§ 121 — Special powers

New York § 121

• Jurisdiction: New York
• Law CCO: Cooperative Corporations
• Art. 7: Provisions As to Credit and Agency Corporations

Text

§ 121. Special powers. Any credit corporation organized under this\nchapter may make loans to members of a cooperative corporation owning in\nwhole or in part the stock of the credit corporation; and no loans shall\nbe otherwise made. No loans shall be made for more than ten years; nor\nfor other than the agricultural, dairy, or horticultural purposes of the\nborrower. In all cases, there shall be a written statement by the\nborrower in the note, collateral agreement or signed application to the\neffect that the loan will be used only for such purposes; and such\nstatement may be relied upon by the credit corporation. The credit\ncorporation may discount or pledge such note with a federal intermediate\ncredit bank, or other banks or banking institutions, with its guaranty\nor endorsement, if required.\n A credit corporation may invest its capital funds in bonds or\nobligations of the United States or of any state or municipality, or\nsuch other bonds as are authorized for investment by a savings bank or\nin federal intermediate credit bank obligations, and may deposit or\nhypothecate such securities with a federal intermediate credit bank, or\nother banks or banking institutions, as security for notes discounted by\nit.\n