N.Y. BNK Law § 235 — New York Code / Act BNK / Article 6 / Section 235
Investment of funds
Status: in_force

§ 235. Investment of funds. A savings bank may invest in the following\nproperty and securities and no others:\n  1. Obligations of the United States, or those for which the faith of\nthe United States is pledged to provide for the payment of the interest\nand principal, or those for which annual contributions to be paid\npursuant to contract by the United States government or any of its\ninstrumentalities in accordance with an act of congress entitled the\n"Housing Act of 1949", are pledged as security for the payment of the\ninterest and principal.\n  2. Obligations of this state, issued pursuant to the authority of any\nlaw of the state, or those for which the faith of this state is pledged\nto provide for the payment of the interest and principal.\n  3. Obligations of any state of the United States, or those for which\nthe faith of any state of the United States is pledged to provide for\nthe payment of the interest and principal, upon which there is no\ndefault and upon which there has been no default for more than ninety\ndays; provided, that within ten years immediately preceding the\ninvestment such state has not been in default for more than ninety days\nin the payment of any part of principal or interest of any debt duly\nauthorized by the legislature of such state to be contracted by such\nstate after the first day of January, eighteen hundred seventy-eight,\nexcept debts representing a refunding or adjustment of any indebtedness\noriginally contracted or in existence at that date or prior thereto.\n  4. Obligations of or those for which the faith of any city, county,\ntown, village, school district, poor district, water district, sewer\ndistrict or fire district in this state is pledged to provide for the\npayment of principal and interest, provided that they were issued\npursuant to law and the faith and credit of the issuing municipal\ncorporation or district is pledged for their payment, bonds and\ndebentures or other obligations of any public authority or commission or\nsimilar body created or approved by the state of New York having assets\nof not less than fifty million dollars; and bonds and debentures of any\nother public authority, commission or similar body which is legally\nobligated to establish rates which while any debt is outstanding will\nprovide sufficient revenues for the cost of operation, maintenance and\ndebt service, such debt service to include interest on all outstanding\nobligations and serial maturities and sinking funds, provided such other\nauthority, commission or similar body shall issue financial statements\nat least annually which shall be available to the public, shall have had\nreceipts from operations during each of the five fiscal years\nimmediately preceding date of investment sufficient after meeting\noperation and maintenance expenses to cover debt service, and provided\nfurther that the revenues available for debt service received during the\nfiscal year immediately preceding investment or the average amount\navailable for debt service for the three fiscal years preceding\ninvestment shall have been adequate to meet the maximum annual debt\nservice of the bonds outstanding, and said obligations have not been in\ndefault as to principal or interest; and bonds, debentures or other\nobligations of any public authority or commission or similar body\ncreated by the state of New York, the average of receipts from the\noperations of which, during the three years immediately preceding the\ndate of investment, after meeting operation and maintenance expenses,\nwere not less than one hundred twenty-five per cent of the maximum\nannual debt service on the bonds outstanding and which obligations have\nnot been in default as to principal or interest.\n  5. (a) Obligations, excluding however, non-negotiable warrants, of any\ncity or of any school district coterminous with or which includes such\ncity, or of any county situated in one of the states of the United\nStates which adjoins the state of New York, provided said city or county\nhas a population, as shown by the last federal census next preceding\nsuch investment, of not less than ten thousand inhabitants, and has not,\nwithin twenty-five years preceding said investment, defaulted for more\nthan one hundred and twenty days in the payment of any part either of\nprincipal or interest of any bond, note, or other evidence of\nindebtedness. The term "city" in this paragraph shall include any city,\ntown, borough, village, township or other incorporated municipality. An\ninvestment made before August first, nineteen hundred twenty-eight,\nshall not under the population provision of this paragraph, as to the\nthen owner thereof, cease to be an authorized investment for the moneys\nof savings banks.\n  (b) Obligations, excluding however, non-negotiable warrants, of any\ncity or of any school district or county coterminous with or which\nincludes such city, situated in any other of the states of the United\nStates the obligations of which state are an authorized investment for\nthe moneys of savings banks, provided said city has a population, as\nshown by the last federal census next preceding said investment, of not\nless than thirty thousand inhabitants, and was incorporated as a city at\nleast twenty-five years prior to the making of said investment, and has\nnot, within twenty-five years preceding said investment, defaulted for\nmore than one hundred and twenty days in the payment of any part either\nof principal or interest of any bond, note, or other evidence of\nindebtedness. Provided further, that obligations issued by a city having\na population of less than forty-five thousand inhabitants as shown by\nsaid census or by a school district or county shall not be an authorized\ninvestment for the moneys of savings banks unless the city, school\ndistrict or county has power to levy taxes on the taxable real property\ntherein for the payment of such obligations without limitation of rate\nor amount.\n  (c) If at any time the indebtedness of any city described in\nparagraphs (a) or (b) of this subdivision or in paragraph (c) of\nsubdivision twenty-five of this section, together with the indebtedness\nof any district, municipal corporation or subdivision, except a county,\nwhich is wholly within the boundaries of such city, and together with a\nproportionate part of the indebtedness of any district, municipal\ncorporation or subdivision, except a county, which is partly within the\nboundaries of such city, and together with so much of the indebtedness\nof any county wholly within the boundaries of such city and a\nproportionate part of so much of the indebtedness of any county partly\nwithin the boundaries of such city, as shall be in excess of five per\ncentum of the valuation for the purposes of taxation of the real\nproperty in any such county, shall exceed twelve per centum of the\nvaluation of real property in said city for the purposes of taxation,\nthe obligations of such city or of any school district or of any county\ncoterminous with or which includes such city, shall, thereafter, and\nuntil such indebtedness shall be reduced to twelve per centum of the\nvaluation of real property in said city for the purposes of taxation,\ncease to be an authorized investment for the moneys of savings banks. If\nthere is no county wholly or in part within such city or if the county\nwholly or in part within such city has neither any indebtedness nor\npower to incur indebtedness, the obligations of such city or of any\nschool district coterminous with or which includes such city, shall not\ncease to be an authorized investment unless such indebtedness shall\nexceed the percentage above provided plus an additional three per\ncentum. If at any time the indebtedness of any county described in\nparagraphs (a) or (b) shall exceed five per centum of the valuation of\nreal property for the purposes of taxation, the obligations of such\ncounty shall thereafter, and until such indebtedness shall be reduced to\nfive per centum of the valuation of real property for the purposes of\ntaxation, cease to be an authorized investment for the moneys of savings\nbanks. A proportionate part of any indebtedness for the purpose of this\nparagraph shall be, unless otherwise apportioned by law, that proportion\nwhich the valuation of taxable real property of a county, district,\nmunicipal corporation or subdivision within the boundaries of a city\nbears to the total valuation of all taxable real property of said\ncounty, district, municipal corporation or subdivision. Contract\nliability shall be excluded unless represented by stocks, bonds, notes,\ncertificates of indebtedness or other like instruments and water debt\nshall be excluded and sinking funds applicable to debts not excluded\nshall be deducted, in determining the amount of any indebtedness\nhereunder.\n  (d) The provisions of paragraph (c) shall not apply to the obligations\nof any city which has taxable real property with a valuation for the\npurposes of taxation in excess of two hundred million dollars and which\nhas a population as shown by the last decennial federal census of not\nless than one hundred fifty thousand inhabitants and shall not apply to\nthe obligations of any school district or county coterminous with or\nwhich includes such city, provided that the city, school district, or\ncounty, as the case may be, has power to levy taxes on the taxable real\nproperty therein for the payment of such obligations without limitation\nof rate or amount.\n  (e) The valuation of property for purposes of taxation under this\nsubdivision and under subdivision twenty-five of this section shall be\nan official valuation duly made and recorded and in cases where the\nassessed valuation is based on a percentage of such official valuation,\nthe percentage used shall have been authorized under statutory or\ncharter power prior to the determination of such assessed valuation.\n  (f) No obligations issued after the year nineteen hundred thirty-eight\nby any city, county, school district or other municipality of any state\nother than New York shall be an authorized investment for savings banks\nunless such city, county, school district or other municipality shall\nhave power to levy taxes on the taxable real property therein for the\npayment of such obligation without limitation of rate or amount.\n  (g) Obligations issued by a city, village, town, county, department,\nagency, district, authority, commission or other public body in this\nstate or any other state of the United States payable out of the\nrevenues of a public utility system providing water, electricity, gas or\nsewerage service, provided that if the public utility system is located\noutside the state, it must serve an area having a population of not less\nthan one hundred thousand. Said city, village, town, county, department,\nagency, district, authority, commission or other public body shall be\nlegally obligated by statute, charter, indenture or covenant to fix,\nmaintain and collect charges or taxes, or both, to provide net revenues\nafter operation and maintenance of the facilities used to provide such\nservice sufficient to meet maturing interest, principal and sinking fund\npayments on such obligations or shall be empowered to require the\nfixing, maintaining, and collecting of such charges or taxes, or both,\nby duly authorized public officers or bodies, and shall be restrained by\nstatute, charter, indenture or covenant from disposing of all or any\nsubstantial portion of such facilities unless provision is made for a\ncontinuance of the interest, principal and sinking fund payments due on\nsuch obligations, or for the retirement of such obligations, provided\nsaid city, village, town, county, department, agency, district,\nauthority, commission or other public body shall have had net earnings\nduring each of the five years immediately preceding investment\nsufficient to cover all debt service and further provided that the net\nearnings available for debt service for the year immediately preceding\ninvestment shall have been sufficient to meet the maximum annual debt\nservice of the obligations outstanding, and said obligations shall not\nhave been in default as to principal or interest.\n  5-a. Bonds and mortgages and notes and mortgages on unimproved real\nproperty in this state or outside this state, subject to such\nlimitations as the superintendent of financial services may prescribe.\n  6. Bonds and mortgages and notes and mortgages on improved real\nproperty, including leasehold estates, in this state, and, subject to\nsuch limitations and conditions as the superintendent of financial\nservices may prescribe by general regulation, in any other location\noutside this state. The provisions of this subdivision shall not\nconstitute the authority to make a loan to a natural person upon the\nsecurity of a mortgage which is not a first lien.\n  (c) For the purposes of this subdivision real property upon which\nthere is a building in process of construction, which when completed\nwill constitute a permanent improvement with a value of more than\ntwenty-five per centum of the value of such real property shall be\nconsidered improved real property, as shall real property with\nimprovements thereon that are capable of producing income sufficient to\npay all costs of operation and maintenance of such real property, all\ntaxes thereon and to effect full repayment of principal and interest in\naccordance with the terms of the mortgage loan to be made pursuant to\nthis subdivision.\n  (e) Except as hereinafter provided no investment in any bond and\nmortgage or any note and mortgage shall be made by any savings bank\nexcept upon the written and signed certificate of an appraiser appointed\npursuant to policies established by the board of trustees stating that\nin such appraiser's judgment it affords adequate security for such\ninvestment. Such certificate shall be filed and preserved among the\nrecords of the savings bank.