N.Y. Comp. Codes R. & Regs. tit. 3 § 63.7
A savings bank may, pursuant to Banking Law, section 234(14), transfer to a savings banks trust company, as trustee or agent upon such terms as may be agreed upon, for the purpose of liquidation, discharge, readjustment, improvement or rehabilitation, for the account and the expense of such savings bank, any property, security, investment, bond, mortgage, chose-in-action, or other security of whatever character and, notwithstanding any provision of law relating to the investment of its funds, take and hold any such savings banks trust company's certificate of deposit therefor, and any resulting income, money, property, security, investment, bond, mortgage, chose-in-action or other security of whatever character arising out of the management, liquidation, readjustment, improvement or rehabilitation thereof.
N.Y. Comp. Codes R. & Regs. Tit. 3 § 63.7