§ 98 — Power to take and hold real estate; restrictions

§ 98. Power to take and hold real estate; restrictions. 1. A bank or\ntrust company may purchase, hold, lease and convey real property as\nfollows:\n (a) A plot whereon there is or may be erected a building suitable for\nthe convenient transaction of its business, from portions of which not\nrequired for its own use a revenue may be derived, and a plot whereon\nparking accommodations are, or are to be, provided, with or without\ncharge, primarily for its customers or employees or both, and a building\nor a portion or portions thereof for use by the bank or trust company in\nits business, provided that the aggregate of all investments of any bank\nor trust company in such plots and buildings and in a leased building or\na portion or portions thereof or in the stock, debentures or other\nobligations of any corporation holding such plots or buildings and of\nall loans to or upon the security of the stock of any such corporation\nshall not exceed forty per centum of the aggregate of the capital stock,\nsurplus fund and undivided profits of such bank or trust company, except\nwith the approval of the superintendent. Any bank or trust company\nhaving, prior to April twenty-third, nineteen hundred thirty-four, made\nloans and investments in excess of the limitations prescribed by this\nparagraph may retain any such loans and investments notwithstanding such\nlimitations.\n (b) Such as shall be conveyed to it in satisfaction of debts\npreviously contracted in the course of its business.\n (c) Such as it shall purchase at sales under judgments, decrees or\nmortgages held by it.\n (d) Such purchase, lease, conveyance or other acquisition or sale of\nreal property which is located outside the United States, its\nterritories and possessions, and which is used principally as the\nresidence of one or more directors, officers, or employees of the bank\nor trust company as may be specifically approved by the superintendent.\n (e) A whole or part interest in a "project", as defined in the New\nYork state urban development corporation act, pursuant to sections six\nor eight of such act. An investment by a bank or trust company in a\nsingle project shall not exceed one per centum of the assets or fifteen\nper centum of the combined capital stock, surplus fund and undivided\nprofits of such bank or trust company, whichever is less, and the\naggregate of all investments of a bank or trust company in such projects\nand investments in securities of any "subsidiary" of the New York state\nurban development corporation, as defined in the New York state urban\ndevelopment corporation act, shall not exceed five per centum of the\nassets or seventy-five per centum of the combined capital stock, surplus\nfund and undivided profits of such bank or trust company, whichever is\nless.\n 2. All real estate purchased by any bank or trust company or taken by\nit in settlement of debts due it, shall be conveyed to it in its name\nor, subject to such regulations and restrictions as the superintendent\nof financial services finds to be necessary and proper, may be taken in\nthe name of a duly authorized nominee. All such conveyances shall be\nimmediately recorded or registered in the office of the proper recording\nofficer of the county in which such real estate is located.\n