Section 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.