Document:

<PAGE>   1
EXHIBIT 4.2                                                    Charter No. 5889

                              FEDERAL STOCK CHARTER

                                       FOR

                        ASTORIA FEDERAL SAVINGS AND LOAN
                                   ASSOCIATION

                           Section 1. Corporate Title.

         The full corporate  title of the institution is Astoria Federal Savings
and Loan Association (the "ASSOCIATION").

                               Section 2. Office.

         The home  office  shall be located at 37-16 30th  Avenue,  Long  Island
City, New York 11103, in the county of Queens, State of New York.

                              Section 3. Duration.

         The duration of the ASSOCIATION is perpetual.

                         Section 4. Purpose and Powers.

         The  purpose of the  ASSOCIATION  is to pursue any or all of the lawful
objectives of a federal  capital stock  savings and loan  association  chartered
under  Section 5 of the Home  Owners'  Loan Act and to exercise all the express,
implied,  and incidental  powers  conferred  thereby and by all acts  amendatory
thereof and  supplemental  thereto,  subject to the Constitution and laws of the
United  States as they are now in effect,  or as they may  hereafter be amended,
and subject to all lawful and applicable rules,  regulations,  and orders of the
Office of Thrift Supervision ("Office") or any successor thereto.

                            Section 5. Capital Stock.

         The total  number of shares of all classes of the  capital  stock which
the ASSOCIATION has authority to issue is forty million  (40,000,000),  of which
thirty-five  million  (35,000,000)  shall be common  stock,  par value $1.00 per
share and of which five million  (5,000,000) shall be preferred stock, par value
$1.00 per share. The shares may be issued from time to time as authorized by the
Board of Directors without further approval of shareholders  except as otherwise
provided in this  Section 5 or to the extent  that such  approval is required by
governing law, rule, or regulation.  The  consideration  for the issuance of the
shares  shall be paid in full before  their  issuance and shall not be less than
the par value. Neither promissory notes nor future services

<PAGE>   2

shall  constitute  payment or part  payment  for the  issuance  of shares of the
ASSOCIATION.  The  consideration  for the  shares  shall  be cash,  tangible  or
intangible  property (to the extent direct  investment in such property would be
permitted),  labor or services  actually  performed for the ASSOCIATION,  or any
combination of the foregoing. In the absence of actual fraud in the transaction,
the value of such property,  labor,  or services,  as determined by the Board of
Directors  of the  ASSOCIATION,  shall  be  conclusive.  Upon  payment  of  such
consideration,  such shares shall be deemed to be fully paid and  nonassessable.
In the case of a stock  dividend,  that part of the  surplus of the  ASSOCIATION
which is  transferred  to stated  capital upon the issuance of shares as a share
dividend shall be deemed to be the consideration for their issuance.

         Except for shares  issuable in  connection  with the  conversion of the
ASSOCIATION  from the mutual to the stock form of  capitalization,  no shares of
capital stock (including shares issuable upon conversion,  exchange, or exercise
of other  securities)  shall be issued,  directly or  indirectly,  to  officers,
directors,  or controlling  persons of the  ASSOCIATION  other than as part of a
general  public  offering or as  qualifying  shares to a director,  unless their
issuance  or the plan under  which they would be issued has been  approved  by a
majority of the total votes eligible to be cast at a legal meeting.

         Nothing contained in this Section 5 (or in any  supplementary  sections
hereto)  shall  entitle the  holders of any class or series of capital  stock to
vote as a separate class or series or to more than one vote per share: Provided,
that this restriction on voting separately by class or series shall not apply:

                         (i) To any provision  which would authorize the holders
         of preferred stock,  voting as a class or series, to elect some members
         of the Board of Directors,  less than a majority thereof,  in the event
         of  default  in the  payment  of  dividends  on any  class or series of
         preferred stock;

                        (ii) To any provision which would require the holders of
         preferred stock,  voting as a class or series, to approve the merger or
         consolidation of the ASSOCIATION with another  corporation or the sale,
         lease,  or conveyance  (other than by mortgage or pledge) of properties
         or business in exchange for securities of a corporation  other than the
         ASSOCIATION if the preferred  stock is exchanged for securities of such
         other  corporation:  provided,  That  no  provision  may  require  such
         approval for transactions undertaken with the assistance or pursuant to
         the direction of the Office, the Federal Deposit Insurance Corporation,
         or the Resolution Trust Corporation;

                       (iii) To any amendment which would  adversely  change the
         specific  terms of any class or series of capital stock as set forth in
         this Section 5 (or in any supplementary sections hereto), including any
         amendment  which would  create or enlarge  any class or series  ranking
         prior thereto in rights and  preferences.  An amendment which increases
         the  number of  authorized  shares  of any  class or series of  capital
         stock,  or  substitutes  the  surviving  ASSOCIATION  in  a  merger  or
         consolidation  for the ASSOCIATION,  shall not be considered to be such
         an adverse change.

<PAGE>   3

         A  description  of the  different  classes  and  series (if any) of the
ASSOCIATION's  capital  stock  and a  statement  of the  designations,  and  the
relative rights, preferences, and limitations of the shares of each class of and
series (if any) of capital stock are as follows:

         A.       Common Stock. Except as provided in this Section 5 (or in any
         supplementary  sections  hereto) the holders of the common stock shall
         exclusively  possess all voting power. Each holder of shares of common
         stock  shall be  entitled  to one vote  for  each  share  held by such
         holder.

