L. 1923, ch. 701.

Credit unions.

§ 454-a.

meeting shall have stated that the question of loans to directors, officers or members of committees would be considered at such meeting.

5. Issue shares or accept deposits in trust, except in the name of the trustee, as such, for a specified beneficiary whose residence shall be disclosed to the credit union by such trustee.

6. Issue any shares except to those qualified for membership under its by-laws, and unless there is printed upon the certificate or other evidence of such shares the words "transferable only to qualified members.”

7.

Lend to any of its members without requiring at the time of such loan a surrender and pledge of any certificates or other evidences of membership, issued by such credit union to the member to whom such loan is to be made, except such share or shares as may be necessary to qualify such member as a director of such credit union.

8. Accept as security for a loan, a lease of real estate or an assignment thereof; but a credit union may accept as security, in addition to an endorsed note, a mortgage or conveyance of real estate or a chattel mortgage or an assignment of either thereof; but the aggregate amount of all loans so secured shall not at any one time exceed twenty per centum of the sum of the outstanding shares and the deposits of the credit union; provided, however, that the provisions of this subdivision shall not apply to collateral taken on loans made prior to the enactment of this subdivision. (Amended by L. 1918, ch. 97 and L. 1923, ch. 701, in effect May

25, 1923.)

§ 454-a. Restriction as to shares, loans and deposits.-No credit union shall :

1. Permit any member to become the owner, directly or indirectly, individually or in trust, by purchase, transfer or otherwise, of shares having a par value of more than five per centum of the total amount paid in on shares as shown by the report of the supervisory committee for the preceding quarter, or, in any event, of shares in excess of five thousand dollars par value. But if the total amount paid in on shares does not exceed ten thousand dollars, a member may be permitted to become the owner of shares having a par value of not more than five hundred dollars.

2.

Loan to any member, directly or indirectly, a sum in excess of two thousand dollars. But if the total amount paid in on shares and deposits does not exceed twenty-five thousand dollars, a loan of not more than five hundred dollars may be made to a member. Notwithstanding the foregoing provisions of this subdivision, a member may borrow an amount equal to the aggregate of the par value of his fully paid shares and of his deposits.

3. Permit any member, directly or indirectly, individually or in trust, to make deposits in excess of two thousand dollars. (Added by L. 1923, ch. 701, in effect May 25, 1923.)

VOL. XXIII-6

§§ 456-469.

Credit unions.

L. 1923, ch. 701

§ 456. Deposit of funds; preference; investment of guaranty fund.The capital, deposits, undivided profits and one-half of the guaranty fund of any credit union may be deposited in one or more savings banks, state banks or trust companies incorporated under the laws of the state of New York, or in national banks located in the state. Funds deposited in a state bank or trust company shall, in the event of the liquidation of such depositary, be entitled to priority of payment to the same extent as deposits of savings banks as provided in section two hundred and seventy-eight of this chapter.

At least one-half of the guaranty fund shall be kept invested in the securities authorized as investments for savings banks by subdivisions one, two, three, and four of section two hundred and thirty-nine of this chapter, which securities shall be registered in the name of the credit union. Such securities shall be purchased and disposed of by the treasurer in accordance with orders of the board of directors. (Amended by L. 1923, ch. 701, in effect May 25, 1923.)

§ 464. Meetings of shareholders; voting.-At all meetings of shareholders of every credit union each shareholder shall have one vote irrespective of the number of shares which he holds, and no shareholder may vote by proxy. At any annual or special meeting a decision of the board of directors may be overruled by a majority vote of all the shareholders.

1. Annual meeting. An annual meeting for the election of members of the board of directors, credit committee and supervisory committee shall be held during the month of January upon such notice and at such time. and place as the by-laws provide.

2. Special meetings. At the request of ten members, or by order of the directors or the supervisory committee, special meetings may be held, after notice to the members as provided in the by-laws. (Amended by L.

1923, ch. 701, in effect May 25, 1923.)

§ 467. Tenure of office of directors and members of committees.-If the by-laws so provide the directors and members of supervisory and credit committees may be elected for terms of one, two or three years. The directors and members of committees, unless sooner disqualified or removed, shall hold office until the annual meeting of shareholders following the termination of the periods for which they are elected and until their successors are elected and shall have qualified. (Amended by L. 1923, ch. 701, in effect May 25, 1923.)

§ 469. Special duties of directors.-Unless the by-laws shall expressly reserve any or all of the following duties to the shareholders, it shall be the special duty of the directors:

1. To act upon all applications for membership and to expel members. 2. To fix the amount of surety bond required of each officer having the control or custody of funds.

L. 1923, chs. 8, 701.

Credit unions.

§§ 473, 487.

3. To determine from time to time the rate of interest which shall be allowed on deposits and charged on loans.

4. To fix the maximum number of shares which may be held by, the maximum amount which may be deposited by, and the maximum amount which may be lent to any one member subject, however, in each case, to the restrictions contained in section four hundred and fifty-four-a of this article.

5. To declare dividends.

6. To recommend amendments to the by-laws.

7. To fill vacancies in the board of directors or in the credit committee. 8. To direct the deposit or investment of funds, except loans to members, and to perform such other duties as the by-laws may prescribe. (Amended by L. 1923, ch. 701, in effect May 25, 1923.)

