W. Va. Code R. § 106-18-3

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 106-18-3 - Valuation of Real Estate Held by State-Chartered Banks

3.1. Real Estate Held For Use -- In determining the value that a state-chartered bank places on its books for a real estate asset which it holds for use to conduct its banking business, the bank shall calculate the amount as the lesser of fair value or cost, the cost being the price paid by the bank to purchase the property minus depreciation.

3.2. Real Estate Held For Sale -- In determining the value that a state-chartered bank places on its books for a real estate asset which it obtained by foreclosure or otherwise obtained and holds for sale, the bank shall calculate the amount as the lesser of fair value or cost, the cost being the price actually paid to obtain the property at foreclosure plus the bank's unpaid loan balance, or in the event the property is surrendered by deed or otherwise obtained by the bank in satisfaction of debt previously contracted, the amount of the unpaid loan balance.

3.3. Use of GAAP Principals -- In determining the value of other real estate owned by the bank and held for sale, as well as the value of real estate held by the bank for its own use, and in determining the proper accounting for the disposal of the real estate, state-chartered banks shall use "Generally Accepted Accounting Principals" (GAAP) as set forth by the American Institute of Certified Public Accountants (AICPA).

3.4. Conformity With Federal Law -- Notwithstanding any contrary provision of this rule, state-chartered banks shall follow federal banking law and regulations in determining their real estate's fair value and cost.

W. Va. Code R. § 106-18-3