NY Banking L § 130 (2021)
2021 New York Laws BNK - Banking Article 3 - Banks and Trust Companies 130 - Restrictions on Officers, Directors and Employees.

§ 130.  Restrictions  on  officers,  directors  and  employees.  1. No officer, director, clerk or other employee of any bank or trust company, and no person in any way interested or concerned in  the  management  of its  affairs,  shall, acting on his own behalf or for any partnership or unincorporated  association  of  which  he  is  a  member  or  for   any corporation,  of  which  he  owns  or controls a majority of the capital stock, discount, or directly or indirectly make any loan upon, any  note or  other  evidence of debt which he shall know to have been offered for discount to such bank or trust company, and to have been refused.  Every person  violating  the  provisions  of  this subdivision shall, for each offense, forfeit to the people of the state twice the amount of the loan which he shall have made.   2. No officer, director, clerk or other employee of any bank or  trust company  shall, directly or indirectly, purchase or be interested in the purchase of any promissory note or other evidence of debt issued  by  it on  terms  more  favorable  than  those available to the general public, provided, however, that every director,  and  every  officer,  clerk  or other  employee  who is a stockholder of such bank or trust company, may purchase promissory notes or other evidences of debt issued by it in the same ratio as to amount and on the same terms as any other stockholder.   3. (a) No executive officer of a bank  or  trust  company  may  be  an executive officer, director or trustee of another bank or trust company, savings  bank,  savings  and  loan  association,  national bank, federal savings bank or federal savings association,  the  principal  office  of which  institution  is  located  in  this state, bank holding company or foreign banking corporation maintaining a branch in this  state,  unless permission  therefor has been granted by the superintendent of financial services  pursuant  to  the  provisions  of  paragraph   (b)   of   this subdivision, except that an executive officer of a bank or trust company which  is a subsidiary of a bank holding company may be (i) an executive officer and (ii) a director of the bank holding company and  of  one  or more  banking  institutions  which are subsidiaries of such bank holding company.  (b) The superintendent of financial services shall have the  power  to determine by regulation who shall be considered, under the provisions of this  subdivision,  to  be  an  executive  officer,  and by a general or specific regulation to grant permission to an  executive  officer  of  a bank or trust company to be an executive officer, director or trustee or both  an  executive officer and director or a trustee of another bank or trust company, savings bank, or savings and loan  association,  national bank, federal savings bank or federal savings association, the principal office  of  which  is  located  in  this state, bank holding company, or foreign banking corporation maintaining a branch  in  this  state.  Such permission  may be granted only if in the judgment of the superintendent of financial services such service by  the  executive  officer  will  be consistent  with  the  policy  of  the  state of New York as declared in section ten of this chapter. The superintendent  of  financial  services shall have the power to revoke such permission whenever he or she finds, after  reasonable notice and an opportunity to be heard, that the public interest requires such revocation.  (c) For the purposes of  this  subdivision,  the  terms  "subsidiary", "banking institution" and "bank holding company" shall each be given the same  meaning  as is contained in their respective definition in section one hundred forty-one of this chapter, except that the definition of the term "banking institution" is  modified  to  include  a  national  bank, federal  savings  bank  or  federal  savings  association, the principal office of which institution is in this  state,  and  a  foreign  banking corporation maintaining a branch in this state.  (d)  All other restrictions and limitations imposed by this chapter on executive officers and directors of  banks  and  trust  companies  shall continue in effect.   5.  Every  director of a bank or trust company who is obligated on any loan or other extension of credit made by such bank or trust company  to such  director  or  to any other individual, partnership, unincorporated association or corporation, shall file  a  statement  of  his  financial condition with such bank or trust company at least once in each year and at  such other times as the superintendent may require. This subdivision shall not apply to directors whose obligations are secured by collateral having an ascertained market value of at least fifteen per  centum  more than  the  amount of such obligations. The superintendent shall have the power to determine by regulation what shall  be  considered,  under  the provisions of this subdivision, to be a loan or an extension of credit.   6.  If  any officer of a bank or trust company becomes indebted to any domestic or foreign banking organization, other than the bank  or  trust company  of  which  he is an officer, or becomes indebted to any banking institution organized under the laws of  the  United  States,  he  shall within  ten  calendar  days  after he becomes so indebted make a written report to the board of directors of the bank or trust company  of  which he  is  an  officer,  stating  the  date  and amount of any such loan or indebtedness, and the security therefor. In addition  to  the  foregoing reports  he  shall  render written reports of such other indebtedness as the board of directors of the bank or trust company  may  by  resolution require  of  its  officers.  The  superintendent shall have the power to determine by regulation who shall be  considered  an  officer  and  what shall  be considered a loan or indebtedness under the provisions of this subdivision.   The provision of this subdivision  shall  not  be  applicable  if  the amount  of  the  indebtedness  does  not exceed an amount which shall be determined by the superintendent.   7. (a) Every person who is directly or indirectly the beneficial owner of more than ten per centum of any class of any  equity  security  of  a bank  or  trust  company  or who is a director or officer thereof, shall file, within ten days following (i) the effective date of this  section, or  (ii) the date on which he becomes such beneficial owner, director or officer, whichever is later, a statement with the superintendent of  the amount  of  all equity securities of such bank or trust company of which he is the beneficial owner, and within ten days after the close of  each calendar  month  thereafter,  if  there  has  been  any  change  in such ownership during such  month,  shall  file  with  the  superintendent  a statement  indicating  his  ownership at the close of the calendar month and such changes in such ownership as have occurred during such calendar month.  (b) Any such beneficial owner, director or officer of a bank or  trust company shall not be subject to the requirements of this section if  (1)  he  is required by section sixteen (a) of the securities exchange act of nineteen hundred thirty-four, as amended, to file with the  board of governors of the federal reserve system in accordance with regulation f  of  such  board  or with the federal deposit insurance corporation in accordance with part three hundred thirty-five of title  twelve  of  the regulations  of  such corporation, a statement as to his stock ownership and he files with the superintendent at his New York  city  office  four copies of each such statement filed with such board or corporation, or  (2)  he  is  such  beneficial  owner, director or officer of a bank or trust company, all of the voting securities  of  which,  excepting  only directors'  qualifying  shares, are owned, controlled or held with power  to vote by a bank holding company as  defined  in  section  one  hundred forty-one of this chapter or by a single corporation, or  (3)  he  is  such  beneficial  owner, director or officer of a bank or trust company, all of the voting securities  of  which,  excepting  only directors'  qualifying  shares, are owned, controlled or held with power to vote by one or more banks organized  under  the  laws  of  a  foreign country, or  (4)  he  is  such  beneficial  owner,  director  or officer of a trust company, all of the capital stock of which is owned by  twenty  or  more savings banks chartered by the state of New York.  (c)  The  superintendent shall have power to adopt such regulations as the superintendent shall deem  necessary  or  proper  to  implement  the provisions of this section.