N.Y. Banking Law § 437: Redemption of bonds and notes; procedure in event of default

§ 437. Redemption of bonds and notes; procedure in event of default.

1. All bonds and notes issued by the savings and loan bank may be

called on any interest day at one hundred two and one-half per centum

and interest by giving notice of not less than sixty days in a newspaper

published in the city of New York or on such notice, in such manner and

at such time and price, not to exceed one hundred five per centum and

interest, as may be specified in such bonds or notes.

2. In the event of any default for more than ninety days in the

payment of the principal of, or for more than ninety days in the payment

of any instalment of interest upon, any bond or note issued by the

savings and loan bank, the superintendent may, in his discretion, and

shall, upon the request in writing of the holders of said obligations in

default to the amount of fifty thousand dollars, forthwith take

possession of and proceed to liquidate the savings and loan bank. Upon

such liquidation he shall be entitled in the name of the savings and

loan bank to enforce all of its rights and securities and to collect and

realize upon all of its assets, including all mortgages assigned to the

savings and loan bank by its several members, and deposited with the

comptroller of the state of New York, up to the amounts advanced by the

savings and loan bank to the several members thereon. Upon any such

liquidation all said obligations then issued and outstanding shall

forthwith become due and payable equally and ratably out of all the

assets of the savings and loan bank in advance of any other debts

thereof not specifically preferred by law.