\n  (f) For the purpose of protecting its interests a savings bank may\nrelease any obligation to pay, or guarantee of the payment of, principal\nor interest, or otherwise waive or modify any of the terms and\nconditions of any bond and mortgage, and of any note and mortgage, and\nmay extend or reextend any bond and mortgage and any note and mortgage,\nand may also accept a sum less than the principal amount thereof in full\npayment and satisfaction of the same.\n  A savings bank may also waive its right to enforce payment of any bond\nor note secured by a mortgage on real property and may waive its right\nto obtain a deficiency judgment against the borrower in the event of\nforeclosure of such mortgage.\n  (g) Every mortgage and every assignment of a mortgage taken or held by\na savings bank shall immediately be recorded or registered in the office\nof the proper recording officer of the county in which the real property\ndescribed in the mortgage is located. This paragraph shall not apply to\na participating interest in any mortgage which shall have been acquired\nby a savings bank under the provisions of subdivision fourteen of\nsection two hundred thirty-four, paragraph (h) of this subdivision, and\nsubdivision eighteen of section two hundred thirty-five.\n  (h) A savings bank may, subject to such regulations and restrictions\nas the superintendent of financial services finds to be necessary and\nproper, participate and invest in (1) loans of a type that it is\nauthorized to invest in pursuant to subparagraph (a) of paragraph four\nof subdivision eight of section two hundred thirty-five of this chapter\nand (2) in any bond and mortgage or note and mortgage on improved and\nunencumbered real property including leasehold estates, in which it is\nindividually authorized to invest, which said mortgage is duly recorded\nor registered in the office of the proper recording officer of the\ncounty in which the real property described in the mortgage is located,\nprovided that no such investment shall be made by a savings bank in any\npart interest in such mortgage which is junior or subordinate to any\nother part interest nor if the aggregate amount of all part interests in\nsuch mortgage when added together will exceed any percentage of the\nappraised value of such real property by which the authority of a\nsavings bank to invest individually in such mortgage is limited.\nInvestments made by any savings bank in mortgage loans pursuant to this\nsubdivision and pursuant to subdivision twenty-eight of this section\nshall be included in the computation of permissive investment in\nmortgage loans pursuant to paragraph (d) of subdivision six of this\nsection.\n  (i) A mortgage loan upon a leasehold estate shall not be made unless\nsuch leasehold estate shall have an unexpired term of not less than\ntwenty-one years, which term may include the term provided by an option\nof renewal enforceable at the exclusive discretion of the savings bank.\nNo mortgage loan upon a leasehold estate shall be made or acquired by a\nsavings bank unless the terms thereof shall provide, regardless of the\nperiod of the loan, for payments to be made by the borrower on the\nprincipal thereof at least once in each year in amounts which would be\nsufficient to completely amortize a loan whose period extended for\nfour-fifths of the unexpired term of the lease, which term may include\nthe term provided by an option of renewal enforceable at the exclusive\ndiscretion of the savings bank; or, in the case of a mortgage loan upon\na leasehold estate in real property upon which there is a building in\nprocess of construction, such payments of principal need not be required\nduring the period of construction or the first three years of the\nmortgage, whichever is shorter. The provisions of paragraphs (c), (d),\n(e), (f), (g), and (h) of this subdivision shall be applicable to loans\nmade upon leasehold estates.\n  6-a. A savings bank may, in addition to the authority granted under\nany other subdivisions of this section, make a loan to a natural person\nupon the security of a mortgage which is not a first lien at the rate or\nrates agreed to by the savings bank and the borrower, subject to such\nregulations as the superintendent of financial services may prescribe.\nSuch regulations by the superintendent of financial services may include\nsuch restrictions as the superintendent of financial services finds\nnecessary or proper, including without limitation, a restriction as to\nthe percentage of total assets which may be invested in such loans or a\nrestriction on the loan to appraisal value of property securing such\nloan.\n  For purposes of this subdivision, the term mortgage shall include a\nlien on an existing ownership interest in certificates of stock or other\nevidence of an ownership interest in, and a proprietary lease from, a\ncorporation or partnership formed for the purpose of the cooperative\nownership of real estate.\n  7. Railroad obligations as provided in this subdivision. (1)\nObligations issued, assumed or guaranteed as to principal and interest\nby endorsement, or so guaranteed which guaranty has been assumed; or\n  (2) Obligations for the payment of the principal and interest of which\na railroad corporation such as is described in this paragraph is\nobligated under the terms of a lease made or assumed; or\n  (3) Equipment obligations in respect of which liability has been\nincurred: by a railroad corporation incorporated under the laws of the\nUnited States, or any state thereof, and owning and operating within the\nUnited States not less than five hundred miles of standard-gauge\nrailroad line, exclusive of sidings, or if the mileage so owned shall be\nless than five hundred miles, the railroad operating revenues from the\noperation of all railroad operated by it, including such revenues from\nthe operation of all railroad controlled through ownership of all\n(except directors' qualifying shares) of the voting stock of the owning\ncorporation, shall have been not less than ten million dollars each year\nfor at least five of the six fiscal years next preceding such\ninvestment; provided, however, (1) that in the five fiscal years next\npreceding such investment, the amount of income of such railroad\ncorporation, available for its fixed charges, as hereinafter defined,\nshall have averaged not less than two and one-half times the amount of\nfixed charges at the time of investment, as hereinafter defined; (2)\nthat at no time within such period of five years such railroad\ncorporation, unless in process of reorganization or readjustment since\ncompleted, pursuant to applicable law, shall have failed regularly and\npunctually to pay the matured principal and interest on its mortgage and\nfunded indebtedness; and (3) that the security, if any, for such\nobligations shall be property wholly or in part within the United States\nand which obligations shall be\n  (a) fixed interest-bearing bonds secured by direct mortgage on\nrailroad owned or operated by such railroad corporation; or\n  (b) fixed interest-bearing bonds secured by first mortgage upon\nterminal, depot or tunnel property, including lands, buildings and\nappurtenances, used in the service of transportation by one or more such\nrailroad corporations, provided that such bonds be the direct obligation\nof, or that payment of principal and interest thereof be guaranteed by\nendorsement by, or guaranteed by endorsement which guaranty has been\nassumed by, one or more such railroad corporations; or\n  (c) equipment obligations, comprising bonds, notes, certificates,\nconditional sale agreements or assignments of conditional sale\nagreements and participations therein, issued or made in connection with\nthe purchase for use on railroads of new standard-gauge rolling stock\nthrough the medium of an equipment agreement, and which obligations, so\nlong as any thereof shall be outstanding and unpaid or unprovided for,\nshall be secured by an instrument (1) vesting title to such equipment in\na trustee free of encumbrance, or (2) creating a first lien on such\nequipment, or, pending such vesting of title, by the deposit of cash in\ntrust, which deposit may be invested in whole or in part in obligations\nof the United States or obligations for which the faith of the United\nStates is pledged to provide for the payment of the interest and\nprincipal, or obligations of any public housing agency as defined in the\nUnited States housing act of nineteen hundred thirty-seven, as amended,\nin the United States as are secured either (1) by an agreement between\nthe public housing agency and the public housing administration in which\nthe public housing agency agrees to borrow from the public housing\nadministration, and the public housing administration agrees to lend to\nthe public housing agency, prior to the maturity of such obligations,\nwhich obligations shall have a maturity of not more than eighteen\nmonths, moneys in an amount which, together with any other moneys\nirrevocably committed to the payment of interest on such obligations,\nwill suffice to pay the principal of such obligations with interest to\nmaturity thereon, which moneys under the terms of said agreement are\nrequired to be used for the purpose of paying the principal of and the\ninterest on such obligations at their maturity, or (2) by a pledge of\nannual contributions under an annual contributions contract between such\npublic housing agency and the public housing administration if such\ncontract shall contain the covenant by the public housing administration\nwhich is authorized by section 1421a(b) of Title 42, U.S. Code, and if\nthe maximum sum and the maximum period specified in such contract\npursuant to section 1421a(b) of Title 42, U.S. Code, shall not be less\nthan the annual amount and the period for payment which are requisite to\nprovide for the payment, when due, of all installments of principal and\ninterest on such obligations, to an amount equal to the face amount of\nsuch equipment obligations issued in respect of such equipment title to\nwhich is not yet so vested; provided further, that the maximum amount of\nsuch obligations so issuable shall not exceed eighty per centum of the\ncost of such equipment; and provided further, that the owner, purchaser\nor lessee, or the owners, purchasers or lessees, of such equipment shall\nbe obligated by the terms of such obligations or of such instrument (a)\nto maintain such equipment in proper repair; (b) to replace any thereof\nthat may be destroyed or released with other equipment of equal value,\nor, if released in connection with a sale thereof, to deposit the\nproceeds of such sale in trust for the benefit of the holders of such\nobligations pending replacement of such equipment; (c) to pay any and\nall taxes or other governmental charges that may be required by law to\nbe paid upon such equipment; (d) to pay, in accordance with the\nprovisions of such obligations or of such instrument, to holders, or to\nsuch trustee for the benefit of holders, of such obligations the amount\nof interest due thereon or of the dividends payable in respect thereof;\nand (e) to pay the amount of the entire issue of such obligations in\nsuch annual or semi-annual installment each year throughout a period of\nnot exceeding fifteen years from the first date of issue of any thereof\nthat the amount of the respective unmatured installments at any time\noutstanding shall be approximately equal; provided, further, that unless\nthe owner, purchaser or lessee of such equipment or one or more of such\nowners, purchasers or lessees shall be such railroad corporation as is\ndescribed in and meets the requirements of this subdivision preceding\nparagraph (a), such obligations shall be guaranteed by endorsement as to\nprincipal and as to interest or dividends by such railroad corporations;\nor\n  (d) fixed interest-bearing bonds of such railroad corporation secured\nby irrevocable pledge as collateral under a trust agreement of other\nrailroad bonds that are legal investments for savings banks under this\nsection, have a maturity not earlier than the bonds that they secure and\nof a total face amount not less than the total face amount of the bonds\nthat they secure; or\n  (e) fixed interest-bearing mortgage bonds other than those described\nin paragraphs (a) or (b) hereof, income mortgage bonds, collateral trust\nbonds or obligations other than those described in paragraph (d) hereof,\nor unsecured bonds or obligations, issued, assumed or guaranteed as to\nprincipal and interest by endorsement by, or so guaranteed which\nguaranty has been assumed by, such railroad corporation, provided that\n(a) the annual fixed charges and contingent interest charges of such\nrailroad at the time of investment shall not exceed thirty per cent of\nthe average annual income available for such charges for the five fiscal\nyears next preceding, and (b) the net income of such railroad after all\ntaxes and charges shall have averaged not less than fifteen million\ndollars annually in such period.\n  The amount of income available for fixed charges shall be the amount\nobtained by deducting from gross income all items deductible in\nascertaining net income other than federal income taxes, contingent\nincome interest and those constituting fixed charges. Fixed charges\nshall be: rent for leased roads, miscellaneous rents, fixed interest on\nfunded debt, interest on unfunded debt and amortization of discount on\nfunded debt.\n  Accounting terms used in the preceding paragraph shall be deemed to\nrefer to those used in the accounting reports prescribed by the\naccounting regulations for common carriers subject to the provisions of\nthe interstate commerce act. If the interstate commerce commission shall\nprescribe accounting regulations wherein shall be defined the term\nincome available for fixed charges and the term fixed charges, the\ndefinitions thereof as so prescribed shall be taken and used in lieu of\nthe definitions set forth in the preceding paragraph of this subdivision\nfor all purposes hereof, except that federal income taxes shall not be\ndeducted, nor shall federal income tax credits be included, in computing\nincome available for fixed charges. In determining income available for\nfixed charges and fixed charges pursuant to this paragraph or the\nimmediately preceding paragraph interest, dividends and rentals paid by\na railroad corporation and included in both such amounts shall be\neliminated.