NY Fin Serv L § 501 (2021)
2021 New York Laws FIS - Financial Services Law Article 5 - Restrictions on Officers and Employees of the Department 501 - Restrictions on Officers and Employees of the Department; Penalty.

§  501.  Restrictions  on  officers  and  employees of the department; penalty. (a) No officer or employee of the  department  shall  obtain  a loan  or  extension of credit from any regulated person or be interested in any such regulated person as a  director,  partner,  owner,  officer, attorney, agent, trustee or employee, or own or deal in, either directly or indirectly, the stocks or obligations of any such regulated person. A violation  of  the provisions of this section by any officer or employee shall constitute sufficient grounds  for  his  or  her  removal  by  the superintendent.  (b) Nothing in this section shall be construed to prohibit any officer or employee from obtaining financing from a regulated person upon his or her  primary or secondary residence, provided that the premises securing such loan are occupied by such employee, and further provided that  such loan  is  reported to the department, which shall keep a record thereof. The term "residence," for the purposes of this  section,  shall  mean  a single   family  or  two  family  residence,  condominium  apartment  or cooperative apartment, occupied in whole or in part, by the  officer  or employee.  The  term  "cooperative  apartment"  means  a residence where ownership is evidenced by certificates of stock or other evidence of  an ownership  interest  in,  and a proprietary lease from, a corporation or partnership formed for the purpose of the cooperative ownership of  real estate.  (c) Nothing in this section shall be construed to prohibit any officer or  employee  from: (1) obtaining a loan secured by an assignment of his or her deposit in a banking organization, or an assignment or pledge  of his or her shares in a savings and loan association or credit union; (2) accepting  financing  of an automobile, truck or other personal property from a banking organization or a sales  finance  company;  (3)  entering into  a  premium finance agreement with a premium finance agency; or (4) owning  shares  of  an  investment  company  (mutual  fund)   that   may incidentally  invest in the securities of any regulated person, provided that the purpose of the investment portfolio of such investment  company may  not  be  to  invest  primarily  or exclusively in the securities of banking or insurance entities. For purposes of this section,  investment companies  include open-end and closed-end investment companies and unit investment trusts as those terms are  defined  in  an  Act  of  Congress entitled "The Investment Company Act of 1940," as amended.  (d)  Nothing in this section shall be construed to prevent any officer or employee from becoming a policyholder of any insurer or  from  taking out  a  loan  under  the  officer's  or  employee's insurance policy, or prevent or impair  the  ability  of  the  superintendent  to  act  as  a liquidator,   rehabilitator,   or   conservator   pursuant   to  article seventy-four of the insurance law or article  thirteen  of  the  banking law.  (e)  The  superintendent  may  promulgate  policies and procedures for exempting particular employees, or classes of employees, from investment restrictions in subsection (a) of this section as to  regulated  persons with  which  such  employee  or  class  of employees has no authority or involvement.  (f) This section shall not apply to investments held in a blind  trust approved by the superintendent or the superintendent's designee.