N.Y. Banking Law § 420-a: State savings and loan insurance fund

§ 420-a. State savings and loan insurance fund. 1. There is hereby

created the "state savings and loan insurance fund". The fund shall be a

corporate governmental agency constituting a public benefit corporation.

It shall have the powers and privileges of a corporation, and under its

corporate name all of its business shall be transacted, all funds

invested, all warrants for money drawn and payments made, and all cash

and securities and other personal property shall be held.

2. The fund shall be administered by six trustees, four of whom shall

be appointed by the governor with the advice and consent of the senate,

one shall be elected by the insured members and one shall be elected by

the board of directors of the Savings and Loan Bank of the State of New

York from their own number. The trustees of the fund first appointed by

the governor shall serve for terms ending December thirty-first in

nineteen hundred sixty-eight, nineteen hundred sixty-nine, nineteen

hundred seventy and nineteen hundred seventy-one, respectively. Persons

appointed for full terms as their successors shall serve for four years

each commencing as of January first next following the year in which the

term of his predecessor expired. The trustee elected by the insured

members shall serve for a term ending on December thirty-first, nineteen

hundred sixty-nine and the trustee elected by the board of directors of

the savings and loan bank of the state of New York shall serve for a

term ending on December thirty-first, nineteen hundred seventy-one.

Persons elected for full terms as their successors shall serve for four

years each commencing as of January first next following the year in

which the term of his predecessor expired. In the event of a vacancy

occurring in the office of an appointed trustee by death, resignation or

otherwise, the governor shall appoint a successor in the same manner as

an original appointment to serve for the balance of the unexpired term.

If, for the previously stated reasons, a vacancy occurs in the office of

an elected trustee, said vacancy shall be filled for the unexpired term

by special election.

3. The trustees of the fund shall serve without salary, but each

trustee shall be entitled to reimbursement for his actual and necessary

expenses incurred in the performance of his official duties and to a fee

of one hundred dollars per day when rendering service as such member,

provided that the aggregate amount of such fees payable to any one

trustee in any one fiscal year shall not exceed the sum of five thousand

dollars.

4. The trustees of the fund may engage in private employment, or in a

profession or business, subject to the limitations contained in sections

seventy-three and seventy-four of the public officers law. The fund

shall, for the purposes of such sections, be a "state agency", and the

trustees thereof shall be "officers" of the agency for the purposes of

said sections.

5. Notwithstanding any inconsistent provisions of law, general,

special or local, no officer or employee of the state, or of any civil

division thereof, shall be deemed to have forfeited or shall forfeit his

office or employment by reason of his acceptance of appointment as a

trustee, officer or agent of the fund; provided, however, that a

trustee, officer or agent who holds such other public office or

employment shall receive no additional compensation, fee or allowance

for services rendered pursuant to this article, but shall be entitled to

reimbursement for his actual and necessary expenses incurred in the

performance of such services.

6. The governor may remove any trustee for inefficiency, neglect of

duty or misconduct in office after giving him a copy of the charges

against him and an opportunity to be heard, in person or by counsel, in

his defense, upon not less than ten days notice. If any trustee shall be

removed, the governor shall file with the secretary of state a complete

statement of charges made against the trustee, and his findings thereon,

together with a complete record of the proceedings.

7. The chairman of the board of trustees shall be designated by the

governor. He shall preside over all meetings of the trustees and shall

have such other duties as the trustees may direct. A vice-chairman who

shall preside over all meetings of the fund in the absence of the

chairman and who shall have such other duties as the trustees may direct

may be designated from time to time by the trustees from among the other

trustees.

8. The powers of the fund shall be vested in and exercised by no less

than four of the trustees then in office. The fund may delegate to one

or more of its trustees, or officers, agents or employees, such powers

and duties as the trustees may deem proper, provided, however, that all

contracts involving an estimated expense of ten thousand dollars or more

shall be approved prior to execution by no less than four trustees of

the fund.

9. The fund shall be subject to an examination by the superintendent

of financial services at least once in each calendar year.

10. Within three days, Saturdays, Sundays and holidays excepted, after

each meeting of the trustees of the fund, the secretary or other officer

of the fund in charge of the minutes of the proceedings of the trustees

shall transmit to the superintendent of financial services at his office

in Albany three certified copies of the minutes of every meeting of the

trustees for his information.

11. The fund shall become operative when the total aggregate of the

savings deposits of its members amount to five hundred million dollars

or more and shall continue so long as it shall have bonds, insurance or

other obligations outstanding and until its existence shall be

terminated by law. Upon the termination of the existence of the fund,

all its rights and properties shall pass to and be vested in the state.

12. Before becoming operative the fund shall adopt, and obtain the

approval of the superintendent, of by-laws for its organization,

management and operations. Any amendment of the by-laws shall require

the prior approval of the superintendent.