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

§ 384. Entries in books; restrictions; amortization of securities. 1.\nNo savings and loan association shall by any system of accounting or any\ndevice of bookkeeping, directly or indirectly, enter any of its assets\nupon its books in the name of any individual, partnership or\nunincorporated association or of any other corporation, or under any\ntitle or designation that is not truly descriptive thereof, except as\nauthorized by the provisions of this article.\n 2. The stocks, bonds or other interest-bearing obligations purchased\nby a savings and loan association shall be entered on its books at the\nactual cost thereof, and shall not thereafter be carried upon its books\nat a valuation exceeding their cost as adjusted by amortization for the\npurpose of bringing them to par at maturity; and where securities\npurchased at a premium are callable prior to maturity, the rate of\namortization thereof shall be increased when necessary to such extent as\nshall reduce the amount at which such securities are carried upon the\nbooks to the call price at the date or dates upon which a call may be\nmade. No adjustment for amortization shall be required to be made on the\nbooks, except when the books are closed for the purpose of computing\nprofits. The superintendent may by regulation vary the requirements of\nthis subdivision to permit the amortization of premiums at the same rate\nas that required by federal tax statutes or regulations.\n 3. No savings and loan association, without the written permission of\nthe superintendent, shall enter on its books its real estate and the\nbuilding or buildings thereon, or its fixtures, vaults, furniture and\nequipment, at a valuation exceeding the actual cost thereof to such\nsavings and loan association, or carry such real estate, building or\nbuildings, fixtures, vaults, furniture or equipment on its books at a\nvaluation exceeding the actual cost less appropriate allowances for\ndepreciation. No adjustment for depreciation shall be required to be\nmade on the books except when the books are closed for the purpose of\ncomputing profits.\n 4. Real estate acquired by an association other than that acquired for\nuse as a place of business, shall be entered on the books of the\nassociation in conformity with the method of accounting for troubled\ndebt restructurings approved by the financial accounting standards board\nor such other method of accounting as may be authorized or required by\nrules and regulations of the superintendent.\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 savings and loan association 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 savings and loan association shall conform its method of\nkeeping its books and records to such orders in respect thereto as shall\nhave been made and promulgated by the superintendent. Any savings and\nloan association that refuses or neglects to obey any such order shall\nbe subject to a penalty in an amount as determined pursuant to section\nforty-four of this chapter for each day it so refuses or neglects.\n