N.Y. Banking Law Section 242
Assets

  • how entered and carried on books
  • disallowance by superintendent

1.

No savings bank 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, promissory notes or other interest-bearing obligations purchased by a savings bank 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; 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 net earnings. 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 bank, without the written approval 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 its actual cost to such savings bank, or carry such real estate, building or buildings, fixtures, vaults, furniture or equipment at a valuation exceeding the actual cost less appropriate allowance 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 net earnings.

4.

Real estate acquired by a savings bank, other than that acquired for use as a place of business, shall be entered on the books of the savings bank 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 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 savings bank 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.

The superintendent may disallow the book value of any assets in whole or in part. In such event the savings bank shall reduce the value at which such assets are carried on its books to the value allowed by the superintendent, or, if the written approval of the superintendent is first obtained, may allocate a reserve for the valuation of such assets.

Source: Section 242 — Assets; how entered and carried on books; disallowance by superintendent, https://www.­nysenate.­gov/legislation/laws/BNK/242 (updated Sep. 22, 2014; accessed Mar. 23, 2024).

229
Application
230
Incorporation
232
Organization certificate to be submitted to superintendent
233
When corporate existence begins
234
General powers
234–A
Settlement, modification or readjustment of investment
234–B
Trust powers
235
Investment of funds
235–B
Effect of usury
235–C
Regulation of certain charges
235–D
Service corporations owned by savings banks
236
Deposits by savings banks with other banking corporations and private bankers
237
Deposits with savings banks
238
Regulations and restrictions as to repayment of deposits
239
Repayment of deposits of minors, trust deposits, joint deposits, and deposits adversely claimed
239–A
Preservation of books and records
240
Restrictions as to place of business
240–A
Electronic facilities
240–B
Acceptance of United States currency
241
Change of location
242
Assets
243
Surplus fund
244
Earnings
245
Interest payments
246
Board of trustees
246–A
Executive committee and other committees
247
Restrictions upon trustees and officers
248
Removal and forfeiture of office of trustee
249
Compensation of trustees and officers
250
Pensions
251
Meetings
252
Reports to trustees
253
Official communications from department of financial services to be submitted to trustees and noted in minutes
254
Examinations by trustees
255
Reports to superintendent
255–A
Publication and delivery of annual report
256
Photographic reproduction of records
257
Duties of trustees and officers
258
Prohibition of unauthorized savings banks and use of the word “savings”
260
Charters of all savings banks conformed to this article
260–A
Amendment of organization certificate and by-laws
260–B
Conversion of a savings bank into a savings and loan association

Accessed:
Mar. 23, 2024

Last modified:
Sep. 22, 2014

§ 242’s source at nysenate​.gov

Link Style