New York Laws
Article 6 - Savings Banks
243 - Surplus Fund.

§ 243. Surplus fund. 1. Every savings bank shall create a fund to be
known as a surplus fund. Such fund may be created or increased by
contributions made by the incorporators as provided in this article or
by transfers from undivided profits or by transfers from earnings as
required in this article. Such fund up to ten per centum of the amount
due depositors shall not be available for any purpose other than that
specified in subdivision two of this section, except with the prior
written approval of the superintendent, provided that such fund shall be
available without such approval for the purpose of paying expenses or
absorbing losses only in the event such savings bank has no undivided
profits against which such expenses or losses may be charged.

2. Contributions of incorporators or trustees to the surplus fund may
be repaid pro rata in such amounts as will not reduce the surplus fund
below five per centum of the amount due depositors, provided the written
approval of the superintendent shall be required before any repayments
may be made that will reduce the surplus fund below the amount created
at the time of incorporation of the savings bank. In case of the
liquidation of the savings bank before the contributions to the surplus
fund have been repaid, any portion of such contributions not needed for
the payment of the expenses of liquidation and the payment of depositors
and creditors in full may be repaid to the contributors pro rata.

3. Contributions heretofore made by incorporators or trustees of any
savings bank to pay its expenses or to maintain its solvency, under an
agreement with the superintendent that such contributions may be
returned whenever such return will not affect the solvency of such
savings bank or render it unsafe to continue business, may be returned
in accordance with the provisions of such agreement.

4. The aggregate of the guaranty fund and expense fund of every
savings bank at the time this act takes effect shall constitute the
surplus fund at that date and shall thereafter be subject to all the
provisions of this article relating to surplus fund.