N.Y. Private Housing Finance Law § 307: Membership

§ 307. Membership. 1. The members of such corporation shall consist of

such banking organizations, insurance and surety companies, as may make

application for membership in such corporation, and membership shall

become effective upon the acceptance of such applications by the

temporary board of directors or the permanent board of directors, as the

case may be. Each member shall lend funds to the corporation as and when

called upon by it to do so, pursuant to subdivision two of this section,

but the total amount on loan by any member at any one time shall not

exceed the following limits to be determined as of the date it became a

member, and such amount shall thereafter be readjusted annually in the

event of any change in the base of the loan limit of such member:

commercial banks, industrial banks and trust companies, one per centum

of capital and surplus; private bankers, one per centum of capital;

savings banks, one per centum of surplus fund; savings and loan

associations, one per centum of surplus; stock insurance companies, one

per centum of capital and surplus; surety and casualty companies, one

per centum of capital and surplus; mutual insurance companies, one per

centum of guaranty funds or of surplus, whichever is applicable; and

comparable limits for other banking, lending and insurance

organizations, as established by the board of directors; provided,

however, that the total amount on loan by any member at any one time

shall not exceed two hundred fifty thousand dollars; provided, however,

that in the case of banking organizations and in the case of insurance

and surety companies the superintendent of financial services may

authorize a member to lend to the corporation an amount in excess of two

hundred fifty thousand dollars. All loan limits shall be established at

the thousand dollar nearest to the amount computed on an actual basis.

All calls of funds which members are committed to lend to such

corporation shall be prorated by such corporation among the members in

the same proportion that the maximum loan limit of each bears to the

aggregate loan limits of all members of such corporation. Upon six

months' prior written notice to the board of directors, a member of such

corporation may withdraw from membership, effective at the end of such

six-month period and, after the effective date of such withdrawal, such

member shall be free of obligations hereunder except those accrued or

committed by such corporation prior to such effective date of

withdrawal. Notwithstanding the provisions of any other law, general or

special, the notes or other interest-bearing obligations of such

corporation, issued in accordance with and by virtue of this article and

the by-laws of such corporation, shall be legal investments for the

banking, insurance and surety organizations who become members of such

corporations, up to but in no event exceeding the loan limits

established herein.

2. The board of directors of the corporation may, on thirty days'

written notice to its members, make a call of all or any part of the

funds which such members are committed to lend pursuant to subdivision

one of this section. The debentures or evidences of debt of the

corporation issued pursuant to the provisions of this article or by-laws

may contain such terms and provisions as the board of directors of the

corporation shall deem advisable, including, but not limited to

provisions concerning interest rates, maturities, sinking funds,

redemptions and refundings.