                  Whenever there shall have been paid, or declared and set aside
         for payment,  to the holders of the outstanding  shares of any class of
         stock  having  preference  over the common  stock as to the  payment of
         dividends,  the full  amount  of  dividends  and of  sinking  fund,  or
         retirement  fund, or other retirement  payments,  if any, to which such
         holders are  respectively  entitled in  preference to the common stock,
         then  dividends  may be paid on the  common  stock  and on any class or
         series of stock entitled to  participate  therewith as to dividends out
         of any assets legally available for the payment of dividends.

                  In the event of any liquidation, dissolution, or winding up of
         the  ASSOCIATION,  the holders of the common  stock (and the holders of
         any class or series of stock  entitled to  participate  with the common
         stock in the  distribution of assets) shall be entitled to receive,  in
         cash  or  in  kind,  the  assets  of  the  ASSOCIATION   available  for
         distribution  remaining  after: (i) payment or provision for payment of
         the  ASSOCIATION's   debts  and  liabilities;   (ii)  distributions  or
         provision for  distributions in settlement of its liquidation  account;
         and (iii)  distributions  or provision for  distributions to holders of
         any class or series of stock having preference over the common stock in
         the liquidation,  dissolution,  or winding up of the ASSOCIATION.  Each
         share of common  stock  shall have the same  relative  rights as and be
         identical in all respects with all the other shares of common stock.

         B.  Preferred  Stock.  The  ASSOCIATION  may  provide in  supplementary
         sections  to its charter for one or more  classes of  preferred  stock,
         which shall be  separately  identified.  The shares of any class may be
         divided  into  and  issued  in  series,  with  each  series  separately
         designated so as to  distinguish  the shares thereof from the shares of
         all other  series and  classes.  The terms of each series  shall be set
         forth in a supplementary section to the charter. All shares of the same
         class shall be identical except as to the following relative rights and
         preferences,  as to which  there may be  variations  between  different
         series:

                  (a)      The distinctive serial designation and the number of
         shares constituting such series;

                  (b)      The dividend rate or the amount of dividends to be
          paid on the shares of such series,  whether  dividends  shall be
          cumulative  and,  if so, from which  date(s), the payment date(s)for
          dividends, and the participating or other special rights, if any, with
          respect to dividends;

<PAGE>   4

                  (c)      The voting powers, full or limited, if any, of the
         shares of such series;

                  (d)      Whether the shares of such series shall be redeemable
         and, if so, the price(s) at which,  and the terms and  conditions on
         which, such shares may be redeemed;

                  (e)      The amount(s) payable upon the shares of such series
         in the event of voluntary or involuntary liquidation, dissolution, or
         winding up of the ASSOCIATION;

                  (f) Whether the shares of such series shall be entitled to the
         benefit of a sinking or  retirement  fund to be applied to the purchase
         or  redemption of such shares,  and if so entitled,  the amount of such
         fund and the manner of its application, including the price(s) at which
         such shares may be redeemed or  purchased  through the  application  of
         such fund;

                  (g)  Whether the shares of such  series  shall be  convertible
         into,  or  exchangeable  for,  shares of any other  class or classes of
         stock of the  ASSOCIATION  and, if so, the  conversion  price(s) or the
         rate(s) of exchange, and the adjustments thereof, if any, at which such
         conversion or exchange may be made,  and any other terms and conditions
         of such conversion or exchange;

                  (h)      The price or other consideration for which the shares
         of such series shall be issued; and

                  (i) Whether the shares of such  series  which are  redeemed or
         converted  shall have the status of authorized  but unissued  shares of
         serial  preferred  stock and  whether  such  shares may be  reissued as
         shares of the same or any other series of serial preferred stock.

         Each share of each series of serial preferred stock shall have the same
relative rights as and be identical in all respects with all the other shares of
the same series.

         The Board of Directors shall have authority to divide,  by the adoption
of supplementary charter sections,  any authorized class of preferred stock into
series,  and, within the limitations set forth in this section and the remainder
of this charter,  fix and determine the relative  rights and  preferences of the
shares of any series so established.

         Prior to the issuance of any preferred  shares of a series  established
by a  supplementary  charter  section  adopted  by the Board of  Directors,  the
ASSOCIATION  shall  file with the  Secretary  of the Office a dated copy of that
supplementary  section of this charter  establishing  and designating the series
and fixing and determining the relative rights and preferences thereof.

                          Section 6. Preemptive Rights.

         Holders of the capital stock of the  ASSOCIATION  shall not be entitled
to preemptive  rights with respect to any shares of the ASSOCIATION which may be
issued.

                         Section 7. Liquidation Account.

<PAGE>   5

         Pursuant to the  requirements  of the Office's  regulations  (12 C.F.R.
563b.3),  the ASSOCIATION shall establish and maintain a liquidation account for
the benefit of its savings  account  holders as of December 31, 1992  ("eligible
savers").  In the event of a complete  liquidation of the ASSOCIATION,  it shall
comply with such  regulations  with respect to the amount and the  priorities on
liquidation of each of the  ASSOCIATION's  eligible saver's inchoate interest in
the liquidation account, to the extent it is still in existence:  Provided, That
an eligible  saver's  inchoate  interest in the  liquidation  account  shall not
entitle  such   eligible   saver  to  any  voting  rights  at  meetings  of  the
ASSOCIATION's shareholders.

            Section 8. Certain Provisions Applicable for Five Years.

