§ 384. Entries in books; restrictions; amortization of securities. 1.
No savings and loan association 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 or other interest-bearing obligations purchased
by a savings and loan association shall be entered on its books at the
actual cost thereof, and shall not thereafter be carried upon its 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
profits. 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 and loan association, without the written permission 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 the actual cost thereof to such
savings and loan association, or carry such real estate, building or
buildings, fixtures, vaults, furniture or equipment on its books at a
valuation exceeding the actual cost less appropriate allowances 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 profits.

4. Real estate acquired by an association other than that acquired for
use as a place of business, shall be entered on the books of the
association 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.

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 and loan association 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. Every savings and loan association shall conform its method of
keeping its books and records to such orders in respect thereto as shall
have been made and promulgated by the superintendent. Any savings and
loan association that refuses or neglects to obey any such order shall
be subject to a penalty in an amount as determined pursuant to section
forty-four of this chapter for each day it so refuses or neglects.