New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter III - SUPERINTENDENT'S REGULATIONS
Subchapter A - BANKING ORGANIZATIONS
Part 305 - Composition Of Boards Of Directors Of Banks And Trust Companies
Section 305.1 - Explanatory note

Section 7001(4) of the Banking Law authorizes the superintendent to adopt a regulation which establishes the amount of capital stock, surplus and undivided profits above which a bank or trust company may not have more than one third of its directors as active officers or employees. Any officer or employee serving as a director at the time this regulation takes effect or at the time the total capital stock, surplus and undivided profit of an institution rises above the threshold contained herewith, may continue to serve as a director until the expiration of the term for which such person was elected.