Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING › Chapter 75 - SAVINGS BANKS › Subchapter D - LOANS, INVESTMENTS, SAVINGS, AND DEPOSITS › Division 1 - AUTHORIZED LOANS AND INVESTMENTS › Section 75.309 - Investment in Banking Premises and Other Real Estate Owned

Current through Reg. 49, No. 28; July 12, 2024
(a) A savings bank
					 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 bank 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 bank, or for the use of the bank in future
					 expansion of its banking facilities.
(c) Real estate acquired for the future
					 expansion of a savings bank's facilities not improved and occupied as banking
					 facilities within 5 years from the date of its acquisition must be sold or
					 otherwise disposed of. Existing bank facilities must be sold or otherwise
					 disposed of within 5 years of 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 bank may be held by a savings bank 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 bank must substantiate the market value of the real estate
					 by obtaining an appraisal within 90 days of 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 bank 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 Federal Deposit Insurance Corporation 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.