         Notwithstanding  anything  contained  in the  ASSOCIATION's  charter or
bylaws to the contrary, for a period of five years from the date of consummation
of the  conversion of the  ASSOCIATION  from mutual to stock form, the following
provisions shall apply:

         A.  Beneficial  Ownership  Limitation.  No  person  shall  directly  or
         indirectly offer to acquire or acquire the beneficial ownership of more
         than 10 percent of any class of any equity security of the ASSOCIATION.
         This  limitation  shall  not  apply  to  a  transaction  in  which  the
         ASSOCIATION  forms a holding company in conjunction  with a conversion,
         or  thereafter,  if such  formation is without change in the respective
         beneficial ownership interests of the ASSOCIATION's  shareholders other
         than pursuant to the exercise of any  dissenter  and appraisal  rights,
         the  purchase of shares by  underwriters  in  connection  with a public
         offering,  or the purchase of shares by a tax-qualified  employee stock
         benefit  plan  which is exempt  from the  approval  requirements  under
         Section 574.3(c)(1)(vi) of the Office's Regulations.

                  In the event  shares are acquired in violation of this Section
         8, all shares  beneficially  owned by any person in excess of 10% shall
         be  considered  "excess  shares"  and  shall not be  counted  as shares
         entitled  to vote and shall not be voted by any  person or  counted  as
         voting  shares  in  connection  with  any  matters   submitted  to  the
         shareholders for a vote.

                  For the purposes of this Section 8, the following  definitions
         apply:

                         (i) The term "person"  includes an individual,  a group
         acting in concert,  a corporation,  a partnership,  an  association,  a
         joint  stock  company,  a trust,  any  unincorporated  organization  or
         similar company,  a syndicate or any other group formed for the purpose
         of  acquiring,  holding or  disposing of the equity  securities  of the
         ASSOCIATION.

                        (ii) The term  "offer"  includes  every  offer to buy or
         otherwise acquire,  solicitation of an offer to sell, tender offer for,
         or request or  invitation  for  tenders of, a security or interest in a
         security for value.

                       (iii)  The  term   "acquire"   includes   every  type  of
         acquisition,  whether effected by purchase,  exchange, operation of law
         or otherwise.

<PAGE>   6

                        (iv) The term  "acting  in  concert"  means (a)  knowing
         participation in a joint activity or conscious  parallel action towards
         a common goal whether or not pursuant to an express agreement, or (b) a
         combination  or pooling of voting or other  interests in the securities
         of  an  issuer  for  a  common   purpose   pursuant  to  any  contract,
         understanding,  relationship,  agreement or other arrangement,  whether
         written or otherwise.

         B.       Cumulative Voting Limitation. Shareholders shall not be
         permitted to cumulate their votes for the election of directors.

         C.       Call for Special Meetings. Special meetings of shareholders
         relating to  changes in control of the  ASSOCIATION  or  amendments to
         its charter  shall  be  called  only  at the  direction  of the  Board
         of Directors.

                              Section 9. Directors.

         The  ASSOCIATION  shall be under the direction of a Board of Directors.
The authorized number of directors, as stated in the ASSOCIATION's bylaws, shall
not be less than five nor more than 15 except when a greater  number is approved
by the Office.

                        Section 10. Amendment of Charter.

         Except as provided in Section 5, no  amendment,  addition,  alteration,
change,  or repeal of this charter shall be made,  unless such is first proposed
by the Board of Directors of the ASSOCIATION, then preliminarily approved by the
Office,  which  preliminary  approval  may be granted by the Office  pursuant to
regulations specifying pre-approved charter amendments,  and thereafter approved
by the  shareholders  by a majority of the total votes  eligible to be cast at a
legal meeting. Any amendment,  addition,  alteration,  change or repeal so acted
upon shall be  effective  upon  filing  with the Office in  accordance  with the
regulatory  procedures  or on such other  date as the Office may  specify in its
preliminary approval.

<PAGE>   7

         As adopted by the  ASSOCIATION's  members on November 10,  1993,  to be
effective  on the date the  ASSOCIATION  converts  from  mutual to stock form of
organization.

                                                   ASTORIA FEDERAL SAVINGS AND
                                                   LOAN ASSOCIATION

Attest:/S/ William K. Sheerin                      By:/S/ George L. Engelke,Jr.
       --------------------------------------         -------------------------
         Secretary                                            President

                                                   OFFICE OF THRIFT SUPERVISION

Attest:/S/ Nadine Y. Washington                    By:/S/ Thomas S. Laeffler
       -------------------------------------          --------------------------
       Corporate Secretary to the Office               Assistant Director for
                                                       Supervisory Operations

Declared effective on
the 18th day of November, 1993
    ----        --------<PAGE>   1
EXHIBIT 4.3

                                     BYLAWS

                                       OF

                  ASTORIA FEDERAL SAVINGS AND LOAN ASSOCIATION

              Amended and Restated Effective as of January 31, 1995
                       As Amended Effective July 17, 1996
                     As Amended Effective September 30, 1997
                     As Amended Effective September 30, 1998
                       As Amended Effective July 21, 1999
                       As Amended Effective April 24, 2000

<PAGE>   2

                                       2-

                                    BYLAWS OF

                  ASTORIA FEDERAL SAVINGS AND LOAN ASSOCIATION

                             ARTICLE I. HOME OFFICE

         The home office of Astoria Federal Savings and Loan  ("ASSOCIATION") is
37-16 30th Avenue, Long Island City, New York 11103.

                            ARTICLE II. SHAREHOLDERS

         Section  1. Place of  Meetings.  All annual  and  special  meetings  of
shareholders  shall  be held at the  administrative  office  of the  ASSOCIATION
located at One Astoria  Federal Plaza,  Lake Success,  New York or at such other
place in the State in which the principal  place of business of the  ASSOCIATION
is located as the board of directors may determine.

         Section  2.  Annual  Meeting.  A  meeting  of the  shareholders  of the
ASSOCIATION  for the election of directors and for the  transaction of any other
business of the ASSOCIATION shall be held annually within 120 days after the end
of the ASSOCIATION's fiscal year.

