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Can you summarize LAAC Title 10, Part III, Chapter 3, Section 325?
Exchange of Other Real Estate > Regulation
Short Summary
This regulation governs the exchange of other real estate by banks in Louisiana. It allows banks to exchange complex, difficult, or uneconomical properties for properties that are less complex, less difficult, or more economical to maintain. The exchange must be approved by the bank’s board of directors and supported by current appraisals. The bank must also maintain documentation of the exchange and its marketing efforts to dispose of the previously held property. The divestiture period for the exchanged property begins on the original date of acquisition, and the bank may choose to reduce the value of immovable property each year. The book value of the property acquired in the exchange cannot exceed the book value or appraised value of the exchanged property. The regulation also allows banks to exchange property held in another real estate account for premises or future expansion, with prior approval from the commissioner. Requests for approval must contain sufficient documentation. Violation of this rule may result in penalties such as removing the exchanged real estate from the bank’s books and requiring responsible directors to purchase or dispose of the property.
Whom does it apply to?
Banks
What does it govern?
Exchange of Other Real Estate
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Property exchanged in violation of this rule may result in the requirement to remove the exchanged real estate from the bank's books and citation of violation of R.S. 6:243. Directors responsible for the exchange in violation may be required to purchase or dispose of the property and be responsible for any loss sustained by the bank.
Jurisdiction
Louisiana