N.Y. Banking Law § 236: Deposits by savings banks with other banking corporations and private bankers; restrictions

§ 236. Deposits by savings banks with other banking corporations and

private bankers; restrictions. 1. Except for investments made pursuant

to subdivision twelve-a of section two hundred thirty-five of this

chapter, no savings bank shall deposit any of its funds with any other

banking corporation or private banker unless such corporation or private

banker has been designated as a depositary by vote of a majority of all

the trustees of the savings bank, exclusive of any trustee who is an

officer, partner, director or trustee of the depositary so designated.

2. The amount deposited by any savings bank in any depositary,

including investments made pursuant to subdivisions twelve-a and

twelve-b of section two hundred thirty-five of this chapter, shall not

exceed twenty-five per centum of the net worth as shown by the last

published statement of such depositary, if a corporation, or twenty-five

per centum of the permanent capital and surplus as shown by the last

published statement of such depositary, if a private banker, or five per

centum of the aggregate amount credited to the depositors of such

savings bank, whichever is smaller.