2023 New York Laws › BNK - Banking › Article 6 - Savings Banks › 234 - General Powers.

§ 234.  General  powers. Every savings bank shall have, subject to the
  restrictions and limitations contained in this  chapter,  the  following
  powers:
1.  To  receive  and repay deposits, including demand deposits; invest
  its funds; pay interest on deposits; and exercise  all  such  incidental
  powers  as shall be necessary to conduct the business of a savings bank,
  including, subject to regulation  by  the  superintendent  of  financial
  services,  the  power to charge for maintaining a demand deposit account
  or for honoring checks drawn on or accepting deposits made  to  such  an
  account.
1-a.   Subject   to   such   regulations   and   restrictions  as  the
  superintendent of financial services finds to be necessary  and  proper,
  to  contract to receive time deposits, including deposits upon which the
  savings bank contracts to pay interest at a fixed rate.
2. To issue transferable certificates showing the amounts  contributed
  to   the  surplus  fund  by  any  incorporator  or  trustee.  Each  such
  certificate shall contain a statement that the amount represented by  it
  does not constitute a liability of such savings bank, except as provided
  in this article.
3. To acquire, hold, lease and convey real property.
4.  To improve real property acquired by it when such improvements are
  necessary to protect the interest of the savings  bank  therein  and  to
  facilitate the sale thereof.
5.  To  borrow  money  for  the  purpose of repaying depositors and to
  pledge or hypothecate its assets as collateral for any such loans.
5-a.  Subject  to   such   regulations   and   restrictions   as   the
  superintendent  of  financial services finds to be necessary and proper,
  to borrow money for purposes other than that of repaying depositors  and
  to pledge or hypothecate its assets as collateral for any such loans.
5-b.   Subject   to   such   regulations   and   restrictions  as  the
  superintendent of financial services finds to be  necessary  and  proper
  and  notwithstanding any other provisions of law, to issue notes, bonds,
  debentures, or other obligations or  other  securities  subordinated  to
  deposits  in such savings bank; provided that, unless the superintendent
  has given prior  approval  otherwise,  the  aggregate  principal  amount
  thereof at the time of issuance shall not exceed twenty-five per cent of
  the  net worth of such savings bank, exclusive of all such notes, bonds,
  debentures, or other obligations or other securities.  The  proceeds  or
  other consideration derived by a savings bank from the issuance pursuant
  to  this  subdivision  of  any  such  notes, bonds, debentures, or other
  obligations or other securities shall be deemed  for  purposes  of  this
  chapter to constitute a part of the net worth of such savings bank.
5-c. To accept moneys deposited by the comptroller or the commissioner
  of  taxation  and finance as linked deposits pursuant to article fifteen
  of the state finance law and to enter into agreements, pledge assets  or
  furnish  other  security,  including, but not limited to, an irrevocable
  letter of credit issued by a federal home  loan  bank,  satisfactory  in
  form  and amount to such authorized depositor, for the repayment of such
  moneys.
5-d. To accept moneys deposited by the comptroller or the commissioner
  of taxation and finance in a branch located  in  a  banking  development
  district  established  pursuant  to section ninety-six-d of this chapter
  and to enter into agreements, pledge assets or furnish  other  security,
  including,  but not limited to an irrevocable letter of credit issued by
  a federal home loan bank,  satisfactory  in  form  and  amount  to  such
  authorized depositor, for the repayment of such moneys.
5-e.  To  accept  moneys deposited by the New York state environmental
  facilities corporation as linked deposits pursuant to article sixteen of

  the state finance law and to enter into  agreements,  pledge  assets  or
  furnish  other security, satisfactory in form and amount to the New York
  state environmental facilities corporation, for the  repayment  of  such
  moneys.
6. To collect promissory notes or bills of exchange.
7. To receive as depositary, or as bailee for safekeeping, obligations
  of the United States government.
8. To receive money for transmission and to transmit the same.
9.  To  engage  in  the  safe deposit business by renting safe deposit
  boxes in which to keep personal property and papers of any kind.
