Bank Investments In Real Property

(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. RULES OF PROCEDURE FOR INVESTMENTS AND ACTIVITIES CHAPTER 0180-19 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.