\n  For all purposes of this subdivision seven, the revenues, earnings,\nincome and fixed charges of, and dividends paid by, any railroad\ncorporation prior to the acquisition of all or substantially all of its\nrailroad lines by another railroad corporation, through merger,\nconsolidation, conveyance or lease, shall, while such lines remain in\nthe possession of the acquiring corporation, be deemed to have been\nrevenues, earnings, income and fixed charges of, and dividends paid by,\nsuch acquiring corporation.\n  Whenever a railroad corporation shall own (directly or through a\nsubsidiary all of the stock of which, except directors' qualifying\nshares, is owned by such corporation) at least ninety per cent of the\ncapital stock of one or more other railroad corporations, the property\nof which is operated by it under lease, the consolidated statements of\nall such railroad corporations may be used in determining the amount of\nincome available for fixed charges and the amount of fixed charges.\n  Obligations of a railroad corporation the railroad lines of which have\nbeen so leased prior to April fifth, nineteen hundred twenty-nine, for\nthe payment of which the lessee is not obligated, that are outstanding\nand officially listed by the department of financial services of the\nstate of New York as authorized investments prior to that date, shall be\nand remain authorized investments hereunder; provided, that such\nrailroad lines shall be in the possession of and be operated by a\nrailroad corporation such as is described in and meets the requirements\nof the provisions of this subdivision preceding paragraph (a).\n  Notwithstanding any other provisions of this subdivision, equipment\nobligations described in paragraph (c) which shall have been issued,\nassumed or guaranteed by any railroad corporation classified by the\ninterstate commerce commission as a class one railroad and which are not\nin default, shall be authorized investments hereunder.\n  Notwithstanding any of the provisions of this subdivision, fixed\ninterest-bearing obligations of railroad corporations, excluding\nterminal, depot and tunnel corporations, which are eligible for purchase\nby savings banks on December thirty-first, nineteen hundred fifty-two\nunder the provisions of subdivisions seven or nineteen of this section,\nor which shall thereafter become eligible pursuant to the provisions of\nthis subdivision seven, as amended, if not in default, shall be and\nremain eligible hereunder, provided that the income available for fixed\ncharges, as herein defined, of the railroad corporation which has\nissued, assumed or guaranteed such obligations, or which operates under\nlease the railroad lines of the corporation which has issued, assumed or\nguaranteed such obligations, shall have averaged for the five fiscal\nyears next preceding the time of investment not less than twice the\ninterest charges for the last such fiscal year on all equipment\nobligations, and other obligations eligible hereunder, of such railroad\ncorporation which remain outstanding at time of investment.\n  Fixed interest-bearing bonds of terminal, depot and tunnel companies\nwhich are eligible for purchase by savings banks on December\nthirty-first, nineteen hundred fifty-two under the provisions of\nsubdivisions seven or nineteen of this section, or which shall\nthereafter become eligible pursuant to the provisions of this\nsubdivision seven, as amended, shall be and remain eligible hereunder,\nprovided that the principal and interest thereof be guaranteed by\nendorsement by, or guaranteed by endorsement which guaranty has been\nassumed by, a railroad corporation which meets the requirements of the\npreceding paragraph for continuing the eligibility of its own fixed\ninterest-bearing obligations.\n  Not more than twenty-five per centum of the assets of any savings bank\nshall be loaned or invested in the bonds, notes, certificates,\nconditional sale agreements, assignments of conditional sale agreements\nand participations therein in this subdivision seven defined, and not\nmore than ten per centum of such assets shall be invested in such bonds,\nnotes, certificates, conditional sale agreements, assignments of\nconditional sale agreements and participations therein for which any one\nrailroad corporation of this state shall be obligated, and not more than\nfive per centum of such assets shall be invested in the bonds, notes,\ncertificates, conditional sale agreements, assignments of conditional\nsale agreements and participations therein for which any one railroad\ncorporation not of this state shall be obligated.\n  Street railroad corporations shall not be considered railroad\ncorporations within the meaning of this subdivision.\n  7-a. Any savings bank which prior to April first, nineteen hundred\nthirty-eight acquired any railroad obligation eligible at the time of\nacquisition for investment by savings banks may continue to hold such\nobligation as though the same continue to be eligible by law for new\ninvestment by such savings bank.\n  8. Promissory notes and other agreements as provided in this\nsubdivision.\n  (1) Promissory notes payable to the order of the savings bank which\nare:\n  (a) Secured by one or more mortgages in which a savings bank may\ninvest; provided the amount loaned is not in excess of ninety per centum\nof the principal sum secured by such mortgage or mortgages. The\nassignment of every mortgage taken as security for any such note shall\nbe recorded or registered in the office of the proper recording officer\nof the county in which the real property described in such mortgage is\nlocated, unless such mortgage or mortgages have been so assigned by a\nsavings bank.\n  (b) Secured by any of the stocks and bonds in which a savings bank may\ninvest; provided that (1) the amount of the loan is not in excess of\nninety per centum of the market value of such stocks and bonds; and (2)\nthe term "stocks," as used in this paragraph, shall be deemed to refer\nto stocks eligible for investment by a savings bank other than in\naccordance with the provisions of subdivision twenty-six of this\nsection.\n  (c) Made by a savings and loan association which has been incorporated\nthree years or more and has an accumulated capital of at least fifty\nthousand dollars.\n  (2) Promissory notes payable to the order of the savings bank which\nare secured by the assignment of a deposit in any savings bank; provided\nthe amount of the loan is not in excess of the amount of such deposit.\n  (3) Any loan secured by not less than a like amount of direct\nobligations of the United States or of this state, or of any city,\ncounty, town, village or school district of this state or of any such\ndepartment, agency or instrumentality of the United States or this\nstate.\n  (4) (a) Promissory notes representing loans and advances of credit for\nthe purpose of financing alterations, repairs and improvements upon or\nin connection with, or as the superintendent may authorize the equipping\nof existing structures, and the building of new structures, upon urban,\nsuburban, or rural real property (including the restoration,\nrehabilitation, rebuilding and replacement of such improvements which\nhave been damaged or destroyed by earthquake, conflagration, tornado,\nhurricane, cyclone, flood or other catastrophe), by the owners thereof\nor by lessees of such real property under a lease expiring not less than\nsix months after the maturity of the loan or advance of credit or by\nlessees under proprietary leases from a corporation or partnership\nformed for the purpose of the cooperative ownership of real estate,\nprovided: (1) the amount of such loan, advance of credit, or purchase\nmade for the purpose of financing the alteration, repair, equipping or\nimprovement of existing structure or the building of new structure does\nnot exceed twenty thousand dollars; (2) the maturity thereof does not\nexceed one hundred twenty-one months; (3) the rate which may be paid by\nthe borrower for interest, discount, and fees of all kinds in connection\nwith the transaction shall be the rate or rates agreed to by the savings\nbank and the borrower in the promissory note; and (4) the loan shall be\npaid in equal or substantially equal monthly installments calculated\nfrom the date of the note; provided, however, that in addition thereto\nthe savings bank may contract to charge the borrower: (i) the fees\npayable to the appropriate public officer to perfect any lien or other\nsecurity interest taken to secure the loan or the premium, not in excess\nof such filing fee, payable for any insurance in lieu of such filing;\n(ii) in case of default, and in accordance with the provisions of the\ninstrument evidencing the obligation, either a fine in an amount not to\nexceed five cents per dollar on any installment which has become due and\nremained unpaid for a period in excess of ten days, but no such fine\nshall exceed five dollars and only one fine shall be collected on any\nsuch installment regardless of the period during which it remains in\ndefault, and provided further that should the aggregate of such fines\ncollected in connection with any loan exceed two per centum of such\nloan, or in any event twenty-five dollars, the savings bank shall refund\nsuch excess to the borrower within sixty days after the loan is paid in\nfull, or subject to an allowance of unearned interest attributable to\nthe amount in default, interest on each amount past due at a rate not in\nexcess of the rate provided for in the instrument evidencing the\nobligation; (iii) the actual expenditures, including reasonable\nattorney's fees, for necessary court process; and (iv) in case the\nsavings bank insures a borrower under a credit unemployment insurance\npolicy, group life insurance policy, group health insurance policy,\ngroup accident insurance policy, or group health and accident insurance\npolicy, or requires insurance on personal property securing any such\nloan, an amount not in excess of the premiums chargeable in accordance\nwith rate schedules then in effect and on file with the superintendent\nof financial services for such insurance by the insurer. No savings bank\nshall require a borrower to place any sum on deposit, or to make\ndeposits in lieu of regular periodic installment payments, or to do or\nrefrain from doing any other act which would entail additional expense\nor sacrifice, as a condition precedent to granting a loan or advance of\ncredit under the authority of this subdivision. Notwithstanding the\nprovisions of this paragraph no refund of excess fines shall be required\nif it amounts to less than one dollar.\n  (b) Promissory notes representing loans and advances of credit for the\npurpose of defraying the cost of attendance of one or more students the\nincome of whose family is fifteen thousand dollars or more per year at\nthe time the loan or loan commitment is made at a university or college\nor for the purpose of defraying the cost of attendance of one or more\nstudents at an elementary or secondary school providing education\nrequired for minors; provided, however, that no such loan shall bring\nthe total unpaid principal balances of any one or more loans made by\nsuch savings bank to the borrower pursuant to this subparagraph to an\namount in excess of thirty thousand dollars; and further provided that\nthe maturity of any such loan does not exceed eighty-five months; and\nfurther provided that the rate which may be paid by the borrower for\ninterest, discount, and fees of all kinds in connection with the\ntransaction shall be the rate or rates agreed to by the savings bank and\nthe borrower in the promissory note, reckoned on each loan or advance\nfrom the date thereof, calculated on any of the following bases: (i) on\nthe unpaid principal amount of such loans and advances from time to time\noutstanding, or (ii) for each month on an average balance outstanding\ndetermined by dividing by two the sum of the balances of unpaid\nprincipal of such loans and advances outstanding on two dates during\nsuch month, as specified in such agreement; the first of which dates\nbeing not later than the fifteenth day of such month and the second\nbeing not earlier than the sixteenth day of such month and not less than\nten nor more than twenty days after the first day, or (iii) for each\nmonth on a fixed amount selected from a schedule, which fixed amount may\nexceed the average daily balance under (i) above, or the average balance\nif determined under (ii) above, by a differential of not more than five\ndollars, provided the same fixed amount is also used for computing\ninterest for any month for which such balance exceeds said fixed amount\nby any amount up to at least the same differential; and further provided\nthat the loan shall be paid in equal or substantially equal monthly\ninstallments calculated from the date of the note. No fee, commission,\nexpense, or other charge whatsoever shall be taken, received, reserved\nor contracted for in addition to the maximum rate of interest authorized\nby this subparagraph except (i) the fees payable to the appropriate\npublic officer to perfect any lien or other security interest taken to\nsecure the loan or the premium, not in excess of such filing fee,\npayable for any insurance in lieu of such filing; (ii) in case of\ndefault, and in accordance with the provisions of the instrument\nevidencing the obligation, either a fine in an amount not to exceed five\ncents per dollar on any installment which has become due and remained\nunpaid for a period in excess of ten days, but no such fine shall exceed\nfive dollars and only one fine shall be collected on any such\ninstallment regardless of the period during which it remains in default,\nand provided further that should the aggregate of such fines collected\nin connection with any loan exceed two per centum of such loan, or in\nany event twenty-five dollars, the savings bank shall refund such excess\nto the borrower within sixty days after the loan is paid in full, or,\nsubject to an allowance of unearned interest attributable to the amount\nin default, interest on each amount past due at a rate not in excess of\nthe rate provided for in the instrument evidencing the obligation; (iii)\nthe actual expenditures, including reasonable attorney's fees, for\nnecessary court process; and (iv) in case the savings bank insures a\nborrower under a credit unemployment insurance policy, group life\ninsurance policy, group health insurance policy, group accident\ninsurance policy, or group health and accident insurance policy, or\nrequires insurance on personal property securing any such loan, an\namount not in excess of the premiums chargeable in accordance with rate\nschedules then in effect and on file with the superintendent of\nfinancial services for such insurance by the insurer. No savings bank\nshall require a borrower to place any sum on deposit, or to make\ndeposits in lieu of regular periodic installment payments, or to do or\nrefrain from doing any other act which would entail additional expense\nor sacrifice, as a condition precedent to granting a loan or advance of\ncredit under the authority of this subparagraph, except under such terms\nand conditions as the superintendent may from time to time approve.