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This entry was published on 2014-09-22
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Representation by savings and loan association of insurance on accounts
General Business (GBS) CHAPTER 20, ARTICLE 26
§ 396-a. Representation by savings and loan association of insurance
on accounts. 1. No savings and loan association, building and loan
association, cooperative bank or homestead association organized in this
or any other state, other than one whose accounts are insured by an
agency of the United States and which is specifically named in the
representation, shall in or from this state, or to any person in this
state, make any representation, oral or written, that any of its shares,
certificates or accounts are insured or guaranteed unless such
representation also includes: (a) the name and address of the insurer or
guarantor, (b) the name of the state or country where the insurer or
guarantor is incorporated or organized, (c) the phrase "an agency of
(name of state)", if such be the case, or the phrase "a commercial
company", if such be the case, and (d) the maximum amount of the
insurance or guaranty applicable to each of its accounts. If the
representation of insurance is made in writing, the statements specified
in (a), (b), (c) and (d) above shall be set forth in not less than
ten-point type.

2. Whenever the superintendent of financial services shall report a
violation of this section to the attorney-general or the
attorney-general shall believe from evidence satisfactory to him that a
violation of this section has occurred, the attorney-general may bring
an action in the name of the superintendent or in behalf of the people
of the state, as the case may be, to enjoin further violation. In the
action preliminary relief may be granted as under article sixty-three of
the civil practice law and rules.

3. Before seeking to enjoin a violation of this section, the
attorney-general shall give to the person, association, corporation or
other organization against whom a proceeding is contemplated appropriate
notice and an opportunity to show orally and in writing why proceedings
should not be instituted against him or it.

4. Nothing herein contained shall be construed to limit or restrict
the application of article twenty-three-A of the general business law to
savings and loan associations, building and loan associations,
cooperative banks or homestead associations.

5. A violation of subdivision one shall constitute a misdemeanor.