Sec. 12.2. Limited authorization; delegation

(a) The superintendent hereby grants permission to banks and trust companies to acquire any single residence or similar facility within or without the United States, as described in section 12.1 of this Part in an amount not exceeding $700,000 or two and one half percent of capital stock, surplus and undivided profits, whichever is greater or lease any single residence or similar facility where total payments over the term of the lease and the term or terms of any renewal option provided in the lease will not exceed $700,000 or two and one half percent of capital stock, surplus and undivided profits, whichever is greater. Individual acquisitions or leases exceeding these limits will require prior approval of the superintendent.

(b) All investments by the bank or trust company in such real property, including leasehold improvements and capitalized leases, when added to the amount invested by the bank or trust company pursuant to section 98(1)(a) of the Banking Law, shall not exceed the limitations set forth in section 98(1)(a).

(c) The bank or trust company shall agree in writing that within one year after the cessation of the use of said real property as the residence or similar facility for use of any director, officer or employee of the bank or trust company, it shall dispose of such real property or shall terminate its liability as tenant or sublessee, if applicable, on any leased premises; provided, however, that the superintendent may, upon a showing of good cause, extend the time within which the bank or trust company must dispose of such real property.