Tenn. Comp. R. & Regs. 0180-19-.08 - BANK INVESTMENTS IN REAL PROPERTY
(1) Pursuant to
T.C.A. §
45-2-607(a)(9)
banks, either directly or indirectly, may invest in real property to the extent
that the total depreciated value thereof does not exceed the capital of the
bank;
(2) The Commissioner has
determined, based upon safety and soundness concerns, that no bank , directly or
indirectly, shall invest more than twenty-five percent (25%) of its capital in
any single piece of real property or real estate project.
(3) Investments in real property and fixed
assets used solely in the conduct of the business of the bank shall not be
subject to this Rule.
(4) Real
property acquired in good faith through foreclosure on collateral, by way of a
compromise of a doubtful claim, or to avoid a loss in connection with a debt
previously contracted, shall not be subject to this Rule unless the Board of
Directors so designates the property as an investment for the bank as permitted
in Chapter 0180-14.
Notes
Authority: T.C.A. § 45-1-107 and 45-2-607(a)(9).
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