§ 122. Examinations of banks and trust companies by directors;
employment of assistants. 1. It shall be the duty of the board of
directors of every bank and every trust company once in each calendar
year to examine, or cause a committee of at least three of its members
to examine, such bank or trust company for the purpose of determining
its financial condition and reviewing its investment, loan and audit and
control policies and in such examination particular attention shall be
given to the loans or discounts made directly or indirectly to its
officers or directors, or for the benefit of such officers or directors,
or for the benefit of other corporations of which such officers or
directors are also officers or directors, or in which they have a
beneficial interest as stockholders, creditors, or otherwise, with the
special view of ascertaining their safety and present value, and the
value of the collateral security, if any, held in connection therewith,
and to such other matters as the superintendent may require. Such
directors shall have the power to employ such assistants in making such
examination as they may deem necessary, and shall employ the assistance
of independent auditors if the superintendent deems inadequate the
internal auditing and control procedures established by such bank or
trust company. The various offices, departments and phases of business
of any such bank or trust company may be examined as of different dates
during the year.

2. With respect to any bank or trust company subject to the provisions
of section one hundred twelve of the Federal Deposit Insurance
Corporation Act of 1991, as implemented by the provisions of part three
hundred sixty-three of the rules and regulations of the Federal Deposit
Insurance Corporation, as they may be amended from time to time,
compliance with such provisions shall be deemed to satisfy the
examination requirement of this section.