§ 234 — General powers

§ 234. General powers. Every savings bank shall have, subject to the\nrestrictions and limitations contained in this chapter, the following\npowers:\n 1. To receive and repay deposits, including demand deposits; invest\nits funds; pay interest on deposits; and exercise all such incidental\npowers as shall be necessary to conduct the business of a savings bank,\nincluding, subject to regulation by the superintendent of financial\nservices, the power to charge for maintaining a demand deposit account\nor for honoring checks drawn on or accepting deposits made to such an\naccount.\n 1-a. Subject to such regulations and restrictions as the\nsuperintendent of financial services finds to be necessary and proper,\nto contract to receive time deposits, including deposits upon which the\nsavings bank contracts to pay interest at a fixed rate.\n 2. To issue transferable certificates showing the amounts contributed\nto the surplus fund by any incorporator or trustee. Each such\ncertificate shall contain a statement that the amount represented by it\ndoes not constitute a liability of such savings bank, except as provided\nin this article.\n 3. To acquire, hold, lease and convey real property.\n 4. To improve real property acquired by it when such improvements are\nnecessary to protect the interest of the savings bank therein and to\nfacilitate the sale thereof.\n 5. To borrow money for the purpose of repaying depositors and to\npledge or hypothecate its assets as collateral for any such loans.\n 5-a. Subject to such regulations and restrictions as the\nsuperintendent of financial services finds to be necessary and proper,\nto borrow money for purposes other than that of repaying depositors and\nto pledge or hypothecate its assets as collateral for any such loans.\n 5-b. Subject to such regulations and restrictions as the\nsuperintendent of financial services finds to be necessary and proper\nand notwithstanding any other provisions of law, to issue notes, bonds,\ndebentures, or other obligations or other securities subordinated to\ndeposits in such savings bank; provided that, unless the superintendent\nhas given prior approval otherwise, the aggregate principal amount\nthereof at the time of issuance shall not exceed twenty-five per cent of\nthe net worth of such savings bank, exclusive of all such notes, bonds,\ndebentures, or other obligations or other securities. The proceeds or\nother consideration derived by a savings bank from the issuance pursuant\nto this subdivision of any such notes, bonds, debentures, or other\nobligations or other securities shall be deemed for purposes of this\nchapter to constitute a part of the net worth of such savings bank.\n 5-c. To accept moneys deposited by the comptroller or the commissioner\nof taxation and finance as linked deposits pursuant to article fifteen\nof the state finance law and to enter into agreements, pledge assets or\nfurnish other security, including, but not limited to, an irrevocable\nletter of credit issued by a federal home loan bank, satisfactory in\nform and amount to such authorized depositor, for the repayment of such\nmoneys.\n 5-d. To accept moneys deposited by the comptroller or the commissioner\nof taxation and finance in a branch located in a banking development\ndistrict established pursuant to section ninety-six-d of this chapter\nand to enter into agreements, pledge assets or furnish other security,\nincluding, but not limited to an irrevocable letter of credit issued by\na federal home loan bank, satisfactory in form and amount to such\nauthorized depositor, for the repayment of such moneys.\n 5-e. To accept moneys deposited by the New York state environmental\nfacilities corporation as linked deposits pursuant to article sixteen of\nthe state finance law and to enter into agreements, pledge assets or\nfurnish other security, satisfactory in form and amount to the New York\nstate environmental facilities corporation, for the repayment of such\nmoneys.\n 6. To collect promissory notes or bills of exchange.\n 7. To receive as depositary, or as bailee for safekeeping, obligations\nof the United States government.\n 8. To receive money for transmission and to transmit the same.\n 9. To engage in the safe deposit business by renting safe deposit\nboxes in which to keep personal property and papers of any kind.\n 10. To act as agent in the sale of travelers' checks.\n 11. To assume and discharge such obligations to Federal Deposit\nInsurance Corporation as may be necessary or required for the purpose of\nmaintaining deposit insurance in such corporation.\n 12. To become a member of a federal reserve bank and to have and\nexercise all powers, not in conflict with the laws of this state, which\nare conferred upon any such member by the federal reserve act. Such\nsavings bank and its trustees and officers shall continue to be subject,\nhowever, to all liabilities and duties imposed upon them by any law of\nthis state and to all the provisions of this chapter relating to savings\nbanks.\n 13. To become a member of a federal home loan bank and to have and to\nexercise all powers, not in conflict with the laws of this state, which\nare conferred upon any such member by the federal home loan bank act.\nSuch savings bank and its trustees and officers shall continue to be\nsubject, however, to all liabilities and duties imposed upon them by any\nlaw of this state and to all provisions of this chapter relating to\nsavings banks.\n 15. To perform services for the Federal National Mortgage Association\ncreated under the housing act of nineteen hundred fifty-four, as amended\nfrom time to time, and to sell or assign mortgages to such association\nand in connection therewith to make capital contributions thereto,\npurchase stock thereof, and do any and all other acts which under the\nlaws and regulations applicable to such sales may be required to enable\nsuch sales to be effected.\n 16. To service mortgages for others, and to render investment advice\nincidental to the purchase of and investment in mortgages by others,\nprovided, however, that the superintendent of financial services shall\nhave power to prescribe, by specific or general regulation, the extent\nto which and the conditions upon which such mortgages may be serviced\nand such investment advice may be rendered.\n 17. To sue and to be sued in all courts and to participate in actions\nand proceedings, whether judicial, arbitrative or otherwise, in like\ncases as natural persons.\n 18. To have a corporate seal, and to alter such seal at pleasure, and\nto use it by causing it or a facsimile to be affixed or impressed or\nreproduced in any other manner.\n 19. To make donations, irrespective of corporate benefit, for the\npublic welfare or for community fund, hospital, charitable, educational,\nscientific, civic or similar purposes, and in time of war or other\nnational emergency in aid thereof.\n 20. To elect or appoint officers, employees, and other agents of the\nsavings bank, define their duties, fix their compensation, and to indem-\nnify corporate personnel.\n 21. To execute and deliver such guaranties as may be incidental or\nusual in the transfer of investment securities.\n 22. To have perpetual existence.\n 23. To have and exercise all other powers necessary or appropriate in\nconducting the business of the savings bank.\n 24. Subject to such regulations as the superintendent of financial\nservices finds to be necessary and proper, and notwithstanding any other\nprovision of law, to accept federal tax and loan accounts, the balances\nof which are payable on demand without previous notice of intended\nwithdrawal and to pledge collateral to secure such accounts.\n 25. Subject to any limitations or other specific provisions contained\nin this chapter or any other statute of this state or its organization\ncertificate, and as shall be appropriate in conducting the business of\nthe corporation, and only for such activities which are authorized by\nthis chapter for savings banks: to be a promoter, partner, member,\nassociate or manager of other business enterprises or ventures, or to\nthe extent permitted in any other jurisdiction to be an incorporator of\nother corporations of any type or kind.\n 26. To engage in a "savings promotion" in accordance with section\nnine-v of this chapter and subject to any regulations promulgated by the\nsuperintendent. The superintendent shall consult with the state gaming\ncommission before proposing any such regulations or any amendments\nthereto. Such regulations shall ensure that:\n a. no participant in a savings promotion is charged any fee that would\nconstitute, directly or indirectly, consideration for participation in\nsuch savings promotion; and\n b. no participant in a savings promotion foregoes, directly or\nindirectly, any interest that would constitute consideration for\nparticipation in such savings promotion.\n