Section 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.