N.Y. General Business Law § 396-a: Representation by savings and loan association of insurance on accounts

§ 396-a. Representation by savings and loan association of insurance

on accounts. 1. No savings and loan association, building and loan

association, cooperative bank or homestead association organized in this

or any other state, other than one whose accounts are insured by an

agency of the United States and which is specifically named in the

representation, shall in or from this state, or to any person in this

state, make any representation, oral or written, that any of its shares,

certificates or accounts are insured or guaranteed unless such

representation also includes: (a) the name and address of the insurer or

guarantor, (b) the name of the state or country where the insurer or

guarantor is incorporated or organized, (c) the phrase "an agency of

(name of state)", if such be the case, or the phrase "a commercial

company", if such be the case, and (d) the maximum amount of the

insurance or guaranty applicable to each of its accounts. If the

representation of insurance is made in writing, the statements specified

in (a), (b), (c) and (d) above shall be set forth in not less than

ten-point type.

2. Whenever the superintendent of financial services shall report a

violation of this section to the attorney-general or the

attorney-general shall believe from evidence satisfactory to him that a

violation of this section has occurred, the attorney-general may bring

an action in the name of the superintendent or in behalf of the people

of the state, as the case may be, to enjoin further violation. In the

action preliminary relief may be granted as under article sixty-three of

the civil practice law and rules.

3. Before seeking to enjoin a violation of this section, the

attorney-general shall give to the person, association, corporation or

other organization against whom a proceeding is contemplated appropriate

notice and an opportunity to show orally and in writing why proceedings

should not be instituted against him or it.

4. Nothing herein contained shall be construed to limit or restrict

the application of article twenty-three-A of the general business law to

savings and loan associations, building and loan associations,

cooperative banks or homestead associations.

5. A violation of subdivision one shall constitute a misdemeanor.