N.Y. Banking Law § 98-a: Club accounts

§ 98-a. Club accounts. 1. No contract under which a bank or trust

company agrees to repay deposits of fixed sums made at regular intervals

at a given time with all interest or dividends credited thereon, or to

repay said deposits when, together with interest or dividends credited

thereon, they shall equal a specified sum, may provide for any

forfeiture of the sums deposited in the event of the discontinuance of

the regular payments. Interest or dividends on club accounts, if

offered, must be credited at least quarterly and may not be forfeited

once credited, in the event of the discontinuance of regular payments.

2. Any bank which provides for deposits in club accounts shall, in all

advertising, announcements or brochures pertaining to such accounts,

state whether or not interest or dividends are paid thereon and, if

interest or dividends are paid, shall state the rate or form of interest

or dividends so paid in accordance with any rules and regulations that

may be prescribed by the superintendent.