of this subdivision, the term mortgage shall include a
lien on an existing ownership interest in certificates of stock or other
evidence of an ownership interest in, and a proprietary lease from, a
corporation or partnership formed for the purpose of the cooperative
ownership of real estate.
  5. Every mortgage and every assignment of a mortgage taken by any
savings and loan association shall be immediately recorded or registered
in the office of the proper recording officer of the county in which the
real estate described in such mortgage is located. This subdivision
shall not apply to a participating interest in any mortgage which shall
have been acquired by a savings and loan association under the
provisions of section three hundred eighty-c of the banking law if the
originating mortgagee shall have recorded such mortgage or an assignment
thereof in the office of the proper recording officer of the county in
which the real estate described in such mortgage is located.
  6. Any savings and loan association may require either single premium
reducing term, monthly premium reducing term, or fully paid-up life
insurance or accident, health or disability insurance to be assigned to
it by any borrower. When directed by the written order of a borrower,
the cost of such insurance may be advanced and paid by the association.
All such payments may be added to the unpaid balance of the loan.
  7. A savings and loan association shall have the power to waive its
right to enforce payment of a bond or note secured by a mortgage on real
property and may waive its right to obtain a deficiency judgment against
the borrower in the event of foreclosure of such mortgage.

  S 380-a. Power to purchase mortgage, loan or investment. Subject to
such regulations and restrictions as the superintendent of banks may
prescribe therefor, an association may acquire by purchase any mortgage,
loan or investment which by the provisions of this article it is
authorized to make and hold.

  S 380-b. Power to purchase mortgages from mortgage holders. A savings
and loan association may purchase from mortgage holders; (1) any bond
and mortgage insured or guaranteed by the United States or any
instrumentality thereof, or for which there is a commitment to so insure
or guarantee, or (2) provided the mortgage is a first lien, any bond and
mortgage at least twenty per centum of which is guaranteed pursuant to
the provisions of the act of congress entitled the "Servicemen`s
Readjustment Act of 1944". A savings and loan association may receive
and hold such debentures as are issued in payment of any such insurance.
No law of this state prescribing or limiting the interest rate upon
loans or advances of credit or prescribing a penalty for violation
thereof or prescribing the nature, amount or form of security or
requiring security upon which loans or advances of credit may be made or
prescribing or limiting the period for which loans or advances of credit
may be made or limiting the amount of any class of loans, advances of
credit or purchases which may be made shall be deemed to apply to loans,
advances of credit or purchases made or to loans acquired by purchase
pursuant to this subdivision.

  S 380-c. Power to participate in certain loans and mortgage
investments. Subject to such regulations and restrictions as may be
prescribed by the banking board, a savings and loan association may
participate in making or acquiring (1) loans of a type that it is
authorized to have by paragraph (b) of subdivision two of section three
hundred eighty of this chapter, and (2) mortgage investments of any type
that it is authorized to have, provided that the participation acquired
shall not be subordinate to any other part interest.

  S 380-e. Effect of usury. The knowingly taking, receiving, reserving,
or charging by a savings and loan association of interest, as computed
pursuant to this article, at a rate greater than such rate of interest
as may be authorized by law shall be held and adjudged a forfeiture of
the entire interest which the note or other evidence of debt carries
with it, or which has been agreed to be paid thereon. If such greater
rate of interest has been paid, the person paying the same or his legal
representatives may recover from the savings and loan association twice
the entire amount of the interest thus paid. Nothing in this section
shall be deemed to affect the powers of any savings and loan association
with respect to loans or investments it is authorized to make.

  S 380-f. Power to make advances of federal funds. A savings and loan
association may make advances of federal funds to commercial banks,
provided such advances are made on the condition that they be repaid on
the next business day following the day on which the advance is made.
For purposes of this section the term "federal funds" shall mean funds
which a savings and loan association has on deposit at a commercial bank
which are exchangeable for funds on deposit at a federal reserve bank;
the term "commercial bank" shall mean any bank, trust company, private
banker, national banking association, having its principal office in
this state; and the term "business day" shall mean any day on which the
savings and loan association, the commercial bank and the federal
reserve bank where the funds are on deposit are all open for general
business.

  S 380-g. Power to engage in line of credit financing of residential
real estate. A savings and loan association is authorized to invest an
amount, not exceeding the lesser of (a) ten per centum of the sum of its
surplus, undivided profits, and reserves or (b) one per centum of its
assets, in loans or in interests therein the principal purpose of which
is to provide financing with respect to what is or is expected to become
primarily residential real estate within this state, where (i) the
association relies substantially for repayment on the borrower`s general
credit standing, with or without other security, or (ii) the association
relies on other assurances for repayment, including but not limited to a
guaranty or similar obligation of a third party, and, in either case
described in clause (i) or (ii), regardless of whether or not the
association takes security.

  S 380-h. Trust powers. 1. The banking board is authorized and
empowered to grant permission to a savings and loan association to
exercise any or all of the powers specified in sections one hundred, one
hundred-a, one hundred-b and one hundred-c of this chapter. In passing
upon applications for permission to exercise any such powers, the
banking board may take into consideration the amount of surplus of the
applying association, whether or not such surplus is sufficient under
the circumstances of the case, the needs of the community to be served
and any other facts and circumstances that seem to it proper, and may
grant or refuse it permission accordingly.
  2. Whenever the laws of this state require a trust company acting in a
fiduciary capacity to deposit securities with the state authorities for
the protection of private or court trusts, a savings and loan
association, so acting, is empowered to make similar deposits of
securities.
  4. The banking board is authorized to promulgate such regulations as
it may deem necessary or proper to implement the provisions of this
section and the proper exercise of the powers granted by this section.

  S 380-i. Personal loan departments. Subject to such regulations as the
banking board may prescribe, a savings and loan association may operate
a personal loan department under the same terms and conditions as are
provided under subdivisions four and five of section one hundred eight
of this chapter.
  The banking board shall be empowered (a) to prescribe the terms and
conditions governing the conduct and operation of personal loan
departments including the maximum amount, expressed as a percentage of
assets or otherwise, which a savings and loan association may invest
pursuant to the provisions of this subdivision or in the aggregate,
taking into account such other provisions of law authorizing investments
by savings and loan associations and (b) to prescribe such terms and
conditions as may be appropriate to effect or facilitate the tranfer of
accounts operated pursuant to the provisions of any other section of
this chapter to the personal loan departments authorized to be operated
hereunder.
  In pursuance of the authority granted hereunder savings and loan
associations shall be empowered to issue credit cards, extend credit in
connection therewith, and otherwise engage in or participate in credit
card operations, and to act as financing agencies as defined in
subdivision nine of section three hundred one and subdivision eighteen
of section four hundred one of the personal property law.

