N.Y. Banking Law § 104: Entries in books; restrictions; amortization of securities

§ 104. Entries in books; restrictions; amortization of securities. 1.

No bank or trust company shall by any system of accounting or any device

of bookkeeping, directly or indirectly enter any of its assets upon its

books in the name of any individual, partnership, unincorporated

association or of any other corporation, or under any title or

designation that is not truly descriptive thereof, except as authorized

by the provisions of this article.

2. The stocks, bonds and other interest-bearing securities purchased

by a bank or trust company shall be entered on its books at the actual

cost thereof, and shall not thereafter be carried upon the books at a

valuation exceeding their cost as adjusted by amortization for the

purpose of bringing them to par at maturity except that the same may be

carried at cost if appropriate amortization reserve is set up for the

purpose of bringing them to par at maturity. Where securities purchased

at a premium are callable prior to maturity, the rate of amortization

thereof shall be increased where necessary to such extent as shall

reduce the amount at which such securities are carried upon the books to

the call price at the date or dates upon which a call may be made;

provided, however, that no adjustment for amortization or amortization

reserve shall be required to be made on the books except when net

profits are computed. The superintendent may by regulation vary the

requirements of this subdivision to permit the amortization of premiums

at the same rate as that required by federal tax statutes or

regulations.

3. No bank or trust company shall, except with the written approval of

the superintendent, enter on its books its real estate and the building

or buildings thereon, or its fixtures, vaults, furniture and equipment,

at a valuation exceeding the actual cost to such bank or trust company,

or carry such real estate, building or buildings, fixtures, vaults,

furniture or equipment at a valuation exceeding the actual cost less

appropriate allowances for depreciation except that the same may be

carried at cost if appropriate depreciation reserve is set up; provided,

however, no adjustment for depreciation or depreciation reserve shall be

required to be made on the books except when net profits are computed.

4. Real estate acquired by a bank or trust company, other than that

acquired for use as a place of business, shall be entered on the books

of the bank or trust company in conformity with the method of accounting

for troubled debt restructurings approved by the financial accounting

standards boards or such other method of accounting as may be authorized

or required by rules and regulations of the superintendent of financial

services.

The provisions of this subdivision shall not, except as the

superintendent may otherwise require, apply to any parcel of real estate

as to which the bank or trust company has exercised its option to

transfer or convey such real estate to the veterans administration or

the federal housing commissioner pursuant to insurance or guaranty.

5. Every bank and every trust company shall conform its methods of

keeping its books and records to such orders in respect thereto as shall

have been made and promulgated by the superintendent pursuant to article

two of this chapter. Any bank or trust company that refuses or neglects

to obey such order shall be subject to a penalty in an amount as

determined pursuant to section forty-four of this chapter for each day

it so refuses or neglects.

6. Every bank and every trust company holding any funds or money paid

into court shall keep records in which it shall make an exact account

thereof, including appropriate references to the order or orders

pursuant to which such funds are held.