§ 215 — Membership

§ 215. Membership. 1. The members of such corporation shall include\nsuch banking organizations, insurance and surety companies as may make\napplication for membership in such corporation, and membership shall\nbecome effective upon the acceptance of such applications by the board\nof directors. Each member shall lend funds to such corporation as and\nwhen called upon by it to do so, but the total amount on loan by any\nmember at any one time shall not exceed the following limit to be\ndetermined as of the time it became a member, and such amount shall\nthereafter be readjusted annually in the event of any change in the base\nof the loan limit of such member; national banking associations,\nstate-chartered commercial banks and trust companies, two per cent of\ncapital stock and surplus; New York savings and loan associations, two\nper cent of the surplus account determined as provided in article ten,\nsection three hundred eighty-five; savings banks, two percent of net\nworth as defined in article six, section two hundred forty-four; stock\ninsurance companies, two per cent of capital and surplus; surety and\ncasualty companies, two per cent of capital and surplus; mutual\ninsurance companies, two per cent of surplus to policy holders; and\ncomparable limits for other banking, loaning and insurance\norganizations, as established by the board of directors; provided,\nhowever, that the total amount on loan by any member at anyone time\nshall not exceed ten million dollars, provided further, however, that\nany member having a loan limit in excess of ten million dollars may\nelect that its total amount on loan at any one time to such corporation\nshall equal said loan limit but in any event shall not exceed twenty\nmillion dollars. In the event that two or more members shall merge or\nconsolidate, the organization as so merged or consolidated shall elect\nthat its total amount on loan to such corporation shall be equal to the\ncombined loan limits of such members determined immediately before the\nmerger or consolidation but in no event to exceed twenty-five million\ndollars at any one time outstanding. All loan limits shall be\nestablished at the thousand dollar nearest to the amount computed on an\nactual basis. All calls of funds which members are committed to lend to\nsuch corporation shall be prorated by such corporation among the members\nin the same proportion that the maximum loan limit of each bears to the\naggregate loan limits of all members of such corporation. Upon six\nmonths' prior written notice to the board of directors, a member of such\ncorporation may withdraw from membership, effective at the end of such\nsix month period and, after the effective date of such withdrawal, such\nmember shall be free of obligations hereunder except those accrued or\ncommitted by such corporation prior to such effective date of\nwithdrawal. Notwithstanding the provisions of any other law, general or\nspecial, the notes or other interest-bearing obligations of such\ncorporation, issued in accordance with and by virtue of this article and\nthe by-laws of such corporation, shall be legal investments for the\nbanking, insurance and surety organizations, and other non-public\nentities who become members of such corporation, up to but in no event\nexceeding the loan limits established herein.\n 2. Other entities may make application for membership in such\ncorporation according to such terms and criteria as established by the\nboard of directors; except that such other entities may not include\npublic benefit corporations established under the laws of the state of\nNew York.\n