§ 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.