Exhibit 8.1 Opinion of Serchuk & Zelermyer, LLP regarding tax matters August 3, 1998 CNY Financial Corporation 1 North Main Street Cortland, New York 13045 Ladies and Gentlemen: You have requested our opinion regarding material federal income tax consequences of the proposed conversion of Cortland Savings Bank (the "Bank") from a state chartered mutual savings bank to a state chartered stock savings bank (the "Conversion"), the sale of all of the outstanding capital stock of the Bank to CNY Financial Corporation, a Delaware corporation (the "Company"), and the sale by the Company of up to 8,100,312 shares of its common stock, par value of $.01 per share (the "Common Stock") to the Bank's Eligible Account Holders, Employee Plans and Supplemental Eligible Account Holders, and to certain other parties, pursuant to the Plan of Conversion of Cortland Savings Bank adopted by the Board of Trustees of the Bank on March 23, 1998, as amended (the "Plan"). These and related transactions are described in the Plan and in the prospectus included in the Company's Registration Statement filed on Form S-1 with the Securities and Exchange Commission in connection with the Conversion (the "Prospectus"). All capitalized terms used but not defined in this letter shall have the meanings set forth in the Plan or Prospectus. In connection with the opinions expressed below, we have examined and relied upon originals, or copies certified or otherwise identified to our satisfaction, of the Plan and the Prospectus and of such corporate records of the Bank and the Company as we have deemed appropriate. We have also relied, without independent verification, upon the representations of the Bank and the Company. We have assumed that the Bank, the Company and other parties will act in accordance with the Plan, and that the representations made by the Bank and the Company are true. In addition, we have made such investigations of law as we have deemed appropriate to form a basis for the opinions expressed below. Based on and subject to the foregoing, it is our opinion that, for federal income tax purposes, under current law: 1. The Conversion in accordance with the Plan will qualify as a reorganization under Section 368(a)(1)(F) of the Code, and no gain or loss will be recognized by the Bank in either its mutual form or its stock form, or by the Company, by reason of the proposed Conversion. CNY Financial Corporation August 3, 1998 Page 2 2. No gain or loss will be recognized by the Bank upon the receipt of money from the Company for stock of the Bank, and no gain or loss will be recognized by the Company upon the receipt of money for the Common Stock. 3. The assets of the Bank in either its mutual or its stock form will have the same basis before and after the Conversion. 4. The holding period of the assets of the Bank will include the period during which the assets were held by the Bank in its mutual form prior to the Conversion. 5. No gain or loss will be recognized by the Eligible Account Holders and Supplemental Eligible Account Holders upon the issuance to them of withdrawable deposit accounts in the Bank after the Conversion in the same dollar amount as their savings accounts in the Bank plus an interest in the liquidation account of the Bank after the Conversion in exchange for their savings accounts in the Bank prior to the Conversion. 6. The receipt by Eligible Account Holders and Supplemental Eligible Account Holders of nontransferable subscription rights to purchase shares of the Common Stock under the Plan is taxable to Eligible Account Holders and Supplemental Eligible Account Holders to the extent the subscription rights have value. 7. The basis of each account holder's savings accounts in the Bank after the Conversion will be the same as the basis of his or her savings accounts in the Bank prior to the Conversion, decreased by the fair market value of the non-transferable subscription rights received and increased by the amount, if any, of gain recognized on the exchange 8. The basis of each account holder's interest in the liquidation account will be zero. 9. The holding period of the Common Stock acquired through the exercise of subscription rights shall begin on the date on which the subscription rights are exercised. 10. The Bank in its stock form will succeed to and take into account the earnings and profits or deficit in earnings and profits of the Bank, in its mutual form, as of the date of Conversion. 11. The Bank, immediately after Conversion, will succeed to the bad debt reserve accounts of the Bank, in its mutual form, and the bad debt reserves will have the same character in CNY Financial Corporation August 3, 1998 Page 3 the hands of the Bank after Conversion as if no distribution or transfer had occurred. 12. The creation of the liquidation account will have no effect on the Bank's taxable income, deductions, or addition to reserve for bad debts either in its mutual or stock form. 13. For purposes of the New York State banking and franchise tax, imposed by Article 32 of the New York Tax Law, and for the purposes of the New York personal income tax under Article 22 which may be applicable to Eligible Account Holders, Supplemental Eligible Account Holders and other investors who purchase shares pursuant to the Company's Registration Statement on Form S-1 (the "Registration Statement") who receive non-transferrable subscription rights or who purchase stock in the Conversion, the Conversion will be treated the same for New York State tax purposes as for federal tax purposes under the Internal Revenue Code, as set forth above. Except as set forth above, we express no opinion to any party as to the tax consequences, whether federal, state, local or foreign, of the Conversion or of any transaction related thereto or contemplated by the Plan. Without limiting the generality of the preceding sentence, no opinion is expressed herein regarding the tax consequences of the donation of Common Stock to the Foundation as described in the Prospectus. This opinion is given solely for the benefit of the parties to the Plan and Eligible Account Holders, Supplemental Eligible Account Holders and other investors who purchase shares pursuant to the Company's Registration Statement, and may not be relied upon by any other party or entity or referred to in any document without our express written consent. We consent to the filing of this opinion as an exhibit to the Registration Statement and to the Application for Conversion on Form 86-AC of the Bank. Very truly yours, /s/ Serchuk & Zelermyer, LLP Serchuk & Zelermyer, LLP