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Can you summarize MNAC 2675.3120?
FINANCIAL INSTITUTIONS > OTHER REAL ESTATE.
Short Summary
This provision governs the treatment of ‘other real estate’ acquired by associations through foreclosure or deed in lieu thereof. When an association acquires title to real estate, it must transfer it to an account called ‘other real estate’. The amount entered in this account cannot exceed the balance of the principal amount of the loan at the time of acquisition, plus foreclosure costs and delinquent taxes and assessments paid at the time of acquisition. A separate record must be maintained for each parcel, including details such as the legal description, balance due on the principal debt, foreclosure costs, delinquent taxes, subsequent additions, charge-offs, and final disposition. The cost of repairs or restoration cannot be added to the real estate account, except for permanent improvements. Book value cannot be increased after the date of sale in foreclosure cases. If a deed is taken in lieu of foreclosure, the real estate must be carried at a figure not exceeding the balance due on the mortgage, plus taxes and assessments paid by the association. When ‘other real estate’ is sold on a contract for deed, it must be transferred to an account called ‘real estate contracts’. If sales are made at prices higher than the book value, the profit is considered deferred and held in a reserve account until 33-1/3 percent of the purchase price has been paid on the contract, excluding interest payments.
Whom does it apply to?
Associations acquiring real estate through foreclosure or deed in lieu thereof
What does it govern?
Other real estate
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota