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Can you summarize NYCL BNK 130?
Banks and Trust Companies > Restrictions on officers, directors and employees
Short Summary
This legal document imposes restrictions on officers, directors, clerks, and other employees of banks and trust companies in New York. It prohibits them from discounting or making loans upon notes or evidence of debt that have been refused by their own bank or trust company. Violators of this provision will forfeit twice the amount of the loan made. Additionally, officers, directors, clerks, and other employees are prohibited from purchasing or being interested in the purchase of promissory notes or other evidence of debt issued by their own bank or trust company on more favorable terms than those available to the general public. However, stockholders of the bank or trust company are allowed to purchase such notes or debt on the same terms as any other stockholder. The document also outlines restrictions on executive officers holding positions in other banking institutions, unless permission is granted by the superintendent of financial services. Directors of banks or trust companies who are obligated on any loan or extension of credit must file a statement of their financial condition with the bank or trust company. Furthermore, officers of a bank or trust company must report any indebtedness to other banking organizations and provide written reports as required by the board of directors. Lastly, beneficial owners of equity securities in a bank or trust company, as well as directors and officers, are required to file statements with the superintendent of financial services regarding their ownership. The superintendent has the power to adopt regulations to implement the provisions of this document.
Whom does it apply to?
Officers, directors, clerks, and other employees of banks and trust companies, as well as individuals interested or concerned in the management of their affairs
What does it govern?
Restrictions on officers, directors, and employees of banks and trust companies
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
For violating the provisions of making a loan upon a refused note or evidence of debt, the person shall forfeit twice the amount of the loan made. Other penalties are not specified.
Jurisdiction
New York