New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 68 - Investments In Savings And Loan Service Agencies
Section 68.4 - Investments in the capital notes or debentures of a service agency
Universal Citation: 3 NY Comp Codes Rules and Regs ยง 68.4
Current through Register Vol. 46, No. 12, March 20, 2024
(a) No savings and loan association shall invest in the capital notes or debentures of a service agency if:
(1) 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 and
loan association as of the date of such investment or $10,000; or
(2) the aggregate amount of capital notes and
debentures of such service agency then issued and outstanding, including the
notes and debentures proposed to be purchased by such savings and loan
association would exceed an amount equal to 12 times the issued and outstanding
stock, surplus and undivided profits of such service agency.
(b) Nor shall any savings and loan association 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 and loan
associations may make under the laws of this State; provided, however, that
such service agency may make investments which would be permitted a savings and
loan association under section
379(7) of the Banking Law,
subject to those limitations applicable to such investments in the case of
savings banks, except that the limitations contained in section 235(31)(a) and
(b) which restrict certain individual investments to one per centum of the
assets of the savings bank or 10 per centum of its net worth, whichever is
less, and the aggregate amount of such investments to two per centum of its
assets or 20 per centum of its net worth, whichever is less, shall be changed
to establish a limitation of an aggregate amount of not to exceed 30 per centum
of the service agency's net worth;
(ii) investments in the stock of certain
corporations which a service agency may make under section
62.3
of this Title (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 New York State or any other State of the United States, the District of
Columbia or the Commonwealth of Puerto Rico, which would qualify as investments
for savings and loan associations under the laws of this State, except for
restrictions governing the locations of the property or the location of the
principal office of the holder or any part interest; and
(iv) such other investments as the
superintendent with the authorization of the Banking Board shall approve in
writing.
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