N.Y. Cooperative Corporations Law § 121: Special powers

§ 121. Special powers. Any credit corporation organized under this

chapter may make loans to members of a cooperative corporation owning in

whole or in part the stock of the credit corporation; and no loans shall

be otherwise made. No loans shall be made for more than ten years; nor

for other than the agricultural, dairy, or horticultural purposes of the

borrower. In all cases, there shall be a written statement by the

borrower in the note, collateral agreement or signed application to the

effect that the loan will be used only for such purposes; and such

statement may be relied upon by the credit corporation. The credit

corporation may discount or pledge such note with a federal intermediate

credit bank, or other banks or banking institutions, with its guaranty

or endorsement, if required.

A credit corporation may invest its capital funds in bonds or

obligations of the United States or of any state or municipality, or

such other bonds as are authorized for investment by a savings bank or

in federal intermediate credit bank obligations, and may deposit or

hypothecate such securities with a federal intermediate credit bank, or

other banks or banking institutions, as security for notes discounted by

it.