\nNotwithstanding the provisions of this subparagraph no refund of excess\nfines shall be required if it amounts to less than one dollar.\n  (c) Promissory notes secured by mobile home chattel paper evidencing a\nmonetary obligation incurred to finance the purchase of a mobile home\nlocated at the time of such purchase, or to be located within ninety\ndays, at a semipermanent site within the state or in a contiguous state\nand to be maintained as a residence of the borrower, the borrower's\nspouse, child, grandchild, parent or grandparent.\n  (1) For this subparagraph:\n  (i) "mobile home chattel paper" means written evidence of both a\nmonetary obligation and a security interest of first priority in a\nmobile home and any equipment installed or to be installed therein; and\n  (ii) "mobile home" or "manufactured home" means a structure,\ntransportable in one or more sections, which in the traveling mode, is\neight body feet or more in width or forty body feet or more in length,\nor when erected on site, is three hundred twenty or more square feet,\nand which is built on a permanent chassis and designed to be used as a\ndwelling with or without a permanent foundation when connected to\nrequired utilities, and includes the plumbing, heating, air-conditioning\nand electrical systems contained therein.\n  (2) If the loan is for the purpose of financing the purchase of a new\nmobile home,\n  (i) it shall mature not later than two hundred forty months after the\ndate thereof, and\n  (ii) the amount advanced shall not exceed one hundred per cent of the\nsum of (a) the purchase price of such mobile home (including any\ninstalled equipment) plus (b) the price of any new equipment installed\nor to be installed by the dealer.\n  (3) If the loan for the purpose of financing the purchase of a used\nmobile home,\n  (i) it shall mature not later than two hundred forty months after the\ndate thereof, and\n  (ii) the amount advanced shall not exceed one hundred per cent of the\npurchase price of the mobile home actually paid (including any installed\nequipment).\n  (4) The loan shall be payable in equal or substantially equal monthly\ninstallments calculated from the date of the loan. Interest, which may\nbe taken in advance, may be charged thereon, computed from the date of\nthe loan to the date of the last installment payable thereunder, if the\nloan has a maturity (i) not exceeding thirty-seven months, at a rate not\nto exceed six dollars per annum discount per one hundred dollars of the\nface amount or ten dollars if the interest so computed is less than that\namount, or (ii) exceeding thirty-seven months, at a rate not to exceed\nfive dollars per annum discount, per one hundred dollars of the face\namount or ten dollars if the interest so computed is less than that\namount; provided that the interest which may be charged; if it exceeds\nten dollars, shall not exceed one per cent per month on the unpaid\nprincipal balance.\n  (5) The authorized interest shall include all charges incident to\ninvestigating and making any loan. No fee, commission, expense, or other\ncharge shall be permitted except that the savings bank may contract to\ncharge the borrower (i) the fees payable to a public officer to perfect\nany lien or other security interest taken to secure the loan, or the\npremium, not in excess of such fee, payable for any insurance in lieu of\nsuch filing; (ii) in case of default, and in accordance with the\ninstrument evidencing the obligation, either a fine in an amount not to\nexceed five per cent on any installment which has become due and\nremained unpaid for a period in excess of ten days, but no such fine\nshall exceed five dollars and only one fine shall be collected on any\nsuch installment regardless of the duration of the default, and provided\nfurther that should the aggregate of such fines collected in connection\nwith any loan exceed two per cent of such loan or twenty-five dollars,\nthe savings bank shall refund such excess within sixty days after the\nloan is paid in full, or, subject to an allowance of unearned interest\nattributable to the amount in default, interest on each amount past due\nat a rate not in excess of one per cent per month during the\ndelinquency; (iii) the actual expenditures, including reasonable\nattorney's fees for necessary court process, and (iv) in case the\nsavings bank insures a borrower under a credit unemployment insurance\npolicy, group life, health, accident, or group health and accident\ninsurance policy, or requires insurance on the property securing such\nloan, an amount not in excess of the premiums lawfully chargeable. No\nsavings bank shall require a borrower to place any sum on deposit, or to\nmake deposits in lieu of regular periodic installment payments, or to do\nor refrain from doing any other act which would entail additional\nexpense or sacrifice, as a condition to a mobile home loan except as the\nsuperintendent may from time to time approve. No refund of excess fines\nneed be made if it amounts to less than one dollar.\n  (6) As a condition of any loan made pursuant hereto, the borrower\nshall certify that the mobile home, against which the loan is made, is\nintended to be maintained in the state or in a contiguous state as a\nresidence of the borrower, the borrower's spouse, child, grandchild,\nparent or grandparent. If the mobile home shall not be so maintained on\nthe ninetieth day next succeeding the date of the loan or if it is\nrelocated so as to no longer be located in the state or a contiguous\nstate at any time before the first anniversary of the date of the loan,\nthen, in either event and notwithstanding anything to the contrary in\nthis subparagraph, the loan and all authorized charges shall become\nimmediately due and payable subject to the refund provisions of\nsubparagraph (c) of paragraph four and the borrower may, if the contract\nso provides, be required to pay as an additional authorized charge, a\npenalty in an amount not to exceed two per cent of the face amount of\nthe loan.\n  (7) No investment shall be made by a savings bank pursuant hereto if\nthe total amount invested by it pursuant to this subparagraph exceeds,\nor by the making of such investment will exceed, an amount equal to\nthirty per cent of the assets of the savings bank.\n  (8) Subject to such limitations and conditions as the superintendent\nof financial services may prescribe by general regulation, a savings\nbank may make a loan pursuant to this subparagraph which the federal\nhousing administrator has insured or has made a commitment to insure and\nmay receive and hold such debentures as are issued by the federal\nhousing administrator in payment of such insurance, or which is\nguaranteed pursuant to the provisions of the act of congress entitled\nthe "Servicemen's Readjustment Act of 1944." No law of this state\nprescribing the nature, amount or form of security or requiring security\nupon which loans or advances of credit may be made or prescribing or\nlimiting the period for which loans or advances of credit may be made or\nlimiting the amount of any class of loans, advances of credit or\npurchases which may be made shall be deemed to apply to loans, advances\nof credit or purchases made or to loans acquired by purchase pursuant to\nthis item.\n  (d) A borrower may prepay in full any loan made pursuant to the\nprovisions of subparagraph (a), (b) or (c) of this paragraph or, with\nthe consent of the savings bank, may refinance the loan. In the event of\nsuch prepayment or refinancing, the savings bank shall refund: (1) the\nunearned portion of the interest to the borrower the amount of which\nportion shall be determined according to a generally accepted actuarial\nmethod; provided, however, that if the amount of interest previously\ndeducted (i) was less than ten dollars, no refund shall be required; or\n(ii) exceeded the sum of ten dollars and the earned interest is less\nthan that amount, the savings bank may retain such an additional amount\nas will bring the earned interest to the sum of ten dollars and refund\nthe remainder, and provided further, that unless the loan is refinanced,\nno refund shall be required if it amounts to less than one dollar; and\n(2) if a charge was made to the borrower for premiums for insuring the\nborrower under a credit unemployment insurance policy, group life\ninsurance policy, or under a group health, group accident or group\nhealth and accident insurance policy, the excess of the charge to the\nborrower therefor over the premiums paid or payable by the savings bank,\nif such premiums were paid or payable by the savings bank periodically\nor the refund for such insurance premium received or receivable by the\nsavings bank, if such premium was paid or payable in a lump sum by the\nsavings bank, provided that no such refund shall be required if it\namounts to less than one dollar. In the event (i) the maturity of the\nloan is accelerated due to the default of the borrower or otherwise and\njudgment is obtained, or (ii) repayment is made pursuant to any such\ninsurance policy, the borrower or his legal representative, as the case\nmay be, shall be entitled to the same refund as if the loan had been\nprepaid in full on the date of acceleration or repayment.\n  (5) Promissory notes from a resident of the state of New York provided\nthat payment of each such note is guaranteed by the New York Higher\nEducation Assistance Corporation, or promissory notes that are insured\nor covered by a commitment to insure or are guaranteed or covered by a\ncommitment to guarantee issued by the Federal Education Commissioner in\naccordance with the provisions of the act of congress entitled "Higher\nEducation Act of 1965".\n  8-a. Promissory notes representing loans for the purpose of financing\nthe purchase of or refinancing an existing ownership interest in\ncertificates of stock or other evidence of an ownership interest in, and\na proprietary lease from, a corporation or partnership formed for the\npurpose of cooperative ownership of real estate within or without this\nstate, as provided in this subdivision.\n  A savings bank may, subject to such regulations as the superintendent\nof financial services finds necessary and proper, invest to an amount\nnot exceeding the maximum per cent of the loan permitted to be made on\nreal estate improved by a single family residence occupied by the owner,\nprovided that for purposes of this section the amount of the purchase\nprice shall be deemed to equal the appraised value of such certificate\nof stock or other evidence of an ownership interest, or, in the case of\na refinancing, the appraised value of certificates of stock or other\nevidence of an ownership interest in and a proprietary lease from, a\ncorporation or partnership formed for the purpose of the cooperative\nownership of real estate within or without this state, for the purpose\nof financing a purchase of or refinancing an existing ownership interest\nin such a corporation or partnership, provided (a) such investment is\nsecured within ninety days from the making of the loan by an assignment\nor transfer of the stock or other evidence of an ownership interest of\nthe borrower and a proprietary lease; and (b) repayment of principal and\ninterest shall be effected within the same number of years as a\nconventional mortgage loan previously described in this subdivision. The\nmaximum rate of interest which may be charged, taken or received upon\nany loan or forbearance made pursuant to this subdivision may exceed the\nrate of interest prescribed by the superintendent of financial services\nin accordance with section fourteen-a of this chapter by no more than\none and one-half per centum per annum.\n  8-b. Personal loan departments. Subject to such regulations as the\nsuperintendent of financial services may prescribe, a savings bank may\noperate a personal loan department under the same terms and conditions\nas are provided under the provisions of subdivisions four and five of\nsection one hundred eight of this chapter.\n  The superintendent of financial services shall be empowered (a) to\nprescribe the terms and conditions governing the conduct and operation\nof personal loan departments including, the maximum amount, expressed as\na percentage of assets or otherwise, which a savings bank may invest\npursuant to the provisions of this subdivision or in the aggregate,\ntaking into account such other provisions of law authorizing investments\nby savings banks, and (b) to prescribe such terms and conditions as may\nbe appropriate to effect or facilitate the transfer of accounts operated\npursuant to the provisions of any other section of this chapter to the\npersonal loan departments authorized to be operated hereunder.\n  In pursuance of the authority granted hereunder savings banks shall be\nempowered to issue credit cards, extend credit in connection therewith,\nand otherwise engage in or participate in credit card operations, and to\nact as financing agency as defined in subdivision nine of section three\nhundred one and subdivision eighteen of section four hundred one of the\npersonal property law.