N.Y. Banking Law 665 – Misconduct by directors of banking corporations
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§ 665. Misconduct by directors of banking corporations. Every director of a banking corporation who:
Terms Used In N.Y. Banking Law 665
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- director: as used in this Article of the persons having, by law, the direction or management of the affairs of a corporation, by whatever name described. See N.Y. Banking Law 674
- Fraud: Intentional deception resulting in injury to another.
- Statute: A law passed by a legislature.
1. In case of the fraudulent insolvency of such corporation, shall have participated in such fraud; or
2. Wilfully does any act as such director which is expressly forbidden by statute, or wilfully omits to perform any duty imposed upon him as such director by statute,
Is guilty of a misdemeanor, if no other punishment is prescribed therefor by law.
The insolvency of a banking corporation is deemed fraudulent unless its affairs appear upon investigation to have been administered fairly, legally and with the same care and diligence that agents receiving a compensation for their services are bound, by law, to observe.