NY Banking L § 238 (2021)
2021 New York Laws BNK - Banking Article 6 - Savings Banks 238 - Regulations and Restrictions as to Repayment of Deposits.

§ 238.  Regulations  and  restrictions as to repayment of deposits. 1.   The repayment of deposits made with any savings bank  and  any  interest   credited thereto, shall be subject to the provisions of this chapter and   to  rules  and  regulations  made  in  accordance  therewith.  Any  such   regulations adopted by the board  of  trustees  shall  be  posted  in  a   conspicuous  place  in  the  office or offices of such savings bank, and   shall be available to  depositors  upon  request.  All  such  rules  and   regulations,  from  time  to time in effect, and all amendments thereto,   from time to time in effect, shall be binding upon all depositors.2. A savings bank may at any time by a  resolution  of  its  board  of   trustees  require  a notice of sixty days before repaying deposits which   are not demand deposits, in which event no non-demand deposit  shall  be   due  or  payable  until sixty days after notice of intention to withdraw   the same shall have been personally given by  the  depositor.  Any  such   non-demand deposit shall cease to be due or payable under such notice or   by  reason  thereof  upon the fifteenth day after the expiration of such   sixty days' notice if not withdrawn by  the  fifteenth  day  thereafter.   Nothing herein contained, however, shall be construed as prohibiting any   savings bank from making payments of such deposits before the expiration   of  said  sixty  days' notice. Except as provided in subdivision four of   this section and in subdivision one-a of section two hundred thirty-four   of this chapter, no savings bank shall  agree  with  its  depositors  in   advance  to  waive said sixty days' notice nor shall it require a longer   notice than sixty days. In the event that any savings bank shall require   that notice be given before such deposits may  be  withdrawn  it  shall,   upon   the   day   such   requirement  is  made  effective,  notify  the   superintendent by telephone or telegraph that such requirement has  been   made.3.  Except  as  provided  in  subdivisions  four, five and six of this   section, a savings bank shall  not  pay,  nor  shall  a  depositor,  his   assignee  or anyone claiming through a depositor, be entitled to receive   any interest or deposit or portion of a deposit, unless the passbook  of   the  depositor  be  produced and the proper entry be made therein at the   time of the payment. The board of trustees, however, may provide in  the   by-laws  for  making  payments  in  cases  of loss of passbook, or other   exceptional cases where the passbooks cannot be produced without serious   inconvenience to depositors. The board of trustees may  further  provide   in  the  by-laws  for  the  payment  of  interest to a depositor without   requiring the production of the passbook, provided that such payment  is   made  (a)  pursuant  to the written request of the depositor, and (b) by   check payable to the order of the depositor.  The  right  to  make  such   payments  without  production  of  the  passbook  shall  cease  when the   superintendent shall so direct, upon his being satisfied that such right   is being improperly exercised. Payments, however, may be made  upon  the   judgment  or  order of a court. Where payment is made without production   of the passbook in accordance with its by-laws, a savings bank shall not   be liable to an assignee of that  passbook  for  such  payment  if  such   assignee  has  not,  prior to such payment, served upon the savings bank   written notice of the assignment. When authorized by the depositor,  or,   in  the  case of a joint account, by both depositors, a savings bank may   charge the account of such depositor or depositors for any sums due  the   insurance  department  of  such  savings  bank,  or  due  the  insurance   department of any other savings bank for  which  it  is  agent,  without   requiring the production of the passbook for the recording of the charge   therein.  For the purpose of this subdivision, the term "passbook" shall   include any  evidence  of  ownership  of  a  deposit  held  pursuant  to   subdivision  one-a  of  section two hundred thirty-four of this chapter,   subject,  however,  to  such  regulations  and   restrictions   as   the    superintendent  of  financial  services  may  prescribe pursuant to such   subdivision.4.  A  savings bank may contract with its depositors to repay deposits   of fixed sums made at regular intervals, other than demand deposits  and   deposits  held  pursuant  to  subdivision  one-a  of section two hundred   thirty-four of this chapter, at a given time with all interest  credited   thereon  or to repay said deposits when, together with interest credited   thereon, they shall equal a specific sum and  may  issue  a  certificate   setting  forth the given sum to which such deposits shall be accumulated   or the given time during which the deposits  and  the  interest  thereon   shall be accumulated. Such contract shall not provide for any forfeiture   of  the sums deposited in the event of the discontinuance of the regular   payments. Interest on club accounts, if offered,  must  be  credited  at   least  quarterly and may not be forfeited once credited, in the event of   the discontinuance of regular payments. Any savings bank which  provides   for  deposits  in club accounts shall, in all advertising, announcements   or brochures pertaining to such accounts, state whether or not  interest   is  paid  thereon and, if interest is paid, shall state the rate or form   of interest so paid in accordance with any rules  and  regulations  that   may be prescribed by the superintendent.4-a.  If  a  deposit held pursuant to subdivision one-a of section two   hundred thirty-four of this chapter is repaid prior to maturity  at  the   request  of  a  depositor,  such  repayment  shall  be  subject  to such   penalties as the superintendent of financial services  may  find  to  be   necessary and proper, except that no such penalty shall be imposed where   the depositor has died or been declared legally incompetent.5.  A savings bank may accept deposits from an employer or an employee   group, to be credited to the individual accounts of  the  members  of  a   group  of  employees having a common employer, without the issuance of a   passbook in connection therewith, and may pay to any one of the  members   of  such  group, or to his authorized agent, in person, the whole or any   part of such deposits credited to his account together with the interest   credited thereon, without requiring the production of a passbook.6. Subject to any  regulations  and  restrictions  prescribed  by  the   superintendent   of  financial  services,  a  savings  bank  may  accept   deposits, including demand deposits, without the issuance of a  passbook   in  connection  therewith,  and  may  issue  such other evidences of its   obligation to repay such deposits as may be appropriate to safeguard the   interests of the depositors and of the savings bank.