Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 60 - SAVINGS ASSOCIATIONS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 60.309 - Investment in Banking Premises and Other Real Estate Owned

Current through Reg. 49, No. 28; July 12, 2024
(a) A savings
					 association may not, without prior written consent of the Commissioner, invest
					 an amount in excess of its capital in fixed assets, including land,
					 improvements, furniture and fixtures, and other depreciable assets, and capital
					 leases.
(b) A savings association
					 may not acquire real estate, other than its domicile, except in satisfaction or
					 partial satisfaction of indebtedness, or in the ordinary course of the
					 collection of loans and other obligations owing the savings association, or for
					 the use of the savings association in future expansion of its banking
					 facilities.
(c) Real estate
					 acquired for the future expansion of a savings association's facilities not
					 improved and occupied as banking facilities on or before 5 years after the date
					 of its acquisition must be sold or otherwise disposed of. Existing bank
					 facilities must be sold or otherwise disposed of on or before 5 years after the
					 date the real estate ceases to be used for banking purposes. The Commissioner
					 may, for good cause shown, grant an extension of time for the sale or
					 disposition of the real estate, as described in this subsection.
(d) Real estate acquired in satisfaction or
					 partial satisfaction of indebtedness, or in the ordinary course of the
					 collection of loans and other obligations owing the savings association may be
					 held by a savings association for no more than 5 years, unless the Commissioner
					 extends in writing the holding period for such property.
(e) Subject to subsection (f) of this
					 section, when real estate is acquired in accordance with subsection (d) of this
					 section, a savings association must substantiate the market value of the real
					 estate by obtaining an appraisal on or before 90 days after the date of
					 acquisition. An evaluation may be substituted for an appraisal if the recorded
					 book value of the real estate is $500,000 or less. The Commissioner may, for
					 good cause shown, grant an extension of time for obtaining an appraisal or
					 evaluation (as appropriate), as described in this subsection.
(f) An additional appraisal or evaluation is
					 not required when a savings association acquires real estate in accordance with
					 subsection (d) of this section, if a valid appraisal or appropriate evaluation
					 was made in connection with the real estate loan that financed the acquisition
					 of the real estate and the appraisal or evaluation is less than 1 year
					 old.
(g) An evaluation must be made
					 on all real estate acquired in accordance with subsection (d) of this section
					 at least once a year. An appraisal must be made at least once every 3 years on
					 real estate with a recorded book value in excess of $500,000.
(h) Notwithstanding any other provision of
					 this section, the Commissioner may require an appraisal of real estate if the
					 Commissioner considers an appraisal necessary to address safety and soundness
					 concerns.
(i) An appraisal or
					 evaluation made in accordance with this section must be performed in accordance
					 with the standards described by the FDIC in 12 C.F.R., Part 323, Subpart A or
					 the Federal Reserve System in 12 C.F.R., Part 225, Subpart G, as
					 applicable.