§ 473. Amendment of by-laws; approval of superintendent of banks.The by-laws of a credit union may be changed or amended by a threefourths vote of the shareholders present at any meeting; provided the proposed change or amendment shall have first had the approval of the superintendent of banks; and provided further, that notice of such meeting, with notice of the proposed change or amendment, shall have been given to each shareholder as prescribed in the by-laws. A copy of any change or amendment thus adopted shall be filed in the office of the superintendent of banks within thirty days after its adoption. Any credit union deeming itself aggrieved by the refusal of the superintendent of banks to give his approval to a proposed change or amendment, may apply to any justice of the supreme court of the district wherein the credit union is located, upon notice to the superintendent of banks, for a review of such decision. Such justice shall review the decision of the superintendent and may overrule or set aside the action of the superintendent and approve such change or amendment. An approval thus obtained shall enable such credit union to make the change or amendment as approved. (Amended by L. 1922, ch. 304, in effect March 28, 1922.)

§ 487. Merger; when authorized.-1. Any two or more corporations, other than savings banks, organized under any one article of this chapter or under the laws of this state for the purposes or any of them mentioned in any one article of this chapter, or for the purposes or any of them mentioned in both articles three and five of this chapter, are hereby authorized to merge one or more of such corporations into another of them as prescribed in succeeding sections of this article. (Subd. 1, amended by L. 1923, ch. 8, in effect Feb. 27, 1923.)

L. 1923,ch. 8. § 2. All proceedings heretofore taken in substantial compliance with the provisions of this article relating to mergers as amended herein are hereby legalized, ratified and confirmed.

Power transferred by merger.—A trust company, with which another trust company which had been appointed committee of the claimant under the Workmen's Compensation Law was duly merged prior to the accident, was, under section 494 of the Banking Law, entitled to receive the award made to the claimant and directed to be paid to the committee, though there were no further proceedings in court after the merger with reference to any change of the committee or the appointment thereof. O'Rourke v. Standard Wool Turning Co. (1923), 204 App. Div. 658, 198 N. Y. Supp. 632.

BANKRUPT.

Discharge; Debtor and Creditor L., § 150.

BANK SHARES

Taxation; Tax L., § 24.

BARGE CANAL.

See Canal Improvements.

Terminals, See Canal Terminals.

BASEBALL PLAYERS.

Bribery; Penal L., § 382.

BASS.

Open season; limit; Conservation L., § 231. Open season, Lake George; Conservation L., § 241-a.

BASTARDY PROCEEDINGS.

Duties of corporation counsel; Second Class Cities L., § 201.

BATHING.

Ordinances regulating; Town L., § 142-a.

BEAM TRAWLS.

Use prohibited; Conservation L., § 177-a.

BEAR.

Open season; Conservation L., § 193-c.

BEAR MOUNTAIN HUDSON RIVER BRIDGE COMPANY.

See Bridges.

BEAVER.

Closed season; Conservation L., § 197.

BED SPRINGS.

Manufacture regulated; General Business L., §§ 389-m-389-v.

L. 1923, ch. 349.

Organization.

BEES.

§ 2.

Prevention of diseases; Farms and Markets L., §§ 173-175.

BENEVOLENT ORDERS LAW.

(L. 1909, ch. 11.)

§ 2. Organization.-23. The Catholic Daughters of America, or any subordinate court thereof, which is duly chartered and instituted in accordance with the constitution and laws of said Catholic Daughters of America. (Subd. 23, added by L. 1913, ch. 250, and amended by L. 1923, ch. 255, in effect April 24, 1923.)

27. A commandery of the Knights of Malta, chartered by and instituted according to the general rules and regulations of the Supreme Grand Commandery of the Ancient and Illustrious Order of Knights of Malta. (Subd. 27 added by L. 1922, ch. 60, in effect March 2, 1922.)

28.

A sisterhood of the Dames of Malta, Ladies of the Order of Saint John, Ancient and Illustrious Order, Knights of Malta, Continent of America, chartered by and instituted according to the general rules and regulations of the Zenodacia of the Dames of Malta. (Subd. 28, added by L. 1922, ch. 60, in effect March 2, 1922.)

29. A council of the Degree of Pocahontas of the Improved Order of Red Men, duly chartered by and instituted according to the general rules and regulations of the Great Council of New York State, Degree of Pocahontas of the Improved Order of Red Men. (Subd. 29, added by L. 1923, ch. 349, in effect May 21, 1923.)

May elect at any regular communication, convocation, encampment or other regular meeting thereof, by whatever name known, held in accordance with the constitution and general rules and regulations of such grand lodge, chapter, commandery or council, or other governing body to which it belongs, or with which it is connected, and in conformity to its own bylaws, if it has any, three trustees for such lodge, chapter, commandery, consistory, council, temple, post, court, tribe, grotto, aerie, camp, tent, nest, encampment or canton, or Degree of Pocahontas council, who shall be members thereof in full membership and in good and regular standing therein; and may file in the office of the secretary of state, a certificate of such election, signed and acknowledged by the first three elective officers of such lodge, chapter, commandery, consistory, council, temple, post, court, tribe, grotto, aerie, camp, tent, nest, encampment or canton, or Degree of Pocahontas council, stating the time and place of such election and that the same was regular, the names of such trustees, and the term, severally, for which they are elected to serve, and the name of the lodge, chapter, commandery, consistory, council, temple, post, court, tribe, grotto, aerie, camp, tent, nest, encampment or canton, or Degree of Pocahontas council, for which they are elected. (Final paragraph amended by L. 1909, ch. 240, L. 1910, ch. 420, L. 1912, ch. 65, L. 1915, ch. 183 and L. 1923, ch. 349, in effect May 21, 1923.)