N.Y. Banking Law § 237: Deposits with savings banks; restrictions

§ 237. Deposits with savings banks; restrictions. 1. No savings bank

shall accept any deposit for credit to any executor, administrator,

trustee, committee, conservator or guardian, named in a will or

appointed by a court of competent jurisdiction, unless a certified copy

of the will, order or decree of the court authorizing such deposits or

appointing such executor, administrator, trustee, committee, conservator

or guardian, or a certificate of such appointment is filed with the

savings bank.

2. No savings bank shall accept any deposit for credit to any

municipal corporation.

3. A savings bank may limit the aggregate amount which it will receive

on deposit; may, in its discretion, refuse to accept a deposit; and may

at any time return all or any part of any deposit other than a deposit

held pursuant to subdivision one-a of section two hundred thirty-four of

this chapter.

4. Notwithstanding any inconsistent provision of law, a savings bank

may accept deposits of moneys paid under and as security for the

performance of any lease or leases, or to be applied to payments under

such lease or leases when due, although the person depositing such

moneys is held accountable therefor as a trustee of trust funds. Moneys

received from or held for persons under more than one lease may be

deposited in one or more accounts.

Notwithstanding any inconsistent provision of law, the word "person"

as used in this subdivision four shall include an individual, municipal

corporation, partnership, corporation, association or any other

organization operated for profit.

5. Nothing contained in this section shall require a savings bank to

return any deposit lawfully held by it at the time this act takes

effect.

6. Nothing contained in this section or in this chapter shall be

construed to prevent a savings bank from accepting a deposit or deposits

in any amount in any account in the name of or to the credit of any bona

fide charitable or religious association, corporation or organization.

7. Subject to any regulations and restrictions prescribed by the

superintendent of financial services, a savings bank shall have power to

act as trustee under a retirement plan established pursuant to the

provisions of the act of congress entitled "Self-employed Individuals

Tax Retirement Act of 1962", and provisions of law contained therein as

amended, provided that the provisions of such retirement plan require

the funds of such trust to be invested exclusively in deposits in

savings banks. In the event that any such retirement plan which, in the

judgment of the savings bank, constituted a qualified plan under the

provisions of said Self-employed Individuals Tax Retirement Act of 1962,

and provisions of law contained therein as amended, and the regulations

promulgated thereunder at the time the trust was established and

accepted by the savings bank is subsequently determined not to be such a

qualified plan or subsequently ceases to be such a qualified plan, in

whole or in part, the savings bank may, nevertheless, continue to act as

trustee of any deposits theretofore made under such plan and to dispose

of the same in accordance with the directions of the depositor and the

beneficiaries thereof. No savings bank, in respect to deposits made

under this subdivision, shall be bound by any provision of this chapter

restricting or limiting the amount of deposits which a savings bank may

accept, or be required to segregate such deposits from other deposits of

such savings banks, provided, however, that a savings bank shall keep

appropriate records showing in proper detail all transactions engaged in

under the authority of this subdivision.

8. Subject to any regulations and restrictions prescribed by the

superintendent of financial services, a savings bank shall have power to

act as trustee of an individual retirement account established pursuant

to the provisions of the act of congress entitled "Employee Retirement

Income Security Act of 1974", provided that the provisions of the

written governing instrument creating the trust require the funds of

such trust to be invested exclusively in deposits in savings banks. In

the event that any such individual retirement account, which in the

judgment of the savings bank, constituted a qualified individual

retirement account under the provisions of said Employee Retirement

Income Security Act of 1974 and the regulations promulgated thereunder

at the time the trust was established and accepted by the savings bank

is subsequently determined not to be such a qualified individual

retirement account or subsequently ceases to be such a qualified

individual retirement account, in whole or in part, the savings bank

may, nevertheless, continue to act as trustee of any deposits

theretofore made under such individual retirement account and to dispose

of the same in accordance with the directions of the depositor and the

beneficiaries thereof. No savings bank, in respect to deposits made

under this subdivision, shall be bound by any provision of this chapter

restricting or limiting the amount of deposits which a savings bank may

accept, or be required to segregate such deposits from other deposits of

such savings banks, provided, however, that a savings bank shall keep

appropriate records showing in proper detail all transactions engaged in

under the authority of this subdivision.