2006 New York Code - 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  banking  board  may  by  general  regulation
  adopted  by a three-fifths vote of all its members 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 banking board.
    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 of one hundred dollars
  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.