Section 511 - Borrowings and subordinated securities(a) A savings bank may:(i) borrow money to repay deposits,(ii) borrow money from a Federal Reserve Bank or a Federal Home Loan Bank,(iii) borrow money for any purpose other than repayment of deposits in amounts not in excess of five percent of the book value of its assets and for a period not in excess of three months and in any larger amount or for any longer period authorized by the department, and(iv) acquire reserve balances at a Federal Reserve Bank or other reserve agent from a member or nonmember bank without limitation. A savings bank may issue notes, debentures and other obligations to evidence borrowings.(b) Notes, debentures and other obligations issued by a savings bank shall be deemed "subordinated securities" for the purpose of this act if they:(i) are subordinated in right of payment, in the event of insolvency or liquidation of the savings bank, to the prior payment of all deposits of the savings bank and of all claims of other creditors of the savings bank except the holders of securities on a parity therewith and the holders of securities expressly subordinated thereto,(ii) are authorized by action of at least a majority of all the trustees of the savings bank,(iii) contain provisions for amortization, serial maturities, transfers to a sinking fund, allocation of reserves or such other provisions as the department may require, and(iv) are approved by the department prior to the issue thereof.1965, Nov. 30, P.L. 847, No. 356, § 511. Amended 1968, Nov. 27, P.L. 1104, No. 345, § 3; 1979, Dec. 13, P.L. 527, No. 116, § 3, imd. effective.