§ 4504 — Amendments to charter, constitution and by-laws; waiver of provisions

New York § 4504

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 45: Fraternal Benefit Societies

Text

§ 4504. Amendments to charter, constitution and by-laws; waiver of\nprovisions. (a) A domestic society may amend its charter and by-laws by\na majority vote at any regular meeting or special meeting (called for\nthat purpose) of its supreme governing body, but no such amendment shall\ntake effect unless and until filed with the superintendent and approved\nby him. The superintendent may approve any such amendment if he finds\nthat it has been duly adopted and is not inconsistent with any\nrequirement of the law or with the character, objects and purposes of\nsuch society.\n (b) A domestic society may amend its constitution and by-laws, in\naccordance with the provisions of its constitution, by the action of its\nsupreme governing body at any regular meeting or special meeting\nthereof, or, if its constitution so provides, by referendum. Such\nreferendum may be held, in accordance with the provisions of the\nconstitution, by the vote of the voting members or by the vote of\ndelegates or representatives of voting members or by the vote of local\nlodges or branches; but no such amendment shall take effect unless,\nwithin six months from the date of submission thereof, a majority of all\nof the members of such society entitled to vote shall have signified\ntheir consent to such amendment. Such amendment to the constitution or\nby-laws shall be filed with the superintendent within not more than\nninety days after the adoption thereof or, in an appropriate case, after\nsuch consent of the members. Amendments to the constitution and by-laws\nmay be adopted by the board of directors whenever such amendments, in\nthe opinion of the board, are necessary to meet the requirements of the\nthis chapter, but such amendments shall be submitted for ratification by\nthe supreme governing body of the society at its next regular meeting,\nor at any special meeting thereof, or if its constitution so provides by\nreferendum and shall be filed with the superintendent within ninety days\nafter such ratification.\n (c) Within ninety days from the approval by the superintendent\nrequired by subsection (a) hereof, and within ninety days from the\nfiling with the superintendent required by subsection (b) hereof, all\nsuch amendments, or a synopsis thereof, shall be furnished to all\nmembers of the society either by mail or by publication in full in the\nofficial organ of the society.\n (d) Every authorized foreign or alien society shall file a certified\ncopy of every amendment to its charter, constitution, and by-laws with\nthe superintendent within not more than ninety days after the same takes\neffect; and every such society shall, within ninety days from the filing\nthereof, furnish to all members of the society in this state, a copy of\nall amendments, or a synopsis thereof, either by mail or by publication\nin full in the official organ of the society.\n (e) If the superintendent finds after notice and hearing, that any\nauthorized society has wilfully violated any of the foregoing provisions\nof this section relating to the filing of amendments to its charter,\nconstitution, and by-laws, he may, in lieu of any other penalty provided\nby law, order such society to pay to the people of this state a penalty\nin a sum not exceeding five hundred dollars for each such offense, and\nfailure of any such society to pay such penalty within thirty days after\nthe making of such order, unless such order is suspended by an order of\na court of competent jurisdiction, shall constitute a violation of the\nprovisions of this chapter.\n (f) Unless authorized by express provisions in the constitution and\nby-laws of the society, no subordinate lodge or branch and no officer or\nmember of any authorized society shall have power or authority on behalf\nof the society to waive or modify any of the provisions of the\nconstitution or by-laws of the society or of any certificate or other\nevidence of insurance contract issued by such society, nor to waive any\nviolation, forfeiture or default thereof.\n (g) Every authorized society shall provide in its constitution or\nby-laws and in its certificates that if its reserves as to any class of\ncertificates, other than those portions of any certificate that provide\nvariable benefits based on the experience of a separate account, become\nimpaired, its board of directors may require that there shall be paid by\nthe member to the society the amount of the member's equitable\nproportion of such deficiency as ascertained by its board and that if\nthe payment be not made it shall stand as an indebtedness against the\ncertificate and draw interest not to exceed five percent per annum\ncompounded annually, or the equivalent effective rate of interest if\npayable in advance, or in lieu thereof, or in combination therewith, the\nmember may consent to a reduction of the corresponding insurance benefit\nproportionate to the value of the additional contributions.\n