N.Y. BNK Law § 174

§ 174. Restrictions on purchases of, and loans on real estate. 1. No\nprivate banker shall purchase with funds held by him as private banker\nany real estate except a plot upon which there is or may be erected a\nbuilding suitable for the convenient transaction of his business; nor\nmake a loan of such funds upon the security of real estate, if such real\nestate is unimproved, in excess of two-thirds, and if such real estate\nis improved by a building or buildings or is to be improved by a\nbuilding or buildings in the process of construction, the major portion\nof which building or buildings is used, or in the case of a building\nunder construction is to be used, for residential, business,\nmanufacturing or agricultural purposes, in excess of three-fourths, of\nthe appraised value of such real estate, or in an amount which when\nadded to the amount unpaid upon prior mortgages, liens and encumbrances\nupon such real estate exceeds the foregoing respective proportions of\nsuch appraised value, or if such real estate is subject to a prior\nmortgage, lien or encumbrance and the amount unpaid upon such prior\nmortgage, lien or encumbrance or the aggregate amount unpaid upon all\nprior mortgages, liens and encumbrances exceeds ten per centum of the\npermanent capital of such private banker.\n 2. All real estate acquired by a private banker in satisfaction or\nreduction of loans of funds held by him as a private banker, shall be\nsold within five years from the date of its acquisition, unless the\nsuperintendent upon application shall extend the time within which such\nsale shall be made.\n