N.Y. Banking Law § 436: Restrictions on powers

§ 436. Restrictions on powers. The savings and loan bank shall not: 1.

Do a general deposit business except with its members.

2. Invest more than twenty-five per centum of its surplus account in

real estate occupied, or to be occupied, by it as a place of business,

without the written approval of the superintendent.

3. Incur any indebtedness, except for the purpose of making loans to

its members or purchasing from its members those investments made by

them under article ten of this chapter, upon any bonds or notes, secured

or unsecured, with a maturity exceeding three years or in an aggregate

amount exceeding five times its capital.

4. Incur any indebtedness upon bonds or notes, secured or unsecured,

for the purpose of making loans to its members unless the amount of any

such bonds or notes which are secured shall not be in excess of eighty

per centum of the value of the collateral security pledged therefor to

such savings and loan bank; and any such bonds or notes which are

unsecured shall not have a maturity in excess of three years.

5. Purchase from its members mortgage loans which were originated less

than five years prior to date of such purchase, nor incur indebtedness

for the purchase from its members of mortgage loans which were

originated five years or more prior to the date of such purchase by the

issuance of bonds or notes, secured or unsecured, with a maturity

exceeding five years.