2006 New York Code - Restrictions On Powers Of Investment Companies.

 
    § 509.  Restrictions  on powers of investment companies. An investment
  company shall not: 1. Exercise within this state the powers conferred by
  subdivision two of section five hundred eight of this chapter, unless it
  shall have a paid-up capital stock of at least two million dollars.
    2. Deposit any of its funds with any other moneyed corporation  unless
  such  other corporation has been designated as such depositary by a vote
  of a majority of the directors of the investment company,  exclusive  of
  any director who is an officer, director or trustee of the depositary so
  designated;  provided,  however, that this limitation shall not apply to
  the deposit of funds by  an  investment  company  with  another  moneyed
  corporation,  which  owns all or a majority of the capital stock of such
  investment company.
    3. Be the holder of any shares of its own capital  stock  unless  such
  stock  shall  have  been  taken  to  prevent loss upon a debt previously
  contracted in good faith, and stock so acquired shall, within six months
  from the time of its acquisition, be sold or disposed of  at  public  or
  private  sale;  nor  shall  it,  either directly or indirectly, make any
  discount to any person for the purpose of enabling him  to  pay  for  or
  hold  shares of its stock either subscribed for or purchased by him. Any
  investment company making any such discount shall forfeit to the  people
  of the state twice the amount of such discount.
    4.  Except  as provided in section five hundred eight of this article,
  engage in the business of receiving deposits;  provided,  however,  that
  nothing  contained  in  this article shall prevent an investment company
  from maintaining for the account of others  credit  balances  incidental
  to,  or  arising  out  of,  the  exercise  of its lawful powers, but the
  banking board shall have power to  prescribe,  by  specific  or  general
  regulation,  the  extent  to  which, and the conditions upon which, such
  credit balances may be established, maintained and paid out.