10. To act as agent in the sale of travelers' checks.
11. To assume  and  discharge  such  obligations  to  Federal  Deposit
  Insurance Corporation as may be necessary or required for the purpose of
  maintaining deposit insurance in such corporation.
12.  To  become  a  member  of  a federal reserve bank and to have and
  exercise all powers, not in conflict with the laws of this state,  which
  are  conferred  upon  any  such  member by the federal reserve act. Such
  savings bank and its trustees and officers shall continue to be subject,
  however, to all liabilities and duties imposed upon them by any  law  of
  this state and to all the provisions of this chapter relating to savings
  banks.
13.  To become a member of a federal home loan bank and to have and to
  exercise all powers, not in conflict with the laws of this state,  which
  are  conferred  upon  any such member by the federal home loan bank act.
  Such savings bank and its trustees and officers  shall  continue  to  be
  subject, however, to all liabilities and duties imposed upon them by any
  law  of  this  state  and  to all provisions of this chapter relating to
  savings banks.
15. To perform services for the Federal National Mortgage  Association
  created under the housing act of nineteen hundred fifty-four, as amended
  from  time  to time, and to sell or assign mortgages to such association
  and in connection  therewith  to  make  capital  contributions  thereto,
  purchase  stock  thereof,  and do any and all other acts which under the
  laws and regulations applicable to such sales may be required to  enable
  such sales to be effected.
16.  To  service mortgages for others, and to render investment advice
  incidental to the purchase of and investment  in  mortgages  by  others,
  provided,  however,  that the superintendent of financial services shall
  have power to prescribe, by specific or general regulation,  the  extent
  to  which  and  the conditions upon which such mortgages may be serviced
  and such investment advice may be rendered.
17. To sue and to be sued in all courts and to participate in  actions
  and  proceedings,  whether  judicial,  arbitrative or otherwise, in like
  cases as natural persons.
18. To have a corporate seal, and to alter such seal at pleasure,  and
  to  use  it  by  causing it or a facsimile to be affixed or impressed or
  reproduced in any other manner.
19. To make donations, irrespective  of  corporate  benefit,  for  the
  public welfare or for community fund, hospital, charitable, educational,
  scientific,  civic  or  similar  purposes,  and  in time of war or other
  national emergency in aid thereof.
20. To elect or appoint officers, employees, and other agents  of  the
  savings bank, define their duties, fix their compensation, and to indem-
  nify corporate personnel.
21.  To  execute  and  deliver such guaranties as may be incidental or
  usual in the transfer of investment securities.
22. To have perpetual existence.
23. To have and exercise all other powers necessary or appropriate  in
  conducting the business of the savings bank.
24.  Subject  to  such  regulations as the superintendent of financial
  services finds to be necessary and proper, and notwithstanding any other
  provision of law, to accept federal tax and loan accounts, the  balances
  of  which  are  payable  on  demand  without previous notice of intended
  withdrawal and to pledge collateral to secure such accounts.
25. Subject to any limitations or other specific provisions  contained
  in  this  chapter or any other statute of this state or its organization
  certificate, and as shall be appropriate in conducting the  business  of
  the  corporation,  and  only for such activities which are authorized by
  this chapter for savings banks:  to  be  a  promoter,  partner,  member,
  associate  or  manager  of other business enterprises or ventures, or to
  the extent permitted in any other jurisdiction to be an incorporator  of
  other corporations of any type or kind.
26.  To  engage  in  a  "savings promotion" in accordance with section
  nine-v of this chapter and subject to any regulations promulgated by the
  superintendent. The superintendent shall consult with the  state  gaming
  commission  before  proposing  any  such  regulations  or any amendments
  thereto. Such regulations shall ensure that:
a. no participant in a savings promotion is charged any fee that would
  constitute, directly or indirectly, consideration for  participation  in
  such savings promotion; and
b.  no  participant  in  a  savings  promotion  foregoes,  directly or
  indirectly,  any  interest  that  would  constitute  consideration   for
  participation in such savings promotion.