Section 420-A. State savings and loan insurance fund

1. There is hereby
  created the "state savings and loan insurance fund". The fund shall be a
  corporate governmental agency constituting a public benefit corporation.
  It shall have the powers and privileges of a corporation, and under  its
  corporate  name  all  of  its  business  shall  be transacted, all funds
  invested, all warrants for money drawn and payments made, and  all  cash
  and securities and other personal property shall be held.
    2.  The fund shall be administered by six trustees, four of whom shall
  be appointed by the governor with the advice and consent of the  senate,
  one  shall be elected by the insured members and one shall be elected by
  the board of directors of the Savings and Loan Bank of the State of  New
  York  from their own number. The trustees of the fund first appointed by
  the governor shall serve  for  terms  ending  December  thirty-first  in
  nineteen  hundred  sixty-eight,  nineteen  hundred  sixty-nine, nineteen
  hundred seventy and nineteen hundred seventy-one, respectively.  Persons
  appointed for full terms as their successors shall serve for four  years
  each commencing as of January first next following the year in which the
  term  of  his  predecessor  expired.  The trustee elected by the insured
  members shall serve for a term ending on December thirty-first, nineteen
  hundred sixty-nine and the trustee elected by the board of directors  of
  the  savings  and  loan  bank of the state of New York shall serve for a
  term ending on  December  thirty-first,  nineteen  hundred  seventy-one.
  Persons  elected for full terms as their successors shall serve for four
  years each commencing as of January first next  following  the  year  in
  which  the  term  of  his predecessor expired. In the event of a vacancy
  occurring in the office of an appointed trustee by death, resignation or
  otherwise, the governor shall appoint a successor in the same manner  as
  an  original appointment to serve for the balance of the unexpired term.
  If, for the previously stated reasons, a vacancy occurs in the office of
  an elected trustee, said vacancy shall be filled for the unexpired  term
  by special election.
    3.  The  trustees  of  the  fund  shall serve without salary, but each
  trustee shall be entitled to reimbursement for his actual and  necessary
  expenses incurred in the performance of his official duties and to a fee
  of  one  hundred  dollars per day when rendering service as such member,
  provided that the aggregate amount of  such  fees  payable  to  any  one
  trustee in any one fiscal year shall not exceed the sum of five thousand
  dollars.
    4.  The trustees of the fund may engage in private employment, or in a
  profession or business, subject to the limitations contained in sections
  seventy-three and seventy-four of the  public  officers  law.  The  fund
  shall,  for  the purposes of such sections, be a "state agency", and the
  trustees thereof shall be "officers" of the agency for the  purposes  of
  said sections.
    5.  Notwithstanding  any  inconsistent  provisions  of  law,  general,
  special or local, no officer or employee of the state, or of  any  civil
  division thereof, shall be deemed to have forfeited or shall forfeit his
  office  or  employment  by  reason of his acceptance of appointment as a
  trustee, officer or  agent  of  the  fund;  provided,  however,  that  a
  trustee,  officer  or  agent  who  holds  such  other  public  office or
  employment shall receive no additional compensation,  fee  or  allowance
  for services rendered pursuant to this article, but shall be entitled to
  reimbursement  for  his  actual  and  necessary expenses incurred in the
  performance of such services.
    6. The governor may remove any trustee for  inefficiency,  neglect  of
  duty  or  misconduct  in  office  after giving him a copy of the charges
  against him and an opportunity to be heard, in person or by counsel,  in
  his defense, upon not less than ten days notice. If any trustee shall be

  removed,  the governor shall file with the secretary of state a complete
  statement of charges made against the trustee, and his findings thereon,
  together with a complete record of the proceedings.
    7.  The  chairman  of the board of trustees shall be designated by the
  governor. He shall preside over all meetings of the trustees  and  shall
  have  such  other duties as the trustees may direct. A vice-chairman who
  shall preside over all meetings of  the  fund  in  the  absence  of  the
  chairman and who shall have such other duties as the trustees may direct
  may be designated from time to time by the trustees from among the other
  trustees.
    8.  The powers of the fund shall be vested in and exercised by no less
  than four of the trustees then in office. The fund may delegate  to  one
  or  more  of its trustees, or officers, agents or employees, such powers
  and duties as the trustees may deem proper, provided, however, that  all
  contracts involving an estimated expense of ten thousand dollars or more
  shall  be  approved  prior to execution by no less than four trustees of
  the fund.
    9. The fund shall be subject to an examination by  the  superintendent
  of banks at least once in each calendar year.
    10. Within three days, Saturdays, Sundays and holidays excepted, after
  each meeting of the trustees of the fund, the secretary or other officer
  of  the fund in charge of the minutes of the proceedings of the trustees
  shall transmit to the superintendent of banks at his  office  in  Albany
  three  certified  copies of the minutes of every meeting of the trustees
  for his information.
    11. The fund shall become operative when the total  aggregate  of  the
  savings  deposits  of its members amount to five hundred million dollars
  or more and shall continue so long as it shall have bonds, insurance  or
  other   obligations   outstanding  and  until  its  existence  shall  be
  terminated by law. Upon the termination of the existence  of  the  fund,
  all its rights and properties shall pass to and be vested in the state.
    12.  Before  becoming  operative  the fund shall adopt, and obtain the
  approval  of  the  superintendent,  of  by-laws  for  its  organization,
  management  and  operations.  Any amendment of the by-laws shall require
  the prior approval of the superintendent.