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Chapter 02
Banking

Article

1. Powers of the Department of Commerce. (3 AAC 02.010 - 3 AAC 02.030)

2. Banking Practices. (3 AAC 02.110 - 3 AAC 02.205)

3. Organization and Corporate Functions of Banks. (3 AAC 02.209 - 3 AAC 02.230)

4. Liquidation, Dissolution, and Reorganization. (3 AAC 02.310 - 3 AAC 02.360)

5. Prohibited Practices and Sanctions. (3 AAC 02.410 - 3 AAC 02.420)

6. (Expired). (3 AAC 02.510 - 3 AAC 02.560)

7. General Provisions. (3 AAC 02.910 - 3 AAC 02.910)

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Article 1
Powers of the Department of Commerce

Section

10. Retention or destruction of records.

20. Reports to the department.

30. Examinations.

3 AAC 02.010. Retention or destruction of records

(a) The following is the retention schedule for Alaskan banks:



Key to Abbreviations

P.S. or Opt. - Purpose Served or Optional
D - Destroy
Months - Figure with "mos."
Years - Figures
Permanently - P

I. ADMINISTRATIVE

MINUTE BOOKS

Minute books of directors', executive committees', stockholders',

and other meetings .........................................................P
AUDITING AND ACCOUNTING
Accrual records ........................................................1
Audit copy of debits and credits to loans and discounts ................1
Audit work papers ......................................................3
Bank call reports ......................................................5
Bank examiner's reports ...............................................10
Budget work sheets ..................................................Opt.
Daily reserve computations .............................................2
Difference records .....................................................6
Earnings and dividends report .........................................10
Monthly reports to directors ...........................................P
Reports to executive committees .......................................10
Securities vault, in and out tickets ...................................3
Tax records .........................................................P.S.
CAPITAL
Capital stock certificates, records or stubs ...........................P
Capital stock ledger ...................................................P
Capital stock transfer register ........................................P
Dividend checks .......................................................10
Dividend register .....................................................10
Proxies ................................................................2
Register of and cancelled certificates .................................P
GENERAL LEDGER
Daily statement of condition ..........................................10
General journal ........................................................1
General ledger ........................................................10
General ledger tickets ................................................10
INSURANCE RECORDS
Bankers' blanket bonds .................................................3
Expired policies .......................................................3
Records of policies in force ...........................................3

Schedule of fire and other policies, and record of payment of

premiums and sums recovered ................................................3
INVESTMENTS - BANK'S PORTFOLIO
Bond ledger ...........................................................10
Brokers' confirmations .................................................3
Brokers' statements ....................................................3
Descriptive literature on securities disposed of ....................Opt.
Buy and sell orders ....................................................3
LOANS AND DISCOUNTS
Audit copy of debits and credits to loans and discounts ................1
Collateral cards ......................................................10
Collateral receipts ...................................................10
Collateral register ...................................................10
Collateral substitution slips (receipts) ..............................10
Credit files (closed) ...............................................Opt.
Daily reports .......................................................Opt.
Debit and credit tickets ..............................................10
Journal ...............................................................10
Liability ledger ......................................................10
Loan applications ...................................................Opt.
Loan committee minutes .................................................P
Margin cards ........................................................Opt.
Note or discount register .............................................10
Note or discount tickler ...............................................2
Resolutions (after loan is paid) .......................................6
Payment receipts .......................................................6
PERSONNEL
Attendance record (after leaving service) inc. "hours worked" ..........5
Salary ledger ..........................................................5
Salary receipts ........................................................5
Records of employees:

Applications, reference records, reports and results of
examinations, service record, efficiency tests, etc., after

