For the purpose of section
202-b(2) of the Banking
Law and Part 52 of this Title, the term eligible assets shall include any
assets (reduced by the amount of any specifically allocated reserves
established on the books in connection with such assets) held in this State and
recorded on the general ledger of a licensed branch or agency of the foreign
banking corporation, subject, however, to the following adjustments and
situations:
(a) Marketable debt
securities shall be allowed at their principal amount or market value,
whichever is lower.
(b)
Restructured foreign debt bonds backed by United States Treasury obligations
(commonly known as "Brady Bonds"), whether carried on the books of the branch
or agency as loans or securities, shall be allowed at their book value or
market value, whichever is lower.
(c) Equity securities shall be
ineligible.
(d) The balance from
time to time of any assets classified loss, doubtful or substandard at the
preceding examination by the superintendent, any other regulatory agency,
outside accountants or the bank's internal loan review staff, shall be
ineligible to the extent of 100 percent, 50 percent and 20 percent,
respectively. Assets classified value impaired shall be ineligible to the
extent of 100 percent of the amount of allocated transfer risk reserve which
would be required for such exposure at a domestically chartered bank and 20
percent of any residual exposure. For assets classified at the preceding
examination by the superintendent or any other regulatory agency, if the
deficiency or defect giving rise to the classification shall be removed
subsequent to the examination, the department, will, upon written request
supported by appropriate documentation, reconsider the
classification.
(e) Accrued income
on assets classified loss, doubtful, substandard or value impaired shall be
ineligible.
(f) The balance from
time to time of any other asset or asset category disallowed at the preceding
examination or by direction of the superintendent for any other reason shall be
treated as ineligible until the underlying reasons for the disallowance have
been removed.
(g) All amounts due
from the home office, other offices and affiliates as defined in section
322.6 of
this Part, including income accrued but uncollected on such amounts, shall be
ineligible, except that upon a letter application to the department and the
superintendent's prior approval, all amounts due from other offices located
within the United States shall be considered eligible. Approval shall be based
in part upon the report of examination submitted pursuant to section
36 of the Banking Law and the letter
application shall constitute correspondence which concerns such examination for
purposes of section
36(10) of the Banking
Law.
(h) Precious metals shall be
considered eligible to the extent of 75 percent of the market value.
(i) Prepaid expenses and unamortized costs,
furniture and fixtures and leasehold improvements shall be
ineligible.
(j) Real estate located
in New York and carried on the accounting records as an asset shall be
considered eligible at net book value or appraised value, whichever is
less.