         Section 3. Special  Meetings.  For a period of five years from the date
of the  completion  of the  conversion of the  ASSOCIATION  from mutual to stock
form,  special meetings of the  shareholders  relating to a change in control of
the  ASSOCIATION  or to an  amendment of the Charter of the  ASSOCIATION  may be
called  only by the board of  directors.  Thereafter,  special  meetings  of the
shareholders  for any purpose or purposes,  unless  otherwise  prescribed by the
regulations of the Office of Thrift  Supervision  ("OTS"),  may be called at any
time by the chairman of the board, the president,  or a majority of the board of
directors,  and shall be called by the chairman of the board,  the  president or
the secretary upon the written request of the holders of not less than one-tenth
of all the outstanding capital stock of the ASSOCIATION  entitled to vote at the
meeting. Such written request shall state the purpose or purposes of the meeting
and shall be  delivered at the home office of the  ASSOCIATION  addressed to the
chairman of the board, the president or the secretary.

         Section 4. Conduct of Meetings.  Annual and special  meetings  shall be
conducted in accordance with the most current edition of Robert's Rules of Order
unless otherwise prescribed by regulations of the OTS or these bylaws. The board
of directors shall designate,  when present, either the chairman of the board or
president to preside at such meetings.

         Section 5. Notice of Meetings.  Written notice  stating the place,  day
and hour of the meeting and the purpose(s) for which the meeting is called shall
be  delivered  not fewer  than 20 nor more than 50 days  before  the date of the
meeting, either personally or by mail, by or at the

<PAGE>   3

                                       3-

direction of the chairman of the board,  the president,  the  secretary,  or the
directors calling the meeting, to each shareholder of record entitled to vote at
such  meeting.  If mailed,  such  notice  shall be deemed to be  delivered  when
deposited in the mail, addressed to the shareholder at the address as it appears
on the stock transfer books or records of the  ASSOCIATION as of the record date
prescribed  in Section 6 of this  Article II,  with  postage  prepaid.  When any
shareholders'  meeting,  either  annual or special,  is adjourned for 30 days or
more,  notice  of the  adjourned  meeting  shall  be  given as in the case of an
original  meeting.  It shall not be necessary to give any notice of the time and
place of any meeting  adjourned  for less than 30 days or of the  business to be
transacted at the meeting,  other than an  announcement  at the meeting at which
such adjournment is taken.

         Section  6.  Fixing of Record  Date.  For the  purpose  of  determining
shareholders  entitled to notice of or to vote at any meeting of shareholders or
any adjournment, or shareholders entitled to receive payment of any dividend, or
in order to make a determination  of shareholders  for any other proper purpose,
the board of  directors  shall fix in advance a date as the record  date for any
such determination of shareholders. Such date in any case shall be not more than
60 days and, in case of a meeting of shareholders,  not fewer than 10 days prior
to the date on which the  particular  action,  requiring such  determination  of
shareholders,  is to be taken. When a determination of shareholders  entitled to
vote at any meeting of  shareholders  has been made as provided in this section,
such determination shall apply to any adjournment.

         Section 7. Voting  Lists.  At least 20 days before each  meeting of the
shareholders, the officer or agent having charge of the stock transfer books for
shares  of the  ASSOCIATION  shall  make a  complete  list  of the  shareholders
entitled to vote at such meeting,  or any adjournment,  arranged in alphabetical
order,  with the  address  and the number of shares  held by each.  This list of
shareholders  shall be kept on file at the home  office of the  ASSOCIATION  and
shall be subject to  inspection  by any  shareholder  at any time  during  usual
business hours,  for a period of 20 days prior to such meeting.  Such list shall
also be produced and kept open at the time and place of the meeting and shall be
subject to the  inspection  by any  shareholder  during  the entire  time of the
meeting.  The original stock transfer book shall constitute prima facie evidence
of the  shareholders  entitled to examine such list or transfer books or to vote
at any meeting of shareholders.

         In lieu of making the  shareholder  list  available  for  inspection by
shareholders as provided in the preceding paragraph,  the board of directors may
elect  to  follow  the  procedures   prescribed  in  ss.552.6(d)  of  the  OTS's
Regulations as now or hereafter in effect.

         Section 8. Quorum. A majority of the outstanding shares of the
ASSOCIATION  entitled  to  vote,  represented  in  person  or  by  proxy,  shall
constitute a quorum at a meeting of shareholders. If less than a majority of the
outstanding  shares is  represented  at a meeting,  a majority  of the shares so
represented may adjourn the meeting from time to time without further notice. At
such adjourned  meeting at which a quorum shall be present or  represented,  any
business may be  transacted  which might have been  transacted at the meeting as
originally notified. The

<PAGE>   4

                                       4-

shareholders  present at a duly  organized  meeting  may  continue  to  transact
business   until   adjournment,   notwithstanding   the   withdrawal  of  enough
shareholders to constitute less than a quorum.

         Section 9. Proxies. At all meetings of shareholders,  a shareholder may
vote by proxy executed in writing by the  shareholder or by his duly  authorized
attorney in fact.  Proxies  solicited on behalf of the management shall be voted
as  directed  by the  shareholder  or,  in the  absence  of such  direction,  as
determined by a majority of the board of directors. No proxy shall be valid more
than eleven  months from the date of its  execution  except for a proxy  coupled
with an interest.

         Section 10. Voting of Shares in the Name of Two or More  Persons.  When
ownership  stands in the name of two or more persons,  in the absence of written
directions  to  the  ASSOCIATION  to  the  contrary,   at  any  meeting  of  the
shareholders of the ASSOCIATION any one or more of such  shareholders  may cast,
in person or by proxy,  all votes to which such  ownership is  entitled.  In the
event an attempt is made to cast  conflicting  votes,  in person or by proxy, by
the several  persons in whose names shares of stock stand,  the vote or votes to
which  those  persons  are  entitled  shall be cast as directed by a majority of
those  holding  such and present in person or by proxy at such  meeting,  but no
votes shall be cast for such stock if a majority cannot agree.

