NY Banking L § 235 (2021)
2021 New York Laws BNK - Banking Article 6 - Savings Banks 235 - Investment of Funds.

§ 235. Investment of funds. A savings bank may invest in the following property and securities and no others:   1.  Obligations  of the United States, or those for which the faith of the United States is pledged to provide for the payment of the  interest and  principal,  or  those  for  which  annual  contributions to be paid pursuant to contract by the United  States  government  or  any  of  its instrumentalities  in  accordance  with  an act of congress entitled the "Housing Act of 1949", are pledged as security for the  payment  of  the interest and principal.   2.  Obligations of this state, issued pursuant to the authority of any law of the state, or those for which the faith of this state is  pledged to provide for the payment of the interest and principal.   3.  Obligations  of any state of the United States, or those for which the faith of any state of the United States is pledged  to  provide  for the  payment  of  the  interest  and  principal,  upon which there is no default and upon which there has been no default for  more  than  ninety days;   provided,  that  within  ten  years  immediately  preceding  the investment such state has not been in default for more than ninety  days in  the  payment  of  any part of principal or interest of any debt duly authorized by the legislature of such state to  be  contracted  by  such state  after  the  first day of January, eighteen hundred seventy-eight, except debts representing a refunding or adjustment of any  indebtedness originally contracted or in existence at that date or prior thereto.   4.  Obligations  of  or those for which the faith of any city, county, town, village, school district, poor  district,  water  district,  sewer district  or  fire  district in this state is pledged to provide for the payment of principal  and  interest,  provided  that  they  were  issued pursuant  to  law  and  the  faith  and  credit of the issuing municipal corporation  or  district  is  pledged  for  their  payment,  bonds  and debentures or other obligations of any public authority or commission or similar  body created or approved by the state of New York having assets of not less than fifty million dollars; and bonds and debentures of  any other  public  authority,  commission  or  similar body which is legally obligated to establish rates which while any debt  is  outstanding  will provide  sufficient  revenues for the cost of operation, maintenance and debt service, such debt service to include interest on  all  outstanding obligations and serial maturities and sinking funds, provided such other authority,  commission  or similar body shall issue financial statements at least annually which shall be available to the public, shall have had receipts  from  operations  during  each  of  the  five   fiscal   years immediately  preceding  date  of  investment  sufficient  after  meeting operation and maintenance expenses to cover debt service,  and  provided further that the revenues available for debt service received during the fiscal  year  immediately  preceding  investment  or  the average amount available  for  debt  service  for  the  three  fiscal  years  preceding investment  shall  have  been  adequate  to meet the maximum annual debt service of the bonds outstanding, and said obligations have not been  in default  as  to  principal  or  interest; and bonds, debentures or other obligations of any  public  authority  or  commission  or  similar  body created  by  the  state  of  New  York, the average of receipts from the operations of which, during the three years  immediately  preceding  the date  of  investment,  after meeting operation and maintenance expenses, were not less than one hundred  twenty-five  per  cent  of  the  maximum annual  debt service on the bonds outstanding and which obligations have not been in default as to principal or interest.   5. (a) Obligations, excluding however, non-negotiable warrants, of any city or of any school district coterminous with or which  includes  such city,  or  of  any  county  situated  in one of the states of the United  States which adjoins the state of New York, provided said city or county has a population, as shown by the last  federal  census  next  preceding such investment, of not less than ten thousand inhabitants, and has not, within  twenty-five  years preceding said investment, defaulted for more than one hundred and twenty days in the payment of any  part  either  of principal   or  interest  of  any  bond,  note,  or  other  evidence  of indebtedness. The term "city" in this paragraph shall include any  city, town,  borough, village, township or other incorporated municipality. An investment made before  August  first,  nineteen  hundred  twenty-eight, shall  not  under  the population provision of this paragraph, as to the then owner thereof, cease to be an authorized investment for the  moneys of savings banks.  (b)  Obligations,  excluding  however, non-negotiable warrants, of any city or of any school district  or  county  coterminous  with  or  which includes  such  city,  situated in any other of the states of the United States the obligations of which state are an authorized  investment  for the  moneys  of  savings  banks, provided said city has a population, as shown by the last federal census next preceding said investment, of  not less than thirty thousand inhabitants, and was incorporated as a city at least  twenty-five years prior to the making of said investment, and has not, within twenty-five years preceding said investment,  defaulted  for more  than one hundred and twenty days in the payment of any part either of principal or interest  of  any  bond,  note,  or  other  evidence  of indebtedness. Provided further, that obligations issued by a city having a  population  of  less than forty-five thousand inhabitants as shown by said census or by a school district or county shall not be an authorized investment for the moneys of  savings  banks  unless  the  city,  school district  or county has power to levy taxes on the taxable real property therein for the payment of such obligations without limitation  of  rate or amount.  (c)  If  at  any  time  the  indebtedness  of  any  city  described in paragraphs (a) or (b)  of  this  subdivision  or  in  paragraph  (c)  of subdivision  twenty-five of this section, together with the indebtedness of any district, municipal corporation or subdivision, except a  county, which  is wholly within the boundaries of such city, and together with a proportionate part  of  the  indebtedness  of  any  district,  municipal corporation  or subdivision, except a county, which is partly within the boundaries of such city, and together with so much of  the  indebtedness of  any  county  wholly  within  the  boundaries  of  such  city  and  a proportionate part of so much of the indebtedness of any  county  partly within  the  boundaries  of such city, as shall be in excess of five per centum of the valuation  for  the  purposes  of  taxation  of  the  real property  in  any  such  county,  shall  exceed twelve per centum of the valuation of real property in said city for the  purposes  of  taxation, the  obligations of such city or of any school district or of any county coterminous with or which includes such  city,  shall,  thereafter,  and until  such  indebtedness  shall  be reduced to twelve per centum of the valuation of real property in said city for the  purposes  of  taxation, cease to be an authorized investment for the moneys of savings banks. If there  is  no county wholly or in part within such city or if the county wholly or in part within such city  has  neither  any  indebtedness  nor power  to  incur  indebtedness,  the  obligations of such city or of any school district coterminous with or which includes such city, shall  not cease  to  be  an  authorized  investment unless such indebtedness shall exceed the percentage  above  provided  plus  an  additional  three  per centum.  If  at  any  time  the  indebtedness of any county described in paragraphs (a) or (b) shall exceed five per centum of the  valuation  of real  property  for  the  purposes  of taxation, the obligations of such  county shall thereafter, and until such indebtedness shall be reduced to five per centum of the valuation of real property for  the  purposes  of taxation, cease to be an authorized investment for the moneys of savings banks.  A proportionate part of any indebtedness for the purpose of this paragraph shall be, unless otherwise apportioned by law, that proportion which the valuation of taxable real  property  of  a  county,  district, municipal  corporation  or  subdivision  within the boundaries of a city bears to the total valuation  of  all  taxable  real  property  of  said county,   district,   municipal  corporation  or  subdivision.  Contract liability shall be excluded unless represented by stocks, bonds,  notes, certificates  of  indebtedness  or other like instruments and water debt shall be excluded and sinking funds applicable  to  debts  not  excluded shall  be  deducted,  in  determining  the  amount  of  any indebtedness hereunder.  (d) The provisions of paragraph (c) shall not apply to the obligations of any city which has taxable real property with  a  valuation  for  the purposes  of taxation in excess of two hundred million dollars and which has a population as shown by the last decennial federal  census  of  not less  than one hundred fifty thousand inhabitants and shall not apply to the obligations of any school district or  county  coterminous  with  or which  includes  such  city, provided that the city, school district, or county, as the case may be, has power to levy taxes on the taxable  real property  therein for the payment of such obligations without limitation of rate or amount.  (e) The valuation of property for  purposes  of  taxation  under  this subdivision  and  under subdivision twenty-five of this section shall be an official valuation duly made and recorded  and  in  cases  where  the assessed  valuation is based on a percentage of such official valuation, the percentage used  shall  have  been  authorized  under  statutory  or charter power prior to the determination of such assessed valuation.  (f) No obligations issued after the year nineteen hundred thirty-eight by  any city, county, school district or other municipality of any state other than New York shall be an authorized investment for savings  banks unless  such  city,  county, school district or other municipality shall have power to levy taxes on the taxable real property  therein  for  the payment of such obligation without limitation of rate or amount.  (g)  Obligations  issued by a city, village, town, county, department, agency, district, authority, commission or other  public  body  in  this state  or  any  other  state  of  the  United  States payable out of the revenues of a public utility system providing water, electricity, gas or sewerage service, provided that if the public utility system is  located outside the state, it must serve an area having a population of not less than one hundred thousand. Said city, village, town, county, department, agency,  district,  authority,  commission or other public body shall be legally obligated by statute, charter, indenture  or  covenant  to  fix, maintain  and collect charges or taxes, or both, to provide net revenues after operation and maintenance of the facilities used to  provide  such service sufficient to meet maturing interest, principal and sinking fund payments  on  such  obligations  or  shall  be  empowered to require the fixing, maintaining, and collecting of such charges or taxes,  or  both, by duly authorized public officers or bodies, and shall be restrained by statute,  charter,  indenture  or  covenant from disposing of all or any substantial portion of such facilities unless provision is  made  for  a continuance  of the interest, principal and sinking fund payments due on such obligations, or for the retirement of  such  obligations,  provided said   city,   village,  town,  county,  department,  agency,  district, authority, commission or other public body shall have had  net  earnings during   each   of  the  five  years  immediately  preceding  investment  sufficient to cover all debt service and further provided that  the  net earnings  available  for debt service for the year immediately preceding investment shall have been sufficient to meet the  maximum  annual  debt service  of  the obligations outstanding, and said obligations shall not have been in default as to principal or interest.   5-a. Bonds and mortgages and notes and mortgages  on  unimproved  real property   in  this  state  or  outside  this  state,  subject  to  such limitations as the superintendent of financial services may prescribe.   6. Bonds and mortgages  and  notes  and  mortgages  on  improved  real property,  including  leasehold  estates, in this state, and, subject to such limitations and  conditions  as  the  superintendent  of  financial services  may  prescribe  by  general  regulation, in any other location outside this  state.  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.  (c) For the purposes of this  subdivision  real  property  upon  which there  is  a  building  in process of construction, which when completed will constitute a permanent  improvement  with  a  value  of  more  than twenty-five  per  centum  of  the  value  of such real property shall be considered  improved  real  property,  as  shall  real   property   with improvements  thereon that are capable of producing income sufficient to pay all costs of operation and maintenance of such  real  property,  all taxes  thereon and to effect full repayment of principal and interest in accordance with the terms of the mortgage loan to be  made  pursuant  to this subdivision.  (e)  Except  as  hereinafter  provided  no  investment in any bond and mortgage or any note and mortgage shall be  made  by  any  savings  bank except upon the written and signed certificate of an appraiser appointed pursuant  to  policies established by the board of trustees stating that in such appraiser's judgment  it  affords  adequate  security  for  such investment.  Such  certificate  shall  be  filed and preserved among the records of the savings bank.  (f) For the purpose of protecting its interests  a  savings  bank  may release any obligation to pay, or guarantee of the payment of, principal or  interest,  or  otherwise  waive  or  modify  any  of  the  terms and conditions of any bond and mortgage, and of any note and  mortgage,  and may  extend or reextend any bond and mortgage and any note and mortgage, and may also accept a sum less than the principal amount thereof in full payment and satisfaction of the same.   A savings bank may also waive its right to enforce payment of any bond or note secured by a mortgage on real property and may waive  its  right to  obtain  a  deficiency  judgment against the borrower in the event of foreclosure of such mortgage.  (g) Every mortgage and every assignment of a mortgage taken or held by a savings bank shall immediately be recorded or registered in the office of the proper recording officer of the county in which the real property described in the mortgage is located. This paragraph shall not apply  to a  participating interest in any mortgage which shall have been acquired by a savings bank  under  the  provisions  of  subdivision  fourteen  of section  two hundred thirty-four, paragraph (h) of this subdivision, and subdivision eighteen of section two hundred thirty-five.  (h) A savings bank may, subject to such regulations  and  restrictions as  the  superintendent  of financial services finds to be necessary and proper, participate and invest in  (1)  loans  of  a  type  that  it  is authorized  to  invest in pursuant to subparagraph (a) of paragraph four of subdivision eight of section two hundred thirty-five of this  chapter and  (2)  in  any bond and mortgage or note and mortgage on improved and unencumbered real property including leasehold estates, in which  it  is  individually  authorized to invest, which said mortgage is duly recorded or registered in the office of  the  proper  recording  officer  of  the county  in which the real property described in the mortgage is located, provided  that no such investment shall be made by a savings bank in any part interest in such mortgage which is junior  or  subordinate  to  any other part interest nor if the aggregate amount of all part interests in such  mortgage  when  added  together  will exceed any percentage of the appraised value of such real  property  by  which  the  authority  of  a savings  bank  to  invest  individually  in  such  mortgage  is limited. Investments made by any savings bank in mortgage loans pursuant to  this subdivision  and  pursuant  to  subdivision twenty-eight of this section shall be  included  in  the  computation  of  permissive  investment  in mortgage  loans  pursuant  to  paragraph  (d) of subdivision six of this section.  (i) A mortgage loan upon a leasehold estate shall not be  made  unless such  leasehold  estate  shall  have  an unexpired term of not less than twenty-one years, which term may include the term provided by an  option of  renewal enforceable at the exclusive discretion of the savings bank. No mortgage loan upon a leasehold estate shall be made or acquired by  a savings  bank  unless the terms thereof shall provide, regardless of the period of the loan, for payments to be  made  by  the  borrower  on  the principal  thereof  at least once in each year in amounts which would be sufficient to completely amortize  a  loan  whose  period  extended  for four-fifths  of  the unexpired term of the lease, which term may include the term provided by an option of renewal enforceable at  the  exclusive discretion  of the savings bank; or, in the case of a mortgage loan upon a leasehold estate in real property upon which there is  a  building  in process of construction, such payments of principal need not be required during  the  period  of  construction  or  the  first three years of the mortgage, whichever is shorter. The provisions of paragraphs  (c),  (d), (e),  (f), (g), and (h) of this subdivision shall be applicable to loans made upon leasehold estates.   6-a. A savings bank may, in addition to the  authority  granted  under any  other subdivisions of this section, 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 savings bank 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.   7.   Railroad   obligations  as  provided  in  this  subdivision.  (1) Obligations issued, assumed or guaranteed as to principal  and  interest by endorsement, or so guaranteed which guaranty has been assumed; or  (2) Obligations for the payment of the principal and interest of which a  railroad  corporation  such  as  is  described  in  this paragraph is obligated under the terms of a lease made or assumed; or  (3) Equipment obligations in  respect  of  which  liability  has  been incurred:  by  a railroad corporation incorporated under the laws of the United States, or any state thereof, and owning and operating within the United States  not  less  than  five  hundred  miles  of  standard-gauge  railroad line, exclusive of sidings, or if the mileage so owned shall be less  than  five hundred miles, the railroad operating revenues from the operation of all railroad operated by it, including such  revenues  from the  operation  of  all  railroad  controlled  through  ownership of all (except directors' qualifying shares) of the voting stock of the  owning corporation, shall have been not less than ten million dollars each year for  at  least  five  of  the  six  fiscal  years  next  preceding  such investment; provided, however, (1) that in the five  fiscal  years  next preceding  such  investment,  the  amount  of  income  of  such railroad corporation, available for its fixed charges,  as  hereinafter  defined, shall  have  averaged not less than two and one-half times the amount of fixed charges at the time of investment,  as  hereinafter  defined;  (2) that  at  no  time  within  such  period  of  five  years  such railroad corporation, unless in process of reorganization or  readjustment  since completed,  pursuant  to applicable law, shall have failed regularly and punctually to pay the matured principal and interest on its mortgage and funded indebtedness; and  (3)  that  the  security,  if  any,  for  such obligations shall be property wholly or in part within the United States and which obligations shall be  (a)  fixed  interest-bearing  bonds  secured  by  direct  mortgage  on railroad owned or operated by such railroad corporation; or  (b) fixed  interest-bearing  bonds  secured  by  first  mortgage  upon terminal,  depot  or  tunnel  property,  including  lands, buildings and appurtenances, used in the service of transportation by one or more such railroad corporations, provided that such bonds be the direct obligation of, or that payment of principal and interest thereof be  guaranteed  by endorsement  by,  or  guaranteed  by endorsement which guaranty has been assumed by, one or more such railroad corporations; or  (c) equipment  obligations,  comprising  bonds,  notes,  certificates, conditional   sale   agreements   or  assignments  of  conditional  sale agreements and participations therein, issued or made in connection with the purchase for use on railroads of new  standard-gauge  rolling  stock through  the medium of an equipment agreement, and which obligations, so long as any thereof shall be outstanding and unpaid or  unprovided  for, shall be secured by an instrument (1) vesting title to such equipment in a  trustee  free  of  encumbrance,  or (2) creating a first lien on such equipment, or, pending such vesting of title, by the deposit of cash  in trust,  which deposit may be invested in whole or in part in obligations of the United States or obligations for which the faith  of  the  United States  is  pledged  to  provide  for  the  payment  of the interest and principal, or obligations of any public housing agency as defined in the United States housing act of nineteen hundred thirty-seven, as  amended, in  the  United States as are secured either (1) by an agreement between the public housing agency and the public housing administration in which the public housing agency agrees  to  borrow  from  the  public  housing administration,  and the public housing administration agrees to lend to the public housing agency, prior to the maturity  of  such  obligations, which  obligations  shall  have  a  maturity  of  not more than eighteen months, moneys in an  amount  which,  together  with  any  other  moneys irrevocably  committed  to  the payment of interest on such obligations, will suffice to pay the principal of such obligations with  interest  to maturity  thereon,  which  moneys  under the terms of said agreement are required to be used for the purpose of paying the principal of  and  the interest  on  such  obligations at their maturity, or (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the  public  housing  administration  if  such contract shall contain the covenant by the public housing administration which  is  authorized by section 1421a(b) of Title 42, U.S. Code, and if  the maximum sum and  the  maximum  period  specified  in  such  contract pursuant  to  section 1421a(b) of Title 42, U.S. Code, shall not be less than the annual amount and the period for payment which are requisite to provide  for the payment, when due, of all installments of principal and interest on such obligations, to an amount equal to the face  amount  of such  equipment obligations issued in respect of such equipment title to which is not yet so vested; provided further, that the maximum amount of such obligations so issuable shall not exceed eighty per centum  of  the cost  of such equipment; and provided further, that the owner, purchaser or lessee, or the owners, purchasers or lessees, of such equipment shall be obligated by the terms of such obligations or of such instrument  (a) to  maintain such equipment in proper repair; (b) to replace any thereof that may be destroyed or released with other equipment of  equal  value, or,  if  released  in  connection  with  a  sale thereof, to deposit the proceeds of such sale in trust for the benefit of the  holders  of  such obligations  pending  replacement  of such equipment; (c) to pay any and all taxes or other governmental charges that may be required by  law  to be  paid  upon  such  equipment;  (d)  to  pay,  in  accordance with the provisions of such obligations or of such instrument, to holders, or  to such  trustee for the benefit of holders, of such obligations the amount of interest due thereon or of the dividends payable in respect  thereof; and  (e)  to  pay  the amount of the entire issue of such obligations in such annual or semi-annual installment each year throughout a period  of not  exceeding fifteen years from the first date of issue of any thereof that the amount of the respective unmatured  installments  at  any  time outstanding shall be approximately equal; provided, further, that unless the  owner, purchaser or lessee of such equipment or one or more of such owners, purchasers or lessees shall be such railroad corporation  as  is described  in  and  meets the requirements of this subdivision preceding paragraph (a), such obligations shall be guaranteed by endorsement as to principal and as to interest or dividends by such railroad corporations; or  (d) fixed interest-bearing bonds of such railroad corporation  secured by  irrevocable  pledge  as  collateral under a trust agreement of other railroad bonds that are legal investments for savings banks  under  this section, have a maturity not earlier than the bonds that they secure and of  a total face amount not less than the total face amount of the bonds that they secure; or  (e) fixed interest-bearing mortgage bonds other than  those  described in paragraphs (a) or (b) hereof, income mortgage bonds, collateral trust bonds or obligations other than those described in paragraph (d) hereof, or  unsecured  bonds or obligations, issued, assumed or guaranteed as to principal and  interest  by  endorsement  by,  or  so  guaranteed  which guaranty  has  been assumed by, such railroad corporation, provided that (a) the annual fixed charges and contingent  interest  charges  of  such railroad  at  the time of investment shall not exceed thirty per cent of the average annual income available for such charges for the five fiscal years next preceding, and (b) the net income of such railroad after  all taxes  and  charges  shall  have  averaged not less than fifteen million dollars annually in such period.   The amount of income available for fixed charges shall be  the  amount obtained  by  deducting  from  gross  income  all  items  deductible  in ascertaining net income other  than  federal  income  taxes,  contingent income  interest  and  those  constituting  fixed charges. Fixed charges shall be: rent for leased roads, miscellaneous rents, fixed interest  on funded  debt,  interest on unfunded debt and amortization of discount on funded debt.    Accounting terms used in the preceding paragraph shall  be  deemed  to refer  to  those  used  in  the  accounting  reports  prescribed  by the accounting regulations for common carriers subject to the provisions  of the interstate commerce act. If the interstate commerce commission shall prescribe  accounting  regulations  wherein  shall  be  defined the term income available for fixed charges  and  the  term  fixed  charges,  the definitions  thereof as so prescribed shall be taken and used in lieu of the definitions set forth in the preceding paragraph of this subdivision for all purposes hereof, except that federal income taxes shall  not  be deducted, nor shall federal income tax credits be included, in computing income  available for fixed charges. In determining income available for fixed charges and fixed  charges  pursuant  to  this  paragraph  or  the immediately  preceding paragraph interest, dividends and rentals paid by a railroad corporation and  included  in  both  such  amounts  shall  be eliminated.   For  all  purposes  of this subdivision seven, the revenues, earnings, income and fixed  charges  of,  and  dividends  paid  by,  any  railroad corporation  prior to the acquisition of all or substantially all of its railroad  lines  by  another  railroad  corporation,   through   merger, consolidation,  conveyance  or  lease, shall, while such lines remain in the possession of the acquiring corporation,  be  deemed  to  have  been revenues,  earnings, income and fixed charges of, and dividends paid by, such acquiring corporation.   