§ 143 — Limitations on directors, officers and employees

§ 143. Limitations on directors, officers and employees.\n 1. Every director of a bank holding company who is contingently\nobligated on any loan or other extension of credit made by a banking\nsubsidiary of the bank holding company of which he is a member of the\nboard of directors to any other individual, partnership, unincorporated\nassociation or corporation, shall file a statement of his financial\ncondition with such bank holding company at least once in each year and\nat such other times as the superintendent may require. This subdivision\ntwo shall not apply with respect to directors whose obligations are\nsecured by collateral having an ascertained market value of at least\nfifteen per centum more than the amount of such obligations.\n 2. (a) No executive officer of a bank holding company may be an\nexecutive officer or director of another bank holding company or of a\nbank or trust company, savings bank, or savings and loan association, or\nof a national bank, federal savings bank or federal savings association,\nthe principal office of which is located in this state, or of a foreign\nbanking corporation maintaining a branch in this state, unless\npermission therefor has been granted by the superintendent of financial\nservices pursuant to the provisions of paragraph (b) of this\nsubdivision, except that an executive officer of a bank holding company\nmay be (i) an executive officer and (ii) a director of one or more\nbanking institutions or bank holding companies which are subsidiaries of\nsuch bank holding company.\n (b) The superintendent shall have the power to determine by regulation\nwho shall be considered, under the provisions of this subdivision, to be\nan executive officer, and by regulation to grant permission to an\nexecutive officer of a bank holding company to be at the same time an\nexecutive officer, director or trustee or both an executive officer and\na director or a trustee of another bank holding company or of a bank or\ntrust company, savings bank, savings and loan association, national bank\nlocated in this state, federal savings and loan association located in\nthis state or foreign banking corporation maintaining a branch in this\nstate. Such permission may be granted only if in the judgment of the\nsuperintendent such service by the executive officer will be consistent\nwith the policy of the state of New York as declared in section ten of\nthis chapter. The superintendent shall have the power to revoke such\npermission whenever the superintendent finds, after a reasonable notice\nand an opportunity to be heard, that the public interest requires such\nrevocation.\n (c) For the purposes of this subdivision, the terms "subsidiary",\n"banking institution" and "bank holding company" shall each be given the\nsame meaning as is contained in their respective definition in section\none hundred forty-one of this article, except that the definition of the\nterm "banking institution" is modified to include national bank, federal\nsavings bank or federal savings association, the principal office of\nwhich institution is located in this state, and a foreign banking\ncorporation maintaining a branch in this state.\n (d) All other restrictions and limitations imposed by this chapter on\nexecutive officers and directors of bank holding companies shall\ncontinue in effect.\n