         Section 11. Voting of Shares by Certain Holders. Shares standing in the
name of another  corporation may be voted by any officer,  agent or proxy as the
bylaws of such corporation may prescribe,  or, in the absence of such provision,
as the board of directors of such  corporation may determine.  Shares held by an
administrator,  executor, guardian or conservator may be voted by him, either in
person or by proxy,  without a transfer  of such  shares  into his name.  Shares
standing  in the name of a trustee  may be voted by him,  either in person or by
proxy,  but no trustee  shall be  entitled  to vote shares held by him without a
transfer of such shares into his name. Shares standing in the name of a receiver
may be voted by such  receiver,  and  shares  held by or under the  control of a
receiver may be voted by such  receiver  without the  transfer  into his name if
authority to do so is contained  in an  appropriate  order of the court or other
public authority by which such receiver was appointed.

         A  shareholder  whose shares are pledged shall be entitled to vote such
shares until the shares have been  transferred  into the name of the pledgee and
thereafter the pledgee, shall be entitled to vote the shares so transferred.

         Neither treasury shares of its own stock held by the  ASSOCIATION,  nor
shares held by another corporation, if a majority of the shares entitled to vote
for  the  election  of  directors  of such  other  corporation  are  held by the
ASSOCIATION,  shall be voted at any meeting or counted in determining  the total
number of outstanding shares at any given time for purposes of any meeting.

<PAGE>   5

                                       5-

         Section 12. Cumulative Voting. Shareholders shall not be entitled to
 cumulate their votes for election of directors.

         Section  13.  Inspectors  of  Election.  In advance  of any  meeting of
shareholders, the board of directors may appoint any persons other than nominees
for office as inspectors of election to act at such meeting or any  adjournment.
The  number of  inspectors  shall be either one or three.  Any such  appointment
shall not be  altered at the  meeting.  If  inspectors  of  election  are not so
appointed,  the chairman of the board or the president may, or on the request of
not fewer than 10 percent of the votes  represented at the meeting  shall,  make
such  appointment at the meeting.  If appointed at the meeting,  the majority of
the votes  present shall  determine  whether one or three  inspectors  are to be
appointed. In case any person appointed as inspector fails to appear or fails or
refuses  to act,  the  vacancy  may be  filled  by  appointment  by the board of
directors  in advance of the  meeting,  or at the meeting by the chairman of the
board or the president.

         Unless  otherwise  prescribed by  regulations of the OTS, the duties of
such inspectors  shall include:  determining the number of shares and the voting
power of each share, the shares  represented at the meeting,  the existence of a
quorum, and the authenticity,  validity and effect of proxies;  receiving votes,
ballots,  or consents;  hearing and  determining all challenges and questions in
any way arising in connection  with the rights to vote;  counting and tabulating
all votes or consents; determining the result; and such acts as may be proper to
conduct the election or vote with fairness to all shareholders.

         Section 14. Nominating Committee. The board of directors shall act as a
nominating  committee  for  selecting  the nominees  for election as  directors.
Except  in the case of a nominee  substituted  as a result of the death or other
incapacity  of  a  nominee,  the  nominating  committee  shall  deliver  written
nominations  to the  secretary  at least 20 days prior to the date of the annual
meeting. Upon delivery,  such nominations shall be posted in a conspicuous place
in each office of the  ASSOCIATION.  No nominations  for directors  except those
made by the  nominating  committee  shall be voted  upon at the  annual  meeting
unless other  nominations by  shareholders  are made in writing and delivered to
the  secretary  of the  ASSOCIATION  at least five days prior to the date of the
annual meeting. Upon delivery, such nominations shall be posted in a conspicuous
place in each  office  of the  ASSOCIATION.  Ballots  bearing  the  names of all
persons  nominated by the  nominating  committee  and by  shareholders  shall be
provided for use at the annual  meeting.  However,  if the nominating  committee
shall  fail or  refuse  to act at least 20 days  prior  to the  annual  meeting,
nominations  for directors may be made at the annual meeting by any  shareholder
entitled to vote and shall be voted upon.

         Section 15. New Business. Any new business to be taken up at the annual
meeting  shall  be  stated  in  writing  and  filed  with the  secretary  of the
ASSOCIATION  at least five days before the date of the annual  meeting,  and all
business  so  stated,  proposed,  and filed  shall be  considered  at the annual
meeting,  but no other proposal shall be acted upon at the annual  meeting.  Any
shareholder  may make any other  proposal at the annual meeting and the same may
be discussed

<PAGE>   6

                                       6-

and  considered,  but unless  stated in writing and filed with the  secretary at
least five days before the meeting,  such proposal shall be laid over for action
at an adjourned,  special, or annual meeting of the shareholders taking place 30
days or more thereafter.  This provision shall not prevent the consideration and
approval or disapproval at the annual meeting of reports of officers,  directors
and  committees;  but in connection  with such reports no new business  shall be
acted upon at such annual meeting unless stated and filed as herein provided.

         Section 16. Informal Action by Shareholders.  Any action required to be
taken at a meeting of shareholders,  or any other action which may be taken at a
meeting  of the  shareholders,  may be taken  without a meeting  if  consent  in
writing,  setting  forth  the  action  so  taken,  shall  be given by all of the
shareholders entitled to vote with respect to the subject matter.

