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This entry was published on 2014-09-22
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Duties of trustees and officers
§ 257. Duties of trustees and officers. 1. Trustees and officers shall
discharge the duties of their respective positions in good faith and
with that degree of diligence, care and skill which prudent men would
exercise under similar circumstances in like positions. In discharging
their duties, trustees and officers, when acting in good faith, may rely
(a) upon financial statements of the savings bank represented to them to
be correct by the president or the officer of the savings bank having
charge of the books of account, or stated in a written report by an
independent public or certified public accountant or firm of such
accountants fairly to reflect the financial condition of such savings
bank and (b) upon reports required to be submitted to them by any
provision of this chapter or prepared in the ordinary course of business
by an officer or committee charged with the responsibility therefor.
Nothing in this section shall be deemed to require the trustees to
perform functions vested in any committee, officer or other person
pursuant to the provisions of any other section of this chapter.

2. An action may be brought against one or more trustees or officers
of a savings bank to procure a judgment for the following relief:

(a) To compel the defendant to account for his official conduct in the
following cases:

(1) The neglect of, or failure to perform, or other violation of his
duties in the management and disposition of the savings bank's assets
committed to his charge.

(2) The acquisition by himself, transfer to others, loss or waste of
the savings bank's assets due to any neglect of or failure to perform,
or other violation of his duties.

(b) To set aside a conveyance, assignment or transfer of the savings
bank's assets by one or more trustees or officers, contrary to a
provision of law, where the transferee knew the purpose of the transfer.

(c) To enjoin such a conveyance, assignment or transfer of the savings
bank's assets by one or more of the trustees or officers where there is
good reason to apprehend that it will be made.

3. Subject to section six hundred thirty-one of this chapter, an
action may be brought for the relief provided in this section by a
savings bank or an officer, trustee or judgment creditor thereof.

4. This section shall not affect any liability otherwise imposed by
law upon any trustee or officer.