2023 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.