leaving service ...........................................................25

II. CASH

DUE FROM BANKS
Advice from correspondents .............................................1
Affidavits or bonds of indemnity for duplicate drafts issued ..........10
Bank statements ........................................................2
Drafts ................................................................10
Draft register ........................................................10
Reconcilements:
Domestic ...........................................................2
Foreign ............................................................5
Departmental or teller's proof sheets ..................................2
PROOF OF CLEARINGS
Clearinghouse settlement sheets ..................................3 mos.
Deposit proof sheets or tapes ..........................................1
In-clearing proof sheets ...............................................1
In-clearing tapes ......................................................1
Out-clearing proof sheets ..............................................1
Clearinghouse settlement checks .......................................10
TELLERS
Cash item record .......................................................2
Cash item register .....................................................2
Receipts for return items ..............................................1
Return item carbons ....................................................1
Teller's cash books .................................................Opt.
Teller's cash tickets, orig. and carbon ................................1
Teller's recapitulation (with general ledger tickets) .................10
Teller's scratch sheet or blotter ......................................3
TRANSIT
Outgoing cash letters ..................................................1
Proof sheets ...........................................................1
INTERNATIONAL
Daily debits and credits ...............................................7
Acceptances - foreign exchange ........................................10
Acceptances purchased books ...........................................10
Advice checks drawn for our accounts ...................................7
Application for postal registration ....................................7
Cable copies ...........................................................7
Cable orders ...........................................................7
Miscellaneous checks and drafts ........................................7
Collateral records .....................................................7
Collections ............................................................7
Correspondence .........................................................7
Receipts for cash payments and securities delivered ....................7
Department record of checks and drafts drawn ...........................7
Draft requisitions .....................................................7
Paid foreign drafts ....................................................7
Record of foreign exchange bought and sold .............................7

Federal reserve reports - monthly report re: foreign

exchange position ..........................................................7
Letters of credit registers ............................................7
Letters of credit dead .................................................7
Letters of credit issued ...............................................7
Incoming payments ......................................................7
Mail transfers .........................................................P
Individual liability cards .............................................7
Paid credits ...........................................................7
Money order requisitions ...............................................2
Preliminary contracts ..................................................7
Remittances ............................................................7
Bills of exchange ......................................................7
Purchase and sales contracts (cancelled) ...............................7
Foreign drafts issued - register ......................................10
Telegraph code book ....................................................P
Traveler's letter of credit guarantee ..................................7
Teller's blotter .......................................................3
Contracts and contract cards ...........................................7
Departmental settlement sheets .........................................1
Foreign exchange remittance sheets or books ............................7
SAVINGS ACCOUNTS
Deposits ...............................................................7
Journals ...............................................................1
Ledger cards or sheets .................................................7
Control journal tapes ...............................................Opt.
Window bookkeeping machine control tapes ............................Opt.
Reports of accounts opened and closed ...............................Opt.
Resolution (after closed) ..............................................7
Signature cards (after closed) .........................................7
Signatures of power of attorney ........................................7
Trial balances ...................................................3 mos.
Affidavits on lost passbooks P/B .......................................7
Withdrawal ............................................................7*
Work sheets interest on time accounts ...............................Opt.
Editor's note:* Unless returned to cus-
tomer after microfilming.

III. DEPOSITS

ACCOUNT ANALYSIS
Analysis work sheets or cards .......................................Opt.
Average balance cards ...............................................Opt.
Interest computation records ........................................Opt.
Service charge records ..............................................Opt.
BANK (DUE TO) DEPOSITS
Advice of debit and credit, and memo entries ........................Opt.
Cash letters ...........................................................1
Cash letters for remittance ............................................1
Copies of advices of deposit ........................................Opt.
Country bank ledger ...................................................10
Ledger journal .........................................................1
Reconcilements .........................................................1
Reports of accounts, opened and closed ..............................Opt.
Resolutions (after account closed) .....................................7
Signature cards (after account closed) .................................7
Trial balances ...................................................6 mos.
CERTIFICATES OF DEPOSIT
Certificates (paid) ....................................................7
Ledger cards (paid) ....................................................7
Register (paid) ........................................................7
COMMERCIAL DEPOSITS, INDIVIDUAL AND FIRM
Bookkeepers daily list of checks charged in total ......................1
Check book orders ...................................................Opt.
Copies of advices of deposit ...........................................1
Daily report of overdrafts .............................................1
Deposit tickets .......................................................7*
Duplicate deposit tickets ...........................................Opt.
Individual ledgers .....................................................7
Individual ledger journal ..............................................1
Reports of accounts opened and closed ...............................Opt.
Resolutions (after closing) ............................................7
Signature cards (after closing) ........................................7
Signatures of power of attorney (after closing) ........................7
Statement mailing order (after closing) ................................3
Statement receipt cards (after closing) ................................3
Statement stubs ........................................................7
Stop payment orders (after release) ....................................1
Trial balances .........................................................1
Unclaimed deposits .....................................................P
Undelivered statements and cancelled checks ............................7
OFFICIAL CHECKS AND DRAFTS
Cashier's checks ......................................................10
Cashier's check register ..............................................10
Certified checks ......................................................10
Certified check register ..............................................10
Drafts ................................................................10
Draft stubs .........................................................Opt.
Draft register ........................................................10
Expense checks ........................................................10
Expense check register ................................................10
Expense vouchers ......................................................10
Letters of credit and documents .......................................10
Receipts for certified checks .........................................10
Requisitions ........................................................Opt.
SAVINGS DEPOSITS
Deposit tickets .......................................................7*
Duplicate deposit tickets ...........................................Opt.
Journal ................................................................1
Ledger cards or sheets .................................................7
Control journal tapes ..................................................1
Passbooks (closed accounts) ............................................D
Reports of accounts opened and closed ...............................Opt.
Resolutions (after account closed) .....................................7
Signatures of powers of attorney .......................................7
Trial balances .........................................................1
Withdrawal receipts ....................................................7
CHRISTMAS CLUB
Checks .................................................................7
Check register .........................................................7
Coupons (deposit ticket) ...............................................7
Journal ..........................................................3 mos.
Ledger cards or sheets .................................................7


