Disposition of real estate acquired through debt collection

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  1. (a) Except as provided in subsection (b) of this section, real estate acquired through the collection of debts previously contracted in the ordinary course of business shall not be held by the state bank as an asset for a longer period than five (5) years.

  2. (b) The Bank Commissioner is authorized to grant an extension of the holding period not to exceed five (5) additional years, or for shorter periods as circumstances warrant, based upon his or her discretion.

  3. (c) Real estate held pursuant to this section shall be considered an asset of the bank. The value of the asset shall be based upon fair market value supported by an appraisal or appropriate evaluation when the bank acquires ownership of the property or as established by rule of the commissioner.


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