§ 509. Restrictions on powers of investment companies. An investment\ncompany shall not:\n 1. Exercise within this state the powers conferred by subdivision two\nof section five hundred eight of this chapter, unless it shall have a\npaid-up capital stock of at least two million dollars.\n 2. Deposit any of its funds with any other moneyed corporation unless\nsuch other corporation has been designated as such depositary by a vote\nof a majority of the directors of the investment company, exclusive of\nany director who is an officer, director or trustee of the depositary so\ndesignated; provided, however, that this limitation shall not apply to\nthe deposit of funds by an investment company with another moneyed\ncorporation, which owns all or a majority of the capital stock of such\ninve
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§ 509. Restrictions on powers of investment companies. An investment\ncompany shall not:\n 1. Exercise within this state the powers conferred by subdivision two\nof section five hundred eight of this chapter, unless it shall have a\npaid-up capital stock of at least two million dollars.\n 2. Deposit any of its funds with any other moneyed corporation unless\nsuch other corporation has been designated as such depositary by a vote\nof a majority of the directors of the investment company, exclusive of\nany director who is an officer, director or trustee of the depositary so\ndesignated; provided, however, that this limitation shall not apply to\nthe deposit of funds by an investment company with another moneyed\ncorporation, which owns all or a majority of the capital stock of such\ninvestment company.\n 3. Be the holder of any shares of its own capital stock unless such\nstock shall have been taken to prevent loss upon a debt previously\ncontracted in good faith, and stock so acquired shall, within six months\nfrom the time of its acquisition, be sold or disposed of at public or\nprivate sale; nor shall it, either directly or indirectly, make any\ndiscount to any person for the purpose of enabling him to pay for or\nhold shares of its stock either subscribed for or purchased by him. Any\ninvestment company making any such discount shall forfeit to the people\nof the state twice the amount of such discount.\n 4. Except as provided in section five hundred eight of this article,\nengage in the business of receiving deposits; provided, however, that\nnothing contained in this article shall prevent an investment company\nfrom maintaining for the account of others credit balances incidental\nto, or arising out of, the exercise of its lawful powers, but the\nsuperintendent of financial services shall have power to prescribe, by\nspecific or general regulation, the extent to which, and the conditions\nupon which, such credit balances may be established, maintained and paid\nout.\n