§ 104 — Entries in books; restrictions; amortization of securities

§ 104. Entries in books; restrictions; amortization of securities. 1.\nNo bank or trust company shall by any system of accounting or any device\nof bookkeeping, directly or indirectly enter any of its assets upon its\nbooks in the name of any individual, partnership, unincorporated\nassociation or of any other corporation, or under any title or\ndesignation that is not truly descriptive thereof, except as authorized\nby the provisions of this article.\n 2. The stocks, bonds and other interest-bearing securities purchased\nby a bank or trust company shall be entered on its books at the actual\ncost thereof, and shall not thereafter be carried upon the books at a\nvaluation exceeding their cost as adjusted by amortization for the\npurpose of bringing them to par at maturity except that the same may be\ncarried at cost if appropriate amortization reserve is set up for the\npurpose of bringing them to par at maturity. Where securities purchased\nat a premium are callable prior to maturity, the rate of amortization\nthereof shall be increased where necessary to such extent as shall\nreduce the amount at which such securities are carried upon the books to\nthe call price at the date or dates upon which a call may be made;\nprovided, however, that no adjustment for amortization or amortization\nreserve shall be required to be made on the books except when net\nprofits are computed. The superintendent may by regulation vary the\nrequirements of this subdivision to permit the amortization of premiums\nat the same rate as that required by federal tax statutes or\nregulations.\n 3. No bank or trust company shall, except with the written approval of\nthe superintendent, enter on its books its real estate and the building\nor buildings thereon, or its fixtures, vaults, furniture and equipment,\nat a valuation exceeding the actual cost to such bank or trust company,\nor carry such real estate, building or buildings, fixtures, vaults,\nfurniture or equipment at a valuation exceeding the actual cost less\nappropriate allowances for depreciation except that the same may be\ncarried at cost if appropriate depreciation reserve is set up; provided,\nhowever, no adjustment for depreciation or depreciation reserve shall be\nrequired to be made on the books except when net profits are computed.\n 4. Real estate acquired by a bank or trust company, other than that\nacquired for use as a place of business, shall be entered on the books\nof the bank or trust company in conformity with the method of accounting\nfor troubled debt restructurings approved by the financial accounting\nstandards boards or such other method of accounting as may be authorized\nor required by rules and regulations of the superintendent of financial\nservices.\n The provisions of this subdivision shall not, except as the\nsuperintendent may otherwise require, apply to any parcel of real estate\nas to which the bank or trust company has exercised its option to\ntransfer or convey such real estate to the veterans administration or\nthe federal housing commissioner pursuant to insurance or guaranty.\n 5. Every bank and every trust company shall conform its methods of\nkeeping its books and records to such orders in respect thereto as shall\nhave been made and promulgated by the superintendent pursuant to article\ntwo of this chapter. Any bank or trust company that refuses or neglects\nto obey such order shall be subject to a penalty in an amount as\ndetermined pursuant to section forty-four of this chapter for each day\nit so refuses or neglects.\n 6. Every bank and every trust company holding any funds or money paid\ninto court shall keep records in which it shall make an exact account\nthereof, including appropriate references to the order or orders\npursuant to which such funds are held.\n