§ 285 — Powers which may be granted to trustee

§ 285. Powers which may be granted to trustee. In addition to such\nother powers as may be set forth in the agreement not inconsistent\nherewith or with the purposes of the fund, the trustee shall have such\nof the following powers as the agreement may provide:\n 1. To insure in whole or in part the deposits in member banks, subject\nto such terms and conditions as the agreement may provide.\n 2. To buy any assets owned by any member bank at the book value\nthereof notwithstanding such value may exceed the market value thereof,\nor such other value as the trustee may elect either with or without an\nagreement providing for the repurchase of the same at such price or\nvalue and at such time and subject to such conditions as may be agreed\nupon by the trustee in its discretion and to make loans or advances to\nany member bank upon such terms and conditions as may seem desirable and\nwith such security as the trustee may determine or without security; in\nany agreement of repurchase or repayment it may be provided that the\nsavings bank receiving such loan or advance or making such sale of\nassets may not be obligated to repay the same or repurchase such assets\nuntil the superintendent of financial services shall certify that such\nsavings bank is in a safe and sound condition to make such repurchase or\nrepayment.\n 3. To deposit all or any part of any moneys in said fund in any\nsavings bank or savings banks and such savings bank or savings banks may\nreceive the same notwithstanding the provisions of section two hundred\nthirty-seven of this act and/or in any one or more banks or trust\ncompanies organized under the laws of the state of New York selected by\nthe trustee with the approval of the superintendent, and such deposits\nin case of suspension or liquidation of any such depositary other than a\nsavings bank shall have the same priority as deposits of savings banks\npursuant to law. In the event of the liquidation of a savings bank which\nis such depositary, such deposits shall be subordinate to the claims of\nthe depositors in such bank but prior to all other claims except those\nof the state of New York or of the United States.\n 4. In addition to any other uses authorized herein and provided in the\nagreement, to invest and reinvest the fund in such securities and\nproperty as are legal for investment by savings banks subject to those\nlimitations applicable to such investments in the case of savings banks.\n 5. To make contributions to the surplus fund of any member bank upon\nsuch terms and conditions for the use and the repayment thereof and\nevidenced in such manner as the superintendent of financial services may\napprove, and such savings bank may make such repayment as such agreement\nmay provide notwithstanding any provisions of law; but no such agreement\nshall require such repayment except if, as and when the surplus and\nsurplus fund of such savings bank shall be not less than five per centum\nof the amount due its depositors nor shall any such agreement require\nany payment on account of such contribution in such an amount as to\nreduce the surplus and surplus fund of such savings bank below five per\ncentum of the amount owed its depositors. The agreement may provide the\nmanner in which the surplus and surplus fund shall be computed for the\npurpose of this subdivision. Such contributions shall not constitute a\nliability of such member bank except as herein provided.\n 6. If it shall appear by certificate of the superintendent of\nfinancial services filed in his office, that any member bank to which\nthe trustee with the approval of the superintendent has made any loan or\nadvance, or to the surplus fund of which it has made a contribution, or\nfrom which the trustee has purchased any asset at a price in excess of\nthe market value thereof, would but for such loan, advance, contribution\nor purchase be in such condition that the superintendent might take\npossession of the business and property of the same pursuant to law, or\nthat any such member bank to which the trustee with the approval of the\nsuperintendent has made any loan or advance, or to the surplus fund of\nwhich it has made a contribution, or from which the trustee has\npurchased any asset at a price in excess of the market value thereof, or\nthe deposits in which have been insured by the fund in whole or in part\nshall have committed such an act or is in such condition that the\nsuperintendent might take possession of the business and property of the\nsame pursuant to law, the trustee shall have the right if it so elects,\nand in such case the superintendent, on such conditions and subject to\nsuch rules and regulations as he shall prescribe, shall permit the\ntrustee to take possession and control forthwith of the property and\nbusiness of such bank and operate and/or liquidate the same. The trustee\nmay, while carrying on such business, pay to such bank out of the moneys\nin or available to the fund such sums as the agreement may authorize as\nthe trustee deems necessary for the protection of the bank's depositors.\n 7. At any time after the trustee has taken over the control,\npossession and operation of any savings bank, as provided in subdivision\nsix hereof, it may, with the approval of the superintendent, turn back\nthe control, possession and operation thereof to such bank which may\ncontinue or resume business, provided the moneys advanced from the fund\nhave been repaid or satisfactory arrangements made for the repayment\nthereof and the superintendent has certified such bank to be in a safe\nand sound condition or upon such other conditions authorized in the\nagreement as may seem proper to the trustee.\n 8. The trustee, with the approval of the superintendent of financial\nservices may at any time after it has taken over the control, possession\nand operation of any bank under subdivision six hereof discontinue the\nbusiness of such bank and proceed to liquidate its affairs. The trustee\nmay use the assets in the fund to pay to the depositors of any such\nsavings bank out of moneys in or available to the fund the excess, if\nany, or such portion thereof as the agreement may provide, of the full\namount of their respective deposits over the dividends received therefor\non such liquidation.\n 9. To carry out the provisions aforesaid, the trustee shall have and\nmay exercise all the rights, powers, privileges and franchises of any\nsavings bank taken over by it, and at any time, with the approval of the\nsuperintendent of financial services, to suspend the authority of the\ntrustees of any savings bank and exercise the powers and duties of such\ntrustees, and in addition to the foregoing, in the event it shall\noperate and/or liquidate any such savings bank it shall have and may\nexercise all of the rights and powers which the superintendent of\nfinancial services would have pursuant to law in connection with the\noperation and/or liquidation of such bank and be subject to the same\nduties and supervision. The trustee, or any duly authorized agent of the\ntrustee, in connection with the operation and/or liquidation of any such\nbank may execute, acknowledge and deliver in the name of such bank, and\nunder its seal, or may authorize any officer or officers of any such\nbank to execute, acknowledge and deliver in the name of such bank and\nunder its seal any instrument affecting or relating to the property,\nbusiness or affairs of such bank, and in the event any such officer is\nso authorized by the trustee, such authorization shall be deemed the\nauthorization of the board of trustees of such bank and he may swear or\naffirm the usual certificate of acknowledgment to the effect that he\nexecuted the same and such seal was affixed by the authority of the\nboard of trustees thereof. Any instrument executed in any manner\nprovided herein shall be valid and effectual for all purposes.\n 10. To borrow money for the purpose of the fund and pledge any assets\nin the fund as security for such loans, and in connection therewith may\nrehypothecate any securities or collateral pledged to it by any savings\nbank.\n 11. To collect, or enforce by legal proceedings if necessary, the\ncontributions for which each member bank is liable pursuant to the\nprovisions of the agreement, or any debt or obligation due to the fund\nor mortgage or lien held by the fund.\n