NY Banking L § 103 (2021)
2021 New York Laws BNK - Banking Article 3 - Banks and Trust Companies 103 - Restrictions on Loans, Purchases of Securities, Total Liabilities and Other Credit Exposures to a Bank or Trust Company of Any One Person.

§ 103.* Restrictions  on  loans,  purchases  of  securities  and total liabilities to bank or trust company of any one person.   * NB Effective until notification of the superintendent  of  financial services   * Restrictions  on  loans,  purchases of securities, total liabilities and other credit exposures to a bank or trust company of any one person.   * NB Effective upon notification of the  superintendent  of  financial services   No bank or trust company shall:   1. Lend to any person (which term shall mean, for the purposes of this subdivision,  any  individual,  partnership, unincorporated association, corporation or body politic) an amount which  will  exceed  fifteen  per centum  of the capital stock, surplus fund and undivided profits of such bank or trust company. Any extension of credit to a person by  means  of the  issue  or  confirmation of irrevocable sight letters of credit upon the responsibility of such person,  or  by  means  of  the  discount  or purchase  of,  or  investment  in,  bills  of  exchange,  notes,  bonds, debentures or other obligations made, drawn or accepted by such  person, shall  be  considered  a  loan  to  such person for the purposes of this subdivision except that (1) in the case of an accepted bill of exchange, the loan shall be considered, subject to clause (2) below, to be made to the acceptor and not to the drawer; and (2) if  any  bill  of  exchange, note, bond, debenture or other obligation is endorsed without limitation or  guaranteed  by any person and discounted with, or sold to, such bank or trust company by such person, the loan shall be considered a loan  to such  person  and  not  to the maker, drawer or acceptor of such bill of exchange, note, bond,  debenture  or  other  obligation.  The  foregoing limitation is subject to the following exceptions:  (a)  The  limitations  in  this subdivision shall not apply to (1) any loan to the extent that the United  States,  this  state  or  any  city, county,  town,  village  or  school  district  of  this  state,  or  any department, agency or instrumentality of the United States or this state designated by the superintendent by general or specific regulation,  has agreed  to  pay  the  principal  and interest thereof, or has guaranteed payment (by guaranty or commitment to purchase  or  otherwise)  of  such principal  and  interest, or is committed to supply, by loan, subsidy or otherwise, funds sufficient to pay such principal and interest,  or  has otherwise pledged its faith and credit for the payment of such principal and  interest;  or  (2)  any loan secured by not less than a like amount (based on their principal amount or market value, whichever is lower, at the time the loan is made) of direct obligations of the United States or of this state or of any city, county, town, village or  school  district of  this  state  or of any such department, agency or instrumentality of the United States or  this  state  or  by  obligations  otherwise  fully guaranteed as to principal and interest by the United States.  (b) The limitations in this subdivision shall not apply to any loan to the  extent such loan is secured by cash collateral which is not subject to withdrawal.   In addition, the limitations in this subdivision shall not  apply  (i) to  loans  arising  from  the  discount  of commercial or business paper evidencing an obligation to the person  negotiating  it  with  recourse; (ii)  to loans to the student loan marketing association; (iii) to loans to  any  financial  institution  or  to   any   receiver,   conservator, superintendent  of  financial  services, or other agent in charge of the business and property of such financial institutions when such loans are approved by  the  superintendent;  (iv)  to  the  purchase  of  bankers' acceptances  of  the  kind described in section 13 of an act of congress entitled  the  "Federal  Reserve  Act"  and  issued  by  other   banking  corporations;  and  (v)  to loans made to facilitate prompt clearance or settlement arising from the  purchase  or  sale  of  readily  marketable securities  which loans (A) are secured by readily marketable securities having  a market value or a principal face amount (whichever is less) at the time the loan is made of not less than the principal amount of  said loan,  and  (B)  shall  be required to be repaid upon settlement of such purchase or sale.  (c) Loans (exclusive of any loan described in paragraph  (a)  of  this subdivision)  to  any  state other than the state of New York, or to any foreign nation, the New York State  thruway  authority,  the  Triborough bridge  and tunnel authority, The Port of New York Authority, a railroad corporation, a  municipal  corporation  of  this  state,  a  corporation subject  to  the  jurisdiction  of  a  public service commission of this state,  or  any  international  lending  facility  or   public   benefit corporation  designated  by  the superintendent by regulation, may equal but not exceed twenty-five per centum of the capital stock, surplus fund and undivided profits of such bank or trust company.  (d) Loans to any person, other than loans described in paragraph  (a), (b) or (c) of this subdivision, may equal but not exceed twenty-five per centum  of the capital stock, surplus fund and undivided profits of such bank or trust company, provided such loans either in whole or  in  part, but  in  any  event that part thereof in excess of fifteen per centum of such capital stock, surplus fund and undivided profits:  (1) are upon, or with respect to, drafts or bills of exchange drawn in good  faith  against  actually  existing  values,   or   upon   bankers' acceptances  or  bills  of  exchange  of  the  kinds and maturities made eligible by law for purchase in  the  open  market  by  federal  reserve banks; or  (2)  are  secured by collateral having an ascertained market value, or otherwise having a value as collateral as found  in  good  faith  by  an officer  of  such bank or trust company, at least equal to the excess of such loans over fifteen per centum of such capital stock,  surplus  fund and undivided profits.  (d-1) Loans secured by bills of lading, warehouse receipts, or similar documents  transferring  or securing title to readily marketable staples shall be subject to a  limitation  of  thirty-five  per  centum  of  the capital  stock, surplus fund and undivided profits of such bank or trust company in addition to the general limitations if the  market  value  of the staples securing each additional loan at all times equals or exceeds one  hundred  fifteen per centum of the outstanding amount of such loan. The staples shall be fully covered by insurance whenever it is customary to insure such staples.  (d-2) Loans secured by shipping documents or instruments  transferring or  securing title covering livestock or giving a lien on livestock when the market value of the livestock securing the obligation is not at  any time  less than one hundred fifteen per centum of the face amount of the note covered,  shall  be  subject  to  a  maximum  limitation  equal  to twenty-five  per centum of the capital stock, surplus fund and undivided profits of such bank or trust company.   In addition, loans which arise from the discount by dealers  in  dairy cattle of paper given in payment for dairy cattle, which paper carries a full  recourse endorsement or unconditional guarantee of the seller, and which are secured by the cattle  being  sold,  shall  be  subject  to  a limitation  of twenty-five per centum of the capital stock, surplus fund and undivided profits of such bank or trust company.  (e) In computing the total loans by any bank or trust company  (i)  to any  individual,  there shall be included all loans by the bank or trust company to any partnership or unincorporated association of which he  is  a  member, and all loans made for his benefit or for the benefit of such partnership or association; (ii) to any  partnership  or  unincorporated association,  there  shall  be  included  all loans by the bank or trust company  to  its  individual  members  and all loans made by the bank or trust company for the benefit  of  such  partnership  or  unincorporated association  or  any member thereof; and (iii) to any corporation, there shall be included all loans made by the bank or trust  company  for  the benefit  of  the  corporation. A loan shall be deemed to be made for the benefit of a corporation only to the extent that the  proceeds  of  such loan (1) are to be loaned to the corporation; (2) are to be used for the acquisition  (otherwise  than in connection with a public offering) from the corporation by a person in control of, or under common control with, the corporation,  of  any  stock  or  other  securities  issued  by  the corporation,  or  (3)  are  to be transferred to the corporation without fair and adequate consideration, and  the  discharge  of  an  equivalent amount  of debt previously incurred in good faith and for value shall be considered fair and adequate consideration. A loan shall not  be  deemed to  be  made  for the benefit of a corporation if such loan is made to a person other  than  the  corporation  and  is  secured  as  provided  in subdivision  four  of this section or is secured by collateral having an ascertained market value, or otherwise having a value as  collateral  as found  in  good  faith  by  an officer of such bank or trust company, at least equal to the amount of the loan;  provided  that  stock  or  other securities  issued  by, or a lien on property of, such corporation shall not be considered collateral for the purposes of this provision.  (f) The limitations  in  this  subdivision  shall  not  apply  to  the acceptance  of bills of exchange or the issue or confirmation of letters of credit calling for acceptances by a bank or  trust  company,  but  no bank or trust company shall make acceptances, or issue letters of credit calling  for  acceptances,  upon  the responsibility of any person to an amount in excess of fifteen per centum of  the  capital  stock,  surplus fund  and  undivided  profits of such bank or trust company, unless that part thereof in excess of fifteen per  centum  of  such  capital  stock, surplus  fund  and undivided profits is, and will remain, secured either by accompanying documents or by some other actual security  growing  out of  the same transaction as the acceptance or by substituted security of similar character.  (g) Loans arising from the discount of  negotiable  or  non-negotiable installment  consumer paper which carries a full recourse endorsement or unconditional guarantee by the transferor of such paper shall be subject to a limitation of twenty-five per centum of the capital stock,  surplus fund  and  undivided  profits  of such bank or trust company. Within the meaning of this subdivision, the liability to such bank or trust company of  any   individual,   partnership,   unincorporated   association   or corporation  as  endorser  or  guarantor of negotiable or non-negotiable instalment consumer paper shall not be deemed a loan to such individual, partnership, unincorporated association or corporation to the extent  of the  value  of  the  obligation  thereon of the maker of such instalment consumer paper, as found in good faith in writing by an officer of  such bank   or   trust  company,  designated  to  make  such  evaluation  and certification by the board of directors of the bank  or  trust  company, and  upon the further certification by the said officer that the bank or trust company is relying  primarily  on  the  maker  of  the  instalment consumer  paper  for  the payment of an amount owing upon the instalment consumer paper upon the security of which the bank or trust  company  is making   the  loan  or  in  which  it  is  making  the  investment.  The certifications are to be  made  at  the  time  of  making  the  loan  or investment, and are to be based on information contained in the files of  the  bank  or  trust  company,  or  on  the  personal  knowledge  of the designated officer. Instalment consumer paper, for the purposes of  this section,  shall  mean  retail instalment contracts and retail instalment obligations  as  defined  in  subdivisions six and six-a of section four hundred ninety-one of this chapter, and similar agreements entered  into outside of this state.  (h) The limitations in this subdivision shall not apply to any advance of  federal  funds  by  such bank or trust company to a commercial bank, provided such advance is made on the condition that it be repaid on  the next  business  day  following the day on which the advance is made. For purposes of this paragraph, the term "federal funds" shall mean funds on deposit at a federal reserve bank or funds on deposit  at  a  commercial bank  which  are  exchangeable for funds on deposit at a federal reserve bank; the term "commercial bank" shall mean  any  bank,  trust  company, private  banker,  national  banking association, any banking corporation organized under the laws of the United States or any state of the United States and engaged in a commercial  banking  business,  or  any  banking corporation  organized under the laws of any foreign country and engaged in the commercial banking business that maintains  a  branch  or  agency licensed  by  any  state  of the United States or the comptroller of the currency; and the term "business day" shall mean any day  on  which  the bank  or trust company making the advance, the commercial bank obtaining the advance and any federal reserve bank or  banks  through  which  such advance was effected are all open for general business.   * (i)  The  limitations  in  this  subdivision  shall not apply to the investment of such bank or trust company in the bonds, debentures, notes or  other  obligations  of  any  person,  provided:  (i)   such   bonds, debentures,  notes  or  other  obligations mature not less than one year after their respective dates of issuance,  and,  at  the  time  of  such investment,  are  rated  in one of the three highest rating grades by an independent rating service designated by the superintendent of financial services; (ii) such investment does not exceed fifteen per centum of the capital stock, surplus fund and undivided profits of such bank or  trust company;  and  (iii)  such  investment  complies  with  such  additional limitations and conditions as the superintendent of  financial  services from time to time may prescribe by general regulation.   * NB  Effective  until notification of the superintendent of financial services   * (i) The limitations in this  subdivision  shall  not  apply  to  the investment of such bank or trust company in the bonds, debentures, notes or   other   obligations  of  any  person,  provided:  (i)  such  bonds, debentures, notes or other obligations mature not  less  than  one  year after  their  respective  dates  of  issuance,  and, at the time of such investment,  meet  the  standards  of  creditworthiness  established  by regulation  by  the superintendent; (ii) such investment does not exceed fifteen per centum of the capital  stock,  surplus  fund  and  undivided profits  of  such  bank  or  trust  company;  and  (iii) such investment complies  with  such  additional  limitations  and  conditions  as   the superintendent from time to time may prescribe by regulation.   * NB  Effective  upon  notification of the superintendent of financial services   * (j) In the case of a  trust  company  which  (1)  does  not  receive deposits  from  the  general  public  and  (2)  has been exempted by the superintendent of financial services from the  requirements  of  section thirty-two  of  this  chapter, the limitations of this subdivision shall not apply to  the  investment  of  such  trust  company  in  the  bonds, debentures,  notes  or  other obligations of, any foreign nation, or any political subdivision, agency or instrumentality thereof, provided:  (i)  at  the  time of such investment, such bonds, debentures, notes or other obligations are rated in one of the three highest rating  grades  by  an independent rating service designated by the superintendent of financial services;   (ii)   for  any  such  bonds,  debentures,  notes  or  other obligations, the foreign nation, or any political subdivision, agency or instrumentality  thereof,  has  guaranteed  payment  (by   guaranty   or commitment  to purchase or otherwise) of such principal and interest, or is committed to supply, by loan, subsidy or otherwise, funds  sufficient to  pay  such principal and interest, or has otherwise pledged its faith and credit for the payment of such principal and  interest;  (iii)  such investments  do  not exceed the per centum applicable to such obligor of the capital stock, surplus fund and undivided profits of  such  bank  or trust  company  as  the  superintendent  shall  approve,  and  (iv) such investments  comply  with  such  limitations  and  conditions   as   the superintendent may from time to time prescribe.   * NB  Effective  until notification of the superintendent of financial services   * (j) In the case of a  trust  company  which  (1)  does  not  receive deposits  from  the  general  public  and  (2)  has been exempted by the superintendent from the  requirements  of  section  thirty-two  of  this chapter,  the  limitations  of  this  subdivision shall not apply to the investment of such trust company in  the  bonds,  debentures,  notes  or other  obligations of, any foreign nation, or any political subdivision, agency or instrumentality thereof, provided: (i) at  the  time  of  such investment,  such bonds, debentures, notes or other obligations meet the standards  of  creditworthiness  established  by   regulation   by   the superintendent;  (ii)  for  any  such  bonds, debentures, notes or other obligations, the foreign nation, or any political subdivision, agency or instrumentality  thereof,  has  guaranteed  payment  (by   guaranty   or commitment  to purchase or otherwise) of such principal and interest, or is committed to supply, by loan, subsidy or otherwise, funds  sufficient to  pay  such principal and interest, or has otherwise pledged its faith and credit for the payment of such principal and  interest;  (iii)  such investments  do  not exceed the per centum applicable to such obligor of the capital stock, surplus fund and undivided profits of  such  bank  or trust  company  as  the  superintendent  shall  approve;  and  (iv) such investments  comply  with  such  limitations  and  conditions   as   the superintendent may from time to time prescribe.   * NB  Effective  upon  notification of the superintendent of financial services   * (k) In the case of a  trust  company  which  (1)  does  not  receive deposits  from  the  general  public  and  (2)  has been exempted by the superintendent of financial services from the  requirements  of  section thirty-two  of  this  chapter, the limitations of this subdivision shall not apply to the  purchase  of  securities  under  repurchase  agreement provided  that  the repurchase agreement relates to not less than a like amount of direct obligations (based on their principal amount or  market value,  whichever  is  lower,  at  the  time the purchase occurs) of any foreign nation, or any political subdivision, agency or  instrumentality thereof,  provided:  (i)  at  the  time  of  such  purchase, such direct obligations are rated in one of the three highest rating  grades  by  an independent rating service designated by the superintendent of financial services;  (ii)  for any such direct obligations, the foreign nation, or any  political  subdivision,  agency  or  instrumentality  thereof,  has guaranteed  payment (by guaranty or commitment to purchase or otherwise) of the principal and interest thereof, or is  committed  to  supply,  by loan,  subsidy  or otherwise, funds sufficient to pay such principal and interest, or has otherwise pledged its faith and credit for the  payment  of  such  principal  and  interest;  (iii)  the  purchase  price of such securities does not exceed the per centum applicable to the  obligor  of such securities of the capital stock, surplus fund and undivided profits of  such  bank or trust company as the superintendent shall approve; and (iv) such purchase complies with such limitations and conditions as  the superintendent may from time to time prescribe.   * NB  Effective  until notification of the superintendent of financial services   * (k) In the case of a  trust  company  which  (1)  does  not  receive deposits  from  the  general  public  and  (2)  has been exempted by the superintendent from the  requirements  of  section  thirty-two  of  this chapter,  the  limitations  of  this  subdivision shall not apply to the purchase of securities under  repurchase  agreement  provided  that  the repurchase  agreement  relates  to not less than a like amount of direct obligations (based on their principal amount or market value,  whichever is lower, at the time the purchase occurs) of any foreign nation, or any political  subdivision, agency or instrumentality thereof, provided: (i) at the time of such purchase, such direct obligations meet the standards of creditworthiness established by  regulation  by  the  superintendent; (ii)  for  any  such  direct  obligations,  the  foreign  nation, or any political subdivision, agency or instrumentality thereof, has guaranteed payment (by guaranty or commitment to  purchase  or  otherwise)  of  the principal  and  interest  thereof,  or  is committed to supply, by loan, subsidy or  otherwise,  funds  sufficient  to  pay  such  principal  and interest,  or has otherwise pledged its faith and credit for the payment of such principal  and  interest;  (iii)  the  purchase  price  of  such securities  does  not exceed the per centum applicable to the obligor of such securities of the capital stock, surplus fund and undivided profits of such bank or trust company as the superintendent shall  approve;  and (iv)  such purchase complies with such limitations and conditions as the superintendent may from time to time prescribe.   * NB Effective upon notification of the  superintendent  of  financial services   * The  superintendent  of  financial  services  shall  be empowered to promulgate rules and regulations as shall be appropriate  to  carry  out the purposes of this subdivision.   * NB  Effective  until notification of the superintendent of financial services   * The superintendent  shall  be  empowered  to  promulgate  rules  and regulations  as  shall  be appropriate to carry out the purposes of this subdivision.   * NB Effective upon notification of the  superintendent  of  financial services   * The  superintendent also shall be authorized to determine the manner and  extent  to  which  credit  exposure   resulting   from   derivative transactions,  repurchase  agreements,  reverse  repurchase  agreements, securities lending transactions and  securities  borrowing  transactions shall  be  taken  into  account for purposes of this section. As used in this section, the term "derivative transaction" includes any transaction that is a contract, agreement, swap, warrant, note  or  option  that  is based,  in  whole  or  in  part,  on  the value of, any interest in, any quantitative measure of, or the occurrence of any event relating to, one or more commodities, securities, currencies, interest  or  other  rates, indices   or   other   assets.   In   making  such  determinations,  the superintendent may, but is not required to, act by order or regulation.   * NB Effective upon notification of the  superintendent  of  financial services    4. Make a loan upon the security of real estate within or without this state  which  does  not comply with any such rules or regulations as the superintendent of financial services may prescribe.   No  loan shall be made under the provisions of this subdivision except upon the written  and  signed  certificate  of  an  appraiser  appointed pursuant  to  policies established by the board of directors, certifying to the value of the premises according to his judgment.   The provisions of this subdivision shall not constitute the  authority to make a loan to a natural person upon the security of a mortgage which is not a first lien.   Where  the  collateral  for  any  loan  consists partly of real estate security  and  partly  of  other  security,  including  a  guarantee  or endorsement by or an obligation or commitment of a person other than the borrower,  only  the  amount  by  which  the  loan  exceeds the value as collateral of such other security, as found in  good  faith  by  a  duly authorized  officer  of  such  bank or trust company, at the time of the making of the loan or commitment therefor, shall be  considered  a  loan upon  the  security  of  real estate, provided, that in no event shall a loan be considered a loan upon the security of real estate (i) where the principal amount of any real estate security taken therefor is less than fifteen per centum of the amount of such loan or (ii) where the loan  is payable in monthly or quarterly installments over a period not to exceed one  hundred  twenty-one  months  and  does  not  exceed twenty thousand dollars and is for the purpose  of  paying  the  cost  of  any  repairs, alterations  or  improvements  upon,  or  in connection with, or, as the superintendent may authorize, the