New York Banking Law
Restrictions on Investments
1. Every private banker may, subject to the limitations and restrictions contained in this article, make such investments of funds held by him as a private banker in real or personal securities, or personal property, as are consistent with safety and prudence of management.
2. No private banker shall appropriate to his own use or lend to any person with whom he is associated as a partner, or invest in any business conducted by a partnership of which he is a member, any funds held by him as a private banker.
3. No private banker shall, after June thirtieth, nineteen hundred thirty-eight, make with funds held by him as a private banker any loan to, or investment in the capital stock of, any corporation of which fifty per centum of the capital stock is owned or controlled directly or indirectly, or as a result of any such investment would be so owned or controlled by such private banker, as a private banker and as an individual, or if such private banker is a partnership, by such partnership and the individual members thereof, if as a result thereof the total amount of outstanding loans and investments so made after such date will exceed ten per centum of his permanent capital with respect to any one such corporation, or will exceed twenty-five per centum of his permanent capital with respect to all such corporations.