- (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. FOR STATE-CHARTERED BANKS AND THEIR SUBSIDIARIES
- (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.
Authority: T.C.A. §45-1-107 and 45-2-607(a)(9). Administrative Hisory: Original rule filed August 31, 1998; effective December 29, 1998..