  S 380-j. Authorization to acquire and lease personal property. A
savings and loan association is authorized to acquire and lease personal
property to the same extent as a commercial bank is authorized to engage
in such activities under subdivision twelve of section ninety-six of
this chapter, subject to those limitations applicable to such activities
in the case of banks or trust companies.

  S 380-k. Investment in promissory notes. A savings and loan
association may invest in promissory notes and other evidences of
indebtedness representing commercial, corporate or business loans to the
same extent as a savings bank is authorized to invest in such notes
under subdivision eight-c of section two hundred thirty-five of this
chapter, subject to those limitations applicable to such investments in
the case of a savings bank. For the purposes of this section, the term
"net worth" shall have the meaning ascribed to it by subdivision four of
section two hundred forty-four of this chapter.  In addition, a savings
and loan association is authorized to invest in such promissory notes as
a savings bank may invest in pursuant to paragraph five of subdivision
eight of section two hundred thirty-five of this chapter.

  S 380-l. Excelsior linked deposit program. A savings and loan
association may make linked loans, each authorized and approved pursuant
to article fifteen of the state finance law and each in an amount equal
to a corresponding linked deposit made pursuant to such article, subject
to the limits of section three hundred eighty-k of this article and any
other applicable limits or requirements imposed by law or regulation.

  S 381. Power to take and hold real estate; restrictions. 1. A savings
and loan association may take, hold and convey real property as follows:
(a) A plot whereon there is or may be erected a building suitable for
the convenient transaction of its business, from portions of which not
required for its own use a revenue may be derived, and a plot whereon
parking accommodations are, or are to be, provided, with or without
charge, primarily for its customers or employees or both; provided that
the aggregate of all investments of any savings and loan association in
such plots and buildings or in the bonds and mortgages upon such plots
or buildings shall not exceed five per centum of the assets of such
association except with the approval of the superintendent.
  (b) Such as shall be conveyed to it in satisfaction of debts
previously contracted in the course of its business.
  (c) Such as it shall purchase at sales under judgments, decrees or
mortgages held by it.
  (d) A whole or part interest in a "project" as defined in the New York
state urban development corporation act, pursuant to sections six or
eight of such act. An investment by an association in a single project
shall not exceed one per centum of the assets or ten per centum of the
net worth of such association, whichever is less, and the aggregate of
all investments of an association in such projects and investments in
securities pursuant to subparagraph one-a of paragraph (a) of
subdivision twenty-one of section two hundred thirty-five of this
chapter shall not exceed five per centum of the assets or fifty per
centum of the net worth of such association, whichever is less. For the
purposes of this subdivision, "net worth" of an association shall mean
the excess of its assets at book value, less allocated reserves, over
known liabilities.
  * (e) Improved or unimproved real property (either by purchase, lease,
exchange or otherwise), or any interest therein, to erect, construct,
rebuild, enlarge, alter, improve, maintain, manage and operate buildings
or other improvements of any description thereon, to sell, lease,
sublet, mortgage, exchange or otherwise dispose of same and execute,
perform and carry out contracts for construction, alteration,
improvement, maintenance, management or repair thereof, to make loans in
connection therewith, as owner, co-owner or otherwise, subject to such
specific or general approvals and limitations as shall be required by
regulations promulgated from time to time by the banking board pursuant
to this paragraph; provided, however, that no activity specified herein
shall be undertaken pursuant to the authority contained in this
paragraph until the banking board shall have issued regulations
specifying the limitations and requirements which shall be imposed in
connection with the investments and activities referred to herein,
including, without limitation, the consideration of such savings and
loan association`s record in meeting the credit needs of local
communities within the meaning of section twenty-eight-b of this
chapter.
  * NB Expires June 30, 1988
  2. All real estate purchased by any such association or taken by it in
settlement of debts due it, shall be conveyed to it directly by name or,
subject to such regulations and restrictions as the banking board finds
to be necessary and proper, may be taken in the name of a duly
authorized nominee, and the conveyance immediately recorded or
registered in the office of the proper recording officer of the county
in which such real estate is located.

  S 382. Power to borrow. Subject to such regulations as the banking
board may promulgate, a savings and loan association may borrow money
and pledge its assets as security for the repayment thereof if it has
been authorized so to do by the vote of a majority of its board of
directors.

  S 382-a. Power to act as trustee under self-employed retirement trust
and of individual retirement account; investment in savings account. 1.
Subject to any regulations and restrictions prescribed by the
superintendent of banks, a savings and loan association shall have power
to act as trustee under a retirement plan established pursuant to the
provisions of the act of congress entitled "Self-employed Individuals
Tax Retirement Act of 1962", and provisions of law contained therein as
amended, provided that the provisions of such retirement plan require
the funds of such trust to be invested exclusively in deposits in
savings and loan associations and federal savings and loan associations
whose principal offices are located in this state. In the event that any
such retirement plan, which in the judgment of the association,
constituted a qualified plan under the provisions of said Self-employed
Individuals Tax Retirement Act of 1962, and provisions of law contained
therein as amended, and the regulations promulgated thereunder at the
time the trust was established and accepted by the association is
subsequently determined not to be such a qualified plan or subsequently
ceases to be such a qualified plan, in whole or in part, the association
may, nevertheless, continue to act as trustee of any deposits
theretofore made under such plan and to dispose of the same in
accordance with the directions of the depositor and the beneficiaries
thereof. No association, in respect to deposits made under this
subdivision, shall be required to segregate such deposits from other
deposits of such association, provided, however, that the association
shall keep appropriate records showing in proper detail all transactions
engaged in under the authority of this subdivision.  As used in this
subdivision, the term "deposits" shall include shares issued by the
association and time deposits held pursuant to section three hundred
seventy-eight-a of this chapter.
  2. Subject to any regulations and restrictions prescribed by the
superintendent of banks, a savings and loan association shall have power
to act as trustee of an individual retirement account established
pursuant to the provisions of the act of congress entitled "Employee
Retirement Income Security Act of 1974" provided that the provisions of
the written governing instrument creating the trust require the funds of
such trust to be invested exclusively in deposits in savings and loan
associations and federal savings and loan associations whose principal
offices are located in this state. In the event that any such individual
retirement account, which in the judgment of the association,
constituted a qualified individual retirement account under the
provisions of said Employee Retirement Income Security Act of 1974 and
the regulations promulgated thereunder at the time the trust was
established and accepted by the association is subsequently determined
not to be such a qualified individual retirement account or subsequently
ceases to be such a qualified individual retirement account, in whole or
in part, the association may, nevertheless, continue to act as trustee
of any deposits theretofore made under such individual retirement
account and to dispose of the same in accordance with the directions of
the depositor and the beneficiaries thereof. No association, in respect
to deposits made under this subdivision, shall be required to segregate
such deposits from other deposits of such association, provided,
however, that the association shall keep appropriate records showing in
proper detail all transactions engaged in under the authority of this
subdivision.  As used in this subdivision, the term "deposits" shall
include shares issued by the association and time deposits held pursuant
to section three hundred seventy-eight-a of this chapter.

