For real estate loans in which the transaction value exceeds $250,000, a professional appraisal report by a state certified or licensed appraiser, as required by the Financial Institutions Reform, Recovery and Enforcement Act of 1989, is necessary. Reappraisals may be required by the commissioner on real estate or other property or interests therein securing loans, at the expense of the credit union, when the commissioner has reason to believe the value of the security is overstated for any reason. The appraisal report shall be in writing and conform to generally accepted appraisal standards as evidenced by the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board of the Appraisal Foundation, 1029 Vermont Avenue, NW, Washington, D.C. 20005. In the case of renewal of a loan where additional funds are advanced by the credit union, a written certification of current value by the original appraiser or an acceptable substitute shall satisfy this section.

Source Note:The provisions of this §91.708 adopted to be effective August 9, 1999, 24 TexReg 6023; amended to be effective August 11, 2002, 27 TexReg 6834.