equipping of  existing  structures  or the  building  of new structures by the owners thereof or by the lessees under a lease expiring not less than six months after  the  maturity  of the  loan  or (iii) where the loan is fully guaranteed or insured by the United States or a state, or any department, agency  or  instrumentality thereof,  and for the payment of which loan the full faith and credit of the United States or of such state is pledged and if under the terms  of the  guaranty  or  insurance agreement the bank or trust company will be assured of repayment in accordance with the terms of the  loan  or  (iv) where  there  is  a  binding  and  valid  commitment  or  agreement by a financially  responsible  lender,   purchaser   or   other   financially responsible party either directly with the lending bank or trust company or  which  is  for  the benefit of, or has been assigned to, the lending bank or trust company and pursuant to  which  commitment,  agreement  or assignment,  the lender, purchaser or other party is required to advance to the lending bank or trust company within thirty months from the  date of  such  commitment or agreement the full amount of the loan to be made by the lending bank or trust company upon the security  of  real  estate improved  by a building or buildings, or to be improved by a building or buildings in the process of construction, the  major  portion  of  which building  is used, or in the case of a building under construction is to be  used,  for  residential,  business,  manufacturing  or  agricultural purposes,  and  where  pursuant  to  the  terms  and  provisions of such commitment or agreement such advance shall be made prior to or upon  the maturity of the loan by the lending bank or trust company.   Real  estate  security  for purposes of this section shall not include (a) an assignment of rents under a lease, (b) a mortgage or  other  lien upon  a  leasehold, (c) a mortgage or other lien upon leasehold, royalty or other rights  in  oil,  gas,  minerals,  standing  timber,  or  other products  of  land, (d) a mortgage or other lien made or given upon real estate and taken  as  collateral  security  for  loans  to  a  borrower, provided,  that  at  the  time  of  the making of the loan or commitment therefor, repayment thereof is reasonably expected to be made out of the  operations of such borrower or of the mortgagor, or (e)  such  mortgages or  other  liens  on  property  as may be specifically exempted from the limitations and restrictions of this subdivision by  the  superintendent of  financial  services  by  general or specific regulations. Nothing in this paragraph shall be construed to imply that security of a  kind  not mentioned herein is to be deemed real estate security.   The  limitations  and restrictions contained in this subdivision shall not prevent the acceptance of any real estate  security  to  secure  the payment  of  a  debt previously contracted in good faith. Every mortgage and every assignment of a mortgage taken or held by such bank  or  trust company  shall  immediately be recorded or registered in its name in the office of the clerk or the proper recording officer  of  the  county  in which  the real estate described in the mortgage is located, except that where the underlying real estate is located outside  the  state  of  New York  such  mortgage  or assignment may be recorded or registered in the name of a duly authorized nominee, and except that if such  mortgage  or assignment  of  mortgage or of an interest therein shall be taken from a corporation organized under the banking law or all of the capital  stock of  which  is owned by not less than twenty savings banks of this state, the  bank  or  trust  company  may  hold  such  mortgage  or  assignment unrecorded  unless  the  superintendent  shall  direct the bank or trust company to record the same. The recording or registering of  assignments of  mortgages shall not be required when not less than ten mortgages are assigned as security for a loan, the  term  of  which  does  not  exceed twelve months.   Any  bank  or  trust company may renew from time to time any loan upon the security of real estate lawfully made by it prior to June thirtieth, nineteen hundred thirty-seven.   None  of  the  prohibitions  and  restrictions   contained   in   this subdivision  shall  apply to any corporation all of the capital stock of which is owned by not less than twenty savings banks of this state.   4-a. A bank or trust company may, in addition to the authority granted under any other provisions of this article, make a  loan  to  a  natural person  upon the security of a mortgage which is not a first lien at the rate or rates agreed to by the bank or trust company and  the  borrower, subject  to such regulations as the superintendent of financial services may prescribe. Such  regulations  by  the  superintendent  of  financial services   may  include  such  restrictions  as  the  superintendent  of financial  services  finds  necessary  or  proper,   including   without limitation, a restriction as to the percentage of total assets which may be  invested  in  such  loans  or a restriction on the loan to appraisal value of property securing such loan.   