Section 34.85 - Appraisal requirements(a)General.(1) Upon transfer to OREO, a national bank or Federal savings association shall substantiate the parcel's market value by obtaining either:(i) An appraisal in accordance with subpart C of this part; or(ii) An appropriate evaluation when the recorded investment amount is equal to or less than the threshold amount in subpart C of this part.(2) A national bank or Federal savings association shall develop a prudent real estate collateral evaluation policy that allows the bank or savings association to monitor the value of each parcel of OREO in a manner consistent with prudent banking practice.(b)Exception. If a national bank or Federal savings association has a valid appraisal or an appropriate evaluation obtained in connection with a real estate loan and in accordance with subpart C of this part, then the bank or savings association need not obtain another appraisal or evaluation when it acquires ownership of the property.(c)Sales of OREO. A national bank or Federal savings association need not obtain a new appraisal or evaluation when selling OREO if the sale is consummated based on a valid appraisal or an appropriate evaluation.61 FR 11301, Mar. 20, 1996, as amended at 84 FR 56375 , Oct. 22, 2019