N.Y. Banking Law § 143: Limitations on directors, officers and employees

§ 143. Limitations on directors, officers and employees.

1. Every director of a bank holding company who is contingently

obligated on any loan or other extension of credit made by a banking

subsidiary of the bank holding company of which he is a member of the

board of directors to any other individual, partnership, unincorporated

association or corporation, shall file a statement of his financial

condition with such bank holding company at least once in each year and

at such other times as the superintendent may require. This subdivision

two shall not apply with respect to directors whose obligations are

secured by collateral having an ascertained market value of at least

fifteen per centum more than the amount of such obligations.

2. (a) No executive officer of a bank holding company may be an

executive officer or director of another bank holding company or of a

bank or trust company, savings bank, or savings and loan association, or

of a national bank, federal savings bank or federal savings association,

the principal office of which is located in this state, or of a foreign

banking corporation maintaining a branch in this state, unless

permission therefor has been granted by the superintendent of financial

services pursuant to the provisions of paragraph (b) of this

subdivision, except that an executive officer of a bank holding company

may be (i) an executive officer and (ii) a director of one or more

banking institutions or bank holding companies which are subsidiaries of

such bank holding company.

(b) The superintendent shall have the power to determine by regulation

who shall be considered, under the provisions of this subdivision, to be

an executive officer, and by regulation to grant permission to an

executive officer of a bank holding company to be at the same time an

executive officer, director or trustee or both an executive officer and

a director or a trustee of another bank holding company or of a bank or

trust company, savings bank, savings and loan association, national bank

located in this state, federal savings and loan association located in

this state or foreign banking corporation maintaining a branch in this

state. Such permission may be granted only if in the judgment of the

superintendent such service by the executive officer will be consistent

with the policy of the state of New York as declared in section ten of

this chapter. The superintendent shall have the power to revoke such

permission whenever the superintendent finds, after a reasonable notice

and an opportunity to be heard, that the public interest requires such

revocation.

(c) For the purposes of this subdivision, the terms "subsidiary",

"banking institution" and "bank holding company" shall each be given the

same meaning as is contained in their respective definition in section

one hundred forty-one of this article, except that the definition of the

term "banking institution" is modified to include national bank, federal

savings bank or federal savings association, the principal office of

which institution is located in this state, and a foreign banking

corporation maintaining a branch in this state.

(d) All other restrictions and limitations imposed by this chapter on

executive officers and directors of bank holding companies shall

continue in effect.