2023 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.