§ 247. Restrictions upon trustees and officers. 1. A trustee of a\nsavings bank shall not\n (a) Have any interest, direct or indirect, in the profits of the\nsavings bank, but may receive interest upon the amounts contributed by\nhim or her to the surplus fund, may make deposits in the savings bank\nand receive interest thereon and may acquire from the life insurance\ndepartment of the savings bank, or through the savings bank as agent for\nthe life insurance department of another savings bank, life insurance\nissued on his or her life, or that of another, in accordance with the\nprovisions of article six-A of this chapter and may receive dividends\nthereon. Notwithstanding the provisions of this paragraph, an officer of\na savings bank who also serves as a trustee of such institution may\nreceive compensation as an officer of such institution, as approved by\nthe board of trustees, which in whole or in part is based upon the\nfinancial performance of the institution.\n (b) Become a member of the board of directors of a bank, trust company\nor national bank of which board enough other trustees of the savings\nbank are members to constitute with him a majority of the board of\ntrustees.\n (c) Become a director or trustee of a bank, trust company or national\nbank located in this state, operating a special interest department, or\nof a mortgage or title company organized under the banking law or\ninsurance law, if, after election as such director or trustee a majority\nof the trustees of the savings bank will be directors or trustees of\nsuch other institutions.\n 2. Neither a trustee nor an executive officer of a savings bank shall\n (a) Receive directly or indirectly and retain for his or her own use\nany commission on or benefit from any loan made by the savings bank, or\nany pay or emolument for services rendered to any borrower from the\nsavings bank in connection with such loan, except as provided in section\ntwo hundred forty-nine of this article.\n (b) Direct or require a borrower on a mortgage to negotiate any policy\nof insurance on the mortgaged property through any particular insurance\nbroker or brokers, or attempt to divert to any particular insurance\nbroker or brokers the business of borrowers from the savings bank, or\nrefuse to accept any such insurance policy because it was not negotiated\nthrough a particular insurance broker or brokers.\n (c) Become an indorser, surety, or guarantor, or in any manner an\nobligor, for any loan made by the savings bank.\n (d) For himself or as agent or partner of another, directly or\nindirectly borrow or use any of the funds of the savings bank or become\nthe owner of real property on which the savings bank holds a mortgage.\n 2-a. Notwithstanding paragraph (c) or (d) of subdivision two of this\nsection an executive officer of a savings bank may borrow from such\nsavings bank or become the owner of real property on which the savings\nbank holds a mortgage if the loan is secured by (a) a first mortgage or\nis a cooperative apartment unit loan, which property or apartment is to\nbe occupied as the executive officer's primary residence and is\nspecifically approved in writing by the board of trustees or (b) a\ndeposit maintained by the executive officer with the savings bank.\n 2-b. As used in subdivisions two and two-a of this section, the term\n"executive officer" shall be defined as set forth in section 22(h)(9)(C)\nof the Federal Reserve Act 12 U.S.C. 375b(9)(C), and regulations\npromulgated thereunder, as amended.\n 3. A loan to or a purchase by a corporation in which he is a\nstockholder to the amount of fifteen per centum of the total outstanding\nstock, or in which he and other trustees of the savings bank hold stock\nto the amount of twenty-five per centum of the total outstanding stock,\nshall be deemed a loan to or a purchase by such trustee within the\nmeaning of this section; except when the loan to or purchase by such\ncorporation shall have occurred wit
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