2006 New York Code - Surplus, Obligations And Depositories.

 
    § 217.  Surplus,  obligations  and  depositories.  1. Such corporation
  shall set apart as an earned surplus all of its net earnings in each and
  every year until such earned  surplus  shall  equal  the  total  of  the
  paid-in  capital  and  paid-in  surplus  then outstanding.   Said earned
  surplus shall be held in cash,  invested  in  United  States  government
  bonds,  or  as provided in such corporation's by-laws, and shall be kept
  and used to meet losses  and  contingencies  of  such  corporation  and,
  whenever the amount of earned surplus shall become impaired, it shall be
  built  up  again  to  the required amount in the manner provided for its
  original accumulation.
    2. At no time shall the total obligations of such  corporation  exceed
  ten  times  the amount of its paid-in capital and surplus, not including
  therein the earned  surplus,  or  two  hundred  fifty  million  dollars,
  whichever is greater.
    3.  Such corporation shall not deposit any of its funds in any banking
  organization unless such banking organization has been designated  as  a
  depository  by  a  vote  of the majority of all of the directors of such
  corporation, exclusive of any director who is an officer or director  of
  the  depository  so designated. Such corporation shall not receive money
  on deposit. Such corporation  shall  not  make  any  loans  directly  or
  indirectly  to  any  of its officers or to any firms in which any of its
  officers is a member or officer.