Whenever a railroad corporation  shall  own  (directly  or  through  a subsidiary  all  of  the  stock  of  which, except directors' qualifying shares, is owned by such corporation) at least ninety per  cent  of  the capital  stock  of one or more other railroad corporations, the property of which is operated by it under lease, the consolidated  statements  of all  such railroad corporations may be used in determining the amount of income available for fixed charges and the amount of fixed charges.   Obligations of a railroad corporation the railroad lines of which have been so leased prior to April fifth, nineteen hundred  twenty-nine,  for the  payment  of which the lessee is not obligated, that are outstanding and officially listed by the department of  financial  services  of  the state of New York as authorized investments prior to that date, shall be and   remain  authorized  investments  hereunder;  provided,  that  such railroad lines shall be in the  possession  of  and  be  operated  by  a railroad  corporation such as is described in and meets the requirements of the provisions of this subdivision preceding paragraph (a).   Notwithstanding any other provisions of  this  subdivision,  equipment obligations  described  in  paragraph  (c) which shall have been issued, assumed or guaranteed by any  railroad  corporation  classified  by  the interstate commerce commission as a class one railroad and which are not in default, shall be authorized investments hereunder.   Notwithstanding  any  of  the  provisions  of  this subdivision, fixed interest-bearing  obligations  of   railroad   corporations,   excluding terminal, depot and tunnel corporations, which are eligible for purchase by  savings  banks  on December thirty-first, nineteen hundred fifty-two under the provisions of subdivisions seven or nineteen of this  section, or  which shall thereafter become eligible pursuant to the provisions of this subdivision seven, as amended, if not  in  default,  shall  be  and remain  eligible hereunder, provided that the income available for fixed charges, as herein  defined,  of  the  railroad  corporation  which  has issued,  assumed or guaranteed such obligations, or which operates under lease the railroad lines of the corporation which has issued, assumed or guaranteed such obligations, shall have averaged  for  the  five  fiscal years  next  preceding  the  time  of investment not less than twice the interest charges  for  the  last  such  fiscal  year  on  all  equipment  obligations,  and other obligations eligible hereunder, of such railroad corporation which remain outstanding at time of investment.   Fixed  interest-bearing  bonds of terminal, depot and tunnel companies which  are  eligible  for  purchase  by  savings   banks   on   December thirty-first,   nineteen  hundred  fifty-two  under  the  provisions  of subdivisions  seven  or  nineteen  of  this  section,  or  which   shall thereafter   become   eligible   pursuant  to  the  provisions  of  this subdivision seven, as amended, shall be and remain  eligible  hereunder, provided  that  the  principal  and  interest  thereof  be guaranteed by endorsement by, or guaranteed by endorsement  which  guaranty  has  been assumed  by,  a railroad corporation which meets the requirements of the preceding paragraph for continuing the  eligibility  of  its  own  fixed interest-bearing obligations.   Not more than twenty-five per centum of the assets of any savings bank shall   be  loaned  or  invested  in  the  bonds,  notes,  certificates, conditional sale agreements, assignments of conditional sale  agreements and  participations  therein  in this subdivision seven defined, and not more than ten per centum of such assets shall be invested in such bonds, notes,  certificates,  conditional  sale  agreements,   assignments   of conditional sale agreements and participations therein for which any one railroad corporation of this state shall be obligated, and not more than five  per  centum  of such assets shall be invested in the bonds, notes, certificates, conditional sale agreements,  assignments  of  conditional sale  agreements  and  participations therein for which any one railroad corporation not of this state shall be obligated.   Street  railroad  corporations  shall  not  be   considered   railroad corporations within the meaning of this subdivision.   7-a.  Any  savings  bank  which prior to April first, nineteen hundred thirty-eight acquired any railroad obligation eligible at  the  time  of acquisition  for  investment  by savings banks may continue to hold such obligation as though the same continue to be eligible  by  law  for  new investment by such savings bank.   8.   Promissory  notes  and  other  agreements  as  provided  in  this subdivision.  (1) Promissory notes payable to the order of the  savings  bank  which are:  (a)  Secured  by  one  or  more  mortgages in which a savings bank may invest; provided the amount loaned is not in excess of ninety per centum of the  principal  sum  secured  by  such  mortgage  or  mortgages.  The assignment  of  every mortgage taken as security for any such note shall be recorded or registered in the office of the proper recording  officer of  the  county in which the real property described in such mortgage is located, unless such mortgage or mortgages have been so  assigned  by  a savings bank.  (b) Secured by any of the stocks and bonds in which a savings bank may invest;  provided  that  (1)  the amount of the loan is not in excess of ninety per centum of the market value of such stocks and bonds; and  (2) the  term  "stocks," as used in this paragraph, shall be deemed to refer to stocks eligible for investment  by  a  savings  bank  other  than  in accordance  with  the  provisions  of  subdivision  twenty-six  of  this section.  (c) Made by a savings and loan association which has been incorporated three years or more and has an accumulated capital  of  at  least  fifty thousand dollars.  (2)  Promissory  notes  payable to the order of the savings bank which are secured by the assignment of a deposit in any savings bank; provided the amount of the loan is not in excess of the amount of such deposit.  (3) Any loan secured  by  not  less  than  a  like  amount  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.  (4) (a) Promissory notes representing loans and advances of credit for the  purpose  of financing alterations, repairs and improvements upon or in connection with, or as the superintendent may authorize the equipping of existing structures, and the building of new structures, upon  urban, suburban,   or   rural   real   property   (including  the  restoration, rehabilitation, rebuilding and replacement of  such  improvements  which have  been  damaged  or destroyed by earthquake, conflagration, tornado, hurricane, cyclone, flood or other catastrophe), by the  owners  thereof or by lessees of such real property under a lease expiring not less than six  months  after  the  maturity of the loan or advance of credit or by lessees under proprietary  leases  from  a  corporation  or  partnership formed  for  the  purpose  of  the cooperative ownership of real estate, provided: (1) the amount of such loan, advance of  credit,  or  purchase made  for  the purpose of financing the alteration, repair, equipping or improvement of existing structure or the building of new structure  does not  exceed  twenty  thousand dollars; (2) the maturity thereof does not exceed one hundred twenty-one months; (3) the rate which may be paid  by the borrower for interest, discount, and fees of all kinds in connection with the transaction shall be the rate or rates agreed to by the savings bank  and the borrower in the promissory note; and (4) the loan shall be paid in equal or substantially  equal  monthly  installments  calculated from  the  date of the note; provided, however, that in addition thereto the savings bank may contract to  charge  the  borrower:  (i)  the  fees payable  to  the appropriate public officer to perfect any lien or other security interest taken to secure the loan or the premium, not in excess of such filing fee, payable for any insurance in lieu  of  such  filing; (ii)  in  case  of default, and in accordance with the provisions of the instrument evidencing the obligation, either a fine in an amount not  to exceed five cents per dollar on any installment which has become due and remained  unpaid  for  a  period in excess of ten days, but no such fine shall exceed five dollars and only one fine shall be  collected  on  any such  installment  regardless  of  the period during which it remains in default, and provided further that should the aggregate  of  such  fines collected  in  connection  with  any  loan exceed two per centum of such loan, or in any event twenty-five dollars, the savings bank shall refund such excess to the borrower within sixty days after the loan is paid  in full,  or  subject  to an allowance of unearned interest attributable to the amount in default, interest on each amount past due at a rate not in excess of the  rate  provided  for  in  the  instrument  evidencing  the obligation;   (iii)   the   actual  expenditures,  including  reasonable attorney's fees, for necessary court  process;  and  (iv)  in  case  the savings  bank  insures  a borrower under a credit unemployment insurance policy, group life insurance  policy,  group  health  insurance  policy, group  accident insurance policy, or group health and accident insurance policy, or requires insurance on personal  property  securing  any  such loan,  an  amount not in excess of the premiums chargeable in accordance with rate schedules then in effect and on file with  the  superintendent of financial services for such insurance by the insurer. No savings bank shall  require  a  borrower  to  place  any  sum  on deposit, or to make deposits in lieu of regular periodic installment payments, or to  do  or refrain  from  doing any other act which would entail additional expense or sacrifice, as a condition precedent to granting a loan or advance  of credit  under  the  authority  of  this subdivision. Notwithstanding the  provisions of this paragraph no refund of excess fines shall be required if it amounts to less than one dollar.  (b) Promissory notes representing loans and advances of credit for the purpose  of defraying the cost of attendance of one or more students the income of whose family is fifteen thousand dollars or more per  year  at the  time the loan or loan commitment is made at a university or college or for the purpose of defraying the cost of attendance of  one  or  more students  at  an  elementary  or  secondary  school  providing education required for minors; provided, however, that no such  loan  shall  bring the  total  unpaid  principal  balances of any one or more loans made by such savings bank to the borrower pursuant to this  subparagraph  to  an amount  in  excess of thirty thousand dollars; and further provided that the maturity of any such loan does not exceed  eighty-five  months;  and further  provided  that  the  rate which may be paid by the borrower for interest, discount, and  fees  of  all  kinds  in  connection  with  the transaction shall be the rate or rates agreed to by the savings bank and the  borrower  in  the promissory note, reckoned on each loan or advance from the date thereof, calculated on any of the following bases: (i)  on the unpaid principal amount of such loans and advances from time to time outstanding,  or  (ii)  for each month on an average balance outstanding determined by dividing  by  two  the  sum  of  the  balances  of  unpaid principal  of  such  loans  and advances outstanding on two dates during such month, as specified in such agreement; the  first  of  which  dates being  not  later  than  the  fifteenth day of such month and the second being not earlier than the sixteenth day of such month and not less than ten nor more than twenty days after the first day,  or  (iii)  for  each month on a fixed amount selected from a schedule, which fixed amount may exceed the average daily balance under (i) above, or the average balance if  determined under (ii) above, by a differential of not more than five dollars, provided the same fixed  amount  is  also  used  for  computing interest  for any month for which such balance exceeds said fixed amount by any amount up to at least the same differential; and further provided that the loan shall be paid in  equal  or  substantially  equal  monthly installments  calculated  from the date of the note. No fee, commission, expense, or other charge whatsoever shall be taken,  received,  reserved or contracted for in addition to the maximum rate of interest authorized by  this  subparagraph  except  (i)  the fees payable to the appropriate public officer to perfect any lien or other security interest  taken  to secure  the  loan  or  the  premium,  not  in excess of such filing fee, payable for any insurance in lieu  of  such  filing;  (ii)  in  case  of default,  and  in  accordance  with  the  provisions  of  the instrument evidencing the obligation, either a fine in an amount not to exceed five cents per dollar on any installment which has become  due  and  remained unpaid for a period in excess of ten days, but no such fine shall exceed five  dollars  and  only  one  fine  shall  be  collected  on  any  such installment regardless of the period during which it remains in default, and provided further that should the aggregate of such  fines  collected in  connection  with  any loan exceed two per centum of such loan, or in any event twenty-five dollars, the savings bank shall refund such excess to the borrower within sixty days after the loan is paid  in  full,  or, subject  to an allowance of unearned interest attributable to the amount in default, interest on each amount past due at a rate not in excess  of the rate provided for in the instrument evidencing the obligation; (iii) the  actual  expenditures,  including  reasonable  attorney's  fees, for necessary court process; and (iv) in case the  savings  bank  insures  a borrower  under  a  credit  unemployment  insurance  policy,  group life insurance  policy,  group  health  insurance  policy,   group   accident insurance  policy,  or  group  health  and accident insurance policy, or  requires insurance on personal  property  securing  any  such  loan,  an amount  not in excess of the premiums chargeable in accordance with rate schedules then  in  effect  and  on  file  with  the  superintendent  of financial  services  for  such insurance by the insurer. No savings bank shall require a borrower to  place  any  sum  on  deposit,  or  to  make deposits  in  lieu of regular periodic installment payments, or to do or refrain from doing any other act which would entail  additional  expense or  sacrifice, as a condition precedent to granting a loan or advance of credit under the authority of this subparagraph, except under such terms and conditions as the superintendent may  from  time  to  time  approve. Notwithstanding  the provisions of this subparagraph no refund of excess fines shall be required if it amounts to less than one dollar.  (c) Promissory notes secured by mobile home chattel paper evidencing a monetary obligation incurred to finance the purchase of  a  mobile  home located  at  the  time  of such purchase, or to be located within ninety days, at a semipermanent site within the state or in a contiguous  state and  to  be  maintained  as  a residence of the borrower, the borrower's spouse, child, grandchild, parent or grandparent.  (1) For this subparagraph:  (i) "mobile home chattel paper"  means  written  evidence  of  both  a monetary  obligation  and  a  security  interest  of first priority in a mobile home and any equipment installed or to be installed therein; and  (ii)  "mobile  home"  or  "manufactured  home"  means   a   structure, transportable  in  one or more sections, which in the traveling mode, is eight body feet or more in width or forty body feet or more  in  length, or  when  erected  on site, is three hundred twenty or more square feet, and which is built on a permanent chassis and designed to be used  as  a dwelling  with  or  without  a  permanent  foundation  when connected to required utilities, and includes the plumbing, heating, air-conditioning and electrical systems contained therein.  (2) If the loan is for the purpose of financing the purchase of a  new mobile home,  (i)  it shall mature not later than two hundred forty months after the date thereof, and  (ii) the amount advanced shall not exceed one hundred per cent of  the sum  of  (a)  the  purchase  price  of  such  mobile home (including any installed equipment) plus (b) the price of any new  equipment  installed or to be installed by the dealer.  (3)  If  the  loan for the purpose of financing the purchase of a used mobile home,  (i) it shall mature not later than two hundred forty months after  the date thereof, and  (ii)  the amount advanced shall not exceed one hundred per cent of the purchase price of the mobile home actually paid (including any installed equipment).  (4) The loan shall be payable in equal or substantially equal  monthly installments  calculated  from the date of the loan. Interest, which may be taken in advance, may be charged thereon, computed from the  date  of the  loan to the date of the last installment payable thereunder, if the loan has a maturity (i) not exceeding thirty-seven months, at a rate not to exceed six dollars per annum discount per one hundred dollars of  the face amount or ten dollars if the interest so computed is less than that amount,  or  (ii) exceeding thirty-seven months, at a rate not to exceed five dollars per annum discount, per one hundred  dollars  of  the  face amount  or  ten  dollars  if  the interest so computed is less than that amount; provided that the interest which may be charged; if  it  exceeds ten  dollars,  shall  not  exceed  one  per cent per month on the unpaid principal balance.  (5) The authorized interest shall  include  all  charges  incident  to investigating and making any loan. No fee, commission, expense, or other charge  shall  be permitted except that the savings bank may contract to charge the borrower (i) the fees payable to a public officer to  perfect any  lien  or  other  security interest taken to secure the loan, or the premium, not in excess of such fee, payable for any insurance in lieu of such filing; (ii) in  case  of  default,  and  in  accordance  with  the instrument  evidencing the obligation, either a fine in an amount not to exceed five per cent  on  any  installment  which  has  become  due  and remained  unpaid  for  a  period in excess of ten days, but no such fine shall exceed five dollars and only one fine shall be  collected  on  any such installment regardless of the duration of the default, and provided further  that should the aggregate of such fines collected in connection with any loan exceed two per cent of such loan or  twenty-five  dollars, the  savings  bank  shall refund such excess within sixty days after the loan is paid in full, or, subject to an allowance of  unearned  interest attributable  to the amount in default, interest on each amount past due at a  rate  not  in  excess  of  one  per  cent  per  month  during  the delinquency;   (iii)   the  actual  expenditures,  including  reasonable attorney's fees for necessary  court  process,  and  (iv)  in  case  the savings  bank  insures  a borrower under a credit unemployment insurance policy, group life, health,  accident,  or  group  health  and  accident insurance  policy,  or  requires insurance on the property securing such loan, an amount not in excess of the premiums  lawfully  chargeable.  No savings bank shall require a borrower to place any sum on deposit, or to make deposits in lieu of regular periodic installment payments, or to do or  refrain  from  doing  any  other  act  which would entail additional expense or sacrifice, as a condition to a mobile home loan except as the superintendent may from time to time approve. No refund of excess  fines need be made if it amounts to less than one dollar.  (6)  As  a  condition  of  any loan made pursuant hereto, the borrower shall certify that the mobile home, against which the loan is  made,  is intended  to  be  maintained  in the state or in a contiguous state as a residence of the borrower, the  borrower's  spouse,  child,  grandchild, parent  or grandparent. If the mobile home shall not be so maintained on the ninetieth day next succeeding the date of  the  loan  or  if  it  is relocated  so  as  to  no longer be located in the state or a contiguous state at any time before the first anniversary of the date of the  loan, then,  in  either  event and notwithstanding anything to the contrary in this subparagraph, the loan and  all  authorized  charges  shall  become immediately  due  and  payable  subject  to  the  refund  provisions  of subparagraph (c) of paragraph four and the borrower may, if the contract so provides, be required to pay as an additional  authorized  charge,  a penalty  in  an  amount not to exceed two per cent of the face amount of the loan.  (7) No investment shall be made by a savings bank pursuant  hereto  if the  total  amount invested by it pursuant to this subparagraph exceeds, or by the making of such investment will  exceed,  an  amount  equal  to thirty per cent of the assets of the savings bank.  (8)  Subject  to such limitations and conditions as the superintendent of financial services may prescribe by  general  regulation,  a  savings bank  may  make  a  loan pursuant to this subparagraph which the federal housing administrator has insured or has made a commitment to insure and may receive and hold such  debentures  as  are  issued  by  the  federal housing  administrator  in  payment  of  such  insurance,  or  which  is guaranteed pursuant to the provisions of the act  of  congress  entitled the  "Servicemen's  Readjustment  Act  of  1944."  No  law of this state prescribing the nature, amount or form of security or requiring security  upon which loans or advances of credit may be  made  or  prescribing  or limiting the period for which loans or advances of credit may be made or limiting  the  amount  of  any  class  of  loans,  advances of credit or purchases  which may be made shall be deemed to apply to loans, advances of credit or purchases made or to loans acquired by purchase pursuant to this item.  (d) A borrower may prepay in  full  any  loan  made  pursuant  to  the provisions  of  subparagraph  (a), (b) or (c) of this paragraph or, with the consent of the savings bank, may refinance the loan. In the event of such prepayment or refinancing, the savings bank shall refund:  (1)  the unearned  portion  of  the  interest to the borrower the amount of which portion shall be determined according to a generally accepted  actuarial method;  provided,  however,  that  if the amount of interest previously deducted (i) was less than ten dollars, no refund shall be required;  or (ii)  exceeded  the  sum  of ten dollars and the earned interest is less than that amount, the savings bank may retain such an additional  amount as  will  bring the earned interest to the sum of ten dollars and refund the remainder, and provided further, that unless the loan is refinanced, no refund shall be required if it amounts to less than one  dollar;  and (2)  if  a charge was made to the borrower for premiums for insuring the borrower under  a  credit  unemployment  insurance  policy,  group  life insurance  policy,  or  under  a  group  health, group accident or group health and accident insurance policy, the excess of the  charge  to  the borrower therefor over the premiums paid or payable by the savings bank, if  such  premiums were paid or payable by the savings bank periodically or the refund for such insurance premium received or receivable  by  the savings  bank,  if such premium was paid or payable in a lump sum by the savings bank, provided that no such  refund  shall  be  required  if  it amounts  to  less  than one dollar. In the event (i) the maturity of the loan is accelerated due to the default of the borrower or otherwise  and judgment  is  obtained,  or  (ii) repayment is made pursuant to any such insurance policy, the borrower or his legal representative, as the  case may  be,  shall  be  entitled to the same refund as if the loan had been prepaid in full on the date of acceleration or repayment.  (5) Promissory notes from a resident of the state of New York provided that payment of each such note is guaranteed  by  the  New  York  Higher Education  Assistance  Corporation, or promissory notes that are insured or covered by a commitment to insure or are guaranteed or covered  by  a commitment  to guarantee issued by the Federal Education Commissioner in accordance with the provisions of the act of congress  entitled  "Higher Education Act of 1965".   8-a.  Promissory notes representing loans 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 cooperative ownership of real estate within or  without  this state, as provided in this subdivision.   A  savings bank may, subject to such regulations as the superintendent of financial services finds necessary and proper, invest  to  an  amount not  exceeding  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 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 within or without this state, for  the  purpose  of financing a purchase of or refinancing an existing ownership interest in  such  a  corporation or partnership, provided (a) such investment is secured within ninety days from the making of the loan by an  assignment or  transfer  of the stock or other evidence of an ownership interest of the borrower and a proprietary lease; and (b) repayment of principal and interest shall be  effected  within  the  same  number  of  years  as  a conventional mortgage loan previously described in this subdivision. 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 of this chapter by no more than one and one-half per centum per annum.   8-b. Personal loan departments. Subject to  such  regulations  as  the superintendent  of  financial services may prescribe, a savings bank may operate a personal loan department under the same terms  and  conditions as  are  provided  under the provisions of subdivisions four and five of section one hundred eight of this chapter.   The superintendent of financial services shall  be  empowered  (a)  to prescribe  the  terms and conditions governing the conduct and operation of personal loan departments including, the maximum amount, expressed as a percentage of assets or otherwise, which a  savings  bank  may  invest pursuant  to  the  provisions  of  this subdivision or in the aggregate, taking into account such other provisions of law authorizing investments by savings banks, and (b) to prescribe such terms and conditions as  may be appropriate to effect or facilitate the transfer of accounts operated pursuant  to  the provisions of any other section of this chapter to the personal loan departments authorized to be operated hereunder.   In pursuance of the authority granted hereunder savings banks shall be empowered to issue credit cards, extend credit in connection  therewith, and otherwise engage in or participate in credit card operations, and to act  as financing agency as defined in subdivision nine of section three hundred one and subdivision eighteen of section four hundred one of  the personal property law.   8-c.  Subject  to  such regulations as the superintendent of financial services  may  prescribe,  promissory  notes  and  other  evidences   of indebtedness  representing  commercial,  corporate  or  business  loans, provided that the aggregate amount of all such loans outstanding at  any time  to any borrower shall, if unsecured, not exceed fifteen per centum of the net worth of such savings bank or, if  secured,  subject  to  the same limitations as to amount in relation to net worth as are applicable to  banks and trust companies pursuant to article three of this chapter. For purposes of this section the term "net worth" shall have the meaning ascribed to it by subdivision four of section two hundred forty-four  of this chapter.   8-d.  Subject  to  such regulations as the superintendent of financial services may prescribe and subject to the limits of subdivision  eight-c of  this section and any other applicable limits or requirements imposed by  law  or  regulation,  promissory  notes  and   other   evidence   of indebtedness  that  represent linked loans, each authorized and approved pursuant to article fifteen of the state finance  law  and  each  in  an amount  equal  to  a  corresponding linked deposit made pursuant to such article.   