§ 420-A — State savings and loan insurance fund

New York § 420-A

• Jurisdiction: New York
• Law BNK: Banking
• Art. 10-A: State Savings and Loan Insurance Fund

Text

§ 420-a. State savings and loan insurance fund. 1. There is hereby\ncreated the "state savings and loan insurance fund". The fund shall be a\ncorporate governmental agency constituting a public benefit corporation.\nIt shall have the powers and privileges of a corporation, and under its\ncorporate name all of its business shall be transacted, all funds\ninvested, all warrants for money drawn and payments made, and all cash\nand securities and other personal property shall be held.\n 2. The fund shall be administered by six trustees, four of whom shall\nbe appointed by the governor with the advice and consent of the senate,\none shall be elected by the insured members and one shall be elected by\nthe board of directors of the Savings and Loan Bank of the State of New\nYork from their own number. The trustees of the fund first appointed by\nthe governor shall serve for terms ending December thirty-first in\nnineteen hundred sixty-eight, nineteen hundred sixty-nine, nineteen\nhundred seventy and nineteen hundred seventy-one, respectively. Persons\nappointed for full terms as their successors shall serve for four years\neach commencing as of January first next following the year in which the\nterm of his predecessor expired. The trustee elected by the insured\nmembers shall serve for a term ending on December thirty-first, nineteen\nhundred sixty-nine and the trustee elected by the board of directors of\nthe savings and loan bank of the state of New York shall serve for a\nterm ending on December thirty-first, nineteen hundred seventy-one.\nPersons elected for full terms as their successors shall serve for four\nyears each commencing as of January first next following the year in\nwhich the term of his predecessor expired. In the event of a vacancy\noccurring in the office of an appointed trustee by death, resignation or\notherwise, the governor shall appoint a successor in the same manner as\nan original appointment to serve for the balance of the unexpired term.\nIf, for the previously stated reasons, a vacancy occurs in the office of\nan elected trustee, said vacancy shall be filled for the unexpired term\nby special election.\n 3. The trustees of the fund shall serve without salary, but each\ntrustee shall be entitled to reimbursement for his actual and necessary\nexpenses incurred in the performance of his official duties and to a fee\nof one hundred dollars per day when rendering service as such member,\nprovided that the aggregate amount of such fees payable to any one\ntrustee in any one fiscal year shall not exceed the sum of five thousand\ndollars.\n 4. The trustees of the fund may engage in private employment, or in a\nprofession or business, subject to the limitations contained in sections\nseventy-three and seventy-four of the public officers law. The fund\nshall, for the purposes of such sections, be a "state agency", and the\ntrustees thereof shall be "officers" of the agency for the purposes of\nsaid sections.\n 5. Notwithstanding any inconsistent provisions of law, general,\nspecial or local, no officer or employee of the state, or of any civil\ndivision thereof, shall be deemed to have forfeited or shall forfeit his\noffice or employment by reason of his acceptance of appointment as a\ntrustee, officer or agent of the fund; provided, however, that a\ntrustee, officer or agent who holds such other public office or\nemployment shall receive no additional compensation, fee or allowance\nfor services rendered pursuant to this article, but shall be entitled to\nreimbursement for his actual and necessary expenses incurred in the\nperformance of such services.\n 6. The governor may remove any trustee for inefficiency, neglect of\nduty or misconduct in office after giving him a copy of the charges\nagainst him and an opportunity to be heard, in person or by counsel, in\nhis defense, upon not less than ten days notice. If any trustee shall be\nremoved, the governor shall file with the secretary of state a complete\nstatement of charges made against the trustee, and his findings thereon,\ntogether with a complete record of the proceedings.\n 7. The chairman of the board of trustees shall be designated by the\ngovernor. He shall preside over all meetings of the trustees and shall\nhave such other duties as the trustees may direct. A vice-chairman who\nshall preside over all meetings of the fund in the absence of the\nchairman and who shall have such other duties as the trustees may direct\nmay be designated from time to time by the trustees from among the other\ntrustees.\n 8. The powers of the fund shall be vested in and exercised by no less\nthan four of the trustees then in office. The fund may delegate to one\nor more of its trustees, or officers, agents or employees, such powers\nand duties as the trustees may deem proper, provided, however, that all\ncontracts involving an estimated expense of ten thousand dollars or more\nshall be approved prior to execution by no less than four trustees of\nthe fund.\n 9. The fund shall be subject to an examination by the superintendent\nof financial services at least once in each calendar year.\n 10. Within three days, Saturdays, Sundays and holidays excepted, after\neach meeting of the trustees of the fund, the secretary or other officer\nof the fund in charge of the minutes of the proceedings of the trustees\nshall transmit to the superintendent of financial services at his office\nin Albany three certified copies of the minutes of every meeting of the\ntrustees for his information.\n 11. The fund shall become operative when the total aggregate of the\nsavings deposits of its members amount to five hundred million dollars\nor more and shall continue so long as it shall have bonds, insurance or\nother obligations outstanding and until its existence shall be\nterminated by law. Upon the termination of the existence of the fund,\nall its rights and properties shall pass to and be vested in the state.\n 12. Before becoming operative the fund shall adopt, and obtain the\napproval of the superintendent, of by-laws for its organization,\nmanagement and operations. Any amendment of the by-laws shall require\nthe prior approval of the superintendent.\n