| (E) is three years following the acquisition of real
estate as a trust company facility for future expansion or relocation
of the trust company if the real estate has not been occupied by the
trust company, unless the banking commissioner has granted written
approval to a further delay in the improvement and occupation of the
real estate.
(3) The banking commissioner may grant one or more
additional extensions of time for disposing of OREO acquired with
the restricted capital of the trust company if the commissioner finds
that the trust company has made a good faith effort to dispose of
the OREO or that disposal of the OREO would be detrimental to the
safety and soundness of the trust company.
(h) Disposition efforts; documentation. A trust company
must make diligent and ongoing efforts to dispose of OREO acquired
with the restricted capital of the trust company and must maintain
documentation adequate to reflect those efforts. Such documentation
must be available for inspection by the commissioner. If secondary
capital is adequate to reclassify OREO in a manner that does not impinge
on restricted capital, this disposition requirement does not apply.
(i) Disposition of OREO. A trust company may dispose
of OREO by:
(1) selling the OREO in a transaction that qualifies
as a sale under regulatory accounting principles;
(2) selling the OREO pursuant to a land contract or
contract for deed;
(3) retaining the property for its own use as a trust
company facility, subject to the approval of the commissioner;
(4) transferring the OREO for market value to an affiliate,
subject to Finance Code, §183.109, and applicable federal law,
including 12 United States Code, §§371c, 371c-1, and 1828(j);
(5) if the OREO is a master lease, obtaining a coterminous
sublease or an assignment of a coterminous sublease, provided that
if the trust company acquires or obtains assignment of a non-coterminous
sublease, the holding period during which the master lease must be
divested is suspended for the duration of the sublease and will commence
running again upon termination of the sublease; or
(6) entering into a transaction that does not qualify
for disposal under paragraphs (1) - (5) of this subsection; provided
that its obligation to dispose of the OREO is not met until the trust
company receives or accumulates from the purchaser an amount in cash,
principal and interest payments, and private mortgage insurance totaling
10% of the sales price, as measured in accordance with regulatory
accounting principles.
(j) Accounting for investments in facilities and OREO.
A state trust company shall comply with regulatory accounting principles
in accounting for its:
(1) investment in and depreciation of facilities, furniture,
fixtures, and equipment; and
(2) investment in OREO and disposition of OREO.
|
| Source Note: The provisions of this §19.51 adopted to be effective December 31, 1998, 23 TexReg 13030; amended to be effective July 11, 2002, 27 TexReg 5962; amended to be effective November 7, 2013, 38 TexReg 7689; amended to be effective December 31, 2020, 45 TexReg 9413 |