8-e. Subject to such regulations as the  superintendent  of  financial services  may prescribe and subject to the limits of subdivision eight-c of this section and any other applicable limits or requirements  imposed by   law   or   regulation,  promissory  notes  and  other  evidence  of indebtedness that represent linked loans, each authorized  and  approved pursuant  to  article  sixteen  of  the state finance law and each in an  amount equal to a corresponding linked deposit  made  pursuant  to  such article.   9. Real estate as provided in this subdivision.  (a) A savings bank may purchase or acquire the following real estate:  (1)  A plot whereon there is or may be erected a building suitable for the convenient transaction of the business of  the  savings  bank,  from portions of which not required for its own use a revenue may be derived, and  a  plot whereon parking accommodations are, or are to be, provided, with or without charge, primarily for  its  customers  or  employees  or both.  The  aggregate of all investments of a savings bank in such plots and buildings shall not exceed five per centum of  the  assets  of  such savings bank, except with the approval of the superintendent.  (2)  Such  as  shall  be  conveyed  to  it  in  satisfaction  of debts previously contracted in the course of its business.  (3) Such as it shall purchase at sales  under  judgments,  decrees  or mortgages held by it.  (4)  In  lieu of instituting an action to foreclose a mortgage lien, a savings bank may purchase a deed to the underlying real property.  (5) A whole or part interest in a "project" as defined in the New York state urban development corporation act, pursuant  to  sections  six  or eight  of  such act. An investment by a savings bank in a single project shall not exceed one per centum of the assets or ten per centum  of  the net  worth of such savings bank, whichever is less, and the aggregate of all investments of a savings bank in such projects  and  investments  in securities   pursuant   to   subparagraph  one-a  of  paragraph  (a)  of subdivision twenty-one of this section shall not exceed five per  centum of the assets or fifty per centum of the net worth of such savings bank, whichever  is less. For the purposes of this subdivision, "net worth" of a savings bank shall mean the excess of its assets at book  value,  less allocated reserves, over known liabilities.   * (6) Improved or unimproved real property (either by purchase, lease, exchange  or  otherwise),  or any interest therein, to erect, construct, rebuild, enlarge, alter, improve, maintain, manage and operate buildings or other improvements  of  any  description  thereon,  to  sell,  lease, sublet,  mortgage,  exchange  or  otherwise dispose of same and execute, perform  and  carry  out   contracts   for   construction,   alteration, improvement, maintenance, management or repair thereof, to make loans in connection  therewith,  as owner, co-owner or otherwise, subject to such specific or general approvals and limitations as shall  be  required  by regulations  promulgated  from  time  to  time  by the superintendent of financial services pursuant to  this  subparagraph;  provided,  however, that  no  activity specified herein, shall be undertaken pursuant to the authority contained in this subparagraph  until  the  superintendent  of financial   services   shall  have  issued  regulations  specifying  the limitations and requirements which shall be imposed in  connection  with the  investments  and  activities  referred to herein including, without limitation, the consideration of such savings bank's record  in  meeting the  credit  needs  of  local  communities within the meaning of section twenty-eight-b of this chapter.   * NB Expired June 30, 1988  (b) Every parcel of real estate acquired by a savings  bank  shall  be conveyed  to  it  directly  by name, or, subject to such regulations and restrictions as the superintendent of financial  services  finds  to  be necessary  and  proper,  may  be  taken in the name of a duly authorized nominee, and the conveyance shall be immediately recorded or  registered in  the  office  of  the proper recording officer of the county in which such real estate is located.    10. Bonds and other obligations of Savings and Loan Bank of the  State of New York.   11.  Farm  loan bonds, including consolidated bonds, issued by federal land banks,  federal  intermediate  credit  bank  debentures,  including consolidated debentures, issued by federal intermediate credit banks and bonds,  debentures  or  other  obligations  of  banks  for cooperatives, including consolidated  debentures  issued  by  banks  for  cooperatives organized under the laws of the United States.   12.  Bankers' acceptances and bills of exchange which are eligible for purchase in the open market by federal reserve banks and which have been accepted by a bank, a trust company, a private banker or  an  investment company,  as  those  terms  are defined in this chapter, or by a banking corporation which is organized under the laws of the United States or of any state thereof and which is a member of the federal reserve system.   Aggregate liability  of  any  bank,  trust  company,  private  banker, investment  company  or  banking  corporation  to  any  savings bank for acceptances shall not exceed twenty-five per centum of the  capital  and surplus  of such bank, trust company, private banker, investment company or banking corporation, or five  per  centum  of  the  aggregate  amount credited  to  the  depositors  of such savings bank, whichever amount is less.   12-a. * (a) Obligations of any corporation organized under the laws of any state of the United States maturing within two hundred seventy days, provided  that  such  obligations  receive  the  highest  rating  of  an independent rating service designated by the superintendent of financial services.   * NB  Effective  until notification of the superintendent of financial services   * (a) Obligations of any corporation organized under the laws  of  any state  of  the  United  States maturing within two hundred seventy days, provided that such obligations meet the  standards  of  creditworthiness established by regulation by the superintendent.   * NB  Effective  upon  notification of the superintendent of financial services  (b) Subject to such regulations as  the  superintendent  of  financial services  may  impose,  certificates of deposit issued by or accounts of (1) a bank, trust company or national bank having a principal, branch or trust office in this state, (2) a banking  corporation  organized  under the laws of the United States or of any state thereof whose deposits are insured  by  an  agency of the United States, or (3) an agency or branch located within the United States of a foreign banking  corporation  with total worldwide bank assets in excess of one billion dollars.   12-b.  Advances  of federal funds to designated depositaries, provided such advances are made on the condition that they be repaid on the  next business  day  following  the  day  on  which  the  advance is made. For purposes of this subdivision and subdivision twelve of this section, the term "federal funds" shall mean  funds  which  a  savings  bank  has  on deposit at a depositary which are exchangeable for funds on deposit at a federal  reserve bank; and the term "business day" shall mean any day on which the savings bank, the depositary  and  the  federal  reserve  bank where the funds are on deposit are all open for general business.   13.  Bonds  of any corporation which at the time of such investment is incorporated under the laws of the United States or any  state  thereof, or  the  District of Columbia, and transacting the business of supplying electrical energy or artificial  gas,  or  natural  gas  purchased  from another  corporation  and  supplied  in  substitution for, or in mixture with, artificial gas, for light, heat,  power  and  other  purposes,  or transacting  any  or  all of such business, provided at least eighty per  centum of the gross operating  revenues  of  any  such  corporation  are derived from such business, subject to the following conditions:  (a) Such corporation shall have all franchises necessary to operate in territory  in which at least seventy-five per centum of its gross income is earned. Such  corporation  shall  file  with  the  superintendent  of financial services and make public in each year a statement and a report giving  the  income  account  covering  the  previous  fiscal year and a balance sheet showing in reasonable detail the assets and liabilities at the end of the year.  (b) Either the outstanding  full  paid  capital  stock  together  with premiums  thereon  and the surplus of such corporation shall be not less than two-thirds of the total debt secured by mortgage lien on  any  part or  all  of  its  property,  or  the outstanding full paid capital stock together with premiums  thereon  and  surplus  and  unsecured  debt  not maturing within five years and not in excess of fifty per centum of such capital  stock,  premiums  and  surplus  shall  be  equal  to  at  least three-fourths of the total debt secured by mortgage lien on any part  or all  of  its  property, provided, however, that in case of a corporation having no-par value shares, the amount  of  capital  which  such  shares represent shall be the capital as shown by the books of the corporation.  (c)  Such corporation shall have been in existence for a period of not less than eight fiscal years and at no time within such period of  eight fiscal  years  next  preceding  the  date  of such investment shall said corporation have failed  to  pay  promptly  and  regularly  the  matured principal  and  interest  of  all  its  indebtedness  direct, assumed or guaranteed, but the period of life of the corporation, together with the period of life of any predecessor corporation or corporations from which a major portion of its property was acquired by consolidation, merger or purchase shall  be  considered  together  in  determining  the  required period.  (d)  For  a period of five fiscal years next preceding such investment the net earnings of such corporation shall have averaged  per  year  not less  than  two  times  the average annual interest charges on its total funded debt applicable to that period, and  for  the  last  fiscal  year preceding  such  investment  such  net earnings shall have been not less than twice the interest charges for a full year on its total funded debt outstanding at the time of such investment,  and  for  such  period  the gross operating revenues of any such corporation shall have averaged per year not less than two million dollars.  (e)   In  determining  the  qualifications  of  any  bond  under  this subdivision where a corporation shall have acquired its property or  any substantial  part  thereof  within  five years immediately preceding the date of such investment by consolidation or merger, or by  the  purchase of all or a substantial portion of the property of any other corporation or  corporations,  the  gross  operating  revenues,  net  earnings,  and interest charges of the several predecessor or constituent  corporations shall  be  consolidated  and  adjusted  so  as  to ascertain whether the requirements of paragraph (d) of this  subdivision  have  been  complied with.  (f)  Such  bonds  shall  be  (1) bonds secured by a first or refunding mortgage  on  property  owned  and  operated,  or  controlled,  by   the corporation  issuing  or  assuming  them,  or  underlying mortgage bonds secured by a lien on property owned and operated, or controlled, by  the corporation  issuing  or  assuming  them,  provided that such underlying mortgage bonds are to be refunded by a  junior  mortgage  providing  for their  retirement, that the bonds under such junior mortgage comply with the requirements of this subdivision, and that such underlying  mortgage is  either  a  closed  mortgage  or remains open solely for the issue of  additional bonds which are to be pledged under such junior mortgage  and provided  that  the  aggregate principal amount of bonds secured by such first or refunding  mortgage  plus  the  principal  amount  of  all  the underlying  outstanding  bonds  shall  not  exceed two-thirds of the net value of the physical property owned or controlled as shown by the books of the owning corporation, and subject to the lien of such  mortgage  or mortgages securing the total mortgage debt and provided further, that if a  refunding  mortgage,  it must provide for the retirement on or before the date of their maturity of all bonds secured by prior  liens  on  the property,  or  (2)  bonds, other than mortgage bonds, provided, that (a) for a period of five fiscal years next preceding such investment the net earnings of such corporation shall have averaged per year not less  than two  and one-half times the average annual interest charges on its total funded debt applicable to that period, and  for  the  last  fiscal  year preceding  such  investment  such  net earnings shall have been not less than two and one-half times the interest charges for a full year on  its total  funded  debt  outstanding at the time of such investment, and (b) the capital stock together with premiums thereon  and  surplus  of  such corporation  shall  not be less than two-thirds of its total funded debt outstanding, and (c) such bonds,  if  issued  for  a  term  longer  than fifteen  years,  shall  have been issued under an indenture containing a covenant providing for the establishment  of  a  sinking  fund  for  the benefit  of such bonds whereby such bonds shall be redeemed at an annual rate of not less than two per centum of the largest principal amount  of their  issue  at any one time outstanding, and (d) the mortgage bonds of such corporation, if any, shall qualify under  the  provisions  of  this subdivision.  (g) (1) The gross operating revenues and expenses of a corporation for the  purposes  of  this  subdivision  shall  be, respectively, the total amount  earned  from  the  operation  of,  and  the  total  expense   of maintaining  and  operating,  all property owned and operated, or leased and operated, by such corporation, as determined by a system of accounts adopted by a federal, state  or  municipal  public  service  commission, public  utility  commission  or other similar regulatory body. The gross operating  revenues  and  expenses,  as  defined  above,  of  subsidiary companies  may  be  included,  provided  all  the  mortgage  bonds and a controlling interest in stock or stocks of such subsidiary companies are pledged as part security for the mortgage debt of the principal company. The net value of any property shall be its value as shown by  the  books of  the  corporation  less the amounts of any reserves for depreciation, retirement or amortization thereof.  Property  shall  be  deemed  to  be controlled  by a corporation if such corporation shall own not less than ninety per cent of the capital stock  of  the  corporation  owning  such property.  (2)  The  net  earnings  of  any  corporation for the purposes of this subdivision shall be the balance obtained by deducting  from  its  gross operating  revenues, its operating and maintenance expenses, taxes other than federal and state income taxes, rentals and provision for  renewals and retirements of the physical assets of the corporation, and by adding to said balance its income from securities and miscellaneous sources but not,  however,  to  exceed  fifteen per centum of said balance. The term funded debt  shall  be  construed  to  mean  all  interest-bearing  debt maturing more than one year from date of issue.  (3)  In  the  computation  for the purposes of this subdivision of the ratio of mortgage debt to net mortgaged property value  there  shall  be excluded from the amount of outstanding mortgage bonds the amount of any cash  deposited  with  the  trustee  of  the  mortgage and held in trust pursuant to the terms of such mortgage.  (h) Not more than twenty-five per centum of the assets of any  savings bank  shall  be  loaned on or invested in bonds of such electric and gas corporations, and not more than two per centum  of  the  assets  of  any savings bank shall be invested in the bonds of any one such corporation, as authorized by this subdivision.  (i)  As  used  in this subdivision, the term "bond" includes a note or debenture.   14. Bonds of any corporation which at the time of such  investment  is incorporated  under  the laws of the United States or any state thereof, or the District of Columbia, and authorized to engage, and engaging,  in the  business  of  furnishing  telephone  service  in the United States, subject to the following conditions:  (a) Such corporation shall have been in existence for a period of  not less  than eight fiscal years and at no time within such period of eight fiscal years next preceding the  date  of  such  investment  shall  said corporation  have  failed  to  pay  promptly  and  regularly the matured principal and interest of  all  its  indebtedness  direct,  assumed,  or guaranteed, but the period of life of the corporation, together with the period of life of any predecessor corporation or corporations from which a major portion of its property was acquired by consolidation, merger or purchase,  shall  be  considered  together  in  determining the required period; and such corporation  shall  file  with  the  superintendent  of financial services and make public in each year a statement and a report giving  the  income  account  covering  the  previous  fiscal year and a balance sheet showing in reasonable detail the assets and liabilities at the end of the year.  (b) The outstanding full paid capital  stock  together  with  premiums thereon  and  the  surplus of such corporation shall at the time of such investment be equal to at least  two-thirds  of  the  aggregate  of  its funded debt and the total funded debt, exclusive of any such funded debt held  by  such corporation, of every telephone corporation a majority of the capital stock of which is owned by such corporation.  (c) For a period of five fiscal years next preceding  such  investment the  net  earnings  of such corporation shall have averaged per year not less than two and one-half times the average annual interest charges  on its  total  debt applicable to that period, and for the last fiscal year preceding such investment such net earnings shall  have  been  not  less than twice the interest charges for a full year on its total funded debt outstanding  at  the  time  of  such investment, and for such period the gross operating revenues of any such corporation shall have averaged per year not less than five million dollars.  (d)  In  determining  the  qualifications  of  any  bond  under   this subdivision  where a corporation shall have acquired its property or any substantial part thereof within five  years  immediately  preceding  the date  of  such investment by consolidation or merger, or by the purchase of all or a substantial portion of the property of any other corporation or corporations, the gross operating revenues, net earnings and interest charges of the several predecessor or constituent corporations shall  be consolidated and adjusted so as to ascertain whether the requirements of paragraph (c) of this subdivision have been complied with.  (e) The gross operating revenues and expenses of a corporation for the purposes  of  this  subdivision shall be, respectively, the total amount earned from the operation of, and the total expense of  maintaining  and operating,  all  property owned and operated, or leased and operated, by such corporation, as determined by a system of accounts adopted  by  the federal  communications  commission,  a  public  service  commission, or public utility commission, or other similar federal or state  regulatory body.  (f)  The  net  earnings  of  any  corporation for the purposes of this subdivision shall be the balance obtained by deducting  from  its  gross operating  revenues,  its  operating and maintenance expenses, provision for depreciation of the physical assets of the corporation, taxes  other than  federal and state income taxes, rentals and miscellaneous charges, and  by  adding  to  said  balance  its  income  from   securities   and miscellaneous  sources but not, however, to exceed fifteen per centum of said balance. The term funded  debt  shall  be  construed  to  mean  all interest-bearing debt maturing more than one year from date of issue.   Whenever  a  corporation  shall own a majority of the capital stock of one or more other telephone corporations, the consolidated statements of all such telephone corporations shall be used in determining the  amount of  net  earnings  available  for  interest  charges,  and the amount of interest charges, of such corporation.  (g) Not more than twenty-five per centum of the assets of any  savings bank  shall  be  loaned  on  or  invested  in  bonds  of  such telephone corporations, and not more than three per centum of the  assets  of  any savings  bank  shall  be  invested  in  the  bonds  of any one telephone corporation, as authorized by this subdivision.  (h) As used in this subdivision, the term "bond" includes  a  note  or debenture.   15. Bonds, debentures, consolidated debentures or other obligations of any  federal  home loan bank or banks, or of Tennessee Valley Authority, and obligations of, or instruments issued by or fully guaranteed  as  to principal and interest by, the Federal National Mortgage Association, or Federal  Home  Loan  Mortgage Corporation, and notes, bonds, debentures, mortgages and other evidences  of  indebtedness  of  the  United  States Postal Service.   16. Stock of a federal reserve bank in the amount necessary to qualify for membership in such bank.   17.  Stock  of  a  federal  home  loan bank in the amount necessary to qualify for membership in such bank and in such  additional  amounts  as are approved by the superintendent of financial services.   19.  Securities of corporations which securities are made eligible for investment by savings banks by the superintendent of financial services.   20. Subject to such regulations and restrictions as the superintendent of financial services finds to be necessary and proper, (a) (1) any bond and mortgage insured by the federal housing commissioner, or for which a commitment to insure has been made by the federal housing  commissioner, or  (2)  any  bond and mortgage guaranteed pursuant to the provisions of the act of congress  entitled  the  "Servicemen's  Readjustment  Act  of 1944",  or  (3)  provided  the  mortgage  is  a first lien, any bond and mortgage at least twenty per centum of which is guaranteed  pursuant  to the provisions of such act, or (4) a participation in any loan or a part interest  in  any  bond  and  mortgage, secured by real property, to the extent that the small business administration is committed  to  pay  the principal  and  interest  thereof; (b) any whole or part interest in any such bond and mortgage or in any whole or part interest in any such bond and mortgage, which bond and mortgage is held for  the  benefit  of  the holder  or  holders of a whole interest or part interests therein by any entity  or  entities  with  which  a  savings  bank  is  authorized   to participate  pursuant to this paragraph, but no such investment shall be made in any part interest which is junior or subordinate  to  any  other part  interest  therein;  (c)  any  bond secured by any such mortgage or mortgages, which mortgage is, or  which  mortgages  are,  held  for  the benefit  of  the holder or holders of the bond or bonds secured thereby, by a savings bank or  bank  or  trust  company;  and  (d)  any  property improvement  note  issued  pursuant  to  the  provisions of the national  housing act, provided the savings bank investing in such note shall have qualified for  and  received  in  connection  therewith  a  contract  of insurance  from  the  federal  housing  commissioner. A savings bank may receive  and  hold  such debentures as are issued in payment of any such insurance. No law of this state prescribing  or  limiting  the  interest rate  upon  loans  or  advances  of  credit or prescribing a penalty for violation thereof or prescribing the nature, amount or form of  security or requiring security upon which loans or advances of credit may be made or  prescribing  or  limiting  the period for which loans or advances of credit may be made or  limiting  the  amount  of  any  class  of  loans, advances  of  credit  or  purchases which may be made shall be deemed to apply to loans, advances  of  credit  or  purchases  made  or  to  loans acquired by purchase pursuant to this subdivision.   The  provisions  of  subdivision  six of this section, except those of paragraph (f) thereof, shall not apply to investments made  pursuant  to this  subdivision  by  any  savings bank. Paragraphs (a), (b) and (c) of section one of  chapter  eight  hundred  ninety-seven  of  the  laws  of nineteen  hundred  thirty-four  as  amended  shall  not apply to savings banks. The term "bond", as used in this subdivision,  includes  a  note. The  authority  provided  in  this subdivision to invest in any bond and mortgage guaranteed pursuant to the provisions of the  act  of  congress entitled  the  "Servicemen's  Readjustment  Act  of 1944", shall include authority to acquire title to real property in connection with investing in an installment contract for the sale of real property, so guaranteed, where the purchaser under such contract is in possession and control  of the  property,  and  title  is  acquired  by  the savings bank solely as security for the obligations of the purchaser.   21.  (a)  Subject  to  such  regulations  and  restrictions   as   the superintendent of financial services finds to be necessary and proper:  (1)  Stock  and  obligations, not otherwise eligible for investment by the savings bank, of any corporation organized under  any  law  of  this state  for  the purpose of acquiring, constructing, owning, maintaining, operating, selling or conveying  a  housing  project  or  projects  (not including  hotels but including accommodations for retail stores, shops, offices  and  other  community  services  reasonably  incident  to  such projects)  located  within  this  state, provided that all the stock and obligations of any such corporation have been or are  originally  issued to one or more savings banks of this state.  (1-a). Stock and obligations, not otherwise eligible for investment by the  savings  bank,  of  any  "subsidiary"  of  the New York state urban development  corporation,  as  defined  in  the  New  York  state  urban development corporation act, provided that all the stock and obligations of any such subsidiary is or is to be owned by one or more savings banks of  this state, or by such other owners of such stock and obligations as may be approved by the superintendent of financial services.  (2) Corporate interest-bearing securities, other than those issued  by any  corporation  organized  under  the laws of a foreign country except Canada whose securities  are  not  registered  with  the  United  States Securities  and  Exchange  Commission or listed on a national securities exchange in accordance with the Securities  Exchange  Act  of  1934,  as amended,  and  interest-bearing  securities  of  any state in the United States  or  of  any  public  authority,  commission  or  instrumentality organized  under  the  laws  of any state of the United States or of any political subdivision of any such  state,  not  otherwise  eligible  for investment  by  the  savings bank, which are not in default as to either principal or interest when acquired, provided that no  investment  shall be  made  pursuant  to  this  subparagraph  (2) in the securities of any corporation if the total direct liabilities of such corporation  to  the  savings  bank  exceed,  or by the making of such investment will exceed, ten per centum of the total direct liabilities of  such  corporation  or one  per  centum  of the assets of the savings bank, whichever amount is less.  The  term  "securities",  as used in this subparagraph (2), means such bonds, notes, debentures and other obligations for payment of money as are  negotiable,  or  conditional  sale  agreements,  assignments  of conditional  sale agreements and participations therein which are issued or made by railroads for the purchase of rolling stock, and which have a maturity of not less than five years from the date of issue  or  making, or,  if  issued  or  made  in  a series or repayable in installments, an average maturity of not less than five years from the date of  issue  or making.  (b)  No  investment  shall  be  made  by  a  savings  bank pursuant to subparagraphs one and two of paragraph (a) of this  subdivision  if  the total  amount  invested  by it pursuant to such paragraph, together with the total amount invested by it pursuant to any provisions  of  any  law other than the banking law, exceeds, or by the making of such investment will  exceed,  an  amount  equal  to ten per centum of the assets of the savings bank. An investment by a savings bank in a single subsidiary  of the   New   York   state   urban  development  corporation  pursuant  to subparagraph one-a of paragraph a of this subdivision shall  not  exceed one  per centum of the assets or ten per centum of the net worth of such savings bank, whichever is less, and the aggregate of all investments of a savings bank  in  such  subsidiaries  and  investments  in  securities pursuant  to  subparagraph  five of paragraph (a) of subdivision nine of this section shall not exceed five per centum of the assets or fifty per centum of the net worth of such savings bank, whichever is less. For the purposes of this paragraph, "net worth" of a savings bank shall mean the excess of its assets at book value, less allocated reserves, over  known liabilities.  (d) For the purposes of sections two hundred seventy-four, two hundred eighty-five  and  four  hundred thirty-five of this chapter, investments authorized by this subdivision shall not be deemed investments in  which savings  banks may legally invest, except that investments authorized by subparagraph one-a of paragraph (a) of this subdivision shall be  deemed investments  in  which savings banks may legally invest for the purposes of section three hundred seventy-nine of this chapter.  (e) For the purposes of section  three  hundred  fifty-nine-f  of  the general  business  law,  investments  authorized by sub-paragraph (2) of paragraph (a) of this subdivision shall not  be  deemed  investments  in which savings banks may legally invest.   * 21-a.  Interest-bearing  obligations  payable in United States funds which at the time of investment are rated in one of  the  three  highest rating  grades  by each rating service, designated by the superintendent of financial services, which has rated such obligations,  provided  that the  aggregate  amount  invested in the obligations of any single issuer pursuant to  this  subdivision  and  pursuant  to  subparagraph  (2)  of paragraph  (a)  of subdivision twenty-one of this section may not exceed one per centum of the assets of the savings bank, and  provided  further that  the  aggregate amount invested in the interest-bearing obligations of any single issuer pursuant to this subdivision and  pursuant  to  any provision  of this section specifically authorizing such investment, may not exceed the percentage limitations contained in any such provision.   * NB Effective until notification of the superintendent  of  financial services   * 21-a.  Interest-bearing  obligations  payable in United States funds which at the time of investment meet the standards  of  creditworthiness established  by  regulation  by  the  superintendent,  provided that the  aggregate amount invested  in  the  obligations  of  any  single  issuer pursuant  to  this  subdivision  and  pursuant  to  subparagraph  (2) of paragraph (a) of subdivision twenty-one of this section may  not  exceed one  per  centum of the assets of the savings bank, and provided further that the aggregate amount invested in the  interest-bearing  obligations of  any  single  issuer pursuant to this subdivision and pursuant to any provision of this section specifically authorizing such investment,  may not exceed the percentage limitations contained in any such provision.   * NB  Effective  upon  notification of the superintendent of financial services   22. Certificates of investment in savings banks life insurance fund.   23. Certificates representing advances to the surplus fund of its life insurance department.   24. Obligations issued or guaranteed by  the  international  bank  for reconstruction and development.   24-a.   Obligations   issued   or  guaranteed  by  the  inter-American development bank.   24-b. Obligations issued or guaranteed by the Asian development bank.   24-c. Obligations issued or  guaranteed  by  the  African  Development Bank.   24-d. Obligations guaranteed by the youth facilities project guarantee fund and participations therein.   24-e.  Obligations  issued  or guaranteed by the International Finance Corporation.   25. Obligations of the Dominion of Canada, or of any province or  city of  the  Dominion  of  Canada,  as  provided  in  this  subdivision. (a) Obligations of the Dominion of Canada, or those for which the  faith  of the  Dominion  of  Canada  is  pledged to provide for the payment of the interest and principal, provided that the principal and interest of such obligations are payable in United States funds.  (b) Obligations of any province of the Dominion of Canada or those for which the faith of any such province  is  pledged  to  provide  for  the payment of the interest and principal upon which there is no default and upon  which  there  has  been  no  default  for  more  than ninety days; provided, that within ten years  immediately  preceding  the  investment such  province  has not been in default for more than ninety days in the payment of any part of principal or interest of any debt duly authorized by the legislature of such province; and provided that the principal and interest of such obligations are payable in  United  States  funds;  and provided  further,  that  if  at  any  time the net debt, as hereinafter defined, of any such province shall exceed twenty-five per centum of the valuation of  real  property  in  such  province  for  the  purposes  of taxation,  the obligations of such province shall, thereafter, and until such net debt  shall  be  reduced  to  twenty-five  per  centum  of  the valuation  of  real  property  in  such  province  for  the  purposes of taxation, cease to be an authorized investment for the moneys of savings banks. The term "net debt" as used in  this  paragraph  shall  mean  the aggregate  of  all  direct  obligations  funded and unfunded of any such province and all other obligations excluding any on  which  interest  is being  paid  out  of  other than the ordinary revenues of such province; less sinking funds applicable to such obligations.  (c) Obligations of any city in Canada, provided that said city  has  a population,  according  to  the  last  federal  census  of  Canada  next preceding said investment, of not less than one hundred  fifty  thousand inhabitants,  and  has  not,  within  twenty-five  years  preceding said investment, defaulted for more than one hundred and twenty days  in  the payment  of  any part either of principal or interest of any bond, note, or other evidence of indebtedness, provided  that  the  indebtedness  of  such  city  does  not exceed the limitations imposed by paragraph (c) of subdivision five of this section if  applicable;  and  provided  further that  the  principal  and  interest  of  such obligations are payable in United  States  funds.  No  obligations  of  any  such  city shall be an authorized investment for savings banks  unless  such  city  shall  have power to levy taxes on the taxable real property therein or to require a levy  thereon  by  municipalities within its area in either case for the payment of such obligation without limitation of  rate  or  amount.  The term  "city"  as  used  in  this  paragraph  and  in  paragraph  (d)  of subdivision five of this  section  shall  include  The  Municipality  of Metropolitan  Toronto  and  any other similar corporation in Canada, and the power to require a levy by municipalities within its area  shall  be deemed  to  be  a  power  to  levy taxes within the meaning of such last mentioned paragraph.  (d) Not more than ten per centum of the assets of  any  savings  banks shall  be  invested  in the obligations defined in this subdivision, and not more than two per centum of such assets shall  be  invested  in  the obligations of any province, nor more than two per centum of such assets in the obligations of any city, as authorized by this subdivision.   26. Subject to such regulations and restrictions as the superintendent of financial services finds to be necessary and proper:  (a)  Preferred stock of any corporation, created or existing under the laws of the United  States  or  of  any  state,  district  or  territory thereof, provided (1) the net earnings of such corporation available for its  fixed  charges for a period of five fiscal years next preceding the date of investment by such savings bank shall have averaged per year not less than one and one-half times the sum of the following,  computed  as of  the  date  of such investment: its annual fixed charges, if any, its annual maximum contingent interest, if any,  and  its  annual  preferred dividend  requirements;  and  (2) during either of the last two years of such period such net earnings shall have been  not  less  than  one  and one-half  times  the  sum  of its fixed charges, contingent interest and preferred dividend requirements for such year. As used in this paragraph (a), the  term  "dividend  requirements"  shall  be  construed  to  mean cumulative or non-cumulative dividends whether or not paid.  (b)  Guaranteed stock of any corporation created or existing under the laws of the United  States  or  of  any  state,  district  or  territory thereof,  provided  (1) the net earnings of the guaranteeing corporation available for its fixed charges for a period of five fiscal  years  next preceding  the  date  of  investment  by  such  savings  bank shall have averaged per year not less than one and one-half times its annual  fixed charges  computed  as  of  the  time  of such investment; and (2) during either of the last two years of such period net earnings shall have been not less than one and one-half times its fixed charges for such year.  (c) Common stock of any corporation created or existing under the laws of the United States or of any state,  district  or  territory  thereof, provided  such  common  stock  is  registered  on  a national securities exchange, as provided in an  act  of  congress  of  the  United  States, entitled  the  "Securities  Exchange  Act of 1934", approved June sixth, nineteen hundred thirty-four, as amended.  (e) Stock or shares of any investment  company,  as  defined  by,  and which  is  registered  under,  an  act of congress of the United States, entitled  the  "Investment  Company  Act  of  1940",   approved   August twenty-second, nineteen hundred forty, as amended, provided such company may  invest  only in such investments as are eligible for savings banks, including, without limitation, investments  made  eligible  for  savings banks  by  paragraphs (a), (b) and (c) of this subdivision but excluding investments made eligible for savings banks by subdivisions five-a, six,  eight, nine, sixteen, seventeen, eighteen, twenty-two  and  twenty-three of  this  section,  provided that (i) investment restrictions based upon the assets, surplus fund, net worth or other features of  the  condition or  operation  of  the  savings  bank  shall  not  be applicable to such investment company, (ii) the amount of stock of  any  corporation  which may  be held by such investment company shall not exceed five per centum of the number of shares of stock of such corporation outstanding at  the time of investment by such investment company, and (iii) at the time the investment  is  made,  the  percentage of assets that a savings bank may invest in the stock or shares of the investment company shall not exceed the limitation, if any, applicable to a savings bank's investment in any individual security included  in  the  investment  company's  portfolio. Nothing  contained  in  the  provisions of this chapter shall prevent an officer, director, clerk or other employee of any bank or trust  company from  being  an  officer,  director  or  employee of any such investment company.  (ee) Stock of any "bank service corporation", as such term is  defined by  an  act of congress of the United States, entitled the "Bank Service Corporation  Act",  approved  October  twenty-third,  nineteen   hundred sixty-two,  as  such act may be amended from time to time, provided such investment shall have been authorized by the superintendent.  (eee) Stock or shares of any investment company, as  defined  by,  and which  is  registered  under,  an  act of Congress of the United States, entitled  the  "Investment  Company  Act  of  1940",   approved   August twenty-second,  nineteen  hundred  forty, as amended, provided: (1) such company is managed, advised and has its assets held at a bank  or  trust company  which is supervised and examined by the superintendent; (2) all of the stock and shares, other than stock or shares required by  law  to qualify  directors, of such investment company are or are to be owned by savings banks, savings and loan associations and pension trusts,  funds, plans  or  agreements  participated  in  by one or more savings banks or savings and loan associations to provide retirement benefits, for any or all of its  or  their  active  officers  and  employees;  and  (3)  such investment  company  may invest only in investments as are made eligible for savings banks by subdivisions one, two, three, four and  fifteen  of this  section.  For  the  purpose  of  investments  authorized  by  this paragraph, no investment shall be made by a savings bank  if  the  total amount  invested  by it exceeds, or by the making of the investment will exceed, an amount equal to thirty-five percent of its assets.  (f) For the purposes of this subdivision, (1) the term  "net  earnings available  for  fixed  charges"  shall  mean  net income after deducting operating and maintenance expenses, taxes other than federal  and  state income  taxes,  depreciation  and depletion, but excluding extraordinary non-recurring items of  income  or  expense  appearing  in  the  regular financial   statements   of   the   issuing,  assuming  or  guaranteeing corporation; provided, however, that in the case  of  preferred  stocks, federal and state income taxes shall also be deducted in determining net earnings available for fixed charges; (2) the term "fixed charges" shall include  interest  on  funded  and  unfunded  debt, amortization of debt discount and rentals for leased properties;  (3)  if  net  earnings  are determined  in  reliance upon consolidated earnings statements of parent and subsidiary corporations, such net earnings shall be determined after provision for income taxes of subsidiaries and  after  proper  allowance for  minority stock interest, if any, and the required coverage of fixed charges shall be  computed  on  a  basis  including  fixed  charges  and preferred  dividends  of  subsidiaries  other than those payable by such subsidiaries  to  the  parent  corporation  or  to  any  other  of  such subsidiaries;  and  (4)  in  applying  the  earnings  tests  under  this  subdivision to any issuing, assuming, or guaranteeing corporation, where such corporation shall have acquired its  property  or  any  substantial part  thereof  within  the  five years immediately preceding the date of investment  by  consolidation  or merger, or by the purchase of all or a substantial portion of any other corporation or corporations,  or  shall have  acquired  the  assets of any unincorporated business enterprise by purchase or otherwise, the gross  operating  income,  net  earnings  and interest charges of the several predecessor or constitutent corporations or  enterprises  shall  be  consolidated and adjusted so as to ascertain whether or not the applicable requirements of this subdivision have been complied with.  (g) No investment  shall  be  made  by  a  savings  bank  pursuant  to paragraphs  (a),  (b)  or  (c)  of  this subdivision in the stock of any corporation if the total investment by the savings bank in the stock  of such  corporation  exceeds,  or  by  the  making of such investment will exceed (1) in amount, one per centum of the assets of the savings  bank, or  (2)  in  number  of  shares,  two per centum of the total issued and outstanding shares of stock of such corporation.  (h) No investment  shall  be  made  by  a  savings  bank  pursuant  to paragraph  (a),  (b)  or  (c) of this subdivision if the total aggregate amount so invested by it exceeds, or by the making  of  such  investment will  exceed,  an  amount  equal to seven and one half per centum of its assets.  (i) No investment in an investment company shall be made by a  savings bank  pursuant  to paragraph (e) of this subdivision if the total amount invested by it  in  all  such  investment  companies  pursuant  to  such paragraph  exceeds,  or by the making of such investment will exceed, an amount equal to seven and one-half per centum of its assets.  (k) For the purposes of sections two hundred seventy-four, two hundred eighty-five and four hundred thirty-five of  this  chapter,  investments authorized  by this subdivision shall not be deemed investments in which savings banks may legally invest.  (l) For the purposes of any other statutes which restrict  investments to  securities authorized for investment by savings banks, including but not limited to section ninety-two of  the  membership  corporation  law, section  9.27  of  the  mental  hygiene  law  and  sections  fifteen and twenty-five-a of the workmen's compensation law, investments  authorized by  this  subdivision,  shall not be deemed investments in which savings banks may legally invest.   26-a.  (1)  Subject  to  such  regulations  and  restrictions  as  the superintendent  of  financial services finds to be necessary and proper, the stock or obligations of one or more corporations engaged, or  to  be engaged,  primarily  in  originating  and  servicing  mortgages  on real property, provided, however, that if the savings  bank  shall  own  less than  all  of  the  stock  and  obligations of any such corporation, the remainder of the stock, excluding directors' qualifying shares, if  any, and  obligations  of  such  corporation  shall  be  owned by one or more savings banks or savings and loan associations located in this state.  (2) No investment shall be made pursuant to  this  subdivision  unless the  corporation  in  which  such  investment  is  to be made shall have furnished satisfactory assurance to the superintendent that it  will  be subject  to  examination by him to the same extent as if the business of such corporation were being conducted by the savings  bank  on  its  own premises. No investment shall be made by a savings bank pursuant to this subdivision  if  the  total  amount so invested by it exceeds, or by the making of such investment will exceed, an amount equal to one per centum of its assets.  (4) For the purposes of any other provisions  of  law  which  restrict investments  to  those  in which savings banks may legally invest, other than subdivision five of section  three  hundred  seventy-nine  of  this chapter,  investments authorized by this subdivision shall not be deemed investments in which savings banks may legally invest.   27.  For  the  purposes  of  this  section the term "state", when used generally to include every state of the United States, includes also the commonwealth of Puerto Rico, and the term "city", when used generally to include cities in every state of the United States,  includes  also  any municipality of the commonwealth of Puerto Rico.   28.  Bonds, notes or evidences of indebtedness issued by a corporation organized  for  the  purpose  of  undertaking,   constructing,   owning, maintaining,  operating,  selling  or  conveying  a  slum  clearance and redevelopment project, located within this state, pursuant to title  one of  an  act  of  congress  of the United States approved July fifteenth, nineteen hundred forty-nine, entitled the  "Housing  Act  of  1949,"  or organized  pursuant  to  articles  five  and  six of the private housing finance law, and secured by a  first  mortgage  upon  all  of  the  real property  owned  by  the  corporation.  A  mortgage loan made under this subdivision may equal but shall in no event exceed ninety per centum  of the  cost as estimated prior to the completion of the project, or ninety per centum of the total actual final cost, if that shall be greater than the estimated cost, but in no event, shall  such  mortgage  loan  exceed ninety  per  centum  of  the  appraised  value  of the completed project determined pursuant to subdivision six of this  section.  The  estimated cost  and  the  total  actual  final  cost  shall  be  certified  as  to reasonableness   and   correctness   by   an   independent   engineering organization  and shall include the cost to the corporation of the lands owned  by  the  corporation,  the  cost  of  demolition,  the  cost   of constructing    the   improvements,   including   planning,   designing, engineering and landscaping, the cost of relocation of tenants, interest and other carrying charges during  the  period  of  acquisition  and  of construction,   all   other  costs  necessarily  incurred  and  properly attributable to undertaking, constructing and  completing  the  project, and  an  allowance  for working capital which shall not exceed an amount equal to three per centum of the estimated cost or of the  total  actual final  cost  of  the project if that shall be greater than the estimated cost. A mortgage loan made under this subdivision may be participated in by one or more savings banks. An agreement setting forth the  manner  in which  the participating banks shall administer the mortgage and acquire real estate, if any, shall be executed on behalf of  each  bank  by  two persons  appointed  by  the  board of trustees of such bank. Investments made by any savings bank in mortgage loans pursuant to this  subdivision and  pursuant  to paragraph (h) of subdivision six of this section shall not, in the aggregate, exceed ten per centum of the assets or an  amount equal  to  the surplus fund and undivided profits and surplus reserve of such savings bank, whichever is less,  and  shall  be  included  in  the computation  of  permissive  investment  in  mortgage  loans pursuant to paragraph (d) of subdivision six of this section.  Investments  in  such mortgage  loans shall be subject to such regulations and restrictions as the superintendent of financial  services  finds  to  be  necessary  and proper.   28-a.  Such  bonds  or  other  evidences  of  indebtedness  issued  or guaranteed by the State of Israel as are approved by the comptroller  of the  currency  for investment by national banks; provided, however, that the principal and interest payable thereon shall be  payable  in  United States dollars; and provided that such investments may not exceed in the  aggregate  five  percent  of  the  bank's  capital  deposits,  undivided profits, surplus and reserves.   28-b.  Such  acquisitions  and  leases  of  personal  property  as are authorized to be made by  commercial  banks  by  subdivision  twelve  of section  ninety-six  of  this  chapter,  subject  to  those  limitations applicable to such investments in the case of banks or trust companies.   29. Subject to such restrictions as the  superintendent  of  financial services  may  prescribe,  stock or other equity interest in one or more small business investment  companies,  as  authorized  pursuant  to  the provisions of an act of congress entitled "Small Business Investment Act of  1958,"  as amended, or in any entity established to invest solely in such small business investment companies, except that in no event  shall the  total  amount  of  such  investments  exceed:  (a) for a stock form savings bank five  percent  of  its  capital  stock,  surplus  fund  and undivided  profits;  or (b) for a non-stock savings bank five percent of its net worth.   30. Alternative investment authority of savings  banks  to  invest  in certain   securities.   Notwithstanding  the  limitations  contained  in subdivision one, two, three, four, five, seven,  seven-a,  ten,  eleven, thirteen,   fourteen,   fifteen,  nineteen,  twenty-one-a,  twenty-four, twenty-four-a, twenty-four-b,  twenty-four-c,  twenty-five,  twenty-six, twenty-seven,  twenty-eight-a,  or  subparagraph two of paragraph (a) or paragraph (b) of subdivision twenty-one of this section, and subject  to such  limitations  as  the  superintendent  of  financial services shall adopt, a savings bank  shall  be  authorized  to  invest  in  such  debt securities as are not in default as to either principal or interest when acquired,  and  in  such  equity  securities,  in both cases as would be acquired by prudent persons  of  discretion  and  intelligence  in  such matters  who  are  seeking a reasonable income and preservation of their capital.   Without  limiting  its  authority  hereunder,  the  superintendent  of financial  services  shall adopt regulations to require that any savings bank which shall elect to make investments pursuant to this  subdivision shall  have  first  established  an investment committee of its board of trustees to supervise and monitor the investment activities  exercisable pursuant  to  the authority granted by this subdivision, the majority of the members of which shall be trustees who  are  not  also  officers  or employees of such savings bank.   The  superintendent  of  financial  services shall, in addition, adopt regulations to require that  no  savings  bank,  in  making  investments pursuant to this subdivision shall (either before or after the making of such  investments)  control, as the superintendent of financial services shall define the term "control",  the  issuer  of  any  such  securities acquired by such savings bank.   For purposes of any other law establishing or limiting the investments of  any  person  or  entity to those investments which are permitted for savings banks, the investments authorized by this subdivision shall not, by virtue of this subdivision alone, be deemed investments  in  which  a savings bank may legally invest.   31.  Subject  to  such  regulations as the superintendent of financial services may promulgate, investments which do not qualify under  any  of the preceding subdivisions of this section, provided that:  (a)  No  investment  shall  be made by a savings bank pursuant to this subdivision if the amount of such investment exceeds one per  centum  of the  assets  of the savings bank, or if the aggregate amount of all such investments by a  savings  bank  exceeds,  or  by  the  making  of  such investment will exceed, five per centum of its assets;  (b)  No  investment  shall  be  made  by  a savings bank in the equity securities of any  one  issuer  pursuant  to  this  subdivision  if  the aggregate  amount  invested  by it pursuant to this subdivision together with the amount  invested  in  the  equity  securities  of  such  issuer pursuant to any other provision of law exceeds, or by the making of such investment  will  exceed,  one  per  centum of the assets of the savings bank, and no investment shall be made by a savings bank in a loan to, or in the debt securities of, any one issuer pursuant to this  subdivision, if  the  aggregate  amount  invested  by it pursuant to this subdivision together with the  amount  invested  in  a  loan  to,  or  in  the  debt securities  of,  such  issuer  pursuant  to  any  other provision of law exceeds, or by the making of such investment will exceed, one per centum of the assets of the savings bank;  (c) This subdivision shall not be deemed to  alter  any  provision  of this  chapter limiting the aggregate amount which may be invested in any class of loan or investment;  (e) For the purposes of this subdivision, "net  worth"  of  a  savings bank  shall  mean the excess of its assets at book value, less allocated reserves, over known liabilities; and  (f) For the purposes of sections two hundred seventy-four, two hundred eighty-five and four hundred thirty-five of this chapter, section  three hundred  fifty-nine-f  of  the  general  business  law,  and  any  other provisions of law which restrict investments to those in  which  savings banks  may  legally  invest, other than subdivision six of section three hundred seventy-nine of this chapter,  investments  authorized  by  this subdivision  shall  not be deemed investments in which savings banks may legally invest.