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This entry was published on 2014-09-22
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SECTION 237
Deposits with savings banks; restrictions
Banking (BNK) CHAPTER 2, ARTICLE 6
§ 237. Deposits with savings banks; restrictions. 1. No savings bank
shall accept any deposit for credit to any executor, administrator,
trustee, committee, conservator or guardian, named in a will or
appointed by a court of competent jurisdiction, unless a certified copy
of the will, order or decree of the court authorizing such deposits or
appointing such executor, administrator, trustee, committee, conservator
or guardian, or a certificate of such appointment is filed with the
savings bank.

2. No savings bank shall accept any deposit for credit to any
municipal corporation.

3. A savings bank may limit the aggregate amount which it will receive
on deposit; may, in its discretion, refuse to accept a deposit; and may
at any time return all or any part of any deposit other than a deposit
held pursuant to subdivision one-a of section two hundred thirty-four of
this chapter.

4. Notwithstanding any inconsistent provision of law, a savings bank
may accept deposits of moneys paid under and as security for the
performance of any lease or leases, or to be applied to payments under
such lease or leases when due, although the person depositing such
moneys is held accountable therefor as a trustee of trust funds. Moneys
received from or held for persons under more than one lease may be
deposited in one or more accounts.

Notwithstanding any inconsistent provision of law, the word "person"
as used in this subdivision four shall include an individual, municipal
corporation, partnership, corporation, association or any other
organization operated for profit.

5. Nothing contained in this section shall require a savings bank to
return any deposit lawfully held by it at the time this act takes
effect.

6. Nothing contained in this section or in this chapter shall be
construed to prevent a savings bank from accepting a deposit or deposits
in any amount in any account in the name of or to the credit of any bona
fide charitable or religious association, corporation or organization.

7. Subject to any regulations and restrictions prescribed by the
superintendent of financial services, a savings bank shall have power to
act as trustee under a retirement plan established pursuant to the
provisions of the act of congress entitled "Self-employed Individuals
Tax Retirement Act of 1962", and provisions of law contained therein as
amended, provided that the provisions of such retirement plan require
the funds of such trust to be invested exclusively in deposits in
savings banks. In the event that any such retirement plan which, in the
judgment of the savings bank, constituted a qualified plan under the
provisions of said Self-employed Individuals Tax Retirement Act of 1962,
and provisions of law contained therein as amended, and the regulations
promulgated thereunder at the time the trust was established and
accepted by the savings bank is subsequently determined not to be such a
qualified plan or subsequently ceases to be such a qualified plan, in
whole or in part, the savings bank may, nevertheless, continue to act as
trustee of any deposits theretofore made under such plan and to dispose
of the same in accordance with the directions of the depositor and the
beneficiaries thereof. No savings bank, in respect to deposits made
under this subdivision, shall be bound by any provision of this chapter
restricting or limiting the amount of deposits which a savings bank may
accept, or be required to segregate such deposits from other deposits of
such savings banks, provided, however, that a savings bank shall keep
appropriate records showing in proper detail all transactions engaged in
under the authority of this subdivision.

8. Subject to any regulations and restrictions prescribed by the
superintendent of financial services, a savings bank shall have power to
act as trustee of an individual retirement account established pursuant
to the provisions of the act of congress entitled "Employee Retirement
Income Security Act of 1974", provided that the provisions of the
written governing instrument creating the trust require the funds of
such trust to be invested exclusively in deposits in savings banks. In
the event that any such individual retirement account, which in the
judgment of the savings bank, constituted a qualified individual
retirement account under the provisions of said Employee Retirement
Income Security Act of 1974 and the regulations promulgated thereunder
at the time the trust was established and accepted by the savings bank
is subsequently determined not to be such a qualified individual
retirement account or subsequently ceases to be such a qualified
individual retirement account, in whole or in part, the savings bank
may, nevertheless, continue to act as trustee of any deposits
theretofore made under such individual retirement account and to dispose
of the same in accordance with the directions of the depositor and the
beneficiaries thereof. No savings bank, in respect to deposits made
under this subdivision, shall be bound by any provision of this chapter
restricting or limiting the amount of deposits which a savings bank may
accept, or be required to segregate such deposits from other deposits of
such savings banks, provided, however, that a savings bank shall keep
appropriate records showing in proper detail all transactions engaged in
under the authority of this subdivision.