N.Y. Banking Law § 174: Restrictions on purchases of, and loans on real estate

§ 174. Restrictions on purchases of, and loans on real estate. 1. No

private banker shall purchase with funds held by him as private banker

any real estate except a plot upon which there is or may be erected a

building suitable for the convenient transaction of his business; nor

make a loan of such funds upon the security of real estate, if such real

estate is unimproved, in excess of two-thirds, and if such real estate

is improved by a building or buildings or is to be improved by a

building or buildings in the process of construction, the major portion

of which building or buildings is used, or in the case of a building

under construction is to be used, for residential, business,

manufacturing or agricultural purposes, in excess of three-fourths, of

the appraised value of such real estate, or in an amount which when

added to the amount unpaid upon prior mortgages, liens and encumbrances

upon such real estate exceeds the foregoing respective proportions of

such appraised value, or if such real estate is subject to a prior

mortgage, lien or encumbrance and the amount unpaid upon such prior

mortgage, lien or encumbrance or the aggregate amount unpaid upon all

prior mortgages, liens and encumbrances exceeds ten per centum of the

permanent capital of such private banker.

2. All real estate acquired by a private banker in satisfaction or

reduction of loans of funds held by him as a private banker, shall be

sold within five years from the date of its acquisition, unless the

superintendent upon application shall extend the time within which such

sale shall be made.