  S 382-b. Power to issue certain obligations. 1. In addition to all
other powers granted to it by other provisions of law, a savings and
loan association may issue such notes, bonds, debentures, or other
obligations or other securities as the superintendent may authorize.
  2. Subject to such regulations and restrictions as the banking board
finds to be necessary and proper and notwithstanding any other
provisions of law, a savings and loan association may issue notes,
bonds, debentures, or other obligations or other securities subordinated
to deposits in such savings and loan association; provided that, unless
the superintendent has given prior approval otherwise, the aggregate
principal amount thereof at the time of issuance shall not exceed
twenty-five per cent of the net worth of such savings and loan
association, exclusive of all such notes, bonds, debentures, or other
obligations or other securities. The proceeds or other consideration
derived by a savings and loan association from the issuance pursuant to
this subdivision of any such notes, bonds, debentures, or other
obligations or other securities shall be deemed for purposes of this
chapter to constitute a part of the net worth of such savings and loan
association. For the purposes of this article, the term "net worth"
shall mean the excess of assets at book value, less allocated reserves,
over known liabilities, including deposit liabilities.

  S 383. Other powers. Every savings and loan association shall, subject
to the restrictions and limitations contained in this chapter, have the
following powers:
  1. To become a member of the Savings and Loan Bank of the State of of
New York; to exercise such powers as may be conferred upon member
associations of such Savings and Loan Bank; and to perform such duties
and obligations as may be lawfully required of such member associations.
  2. To become a member of a federal home loan bank; and to have and to
exercise all powers, not in conflict with the laws of this state, which
are conferred upon any such member by the federal home loan bank act.
Such savings and loan association and its directors and officers shall
continue to be subject, however, to all liabilities and duties imposed
upon them by any law of this state and to all provisions of this chapter
relating to savings and loan associations.
  3. To assume and discharge such obligations to Federal Deposit
Insurance Corporation as may be necessary or required for the purpose of
maintaining share insurance in such corporation.
  4. To receive money for transmission and to transmit such money, and
to sell money orders and travel checks as agent for any corporation,
association or joint stock company empowered to sell such instruments
through agents in the state of New York.
  5. To service mortgages for others, and to render investment advice
incidental to the purchase of and investment in mortgages by others,
provided, however, that the superintendent of banks shall have power to
prescribe, by specific or general regulation, the extent to which and
the conditions upon which such mortgages may be serviced and such
investment advice may be rendered.
  6. To service mortgages or to perform other services for the Federal
National Mortgage Association created under the housing act of nineteen
hundred fifty-four, as amended from time to time, and to sell or assign
mortgages to such association and in connection therewith to make
capital contributions thereto, purchase stock thereof, and do any and
all other acts which under the laws and regulations applicable to such
sales may be required to enable such sales to be effected.
  7. To sue and to be sued in all courts and to participate in actions
and proceedings, whether judicial, arbitrative or otherwise, in like
cases as natural persons.
  8. To have a corporate seal, and to alter such seal at pleasure, and
to use it by causing it or a facsimile to be affixed or impressed or
reproduced in any other manner.
  9. To make donations, irrespective of corporate benefit, for the
public welfare or for community fund, hospital, charitable, educational,
scientific, civic or similar purposes, and in time of war or other
national emergency in aid thereof.
  10. To elect or appoint officers, employees and other agents of the
savings and loan association, define their duties, fix their
compensation, and to indemnify corporate personnel.
  11. To have perpetual existence.
  12. To execute and deliver such guaranties as may be incidental or
usual in the transfer of investment securities.
  13. To receive and repay demand deposits subject to those provisions
applicable to such deposits, in the case of savings banks under section
two hundred thirty-seven of this chapter, including, subject to
regulation by the banking board, the power to charge for maintaining a
demand deposit account or for honoring checks drawn on or accepting
deposits made to such an account.
  The banking board shall have the power to prescribe by regulation (a)
the maximum charge which may be imposed in this state by a savings and
loan association in connection with a check or other written order drawn
upon it on insufficient funds, irrespective of whether the instrument is
paid, accepted or returned by the bank, and (b) the maximum charge which
may be imposed in this state by a savings and loan association in
connection with a check or other written order received by it for
deposit or collection and subsequently dishonored and returned for any
reason by the drawee.
  14. To have and exercise all other powers necessary or appropriate in
conducting the business of a savings and loan association.
  15. Subject to such regulations as the banking board finds to be
necessary and proper, and notwithstanding any other provision of law, to
accept federal tax and loan accounts, the balance of which are payable
on demand without previous notice of intended withdrawal and to pledge
collateral to secure such accounts.
  16. Subject to any limitations or other specific provisions contained
in this chapter or any other statute of this state or its organization
certificate, and as shall be appropriate in conducting the business of
the corporation, and only for such activities which are authorized by
this chapter for savings and loan associations: to be a promoter,
partner, member, associate or manager of other business enterprises or
ventures, or to the extent permitted in any other jurisdiction to be an
incorporator of other corporations of any type or kind.

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NY Banking Law Index

Civil Practice Law & Rules

Consolidated Laws

Statute of Limitations

Article 10, Continued . . .

	
  S 383-a. Rental of safe deposit boxes. Any savings and loan
association may rent to its members safe deposit boxes in which to keep
personal property and papers of any kind.