                         ARTICLE III. BOARD OF DIRECTORS

         Section 1. General Powers.  The business and affairs of the ASSOCIATION
shall be under the direction of its board of  directors.  The board of directors
shall  annually  elect a chairman  of the board and a  president  from among its
members and shall designate,  when present,  either the chairman of the board or
the president to preside at its meetings.

         Section 2. Number and Term.  The board of  directors  shall  consist of
thirteen  members  and shall be divided  into three  classes as nearly  equal in
number as  possible.  The  members of each class  shall be elected for a term of
three years and until their  successors  are  elected and  qualified.  One class
shall be elected by ballot annually.

         Section  3.  Regular  Meetings.  A  regular  meeting  of the  board  of
directors shall be held without other notice than this bylaw immediately  after,
and at the same  place as,  the annual  meeting  of  shareholders.  The board of
directors  may  provide,   by  resolution,   the  time  and  place,  within  the
ASSOCIATION's  normal lending  territory,  for the holding of additional regular
meetings without other notice than such resolution.

         Section  4.  Qualification.  Each  director  shall at all  times be the
beneficial owner of not less than 100 shares of capital stock of the ASSOCIATION
unless the ASSOCIATION is a wholly owned subsidiary of a holding company.

         Section 5. Special Meetings. Special meetings of the board of directors
may be called by or at the request of the chairman of the board,  the  president
or one-third of the directors.  The persons  authorized to call special meetings
of the board of directors  may fix any place,  within the  ASSOCIATION's  normal
lending territory,  as the place for holding any special meeting of the board of
directors called by such persons.

         Members of the board of directors may  participate in special  meetings
by  means  of  conference  telephone,  or by  means  of  similar  communications
equipment by which all persons

<PAGE>   7

                                       7-

participating  in the  meeting  can hear each other.  Such  participation  shall
constitute  presence  in  person  but shall not  constitute  attendance  for the
purpose of compensation pursuant to Section 12 of this Article.

         Section 6. Notice. Written notice of any special meeting shall be given
to each director at least two days prior thereto when delivered personally or by
telegram,  or at least five days prior  thereto  when  delivered  by mail at the
address at which the director is most likely to be reached. Such notice shall be
deemed to be delivered  when  deposited in the mail so  addressed,  with postage
prepaid  if  mailed,  or when  delivered  to the  telegraph  company  if sent by
telegram.  Any director may waive notice of any meeting by a writing  filed with
the  secretary.  The  attendance of a director at a meeting  shall  constitute a
waiver of notice of such meeting,  except where a director attends a meeting for
the express purpose of objecting to the transaction of any business  because the
meeting  is  not  lawfully  called  or  convened.  Neither  the  business  to be
transacted at, nor the purpose of, any meeting of the board of directors need be
specified in the notice or waiver of notice of such meeting.

         Section 7.  Quorum.  A majority  of the  number of  directors  fixed by
Section 2 of this Article III shall  constitute a quorum for the  transaction of
business  at any  meeting  of the  board of  directors,  but if less  than  such
majority  is present  at a meeting,  a majority  of the  directors  present  may
adjourn the meeting from time to time.  Notice of any adjourned meeting shall be
given in the same manner as prescribed by Section 6 of this Article III.

         Section 8. Manner of Acting.  The act of the majority of the  directors
present at a meeting at which a quorum is present  shall be the act of the board
of directors,  unless a greater number is prescribed by regulation of the OTS or
by these bylaws.

         Section 9. Action Without a Meeting.  Any action  required or permitted
to be taken by the  board of  directors  at a  meeting  may be taken  without  a
meeting if a consent in  writing,  setting  forth the action so taken,  shall be
signed by all of the directors.

         Section 10. Resignation. Any director may resign at any time by sending
a  written  notice of such  resignation  to the home  office of the  ASSOCIATION
addressed to the chairman of the board or president.  Unless otherwise specified
such resignation  shall take effect upon receipt by the chairman of the board or
president.  More than three  consecutive  absences from regular  meetings of the
board of  directors,  unless  excused by  resolution  of the board of directors,
shall automatically constitute a resignation, effective when such resignation is
accepted by the board of directors.

         Section 11. Vacancies.  Any vacancy occurring in the board of directors
may be filled by the affirmative vote of a majority of the remaining  directors,
although  less than a quorum of the board of  directors.  A director  elected to
fill a vacancy shall be elected to serve until the next election of directors by
the shareholders. Any directorship to be filled by reason of an increase

<PAGE>   8

                                       8-

in the number of  directors  may be filled by election by the board of directors
for a term of office continuing only until the next election of directors by the
shareholders.

         Section  12.  Compensation.  Directors,  as such,  may receive a stated
salary for their services. By resolution of the board of directors, a reasonable
fixed sum, and  reasonable  expenses of  attendance,  if any, may be allowed for
actual  attendance at each regular or special meeting of the board of directors.
Members  of  either   standing  or  special   committees  may  be  allowed  such
compensation  for  actual  attendance  at  committee  meetings  as the  board of
directors may determine.

         Section 13. Presumption of Assent. A director of the ASSOCIATION who is
present  at a  meeting  of  the  board  of  directors  at  which  action  on any
ASSOCIATION  matter is taken shall be  presumed  to have  assented to the action
taken  unless his dissent or  abstention  shall be entered in the minutes of the
meeting or unless he shall file a written dissent to such action with the person
acting as the secretary of the meeting before the  adjournment  thereof or shall
forward  such dissent by  registered  mail to the  secretary of the  ASSOCIATION
within  five  days  after  the  date a copy of the  minutes  of the  meeting  is
received. Such right to dissent shall not apply to a director who voted in favor
of such action.

