NY Banking L § 258 (2021)
2021 New York Laws BNK - Banking Article 6 - Savings Banks 258 - Prohibition of Unauthorized Savings Banks and Use of the Word "Savings"; Exception as to School Savings.

§ 258.  Prohibition  of unauthorized savings banks and use of the word   "savings";  exception  as  to  school   savings.   1.   No   individual,   partnership,  unincorporated  association  or  corporation  other than a   savings bank, state or federal chartered savings and  loan  association,   bank,  trust  company,  industrial  bank, private banker, national bank,   foreign  banking  corporation  licensed  pursuant  to  this  chapter  to   transact  in  this state the business of receiving deposits or state and   federal chartered credit unions shall make use of the word  "saving"  or   "savings"  or  their equivalent in its banking or financial business, or   use any advertisement containing the  word  "saving"  or  "savings",  or   their  equivalent  in relation to its banking or financial business, nor   shall any individual or corporation other than a savings bank in any way   solicit or receive deposits as a savings bank; but nothing herein  shall   be  construed  to  prohibit the use of the word "savings" in the name of   the Savings and Loan Bank of the State of New York or in the name  of  a   trust company all of the stock of which is owned by not less than twenty   savings banks. Any bank, trust company, industrial bank, private banker,   national  bank,  foreign banking corporation, state or federal chartered   credit unions, individual, partnership,  unincorporated  association  or   corporation  violating this provision shall forfeit to the people of the   state for every offense the sum of one hundred  dollars  for  every  day   such offense shall be continued.2.  Any  school in the state of New York may collect from time to time   amounts of money from the pupils of such school  and  any  philanthropic   agency  incorporated  for  philanthropic  purposes, if such agency be so   authorized by certificate of the superintendent of  financial  services,   may  collect  from  time  to  time amounts of money from the children or   persons under the direction or guidance of, or the  promotion  of  whose   welfare  is  an  object  of,  such philanthropic agency. As to each such   school, such money shall be collected by or under  the  supervision  of,   the  principal  or  superintendent  of  such  school or by, or under the   supervision of, any person designated for that purpose by the  board  of   education or other authority having jurisdiction over such school. As to   each  such  philanthropic  agency,  such money shall be collected by, or   under the supervision of, the superintendent or other designated head of   such agency. All money so  collected  shall,  not  later  than  the  day   following  the  day  of collection, be deposited in some savings bank in   the state, be used for the purchase of shares in any  savings  and  loan   association  organized  under  this law, or under the laws of the United   States, whose principal office is located in the state of New  York,  or   be  deposited  in any trust company or state or national bank located in   the state and having an interest department. All money so collected from   any person shall be deposited, or used to purchase shares, in his  name;   provided,  however,  that  if  the principal, superintendent, designated   person or agency head by whom, or under whose  supervision,  such  money   was  collected  shall  deem  the amount of money so collected at any one   time to be insufficient for the opening  of  individual  accounts,  such   money  shall  be  deposited,  or used to purchase shares, in the name of   such principal, superintendent, designated person  or  agency  head,  in   trust,  to  be  by  him  eventually  transferred  to  the  credit of the   respective persons to whom the same belongs, and pending such  transfer,   said  principal,  superintendent, designated person or agency head shall   furnish to the depositary institution or savings  and  loan  association   receiving  such  money  the  name,  signature, address, age and place of   birth of each person from whom such money was collected, and such  other   data  concerning  such  person  as  the  institution  may  require.  Any   depositary institution or savings and  loan  association  authorized  to   receive  any  amounts  collected  by a school or philanthropic agency in    accordance with this subdivision, may, on  the  request  of  any  person   authorized  by  this subdivision to collect such amounts for such school   or  philanthropic  agency,  send  a  collector   to   such   school   or   philanthropic agency to receive and receipt for same. Any certificate of   authorization  issued to a philanthropic agency by the superintendent of   financial services in accordance with this subdivision shall specify the   period for which such authorization is to be effective and the  area  in   which  collections  may  be  made,  and  may  specify any other terms or   conditions  upon  which  such  authorization  is   granted.   Any   such   authorization  may  be  terminated  by  the  superintendent of financial   services by written notice  served  upon  the  philanthropic  agency  or   mailed to it at its last known address. As used in this subdivision with   reference  to  the  placing  of amounts with a depositary institution or   savings and loan association, the words "the day following  the  day  of   collection"  shall  mean  the  next day, after the day of collection, on   which such institution or association is open for business. As  used  in   this  subdivision,  the  words "philanthropic agency" shall be deemed to   include, without limitation a corporation,  not  organized  for  profit,   engaged in promoting the welfare of seamen.3.  Money,  deposited pursuant to the provisions of subdivision two of   this section and held by such banking organizations in the name of  such   principal,  superintendent, designated person or agency head in a school   district in a city having a population of more  than  one  million,  and   under  whose custodial authority said money has remained for a period of   thirty years may be used by such a school district to establish a  trust   fund  after  due  and diligent effort by such principal, superintendent,   designated person, or agency head to locate and notify any such  persons   entitled  to  receive such property. The income of said trust fund shall   be used to provide college scholarships  to  disadvantaged  youth  on  a   competitive  basis  pursuant  to  rules  promulgated  by  the  board  of   education of said district provided however that such scholarships shall   not exceed the cost of attendance. Any person  or  persons  entitled  to   receive  such  property  shall  be  reimbursed  from funds held in trust   pursuant to this subdivision. A bank shall not be liable as a result  of   action  taken  under the provisions of this subdivision. Furthermore, no   banking organization acting on the instructions of or otherwise  dealing   with  any  such  principal,  superintendent, designated person or agency   head shall be responsible for determining whether  any  such  person  is   acting in accordance with this section or is obliged to inquire into the   validity  or  propriety  of  the actions or instructions executed by any   such person or is bound to see to the application of any funds.