New York Laws
Article 10-B - Savings and Loan Bank of the State of New York
437 - Redemption of Bonds and Notes; Procedure in Event of Default.

§ 437. Redemption of bonds and notes; procedure in event of default.
1. All bonds and notes issued by the savings and loan bank may be
called on any interest day at one hundred two and one-half per centum
and interest by giving notice of not less than sixty days in a newspaper
published in the city of New York or on such notice, in such manner and
at such time and price, not to exceed one hundred five per centum and
interest, as may be specified in such bonds or notes.

2. In the event of any default for more than ninety days in the
payment of the principal of, or for more than ninety days in the payment
of any instalment of interest upon, any bond or note issued by the
savings and loan bank, the superintendent may, in his discretion, and
shall, upon the request in writing of the holders of said obligations in
default to the amount of fifty thousand dollars, forthwith take
possession of and proceed to liquidate the savings and loan bank. Upon
such liquidation he shall be entitled in the name of the savings and
loan bank to enforce all of its rights and securities and to collect and
realize upon all of its assets, including all mortgages assigned to the
savings and loan bank by its several members, and deposited with the
comptroller of the state of New York, up to the amounts advanced by the
savings and loan bank to the several members thereon. Upon any such
liquidation all said obligations then issued and outstanding shall
forthwith become due and payable equally and ratably out of all the
assets of the savings and loan bank in advance of any other debts
thereof not specifically preferred by law.