\n  8-c. Subject to such regulations as the superintendent of financial\nservices may prescribe, promissory notes and other evidences of\nindebtedness representing commercial, corporate or business loans,\nprovided that the aggregate amount of all such loans outstanding at any\ntime to any borrower shall, if unsecured, not exceed fifteen per centum\nof the net worth of such savings bank or, if secured, subject to the\nsame limitations as to amount in relation to net worth as are applicable\nto banks and trust companies pursuant to article three of this chapter.\nFor purposes of this section the term "net worth" shall have the meaning\nascribed to it by subdivision four of section two hundred forty-four of\nthis chapter.\n  8-d. Subject to such regulations as the superintendent of financial\nservices may prescribe and subject to the limits of subdivision eight-c\nof this section and any other applicable limits or requirements imposed\nby law or regulation, promissory notes and other evidence of\nindebtedness that represent linked loans, each authorized and approved\npursuant to article fifteen of the state finance law and each in an\namount equal to a corresponding linked deposit made pursuant to such\narticle.\n  8-e. Subject to such regulations as the superintendent of financial\nservices may prescribe and subject to the limits of subdivision eight-c\nof this section and any other applicable limits or requirements imposed\nby law or regulation, promissory notes and other evidence of\nindebtedness that represent linked loans, each authorized and approved\npursuant to article sixteen of the state finance law and each in an\namount equal to a corresponding linked deposit made pursuant to such\narticle.\n  9. Real estate as provided in this subdivision.\n  (a) A savings bank may purchase or acquire the following real estate:\n  (1) A plot whereon there is or may be erected a building suitable for\nthe convenient transaction of the business of the savings bank, from\nportions of which not required for its own use a revenue may be derived,\nand a plot whereon parking accommodations are, or are to be, provided,\nwith or without charge, primarily for its customers or employees or\nboth. The aggregate of all investments of a savings bank in such plots\nand buildings shall not exceed five per centum of the assets of such\nsavings bank, except with the approval of the superintendent.\n  (2) Such as shall be conveyed to it in satisfaction of debts\npreviously contracted in the course of its business.\n  (3) Such as it shall purchase at sales under judgments, decrees or\nmortgages held by it.\n  (4) In lieu of instituting an action to foreclose a mortgage lien, a\nsavings bank may purchase a deed to the underlying real property.\n  (5) A whole or part interest in a "project" as defined in the New York\nstate urban development corporation act, pursuant to sections six or\neight of such act. An investment by a savings bank in a single project\nshall not exceed one per centum of the assets or ten per centum of the\nnet worth of such savings bank, whichever is less, and the aggregate of\nall investments of a savings bank in such projects and investments in\nsecurities pursuant to subparagraph one-a of paragraph (a) of\nsubdivision twenty-one of this section shall not exceed five per centum\nof the assets or fifty per centum of the net worth of such savings bank,\nwhichever is less. For the purposes of this subdivision, "net worth" of\na savings bank shall mean the excess of its assets at book value, less\nallocated reserves, over known liabilities.\n  * (6) Improved or unimproved real property (either by purchase, lease,\nexchange or otherwise), or any interest therein, to erect, construct,\nrebuild, enlarge, alter, improve, maintain, manage and operate buildings\nor other improvements of any description thereon, to sell, lease,\nsublet, mortgage, exchange or otherwise dispose of same and execute,\nperform and carry out contracts for construction, alteration,\nimprovement, maintenance, management or repair thereof, to make loans in\nconnection therewith, as owner, co-owner or otherwise, subject to such\nspecific or general approvals and limitations as shall be required by\nregulations promulgated from time to time by the superintendent of\nfinancial services pursuant to this subparagraph; provided, however,\nthat no activity specified herein, shall be undertaken pursuant to the\nauthority contained in this subparagraph until the superintendent of\nfinancial services shall have issued regulations specifying the\nlimitations and requirements which shall be imposed in connection with\nthe investments and activities referred to herein including, without\nlimitation, the consideration of such savings bank's record in meeting\nthe credit needs of local communities within the meaning of section\ntwenty-eight-b of this chapter.\n  * NB Expired June 30, 1988\n  (b) Every parcel of real estate acquired by a savings bank shall be\nconveyed to it directly by name, or, subject to such regulations and\nrestrictions as the superintendent of financial services finds to be\nnecessary and proper, may be taken in the name of a duly authorized\nnominee, and the conveyance shall be immediately recorded or registered\nin the office of the proper recording officer of the county in which\nsuch real estate is located.\n  10. Bonds and other obligations of Savings and Loan Bank of the State\nof New York.\n  11. Farm loan bonds, including consolidated bonds, issued by federal\nland banks, federal intermediate credit bank debentures, including\nconsolidated debentures, issued by federal intermediate credit banks and\nbonds, debentures or other obligations of banks for cooperatives,\nincluding consolidated debentures issued by banks for cooperatives\norganized under the laws of the United States.\n  12. Bankers' acceptances and bills of exchange which are eligible for\npurchase in the open market by federal reserve banks and which have been\naccepted by a bank, a trust company, a private banker or an investment\ncompany, as those terms are defined in this chapter, or by a banking\ncorporation which is organized under the laws of the United States or of\nany state thereof and which is a member of the federal reserve system.\n  Aggregate liability of any bank, trust company, private banker,\ninvestment company or banking corporation to any savings bank for\nacceptances shall not exceed twenty-five per centum of the capital and\nsurplus of such bank, trust company, private banker, investment company\nor banking corporation, or five per centum of the aggregate amount\ncredited to the depositors of such savings bank, whichever amount is\nless.\n  12-a. * (a) Obligations of any corporation organized under the laws of\nany state of the United States maturing within two hundred seventy days,\nprovided that such obligations receive the highest rating of an\nindependent rating service designated by the superintendent of financial\nservices.\n  * NB Effective until notification of the superintendent of financial\nservices\n  * (a) Obligations of any corporation organized under the laws of any\nstate of the United States maturing within two hundred seventy days,\nprovided that such obligations meet the standards of creditworthiness\nestablished by regulation by the superintendent.\n  * NB Effective upon notification of the superintendent of financial\nservices\n  (b) Subject to such regulations as the superintendent of financial\nservices may impose, certificates of deposit issued by or accounts of\n(1) a bank, trust company or national bank having a principal, branch or\ntrust office in this state, (2) a banking corporation organized under\nthe laws of the United States or of any state thereof whose deposits are\ninsured by an agency of the United States, or (3) an agency or branch\nlocated within the United States of a foreign banking corporation with\ntotal worldwide bank assets in excess of one billion dollars.\n  12-b. Advances of federal funds to designated depositaries, provided\nsuch advances are made on the condition that they be repaid on the next\nbusiness day following the day on which the advance is made. For\npurposes of this subdivision and subdivision twelve of this section, the\nterm "federal funds" shall mean funds which a savings bank has on\ndeposit at a depositary which are exchangeable for funds on deposit at a\nfederal reserve bank; and the term "business day" shall mean any day on\nwhich the savings bank, the depositary and the federal reserve bank\nwhere the funds are on deposit are all open for general business.\n  13. Bonds of any corporation which at the time of such investment is\nincorporated under the laws of the United States or any state thereof,\nor the District of Columbia, and transacting the business of supplying\nelectrical energy or artificial gas, or natural gas purchased from\nanother corporation and supplied in substitution for, or in mixture\nwith, artificial gas, for light, heat, power and other purposes, or\ntransacting any or all of such business, provided at least eighty per\ncentum of the gross operating revenues of any such corporation are\nderived from such business, subject to the following conditions:\n  (a) Such corporation shall have all franchises necessary to operate in\nterritory in which at least seventy-five per centum of its gross income\nis earned. Such corporation shall file with the superintendent of\nfinancial services and make public in each year a statement and a report\ngiving the income account covering the previous fiscal year and a\nbalance sheet showing in reasonable detail the assets and liabilities at\nthe end of the year.\n  (b) Either the outstanding full paid capital stock together with\npremiums thereon and the surplus of such corporation shall be not less\nthan two-thirds of the total debt secured by mortgage lien on any part\nor all of its property, or the outstanding full paid capital stock\ntogether with premiums thereon and surplus and unsecured debt not\nmaturing within five years and not in excess of fifty per centum of such\ncapital stock, premiums and surplus shall be equal to at least\nthree-fourths of the total debt secured by mortgage lien on any part or\nall of its property, provided, however, that in case of a corporation\nhaving no-par value shares, the amount of capital which such shares\nrepresent shall be the capital as shown by the books of the corporation.\n  (c) Such corporation shall have been in existence for a period of not\nless than eight fiscal years and at no time within such period of eight\nfiscal years next preceding the date of such investment shall said\ncorporation have failed to pay promptly and regularly the matured\nprincipal and interest of all its indebtedness direct, assumed or\nguaranteed, but the period of life of the corporation, together with the\nperiod of life of any predecessor corporation or corporations from which\na major portion of its property was acquired by consolidation, merger or\npurchase shall be considered together in determining the required\nperiod.\n  (d) For a period of five fiscal years next preceding such investment\nthe net earnings of such corporation shall have averaged per year not\nless than two times the average annual interest charges on its total\nfunded debt applicable to that period, and for the last fiscal year\npreceding such investment such net earnings shall have been not less\nthan twice the interest charges for a full year on its total funded debt\noutstanding at the time of such investment, and for such period the\ngross operating revenues of any such corporation shall have averaged per\nyear not less than two million dollars.\n  (e) In determining the qualifications of any bond under this\nsubdivision where a corporation shall have acquired its property or any\nsubstantial part thereof within five years immediately preceding the\ndate of such investment by consolidation or merger, or by the purchase\nof all or a substantial portion of the property of any other corporation\nor corporations, the gross operating revenues, net earnings, and\ninterest charges of the several predecessor or constituent corporations\nshall be consolidated and adjusted so as to ascertain whether the\nrequirements of paragraph (d) of this subdivision have been complied\nwith.\n  (f) Such bonds shall be (1) bonds secured by a first or refunding\nmortgage on property owned and operated, or controlled, by the\ncorporation issuing or assuming them, or underlying mortgage bonds\nsecured by a lien on property owned and operated, or controlled, by the\ncorporation issuing or assuming them, provided that such underlying\nmortgage bonds are to be refunded by a junior mortgage providing for\ntheir retirement, that the bonds under such junior mortgage comply with\nthe requirements of this subdivision, and that such underlying mortgage\nis either a closed mortgage or remains open solely for the issue of\nadditional bonds which are to be pledged under such junior mortgage and\nprovided that the aggregate principal amount of bonds secured by such\nfirst or refunding mortgage plus the principal amount of all the\nunderlying outstanding bonds shall not exceed two-thirds of the net\nvalue of the physical property owned or controlled as shown by the books\nof the owning corporation, and subject to the lien of such mortgage or\nmortgages securing the total mortgage debt and provided further, that if\na refunding mortgage, it must provide for the retirement on or before\nthe date of their maturity of all bonds secured by prior liens on the\nproperty, or (2) bonds, other than mortgage bonds, provided, that (a)\nfor a period of five fiscal years next preceding such investment the net\nearnings of such corporation shall have averaged per year not less than\ntwo and one-half times the average annual interest charges on its total\nfunded debt applicable to that period, and for the last fiscal year\npreceding such investment such net earnings shall have been not less\nthan two and one-half times the interest charges for a full year on its\ntotal funded debt outstanding at the time of such investment, and (b)\nthe capital stock together with premiums thereon and surplus of such\ncorporation shall not be less than two-thirds of its total funded debt\noutstanding, and (c) such bonds, if issued for a term longer than\nfifteen years, shall have been issued under an indenture containing a\ncovenant providing for the establishment of a sinking fund for the\nbenefit of such bonds whereby such bonds shall be redeemed at an annual\nrate of not less than two per centum of the largest principal amount of\ntheir issue at any one time outstanding, and (d) the mortgage bonds of\nsuch corporation, if any, shall qualify under the provisions of this\nsubdivision.