New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 50 - Mutual Trust Investment Companies › Valuation Investments › Section 50.21 - Method of valuation

Current through Register Vol. 46, No. 28, July 10, 2024
The following method shall be used in the valuation of
					 investments:
(a) Investments shall be
				  valued by reference to appropriate valuations applied by a generally accepted
				  pricing service, or by the methods set forth below. All estimates, quotation
				  sheets and valuations used for valuations shall be retained in the records of
				  the mutual trust investment company.
(b)
(1) In
				  the case of an obligation of the United States, or of an obligation for which
				  the faith of the United States is pledged for the payment of the interest and
				  principal, the mutual trust investment company shall use for the valuation of
				  such investment the mean of the most recent dealer bid and asked prices
				  appearing within the five business days next preceding the valuation date in
				  newspapers or general circulation published in the City of New York, in
				  standard financial periodicals or in current dealer communications. Obligations
				  of the United States which may be redeemable at less than par prior to maturity
				  or which are not saleable without exchange shall be valued at par.
(2) In the case of a security listed on a
				  national securities exchange registered under section 6 of the Federal
				  Securities Exchange Act of 1934, or on the NASDAQ National Market, the mutual
				  trust investment company shall use for the valuation thereof the last reported
				  sale price, unless there have been no reported sales within the five business
				  days preceding the valuation date in which event the most recent bid price
				  shall be used. For the purpose of this paragraph, reported sales prices and bid
				  prices shall be those appearing in newspapers of general circulation published
				  in the city of New York, in standard financial periodicals, or on the records
				  of a registered national exchange or the National Association of Securities
				  Dealers. If the mutual trust investment company believes that the last reported
				  sales price or bid price does not fairly represent the values of the security,
				  then the company may, after expressing that view in writing for its records
				  along with the reasons for it, use as an alternative the valuation method in
				  paragraph (3) of this subdivision.
(3) If neither recorded sales nor bid and
				  asked prices are available as provided above, and in the case of all
				  investments other than those mentioned above, except investments in mortgages,
				  the mutual trust investment company shall obtain from not less than two
				  bankers, brokers, dealers or other persons qualified in the opinion of the
				  mutual trust investment company to give an opinion as to the value of the
				  investment in question a written estimate of the value of such investment as of
				  the close of business on the last business day prior to the valuation date. The
				  average of such estimates shall be used, and each such estimate shall be
				  retained in the records of the mutual trust investment company.