New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 63 - Investments In Savings Banks Trust Company And Other Savings Banks Service Agencies
Section 63.4 - Investments in the capital notes or debentures of a service agency
Universal Citation: 3 NY Comp Codes Rules and Regs ยง 63.4
Current through Register Vol. 46, No. 12, March 20, 2024
(a) No savings bank shall invest in the capital notes or debentures of a service agency if the aggregate amount of its investment in such notes and debentures, including the proposed investment, would exceed the greater of two percent of the total assets of such savings bank as of the date of such investment or $20,000.
(b) Nor shall any savings bank invest in such capital notes or debentures unless:
(1) such service agency shall have filed with
the superintendent its written agreement (and shall have complied with the
terms thereof) subjecting itself to the supervision of the Banking Department
submitting itself to periodic examinations by the Banking Department at such
times and in such manner as the superintendent shall provide, and agreeing to
pay the charges of such examinations assessed against it by the superintendent
in the same manner as if it were a banking organization organized under the
laws of New York; and
(2) such
service agency restricts the investment of its funds to:
(i) investments which savings banks may make
under the laws of this State excluding, except as permitted by subparagraph
(ii) of this paragraph, those investments permitted solely by virtue of Banking
Law, section
235(21);
(ii) investments in the stock of certain
corporations and in certain other entities, either directly or through
investment in the securities of any one or more wholly owned subsidiary
corporations, which a service agency may make under section
62.3
of Part 62 (relating to housing and urban development projects), subject to the
limitations thereof;
(iii) bonds
and mortgages and notes and mortgages or part interests therein, on improved
and unencumbered real property, including leasehold estates, located in any
other state of the United States, the District of Columbia or the Commonwealth
of Puerto Rico, which would qualify as investments for savings banks under the
laws of this State except for restrictions governing the location of the
property or the location of the principal office of the holder of any part
interest;
(iv) investments in plots
and buildings and related facilities to be used by a savings bank of New York
State as a branch office, as may be or have been from time to time approved by
the superintendent, either directly or through the stock and obligations of one
or more wholly owned subsidiary corporations; and
(v) such other investments as the
superintendent with the authorization of the Banking Board shall approve in
writing.
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