Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 2 - TEXAS DEPARTMENT OF BANKING › Chapter 19 - TRUST COMPANY LOANS AND INVESTMENTS › Subchapter C - REAL ESTATE › Section 19.51 - Other Real Estate Owned

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Definitions. Words and terms used in this subchapter that are defined in
				  Finance Code, §
										RSA 181.001
et
				  seq.
have the same meanings as defined therein. The following words
				  and terms when used in this subchapter shall have the following meanings,
				  unless the context clearly indicates the contrary.
(1) Appraisal--A written report by a state
				  certified or licensed appraiser containing sufficient information to support
				  the trust company's evaluation of OREO taking into consideration market value,
				  analyzing appropriate deductions or discounts, and conforming to generally
				  accepted appraisal standards, unless principles of safety and soundness
				  applicable to trust companies require stricter standards.
(2) Appraiser--A state certified or licensed
				  staff appraiser or a state certified or licensed third party fee appraiser with
				  relevant and competent experience and background as related to a particular
				  appraisal assignment.
(3)
				  Coterminous sublease--A lease with the same duration as the remainder of the
				  master lease.
(4) Evaluation--A
				  written report prepared by an evaluator describing the OREO and its condition,
				  the source of information used in the analysis, the actual analysis and
				  supporting information, and the estimate of the OREO's market value, with any
				  limiting conditions.
(5)
				  Evaluator--An individual who has related real estate training or experience and
				  knowledge of the market relevant to the OREO but who has no direct or indirect
				  interest in the OREO. An appraiser may be an evaluator.
(6) Generally accepted appraisal
				  standards--The Uniform Standards of Professional Appraisal Practice (USPAP)
				  promulgated by the Appraisal Standards Board, Appraisal Foundation, Washington,
				  D.C.
(7) Market value--The most
				  probable price which a property should bring in a competitive and open market
				  under all conditions requisite to a fair sale, the buyer and seller each acting
				  prudently and knowledgeably, and assuming the price is not affected by undue
				  stimulus. Implicit in this definition is the consummation of a sale as of a
				  specified date and the passing of title from seller to buyer under conditions
				  whereby:
(A) buyer and seller are typically
				  motivated;
(B) both parties are
				  well informed or well advised, and acting in what they consider their own best
				  interests;
(C) a reasonable time is
				  allowed for exposure in the open market;
(D) payment is made in terms of cash in U.S.
				  dollars or in terms of financial arrangements comparable thereto; and
(E) the price represents the normal
				  consideration for the property sold unaffected by special or creative financing
				  or sales concessions granted by anyone associated with the sale.
(8) Non-coterminous sublease--A
				  lease with a duration shorter than the remainder of the master lease.
(9) Other Real Estate Owned (OREO)--Real
				  estate, including improvements, mineral interests, surface, and subsurface
				  rights, owned in whole or in part or leased by a trust company, no matter how
				  acquired, which is not a trust company facility as defined by paragraph (3) of
				  this subsection or leasehold property as permitted under Finance Code, §
											RSA 184.203.
(10) Staff appraiser--An appraiser on the
				  staff of a trust company who has no direct or indirect interest in the
				  OREO.
(11) Third party fee
				  appraiser--An appraiser who has an independent contractor relationship with a
				  trust company and has no direct or indirect interest in the OREO.
(12) Trust company facility--Real property,
				  including improvements, owned or leased, to the extent the lease or the
				  leasehold improvements are capitalized, by a trust company if the real estate
				  is held for the purposes set forth in Finance Code, §
											RSA 184.001, and is not
				  disqualified under Finance Code, §
											RSA
				  184.002(b). The term also
				  includes capitalized leasehold improvements if held for the same
				  purposes.
(13) Year--For the
				  purposes of this section, a calendar year.