N.Y. Defense Emergency Act 1951 784/51 § 93: Powers of the superintendent

§ 93. Powers of the superintendent. 1. In the event that at any time

during a period of acute emergency, the number of directors or acting

directors of an institution which is a corporation who are present and

capable of acting shall be less than three, the superintendent shall

have the power to designate additional acting directors in such number

as will bring to three the number of directors and acting directors who

are present and capable of acting.

2. Upon a determination that such action will tend to promote the safe

and sound and orderly conduct of the business of any institution or to

prevent controversy as to the power of any group of persons purporting

to act as an emergency board of directors so to act, the superintendent

shall have power to issue orders declaring that any such group shall or

shall not have the powers of an emergency board of directors, or

confirming, modifying or vacating in whole or in part any action taken

or purportedly taken by any such group or removing any acting director.

3. (a) At any time after an attack, upon his determination that such

action will tend to promote certainty as to the powers of institutions

or individuals pursuant to this article or that such action is desirable

to enable institutions to take preparatory precautions prior to the

occurrence of an acute emergency, the superintendent shall have power to

declare that any provision of this article which he may specify shall be

operative with respect to any institution which he may designate. Upon

such declaration such institution and its directors, officers, acting

directors and acting officers shall have all powers conferred by such

provisions of this article. The failure of the superintendent so to

declare shall not be deemed to limit the powers of any institution or

its directors, officers, acting directors or acting officers where an

acute emergency exists in fact.

(b) At any time after the commencement of an acute emergency or after

the superintendent shall have declared any provision of this article

operative pursuant to paragraph (a) of this subdivision, upon his

determination that an institution is able, in whole or in part, to carry

on its business in compliance with its charter and the laws other than

this article, the superintendent shall have power to declare that any

provision of this article which he may specify shall be inoperative with

respect to any institution which he may designate. Upon such

declaration, such institution shall be governed by its charter and the

provisions of law other than this article, except insofar as other

provisions of this article remain operative.

4. Upon his determination that, as a result of an acute emergency, the

business and affairs of an institution cannot otherwise be conducted in

a safe and sound manner, the superintendent may forthwith take

possession of the institution and its business and property. The

provisions of section six hundred six through six hundred thirty-two,

inclusive, of the banking law shall be applicable in any case in which

the superintendent takes possession of an institution pursuant to this

subdivision as though the institution were a banking organization or

foreign banking corporation of which the superintendent had taken

possession pursuant to section six hundred six of such law, except that

no such provision shall be applicable which the superintendent shall

have declared inapplicable pursuant to this subdivision. The

superintendent shall have power to declare inapplicable any such

provision upon his determination that the same is inappropriate or

unnecessary to protect the interests of the public or the stockholders

or creditors of the institution, in view of the acute emergency and the

nature of the institution. This subdivision shall not be construed as

conferring upon the superintendent the power to declare inapplicable the

provisions of section six hundred seven of such law.

5. The superintendent shall have power to issue general and specific

regulations, directives and orders consistent with and in furtherance of

the purposes of this article.