New York Laws
Article 10 - Savings and Loan Associations
386 - Profits; How and When to Be Computed.

(a) All income received or properly accrued, provided that no interest
shall be accrued upon any interest-bearing asset upon which a default of
principal or interest has existed for a period which shall be determined
by the superintendent, except for interest-bearing assets secured by
collateral the ascertained value of which is at least equal to the
amount at which such asset plus all interest accrued thereon is carried
on its books.
(b) Amounts added to cost for the purpose of amortizing discounts on
securities purchased for less than par, provided that no discount shall
be amortized on securities upon which a default exists.
(c) Any profits actually realized from the sale or other disposition
of securities, real estate or other property.
(d) Amounts recovered on assets previously charged off, including
amounts allowed by the superintendent on account of assets previously
disallowed by him; and other amounts allowed by the board of directors
on account of assets previously disallowed by it.
(e) Provided the superintendent shall have approved, and only to the
extent of such approval, any increase in the book value of the real
estate and building or buildings thereon used by it as its place or
places of business.
(f) Such other items as the superintendent, in his discretion, may
permit to be included.
2. To determine the amount of net profits for such accounting period
the following items shall be deducted from gross income:
(a) All expenses paid or properly accrued, both ordinary and
extraordinary, in the transaction of its business, the collection of its
debts and the management of its affairs.
(b) Interest paid or properly accrued upon time deposits held pursuant
to section three hundred seventy-eight-a of this article, interest paid
or properly accruing upon deposits referred to in section three hundred
seventy-eight-b of this article and debts owing by it.
(c) Amounts deducted from cost for the purpose of amortizing premiums
on securities purchased for more than par.
(d) Any losses sustained by it except to the extent that such losses
have been charged against the surplus account or valuation reserves. In
the computation of such losses there shall be included all deductions
from the book value of assets made pursuant to the direction of the
board of directors or by reason of the disallowance of assets by the
superintendent. The balance thus obtained shall constitute the net
profits of such savings and loan association for such period.

Structure New York Laws