N.Y. Banking Law § 384: Entries in books; restrictions; amortization of securities

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

No savings and loan association 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 or

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 or other interest-bearing obligations purchased

by a savings and loan association shall be entered on its books at the

actual cost thereof, and shall not thereafter be carried upon its books

at a valuation exceeding their cost as adjusted by amortization for the

purpose of bringing them to par at maturity; and where securities

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

amortization thereof shall be increased when 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. No adjustment for amortization shall be required to be made on the

books, except when the books are closed for the purpose of computing

profits. 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 savings and loan association, without the written permission of

the superintendent, shall 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 thereof to such

savings and loan association, or carry such real estate, building or

buildings, fixtures, vaults, furniture or equipment on its books at a

valuation exceeding the actual cost less appropriate allowances for

depreciation. No adjustment for depreciation shall be required to be

made on the books except when the books are closed for the purpose of

computing profits.

4. Real estate acquired by an association other than that acquired for

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

association in conformity with the method of accounting for troubled

debt restructurings approved by the financial accounting standards board

or such other method of accounting as may be authorized or required by

rules and regulations of the superintendent.

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 savings and loan association 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 savings and loan association shall conform its method of

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

have been made and promulgated by the superintendent. Any savings and

loan association that refuses or neglects to obey any 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.