N.Y. Banking Law § 660: Misconduct of officers, directors, trustees, or employees of banking corporations and of private bankers

§ 660. Misconduct of officers, directors, trustees, or employees of

banking corporations and of private bankers. A director of a

corporation, organized under the laws of this state, having banking

powers, who concurs in any vote or act of the directors of such

corporation, or any of them, by which it is intended to make a loan or

discount to any director of such corporation, or upon paper upon which

any such director is liable or responsible to an amount exceeding the

amount allowed by statute; or, any director, trustee, officer or

employee of any corporation to which the banking law is applicable who

makes or maintains, or attempts to make or maintain, a deposit of such

corporation's funds with any other corporation on condition, or with the

understanding, express or implied, that the corporation receiving such

deposit make a loan or advance, directly or indirectly, to any director,

trustee, officer or employee of the corporation so making or maintaining

or attempting to make or maintain such deposit; or any director,

trustee, officer, or employee of any banking corporation organized under

the laws of another state which is doing business in New York, who makes

or maintains, or attempts to make or maintain, a deposit of such

corporation's funds with any banking organization or any branch of a

foreign banking corporation licensed under article five of this chapter,

on condition, or with the understanding, express or implied, that the

banking organization or branch receiving such deposit make a loan or

advance, directly or indirectly, to any director, trustee, officer or

employee of such banking corporation so making or maintaining or

attempting to make or maintain such deposit; or any director, trustee,

officer, or employee of any banking organization or any branch or agency

of a foreign banking corporation licensed under article five of this

chapter who receives, or attempts to receive, a deposit of funds from

any other banking organization, or any national banking association,

federal savings and loan association, federal credit union, or a banking

corporation organized under the laws of another state or country, on

condition, or with the understanding, express or implied, that such

banking organization or foreign banking corporation licensed under

article five of this chapter receiving, or attempting to receive, such

deposit make a loan or advance, directly or indirectly, to any director,

trustee, officer or employee of the banking organization, national

banking association, federal savings and loan association, federal

credit union or banking corporation organized under the laws of another

state or country, so making or attempting to make, such deposit; or, any

officer or employee of any corporation to which the banking law is

applicable who intentionally conceals from the directors or trustees of

such corporation any discounts or loans made by it between the regular

meetings of its board of directors or trustees, or the purchase of any

securities or the sale of any of its securities during the same period,

or knowingly fails to report to its board of directors or trustees when

required to do so by law, all discounts or loans made by it and all

securities purchased or sold by it between the regular meetings of its

board of directors or trustees; or any director, officer or employee of

a bank or trust company, or a private banker or his employee, who makes

any agreement express or implied, before or at the time of issuing a

certificate of deposit, by which its holder may demand or receive

payment thereof in advance of its maturity, is guilty of a misdemeanor.

Nothing in this section shall render any loan made by the directors of

any such corporation, in violation thereof, invalid.