New York Private Housing Finance Law Section 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.

Last modified: February 3, 2019