\n  (g) (1) The gross operating revenues and expenses of a corporation for\nthe purposes of this subdivision shall be, respectively, the total\namount earned from the operation of, and the total expense of\nmaintaining and operating, all property owned and operated, or leased\nand operated, by such corporation, as determined by a system of accounts\nadopted by a federal, state or municipal public service commission,\npublic utility commission or other similar regulatory body. The gross\noperating revenues and expenses, as defined above, of subsidiary\ncompanies may be included, provided all the mortgage bonds and a\ncontrolling interest in stock or stocks of such subsidiary companies are\npledged as part security for the mortgage debt of the principal company.\nThe net value of any property shall be its value as shown by the books\nof the corporation less the amounts of any reserves for depreciation,\nretirement or amortization thereof. Property shall be deemed to be\ncontrolled by a corporation if such corporation shall own not less than\nninety per cent of the capital stock of the corporation owning such\nproperty.\n  (2) The net earnings of any corporation for the purposes of this\nsubdivision shall be the balance obtained by deducting from its gross\noperating revenues, its operating and maintenance expenses, taxes other\nthan federal and state income taxes, rentals and provision for renewals\nand retirements of the physical assets of the corporation, and by adding\nto said balance its income from securities and miscellaneous sources but\nnot, however, to exceed fifteen per centum of said balance. The term\nfunded debt shall be construed to mean all interest-bearing debt\nmaturing more than one year from date of issue.\n  (3) In the computation for the purposes of this subdivision of the\nratio of mortgage debt to net mortgaged property value there shall be\nexcluded from the amount of outstanding mortgage bonds the amount of any\ncash deposited with the trustee of the mortgage and held in trust\npursuant to the terms of such mortgage.\n  (h) Not more than twenty-five per centum of the assets of any savings\nbank shall be loaned on or invested in bonds of such electric and gas\ncorporations, and not more than two per centum of the assets of any\nsavings bank shall be invested in the bonds of any one such corporation,\nas authorized by this subdivision.\n  (i) As used in this subdivision, the term "bond" includes a note or\ndebenture.\n  14. Bonds of any corporation which at the time of such investment is\nincorporated under the laws of the United States or any state thereof,\nor the District of Columbia, and authorized to engage, and engaging, in\nthe business of furnishing telephone service in the United States,\nsubject to the following conditions:\n  (a) Such corporation shall have been in existence for a period of not\nless than eight fiscal years and at no time within such period of eight\nfiscal years next preceding the date of such investment shall said\ncorporation have failed to pay promptly and regularly the matured\nprincipal and interest of all its indebtedness direct, assumed, or\nguaranteed, but the period of life of the corporation, together with the\nperiod of life of any predecessor corporation or corporations from which\na major portion of its property was acquired by consolidation, merger or\npurchase, shall be considered together in determining the required\nperiod; and such corporation shall file with the superintendent of\nfinancial services and make public in each year a statement and a report\ngiving the income account covering the previous fiscal year and a\nbalance sheet showing in reasonable detail the assets and liabilities at\nthe end of the year.\n  (b) The outstanding full paid capital stock together with premiums\nthereon and the surplus of such corporation shall at the time of such\ninvestment be equal to at least two-thirds of the aggregate of its\nfunded debt and the total funded debt, exclusive of any such funded debt\nheld by such corporation, of every telephone corporation a majority of\nthe capital stock of which is owned by such corporation.\n  (c) For a period of five fiscal years next preceding such investment\nthe net earnings of such corporation shall have averaged per year not\nless than two and one-half times the average annual interest charges on\nits total debt applicable to that period, and for the last fiscal year\npreceding such investment such net earnings shall have been not less\nthan twice the interest charges for a full year on its total funded debt\noutstanding at the time of such investment, and for such period the\ngross operating revenues of any such corporation shall have averaged per\nyear not less than five million dollars.\n  (d) In determining the qualifications of any bond under this\nsubdivision where a corporation shall have acquired its property or any\nsubstantial part thereof within five years immediately preceding the\ndate of such investment by consolidation or merger, or by the purchase\nof all or a substantial portion of the property of any other corporation\nor corporations, the gross operating revenues, net earnings and interest\ncharges of the several predecessor or constituent corporations shall be\nconsolidated and adjusted so as to ascertain whether the requirements of\nparagraph (c) of this subdivision have been complied with.\n  (e) The gross operating revenues and expenses of a corporation for the\npurposes of this subdivision shall be, respectively, the total amount\nearned from the operation of, and the total expense of maintaining and\noperating, all property owned and operated, or leased and operated, by\nsuch corporation, as determined by a system of accounts adopted by the\nfederal communications commission, a public service commission, or\npublic utility commission, or other similar federal or state regulatory\nbody.\n  (f) The net earnings of any corporation for the purposes of this\nsubdivision shall be the balance obtained by deducting from its gross\noperating revenues, its operating and maintenance expenses, provision\nfor depreciation of the physical assets of the corporation, taxes other\nthan federal and state income taxes, rentals and miscellaneous charges,\nand by adding to said balance its income from securities and\nmiscellaneous sources but not, however, to exceed fifteen per centum of\nsaid balance. The term funded debt shall be construed to mean all\ninterest-bearing debt maturing more than one year from date of issue.\n  Whenever a corporation shall own a majority of the capital stock of\none or more other telephone corporations, the consolidated statements of\nall such telephone corporations shall be used in determining the amount\nof net earnings available for interest charges, and the amount of\ninterest charges, of such corporation.\n  (g) Not more than twenty-five per centum of the assets of any savings\nbank shall be loaned on or invested in bonds of such telephone\ncorporations, and not more than three per centum of the assets of any\nsavings bank shall be invested in the bonds of any one telephone\ncorporation, as authorized by this subdivision.\n  (h) As used in this subdivision, the term "bond" includes a note or\ndebenture.\n  15. Bonds, debentures, consolidated debentures or other obligations of\nany federal home loan bank or banks, or of Tennessee Valley Authority,\nand obligations of, or instruments issued by or fully guaranteed as to\nprincipal and interest by, the Federal National Mortgage Association, or\nFederal Home Loan Mortgage Corporation, and notes, bonds, debentures,\nmortgages and other evidences of indebtedness of the United States\nPostal Service.\n  16. Stock of a federal reserve bank in the amount necessary to qualify\nfor membership in such bank.\n  17. Stock of a federal home loan bank in the amount necessary to\nqualify for membership in such bank and in such additional amounts as\nare approved by the superintendent of financial services.\n  19. Securities of corporations which securities are made eligible for\ninvestment by savings banks by the superintendent of financial services.\n  20. Subject to such regulations and restrictions as the superintendent\nof financial services finds to be necessary and proper, (a) (1) any bond\nand mortgage insured by the federal housing commissioner, or for which a\ncommitment to insure has been made by the federal housing commissioner,\nor (2) any bond and mortgage guaranteed pursuant to the provisions of\nthe act of congress entitled the "Servicemen's Readjustment Act of\n1944", or (3) provided the mortgage is a first lien, any bond and\nmortgage at least twenty per centum of which is guaranteed pursuant to\nthe provisions of such act, or (4) a participation in any loan or a part\ninterest in any bond and mortgage, secured by real property, to the\nextent that the small business administration is committed to pay the\nprincipal and interest thereof; (b) any whole or part interest in any\nsuch bond and mortgage or in any whole or part interest in any such bond\nand mortgage, which bond and mortgage is held for the benefit of the\nholder or holders of a whole interest or part interests therein by any\nentity or entities with which a savings bank is authorized to\nparticipate pursuant to this paragraph, but no such investment shall be\nmade in any part interest which is junior or subordinate to any other\npart interest therein; (c) any bond secured by any such mortgage or\nmortgages, which mortgage is, or which mortgages are, held for the\nbenefit of the holder or holders of the bond or bonds secured thereby,\nby a savings bank or bank or trust company; and (d) any property\nimprovement note issued pursuant to the provisions of the national\nhousing act, provided the savings bank investing in such note shall have\nqualified for and received in connection therewith a contract of\ninsurance from the federal housing commissioner. A savings bank may\nreceive and hold such debentures as are issued in payment of any such\ninsurance. No law of this state prescribing or limiting the interest\nrate upon loans or advances of credit or prescribing a penalty for\nviolation thereof or prescribing the nature, amount or form of security\nor requiring security upon which loans or advances of credit may be made\nor prescribing or limiting the period for which loans or advances of\ncredit may be made or limiting the amount of any class of loans,\nadvances of credit or purchases which may be made shall be deemed to\napply to loans, advances of credit or purchases made or to loans\nacquired by purchase pursuant to this subdivision.\n  The provisions of subdivision six of this section, except those of\nparagraph (f) thereof, shall not apply to investments made pursuant to\nthis subdivision by any savings bank. Paragraphs (a), (b) and (c) of\nsection one of chapter eight hundred ninety-seven of the laws of\nnineteen hundred thirty-four as amended shall not apply to savings\nbanks. The term "bond", as used in this subdivision, includes a note.\nThe authority provided in this subdivision to invest in any bond and\nmortgage guaranteed pursuant to the provisions of the act of congress\nentitled the "Servicemen's Readjustment Act of 1944", shall include\nauthority to acquire title to real property in connection with investing\nin an installment contract for the sale of real property, so guaranteed,\nwhere the purchaser under such contract is in possession and control of\nthe property, and title is acquired by the savings bank solely as\nsecurity for the obligations of the purchaser.\n  21. (a) Subject to such regulations and restrictions as the\nsuperintendent of financial services finds to be necessary and proper:\n  (1) Stock and obligations, not otherwise eligible for investment by\nthe savings bank, of any corporation organized under any law of this\nstate for the purpose of acquiring, constructing, owning, maintaining,\noperating, selling or conveying a housing project or projects (not\nincluding hotels but including accommodations for retail stores, shops,\noffices and other community services reasonably incident to such\nprojects) located within this state, provided that all the stock and\nobligations of any such corporation have been or are originally issued\nto one or more savings banks of this state.\n  (1-a). Stock and obligations, not otherwise eligible for investment by\nthe savings bank, of any "subsidiary" of the New York state urban\ndevelopment corporation, as defined in the New York state urban\ndevelopment corporation act, provided that all the stock and obligations\nof any such subsidiary is or is to be owned by one or more savings banks\nof this state, or by such other owners of such stock and obligations as\nmay be approved by the superintendent of financial services.\n  (2) Corporate interest-bearing securities, other than those issued by\nany corporation organized under the laws of a foreign country except\nCanada whose securities are not registered with the United States\nSecurities and Exchange Commission or listed on a national securities\nexchange in accordance with the Securities Exchange Act of 1934, as\namended, and interest-bearing securities of any state in the United\nStates or of any public authority, commission or instrumentality\norganized under the laws of any state of the United States or of any\npolitical subdivision of any such state, not otherwise eligible for\ninvestment by the savings bank, which are not in default as to either\nprincipal or interest when acquired, provided that no investment shall\nbe made pursuant to this subparagraph (2) in the securities of any\ncorporation if the total direct liabilities of such corporation to the\nsavings bank exceed, or by the making of such investment will exceed,\nten per centum of the total direct liabilities of such corporation or\none per centum of the assets of the savings bank, whichever amount is\nless. The term "securities", as used in this subparagraph (2), means\nsuch bonds, notes, debentures and other obligations for payment of money\nas are negotiable, or conditional sale agreements, assignments of\nconditional sale agreements and participations therein which are issued\nor made by railroads for the purchase of rolling stock, and which have a\nmaturity of not less than five years from the date of issue or making,\nor, if issued or made in a series or repayable in installments, an\naverage maturity of not less than five years from the date of issue or\nmaking.