For purposes of this subdivision, the term mortgage  shall  include  a lien on an existing ownership interest in 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.   5.  Make  any  loan  for  the  purpose of financing the purchase of or refinancing an existing ownership interest in 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, unsecured except to the extent of an assignment or transfer of the stock certificates or other evidence of ownership interest of the borrower  and  the  proprietary  lease  within ninety  days from the making of the loan, which shall exceed the maximum per cent of the loan permitted to be made on real estate improved  by  a single  family  residence  occupied  by  the  owner,  provided  that for purposes of this section the amount  of  the  purchase  price  shall  be  deemed  to  equal  the  appraised  value of such certificate of stock or other  evidence  of  an  ownership  interest,  or,  in  the  case  of  a refinancing,  the appraised value of such certificates of stock or other evidence  of  an  ownership interest and which shall fail to provide for full repayment of principal and interest within the same number of years as  a  conventional  mortgage  loan   previously   described   in   this subdivision,  provided that all real estate owned by such corporation or partnership shall be located within the state;  and  provided,  further, that   such   loan   shall   be  subject  to  such  regulations  as  the superintendent of financial services may from time to  time  promulgate. The  maximum  rate  of  interest which may be charged, taken or received upon any loan or forbearance  made  pursuant  to  this  subdivision  may exceed  the  rate  of  interest  prescribed  by  the  superintendent  of financial services in accordance with section fourteen-a by no more than one and one-half per centum per annum.   6. Make any loan or discount on the security of the shares of its  own capital stock, or, except as provided in section five thousand twelve of this  chapter, be the purchaser of any such shares, unless such security or purchase shall be necessary to minimize or avoid  loss  upon  a  debt previously  contracted  in  good  faith, and stock so purchased shall be sold at public or private sale, or otherwise  disposed  of,  within  six months  from  the  time  of its purchase unless the superintendent shall authorize such bank or trust company in writing to hold such shares  for a  longer  period.  Any  bank  or  trust  company  violating  any of the provisions of this subdivision shall forfeit to the people of the  state twice the amount of the loan or purchase.   7.  Knowingly  lend, directly or indirectly, any money or property for the purpose of enabling any person to pay for  or  hold  shares  of  its stock,  unless  the  loan  is  made  upon security having an ascertained market value of at least fifteen per centum more than the amount of  the loan.  Any  bank  or  trust  company  violating  the  provisions of this subdivision shall forfeit to the people of the state twice the amount of the loan.   8. Except in conformity with such rules  and  regulations  as  may  be promulgated  by  the  superintendent,  lend  any  sum  of  money  to any executive officer or  director  of  such  bank  or  trust  company.  The superintendent  shall have power to determine by regulation who shall be considered, under the provisions of this subdivision, to be an executive officer and what shall be  considered,  under  the  provisions  of  this subdivision, to be a loan to an executive officer or director. In making such  determination,  the  superintendent shall have power to include or exclude, subject to such conditions and limitations, if any, as he shall prescribe, any or all of the following: (1) any transaction as a  result of  which  an  executive  officer or director of a bank or trust company becomes obligated to such bank or trust company upon  any  note,  draft, bill  of  exchange  or  other  indebtedness, as maker, drawer, endorser, guarantor, surety or otherwise; and (2) any transaction as a  result  of which  a  corporation,  in which an executive officer or director or any combination of such persons, owns or controls a majority of  the  stock, or  as  a result of which a partnership in which an executive officer or director is a partner, becomes obligated or  renews  its  obligation  to such  bank  or  trust  company upon any note, draft, bill of exchange or other indebtedness, as maker, drawer,  endorser,  guarantor,  surety  or otherwise.  Every  bank or trust company violating this provision or any regulation issued pursuant thereto and every officer or director of such bank or trust company knowingly participating in such  violation  shall, for each offense, forfeit to the people of the state twice the amount of the loan.    No  executive  officer  or  director  of a bank or trust company shall borrow from the bank or trust  company  of  which  he  is  an  executive officer or director except as permitted by this section.