§ 307 — Membership

New York § 307

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 7: Mortgage Facilities Corporation

Text

§ 307. Membership. 1. The members of such corporation shall consist of\nsuch banking organizations, insurance and surety companies, as may make\napplication for membership in such corporation, and membership shall\nbecome effective upon the acceptance of such applications by the\ntemporary board of directors or the permanent board of directors, as the\ncase may be. Each member shall lend funds to the corporation as and when\ncalled upon by it to do so, pursuant to subdivision two of this section,\nbut the total amount on loan by any member at any one time shall not\nexceed the following limits to be determined as of the date it became a\nmember, and such amount shall thereafter be readjusted annually in the\nevent of any change in the base of the loan limit of such member:\ncommercial banks, industrial banks and trust companies, one per centum\nof capital and surplus; private bankers, one per centum of capital;\nsavings banks, one per centum of surplus fund; savings and loan\nassociations, one per centum of surplus; stock insurance companies, one\nper centum of capital and surplus; surety and casualty companies, one\nper centum of capital and surplus; mutual insurance companies, one per\ncentum of guaranty funds or of surplus, whichever is applicable; and\ncomparable limits for other banking, lending and insurance\norganizations, as established by the board of directors; provided,\nhowever, that the total amount on loan by any member at any one time\nshall not exceed two hundred fifty thousand dollars; provided, however,\nthat in the case of banking organizations and in the case of insurance\nand surety companies the superintendent of financial services may\nauthorize a member to lend to the corporation an amount in excess of two\nhundred fifty thousand dollars. All loan limits shall be established at\nthe thousand dollar nearest to the amount computed on an actual basis.\nAll calls of funds which members are committed to lend to such\ncorporation shall be prorated by such corporation among the members in\nthe same proportion that the maximum loan limit of each bears to the\naggregate loan limits of all members of such corporation. Upon six\nmonths' prior written notice to the board of directors, a member of such\ncorporation may withdraw from membership, effective at the end of such\nsix-month period and, after the effective date of such withdrawal, such\nmember shall be free of obligations hereunder except those accrued or\ncommitted by such corporation prior to such effective date of\nwithdrawal. Notwithstanding the provisions of any other law, general or\nspecial, the notes or other interest-bearing obligations of such\ncorporation, issued in accordance with and by virtue of this article and\nthe by-laws of such corporation, shall be legal investments for the\nbanking, insurance and surety organizations who become members of such\ncorporations, up to but in no event exceeding the loan limits\nestablished herein.\n 2. The board of directors of the corporation may, on thirty days'\nwritten notice to its members, make a call of all or any part of the\nfunds which such members are committed to lend pursuant to subdivision\none of this section. The debentures or evidences of debt of the\ncorporation issued pursuant to the provisions of this article or by-laws\nmay contain such terms and provisions as the board of directors of the\ncorporation shall deem advisable, including, but not limited to\nprovisions concerning interest rates, maturities, sinking funds,\nredemptions and refundings.\n