N.Y. Banking Law § 385

§ 385. Surplus account. Every savings and loan association shall\naccumulate and maintain a surplus account as provided in section three\nhundred eighty-seven of this article. Such surplus account up to ten per\ncentum of the association's capital shall not be available for any\npurpose, except with the prior written approval of the superintendent;\nbut any such association may: (a) charge against such surplus account\nany losses or expenses without such approval only in the event such\nassociation has no undivided profits against which such losses or\nexpenses may be charged or (b) may, with the prior written approval of\nthe superintendent, transfer any part of such surplus account to any\nother account for any purpose. Such account may be created or increased\nby contributions and by transfers from undivided profits or from net\nprofits.\n