(a) if paid by cash and receipt taken on card or sheet ...............7


(b) if paid by official check ........................................7
Signature cards (after closed) .........................................7
Trial balances .........................................................1
Withdrawal receipts ...................................................7*
* Editor's note: Unless returned to cus-
tomer after microfilming.

IV. MISCELLANEOUS COLLECTIONS

Collection receipts, carbons of ........................................3
Collection register ....................................................3
Coupon cash letters, outgoing ..........................................3
Coupon envelopes ....................................................Opt. Customers' file copies .................................................1
Incoming collection letters ............................................3
Installment contract or note records (after closing) ..................10
CUSTOMER SERVICE
Brokers' confirmations .................................................1
Brokers' invoices ......................................................1
Brokers' statements ....................................................1
Escrow records (after closing) .........................................7
Safekeeping records and receipts ......................................10
Securities buy and sell orders .........................................7
GENERAL
Affidavits ............................................................10
Applications for travelers' checks .....................................1
Attachments, garnishments ..............................................7
Attachment releases ....................................................7
Change of address orders ...............................................1
Code books (not returned) ..............................................D
Court order (after case closed) .......................................10
Court order memorandum record .........................................10
Death notices .......................................................Opt.
General correspondence .................................................3
Incoming mail envelopes .............................................Opt.
Night depository records ...............................................1
Paid bills, statements, and invoices ...................................1
Protest notices .....................................................Opt.
Receipts for check books ............................................Opt.
Receipts (ordinary) ....................................................7

Stenographers' note books and mechanical device records,

and extra copies of letters .............................................Opt.
Telegrams, cable, and radiogram copies .................................3
Telegraphic transfer receipts and records ..............................3
Trust records ..........................................................1
Vault records, opening and closing ...............................6 mos.
REGISTERED MAIL
Insurance declarations ..............................................Opt.
Marine insurance books ..............................................Opt.
Registered mail (incoming) record ......................................2
Registered mail (outgoing) record ......................................2
Return receipt cards ...................................................1
SAFE DEPOSIT VAULT
Access tickets (after entry date) ......................................7
Leases or contracts (closed) ...........................................7
Storage receipts .......................................................3
Ledger record of account ...............................................3
Rent receipts ..........................................................1

V. UNITED STATES SAVINGS BOND

United States Savings Bond stubs, As required in federal
Series E .................... regulations.
United States Savings Bond Series E As required in federal
applications .................... regulations.
(Memo: Applications must show bond numbers.
File alphabetically by years).

