N.Y. Banking Law § 459: Allowance for loan loss

§ 459. Allowance for loan loss. An allowance for loan loss account

shall be established and maintained in an amount that represents the

current estimated loss on loans. The allowance for loan loss account

requirement shall be computed and adjusted, through the provision for

loan loss account, prior to the payment of dividends.

The calculation of this account shall be in accordance with the rules

established by the National Credit Union Administration.