\n  (b) No investment shall be made by a savings bank pursuant to\nsubparagraphs one and two of paragraph (a) of this subdivision if the\ntotal amount invested by it pursuant to such paragraph, together with\nthe total amount invested by it pursuant to any provisions of any law\nother than the banking law, exceeds, or by the making of such investment\nwill exceed, an amount equal to ten per centum of the assets of the\nsavings bank. An investment by a savings bank in a single subsidiary of\nthe New York state urban development corporation pursuant to\nsubparagraph one-a of paragraph a of this subdivision shall not exceed\none per centum of the assets or ten per centum of the net worth of such\nsavings bank, whichever is less, and the aggregate of all investments of\na savings bank in such subsidiaries and investments in securities\npursuant to subparagraph five of paragraph (a) of subdivision nine of\nthis section shall not exceed five per centum of the assets or fifty per\ncentum of the net worth of such savings bank, whichever is less. For the\npurposes of this paragraph, "net worth" of a savings bank shall mean the\nexcess of its assets at book value, less allocated reserves, over known\nliabilities.\n  (d) For the purposes of sections two hundred seventy-four, two hundred\neighty-five and four hundred thirty-five of this chapter, investments\nauthorized by this subdivision shall not be deemed investments in which\nsavings banks may legally invest, except that investments authorized by\nsubparagraph one-a of paragraph (a) of this subdivision shall be deemed\ninvestments in which savings banks may legally invest for the purposes\nof section three hundred seventy-nine of this chapter.\n  (e) For the purposes of section three hundred fifty-nine-f of the\ngeneral business law, investments authorized by sub-paragraph (2) of\nparagraph (a) of this subdivision shall not be deemed investments in\nwhich savings banks may legally invest.\n  * 21-a. Interest-bearing obligations payable in United States funds\nwhich at the time of investment are rated in one of the three highest\nrating grades by each rating service, designated by the superintendent\nof financial services, which has rated such obligations, provided that\nthe aggregate amount invested in the obligations of any single issuer\npursuant to this subdivision and pursuant to subparagraph (2) of\nparagraph (a) of subdivision twenty-one of this section may not exceed\none per centum of the assets of the savings bank, and provided further\nthat the aggregate amount invested in the interest-bearing obligations\nof any single issuer pursuant to this subdivision and pursuant to any\nprovision of this section specifically authorizing such investment, may\nnot exceed the percentage limitations contained in any such provision.\n  * NB Effective until notification of the superintendent of financial\nservices\n  * 21-a. Interest-bearing obligations payable in United States funds\nwhich at the time of investment meet the standards of creditworthiness\nestablished by regulation by the superintendent, provided that the\naggregate amount invested in the obligations of any single issuer\npursuant to this subdivision and pursuant to subparagraph (2) of\nparagraph (a) of subdivision twenty-one of this section may not exceed\none per centum of the assets of the savings bank, and provided further\nthat the aggregate amount invested in the interest-bearing obligations\nof any single issuer pursuant to this subdivision and pursuant to any\nprovision of this section specifically authorizing such investment, may\nnot exceed the percentage limitations contained in any such provision.\n  * NB Effective upon notification of the superintendent of financial\nservices\n  22. Certificates of investment in savings banks life insurance fund.\n  23. Certificates representing advances to the surplus fund of its life\ninsurance department.\n  24. Obligations issued or guaranteed by the international bank for\nreconstruction and development.\n  24-a. Obligations issued or guaranteed by the inter-American\ndevelopment bank.\n  24-b. Obligations issued or guaranteed by the Asian development bank.\n  24-c. Obligations issued or guaranteed by the African Development\nBank.\n  24-d. Obligations guaranteed by the youth facilities project guarantee\nfund and participations therein.\n  24-e. Obligations issued or guaranteed by the International Finance\nCorporation.\n  25. Obligations of the Dominion of Canada, or of any province or city\nof the Dominion of Canada, as provided in this subdivision. (a)\nObligations of the Dominion of Canada, or those for which the faith of\nthe Dominion of Canada is pledged to provide for the payment of the\ninterest and principal, provided that the principal and interest of such\nobligations are payable in United States funds.\n  (b) Obligations of any province of the Dominion of Canada or those for\nwhich the faith of any such province is pledged to provide for the\npayment of the interest and principal upon which there is no default and\nupon which there has been no default for more than ninety days;\nprovided, that within ten years immediately preceding the investment\nsuch province has not been in default for more than ninety days in the\npayment of any part of principal or interest of any debt duly authorized\nby the legislature of such province; and provided that the principal and\ninterest of such obligations are payable in United States funds; and\nprovided further, that if at any time the net debt, as hereinafter\ndefined, of any such province shall exceed twenty-five per centum of the\nvaluation of real property in such province for the purposes of\ntaxation, the obligations of such province shall, thereafter, and until\nsuch net debt shall be reduced to twenty-five per centum of the\nvaluation of real property in such province for the purposes of\ntaxation, cease to be an authorized investment for the moneys of savings\nbanks. The term "net debt" as used in this paragraph shall mean the\naggregate of all direct obligations funded and unfunded of any such\nprovince and all other obligations excluding any on which interest is\nbeing paid out of other than the ordinary revenues of such province;\nless sinking funds applicable to such obligations.\n  (c) Obligations of any city in Canada, provided that said city has a\npopulation, according to the last federal census of Canada next\npreceding said investment, of not less than one hundred fifty thousand\ninhabitants, and has not, within twenty-five years preceding said\ninvestment, defaulted for more than one hundred and twenty days in the\npayment of any part either of principal or interest of any bond, note,\nor other evidence of indebtedness, provided that the indebtedness of\nsuch city does not exceed the limitations imposed by paragraph (c) of\nsubdivision five of this section if applicable; and provided further\nthat the principal and interest of such obligations are payable in\nUnited States funds. No obligations of any such city shall be an\nauthorized investment for savings banks unless such city shall have\npower to levy taxes on the taxable real property therein or to require a\nlevy thereon by municipalities within its area in either case for the\npayment of such obligation without limitation of rate or amount. The\nterm "city" as used in this paragraph and in paragraph (d) of\nsubdivision five of this section shall include The Municipality of\nMetropolitan Toronto and any other similar corporation in Canada, and\nthe power to require a levy by municipalities within its area shall be\ndeemed to be a power to levy taxes within the meaning of such last\nmentioned paragraph.\n  (d) Not more than ten per centum of the assets of any savings banks\nshall be invested in the obligations defined in this subdivision, and\nnot more than two per centum of such assets shall be invested in the\nobligations of any province, nor more than two per centum of such assets\nin the obligations of any city, as authorized by this subdivision.\n  26. Subject to such regulations and restrictions as the superintendent\nof financial services finds to be necessary and proper:\n  (a) Preferred stock of any corporation, created or existing under the\nlaws of the United States or of any state, district or territory\nthereof, provided (1) the net earnings of such corporation available for\nits fixed charges for a period of five fiscal years next preceding the\ndate of investment by such savings bank shall have averaged per year not\nless than one and one-half times the sum of the following, computed as\nof the date of such investment: its annual fixed charges, if any, its\nannual maximum contingent interest, if any, and its annual preferred\ndividend requirements; and (2) during either of the last two years of\nsuch period such net earnings shall have been not less than one and\none-half times the sum of its fixed charges, contingent interest and\npreferred dividend requirements for such year. As used in this paragraph\n(a), the term "dividend requirements" shall be construed to mean\ncumulative or non-cumulative dividends whether or not paid.\n  (b) Guaranteed stock of any corporation created or existing under the\nlaws of the United States or of any state, district or territory\nthereof, provided (1) the net earnings of the guaranteeing corporation\navailable for its fixed charges for a period of five fiscal years next\npreceding the date of investment by such savings bank shall have\naveraged per year not less than one and one-half times its annual fixed\ncharges computed as of the time of such investment; and (2) during\neither of the last two years of such period net earnings shall have been\nnot less than one and one-half times its fixed charges for such year.\n  (c) Common stock of any corporation created or existing under the laws\nof the United States or of any state, district or territory thereof,\nprovided such common stock is registered on a national securities\nexchange, as provided in an act of congress of the United States,\nentitled the "Securities Exchange Act of 1934", approved June sixth,\nnineteen hundred thirty-four, as amended.\n  (e) Stock or shares of any investment company, as defined by, and\nwhich is registered under, an act of congress of the United States,\nentitled the "Investment Company Act of 1940", approved August\ntwenty-second, nineteen hundred forty, as amended, provided such company\nmay invest only in such investments as are eligible for savings banks,\nincluding, without limitation, investments made eligible for savings\nbanks by paragraphs (a), (b) and (c) of this subdivision but excluding\ninvestments made eligible for savings banks by subdivisions five-a, six,\neight, nine, sixteen, seventeen, eighteen, twenty-two and twenty-three\nof this section, provided that (i) investment restrictions based upon\nthe assets, surplus fund, net worth or other features of the condition\nor operation of the savings bank shall not be applicable to such\ninvestment company, (ii) the amount of stock of any corporation which\nmay be held by such investment company shall not exceed five per centum\nof the number of shares of stock of such corporation outstanding at the\ntime of investment by such investment company, and (iii) at the time the\ninvestment is made, the percentage of assets that a savings bank may\ninvest in the stock or shares of the investment company shall not exceed\nthe limitation, if any, applicable to a savings bank's investment in any\nindividual security included in the investment company's portfolio.\nNothing contained in the provisions of this chapter shall prevent an\nofficer, director, clerk or other employee of any bank or trust company\nfrom being an officer, director or employee of any such investment\ncompany.\n  (ee) Stock of any "bank service corporation", as such term is defined\nby an act of congress of the United States, entitled the "Bank Service\nCorporation Act", approved October twenty-third, nineteen hundred\nsixty-two, as such act may be amended from time to time, provided such\ninvestment shall have been authorized by the superintendent.\n  (eee) Stock or shares of any investment company, as defined by, and\nwhich is registered under, an act of Congress of the United States,\nentitled the "Investment Company Act of 1940", approved August\ntwenty-second, nineteen hundred forty, as amended, provided: (1) such\ncompany is managed, advised and has its assets held at a bank or trust\ncompany which is supervised and examined by the superintendent; (2) all\nof the stock and shares, other than stock or shares required by law to\nqualify directors, of such investment company are or are to be owned by\nsavings banks, savings and loan associations and pension trusts, funds,\nplans or agreements participated in by one or more savings banks or\nsavings and loan associations to provide retirement benefits, for any or\nall of its or their active officers and employees; and (3) such\ninvestment company may invest only in investments as are made eligible\nfor savings banks by subdivisions one, two, three, four and fifteen of\nthis section. For the purpose of investments authorized by this\nparagraph, no investment shall be made by a savings bank if the total\namount invested by it exceeds, or by the making of the investment will\nexceed, an amount equal to thirty-five percent of its assets.