  S 384. Entries in books; restrictions; amortization of securities. 1.
No savings and loan association shall by any system of accounting or any
device of bookkeeping, directly or indirectly, enter any of its assets
upon its books in the name of any individual, partnership or
unincorporated association or of any other corporation, or under any
title or designation that is not truly descriptive thereof, except as
authorized by the provisions of this article. 
  2. The stocks, bonds or other interest-bearing obligations purchased
by a savings and loan association shall be entered on its books at the
actual cost thereof, and shall not thereafter be carried upon its books
at a valuation exceeding their cost as adjusted by amortization for the
purpose of bringing them to par at maturity; and where securities
purchased at a premium are callable prior to maturity, the rate of
amortization thereof shall be increased when necessary to such extent as
shall reduce the amount at which such securities are carried upon the
books to the call price at the date or dates upon which a call may be
made. No adjustment for amortization shall be required to be made on the
books, except when the books are closed for the purpose of computing
profits. The banking board may by general regulation adopted by a
three-fifths vote of all its members vary the requirements of this
subdivision to permit the amortization of premiums at the same rate as
that required by federal tax statutes or regulations.
  3. No savings and loan association, without the written permission of
the superintendent, shall enter on its books its real estate and the
building or buildings thereon, or its fixtures, vaults, furniture and
equipment, at a valuation exceeding the actual cost thereof to such
savings and loan association, or carry such real estate, building or
buildings, fixtures, vaults, furniture or equipment on its books at a
valuation exceeding the actual cost less appropriate allowances for
depreciation. No adjustment for depreciation shall be required to be
made on the books except when the books are closed for the purpose of
computing profits.
  4. Real estate acquired by an association other than that acquired for
use as a place of business, shall be entered on the books of the
association in conformity with the method of accounting for troubled
debt restructurings approved by the financial accounting standards board
or such other method of accounting as may be authorized or required by
rules and regulations of the banking board.
  The provisions of this subdivision shall not, except as the
superintendent may otherwise require, apply to any parcel of real estate
as to which the savings and loan association has exercised its option to
transfer or convey such real estate to the veterans administration or
the federal housing commissioner pursuant to insurance or guaranty.
  5. Every savings and loan association shall conform its method of
keeping its books and records to such orders in respect thereto as shall
have been made and promulgated by the superintendent. Any savings and
loan association that refuses or neglects to obey any such order shall
be subject to a penalty of twenty-five dollars for each day it so
refuses or neglects.

  S 385. Surplus account. Every savings and loan association shall
accumulate and maintain a surplus account as provided in section three
hundred eighty-seven of this article. Such surplus account up to ten per
centum of the association`s capital shall not be available for any
purpose, except with the prior written approval of the superintendent;
but any such association may: (a) charge against such surplus account
any losses or expenses without such approval only in the event such
association has no undivided profits against which such losses or
expenses may be charged or (b) may, with the prior written approval of
the superintendent, transfer any part of such surplus account to any
other account for any purpose. Such account may be created or increased
by contributions and by transfers from undivided profits or from net
profits.

  S 386. Profits; how and when to be computed. 1. Every savings and loan
association shall close its books, for the purpose of computing its
profits, at the end of any period for which a dividend is to be paid and
in no event less frequently than quarterly. To determine the amount of
gross income for any such accounting period the following items may be
included:
  (a) All income received or properly accrued, provided that no interest
shall be accrued upon any interest-bearing asset upon which a default of
principal or interest has existed for a period which shall be determined
by the superintendent, except for interest-bearing assets secured by
collateral the ascertained value of which is at least equal to the
amount at which such asset plus all interest accrued thereon is carried
on its books.
  (b) Amounts added to cost for the purpose of amortizing discounts on
securities purchased for less than par, provided that no discount shall
be amortized on securities upon which a default exists.
  (c) Any profits actually realized from the sale or other disposition
of securities, real estate or other property.
  (d) Amounts recovered on assets previously charged off, including
amounts allowed by the superintendent on account of assets previously
disallowed by him; and other amounts allowed by the board of directors
on account of assets previously disallowed by it.
  (e) Provided the superintendent shall have approved, and only to the
extent of such approval, any increase in the book value of the real
estate and building or buildings thereon used by it as its place or
places of business.
  (f) Such other items as the superintendent, in his discretion, may
permit to be included.
  2. To determine the amount of net profits for such accounting period
the following items shall be deducted from gross income:  (a) All
expenses paid or properly accrued, both ordinary and extraordinary, in
the transaction of its business, the collection of its debts and the
management of its affairs.
  (b) Interest paid or properly accrued upon time deposits held pursuant
to section three hundred seventy-eight-a of this article, interest paid
or properly accruing upon deposits referred to in section three hundred
seventy-eight-b of this article and debts owing by it.
  (c) Amounts deducted from cost for the purpose of amortizing premiums
on securities purchased for more than par.
  (d) Any losses sustained by it except to the extent that such losses
have been charged against the surplus account or valuation reserves.  In
the computation of such losses there shall be included all deductions
from the book value of assets made pursuant to the direction of the
board of directors or by reason of the disallowance of assets by the
superintendent. The balance thus obtained shall constitute the net
profits of such savings and loan association for such period.

  S 387. Credits to surplus account and undivided profits; dividends to
shareholders. 1. When the net profits of any savings and loan
association have been determined at the close of an accounting period,
if its net worth does not equal ten per centum of its capital, such net
profits shall be credited to its surplus account in such amount as may
be determined by the banking board until such net worth equals ten per
centum of its capital. For purposes of this article, the term "net
worth" shall mean the excess of assets at book value, less allocated
reserves, over known liabilities. The balance of such net profits,
together with any amounts remaining from similar balances for previous
accounting periods, shall constitute the undivided profits of such
savings and loan association at the close of such period. The directors,
in addition to the transfers to the surplus account required by this
section, may transfer additional amounts to surplus account from
undivided profits or continue to carry as undivided profits such sum or
sums as they may deem wise. Amounts heretofore credited to a reserve for
bad debts pursuant to chapter three hundred nine of the laws of nineteen
hundred fifty-two shall be transferred to surplus account.
  2. The undivided profits of a savings and loan association at the
close of an accounting period shall be available for dividends. The
directors may declare such dividends pursuant to the provisions of this
paragraph or for any annual, semiannual, quarterly or monthly period
closing on the last day of a calendar month or as provided in paragraph
(bb) of subdivision four of section three hundred seventy-eight of this
chapter.  No association shall declare, credit or pay any dividend while
its capital is impaired, or at any time except by a vote of the board of
directors.
  Notwithstanding the foregoing, in the event the gross income,
undivided profits, surplus account or net worth of a savings and loan
association shall be, or shall be deemed by the superintendent to be,
increased as a result of any loan, purchase of assets or guaranty by, or
other transaction with, any insuror of the accounts of such savings and
loan association, including a transaction subject to subdivision two of
section three hundred eighty-two-b of this article, the amount of any
such increase in the gross income, undivided profits, surplus account or
net worth of such savings and loans association shall, with the prior
written approval of the superintendent, be available for dividends.
  4. Dividends shall be apportioned upon the dues and dividends credited
to members, provided, however, that, except in the case of special
savings shares, no dividend shall be required to be computed and paid
upon any dues credited to a member except from the first day of the
month immediately following the date of receipt of such dues, and
provided further, that no dividend shall be required to be apportioned
on shares having a book value of less than fifty dollars or on savings
shares issued for special purposes which by their terms are to be
withdrawn by the shareholder within one year from the date of their
issuance. Any such association may compute dividends upon dues credited
to a member from the date of actual receipt of such dues. The by-laws of
any such association may provide a schedule of varying rates of
dividends for different classes of shares and different types of shares
within any class.
  5. No savings and loan association shall declare any dividends upon
the accumulations on any share for a longer period than that during
which such accumulations have been held; provided, however, that dues
paid upon shares not later than the tenth day of any month, may have
dividends declared thereon from the first day of the month in which such
payment was made; and withdrawals of shares during the last three
business days of any dividend period or, in the event that one of such
last three business days is a Saturday, deposits withdrawn upon one of
the last four business days of any dividend period may receive dividends
apportioned for the full period.

