N.Y. Comp. Codes R. & Regs. Tit. 3 § 322.3 - Eligible assets

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.


N.Y. Comp. Codes R. & Regs. Tit. 3 § 322.3

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