§ 396-a. Representation by savings and loan association of insurance\non accounts. 1. No savings and loan association, building and loan\nassociation, cooperative bank or homestead association organized in this\nor any other state, other than one whose accounts are insured by an\nagency of the United States and which is specifically named in the\nrepresentation, shall in or from this state, or to any person in this\nstate, make any representation, oral or written, that any of its shares,\ncertificates or accounts are insured or guaranteed unless such\nrepresentation also includes: (a) the name and address of the insurer or\nguarantor, (b) the name of the state or country where the insurer or\nguarantor is incorporated or organized, (c) the phrase "an agency of\n(name of state)", if such be the case, or the phrase "a commercial\ncompany", if such be the case, and (d) the maximum amount of the\ninsurance or guaranty applicable to each of its accounts. If the\nrepresentation of insurance is made in writing, the statements specified\nin (a), (b), (c) and (d) above shall be set forth in not less than\nten-point type.\n 2. Whenever the superintendent of financial services shall report a\nviolation of this section to the attorney-general or the\nattorney-general shall believe from evidence satisfactory to him that a\nviolation of this section has occurred, the attorney-general may bring\nan action in the name of the superintendent or in behalf of the people\nof the state, as the case may be, to enjoin further violation. In the\naction preliminary relief may be granted as under article sixty-three of\nthe civil practice law and rules.\n 3. Before seeking to enjoin a violation of this section, the\nattorney-general shall give to the person, association, corporation or\nother organization against whom a proceeding is contemplated appropriate\nnotice and an opportunity to show orally and in writing why proceedings\nshould not be instituted against him or it.\n 4. Nothing herein contained shall be construed to limit or restrict\nthe application of article twenty-three-A of the general business law to\nsavings and loan associations, building and loan associations,\ncooperative banks or homestead associations.\n 5. A violation of subdivision one shall constitute a misdemeanor.\n
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