N.Y. Banking Law § 420-g: Insurance of accounts and eligibility provisions

§ 420-g. Insurance of accounts and eligibility provisions. 1. It

shall be the duty of the fund to insure the accounts of all state

savings and loan associations that apply and qualify therefor. Approval

of the application shall constitute the savings and loan association a

member of the fund.

2. Applications shall be in such form as the fund shall prescribe, and

shall contain an agreement (a) to pay the reasonable cost of such

examinations as the fund shall deem necessary in connection with such

insurance, and (b) if the insurance is granted, to permit and pay the

cost of such examinations as in the judgment of the fund may from time

to time be necessary for its protection and the protection of member

savings and loan associations, to permit the fund to have access to any

information or report with respect to any examination made by any public

regulatory authority and to furnish any additional information with

respect thereto as the fund may require, and to pay the premium charges

for insurance as hereinafter provided.

3. The fund shall reject the application of any applicant if it finds

that the applicant has assets insufficient to pay its debts and the

amount due its members upon savings accounts or that its financial

policies or management are unsafe or unsound; and the fund may reject

the application of any applicant if it finds that the character of the

management of the applicant or its home financing policy is inconsistent

with economical home financing or with the purposes of this article.

Upon the approval of any application for insurance the fund shall notify

the applicant, and upon the required purchase of the capital stock of

the fund and upon the payment of the initial premium charge for such

insurance and required advance premiums the fund shall issue to the

applicant a certificate stating that it has become an insured

institution. In considering applications for such insurance the fund

shall give full consideration to all factors in connection with the

financial condition of applicants and insured institutions, and shall

have power to require such adjustments in their financial statements as

the fund finds to be necessary.

4. Any savings and loan association which applies after January first,

nineteen hundred sixty-seven for insurance under this article shall pay,

in the event its application is approved, an admission fee in such

amount as the fund shall determine, taking into consideration the total

cost of processing all insurance applications.