N.Y. General Business Law 396-A – Representation by savings and loan association of insurance on accounts
§ 396-a. Representation by savings and loan association of insurance on accounts. 1. No savings and loan association, building and loan association, cooperative bank or homestead association organized in this or any other state, other than one whose accounts are insured by an agency of the United States and which is specifically named in the representation, shall in or from this state, or to any person in this state, make any representation, oral or written, that any of its shares, certificates or accounts are insured or guaranteed unless such representation also includes: (a) the name and address of the insurer or guarantor, (b) the name of the state or country where the insurer or guarantor is incorporated or organized, (c) the phrase "an agency of (name of state)", if such be the case, or the phrase "a commercial company", if such be the case, and (d) the maximum amount of the insurance or guaranty applicable to each of its accounts. If the representation of insurance is made in writing, the statements specified in (a), (b), (c) and (d) above shall be set forth in not less than ten-point type.
Terms Used In N.Y. General Business Law 396-A
- 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.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
2. Whenever the superintendent of financial services shall report a violation of this section to the attorney-general or the attorney-general shall believe from evidence satisfactory to him that a violation of this section has occurred, the attorney-general may bring an action in the name of the superintendent or in behalf of the people of the state, as the case may be, to enjoin further violation. In the action preliminary relief may be granted as under Article 63 of the civil practice law and rules.
3. Before seeking to enjoin a violation of this section, the attorney-general shall give to the person, association, corporation or other organization against whom a proceeding is contemplated appropriate notice and an opportunity to show orally and in writing why proceedings should not be instituted against him or it.
4. Nothing herein contained shall be construed to limit or restrict the application of Article 23-A of the general business law to savings and loan associations, building and loan associations, cooperative banks or homestead associations.
5. A violation of subdivision one shall constitute a misdemeanor.