Regulatory Alerts2011-03-10
Added · Updated
State Banking Board: Purchase and ownership of real property to provide lease financing of a public facility
The North Dakota State Banking Board issued an order authorizing state-chartered banks to purchase and hold real property for the purpose of providing lease financing of public facilities. This authority mirrors the powers granted to federally chartered banks under 12 C.F.R. § 7.1000(d)(1), allowing banks to lease municipal or school buildings to public authorities with sufficient resources to make rental payments. If the lease terminates and the bank becomes the sole owner of the property, the bank must sell the real property within five years unless the commissioner grants an extension.
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