  S 388. Fines and penalties for failure to make payments on instalment
shares. 1. Where dividends on instalment shares are credited by series,
a savings and loan association may impose fines upon the holders of
instalment shares of a series, their legal representatives or successors
in interest, if they neglect to pay dues, interest or premium when due,
but such fines shall not exceed one per centum per month of the amount
in default for the period during which such dues, interest and premium
shall have remained in default, except that a fine at the rate of two
per centum per month of the amount in default may be imposed during the
first three months of any default.
  2. Where dividends on instalment shares are credited individually to
shares, a savings and loan association may declare a lower rate of
dividend on instalment shares upon which there has been a default for
more than sixty days since the last declaration of dividends, provided
that such dividend shall be not less than sixty per centum of the
dividend declared on like instalment shares not in default.
  3. Where dues on instalment shares are applied directly in reduction
of a mortgage loan, a savings and loan association may provide, as one
of the terms of the obligation, that interest may be added to the unpaid
balance of the obligation on the first day of each month and computed
upon the unpaid balance of the obligation due as of the last day of the
preceding month.
  4. No fine shall be charged against or deducted from the dues actually
paid by a member and no fines or penalties other than those provided in
this section shall be imposed for failure to meet payments on instalment
shares.

  S 389. Matured shares; conversion into shares of another class upon
notice.  Whenever the dues and dividends credited to instalment or
accumulative prepaid shares shall equal their matured value, notice of
such maturity shall be given to the holders thereof and the payment of
dues thereon shall cease. Such notice shall be mailed to such
shareholder at his last known address as it appears on the books of the
association and, in the discretion of the board of directors, may
contain a further provision that if such shareholder fails to accept
payment for such shares, convert such shares into shares of another
class or file an application to withdraw such shares within sixty days
after the mailing of such notice, the same will be converted into
another class of shares specified in such notice. If such additional
provision has been included in such notice and the shareholder fails or
neglects to accept payment for such shares, convert such shares into
shares of another class or file an application to withdraw such shares,
within such sixty days, the board of directors may, by resolution,
convert such shares into the class of shares specified in such notice.
For the purpose of maturing such shares, a special dividend may be
credited between regular dividend dates at the same rate at which the
last regular dividend was credited. When shares pledged to the
association mature, the value of such shares shall, to the extent of the
obligation for which they are pledged, be applied in payment thereof.
Any remaining balance of such shares shall be treated as matured shares
and any other collateral not required to satisfy such obligation shall
be returned.

  S 390. Withdrawal of unpledged shares; provisions for dividends. 1.
The accumulations upon shares of any savings and loan association which
are not pledged to the association to secure a loan, whether or not such
shares are matured, may be withdrawn subject to the provisions of this
chapter and of the by-laws and regulations of the association made in
accordance therewith. In addition to his rights as a shareholder of an
association, a shareholder shall be a creditor of the association to the
extent of all dues and dividends credited to him. An association may by
regulation adopted by resolution of its board of directors require a
written notice of thirty days before paying withdrawals, in which event
no withdrawal shall be paid until thirty days after notice of intention
to make the withdrawal shall have been filed. It shall on the day such
regulation is made effective notify the superintendent by telephone or
telegraph that such regulation has been made and shall thereafter
number, date and file in the order of actual receipt every notice of
intention to make a withdrawal. Except as provided in section three
hundred seventy-eight-a of this chapter, no savings and loan association
shall hereafter agree with any of its shareholders in advance to waive
the said thirty days` notice. Except in the case of special savings
shares, if the by-laws so provide, a special dividend may be credited on
shares withdrawn between regular dividend dates at the rate of the last
dividend, computing from the last dividend period to the first day of
the month in which such withdrawal is made.
  1-a. A savings and loan association may permit a shareholder to
withdraw the accumulations upon his shares of the association which are
not pledged to the association to secure a loan, whether or not such
shares are matured, through a disbursing savings and loan association
that is a member of the federal deposit insurance corporation if the
office of the disbursing association through which payment of such
withdrawal is made is located more than fifty miles from the principal
dwelling place of such shareholder.  The association may authorize
payment by the disbursing association only upon receiving a specific
telephonic withdrawal request, which may be oral or electronic, from
such shareholder, and the amount so paid shall be immediately withdrawn
from the shareholder`s account at such association. A savings and loan
association providing withdrawal services pursuant to this subdivision
one-a may, but is not required to: (a) charge a fee to shareholders
making such withdrawals, (b) place a limitation upon the amount of such
withdrawal requests, and (c) pay a fee to the disbursing association. A
savings and loan association may also act as the disbursing association
in a similar withdrawal transaction from such accumulations on shares in
another association that is a member of the federal deposit insurance
corporation, and may collect a fee for its services. This subdivision
one-a shall not apply to time deposits received by an association
pursuant to section three hundred seventy-eight-a of this chapter.
  2. If a member shall not apply for the withdrawal within fifteen days
after the expiration of the thirty days` notice of intention no
withdrawal shall be payable under such notice or by reason thereof.
While any withdrawal application made pursuant to the required notice of
intention remains in effect and unpaid, no withdrawal application made
pursuant to a notice of intention subsequently filed shall be paid and
no loan may be made secured by transfer or pledge of shares, nor shall
shares be retired or applied by the association, or by the member toward
the payment of fines and obligations due to the association, nor shall
dividends be declared or paid.
  3. Upon the withdrawal of instalment or accumulative prepaid shares
prior to their maturity, or upon the withdrawal of income shares issued
for a fixed term prior to the expiration of such fixed term, a portion
of the dividends credited to such shares may be retained by the
association as its own property, in accordance with a schedule, clearly
and fully set forth in the by-laws. Such schedule shall make proper
provision with respect to each class of share, and in the case of
instalment shares shall take into account the period such shares have
been in force, provided, however, that the portion of such dividends
that may be retained by the association upon the withdrawal of a share
shall in no case exceed forty per centum of the dividends apportioned
and credited upon such share.
  4. The board of directors may permit a member to withdraw part of the
accumulations on his shares, other than instalment shares issued in
series, without reducing the number of shares held by him.
  5. Subject to any regulations and restrictions prescribed by the
superintendent of banks, a savings and loan association may accept
deposits, including demand deposits, without the issuance of a passbook
in connection therewith, and may issue such other evidences of its
obligation to repay such deposits as may be appropriate to safeguard the
interests of the depositors and of the savings and loan association.
  6. In case of conflict between this section and any other provision of
law, this section shall control.

