Mississippi Code 1972 (2023) › Title 81 - BANKS AND FINANCIAL INSTITUTIONS (§§ 81-1-1 — 81-29-3) › Chapter 5 - GENERAL PROVISIONS RELATING TO BANKS AND BANKING (§§ 81-5-1 — 81-5-153) › GENERAL PROVISIONS (§§ 81-5-1 — 81-5-107) › Section 81-5-87 - Holding of real estate by bank

Any banking corporation doing business in this state may purchase, hold and convey real estate for the following purposes and no others:
(a)
Such real estate as shall be necessary in which to transact the business of any such bank, including with its banking offices, premises in the same building to rent as a source of income, also such real estate and improvements necessary for the operation and conduct of its branch banks, branch offices, drive-in windows and parking facilities not connected to the main office, branch banks or branch offices. The book value of the bank's real estate shall not exceed fifty percentum (50%) of its net capital funds as published by the last preceding call statement as of December 31, and this shall be without regard to population but subject to the approval of the state comptroller; however, the book value of such real estate and improvements shall be reduced each year the amount that is allowable for depreciation by the Internal Revenue Service until such book value shall be reduced to at least twenty-five percentum (25%) of the net capital funds as shown by its last published statement as of December 31. None of the facilities, main banking quarters, branch banks, branch offices, drive-in windows or parking facilities not connected to the main office, branch banks or branch offices shall be purchased or commenced without first having the approval of the state comptroller.
(b)
Such real estate as shall be purchased by or conveyed to such bank in satisfaction of or on account of debts previously contracted in the usual course of its business.
(c)
Such real estate as shall be purchased at sale under judgments, decrees or mortgages, or deeds of trust, foreclosure under securities held by such bank or under any security or lien which is a superior lien to that held by said bank.
(d)
Upon approval of the state comptroller, a bank may purchase additional real estate for future expansion or future new quarters but if said real estate is not developed for the purpose intended and purchased, the said real estate shall be disposed of within a period of five (5) years or reduced to a book value of one dollar ($1.00).
Any real estate acquired as provided in subsections (b) and (c) of this section shall be carried in the bank statement at such sound values as may be approved by the state comptroller, not to exceed its cost to the bank, and shall be sold within five years after the title thereto is acquired; unless the consent of the state comptroller is obtained in writing, extending such period; provided, however, no such extension shall be for more than five years. If any such real estate is not sold within the time herein limited, or within the time as extended by the state comptroller, it shall not thereafter be carried as a book asset of the bank in excess of one dollar ($1.00). It is not the purpose of other real estate acquired under subsections (b) and (c) of this section to be treated as part of the fifty percentum (50%) of net capital recited in the first paragraph of this section.
Codes, 1942, § 5216; Laws, 1934, ch. 146; Laws, 1936, ch. 165; Laws, 1952, ch. 182; Laws, 1970, ch. 271, § 1, eff. 4/3/1970.