§ 34.85. Appraisal requirements.
206 words·~1 min read·
/us/cfr/t12/s§ 34.85·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General.
(1)Upon transfer to OREO, a national bank or Federal savings association shall substantiate the parcel's market value by obtaining either:
(i)An appraisal in accordance with subpart C of this part; or
(ii)An appropriate evaluation when the recorded investment amount is equal to or less than the threshold amount in subpart C of this part.
(2)A national bank or Federal savings association shall develop a prudent real estate collateral evaluation policy that allows the bank or savings association to monitor the value of each parcel of OREO in a manner consistent with prudent banking practice.
(b)Exception. If a national bank or Federal savings association has a valid appraisal or an appropriate evaluation obtained in connection with a real estate loan and in accordance with subpart C of this part, then the bank or savings association need not obtain another appraisal or evaluation when it acquires ownership of the property.
(c)Sales of OREO. A national bank or Federal savings association need not obtain a new appraisal or evaluation when selling OREO if the sale is consummated based on a valid appraisal or an appropriate evaluation. [61 FR 11301, Mar. 20, 1996, as amended at 84 FR 56375, Oct. 22, 2019]