§ 420-a. State savings and loan insurance fund. 1. There is hereby created the "state savings and loan insurance fund". The fund shall be a corporate governmental agency constituting a public benefit corporation. It shall have the powers and privileges of a corporation, and under its corporate name all of its business shall be transacted, all funds invested, all warrants for money drawn and payments made, and all cash and securities and other personal property shall be held.

2. The fund shall be administered by six trustees, four of whom shall be appointed by the governor with the advice and consent of the senate, one shall be elected by the insured members and one shall be elected by the board of directors of the Savings and Loan Bank of the State of New York from their own number. The trustees of the fund first appointed by the governor shall serve for terms ending December thirty-first in nineteen hundred sixty-eight, nineteen hundred sixty-nine, nineteen hundred seventy and nineteen hundred seventy-one, respectively. Persons appointed for full terms as their successors shall serve for four years each commencing as of January first next following the year in which the term of his predecessor expired. The trustee elected by the insured members shall serve for a term ending on December thirty-first, nineteen hundred sixty-nine and the trustee elected by the board of directors of the savings and loan bank of the state of New York shall serve for a term ending on December thirty-first, nineteen hundred seventy-one. Persons elected for full terms as their successors shall serve for four years each commencing as of January first next following the year in which the term of his predecessor expired. In the event of a vacancy occurring in the office of an appointed trustee by death, resignation or otherwise, the governor shall appoint a successor in the same manner as an original appointment to serve for the balance of the unexpired term. If, for the previously stated reasons, a vacancy occurs in the office of an elected trustee, said vacancy shall be filled for the unexpired term by special election.

3. The trustees of the fund shall serve without salary, but each trustee shall be entitled to reimbursement for his actual and necessary expenses incurred in the performance of his official duties and to a fee of one hundred dollars per day when rendering service as such member, provided that the aggregate amount of such fees payable to any one trustee in any one fiscal year shall not exceed the sum of five thousand dollars.

4. The trustees of the fund may engage in private employment, or in a profession or business, subject to the limitations contained in sections seventy-three and seventy-four of the public officers law. The fund shall, for the purposes of such sections, be a "state agency", and the trustees thereof shall be "officers" of the agency for the purposes of said sections.

5. Notwithstanding any inconsistent provisions of law, general, special or local, no officer or employee of the state, or of any civil division thereof, shall be deemed to have forfeited or shall forfeit his office or employment by reason of his acceptance of appointment as a trustee, officer or agent of the fund; provided, however, that a trustee, officer or agent who holds such other public office or employment shall receive no additional compensation, fee or allowance for services rendered pursuant to this article, but shall be entitled to reimbursement for his actual and necessary expenses incurred in the performance of such services.

6. The governor may remove any trustee for inefficiency, neglect of duty or misconduct in office after giving him a copy of the charges against him and an opportunity to be heard, in person or by counsel, in his defense, upon not less than ten days notice. If any trustee shall be removed, the governor shall file with the secretary of state a complete statement of charges made against the trustee, and his findings thereon, together with a complete record of the proceedings.

7. The chairman of the board of trustees shall be designated by the governor. He shall preside over all meetings of the trustees and shall have such other duties as the trustees may direct. A vice-chairman who shall preside over all meetings of the fund in the absence of the chairman and who shall have such other duties as the trustees may direct may be designated from time to time by the trustees from among the other trustees.

8. The powers of the fund shall be vested in and exercised by no less than four of the trustees then in office. The fund may delegate to one or more of its trustees, or officers, agents or employees, such powers and duties as the trustees may deem proper, provided, however, that all contracts involving an estimated expense of ten thousand dollars or more shall be approved prior to execution by no less than four trustees of the fund.

9. The fund shall be subject to an examination by the superintendent of financial services at least once in each calendar year.

10. Within three days, Saturdays, Sundays and holidays excepted, after each meeting of the trustees of the fund, the secretary or other officer of the fund in charge of the minutes of the proceedings of the trustees shall transmit to the superintendent of financial services at his office in Albany three certified copies of the minutes of every meeting of the trustees for his information.

11. The fund shall become operative when the total aggregate of the savings deposits of its members amount to five hundred million dollars or more and shall continue so long as it shall have bonds, insurance or other obligations outstanding and until its existence shall be terminated by law. Upon the termination of the existence of the fund, all its rights and properties shall pass to and be vested in the state.

12. Before becoming operative the fund shall adopt, and obtain the approval of the superintendent, of by-laws for its organization, management and operations. Any amendment of the by-laws shall require the prior approval of the superintendent.