Section 399. Restrictions on directors and officers

1. No director or
  officer of any savings and loan association shall  receive  any  salary,
  fees,  expenses  or other compensation for soliciting the sale of shares
  of the association to any person.
    2. No officer, director, attorney, agent or employee  of  any  savings
  and loan association shall discount or, directly or indirectly, purchase
  from  a  member of such association a share in such association, whether
  or not withdrawal application has been filed with respect to such share,
  except by payment therefor of the book value  of  such  share.  For  the
  purposes of this subdivision, the book value of a share shall consist of
  the  dues  and  dividends  credited  thereon  and dividends declared but
  withheld subject to payment at maturity.
    3. No director or officer of any savings and loan  association  shall,
  after  June  thirtieth,  nineteen  hundred thirty-nine for himself or as
  agent or partner of another borrow any of the funds of such  association
  or become the owner of real property upon which such association holds a
  mortgage;  except  that  such  officer  or director may borrow from such
  association on the security of shares held by him or on the security  of
  real  estate  owned  by  him  if  used and occupied by him as a home for
  himself or family, or may become the owner of real estate  so  used  and
  occupied  upon  which  the association holds a mortgage. As used in this
  subdivision, the terms "real property", "real  estate",  and  "mortgage"
  shall  be  deemed  to refer to ownership interests in, and security with
  respect to, a cooperative apartment unit.
    4. No director or officer of any savings and  loan  association  shall
  direct  or  require  a borrower on a mortgage to negotiate any policy of
  insurance on the mortgaged property  through  any  particular  insurance
  company or companies or through any particular insurance agent or agents
  and  broker  or brokers or attempt to divert to any particular insurance
  company or companies or any particular insurance  agent  or  agents  and
  broker  or  brokers, the business of borrowers from the savings and loan
  association, or refuse to accept any insurance policy because it was not
  negotiated through  a  particular  insurance  company  or  companies  or
  through a particular insurance agent or agents and broker or brokers.
    5.  (a)  No executive officer of a savings and loan association may be
  an executive officer, director or trustee of another  savings  and  loan
  association,  bank or trust company, savings bank, national bank located
  in this state, federal savings and  loan  association  located  in  this
  state, bank holding company or foreign banking corporation maintaining a
  branch  in this state unless permission therefor has been granted by the
  banking board pursuant to paragraph (b) of this subdivision, except that
  an executive officer of a savings and loan association  may  be  (1)  an
  executive officer and (2) a director of a trust company owned by savings
  and loan association or federal savings and loan associations located in
  this  state,  pursuant  to  section three hundred seventy-nine-a of this
  chapter, if one of the stockholders of such trust company is  a  savings
  and  loan  association  of  which  he is an executive officer; provided,
  however,  that,  except  as  stated  in  the  foregoing  exceptions,  an
  executive  officer  of  a  savings  and  loan  association,  who  on the
  effective date of this act is an executive officer, director or  trustee
  of  another savings and loan association, bank or trust company, savings
  bank, national bank located in this  state,  federal  savings  and  loan
  association  located  in  this  state,  bank  holding company or foreign
  banking corporation maintaining a branch in this state, may continue  to
  hold such other office, without permission from the banking board, until
  the  expiration  of  the term of such office or the close of business on
  the last day  of  December,  nineteen  hundred  seventy-four,  whichever
  occurs sooner.

    (b)  The banking board shall have the power to determine by regulation
  who shall be considered, under the provisions of this subdivision, to be
  an executive officer, and by a general or specific  regulation,  upon  a
  three-fifths  vote  of  all  its  members,  to  grant  permission  to an
  executive  officer  of a savings and loan association to be an executive
  officer, director or trustee or both an executive officer and a director
  or a trustee of another savings and  loan  association,  bank  or  trust
  company,  savings  bank,  national  bank  located in this state, federal
  savings and loan association located in this state, bank holding company
  or foreign banking corporation maintaining a branch in this state.  Such
  permission  may  be granted only if in the judgment of the banking board
  such service by the executive officer will be consistent with the policy
  of the state of New York as declared in section ten of this chapter. The
  banking board shall have the power to revoke such permission by  a  like
  vote whenever it finds, after reasonable notice and an opportunity to be
  heard, that the public interest requires such revocation.
    (c)  For  the  purposes  of  this  subdivision, the term "bank holding
  company" shall be given the same meaning as is contained in section  one
  hundred  forty-one  of  this  chapter,  except  that  the  definition is
  modified by deleting the phrase "each of two or more"  and  substituting
  the  word  "institution"  for  "institutions", and the definition of the
  term "banking institution" is modified  to  include  a  foreign  banking
  corporation maintaining a branch in this state.
    (d)  All other restrictions and limitations imposed by this chapter on
  executive officers and directors of savings and loan associations  shall
  continue in effect.