N.Y. Banking Law § 385: Surplus account

§ 385. Surplus account. Every savings and loan association shall

accumulate and maintain a surplus account as provided in section three

hundred eighty-seven of this article. Such surplus account up to ten per

centum of the association's capital shall not be available for any

purpose, except with the prior written approval of the superintendent;

but any such association may: (a) charge against such surplus account

any losses or expenses without such approval only in the event such

association has no undivided profits against which such losses or

expenses may be charged or (b) may, with the prior written approval of

the superintendent, transfer any part of such surplus account to any

other account for any purpose. Such account may be created or increased

by contributions and by transfers from undivided profits or from net

profits.