N.Y. Banking Law § 378-b: Club accounts

§ 378-b. Club accounts. 1. No contract under which a savings and loan

association agrees to repay shares of fixed sums made at regular

intervals at a given time with all interest or dividends credited

thereon, or to repay said shares when, together with interest or

dividends credited thereon, they shall equal a specified sum, may

provide for any forfeiture of the sums deposited in the event of the

discontinuance of the regular payments. Interest or dividends on club

accounts, if offered, must be credited at least quarterly and may not be

forfeited once credited, in the event of the discontinuance of regular

payments.

2. Any savings and loan association which provides for deposits in

club accounts shall, in all advertising announcements or brochures

pertaining to such accounts, state whether or not interest or dividends

are paid thereon and, if interest or dividends are paid, shall state the

rate or form of interest or dividends so paid in accordance with any

rules and regulations that may be prescribed by the superintendent.