N.Y. Banking Law § 382-b: Power to issue certain obligations

§ 382-b. Power to issue certain obligations. 1. In addition to all

other powers granted to it by other provisions of law, a savings and

loan association may issue such notes, bonds, debentures, or other

obligations or other securities as the superintendent may authorize.

2. Subject to such regulations and restrictions as the superintendent

of financial services finds to be necessary and proper and

notwithstanding any other provisions of law, a savings and loan

association may issue notes, bonds, debentures, or other obligations or

other securities subordinated to deposits in such savings and loan

association; provided that, unless the superintendent has given prior

approval otherwise, the aggregate principal amount thereof at the time

of issuance shall not exceed twenty-five per cent of the net worth of

such savings and loan association, exclusive of all such notes, bonds,

debentures, or other obligations or other securities. The proceeds or

other consideration derived by a savings and loan association from the

issuance pursuant to this subdivision of any such notes, bonds,

debentures, or other obligations or other securities shall be deemed for

purposes of this chapter to constitute a part of the net worth of such

savings and loan association. For the purposes of this article, the term

"net worth" shall mean the excess of assets at book value, less

allocated reserves, over known liabilities, including deposit

liabilities.