New York Laws
Article 10 - Savings and Loan Associations
393 - Repayment of Mortgage Loans; Application of Pledged Shares.

(a) Interest for a period of three months on the principal so prepaid;
or
(b) Interest for the remaining months of the first year on the
principal so prepaid if the prepayment is made at any time within one
year from the date the loan is made.
The book value of instalment shares pledged as security for any such
loan shall be deducted from the amount of the loan in determining the
amount of principal upon which such interest may be charged.
3. Whenever any mortgage is foreclosed, the withdrawal value of the
shares transferred and pledged to any such association as security for
the loan shall be applied toward the payment of the indebtedness of the
member and his rights under such shares shall terminate.
4. In event of the voluntary or involuntary liquidation of any
association, the holder of shares pledged as security for a mortgage
loan pursuant to the provisions of subdivision one of section three
hundred eighty of this article shall be entitled to have the payments on
such shares and the dividends credited or entitled to be credited
thereon applied in reduction of such mortgage loan.
5. No shares pledged as security for a mortgage loan may be withdrawn
while the mortgage loan against which they are pledged is outstanding.

Structure New York Laws