  S 392. Retirement of shares; suspension; transfer. 1. The board of
directors of any savings and loan association may retire shares which
are not pledged to the association by requiring their withdrawal, if the
by-laws clearly state the manner in which such withdrawals may be
required. The holders of such shares shall be paid the book value of
their shares less all lawful obligations.
  2. Whenever a member of any savings and loan association shall have
failed for six months to pay dues upon any instalment shares owned by
him, such association may serve notice upon him to pay such dues within
the time stated in such notice, which time shall be not less than thirty
days. If such shareholder does not make such payment within the time
stated in the notice, the amount which would be due him if his shares
were withdrawn shall be determined and such amount transferred and
credited to him in a savings share account or a suspense account. If
transferred to a suspense account, the rights of such member shall cease
except the right to withdraw, subject to the provisions of section three
hundred ninety of this article, the amount thus credited to him and such
dividends as may be credited thereon following the date of such
transfer. Dividends on amounts in suspense accounts shall be credited at
a rate of at least three-fifths of the lowest rate at which dividends
are apportioned to any type of instalment shares.
  3. No transfer of shares shall be binding upon any savings and loan
association until such transfer has been recorded upon its books.  The
transferee of any share shall take the same subject to all liabilities
to the association and all conditions attaching thereto at the time of
the transfer. If the shares are in the names of two persons and in the
form to be paid to either or the survivor of them, the assignment
thereof by one of such persons shall authorize the association to record
the assignment upon its books or to accept it as collateral for a share
loan made pursuant to subdivision two-a of section three hundred eighty
of this article.

  S 393. Repayment of mortgage loans; application of pledged shares. 1.
For the purpose of making payment on his mortgage loan a member may at
any time, without forfeiture of dividends, transfer from the amount
credited upon the shares pledged by him as security, a sum equal to the
matured value of one or more instalment shares.
  2. Any mortgage loan made by a savings and loan association to a
member may be repaid in whole or in part at any time, but the loan
contract may expressly provide for a period during which prepayment may
not be made without incurring prepayment penalties. When such provision
is contained therein, the loan contract must also expressly provide for
prepayment penalties or no prepayment penalties may be collected when
the loan is prepaid. However, where a loan is secured by mortgage on a
one to six family residence, or is extended to finance the purchase of a
cooperative under subdivision two-a of section three hundred eighty of
this chapter which residence or cooperative is or will be occupied in
whole or in part by the member, prepayment penalties may be imposed only
during the first twelve months from the date the mortgage or cooperative
loan was made and may not exceed:
  (a) Interest for a period of three months on the principal so prepaid;
or
  (b) Interest for the remaining months of the first year on the
principal so prepaid if the prepayment is made at any time within one
year from the date the loan is made.
  The book value of instalment shares pledged as security for any such
loan shall be deducted from the amount of the loan in determining the
amount of principal upon which such interest may be charged.
  3. Whenever any mortgage is foreclosed, the withdrawal value of the
shares transferred and pledged to any such association as security for
the loan shall be applied toward the payment of the indebtedness of the
member and his rights under such shares shall terminate.
  4. In event of the voluntary or involuntary liquidation of any
association or of the reduction of its liability to members pursuant to
the provisions of section three hundred ninety-five of this article, the
holder of shares pledged as security for a mortgage loan pursuant to the
provisions of paragraph (a) of subdivision one of section three hundred
eighty of this article shall be entitled to have the payments on such
shares and the dividends credited or entitled to be credited thereon
applied in reduction of such mortgage loan.
  5. No shares pledged as security for a mortgage loan may be withdrawn
while the mortgage loan against which they are pledged is outstanding.

  S 394. Joint shares; shares of minors; shares in trust.
  3. When shares shall be issued in the name of a minor they shall be
held for the exclusive right and benefit of such minor and free from the
control or lien of all other persons except creditors, and the
withdrawal value thereof shall be paid to the person in whose name the
shares are held. A receipt or acquittance from such minor shall be a
valid and sufficient release and discharge to the association for all
payments made on account of such shares. When shares have been issued to
a parent, guardian or voluntary trustee for a minor the association may
permit the transfer of such shares to the minor by such parent, guardian
or trustee and in the event of the death of such parent, guardian or
trustee the association may transfer and hold such shares for the
exclusive right and benefit of such minor, upon presentation of
satisfactory evidence of such death and upon the surrender of the
certificate, passbook or other proper evidence of the ownership of such
shares.
  4. No association shall be liable to beneficiaries for moneys paid to
their guardians or trustees, unless written notice of limitation upon
the right of such guardians or trustees to withdraw such funds has been
previously filed with the association. The receipt or acquittance of
such guardians or trustees shall be a valid and sufficient release and
discharge to the association for all payments made prior to the receipt
of written notice of such limitation.

  S 395. Alternative provisions relative to payment of interest to
shareholders. Notwithstanding any provision of this chapter to the
contrary the superintendent may adopt such rules or regulations as shall
permit mutual savings and loan associations to pay interest on share
accounts at the option of such association.

