Current through Register Vol. 39, No. 6, September 16, 2024
(a) Each bank, each
affiliate of the bank, and the bank's parent holding company, shall keep, and
make available for examination by the representatives of the Commissioner of
Banks, books and records that reflect all the transactions of the bank in its
true financial condition. Such records shall be kept so as to permit and
facilitate a speedy examination, by the representatives of the Commissioner of
Banks. Without implying that these are the only books and records to be kept,
the following books and records shall be kept at the bank, or at its parent
holding company, unless another storage site is approved by the Commissioner of
Banks in writing by letter or other written agreement:
(1) Alphabetical direct and indirect
liability ledgers. Each bank shall keep an alphabetical direct and indirect
liability ledger. The alphabetical direct liability ledger shall show a
customer's direct obligations owed to the bank by loan name or account number
and the balance outstanding under each account. The alphabetical indirect
liability ledger shall show a customer's indirect obligations owed to the bank
by loan name or account number and the balance outstanding under each account.
The alphabetical direct liability ledger shall be kept in balance with the
general ledger control. The alphabetical indirect liability ledger shall be
updated at least monthly. Where the aggregate total of a customer's direct and
indirect obligations to the bank do not exceed twenty thousand dollars
($20,000), the indirect obligations of that customer may be omitted from the
alphabetical indirect liability ledger. In a bank whose automated record system
is not able to produce an alphabetical liability ledger, the bank shall produce
an alphabetical listing of borrowers showing all of a customer's loan or
account numbers and the amount outstanding under each number when called upon
by representatives of the Commissioner of Banks. Each bank shall have the
ability to produce both the direct and indirect liability ledgers in hard copy
form upon request by representatives of the Commissioner of Banks.
(2) Monthly reconciliation of accounts with
correspondent banks. A record shall be kept, showing the monthly reconciliation
of each account with correspondent banks. A signed review of such
reconciliations shall be made by an officer or employee of the bank other than
the person responsible for preparing the reconciliation.
(3) Purchases and sales of securities. A
record shall be kept of purchases and sales of securities. The record shall
include the following:
(A) dates of purchases
and sales;
(B) interest
rates;
(C) maturities;
(D) par value;
(E) cost value;
(F) all write-ups or write-downs;
(G) a full description of the
security;
(H) from whom
purchased;
(I) to whom
sold;
(J) purchase price;
(K) selling price; and
(L) when, where, and why pledged or
deposited.
This record shall be maintained in balance with the general
ledger control.
(4) Charge-offs. A record shall be kept of
all items charged off and of all recoveries. All charge-offs shall be
authorized or approved by the executive committee or by the board of directors
and such action recorded in their minutes. The charge-off record shall show the
date of the charge-off, a description of the asset, and the amount of the
charge-off. The record shall be supported by the actual charged-off items, or
the final disposition of any charged-off item. The record of recoveries shall
show the date and amount of each recovery.
(5) Records of real estate. A record shall be
kept on all parcels owned, including the banking house. The record shall show
when the property was acquired, how the property was acquired, the cost of the
property, the book value of the property, and detailed income and expense
reports relating to the property. This record shall be supported by appraisals,
title certificates showing assessed value, tax receipts, and hazard insurance
policies relating to the property.
(6) Meeting minutes and consent to action.
Minutes of all board of directors meetings, board committee meetings, and
stockholders meetings (including each consent to action without a meeting),
shall be kept showing any action resulting from the meeting. All minutes shall
be signed by the chairman and the secretary of such meeting.
(7) Cash items held over. A daily record
shall be kept of all cash items held over from the day's business, including
all checks that would cause an overdraft if handled in the regular way. This
record shall be kept in balance with the general ledger control and shall
identify the account on which the item is drawn or is obligated for payment,
the reason the item is being held, the date the item was placed in the cash
items account, and the amount of the item.
(8) Record of income and expenses. A detailed
record of income and expenses shall be kept and balanced monthly. A report of
this record shall be made to the executive committee or board of directors, and
the receipt of same noted in their minutes.
(9) Industrial bank reports of condition.
Each industrial bank, when preparing a report of condition and income, shall
include and make a part of its report a list of those whose aggregate direct
and indirect obligations to the bank, including paper purchased by the bank,
are in excess of ten percent of the industrial bank's capital, surplus, and
undivided profits. In lieu of this list, the industrial bank may maintain a
direct and indirect liability ledger in accordance with Subparagraph (a)(1) of
this Rule.
(b) Unless
another storage site is approved by the Commissioner of Banks in writing by
letter or other written agreement, a bank's books and records and the books and
records of the bank's parent holding company shall be kept at the bank or at
the bank's parent holding company; and the books and records of an affiliate of
the bank shall be kept at the affiliate, the bank, or the bank's parent holding
company.
(c) Based upon the
condition of a bank as determined by examination or otherwise, the Commissioner
of Banks may require a bank to prepare or maintain different or additional
books, records, and reports.
