Rule 80-1-5-.02. Real Estate Loans

Rule 80-1-5-.02. Real Estate Loans

1. (1) A real estate loan (including a leasehold) within the meaning of Part 365 of the Federal Deposit Insurance Corporation's rules and regulations, including 12 CFR 365.1 and 365.2 and the Interagency Guidelines for Real Estate Lending Policies in Appendix A, and 12 C.F.R. 208.51 and the guidelines contained in 12 C.F.R. Part 208 in the case of Federal Reserve member banks, shall comply with the Real Estate Lending Standards of the above laws.
2. (2) If a loan could be made without real estate as security, a bank will not be penalized for adding real estate as collateral in an abundance of caution. A notation in the loan file must indicate this lack of reliance on the real estate and must meet general safety and soundness standards for credit risk. This does not constitute a waiver of O.C.G.A. § 7-1-285, related Department rules and regulations, or requirements of federal law, and the soundness of the loan should always be considered.
3. (3) Except as expressly authorized by O.C.G.A. §§ 7-1-262 or 7-1-263, banks may not acquire directly or indirectly any ownership interest in real estate without the prior written approval of the Department.

Authority: O.C.G.A. §§ 7-1-61; 7-1-286.

History. Original Rule entitled "Interpretations" adopted. F. and eff. June 30, 1965.

Repealed: New Rule of the same title adopted. F. June 9, 1972; eff. June 29, 1972.

Repealed: New Rule of the same title adopted. F. July 5, 1973; eff. July 25, 1973.

Repealed: New Rule entitled "Real Estate Loans" adopted. F. Aug. 28, 1975; eff. Sept. 17, 1975.

Amended: F. Jan. 31, 1978; eff. Feb. 20, 1978.

Amended: F. July 13, 1981; eff. August 2, 1981.

Amended: F. Aug. 17, 1983; eff. Sept. 6, 1983.

Amended: F. June 28, 1984; eff. August 1, 1984, as specified by the Agency.

Amended: F. Oct. 12, 1989; eff. Nov. 1, 1989.

Amended: F. Sept. 26, 1995; eff. Oct. 16, 1995.

Amended: F. July 14, 1998; eff. August 3, 1998.

Amended: F. Dec. 18, 2000; eff. Jan. 7, 2001.

Amended: F. July 28, 2003; eff. August 17, 2003.

Amended: F. Aug. 15, 2005; eff. Sept. 4, 2005.

Amended: F. Aug. 22, 2006; eff. Sept. 11, 2006.

Amended: F. Aug. 15, 2007; eff. Sept. 4, 2007.

Amended: F. Aug. 4, 2008; eff. Aug. 24, 2008.

Amended: F. June 29, 2017; eff. July 19, 2017.

Amended: F. July 9, 2019; eff. July 29, 2019.

Amended: F. Jan. 8, 2021; eff. Jan. 28, 2021.