         Section 14. Removal of Directors.  At a meeting of shareholders  called
expressly for that  purpose,  any director may be removed for cause by a vote of
the holders of a majority of the shares then  entitled to vote at an election of
directors. Whenever the holders of the shares of any class are entitled to elect
one or more directors by the provisions of the Charter or supplemental  sections
thereto,  the provisions of this section shall apply,  in respect to the removal
of a  director  or  directors  so  elected,  to the vote of the  holders  of the
outstanding  shares of that class and not to the vote of the outstanding  shares
as a whole.

         Section 15. Age Limitation of Directors. No person 75 or above years of
age shall be eligible for election, reelection, appointment, or reappointment to
the board of  directors  of the  ASSOCIATION.  No  director  shall serve as such
beyond the regular meeting of the  ASSOCIATION  which  immediately  precedes the
director  becoming  75 years of age.  This age  limitation  does not apply to an
advisory director.

                   ARTICLE IV. EXECUTIVE AND OTHER COMMITTEES

         Section 1. Appointment.  The board of directors,  by resolution adopted
by a majority of the full board,  may designate the chief executive  officer and
two or more of the other  directors to  constitute an executive  committee.  The
designation  of any committee  pursuant to this Article IV and the delegation of
authority shall not operate to relieve the board of directors,  or any director,
of any responsibility imposed by law or regulation.

<PAGE>   9

                                       9-

         Section  2.  Authority.  The  executive  committee,  when the  board of
directors is not in session, shall have and may exercise all of the authority of
the board of directors  except to the extent,  if any, that such authority shall
be limited by the resolution appointing the executive committee; and except also
that the  executive  committee  shall  not have the  authority  of the  board of
directors with reference to: the declaration of dividends;  the amendment of the
Charter or bylaws of the ASSOCIATION, or recommending to the shareholders a plan
of merger, consolidation, or conversion; the sale, lease or other disposition of
all or substantially all of the property and assets of the ASSOCIATION otherwise
than in the usual and regular course of its business; a voluntary dissolution of
the  ASSOCIATION;  a revocation  of any of the  foregoing;  or the approval of a
transaction  in  which  any  member  of the  executive  committee,  directly  or
indirectly, has any material beneficial interest.

         Section  3.  Tenure.  Subject  to the  provisions  of Section 8 of this
Article IV, each member of the executive  committee  shall hold office until the
next  regular  annual  meeting of the board of  directors  following  his or her
designation  and until a successor is  designated  as a member of the  executive
committee.

         Section 4. Meetings. Regular meetings of the executive committee may be
held without notice at such times and places as the executive  committee may fix
from time to time by resolution. Special meetings of the executive committee may
be called by any member  thereof upon not less than one day's notice stating the
place,  date and hour of the meeting,  which notice may be written or oral.  Any
member of the executive  committee may waive notice of any meeting and no notice
of any meeting  need be given to any member  thereof who attends in person.  The
notice of a  meeting  of the  executive  committee  need not state the  business
proposed to be transacted at the meeting.

         Section 5. Quorum. A majority of the members of the executive committee
shall  constitute  a quorum  for the  transaction  of  business  at any  meeting
thereof,  and  action  of the  executive  committee  must be  authorized  by the
affirmative  vote of a majority of the  members  present at a meeting at which a
quorum is present.

         Section 6. Action Without a Meeting.  Any action  required or permitted
to be taken by the  executive  committee  at a  meeting  may be taken  without a
meeting if a consent in  writing,  setting  forth the action so taken,  shall be
signed by all of the members of the executive committee.

         Section 7. Vacancies. Any vacancy in the executive committee may be
filled by a resolution adopted by a majority of the full board of directors.

         Section 8. Resignations and Removal. Any member of the executive
committee may be removed at any time with or without cause by resolution adopted
by a  majority  of the full  board of  directors.  Any  member of the  executive
committee may resign from the executive  committee at any time by giving written
notice to the president or secretary of the ASSOCIATION. Unless

<PAGE>   10

                                       10-

otherwise  specified,  such resignation shall take effect upon its receipt;  the
acceptance of such resignation shall not be necessary to make it effective.

         Section 9. Procedure.  The executive  committee shall elect a presiding
officer from its members and may fix its own rules of procedure  which shall not
be  inconsistent  with  these  bylaws.  It shall  keep  regular  minutes  of its
proceedings and report the same to the board of directors for its information at
the meeting held next after the proceedings shall have occurred.

         Section 10. Other Committees.  The board of directors may by resolution
establish an audit, loan, or other committees  composed of directors as they may
determine to be necessary or appropriate  for the conduct of the business of the
ASSOCIATION and may prescribe the duties, constitution and procedures thereof.

                               ARTICLE V. OFFICERS

         Section  1.  Positions.  The  officers  of the  ASSOCIATION  shall be a
president,  one or more vice  presidents,  a secretary and a treasurer,  each of
whom shall be elected by the board of directors. The board of directors may also
designate the chairman of the board as an officer.  The  president  shall be the
chief executive officer,  unless the board of directors  designates the chairman
of the board as chief  executive  officer.  The president shall be a director of
the  ASSOCIATION.  The offices of the secretary and treasurer may be held by the
same  person  and a vice  president  may also be  either  the  secretary  or the
treasurer.  The board of directors may designate one or more vice  presidents as
executive  vice president or senior vice  president.  The board of directors may
also elect or authorize the  appointment  of such other officers as the business
of the  ASSOCIATION  may require.  The officers  shall have such  authority  and
perform such duties as the board of directors may from time to time authorize or
determine.  In the  absence of action by the board of  directors,  the  officers
shall  have such  powers  and duties as  generally  pertain to their  respective
offices.

