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SECTION 220
Participation
Banking (BNK) CHAPTER 2, ARTICLE 5-A
§ 220. Participation. Notwithstanding any rule at common law or any
provision of any general or special law or any provision in their
respective charters, agreements of association, articles of
organization, certificates of incorporation, or trust indentures:

1. All domestic corporations organized for the purpose of carrying on
business within this state, including, without implied limitation, any
railroad or transportation corporation, and all trusts, are hereby
authorized to acquire, purchase, hold, sell, assign, transfer, mortgage,
pledge or otherwise dispose of any bonds, securities or other evidences
of indebtedness created by, or the shares of the capital stock of the
corporation established by this article and, while owners of said stock,
to exercise all the rights, powers and privileges of ownership,
including the right to vote thereon, all without the approval of any
regulatory authority of this state;

2. All banking organizations are hereby authorized to become members
of the corporation established by this article and to make loans to such
corporation as provided herein;

3. All banking organizations are hereby authorized to acquire,
purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise
dispose of any bonds, securities or other evidences of indebtedness
issued by such corporation or the shares of its capital stock, and while
owners of said stock, to exercise all the rights, powers and privileges
of ownership, including the right to vote thereon, all without the
approval of any regulatory authority of this state. The amount of
capital stock of such corporation which any banking organization is
authorized to acquire pursuant to the authority granted herein shall be
in addition to the amount of capital stock in corporations which such
banking organization may otherwise be authorized to acquire.

* § 220. Participation. 1. Notwithstanding any rule at common law or
any provision of any general or special law or any provision in their
respective charters, agreements of association, articles of
organization, certificates of incorporation, or trust indentures:

(a) All domestic corporations organized for the purpose of carrying on
business within this state, including, without implied limitation, any
railroad or transportation corporation, and all trusts, are hereby
authorized to acquire, purchase, hold, sell, assign, transfer, mortgage,
pledge or otherwise dispose of any bonds, securities or other evidences
of indebtedness created by, or the shares of the capital stock of the
corporation established by this article and, while owners of said stock,
to exercise all the rights, powers and privileges of ownership,
including the right to vote thereon, all without the approval of any
regulatory authority of this state;

(b) All banking organizations are hereby authorized to become members
of the corporation established by this article and to make loans to such
corporation as provided herein;

(c) All banking organizations are hereby authorized to acquire,
purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise
dispose of any bonds, securities or other evidences of indebtedness
issued by such corporation or the shares of its capital stock, and while
owners of said stock, to exercise all the rights, powers and privileges
of ownership, including the right to vote thereon, all without the
approval of any regulatory authority of this state. The amount of
capital stock of such corporation which any banking organization is
authorized to acquire pursuant to the authority granted herein shall be
in addition to the amount of capital stock in corporations which such
banking organization may otherwise be authorized to acquire.

2. Notwithstanding the provisions of any general, special or local
law, the notes and other interest-bearing obligations of the corporation
shall be legal investments for any fund defined in section one hundred
seventy-six of the retirement and social security law; provided however,
that any such investment shall meet the criteria contained in
subdivision seven of section one hundred seventy-seven of the retirement
and social security law, and shall be made only pursuant to a loan
agreement between such fund and the corporation. Provided further,
however, that such agreement shall not permit loans exceeding the lesser
of: (i) two percent of the assets of such fund; or (ii) one hundred
million dollars principal amount.

* NB Expired December 31, 1988