2023 New York Laws › BNK - Banking › Article 5-A - New York Business Development Corporation › 220 - Participation.

§ 220.  Participation.  Notwithstanding  any rule at common law or any
provision of any general or  special  law  or  any  provision  in  their
respective    charters,   agreements   of   association,   articles   of
organization, certificates of incorporation, or trust indentures:
1. All domestic corporations organized for the purpose of carrying  on
business  within  this state, including, without implied limitation, any
railroad or transportation  corporation,  and  all  trusts,  are  hereby
authorized to acquire, purchase, hold, sell, assign, transfer, mortgage,
pledge  or otherwise dispose of any bonds, securities or other evidences
of indebtedness created by, or the shares of the capital  stock  of  the
corporation established by this article and, while owners of said stock,
to  exercise  all  the  rights,  powers  and  privileges  of  ownership,
including the right to vote thereon, all without  the  approval  of  any
regulatory authority of this state;
2.  All  banking organizations are hereby authorized to become members
of the corporation established by this article and to make loans to such
corporation as provided herein;
3.  All  banking  organizations  are  hereby  authorized  to  acquire,
purchase,  hold,  sell, assign, transfer, mortgage, pledge, or otherwise
dispose of any bonds, securities  or  other  evidences  of  indebtedness
issued by such corporation or the shares of its capital stock, and while
owners  of said stock, to exercise all the rights, powers and privileges
of ownership, including the right  to  vote  thereon,  all  without  the
approval  of  any  regulatory  authority  of  this  state. The amount of
capital stock of such corporation  which  any  banking  organization  is
authorized  to acquire pursuant to the authority granted herein shall be
in addition to the amount of capital stock in  corporations  which  such
banking organization may otherwise be authorized to acquire.
* § 220.  Participation.  1. Notwithstanding any rule at common law or
any provision of any general or special law or any  provision  in  their
respective    charters,   agreements   of   association,   articles   of
organization, certificates of incorporation, or trust indentures:
(a) All domestic corporations organized for the purpose of carrying on
business within this state, including, without implied  limitation,  any
railroad  or  transportation  corporation,  and  all  trusts, are hereby
authorized to acquire, purchase, hold, sell, assign, transfer, mortgage,
pledge or otherwise dispose of any bonds, securities or other  evidences
of  indebtedness  created  by, or the shares of the capital stock of the
corporation established by this article and, while owners of said stock,
to  exercise  all  the  rights,  powers  and  privileges  of  ownership,
including  the  right  to  vote thereon, all without the approval of any
regulatory authority of this state;
(b) All banking organizations are hereby authorized to become  members
of the corporation established by this article and to make loans to such
corporation as provided herein;
(c)  All  banking  organizations  are  hereby  authorized  to acquire,
purchase, hold, sell, assign, transfer, mortgage, pledge,  or  otherwise
dispose  of  any  bonds,  securities  or other evidences of indebtedness
issued by such corporation or the shares of its capital stock, and while
owners of said stock, to exercise all the rights, powers and  privileges
of  ownership,  including  the  right  to  vote thereon, all without the
approval of any regulatory  authority  of  this  state.  The  amount  of
capital  stock  of  such  corporation  which any banking organization is
authorized to acquire pursuant to the authority granted herein shall  be
in  addition  to  the amount of capital stock in corporations which such
banking organization may otherwise be authorized to acquire.
2. Notwithstanding the provisions of any  general,  special  or  local
law, the notes and other interest-bearing obligations of the corporation

shall  be  legal investments for any fund defined in section one hundred
seventy-six of the retirement and social security law; provided however,
that  any  such  investment  shall  meet  the  criteria   contained   in
subdivision seven of section one hundred seventy-seven of the retirement
and  social  security  law,  and  shall  be made only pursuant to a loan
agreement between such  fund  and  the  corporation.  Provided  further,
however, that such agreement shall not permit loans exceeding the lesser
of:  (i)  two  percent  of  the assets of such fund; or (ii) one hundred
million dollars principal amount.
* NB Expired December 31, 1988