2010 New York Code
BNK - Banking
Article 6 - (229 - 260-B) 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  banking  board,  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 banking board
  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 banking board
  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 banking board
  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 banks 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 banking board 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.