N.Y. Coop. Corp. Law § 121
Any credit corporation organized under this chapter may make loans to members of a cooperative corporation owning in whole or in part the stock of the credit corporation; and no loans shall be otherwise made. No loans shall be made for more than ten years; nor for other than the agricultural, dairy, or horticultural purposes of the borrower. In all cases, there shall be a written statement by the borrower in the note, collateral agreement or signed application to the effect that the loan will be used only for such purposes; and such statement may be relied upon by the credit corporation. The credit corporation may discount or pledge such note with a federal intermediate credit bank, or other banks or banking institutions, with its guaranty or endorsement, if required.
A credit corporation may invest its capital funds in bonds or obligations of the United States or of any state or municipality, or such other bonds as are authorized for investment by a savings bank or in federal intermediate credit bank obligations, and may deposit or hypothecate such securities with a federal intermediate credit bank, or other banks or banking institutions, as security for notes discounted by it.
N.Y. Coop. Corp. Law § 121