N.Y. Banking Law Section 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 2 (Department of Financial Services)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 § 44 (Violations)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.

Source: Section 104 — Entries in books; restrictions; amortization of securities, https://www.­nysenate.­gov/legislation/laws/BNK/104 (updated Sep. 22, 2014; accessed Jun. 15, 2024).

94
Change from bank to trust company
96
General powers
96‑A
Servicing of mortgages by banks
96‑B
Payroll payment by banks or trust companies
96‑C
Power to act as trustee under self-employed retirement trust or individual retirement trust
96‑D
Banking development districts
97
Power to purchase securities and stocks
98
Power to take and hold real estate
98‑A
Club accounts
100
Fiduciary powers
100‑A
Fiduciary capacities
100‑B
Investments as fiduciary
100‑C
Common trust funds
100‑D
Foreign common trust funds
101
Additional powers of certain trust companies
102
Powers of specially chartered trust companies
102‑A
Limited liability trust companies
103
Restrictions on loans, purchases of securities and total liabilities to bank or trust company of any one person
104
Entries in books
105
Branch offices
105‑A
Electronic facilities
105‑B
Trust offices
106
Deposits by banks and trust companies with other banking corporations and private bankers
107
Reserves against deposits
107‑A
Security for public deposits
108
Rates of interest
108‑A
Acceptance of United States currency
109
Closing of books
110
Surplus fund
111
Profits
112
Dividends
113
Change of location
114
Assessment of stockholders to make good impairment of capital stock
121
Reports to directors
122
Examinations of banks and trust companies by directors
123
Reports of directors’ examinations
124
Communications from department of financial services to be submitted to directors and noted in minutes
125
Reports to superintendent
128
Preservation of books and records
129
Requirement of notice on withdrawal of certain time deposits
129‑A
Requirement of written notification
130
Restrictions on officers, directors and employees
131
Prohibitions against encroachments upon certain powers of banks and trust companies
132
Use of sign, or words, indicating bank or trust company by unauthorized persons prohibited
133
Use of banking institution name
134
Repayment of deposits standing in the names of minors, trustees or joint depositors
136
Change of national banking association into state bank by conversion or merger
136‑A
Purchase of assets of national banking association by bank or trust company
136‑B
Approval of superintendent
136‑C
Effect of merger or conversion of national banking association into state bank
137
Change of state bank into national banking association by conversion, merger or consolidation
138
Foreign branches
139
Saving clause
140‑A
Stock option plans

Accessed:
Jun. 15, 2024

Last modified:
Sep. 22, 2014

§ 104’s source at nysenate​.gov

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