N.Y. Banking Law Section 257
Duties of trustees and officers


1.

Trustees and officers shall discharge the duties of their respective positions in good faith and with that degree of diligence, care and skill which prudent men would exercise under similar circumstances in like positions. In discharging their duties, trustees and officers, when acting in good faith, may rely (a) upon financial statements of the savings bank represented to them to be correct by the president or the officer of the savings bank having charge of the books of account, or stated in a written report by an independent public or certified public accountant or firm of such accountants fairly to reflect the financial condition of such savings bank and (b) upon reports required to be submitted to them by any provision of this chapter or prepared in the ordinary course of business by an officer or committee charged with the responsibility therefor. Nothing in this section shall be deemed to require the trustees to perform functions vested in any committee, officer or other person pursuant to the provisions of any other section of this chapter.

2.

An action may be brought against one or more trustees or officers of a savings bank to procure a judgment for the following relief:

(a)

To compel the defendant to account for his official conduct in the following cases:

(1)

The neglect of, or failure to perform, or other violation of his duties in the management and disposition of the savings bank’s assets committed to his charge.

(2)

The acquisition by himself, transfer to others, loss or waste of the savings bank’s assets due to any neglect of or failure to perform, or other violation of his duties.

(b)

To set aside a conveyance, assignment or transfer of the savings bank’s assets by one or more trustees or officers, contrary to a provision of law, where the transferee knew the purpose of the transfer.

(c)

To enjoin such a conveyance, assignment or transfer of the savings bank’s assets by one or more of the trustees or officers where there is good reason to apprehend that it will be made.

3.

Subject to § 631 (Actions against directors, trustees, managers or officers for violation of their official duties)section six hundred thirty-one of this chapter, an action may be brought for the relief provided in this section by a savings bank or an officer, trustee or judgment creditor thereof.

4.

This section shall not affect any liability otherwise imposed by law upon any trustee or officer.

Source: Section 257 — Duties of trustees and officers, https://www.­nysenate.­gov/legislation/laws/BNK/257 (updated Sep. 22, 2014; accessed Dec. 21, 2024).

229
Application
230
Incorporation
232
Organization certificate to be submitted to superintendent
233
When corporate existence begins
234
General powers
234‑A
Settlement, modification or readjustment of investment
234‑B
Trust powers
235
Investment of funds
235‑B
Effect of usury
235‑C
Regulation of certain charges
235‑D
Service corporations owned by savings banks
236
Deposits by savings banks with other banking corporations and private bankers
237
Deposits with savings banks
238
Regulations and restrictions as to repayment of deposits
239
Repayment of deposits of minors, trust deposits, joint deposits, and deposits adversely claimed
239‑A
Preservation of books and records
240
Restrictions as to place of business
240‑A
Electronic facilities
240‑B
Acceptance of United States currency
241
Change of location
242
Assets
243
Surplus fund
244
Earnings
245
Interest payments
246
Board of trustees
246‑A
Executive committee and other committees
247
Restrictions upon trustees and officers
248
Removal and forfeiture of office of trustee
249
Compensation of trustees and officers
250
Pensions
251
Meetings
252
Reports to trustees
253
Official communications from department of financial services to be submitted to trustees and noted in minutes
254
Examinations by trustees
255
Reports to superintendent
255‑A
Publication and delivery of annual report
256
Photographic reproduction of records
257
Duties of trustees and officers
258
Prohibition of unauthorized savings banks and use of the word “savings”
260
Charters of all savings banks conformed to this article
260‑A
Amendment of organization certificate and by-laws
260‑B
Conversion of a savings bank into a savings and loan association

Accessed:
Dec. 21, 2024

Last modified:
Sep. 22, 2014

§ 257’s source at nysenate​.gov

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