NY Ins L § 4504 (2021)
2021 New York Laws ISC - Insurance Article 45 - Fraternal Benefit Societies 4504 - Amendments to Charter, Constitution and By-Laws; Waiver of Provisions.

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