N.Y. Banking Law Section 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 § 44 (Violations)section forty-four of this chapter for each day it so refuses or neglects.

Source: Section 384 — Entries in books; restrictions; amortization of securities, https://www.­nysenate.­gov/legislation/laws/BNK/384 (updated Sep. 22, 2014; accessed Mar. 23, 2024).

375
Incorporation
376
Proposed by-laws
377
When corporate existence begins
378
Power to issue shares
378–A
Time deposits
378–B
Club accounts
378–C
Excelsior linked deposit program
378–D
Preservation of books and records
378–E
Water pollution control linked deposit program
379
Power to invest in securities
379–B
Service corporation owned by associations
380
Power to make loans
380–A
Power to purchase mortgage, loan or investment
380–B
Power to purchase mortgages from mortgage holders
380–C
Power to participate in certain loans and mortgage investments
380–E
Effect of usury
380–F
Power to make advances of federal funds
380–G
Power to engage in line of credit financing of residential real estate
380–H
Trust powers
380–I
Personal loan departments
380–J
Authorization to acquire and lease personal property
380–K
Investment in promissory notes
380–L
Excelsior linked deposit program
380–M
Water pollution control linked deposit program
381
Power to take and hold real estate
382
Power to borrow
382–A
Power to act as trustee under self-employed retirement trust and of individual retirement account
382–B
Power to issue certain obligations
383
Other powers
383–A
Rental of safe deposit boxes
384
Entries in books
385
Surplus account
386
Profits
387
Credits to surplus account and undivided profits
388
Fines and penalties for failure to make payments on instalment shares
389
Matured shares
390
Withdrawal of unpledged shares
392
Retirement of shares
393
Repayment of mortgage loans
394
Joint shares
395
Alternative provisions relative to payment of interest to shareholders
396
Change of location
396–A
Electronic facilities
396–B
Acceptance of United States currency
397
Number, qualifications and disqualifications of directors
397–A
Report to directors
398
Filling of vacancies in board of directors
398–A
Forfeiture of office of director
398–B
Duties of directors and officers
398–C
Executive committee and other committees
399
Restrictions on directors and officers
399–A
Restrictions on holding of certain offices by executive officers of federal savings banks and federal savings associations
400
Pensions
401
Official communications to be submitted to directors and noted in minutes
402
Amendment of articles of association and by-laws
403
Examination by directors
404
Reports to the superintendent
404–A
Photographic reproduction of records
405
Annual report to shareholders
406
Charters conformed to this article
407
Exemptions
409
Conversion of a state savings and loan association into a federal savings and loan association
410
Conversion of a federal savings and loan association into a state savings and loan association
411
Conversion of a savings and loan association or federal savings and loan association into a savings bank
412
Conversion of federal savings institutions to state charter
413
Reciprocal interstate acquisitions

Accessed:
Mar. 23, 2024

Last modified:
Sep. 22, 2014

§ 384’s source at nysenate​.gov

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