N.Y. Banking Law § 285 Powers Which May Be Granted to Trustee

• Library: New York Statutes
• Edition: 2023
• Currency: Current through 2023 NY Law Chapter 777
• Year: 2023
• Citation: N.Y. Banking Law § 285

In addition to such other powers as may be set forth in the agreement not inconsistent herewith or with the purposes of the fund, the trustee shall have such of the following powers as the agreement may provide:

1. To insure in whole or in part the deposits in member banks, subject to such terms and conditions as the agreement may provide.

2. To buy any assets owned by any member bank at the book value thereof notwithstanding such value may exceed the market value thereof, or such other value as the trustee may elect either with or without an agreement providing for the repurchase of the same at such price or value and at such time and subject to such conditions as may be agreed upon by the trustee in its discretion and to make loans or advances to any member bank upon such terms and conditions as may seem desirable and with such security as the trustee may determine or without security; in any agreement of repurchase or repayment it may be provided that the savings bank receiving such loan or advance or making such sale of assets may not be obligated to repay the same or repurchase such assets until the superintendent of financial services shall certify that such savings bank is in a safe and sound condition to make such repurchase or repayment.

3. To deposit all or any part of any moneys in said fund in any savings bank or savings banks and such savings bank or savings banks may receive the same notwithstanding the provisions of section two hundred thirty-seven of this act and/or in any one or more banks or trust companies organized under the laws of the state of New York selected by the trustee with the approval of the superintendent, and such deposits in case of suspension or liquidation of any such depositary other than a savings bank shall have the same priority as deposits of savings banks pursuant to law. In the event of the liquidation of a savings bank which is such depositary, such deposits shall be subordinate to the claims of the depositors in such bank but prior to all other claims except those of the state of New York or of the United States.

4. In addition to any other uses authorized herein and provided in the agreement, to invest and reinvest the fund in such securities and property as are legal for investment by savings banks subject to those limitations applicable to such investments in the case of savings banks.

5. To make contributions to the surplus fund of any member bank upon such terms and conditions for the use and the repayment thereof and evidenced in such manner as the superintendent of financial services may approve, and such savings bank may make such repayment as such agreement may provide notwithstanding any provisions of law; but no such agreement shall require such repayment except if, as and when the surplus and surplus fund of such savings bank shall be not less than five per centum of the amount due its depositors nor shall any such agreement require any payment on account of such contribution in such an amount as to reduce the surplus and surplus fund of such savings bank below five per centum of the amount owed its depositors. The agreement may provide the manner in which the surplus and surplus fund shall be computed for the purpose of this subdivision. Such contributions shall not constitute a liability of such member bank except as herein provided.