association which determines to maintain any of its records by means of data
processing services shall notify this Department in writing at least 90 days
prior to the date on which such maintenance of records will begin.
(2) Such notification shall include
identification of the records to be maintained by data processing service and a
statement as to the location at which such records will be
(3) Every association
shall be required to follow the bookkeeping and accounting system in accordance
with the standard accounting manual for savings and loan associations and shall
comply with generally accepted accounting principles and practices.
(4) The accrual basis must be used by all
(5) Complete records
of its stockholders or members, as the case may be, shall be maintained, which
shall show the names and addresses of all stockholders or members and the
number of shares of stock or amounts of deposits held by each.
(6) Machine Accounting - An association may
use machine posting of its books and records, but it shall support all
settlement or summary sheets with appropriate accounting machine tapes and all
other necessary information.
Posting and Balancing of Books - The books and records of an association shall
be posted promptly and be balanced by the appropriate officer or officers of
the association no less frequently than monthly. Trial Balances by adding
machine or other listing methods shall be taken of all loan and free deposit
share accounts at least quarterly. Copies of the Trial Balances shall be
retained for at least five (5) years.
(8) Journal Vouchers - An association may use
a system of journal vouchers, but in such case all such vouchers shall be
serially numbered and retained as part of the permanent records of the
(9) Advertising and
Promotional Activities - Association's Advertising File - Each association
shall maintain and make available to the Commissioner for inspection at its
home office, a chronological file of all forms of advertisement used by it
during the preceding eighteen (18) months.
(10) Misleading Impression - In connection
with any loan or investment, an advertisement or any advertising sign as a
whole shall not be inaccurate or create a misleading impression even though
statements therein, separately considered, are literally truthful.
(11) Use After Notice - It shall be an
unsound business practice to use advertising in connection with any loan or
investment after the Commissioner has given written notice that the
advertisement is false, misleading or likely to deceive the public.
(12) Stock and Dividends - Capital stock is
non-withdrawable permanent stock by whatever name. Any association authorized
by law to issue or maintain shares of Capital Stock must, prior to the payment
of any dividend on such Capital Stock, in any dividend period, pay interest on
all deposit accounts.
Certificate - Stated Restrictions - Each certificate heretofore or hereafter
issued as evidence of ownership of Capital Stock shall clearly show on its face
in a type size no less than 50 points that such stock is "Capital Stock". In
addition, each stock certificate shall state the restrictions upon such stock,
including the following:
(a) The Capital Stock
constitutes a secondary reserve for losses.
(b) That Capital Stock in
(c) That Capital
Stock is assessable in the hands of the owner thereof to the par value
(d) That Capital Stock is
entitled to the payment of dividends only after interest has been paid on all
(e) Such other
restrictions with respect to the stock as may be required to appear on the