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SECTION 96
General powers
Banking (BNK) CHAPTER 2, ARTICLE 3
§ 96. General powers. Every bank and every trust company shall,
subject to the restrictions and limitations contained in this chapter,
have the following powers:

1. To discount, purchase and negotiate promissory notes, drafts, bills
of exchange, other evidences of debt, and obligations in writing to pay
in installments or otherwise all or part of the price of personal
property or that of the performance of services; purchase accounts
receivable, whether or not they are obligations in writing; lend money
on real or personal security; borrow money and secure such borrowings by
pledging assets; buy and sell exchange, coin and bullion; and receive
deposits of moneys, securities or other personal property upon such
terms as the bank or trust company shall prescribe; and exercise all
such incidental powers as shall be necessary to carry on the business of
banking. For purposes of this subdivision, the term "accounts
receivable" shall not include the right to receive payment for property
to be sold at a future date or services to be rendered at a future date.

2. To accept for payment at a future date, drafts drawn upon it by its
customers and to issue letters of credit authorizing the holders thereof
to draw upon it or its correspondents at sight or on time.

3. (a) To receive upon deposit for safe-keeping for hire upon terms
and conditions to be prescribed by the bank or trust company, money,
securities, papers of any kind and any other personal property;

(b) To engage in the safe deposit business by renting vaults, safe
deposit boxes and other receptacles upon premises occupied by the bank
or trust company, upon such terms and conditions as may be prescribed by
the bank or trust company.

4. To issue by its board of directors capital notes or debentures,
when so specifically authorized by the superintendent, and, when so
specifically authorized by the superintendent, to receive in payment
therefor, in whole or in part, mortgages, interests therein or other
property and to retain, unrecorded or unregistered, assignments or
conveyances of such mortgages, interests therein or other property,
provided that the superintendent shall not approve the retention of any
assignment of mortgage or interest therein or any conveyance of other
property, which may be recorded or registered, without record or
registration thereof, except where such mortgage, interest therein or
other property is assigned or conveyed by a corporation organized under
the banking law or by a corporation wholly owned by not less than twenty
savings banks of this state.

5. To become a member of a federal reserve bank, and to have and
exercise all powers, not in conflict with the laws of this state, which
are conferred upon any such member by the federal reserve act. Such bank
or trust company and its directors, officers and stockholders shall
continue to be subject, however, to all liabilities and duties imposed
upon them by any law of this state and to all the provisions of this
chapter relating to banks and trust companies.

6. To assume and discharge such obligations to Federal Deposit
Insurance Corporation as may be necessary or required for the purpose of
maintaining deposit insurance in such corporation.

7. (a) To act as financial agent of the United States Government and
as depositary of public money of the United States (including, without
being limited to, revenues and funds of the United States, and any funds
the deposit of which is subject to the control or regulation of the
United States or any of its officers, agents, or employees, and Postal
Savings funds); and to perform all such reasonable duties as depositary
of such public money and as financial agent of the United States
Government as may be required of it; and to pledge assets or furnish
other security, satisfactory in form and amount to the Secretary of the
Treasury of the United States, for the safekeeping and prompt payment of
such public money deposited with it and for the faithful performance of
its duties as financial agent of the United States Government.

(b) To pledge assets or furnish other security, satisfactory in form
and amount to judges of courts of bankruptcy, for the repayment of
deposits of the money of estates under the national bankruptcy act.

(c) To pledge assets or furnish other security, satisfactory in form
and amount to the depositor, for the repayment of moneys held in the
name of any state (which term shall include every territory of the
United States, the District of Columbia, and the Commonwealth of Puerto
Rico), or of any foreign nation, or of any Indian nation or tribe, or of
any political subdivision or instrumentality or authority of any of
them, when required to be secured by applicable law, decree, regulation
or resolution, and to pledge assets or furnish other security for the
repayment of moneys held as fiduciary, or in the name of a fiduciary, of
any trust created by any such state, foreign nation, Indian nation or
tribe, political subdivision, instrumentality or authority as required
by the terms of such trust; provided, however, that before any pledge or
security is made or furnished to any depositor other than this state or
a political subdivision, instrumentality or authority of this state, the
bank or trust company shall obtain a certified or official copy of such
law, decree, regulation, or resolution or trust requiring such pledge or
other security, and an opinion of counsel that such pledge or security
is required by such law, decree, regulation, or resolution or by the
terms of such trust.

9. To execute and deliver such guaranties as may be incidental to
carrying on the business of a bank or trust company.

10. To exercise, subject to such regulations as may be issued from
time to time by the superintendent, through any foreign branch office
(other than one opened or occupied in another state of the United
States, the District of Columbia, any territory of the United States,
Guam, American Samoa, the United States Virgin Islands, and the Northern
Mariana Islands) opened and occupied with the approval of the
superintendent as provided in section one hundred five of this article,
such further powers as may be usual in connection with the transaction
of the business of banking in the place where such foreign branch office
shall transact business, provided that no such foreign branch office
shall engage in the general business of producing, distributing, buying
or selling goods, wares, or merchandise, nor, except with respect to
securities issued by any foreign nation or any political subdivision,
agency or instrumentality thereof, engage or participate, directly or
indirectly, in the business of underwriting, selling or distributing
securities.

11. To designate one or more agents (except its employees) to issue or
sell its travelers checks or money orders at locations other than its
principal office or branch offices authorized pursuant to section one
hundred five of this chapter, subject to such rules and regulations as
the superintendent may make from time to time.

12. To acquire and lease personal property, or to acquire personal
property subject to an existing lease together with the lessor's
interest therein, subject to such limitations and conditions as the
superintendent of financial services may from time to time prescribe by
general regulation.

13. To reserve or order transportation, travel accommodations or other
travel services.

14. To arrange, purchase or sell loans secured by liens on interests
in real estate, subject to such terms, conditions and limitations as may
be prescribed by the superintendent by regulation.

15. To engage in a "savings promotion" in accordance with section
nine-v of this chapter and subject to any regulations promulgated by the
superintendent. The superintendent shall consult with the state gaming
commission before proposing any such regulations or any amendments
thereto. Such regulations shall ensure that:

a. no participant in a savings promotion is charged any fee that would
constitute, directly or indirectly, consideration for participation in
such savings promotion; and

b. no participant in a savings promotion foregoes, directly or
indirectly, any interest that would constitute consideration for
participation in such savings promotion.

* 16. In addition to such authority as is contained in section
ninety-eight of this chapter and notwithstanding any limitations set
forth therein, to purchase, lease, exchange or otherwise acquire real
property, improved or unimproved, or any interest therein, to erect,
construct, rebuild, enlarge, alter, improve, maintain, manage and
operate buildings or other improvements of any description thereon, to
sell, lease, sublet, mortgage, exchange or otherwise dispose of same and
execute, perform and carry out contracts for construction, alteration,
improvement, maintenance, management or repair thereof, to make loans in
connection therewith, as owner, co-owner or otherwise, subject to such
specific or general approvals and limitations as shall be required by
regulations promulgated from time to time by the superintendent of
financial services pursuant to this subdivision; provided, however, that
no activity specified herein shall be undertaken pursuant to the
authority contained in this subdivision until the superintendent of
financial services shall have issued regulations specifying the
limitations and requirements which shall be imposed in connection with
the investments and activities referred to herein, including, without
limitation, the consideration of such bank or trust company's record in
meeting the credit needs of local communities within the meaning of
section twenty-eight-b of this chapter.

* NB Expired June 30, 1988