N.Y. Banking Law § 142: Limitations on, and regulation of, bank holding companies

§ 142. Limitations on, and regulation of, bank holding companies. 1.

It shall be unlawful for any person knowingly to borrow, directly or

indirectly, any money or property for the purpose of enabling such

person to pay for or to hold shares of stock of a bank holding company

from any subsidiary of such bank holding company, unless such borrowing

is made upon security having an ascertained market value of at least

fifteen per centum more than the amount thereof. Any person knowingly

violating the provisions of this subdivision shall, for each offense,

forfeit to the people of the state twice the amount of such borrowing.

2. Except in conformity with such rules and regulations as may be

promulgated by the superintendent, it shall be unlawful for any

executive officer or director of a bank holding company to borrow any

sum of money from any subsidiary of such bank holding company. Every

executive officer or director of such bank holding company violating the

provisions of this subdivision shall, for each offense, forfeit to the

people of the state twice the amount of such borrowing or borrowings.