Regulatory Alerts2020-02-24
State Bank Immovable Property Regulations
The Louisiana Commissioner of Financial Institutions authorizes state banks to purchase, hold, and convey immovable property for business operations, loan security, debt satisfaction, and shared appreciation loans. Banks must generally divest such assets within ten years, obtain initial and periodic appraisals or evaluations based on property value, and may alternatively reduce the book value by at least ten percent annually. The statute permits perpetual holding without standard divestiture or valuation if the property is transferred to a subsidiary, written down to one dollar, not operated as an ongoing business, and receives commissioner approval.
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