N.Y. Comp. Codes R. & Regs. tit. 3 § 325.1

Current through Register Vol. 46, No. 25, June 18, 2024

Section 325.1 - Explanatory note

(a) Section 109(2)(a) of the Banking Law prohibits a bank or trust company from accruing interest on interest-bearing assets upon which a default of principal or interest has existed for a period which shall be determined by the superintendent, unless such assets are fully secured as to both principal and interest.

(b) Section 244(1)(b) of the Banking Law permits the superintendent to direct that certain portions of interest accrued but uncollected by a savings bank be excluded from income.

(c) Section 386(1)(a) of the Banking Law prohibits a savings and loan association from accruing interest upon any asset upon which a default exists. For the purpose of this section of the Banking Law, a default is deemed to exist when payment of principal or interest is 90 days or more past due and the asset is not fully secured as to both principal and interest.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 325.1