Disposition of OREO.

CFR · 2024-01-01 · US · Title 12

(a) (1) With respect to OREO in general: (i) By entering into a transaction that is a sale under generally accepted accounting principles; (ii) By entering into a transaction that involves a loan guaranteed or insured by the United States government or by an agency of the United States government or a loan eligible for purchase by a Federally-sponsored instrumentality that purchases loans; or (iii) By selling the property pursuant to a land contract or a contract for deed; (2) With respect to DPC real estate, by retaining the property for its own use as bank premises or by transferring it to a subsidiary or affiliate for use in the business of the subsidiary or affiliate; (3) With respect to a lease: (i) By obtaining an assignment or a coterminous sublease. If a national bank or Federal savings association enters into a sublease that is not coterminous, the period during which the master lease must be divested will be suspended for the duration of the sublease, and will begin running again upon termination of the sublease. A national bank or Federal savings association holding a lease as OREO may enter into an extension of the lease that would exceed the holding period referred to in § 34.82 if the extension meets the following criteria: (A) The extension is necessary in order to sublease the master lease; (B) The national bank or Federal savings association, prior to entering into the extension, has a firm commitment from a prospective subtenant to sublease the property; and

official document · source cfr-2024 · id 12:§ 34.83