\n  (f) For the purposes of this subdivision, (1) the term "net earnings\navailable for fixed charges" shall mean net income after deducting\noperating and maintenance expenses, taxes other than federal and state\nincome taxes, depreciation and depletion, but excluding extraordinary\nnon-recurring items of income or expense appearing in the regular\nfinancial statements of the issuing, assuming or guaranteeing\ncorporation; provided, however, that in the case of preferred stocks,\nfederal and state income taxes shall also be deducted in determining net\nearnings available for fixed charges; (2) the term "fixed charges" shall\ninclude interest on funded and unfunded debt, amortization of debt\ndiscount and rentals for leased properties; (3) if net earnings are\ndetermined in reliance upon consolidated earnings statements of parent\nand subsidiary corporations, such net earnings shall be determined after\nprovision for income taxes of subsidiaries and after proper allowance\nfor minority stock interest, if any, and the required coverage of fixed\ncharges shall be computed on a basis including fixed charges and\npreferred dividends of subsidiaries other than those payable by such\nsubsidiaries to the parent corporation or to any other of such\nsubsidiaries; and (4) in applying the earnings tests under this\nsubdivision to any issuing, assuming, or guaranteeing corporation, where\nsuch corporation shall have acquired its property or any substantial\npart thereof within the five years immediately preceding the date of\ninvestment by consolidation or merger, or by the purchase of all or a\nsubstantial portion of any other corporation or corporations, or shall\nhave acquired the assets of any unincorporated business enterprise by\npurchase or otherwise, the gross operating income, net earnings and\ninterest charges of the several predecessor or constitutent corporations\nor enterprises shall be consolidated and adjusted so as to ascertain\nwhether or not the applicable requirements of this subdivision have been\ncomplied with.\n  (g) No investment shall be made by a savings bank pursuant to\nparagraphs (a), (b) or (c) of this subdivision in the stock of any\ncorporation if the total investment by the savings bank in the stock of\nsuch corporation exceeds, or by the making of such investment will\nexceed (1) in amount, one per centum of the assets of the savings bank,\nor (2) in number of shares, two per centum of the total issued and\noutstanding shares of stock of such corporation.\n  (h) No investment shall be made by a savings bank pursuant to\nparagraph (a), (b) or (c) of this subdivision if the total aggregate\namount so invested by it exceeds, or by the making of such investment\nwill exceed, an amount equal to seven and one half per centum of its\nassets.\n  (i) No investment in an investment company shall be made by a savings\nbank pursuant to paragraph (e) of this subdivision if the total amount\ninvested by it in all such investment companies pursuant to such\nparagraph exceeds, or by the making of such investment will exceed, an\namount equal to seven and one-half per centum of its assets.\n  (k) For the purposes of sections two hundred seventy-four, two hundred\neighty-five and four hundred thirty-five of this chapter, investments\nauthorized by this subdivision shall not be deemed investments in which\nsavings banks may legally invest.\n  (l) For the purposes of any other statutes which restrict investments\nto securities authorized for investment by savings banks, including but\nnot limited to section ninety-two of the membership corporation law,\nsection 9.27 of the mental hygiene law and sections fifteen and\ntwenty-five-a of the workmen's compensation law, investments authorized\nby this subdivision, shall not be deemed investments in which savings\nbanks may legally invest.\n  26-a. (1) Subject to such regulations and restrictions as the\nsuperintendent of financial services finds to be necessary and proper,\nthe stock or obligations of one or more corporations engaged, or to be\nengaged, primarily in originating and servicing mortgages on real\nproperty, provided, however, that if the savings bank shall own less\nthan all of the stock and obligations of any such corporation, the\nremainder of the stock, excluding directors' qualifying shares, if any,\nand obligations of such corporation shall be owned by one or more\nsavings banks or savings and loan associations located in this state.\n  (2) No investment shall be made pursuant to this subdivision unless\nthe corporation in which such investment is to be made shall have\nfurnished satisfactory assurance to the superintendent that it will be\nsubject to examination by him to the same extent as if the business of\nsuch corporation were being conducted by the savings bank on its own\npremises. No investment shall be made by a savings bank pursuant to this\nsubdivision if the total amount so invested by it exceeds, or by the\nmaking of such investment will exceed, an amount equal to one per centum\nof its assets.\n  (4) For the purposes of any other provisions of law which restrict\ninvestments to those in which savings banks may legally invest, other\nthan subdivision five of section three hundred seventy-nine of this\nchapter, investments authorized by this subdivision shall not be deemed\ninvestments in which savings banks may legally invest.\n  27. For the purposes of this section the term "state", when used\ngenerally to include every state of the United States, includes also the\ncommonwealth of Puerto Rico, and the term "city", when used generally to\ninclude cities in every state of the United States, includes also any\nmunicipality of the commonwealth of Puerto Rico.\n  28. Bonds, notes or evidences of indebtedness issued by a corporation\norganized for the purpose of undertaking, constructing, owning,\nmaintaining, operating, selling or conveying a slum clearance and\nredevelopment project, located within this state, pursuant to title one\nof an act of congress of the United States approved July fifteenth,\nnineteen hundred forty-nine, entitled the "Housing Act of 1949," or\norganized pursuant to articles five and six of the private housing\nfinance law, and secured by a first mortgage upon all of the real\nproperty owned by the corporation. A mortgage loan made under this\nsubdivision may equal but shall in no event exceed ninety per centum of\nthe cost as estimated prior to the completion of the project, or ninety\nper centum of the total actual final cost, if that shall be greater than\nthe estimated cost, but in no event, shall such mortgage loan exceed\nninety per centum of the appraised value of the completed project\ndetermined pursuant to subdivision six of this section. The estimated\ncost and the total actual final cost shall be certified as to\nreasonableness and correctness by an independent engineering\norganization and shall include the cost to the corporation of the lands\nowned by the corporation, the cost of demolition, the cost of\nconstructing the improvements, including planning, designing,\nengineering and landscaping, the cost of relocation of tenants, interest\nand other carrying charges during the period of acquisition and of\nconstruction, all other costs necessarily incurred and properly\nattributable to undertaking, constructing and completing the project,\nand an allowance for working capital which shall not exceed an amount\nequal to three per centum of the estimated cost or of the total actual\nfinal cost of the project if that shall be greater than the estimated\ncost. A mortgage loan made under this subdivision may be participated in\nby one or more savings banks. An agreement setting forth the manner in\nwhich the participating banks shall administer the mortgage and acquire\nreal estate, if any, shall be executed on behalf of each bank by two\npersons appointed by the board of trustees of such bank. Investments\nmade by any savings bank in mortgage loans pursuant to this subdivision\nand pursuant to paragraph (h) of subdivision six of this section shall\nnot, in the aggregate, exceed ten per centum of the assets or an amount\nequal to the surplus fund and undivided profits and surplus reserve of\nsuch savings bank, whichever is less, and shall be included in the\ncomputation of permissive investment in mortgage loans pursuant to\nparagraph (d) of subdivision six of this section. Investments in such\nmortgage loans shall be subject to such regulations and restrictions as\nthe superintendent of financial services finds to be necessary and\nproper.\n  28-a. Such bonds or other evidences of indebtedness issued or\nguaranteed by the State of Israel as are approved by the comptroller of\nthe currency for investment by national banks; provided, however, that\nthe principal and interest payable thereon shall be payable in United\nStates dollars; and provided that such investments may not exceed in the\naggregate five percent of the bank's capital deposits, undivided\nprofits, surplus and reserves.\n  28-b. Such acquisitions and leases of personal property as are\nauthorized to be made by commercial banks by subdivision twelve of\nsection ninety-six of this chapter, subject to those limitations\napplicable to such investments in the case of banks or trust companies.\n  29. Subject to such restrictions as the superintendent of financial\nservices may prescribe, stock or other equity interest in one or more\nsmall business investment companies, as authorized pursuant to the\nprovisions of an act of congress entitled "Small Business Investment Act\nof 1958," as amended, or in any entity established to invest solely in\nsuch small business investment companies, except that in no event shall\nthe total amount of such investments exceed: (a) for a stock form\nsavings bank five percent of its capital stock, surplus fund and\nundivided profits; or (b) for a non-stock savings bank five percent of\nits net worth.\n  30. Alternative investment authority of savings banks to invest in\ncertain securities. Notwithstanding the limitations contained in\nsubdivision one, two, three, four, five, seven, seven-a, ten, eleven,\nthirteen, fourteen, fifteen, nineteen, twenty-one-a, twenty-four,\ntwenty-four-a, twenty-four-b, twenty-four-c, twenty-five, twenty-six,\ntwenty-seven, twenty-eight-a, or subparagraph two of paragraph (a) or\nparagraph (b) of subdivision twenty-one of this section, and subject to\nsuch limitations as the superintendent of financial services shall\nadopt, a savings bank shall be authorized to invest in such debt\nsecurities as are not in default as to either principal or interest when\nacquired, and in such equity securities, in both cases as would be\nacquired by prudent persons of discretion and intelligence in such\nmatters who are seeking a reasonable income and preservation of their\ncapital.\n  Without limiting its authority hereunder, the superintendent of\nfinancial services shall adopt regulations to require that any savings\nbank which shall elect to make investments pursuant to this subdivision\nshall have first established an investment committee of its board of\ntrustees to supervise and monitor the investment activities exercisable\npursuant to the authority granted by this subdivision, the majority of\nthe members of which shall be trustees who are not also officers or\nemployees of such savings bank.\n  The superintendent of financial services shall, in addition, adopt\nregulations to require that no savings bank, in making investments\npursuant to this subdivision shall (either before or after the making of\nsuch investments) control, as the superintendent of financial services\nshall define the term "control", the issuer of any such securities\nacquired by such savings bank.\n  For purposes of any other law establishing or limiting the investments\nof any person or entity to those investments which are permitted for\nsavings banks, the investments authorized by this subdivision shall not,\nby virtue of this subdivision alone, be deemed investments in which a\nsavings bank may legally invest.\n  31. Subject to such regulations as the superintendent of financial\nservices may promulgate, investments which do not qualify under any of\nthe preceding subdivisions of this section, provided that:\n  (a) No investment shall be made by a savings bank pursuant to this\nsubdivision if the amount of such investment exceeds one per centum of\nthe assets of the savings bank, or if the aggregate amount of all such\ninvestments by a savings bank exceeds, or by the making of such\ninvestment will exceed, five per centum of its assets;\n  (b) No investment shall be made by a savings bank in the equity\nsecurities of any one issuer pursuant to this subdivision if the\naggregate amount invested by it pursuant to this subdivision together\nwith the amount invested in the equity securities of such issuer\npursuant to any other provision of law exceeds, or by the making of such\ninvestment will exceed, one per centum of the assets of the savings\nbank, and no investment shall be made by a savings bank in a loan to, or\nin the debt securities of, any one issuer pursuant to this subdivision,\nif the aggregate amount invested by it pursuant to this subdivision\ntogether with the amount invested in a loan to, or in the debt\nsecurities of, such issuer pursuant to any other provision of law\nexceeds, or by the making of such investment will exceed, one per centum\nof the assets of the savings bank;\n  (c) This subdivision shall not be deemed to alter any provision of\nthis chapter limiting the aggregate amount which may be invested in any\nclass of loan or investment;\n  (e) For the purposes of this subdivision, "net worth" of a savings\nbank shall mean the excess of its assets at book value, less allocated\nreserves, over known liabilities; and\n  (f) For the purposes of sections two hundred seventy-four, two hundred\neighty-five and four hundred thirty-five of this chapter, section three\nhundred fifty-nine-f of the general business law, and any other\nprovisions of law which restrict investments to those in which savings\nbanks may legally invest, other than subdivision six of section three\nhundred seventy-nine of this chapter, investments authorized by this\nsubdivision shall not be deemed investments in which savings banks may\nlegally invest.\n