Section 130. Restrictions on officers, directors and employees

1. No
  officer, director, clerk or other employee of any bank or trust company,
  and no person in any way interested or concerned in  the  management  of
  its  affairs,  shall, acting on his own behalf or for any partnership or
  unincorporated  association  of  which  he  is  a  member  or  for   any
  corporation,  of  which  he  owns  or controls a majority of the capital
  stock, discount, or directly or indirectly make any loan upon, any  note
  or  other  evidence of debt which he shall know to have been offered for
  discount to such bank or trust company, and to have been refused.  Every
  person  violating  the  provisions  of  this subdivision shall, for each
  offense, forfeit to the people of the state twice the amount of the loan
  which he shall have made.
    2. No officer, director, clerk or other employee of any bank or  trust
  company  shall, directly or indirectly, purchase or be interested in the
  purchase of any promissory note or other evidence of debt issued  by  it
  on  terms  more  favorable  than  those available to the general public,
  provided, however, that every director,  and  every  officer,  clerk  or
  other  employee  who is a stockholder of such bank or trust company, may
  purchase promissory notes or other evidences of debt issued by it in the
  same ratio as to amount and on the same terms as any other stockholder.
    3. (a) No executive officer of a bank  or  trust  company  may  be  an
  executive officer, director or trustee of another bank or trust company,
  savings  bank,  savings  and  loan association, 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 the provisions of  subparagraph  (b)  of  this
  subdivision,  except  that  (1)  an executive officer of a bank or trust
  company which is a subsidiary of a bank holding company may  be  (i)  an
  executive officer and (ii) a director of the bank holding company and of
  one  or  more  banking  institutions which are subsidiaries of such bank
  holding company; and (2) an executive officer of a bank or trust company
  owned by savings banks pursuant to subdivision eighteen of  section  two
  hundred  thirty-five,  or  by  savings  and loan associations or federal
  savings and loan associations located in this state pursuant to  section
  three hundred seventy-nine-a, may be (i) an executive officer and (ii) a
  director  or  trustee of one of the stockholders of such a bank or trust
  company of which he is an executive  officer;  provided,  however,  that
  except  as stated in the foregoing exceptions, an executive officer of a
  bank or trust company, who on the effective  date  of  this  act  is  an
  executive officer, director or trustee of another bank or trust company,
  savings  bank,  savings  and  loan association, 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 bank or trust company to be an executive officer,
  director  or  trustee  or  both  an  executive officer and director or a
  trustee of another bank or trust company, savings bank, savings and loan
  association, 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 terms "subsidiary",
  "banking institution" and "bank holding company" shall each be given the
  same meaning as is contained in their respective definition  in  section
  one  hundred  forty-one  of  this chapter, except that the definition of
  "bank holding company" 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  banks and trust companies shall
  continue in effect.
    5. Every director of a bank or trust company who is obligated  on  any
  loan  or other extension of credit made by such bank or trust company to
  such director or to any other  individual,  partnership,  unincorporated
  association  or  corporation,  shall  file  a statement of his financial
  condition with such bank or trust company at least once in each year and
  at such other times as the superintendent may require. This  subdivision
  shall not apply to directors whose obligations are secured by collateral
  having  an  ascertained market value of at least fifteen per centum more
  than the amount of such obligations. The superintendent shall  have  the
  power  to  determine  by  regulation what shall be considered, under the
  provisions of this subdivision, to be a loan or an extension of credit.
    6. If any officer of a bank or trust company becomes indebted  to  any
  domestic  or  foreign banking organization, other than the bank or trust
  company of which he is an officer, or becomes indebted  to  any  banking
  institution  organized  under  the  laws  of the United States, he shall
  within ten calendar days after he becomes so  indebted  make  a  written
  report  to  the board of directors of the bank or trust company of which
  he is an officer, stating the date  and  amount  of  any  such  loan  or
  indebtedness,  and  the  security therefor. In addition to the foregoing
  reports he shall render written reports of such  other  indebtedness  as
  the  board  of  directors of the bank or trust company may by resolution
  require of its officers. The superintendent  shall  have  the  power  to
  determine  by  regulation  who  shall  be considered an officer and what
  shall be considered a loan or indebtedness under the provisions of  this
  subdivision.
    The  provision  of  this  subdivision  shall  not be applicable if the
  amount of the indebtedness does not exceed  an  amount  which  shall  be
  determined by the superintendent.
    7. (a) Every person who is directly or indirectly the beneficial owner
  of  more  than  ten  per centum of any class of any equity security of a
  bank or trust company or who is a director  or  officer  thereof,  shall
  file,  within ten days following (i) the effective date of this section,
  or (ii) the date on which he becomes such beneficial owner, director  or
  officer,  whichever is later, a statement with the superintendent of the
  amount of all equity securities of such bank or trust company  of  which
  he  is the beneficial owner, and within ten days after the close of each
  calendar month  thereafter,  if  there  has  been  any  change  in  such
  ownership  during  such  month,  shall  file  with  the superintendent a
  statement indicating his ownership at the close of  the  calendar  month
  and such changes in such ownership as have occurred during such calendar
  month.

    (b)  Any such beneficial owner, director or officer of a bank or trust
  company shall not be subject to the requirements of this section if
    (1)  he  is required by section sixteen (a) of the securities exchange
  act of nineteen hundred thirty-four, as amended, to file with the  board
  of governors of the federal reserve system in accordance with regulation
  f  of  such  board  or with the federal deposit insurance corporation in
  accordance with part three hundred thirty-five of title  twelve  of  the
  regulations  of  such corporation, a statement as to his stock ownership
  and he files with the superintendent at his New York  city  office  four
  copies of each such statement filed with such board or corporation, or
    (2)  he  is  such  beneficial  owner, director or officer of a bank or
  trust company, all of the voting securities  of  which,  excepting  only
  directors'  qualifying  shares, are owned, controlled or held with power
  to vote by a bank holding company as  defined  in  section  one  hundred
  forty-one of this chapter or by a single corporation, or
    (3)  he  is  such  beneficial  owner, director or officer of a bank or
  trust company, all of the voting securities  of  which,  excepting  only
  directors'  qualifying  shares, are owned, controlled or held with power
  to vote by one or more banks organized  under  the  laws  of  a  foreign
  country, or
    (4)  he  is  such  beneficial  owner,  director  or officer of a trust
  company, all of the capital stock of which is owned by  twenty  or  more
  savings banks chartered by the state of New York.
    (c) The banking board shall have power by three-fifths vote of all its
  members  to  adopt such regulations as it shall deem necessary or proper
  to implement the provisions of this section.