§ 104. Entries in books; restrictions; amortization of securities. 1.
No bank or trust company 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, 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 and other interest-bearing securities purchased
by a bank or trust company 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 except that the same may be
carried at cost if appropriate amortization reserve is set up for the
purpose of bringing them to par at maturity. Where securities purchased
at a premium are callable prior to maturity, the rate of amortization
thereof shall be increased where 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;
provided, however, that no adjustment for amortization or amortization
reserve shall be required to be made on the books except when net
profits are computed. 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 bank or trust company shall, except with the written approval of
the superintendent, enter on its books its real estate and the building
or buildings thereon, or its fixtures, vaults, furniture and equipment,
at a valuation exceeding the actual cost to such bank or trust company,
or carry such real estate, building or buildings, fixtures, vaults,
furniture or equipment at a valuation exceeding the actual cost less
appropriate allowances for depreciation except that the same may be
carried at cost if appropriate depreciation reserve is set up; provided,
however, no adjustment for depreciation or depreciation reserve shall be
required to be made on the books except when net profits are computed.

4. Real estate acquired by a bank or trust company, other than that
acquired for use as a place of business, shall be entered on the books
of the bank or trust company in conformity with the method of accounting
for troubled debt restructurings approved by the financial accounting
standards boards 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 bank or trust company 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. Every bank and every trust company shall conform its methods of
keeping its books and records to such orders in respect thereto as shall
have been made and promulgated by the superintendent pursuant to article
two of this chapter. Any bank or trust company that refuses or neglects
to obey such order shall be subject to a penalty in an amount as
determined pursuant to section forty-four of this chapter for each day
it so refuses or neglects.

6. Every bank and every trust company holding any funds or money paid
into court shall keep records in which it shall make an exact account
thereof, including appropriate references to the order or orders
pursuant to which such funds are held.