  S 396. Change of location; change of designation of principal office;
maintenance of branch office. 1. Any savings and loan association may
make a written application to the superintendent, such application to be
accompanied by an investigation fee of four hundred fifty dollars, for
leave to change its place or one of its places of business to another
place in the state or for leave to change the designation of its
principal office to a branch office and to change the designation of one
of its branch offices to its principal office. The application shall
state the reasons for such proposed change. Such change may be made upon
the written approval of the superintendent. If the superintendent shall
grant his certificate authorizing the change of location, the
association may, upon or after the day specified in the certificate,
remove its property and effects to the location designated therein.
  2. (a) A savings and loan association may open and occupy one or more
branch offices at any location in the state. In addition, a savings and
loan association may open and occupy a branch office or branch offices
in one or more places located without the state of New York.
  (b) Except for the city or village in which its principal office is
located, no branch office may hereafter be opened and occupied pursuant
to paragraph (a) of this subdivision in any city or village with a
population of less than thirty thousand and in which is located the
principal office of a bank, trust company or national banking
association, other than a bank holding company, if such bank holding
company is a banking institution, or a banking subsidiary of a bank
holding company, as such terms "bank holding company", "banking
institution" and "banking subsidiary" are defined in article three-A of
this chapter.
  (c) Before any branch office shall be opened and occupied pursuant to
this subdivision two, the superintendent shall have given his written
approval.
  (d) The term "village" as used in this section shall mean either an
incorporated or an unincorporated village.
  3. (a) A savings and loan association may, if the merger agreement so
provides, maintain as a branch office or branch offices the place or
places of business of any savings and loan association or savings bank
which it has received into itself pursuant to the provisions of this
chapter which were in existence at the time the merger becomes
effective, including any branch office of the merging savings and loan
association or savings bank which has been approved pursuant to
subdivision two (c) of this section or subdivision three of section two
hundred forty of this chapter even if such branch office is not in
operation at the time the merger becomes effective.
  (b) Notwithstanding anything to the contrary in paragraph (a) of this
subdivision, any public accommodation office of a merging savings and
loan association or savings bank, including any such office which has
been approved pursuant to section one hundred ninety-one of this chapter
but which is not in operation at the time said merger becomes effective,
may be maintained by the receiving savings and loan association as a
public accommodation office only.
  3-a. Notwithstanding anything to the contrary in subdivisions two and
three of this section, a savings and loan association may, if so
provided in an agreement made pursuant to section six hundred one-c of
this chapter, maintain as a branch office or offices the place or places
of business of any savings bank or savings and loan association which it
has acquired pursuant to such agreement.

  S 396-a. Electronic facilities. A savings and loan association may
conduct a banking business, at automated teller machines, point-of-sale
terminals, and similar facilities subject to regulations which may be
promulgated by the banking board. Such facilities shall not be deemed to
be branches and shall not be subject to any of the provisions of this
chapter applicable to branches; provided however that notwithstanding
the foregoing, for purposes of paragraph (b) of subdivision two of
section three hundred ninety-six of this chapter, such facilities shall
be deemed to be branches, and such facilities shall be subject to the
terms and conditions of section three hundred ninety-six, and for
purposes of section twenty-eight-b of this chapter, such facilities
shall be deemed to be branches.

  S 396-b. Acceptance of United States currency. No savings and loan
association shall impose a fee, commission or service charge for
accepting for deposit or exchanging for other United States currency any
United States currency provided that any coins are properly rolled and
have the customer`s account number for that savings and loan association
displayed on the coin roll, provided further that no more than ten rolls
of coins in any denomination are presented for deposit or exchange at
any one time.

