N.Y. Banking Law § 243: Surplus fund

§ 243. Surplus fund. 1. Every savings bank shall create a fund to be

known as a surplus fund. Such fund may be created or increased by

contributions made by the incorporators as provided in this article or

by transfers from undivided profits or by transfers from earnings as

required in this article. Such fund up to ten per centum of the amount

due depositors shall not be available for any purpose other than that

specified in subdivision two of this section, except with the prior

written approval of the superintendent, provided that such fund shall be

available without such approval for the purpose of paying expenses or

absorbing losses only in the event such savings bank has no undivided

profits against which such expenses or losses may be charged.

2. Contributions of incorporators or trustees to the surplus fund may

be repaid pro rata in such amounts as will not reduce the surplus fund

below five per centum of the amount due depositors, provided the written

approval of the superintendent shall be required before any repayments

may be made that will reduce the surplus fund below the amount created

at the time of incorporation of the savings bank. In case of the

liquidation of the savings bank before the contributions to the surplus

fund have been repaid, any portion of such contributions not needed for

the payment of the expenses of liquidation and the payment of depositors

and creditors in full may be repaid to the contributors pro rata.

3. Contributions heretofore made by incorporators or trustees of any

savings bank to pay its expenses or to maintain its solvency, under an

agreement with the superintendent that such contributions may be

returned whenever such return will not affect the solvency of such

savings bank or render it unsafe to continue business, may be returned

in accordance with the provisions of such agreement.

4. The aggregate of the guaranty fund and expense fund of every

savings bank at the time this act takes effect shall constitute the

surplus fund at that date and shall thereafter be subject to all the

provisions of this article relating to surplus fund.