2023 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  sixty days' notice if not withdrawn by  the  fifteenth  day  thereafter.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  that notice be given before such deposits may  be  withdrawn  it  shall,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.