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SECTION 285
Powers which may be granted to trustee
Banking (BNK) CHAPTER 2, ARTICLE 6-B
§ 285. Powers which may be granted to trustee. In addition to such
other powers as may be set forth in the agreement not inconsistent
herewith or with the purposes of the fund, the trustee shall have such
of the following powers as the agreement may provide:

1. To insure in whole or in part the deposits in member banks, subject
to such terms and conditions as the agreement may provide.

2. To buy any assets owned by any member bank at the book value
thereof notwithstanding such value may exceed the market value thereof,
or such other value as the trustee may elect either with or without an
agreement providing for the repurchase of the same at such price or
value and at such time and subject to such conditions as may be agreed
upon by the trustee in its discretion and to make loans or advances to
any member bank upon such terms and conditions as may seem desirable and
with such security as the trustee may determine or without security; in
any agreement of repurchase or repayment it may be provided that the
savings bank receiving such loan or advance or making such sale of
assets may not be obligated to repay the same or repurchase such assets
until the superintendent of financial services shall certify that such
savings bank is in a safe and sound condition to make such repurchase or
repayment.

3. To deposit all or any part of any moneys in said fund in any
savings bank or savings banks and such savings bank or savings banks may
receive the same notwithstanding the provisions of section two hundred
thirty-seven of this act and/or in any one or more banks or trust
companies organized under the laws of the state of New York selected by
the trustee with the approval of the superintendent, and such deposits
in case of suspension or liquidation of any such depositary other than a
savings bank shall have the same priority as deposits of savings banks
pursuant to law. In the event of the liquidation of a savings bank which
is such depositary, such deposits shall be subordinate to the claims of
the depositors in such bank but prior to all other claims except those
of the state of New York or of the United States.

4. In addition to any other uses authorized herein and provided in the
agreement, to invest and reinvest the fund in such securities and
property as are legal for investment by savings banks subject to those
limitations applicable to such investments in the case of savings banks.

5. To make contributions to the surplus fund of any member bank upon
such terms and conditions for the use and the repayment thereof and
evidenced in such manner as the superintendent of financial services may
approve, and such savings bank may make such repayment as such agreement
may provide notwithstanding any provisions of law; but no such agreement
shall require such repayment except if, as and when the surplus and
surplus fund of such savings bank shall be not less than five per centum
of the amount due its depositors nor shall any such agreement require
any payment on account of such contribution in such an amount as to
reduce the surplus and surplus fund of such savings bank below five per
centum of the amount owed its depositors. The agreement may provide the
manner in which the surplus and surplus fund shall be computed for the
purpose of this subdivision. Such contributions shall not constitute a
liability of such member bank except as herein provided.

6. If it shall appear by certificate of the superintendent of
financial services filed in his office, that any member bank to which
the trustee with the approval of the superintendent has made any loan or
advance, or to the surplus fund of which it has made a contribution, or
from which the trustee has purchased any asset at a price in excess of
the market value thereof, would but for such loan, advance, contribution
or purchase be in such condition that the superintendent might take
possession of the business and property of the same pursuant to law, or
that any such member bank to which the trustee with the approval of the
superintendent has made any loan or advance, or to the surplus fund of
which it has made a contribution, or from which the trustee has
purchased any asset at a price in excess of the market value thereof, or
the deposits in which have been insured by the fund in whole or in part
shall have committed such an act or is in such condition that the
superintendent might take possession of the business and property of the
same pursuant to law, the trustee shall have the right if it so elects,
and in such case the superintendent, on such conditions and subject to
such rules and regulations as he shall prescribe, shall permit the
trustee to take possession and control forthwith of the property and
business of such bank and operate and/or liquidate the same. The trustee
may, while carrying on such business, pay to such bank out of the moneys
in or available to the fund such sums as the agreement may authorize as
the trustee deems necessary for the protection of the bank's depositors.

7. At any time after the trustee has taken over the control,
possession and operation of any savings bank, as provided in subdivision
six hereof, it may, with the approval of the superintendent, turn back
the control, possession and operation thereof to such bank which may
continue or resume business, provided the moneys advanced from the fund
have been repaid or satisfactory arrangements made for the repayment
thereof and the superintendent has certified such bank to be in a safe
and sound condition or upon such other conditions authorized in the
agreement as may seem proper to the trustee.

8. The trustee, with the approval of the superintendent of financial
services may at any time after it has taken over the control, possession
and operation of any bank under subdivision six hereof discontinue the
business of such bank and proceed to liquidate its affairs. The trustee
may use the assets in the fund to pay to the depositors of any such
savings bank out of moneys in or available to the fund the excess, if
any, or such portion thereof as the agreement may provide, of the full
amount of their respective deposits over the dividends received therefor
on such liquidation.

9. To carry out the provisions aforesaid, the trustee shall have and
may exercise all the rights, powers, privileges and franchises of any
savings bank taken over by it, and at any time, with the approval of the
superintendent of financial services, to suspend the authority of the
trustees of any savings bank and exercise the powers and duties of such
trustees, and in addition to the foregoing, in the event it shall
operate and/or liquidate any such savings bank it shall have and may
exercise all of the rights and powers which the superintendent of
financial services would have pursuant to law in connection with the
operation and/or liquidation of such bank and be subject to the same
duties and supervision. The trustee, or any duly authorized agent of the
trustee, in connection with the operation and/or liquidation of any such
bank may execute, acknowledge and deliver in the name of such bank, and
under its seal, or may authorize any officer or officers of any such
bank to execute, acknowledge and deliver in the name of such bank and
under its seal any instrument affecting or relating to the property,
business or affairs of such bank, and in the event any such officer is
so authorized by the trustee, such authorization shall be deemed the
authorization of the board of trustees of such bank and he may swear or
affirm the usual certificate of acknowledgment to the effect that he
executed the same and such seal was affixed by the authority of the
board of trustees thereof. Any instrument executed in any manner
provided herein shall be valid and effectual for all purposes.

10. To borrow money for the purpose of the fund and pledge any assets
in the fund as security for such loans, and in connection therewith may
rehypothecate any securities or collateral pledged to it by any savings
bank.

11. To collect, or enforce by legal proceedings if necessary, the
contributions for which each member bank is liable pursuant to the
provisions of the agreement, or any debt or obligation due to the fund
or mortgage or lien held by the fund.