2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 7 - (300 - 313) MORTGAGE FACILITIES CORPORATION
307 - Membership.

 
    § 307. Membership. 1. The members of such corporation shall consist of
  such  banking organizations, insurance and surety companies, as may make
  application for membership in such  corporation,  and  membership  shall
  become  effective  upon  the  acceptance  of  such  applications  by the
  temporary board of directors or the permanent board of directors, as the
  case may be. Each member shall lend funds to the corporation as and when
  called upon by it to do so, pursuant to subdivision two of this section,
  but the total amount on loan by any member at any  one  time  shall  not
  exceed  the following limits to be determined as of the date it became a
  member, and such amount shall thereafter be readjusted annually  in  the
  event  of  any  change  in  the  base  of the loan limit of such member:
  commercial banks, industrial banks and trust companies, one  per  centum
  of  capital  and  surplus;  private  bankers, one per centum of capital;
  savings banks,  one  per  centum  of  surplus  fund;  savings  and  loan
  associations,  one per centum of surplus; stock insurance companies, one
  per centum of capital and surplus; surety and  casualty  companies,  one
  per  centum  of capital and surplus; mutual insurance companies, one per
  centum of guaranty funds or of surplus,  whichever  is  applicable;  and
  comparable   limits   for   other   banking,   lending   and   insurance
  organizations, as established  by  the  board  of  directors;  provided,
  however,  that  the  total  amount on loan by any member at any one time
  shall not exceed two hundred fifty thousand dollars; provided,  however,
  that  in  the case of banking organizations and in the case of insurance
  and surety  companies  the  superintendent  of  financial  services  may
  authorize a member to lend to the corporation an amount in excess of two
  hundred  fifty thousand dollars. All loan limits shall be established at
  the thousand dollar nearest to the amount computed on an  actual  basis.
  All  calls  of  funds  which  members  are  committed  to  lend  to such
  corporation shall be prorated by such corporation among the  members  in
  the  same  proportion  that  the maximum loan limit of each bears to the
  aggregate loan limits of all  members  of  such  corporation.  Upon  six
  months' prior written notice to the board of directors, a member of such
  corporation  may  withdraw from membership, effective at the end of such
  six-month period and, after the effective date of such withdrawal,  such
  member  shall  be  free of obligations hereunder except those accrued or
  committed  by  such  corporation  prior  to  such  effective   date   of
  withdrawal.  Notwithstanding the provisions of any other law, general or
  special,  the  notes  or  other  interest-bearing  obligations  of  such
  corporation, issued in accordance with and by virtue of this article and
  the  by-laws  of  such  corporation,  shall be legal investments for the
  banking, insurance and surety organizations who become members  of  such
  corporations,   up  to  but  in  no  event  exceeding  the  loan  limits
  established herein.
    2. The board of directors of the  corporation  may,  on  thirty  days'
  written  notice  to  its  members, make a call of all or any part of the
  funds which such members are committed to lend pursuant  to  subdivision
  one  of  this  section.  The  debentures  or  evidences  of  debt of the
  corporation issued pursuant to the provisions of this article or by-laws
  may contain such terms and provisions as the board of directors  of  the
  corporation   shall  deem  advisable,  including,  but  not  limited  to
  provisions  concerning  interest  rates,  maturities,   sinking   funds,
  redemptions and refundings.