New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 77 - Investments In Commercial, Corporate And Business Loans By Savings Banks And Savings And Loan Associations; Leasing Transactions; Letters Of Credit
Section 77.2 - Definition

Universal Citation: 3 NY Comp Codes Rules and Regs ยง 77.2

Current through Register Vol. 46, No. 12, March 20, 2024

For purposes of this Part, the term commercial, corporate or business loan shall mean any loan, represented by a promissory note, or other evidence of indebtedness, not otherwise authorized or permitted by any other provision of the Banking Law, made by a savings bank or a savings and loan association:

(a) to a partnership, corporation or unincorporated association; or

(b) to a natural person for purposes other than personal, family or household use;

provided that any loan that would otherwise qualify as a commercial, corporate or business loan but for the fact that such loan also qualifies as an investment under section 235(31) or 379(7) of the Banking Law may, at the election of the savings bank or savings and loan association, be treated as a commercial, corporate or business loan for purposes of this Part. In determining whether a loan to a natural person is a commercial loan, a savings bank or savings and loan association may rely on the borrower's statement of purpose if accepted in good faith.

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