§ 399. Restrictions on directors and officers. 1. No director or
officer of any savings and loan association shall receive any salary,
fees, expenses or other compensation for soliciting the sale of shares
of the association to any person.

2. No officer, director, attorney, agent or employee of any savings
and loan association shall discount or, directly or indirectly, purchase
from a member of such association a share in such association, whether
or not withdrawal application has been filed with respect to such share,
except by payment therefor of the book value of such share. For the
purposes of this subdivision, the book value of a share shall consist of
the dues and dividends credited thereon and dividends declared but
withheld subject to payment at maturity.

3. No director or officer of any savings and loan association shall,
after June thirtieth, nineteen hundred thirty-nine for himself or as
agent or partner of another borrow any of the funds of such association
or become the owner of real property upon which such association holds a
mortgage; except that such officer or director may borrow from such
association on the security of shares held by him or on the security of
real estate owned by him if used and occupied by him as a home for
himself or family, or may become the owner of real estate so used and
occupied upon which the association holds a mortgage. As used in this
subdivision, the terms "real property", "real estate", and "mortgage"
shall be deemed to refer to ownership interests in, and security with
respect to, a cooperative apartment unit.

4. No director or officer of any savings and loan association shall
direct or require a borrower on a mortgage to negotiate any policy of
insurance on the mortgaged property through any particular insurance
company or companies or through any particular insurance agent or agents
and broker or brokers or attempt to divert to any particular insurance
company or companies or any particular insurance agent or agents and
broker or brokers, the business of borrowers from the savings and loan
association, or refuse to accept any insurance policy because it was not
negotiated through a particular insurance company or companies or
through a particular insurance agent or agents and broker or brokers.

5. (a) No executive officer of a savings and loan association may be
an executive officer, director or trustee of another savings and loan
association, bank or trust company, savings bank, national bank, federal
savings bank or federal savings association, the principal office of
which institution is located in this state, bank holding company or
foreign banking corporation maintaining a branch in this state unless
permission therefor has been granted by the superintendent of financial
services pursuant to paragraph (b) of this subdivision.

(b) The superintendent shall have the power to determine by regulation
who shall be considered, under the provisions of this subdivision, to be
an executive officer, and by regulation,, to grant permission to an
executive officer of a savings and loan association to be an executive
officer, director or trustee or both an executive officer and a director
or a trustee of another savings and loan association, bank or trust
company, savings bank, national bank, federal savings bank or federal
savings association, the principal office of which is located in this
state, bank holding company or foreign banking corporation maintaining a
branch in this state. Such permission may be granted only if in the
judgment of the superintendent such service by the executive officer
will be consistent with the policy of the state of New York as declared
in section ten of this chapter. The superintendent shall have the power
to revoke such permission whenever the superintendent finds, after
reasonable notice and an opportunity to be heard, that the public
interest requires such revocation.

(c) For the purposes of this subdivision, the term "bank holding
company" shall be given the same meaning as is contained in section one
hundred forty-one of this chapter, and the definition of the term
"banking institution" is modified to include a national bank, federal
savings bank or federal savings association, the principal office of
which institution is located in this state, and a foreign banking
corporation maintaining a branch in this state.

(d) All other restrictions and limitations imposed by this chapter on
executive officers and directors of savings and loan associations shall
continue in effect.