NY Banking L § 285 (2021)
2021 New York Laws BNK - Banking Article 6-B - Fund for Insuring Deposits in Savings Banks And/or Otherwise Protecting Depositors 285 - Powers Which May Be Granted to Trustee.

§ 285.  Powers  which  may  be granted to trustee. In addition to such   other powers as may be set  forth  in  the  agreement  not  inconsistent   herewith  or  with the purposes of the fund, the trustee shall have such   of the following powers as the agreement may provide:1. To insure in whole or in part the deposits in member banks, subject   to such terms and conditions as the agreement may provide.2. To buy any assets owned by  any  member  bank  at  the  book  value   thereof  notwithstanding such value may exceed the market value thereof,   or such other value as the trustee may elect either with or  without  an   agreement  providing  for  the  repurchase  of the same at such price or   value and at such time and subject to such conditions as may  be  agreed   upon  by  the trustee in its discretion and to make loans or advances to   any member bank upon such terms and conditions as may seem desirable and   with such security as the trustee may determine or without security;  in   any  agreement  of  repurchase  or repayment it may be provided that the   savings bank receiving such loan or  advance  or  making  such  sale  of   assets  may not be obligated to repay the same or repurchase such assets   until the superintendent of financial services shall certify  that  such   savings bank is in a safe and sound condition to make such repurchase or   repayment.3.  To  deposit  all  or  any  part  of any moneys in said fund in any   savings bank or savings banks and such savings bank or savings banks may   receive the same notwithstanding the provisions of section  two  hundred   thirty-seven  of  this  act  and/or  in  any  one or more banks or trust   companies organized under the laws of the state of New York selected  by   the  trustee  with the approval of the superintendent, and such deposits   in case of suspension or liquidation of any such depositary other than a   savings bank shall have the same priority as deposits of  savings  banks   pursuant to law. In the event of the liquidation of a savings bank which   is  such depositary, such deposits shall be subordinate to the claims of   the depositors in such bank but prior to all other claims  except  those   of the state of New York or of the United States.4. In addition to any other uses authorized herein and provided in the   agreement,  to  invest  and  reinvest  the  fund  in such securities and   property as are legal for investment by savings banks subject  to  those   limitations applicable to such investments in the case of savings banks.5.  To  make contributions to the surplus fund of any member bank upon   such terms and conditions for the use  and  the  repayment  thereof  and   evidenced in such manner as the superintendent of financial services may   approve, and such savings bank may make such repayment as such agreement   may provide notwithstanding any provisions of law; but no such agreement   shall  require  such  repayment  except  if, as and when the surplus and   surplus fund of such savings bank shall be not less than five per centum   of the amount due its depositors nor shall any  such  agreement  require   any  payment  on  account  of  such contribution in such an amount as to   reduce the surplus and surplus fund of such savings bank below five  per   centum  of the amount owed its depositors. The agreement may provide the   manner in which the surplus and surplus fund shall be computed  for  the   purpose  of  this subdivision. Such contributions shall not constitute a   liability of such member bank except as herein provided.6. If  it  shall  appear  by  certificate  of  the  superintendent  of   financial  services  filed  in his office, that any member bank to which   the trustee with the approval of the superintendent has made any loan or   advance, or to the surplus fund of which it has made a contribution,  or   from  which  the trustee has purchased any asset at a price in excess of   the market value thereof, would but for such loan, advance, contribution   or purchase be in such condition  that  the  superintendent  might  take   possession  of the business and property of the same pursuant to law, or    that any such member bank to which the trustee with the approval of  the   superintendent  has  made any loan or advance, or to the surplus fund of   which it has  made  a  contribution,  or  from  which  the  trustee  has   purchased any asset at a price in excess of the market value thereof, or   the  deposits in which have been insured by the fund in whole or in part   shall have committed such an act  or  is  in  such  condition  that  the   superintendent might take possession of the business and property of the   same  pursuant to law, the trustee shall have the right if it so elects,   and in such case the superintendent, on such conditions and  subject  to   such  rules  and  regulations  as  he  shall prescribe, shall permit the   trustee to take possession and control forthwith  of  the  property  and   business of such bank and operate and/or liquidate the same. The trustee   may, while carrying on such business, pay to such bank out of the moneys   in  or available to the fund such sums as the agreement may authorize as   the trustee deems necessary for the protection of the bank's depositors.7. At  any  time  after  the  trustee  has  taken  over  the  control,   possession and operation of any savings bank, as provided in subdivision   six  hereof,  it may, with the approval of the superintendent, turn back   the control, possession and operation thereof to  such  bank  which  may   continue  or resume business, provided the moneys advanced from the fund   have been repaid or satisfactory arrangements  made  for  the  repayment   thereof  and  the superintendent has certified such bank to be in a safe   and sound condition or upon such  other  conditions  authorized  in  the   agreement as may seem proper to the trustee.8.  The  trustee, with the approval of the superintendent of financial   services may at any time after it has taken over the control, possession   and operation of any bank under subdivision six hereof  discontinue  the   business  of such bank and proceed to liquidate its affairs. The trustee   may use the assets in the fund to pay to  the  depositors  of  any  such   savings  bank  out  of moneys in or available to the fund the excess, if   any, or such portion thereof as the agreement may provide, of  the  full   amount of their respective deposits over the dividends received therefor   on such liquidation.9.  To  carry out the provisions aforesaid, the trustee shall have and   may exercise all the rights, powers, privileges and  franchises  of  any   savings bank taken over by it, and at any time, with the approval of the   superintendent  of  financial  services, to suspend the authority of the   trustees of any savings bank and exercise the powers and duties of  such   trustees,  and  in  addition  to  the  foregoing,  in the event it shall   operate and/or liquidate any such savings bank it  shall  have  and  may   exercise  all  of  the  rights  and  powers  which the superintendent of   financial services would have pursuant to law  in  connection  with  the   operation  and/or  liquidation  of  such bank and be subject to the same   duties and supervision. The trustee, or any duly authorized agent of the   trustee, in connection with the operation and/or liquidation of any such   bank may execute, acknowledge and deliver in the name of such bank,  and   under  its  seal,  or  may authorize any officer or officers of any such   bank to execute, acknowledge and deliver in the name of  such  bank  and   under  its  seal  any  instrument affecting or relating to the property,   business or affairs of such bank, and in the event any such  officer  is   so  authorized  by  the  trustee, such authorization shall be deemed the   authorization of the board of trustees of such bank and he may swear  or   affirm  the  usual  certificate  of acknowledgment to the effect that he   executed the same and such seal was affixed  by  the  authority  of  the   board  of  trustees  thereof.  Any  instrument  executed  in  any manner   provided herein shall be valid and effectual for all purposes.10. To borrow money for the purpose of the fund and pledge any  assets   in  the fund as security for such loans, and in connection therewith may    rehypothecate any securities or collateral pledged to it by any  savings   bank.11.  To  collect,  or  enforce  by legal proceedings if necessary, the   contributions for which each member  bank  is  liable  pursuant  to  the   provisions  of  the agreement, or any debt or obligation due to the fund   or mortgage or lien held by the fund.