New York Private Housing Finance Law Section 313 - Participation.

313. Participation. Notwithstanding any rule at common law or any provision of any general or special law or any provision in their respective charters, agreements of association, articles of organization or certificates of incorporation:

1. All banking organizations, insurance and surety companies are hereby authorized to become members of the corporation established by this article and to make loans to such corporation as provided herein;

2. A banking organization which does not become a member of the corporation established by this article shall not acquire any shares of the capital stock of such corporation;

3. Each banking organization, insurance and surety company which becomes a member of the corporation established by this article is hereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise dispose of any bonds, securities or other evidences of indebtedness issued by such corporation or the shares of its capital stock, and while owners of said stock, to exercise all the rights, powers and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of this state; provided, however, that the amount of the capital stock of such corporation which may be acquired by any member pursuant to the authority granted herein, shall not exceed ten per centum of the loan limit of such member as defined by section three hundred seven of this article. The amount of capital stock of such corporation which any member is authorized to acquire pursuant to the authority granted herein shall be in addition to the amount of capital stock in corporations which such member may otherwise be authorized to acquire.


Last modified: February 3, 2019