6-474

6-474. Accounting practices and records

A. Every association shall maintain in this state a detailed record of all
transactions of the association at its home office, or at a branch office or at a central
accounting or computer center servicing one or more associations, provided that general
accounting records and their maintenance shall not be transferred by an association from
its home office to a branch office, or from a branch office to its home office or to
another branch office or to a central accounting or computer center, unless and until:

1. The board of directors of the association has by resolution authorized such
transfer and maintenance.

2. The association has sent a certified copy of the resolution required by
paragraph 1 to the superintendent.

B. Each branch office shall keep detailed records of all transactions at such
branch office and shall furnish full control records to the home office, or such branch
office or central accounting or computer center as has been designated by appropriate
resolution of the board of directors adopted and filed as provided in subsection A.

C. Every association shall observe such generally accepted accounting principles
and practices as are approved by the superintendent.

D. No association by any system of accounting or any device of bookkeeping shall,
either directly or indirectly, enter any of its assets upon its books in the name of any
other person, partnership, association or corporation, or under any title or designation
that is not truly descriptive of such assets.

E. The superintendent may order that assets in the aggregate, to the extent that
such assets have depreciated in value, be charged off or that a special reserve or
reserves equal to such depreciation in value be set up by transfers from undivided
profits.

F. Except notes secured by first lien mortgages insured or guaranteed, wholly or in
part, by an agency of the United States government, all bonds or other interest bearing
obligations purchased by the association shall be carried at par with provision for
amortization of premiums and discounts.