N.Y. Banking Law § 217

§ 217. Surplus, obligations and depositories. 1. Such corporation\nshall set apart as an earned surplus all of its net earnings in each and\nevery year until such earned surplus shall equal the total of the\npaid-in capital and paid-in surplus then outstanding. Said earned\nsurplus shall be held in cash, invested in United States government\nbonds, or as provided in such corporation's by-laws, and shall be kept\nand used to meet losses and contingencies of such corporation and,\nwhenever the amount of earned surplus shall become impaired, it shall be\nbuilt up again to the required amount in the manner provided for its\noriginal accumulation.\n 2. At no time shall the total obligations of such corporation exceed\nten times the amount of its paid-in capital and surplus, not including\ntherein the earned surplus, or two hundred fifty million dollars,\nwhichever is greater.\n 3. Such corporation shall not deposit any of its funds in any banking\norganization unless such banking organization has been designated as a\ndepository by a vote of the majority of all of the directors of such\ncorporation, exclusive of any director who is an officer or director of\nthe depository so designated. Such corporation shall not receive money\non deposit. Such corporation shall not make any loans directly or\nindirectly to any of its officers or to any firms in which any of its\nofficers is a member or officer.\n