2023 New York Laws › BNK - Banking › Article 6 - Savings Banks › 242 - Assets; How Entered and Carried on Books; Disallowance by Superintendent.

§ 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.