N.Y. Comp. Codes R. & Regs. Tit. 3 § 63.4 - Investments in the capital notes or debentures of a service agency

(a) No savings bank shall invest in the capital notes or debentures of a service agency if the aggregate amount of its investment in such notes and debentures, including the proposed investment, would exceed the greater of two percent of the total assets of such savings bank as of the date of such investment or $20,000.

(b) Nor shall any savings bank invest in such capital notes or debentures unless:

(1) such service agency shall have filed with the superintendent its written agreement (and shall have complied with the terms thereof) subjecting itself to the supervision of the Banking Department submitting itself to periodic examinations by the Banking Department at such times and in such manner as the superintendent shall provide, and agreeing to pay the charges of such examinations assessed against it by the superintendent in the same manner as if it were a banking organization organized under the laws of New York; and

(2) such service agency restricts the investment of its funds to:

(i) investments which savings banks may make under the laws of this State excluding, except as permitted by subparagraph (ii) of this paragraph, those investments permitted solely by virtue of Banking Law, section 235(21);

(ii) investments in the stock of certain corporations and in certain other entities, either directly or through investment in the securities of any one or more wholly owned subsidiary corporations, which a service agency may make under section 62.3 of Part 62 (relating to housing and urban development projects), subject to the limitations thereof;

(iii) bonds and mortgages and notes and mortgages or part interests therein, on improved and unencumbered real property, including leasehold estates, located in any other state of the United States, the District of Columbia or the Commonwealth of Puerto Rico, which would qualify as investments for savings banks under the laws of this State except for restrictions governing the location of the property or the location of the principal office of the holder of any part interest;

(iv) investments in plots and buildings and related facilities to be used by a savings bank of New York State as a branch office, as may be or have been from time to time approved by the superintendent, either directly or through the stock and obligations of one or more wholly owned subsidiary corporations; and

(v) such other investments as the superintendent with the authorization of the Banking Board shall approve in writing.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 3 § 63.4