N.Y. Banking Law § 98: Power to take and hold real estate; restrictions

§ 98. Power to take and hold real estate; restrictions. 1. A bank or

trust company may purchase, hold, lease and convey real property as

follows:

(a) A plot whereon there is or may be erected a building suitable for

the convenient transaction of its business, from portions of which not

required for its own use a revenue may be derived, and a plot whereon

parking accommodations are, or are to be, provided, with or without

charge, primarily for its customers or employees or both, and a building

or a portion or portions thereof for use by the bank or trust company in

its business, provided that the aggregate of all investments of any bank

or trust company in such plots and buildings and in a leased building or

a portion or portions thereof or in the stock, debentures or other

obligations of any corporation holding such plots or buildings and of

all loans to or upon the security of the stock of any such corporation

shall not exceed forty per centum of the aggregate of the capital stock,

surplus fund and undivided profits of such bank or trust company, except

with the approval of the superintendent. Any bank or trust company

having, prior to April twenty-third, nineteen hundred thirty-four, made

loans and investments in excess of the limitations prescribed by this

paragraph may retain any such loans and investments notwithstanding such

limitations.

(b) Such as shall be conveyed to it in satisfaction of debts

previously contracted in the course of its business.

(c) Such as it shall purchase at sales under judgments, decrees or

mortgages held by it.

(d) Such purchase, lease, conveyance or other acquisition or sale of

real property which is located outside the United States, its

territories and possessions, and which is used principally as the

residence of one or more directors, officers, or employees of the bank

or trust company as may be specifically approved by the superintendent.

(e) A whole or part interest in a "project", as defined in the New

York state urban development corporation act, pursuant to sections six

or eight of such act. An investment by a bank or trust company in a

single project shall not exceed one per centum of the assets or fifteen

per centum of the combined capital stock, surplus fund and undivided

profits of such bank or trust company, whichever is less, and the

aggregate of all investments of a bank or trust company in such projects

and investments in securities of any "subsidiary" of the New York state

urban development corporation, as defined in the New York state urban

development corporation act, shall not exceed five per centum of the

assets or seventy-five per centum of the combined capital stock, surplus

fund and undivided profits of such bank or trust company, whichever is

less.

2. All real estate purchased by any bank or trust company or taken by

it in settlement of debts due it, shall be conveyed to it in its name

or, subject to such regulations and restrictions as the superintendent

of financial services finds to be necessary and proper, may be taken in

the name of a duly authorized nominee. All such conveyances shall be

immediately recorded or registered in the office of the proper recording

officer of the county in which such real estate is located.