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Can you summarize 3 NYCRR Part 29?
General Regulations of the Superintendent > Declaration of Dividends
Short Summary
The provided legal document, part of the New York Codes, Rules and Regulations, falls under the Banking category and pertains to the General Regulations of the Superintendent. It governs the Declaration of Dividends for banks and trust companies. According to the document, banks and trust companies must use section 29.2 of this Part to compute net profits for all calendar years beginning on and after January 1, 1991. They may also use section 29.2 for all calendar years beginning on and after January 1, 1990. The document allows banks and trust companies to recompute retained net profits for the two calendar years immediately preceding 1990 or 1991 using section 29.2. Once a bank or trust company elects to compute net profits or retained net profits for a particular calendar year using section 29.2, they must continue using section 29.2 for all subsequent calendar years. If a bank or trust company chooses to use section 29.2 to compute net profits or retained net profits for a specific calendar year, they must also use it to compute retained net profits for that same year. A bank or trust company must reduce net profits at the time a provision for loan losses is made rather than when any net losses are charged to the loan loss reserve. Net profits of a bank or trust company will equal its net income for purposes of Banking Law, section 112. Banking Law, section 112 authorizes banks and trust companies to declare dividends in a calendar year without having obtained the prior approval of the superintendent out of net profits for that calendar year together with retained net profits for the immediately preceding two calendar years. The department formerly has computed net profits by adding back to net income any provision made for loan losses and deducting any net losses charged to the loan loss reserve. This procedure is inconsistent with the recognition of losses under generally accepted accounting principles (GAAP).
Whom does it apply to?
Banks and trust companies
What does it govern?
Declaration of Dividends for banks and trust companies
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York