(a) Pursuant to Banking Law, sections 235(28-b) and 380-j, a savings bank and a savings and loan association may acquire and lease personal property.

(b) Such leases are subject only to the same limitations as are imposed on such investments for commercial banks or trust companies under Banking Law, section 96(12) and, to the extent they are deemed to be loans, to individual borrowing limitations.

(c) For loan limit purposes, such leases are considered to be secured loans to the lessee except to the extent there is a net unrecovered investment at the end of the lease term. To that extent, the lease is considered an unsecured loan.

(d) Lease payments are considered to be in the nature of rent and not interest.

(e) All leases authorized hereunder must be on a nonoperating basis. For instance, for purposes of automobile leasing, the savings bank or savings and loan association may not directly or indirectly, provide for the servicing, repair or maintenance of the leased vehicle during the lease term; purchase parts and accessories in bulk or for an individual vehicle after the lessee has taken delivery of the vehicle; provide for the loan of an automobile during servicing of the leased vehicle; purchase insurance for the lessee; or provide for the renewal of the vehicle's license merely as a service to the lessee where the lessee could renew the license without authorization from the lessor.