W. Va. Code R. § 106-18-4

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

Section 106-18-4 - Holding Period

4.1. Pursuant to W. Va. Code '31A-4-13(e) a state-chartered bank may hold other real estate owned for a period not to exceed ten years, except that the Commissioner may approve a written request by the bank to extend the holding period for up to an additional two years, if:

4.1.1. The bank has made a good faith attempt to dispose of the other real estate owned within the ten year period; or

4.1.2. Disposal of the other real estate owned within the ten year period would be detrimental to the bank.

4.2. The holding period begins on the date that ownership of the property is originally transferred to the state-chartered bank except that: The holding period for former banking premises begins on the date of relocation to new banking quarters. If there is no relocation or if the property was originally acquired for future expansion and will not be used as such, then the holding period begins on the date on which the bank decides that banking use is no longer contemplated.

4.3. Real estate acquired by a state-chartered bank for future bank expansion should normally be used within three (3) years. Prior to acquisition of such real estate, the bank shall state, by board of directors resolution or other official action, definite plans for its use. The resolution or other official action shall be available to inspection by state and federal bank examiners.

4.4. A state-chartered bank may comply with its obligation to dispose of other real estate obtained through foreclosure or surrender of deed or otherwise in satisfaction of debt previously contracted by retaining the property for its own use as bank premises or by transferring it to a subsidiary for use in the business of the subsidiary upon the approval of the institution's board of directors.

W. Va. Code R. § 106-18-4