N.Y. Banking Law § 254: Examinations by trustees

§ 254. Examinations by trustees. 1. Once in each calendar year the

trustees of each savings bank by a committee of not less than three of

their number, none of whom shall be an officer or salaried employee of,

or an attorney who receives any fee, compensation or any other form of

emolument for legal services rendered to, such savings bank, shall fully

examine the records and affairs of such savings bank, for the purpose of

determining its true financial condition. Such examination shall be made

as of a date not less than six months after the date of the previous

such examination. In the conduct of each such examination inquiry shall

be made into the policies of management for the purpose of determining

whether such policies are sound and consistent with the requirements of

law, and into such other matters as shall be necessary to enable the

trustees to determine whether adequate protection is afforded to

depositors. The trustees may employ such assistants as they deem

necessary in making the examination prescribed by this section, other

than an attorney who receives any fee, compensation or any other form of

emolument for legal services rendered to such savings bank.

2. A savings bank's compliance with section one hundred twelve of the

Federal Deposit Insurance Corporation Act of 1991, as implemented by the

provisions of part three hundred sixty-three of the rules and

regulations of the Federal Deposit Insurance Corporation, as they may be

amended from time to time, shall be deemed to satisfy the examination

requirement of this section.

3. A report of each such examination, in such form as may be

prescribed by the superintendent, sworn to by the trustees making the

same shall, within thirty days after the completion of such examination,

be presented to the board of trustees of such savings bank at a regular

meeting and thereafter filed with the records of such savings bank.

Within ten days after the presentation of such report to the board of

trustees a duplicate thereof shall be filed in the office of the

superintendent, together with a certificate that such report was

presented to the board of trustees, in the form prescribed by the

superintendent.