Search OpenLegislation Statutes

This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
§ 215. Membership. 1. The members of such corporation shall include
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 board
of directors. Each member shall lend funds to such corporation as and
when called upon by it to do so, but the total amount on loan by any
member at any one time shall not exceed the following limit to be
determined as of the time 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; national banking associations,
state-chartered commercial banks and trust companies, two per cent of
capital stock and surplus; New York savings and loan associations, two
per cent of the surplus account determined as provided in article ten,
section three hundred eighty-five; savings banks, two percent of net
worth as defined in article six, section two hundred forty-four; stock
insurance companies, two per cent of capital and surplus; surety and
casualty companies, two per cent of capital and surplus; mutual
insurance companies, two per cent of surplus to policy holders; and
comparable limits for other banking, loaning and insurance
organizations, as established by the board of directors; provided,
however, that the total amount on loan by any member at anyone time
shall not exceed ten million dollars, provided further, however, that
any member having a loan limit in excess of ten million dollars may
elect that its total amount on loan at any one time to such corporation
shall equal said loan limit but in any event shall not exceed twenty
million dollars. In the event that two or more members shall merge or
consolidate, the organization as so merged or consolidated shall elect
that its total amount on loan to such corporation shall be equal to the
combined loan limits of such members determined immediately before the
merger or consolidation but in no event to exceed twenty-five million
dollars at any one time outstanding. 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, and other non-public
entities who become members of such corporation, up to but in no event
exceeding the loan limits established herein.

2. Other entities may make application for membership in such
corporation according to such terms and criteria as established by the
board of directors; except that such other entities may not include
public benefit corporations established under the laws of the state of
New York.