New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter A - BANKING ORGANIZATIONS › Part 322 - Pledge Of Assets And Maintenance Of Assets By Licensed Foreign Banking Corporations In New York › Section 322.3 - Eligible assets

Current through Register Vol. 46, No. 28, July 10, 2024
For the purpose of section 202-b (2)  of the Banking
					 Law and Part 52 of this Title, the term eligible assets shall include any
					 assets (reduced by the amount of any specifically allocated reserves
					 established on the books in connection with such assets) held in this State and
					 recorded on the general ledger of a licensed branch or agency of the foreign
					 banking corporation, subject, however, to the following adjustments and
					 situations:
(a) Marketable debt
				  securities shall be allowed at their principal amount or market value,
				  whichever is lower.
(b)
				  Restructured foreign debt bonds backed by United States Treasury obligations
				  (commonly known as "Brady Bonds"), whether carried on the books of the branch
				  or agency as loans or securities, shall be allowed at their book value or
				  market value, whichever is lower.
(c) Equity securities shall be
				  ineligible.
(d) The balance from
				  time to time of any assets classified loss, doubtful or substandard at the
				  preceding examination by the superintendent, any other regulatory agency,
				  outside accountants or the bank's internal loan review staff, shall be
				  ineligible to the extent of 100 percent, 50 percent and 20 percent,
				  respectively. Assets classified value impaired shall be ineligible to the
				  extent of 100 percent of the amount of allocated transfer risk reserve which
				  would be required for such exposure at a domestically chartered bank and 20
				  percent of any residual exposure. For assets classified at the preceding
				  examination by the superintendent or any other regulatory agency, if the
				  deficiency or defect giving rise to the classification shall be removed
				  subsequent to the examination, the department, will, upon written request
				  supported by appropriate documentation, reconsider the
				  classification.
(e) Accrued income
				  on assets classified loss, doubtful, substandard or value impaired shall be
				  ineligible.
(f) The balance from
				  time to time of any other asset or asset category disallowed at the preceding
				  examination or by direction of the superintendent for any other reason shall be
				  treated as ineligible until the underlying reasons for the disallowance have
				  been removed.
(g) All amounts due
				  from the home office, other offices and affiliates as defined in section
				  322.6  of
				  this Part, including income accrued but uncollected on such amounts, shall be
				  ineligible, except that upon a letter application to the department and the
				  superintendent's prior approval, all amounts due from other offices located
				  within the United States shall be considered eligible. Approval shall be based
				  in part upon the report of examination submitted pursuant to section 36  of the Banking Law and the letter
				  application shall constitute correspondence which concerns such examination for
				  purposes of section 36 (10)  of the Banking
				  Law.
(h) Precious metals shall be
				  considered eligible to the extent of 75 percent of the market value.
(i) Prepaid expenses and unamortized costs,
				  furniture and fixtures and leasehold improvements shall be
				  ineligible.
(j) Real estate located
				  in New York and carried on the accounting records as an asset shall be
				  considered eligible at net book value or appraised value, whichever is
				  less.