Regulatory Alerts2023-03-01
Notice to Rescind Other Real Estate (ORE) Guidance Issued on March 19, 2020
The Alabama State Banking Department issued a memorandum by Superintendent Mike Hill to rescind the March 19, 2020 authorization that allowed state-chartered banks to pause required write-downs of Other Real Estate (ORE) properties. Effective March 1, 2023, banks must resume these write-downs, resulting in a three-year extension of previously approved holding schedules so that book values reach no more than $1 by the end of the tenth year. Examiners will continue to independently assess the marketability and valuation of ORE properties during Safety and Soundness examinations, with the potential to classify book values as Loss.
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