N.Y. Banking Law § 110

§ 110. Surplus fund; of what composed, and for what purposes used.\nEvery bank and every trust company shall create a fund to be known as a\nsurplus fund. Such fund may be created or increased by contributions, by\ntransfers from undivided profits, or from net profits. Such fund shall\nnot be available for the payment of dividends, except with the prior\napproval of the superintendent, and may be used to pay expenses or\nabsorb losses only in the event such bank or trust company has no\nundivided profits against which such expenses or losses may be charged.\n