N.Y. Banking Law § 378-b

§ 378-b. Club accounts. 1. No contract under which a savings and loan\nassociation agrees to repay shares of fixed sums made at regular\nintervals at a given time with all interest or dividends credited\nthereon, or to repay said shares when, together with interest or\ndividends credited thereon, they shall equal a specified sum, may\nprovide for any forfeiture of the sums deposited in the event of the\ndiscontinuance of the regular payments. Interest or dividends on club\naccounts, if offered, must be credited at least quarterly and may not be\nforfeited once credited, in the event of the discontinuance of regular\npayments.\n 2. Any savings and loan association which provides for deposits in\nclub accounts shall, in all advertising announcements or brochures\npertaining to such accounts, state whether or not interest or dividends\nare paid thereon and, if interest or dividends are paid, shall state the\nrate or form of interest or dividends so paid in accordance with any\nrules and regulations that may be prescribed by the superintendent.\n