Section 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  banking  board may by general regulation
  adopted by a three-fifths vote of all its members 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 banking board.
    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.