  S 397. Number, qualifications and disqualifications of directors;
oath; quorum; meeting of directors. 1. The affairs of every savings and
loan association shall be managed and its corporate powers exercised by
a board of directors, in number not less than seven nor more than
fifteen, except that in the case of the merger of two or more savings
and loan associations or one or more savings banks into a savings and
loan association and if the merger agreement so provides, the authorized
number of directors of the resulting association may be increased to not
more than twenty-four, provided that thereafter the number of directors
shall be reduced to fifteen by the elimination of one authorized office
for every two vacancies that occur.
  2. (a) All directors of a savings and loan association must be over
the age of eighteen years and citizens of the United States.
  (b) No person shall be eligible to election as a director of any
savings and loan association
  (1) Unless he is the owner in good faith and in his own right on the
books of the association of shares having a book value of not less than
two hundred dollars and every person elected a director, who, after such
election shall hypothecate, pledge or cease to be the owner in his own
right of such qualifying shares, shall thereby vacate his office, and
shall not be eligible for re-election as a director for a period of one
year from the date of the next succeeding annual meeting. Except as
provided in paragraphs (c) and (d) of this subdivision, every person
legally qualified and duly serving as a director at the time this act
takes effect, may continue as such director until the expiration of the
term for which he was elected or appointed, but shall not be eligible
for re-election unless he shall meet the requirement of this
subdivision.
  (2) If he would, upon his election, become the third salaried
full-time employee of the savings and loan association on its board of
directors and if such board, with his election, would have twelve or
less directors, or if he would, upon his election, become the fourth
salaried full-time employee of the savings and loan association on its
board of directors and if such board, with his election, would have more
than twelve directors; provided, however, that with the written approval
of the superintendent, four salaried full-time employees may serve as
directors of a savings and loan association resulting from the merger of
two or more savings and loan associations or from the merger of one or
more savings banks into a savings and loan association if, immediately
prior to such merger, each such person was a salaried full-time employee
and a director or a trustee of a merging institution.
  No director in office on April first, nineteen hundred sixty-eight,
shall be ineligible for the office of director by reason of the
provisions of subparagraph (2) of paragraph (b) of this subdivision.
  (3) If: (a) Such person`s spouse is a director or one of the five
highest paid salaried officers of the association; (b) Such person or
such person`s spouse is the grandparent, parent, child, grandchild,
brother, sister, aunt, uncle, nephew or niece of a director or one of
the five highest paid salaried officers of the association; or (c) A
director or one of the five highest paid salaried officers of the
association is the spouse of such person`s child, grandchild, brother or
sister.
  No director in office on September first, nineteen hundred seventy-one
shall be ineligible for the office of director by reason of the
provisions of subparagraph three of paragraph (b) of this subdivision.
  (c) The bylaws of a savings and loan association may prescribe a
maximum age beyond which no person shall be eligible for election to the
board of directors, and may prescribe a mandatory retirement age of
seventy-five years or less for directors, subject to the following
limitations:
  (i) No person shall be eligible for initial election as a director
after December thirty-first, nineteen hundred sixty-eight who is seventy
years of age or more; and
  (ii) No person shall continue to serve as a director after December
thirty-first, nineteen hundred seventy-three who is seventy-five years
of age or more, and the office of any such director shall become vacant
on the last day of the month in which such director reaches his
seventy-fifth birthday or on December thirty-first, nineteen hundred
seventy-three, whichever is the later.
  (d) In the case of a savings and loan association which does not adopt
a bylaw prescribing a mandatory retirement age for directors prior to
January first, nineteen hundred sixty-nine, or which does not maintain
thereafter a bylaw prescribing such a mandatory retirement age, the
office of a director of such savings and loan association shall become
vacant on the last day of the month in which such director reaches his
seventieth birthday, or on December thirty-first, nineteen hundred
sixty-eight, whichever is the later.
  3. Any director of a savings and loan association who shall default in
any contractual payment on any obligation to such association for more
than ninety days shall by reason of such default vacate his office as
director and shall not be eligible for re-election for a period of one
year from the date of the next succeeding annual meeting and until such
default is cured.
  4. Every director of any savings and loan association, before entering
upon his duties as a director, shall take an oath that he will, so far
as the duty devolves upon him, diligently and honestly administer the
affairs of such association, and will not knowingly violate, or
willingly permit to be violated, any of the provisions of law applicable
to such association, and that he is the owner in good faith and in his
own right, of shares having a book value of not less than two hundred
dollars standing in his name on the books of the association and that
the same are not hypothecated, or in any way pledged as security for any
loan or debt, and, in case of re-election or re-appointment, that such
shares were not hypothecated, or in any way pledged as security for any
loan or debt during his previous term. Such oath shall be subscribed by
the director making it, certified by an officer authorized by law to
administer oaths, and immediately transmitted to the superintendent.
  5. In the absence of a provision in the by-laws providing for the
number of directors necessary to constitute a quorum, a majority of the
total number of directors which a savings and loan association would
have if there were no vacancies shall constitute a quorum for the
transaction of business or of any specified item of business. Any
reference in this chapter to corporate action to be taken by the board
shall mean such action at a meeting of the board. Except as otherwise
provided in this chapter, the vote of a majority of the directors
present at the time of the vote, if a quorum is present at such time,
shall be the act of the board.
  6. (a) Unless otherwise provided in the by-laws, regular meetings of
the board may be held without notice if the time and place of such
meetings are fixed by the by-laws or the board. Special meetings of the
board shall be held upon notice to the directors.
  (b) The by-laws may prescribe what shall constitute notice of meetings
of the board. A notice, or waiver of notice, need not specify the
purpose of any regular or special meeting of the board, unless required
by the by-laws.
  (c) Notice of a meeting need not be given to any director who submits
a signed waiver of notice whether before or after the meeting or who
attends the meeting without protesting, prior thereto or at its
commencement, the lack of notice to him.
  (d) A majority of the directors present, whether or not a quorum is
present, may adjourn any meeting to another time and place. If the
by-laws so provide, notice of any adjournment of a meeting of the board
to another time or place shall be given to the directors who were not
present at the time of the adjournment and, unless such time and place
are announced at the meeting, to the other directors.
  7. Any officer elected or appointed by the board may be removed by the
board, or his authority suspended by it, with or without cause.  Such
removal or suspension without cause, however, shall be without prejudice
to his contract rights. The election or appointment of an officer shall
not be deemed of itself to create contract rights. This subdivision does
not affect the powers of the superintendent or the banking board under
section forty-one of this chapter.
  8. Upon the petition of any shareholder aggrieved by an election, and
upon notice to the persons declared elected thereat, the savings and
loan association and such other persons as the court may direct, the
supreme court at a special term held within the judicial district where
the office of the savings and loan association is located shall
forthwith hear the proofs and allegations of the parties, and confirm
the election, order a new election, or take such other action as justice
may require.

  S 397-a. Report to directors. The board of directors of every savings
and loan association shall designate, by resolution duly recorded in the
minutes, an officer or officers whose duty it shall be to prepare and
submit to each director present at a regular meeting of the board or to
each member of an executive committee of not less than five members of
such board present at a regular meeting of such committee, a written
report containing such information and meeting such requirements as are
required in the case of reports submitted to the trustees of savings
banks pursuant to section two hundred fifty-two of this chapter and such
regulations as the superintendent may promulgate thereunder or
hereunder. A copy of such report, verified by the affidavit of the
officer or officers charged with the duty of preparing and submitting
such report, together with a list of the directors present at such
meeting, shall be filed with the records of the savings and loan
association within one day after such meeting, and shall be presumptive
evidence of the matters therein stated. The superintendent, by
regulation, may require the preparation and submission of such a report
to directors at dates other than those required herein.

  S 398. Filling of vacancies in board of directors; change in number of
directors. 1. Vacancies in the board of directors of any savings and
loan association not exceeding one-third of the whole number of the
board may be filled by vote of a majority of the remaining directors,
and the directors so elected may hold office until such vacancies are
filled by the members at a special or annual election. When the number
of directors fixed by the by-laws of any savings and loan association is
nine or more, two vacancies may, with the consent of the superintendent,
be left unfilled until the next annual election.  All vacancies not
otherwise provided for in this section shall be filled by election by
the members.
  2. The number of directors may be changed within the limits provided
in subdivision one of section three hundred ninety-seven of this article
by amendment of the by-laws, except where the by-laws provide that the
number of directors shall be not less than seven nor more than fifteen
and also provide the manner in which the number of directors shall be
fixed within the minimum and maximum limits.
  3. Each vacancy in the office of director and each reduction in the
number of directors shall be reported to the superintendent within ten
days after such vacancy occurs or such reduction is effected. Each
election of a director shall be likewise reported together with the
name, address and occupation of the person so elected.

  S 398-a. Forfeiture of office of director. The office of a director of
a savings and loan association shall become vacant whenever he shall
have failed to attend the regular meetings of the board of directors and
also of any committee of the board of which he is a member, for a period
of six successive months, unless excused by the board for such failure
by resolution adopted at the first or second regular meeting of the
board after expiration of such six months period, and entered upon its
minutes. A copy of such resolution shall be transmitted to the
superintendent by the savings and loan association within five days
after its adoption. A director who has vacated his office by reason of
such failure to attend meetings shall not be eligible for re-election as
a director until the expiration of one year from the date of the first
regular meeting of the board at which a resolution could have been
adopted by it, as herein provided, to excuse such failure.

  S 398-b. Duties of directors and officers.
  1. Directors and officers shall discharge the duties of their
respective positions in good faith and with that degree of diligence,
care and skill which prudent men would exercise under similar
circumstances in like positions. In discharging their duties, directors
and officers, when acting in good faith, may rely (a) upon financial
statements of the savings and loan association represented to them to be
correct by the president or the officer of the savings and loan
association having charge of the books of account, or stated in a
wr