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This entry was published on 2014-09-22
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SECTION 307
Membership
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 7
§ 307. Membership. 1. The members of such corporation shall consist of
such banking organizations, insurance and surety companies, as may make
application for membership in such corporation, and membership shall
become effective upon the acceptance of such applications by the
temporary board of directors or the permanent board of directors, as the
case may be. Each member shall lend funds to the corporation as and when
called upon by it to do so, pursuant to subdivision two of this section,
but the total amount on loan by any member at any one time shall not
exceed the following limits to be determined as of the date it became a
member, and such amount shall thereafter be readjusted annually in the
event of any change in the base of the loan limit of such member:
commercial banks, industrial banks and trust companies, one per centum
of capital and surplus; private bankers, one per centum of capital;
savings banks, one per centum of surplus fund; savings and loan
associations, one per centum of surplus; stock insurance companies, one
per centum of capital and surplus; surety and casualty companies, one
per centum of capital and surplus; mutual insurance companies, one per
centum of guaranty funds or of surplus, whichever is applicable; and
comparable limits for other banking, lending and insurance
organizations, as established by the board of directors; provided,
however, that the total amount on loan by any member at any one time
shall not exceed two hundred fifty thousand dollars; provided, however,
that in the case of banking organizations and in the case of insurance
and surety companies the superintendent of financial services may
authorize a member to lend to the corporation an amount in excess of two
hundred fifty thousand dollars. All loan limits shall be established at
the thousand dollar nearest to the amount computed on an actual basis.
All calls of funds which members are committed to lend to such
corporation shall be prorated by such corporation among the members in
the same proportion that the maximum loan limit of each bears to the
aggregate loan limits of all members of such corporation. Upon six
months' prior written notice to the board of directors, a member of such
corporation may withdraw from membership, effective at the end of such
six-month period and, after the effective date of such withdrawal, such
member shall be free of obligations hereunder except those accrued or
committed by such corporation prior to such effective date of
withdrawal. Notwithstanding the provisions of any other law, general or
special, the notes or other interest-bearing obligations of such
corporation, issued in accordance with and by virtue of this article and
the by-laws of such corporation, shall be legal investments for the
banking, insurance and surety organizations who become members of such
corporations, up to but in no event exceeding the loan limits
established herein.

2. The board of directors of the corporation may, on thirty days'
written notice to its members, make a call of all or any part of the
funds which such members are committed to lend pursuant to subdivision
one of this section. The debentures or evidences of debt of the
corporation issued pursuant to the provisions of this article or by-laws
may contain such terms and provisions as the board of directors of the
corporation shall deem advisable, including, but not limited to
provisions concerning interest rates, maturities, sinking funds,
redemptions and refundings.