VI. DATA PROCESSING RECORDS

TAPE AND DISK FILES
Computer program tapes or disks - When a change is made, retain old tape or disk one month to verify program.
Master file tape or disk - One day if backup is kept, until a Grandfather* if not.
Sorted daily transaction tape or disk - One day if a print-out is made, until a Grandfather if not.
Report tapes or disks - Until updated report has been verified for accuracy.
MISCELLANEOUS DATA TAPES OR DISKS
New accounts - if print-outs are made daily, one day; until master is proven, if not.
Change of address - If print-outs are made daily, one day; until master is proven, if not.
Stop payment - If print-outs are made daily, one day; until master is proven, if not.
OTHER MASTER FILES
Account history tapes - Until it is a Grandfather tape. Statistical tapes - Until it is a Grandfather tape.
Original entry punch cards or cards punched by the computer - Two reporting periods of the information or two statement cycles.
Editor's note: Grandfather is a three-day-old tape or disk.

Grandfather - Monday
Father - Tuesday
Son - Wednesday


(b) Any record required to be retained by a bank under (a) of this section may be retained on microfilm, microfiche, or in any other form that preserves a true and accurate reproduction of the original document.

History: Eff. 12/13/70, Register 36; am 1/10/94, Register 129

Authority: AS 06.05.005 (a)

3 AAC 02.020. Reports to the department

(a) A bank shall prepare the quarterly reports of condition required under AS 06.05.045 (a) on the FFIEC Consolidated Reports of Condition and Income form and, if the bank is required to file the form with the FDIC or the Federal Reserve Bank, the report to the department must be a duplicate of the form filed with that agency.

(b) If compatible and with the approval of the department, a bank may file reports required by the department by means of the electronic transfer of information of by telephone facsimile. If a signature is otherwise required, the department will, in its discretion, accept a facsimile or an electronic signature in lieu of an original signature. If a bank files a report under this section, the bank shall maintain the original, hard copy version of the report until the next examination by the department.

(c) In performing its annual examination of a state bank to be submitted to the department as required under AS 06.05.438 (d), the board of directors shall have the books and records of the bank examined and a report prepared by an independent certified public accountant who has no interest, financial or otherwise, in the bank.

History: Eff. 1/10/94, Register 129

Authority: AS 06.05.005 (a)

AS 06.05.045

AS 06.05.438 (d)

3 AAC 02.030. Examinations

The examinations required under AS 06.01.015 may be conducted in alternate years, as appropriate, if the department determines that an examination of the financial institution conducted by the FDIC or other federal agency that regulates financial institutions, during the intervening year carries out the purposes of AS 06.01.015 .

History: Eff. 1/10/94, Register 129

Authority: AS 06.01.015

AS 06.05.005 (a)

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Article 2
Banking Practices

Section

110. Reserves against deposits.

112. Disclosure of account charges.

115. (Repealed).

120. Reporting loans over $100,000.

121. Credit cards for officers.

122. Lending standards.

125. Loan lending limits.

129. Small loans.

130. (Repealed).

135. Disposition of property not needed for banking business.

140. (Repealed).

141. (Repealed).

145. Authorized activities for domestic bank holding companies.

150. Permit to operate a bank holding company.

155. Extension of credit by a bank to the bank's holding company or subsidiaries of the holding company.

160. Requirements to form a domestic bank holding company.

165. (Repealed).

170. (Repealed).

175. Change in control of a bank holding company.

180. (Repealed).

185. Banking related activities.

190. Letters of credit.

195. Borrowing.

197. Pledge of assets.

200. Bank subsidiaries.

205. Bank investments.

3 AAC 02.110. Reserves against deposits

(a) In order to protect liquidity, a state bank shall comply with the reserve requirements imposed upon depository institutions by 12 C.F.R. 204, revised as of November 16, 2009, and adopted by reference.

(b) If a bank fails to maintain the reserve required in (a) of this section, the department may determine that the bank is in danger of becoming illiquid, and that the bank is engaged in an unsafe or unsound practice as defined in AS 06.01.030 (h) or is in unsafe or unsound condition as defined in AS 06.05.990 . The bank shall submit to the department, no later than 15 days after the department notifies the bank of its determination, a business plan to correct the condition and bring the bank into compliance with the requirements of this section.

History: Eff. 1/17/69, Register 28; am 12/13/70, Register 36; am 7/30/82, Register 83; am 1/10/94, Register 129; am 4/22/2010, Register 194

Authority: AS 06.05.005

AS 06.05.200

3 AAC 02.112. Disclosure of account charges

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