         Section 2. Election and Term of Office. The officers of the ASSOCIATION
shall be elected  annually at the first  meeting of the board of directors  held
after each annual  meeting of the  shareholders.  If the election of officers is
not held at such  meeting,  such  election  shall be held as soon  thereafter as
possible. Each officer shall hold office until a successor has been duly elected
and qualified or until the officer's death, resignation or removal in the manner
hereinafter provided.  Election or appointment of an officer,  employee or agent
shall not of itself  create  contractual  rights.  The  board of  directors  may
authorize the ASSOCIATION to enter into an employment  contract with any officer
in accordance with regulations of the OTS; but no such contract shall impair the
right of the board of directors to remove any officer at any time in  accordance
with Section 3 of this Article V.

         Section 3. Removal. Any officer may be removed by the board of
directors whenever in its judgment the best interests of the ASSOCIATION will be
served thereby, but such removal,

<PAGE>   11

                                       11-

other than for cause,  shall be without prejudice to the contractual  rights, if
any, of the person so removed.

         Section 4. Vacancies. A vacancy in any office because of death,
resignation,  removal, disqualification or otherwise, may be filled by the board
of directors for the unexpired portion of the term.

         Section 5. Remuneration. The remuneration of the officers shall be
fixed from time to time by the board of directors.

                ARTICLE VI. CONTRACTS, LOANS, CHECKS AND DEPOSITS

         Section 1.  Contracts.  To the extent  permitted by  regulations of the
OTS,  and  except as  otherwise  prescribed  by these  bylaws  with  respect  to
certificates  for shares,  the board of  directors  may  authorize  any officer,
employee,  or agent of the ASSOCIATION to enter into any contract or execute and
deliver any  instrument  in the name of and on behalf of the  ASSOCIATION.  Such
authority may be general or confined to specific instances.

         Section 2. Loans. No loans shall be contracted on behalf of the
ASSOCIATION and no evidence of  indebtedness  shall be issued in its name unless
authorized by the board of directors.  Such authority may be general or confined
to specific instances.

         Section 3. Checks,  Drafts, Etc. All checks, drafts or other orders for
the payment of money,  notes or other  evidences of  indebtedness  issued in the
name of the  ASSOCIATION  shall be signed by one or more officers,  employees or
agents  of the  ASSOCIATION  in  such  manner  as  shall  from  time  to time be
determined by the board of directors.

         Section 4. Deposits. All funds of the ASSOCIATION not otherwise
employed shall be deposited  from time to time to the credit of the  ASSOCIATION
in any duly authorized depositories as the board of directors may select.

                      ARTICLE VII. CERTIFICATES FOR SHARES
                               AND THEIR TRANSFER

         Section 1. Certificates for Shares. Certificates representing shares of
capital stock of the ASSOCIATION shall be in such form as shall be determined by
the board of  directors  and  approved by the OTS.  Such  certificates  shall be
signed by the chief executive officer or by any other officer of the ASSOCIATION
authorized by the board of directors,  attested by the secretary or an assistant
secretary,  and sealed  with the  corporate  seal or a  facsimile  thereof.  The
signatures  of  such  officers  upon  a  certificate  may be  facsimiles  if the
certificate  is manually  signed on behalf of a transfer  agent or a  registrar,
other than the ASSOCIATION itself or one of its employees.  Each certificate for
shares of capital stock shall be consecutively numbered or otherwise identified.

<PAGE>   12

                                       12-

The name and  address  of the person to whom the  shares  are  issued,  with the
number of shares and date of issue, shall be entered on the stock transfer books
of the ASSOCIATION. All certificates surrendered to the ASSOCIATION for transfer
shall be  canceled  and no new  certificate  shall be issued  until  the  former
certificate  for a like  number of shares  has been  surrendered  and  canceled,
except that in case of a lost or destroyed certificate, a new certificate may be
issued  upon  such  terms  and  indemnity  to the  ASSOCIATION  as the  board of
directors may prescribe.

         Section 2.  Transfer of Shares.  Transfer of shares of capital stock of
the ASSOCIATION  shall be made only on its stock transfer  books.  Authority for
such  transfer  shall be given  only by the  holder  of  record  or by his legal
representative,  who shall furnish proper evidence of such authority,  or by his
attorney  authorized  by a duly  executed  power of attorney  and filed with the
ASSOCIATION.  Such transfer shall be made only on surrender for  cancellation of
the  certificate  for such  shares.  The person in whose name  shares of capital
stock stand on the books of the  ASSOCIATION  shall be deemed by the ASSOCIATION
to be the owner for all purposes.

                     ARTICLE VIII. FISCAL YEAR; ANNUAL AUDIT

         The fiscal  year of the  ASSOCIATION  shall end on  December 31 of each
year. The  ASSOCIATION  shall be subject to an annual audit as of the end of its
fiscal year by independent  public  accountants  appointed by and responsible to
the board of directors.  The appointment of such accountants shall be subject to
annual ratification by the shareholders.

                              ARTICLE IX. DIVIDENDS

         Subject to the terms of the  ASSOCIATION's  Charter and the regulations
and orders of the OTS, the board of directors  may, from time to time,  declare,
and the  ASSOCIATION  may pay,  dividends on its  outstanding  shares of capital
stock.

                            ARTICLE X. CORPORATE SEAL

         The board of directors shall provide an ASSOCIATION  seal,  which shall
be two concentric  circles  between which shall be the name of the  ASSOCIATION.
The year of incorporation or an emblem may appear in the center.

                             ARTICLE XI. AMENDMENTS

         These bylaws may be amended in a manner  consistent with regulations of
the OTS at any time by a majority vote of the full board of  directors,  or by a
majority vote of the votes cast by the  shareholders  of the  ASSOCIATION at any
legal meeting.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]