§ 403. Examination by directors. 1. Once in each calendar year the
directors of every savings and loan association by a committee of not
less than three of their number, none of whom shall be salaried officers
or employees of such association, shall examine fully the records and
affairs of such association for the purpose of determining its true
financial condition. Such examination shall be made as of a date not
less than six months after the date of the previous such examination.

2. In the conduct of each such examination, inquiry shall be made
into the policies of management for the purpose of determining whether
such policies are sound and consistent with the requirements of law, and
into such other matters as shall be necessary to enable the directors to
determine whether adequate protection is afforded to shareholders and
depositors.

3. A savings and loan association's compliance with 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, shall be deemed to satisfy the
examination requirement of this section.

4. The directors may employ such assistance as they deem necessary in
making the examinations prescribed by this section. Within thirty days
after the completion of such examination, a report thereof, in such form
as the superintendent may prescribe and sworn to by the directors making
the report, shall be presented to the board of directors of such
association at a regular meeting, and placed on file in the office of
the association. Within ten days after the presentation of such report
to the board of directors a duplicate thereof shall be filed in the
office of the superintendent, together with a certificate that such
report was presented to the board of directors, in the form prescribed
by the superintendent.