Pennsylvania Code
Title 10 - BANKING AND SECURITIES
Part II - Bureau of Banks
Chapter 21 - GENERAL PROVISIONS FOR ALL STATE-CHARTERED BANKING INSTITUTIONS
PRELIMINARY PROVISIONS
Section 21.4 - Accretion of discount on securities
Current through Register Vol. 54, No. 12, March 23, 2024
In order to conform to the reporting requirements of the Securities Exchange Act of 1934 (15 U.S.C. § 78c et seq. (1971)), State banking institutions shall be permitted to accrete discount, by increasing book value not in excess of par value on obligations of the Federal Government, State or political subdivisions, and corporate obligations of investment grade purchased at a discount, by one of the following bookkeeping methods:
(1) Accumulation of discount in a reserve account until the security written up to par value is disposed of, when proper credit would be made to the undivided profits account.
(2) Taking discount directly into undivided profits as the book value is increased.
