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Texas Finance Code - Section 34.003. Other Real Property

Legal Research Home > Texas Lawyer > Finance Code > Texas Finance Code - Section 34.003. Other Real Property

§ 34.003. OTHER REAL PROPERTY.  (a) A state bank may not 
acquire real property except:
		(1)  as permitted by this subtitle or rules adopted 
under this subtitle;    
		(2)  with the prior written approval of the banking 
commissioner;  or       
		(3)  as necessary to avoid or minimize a loss on a loan 
or investment previously made in good faith.
	(b)  With the prior written approval of the banking 
commissioner, a state bank may:
		(1)  exchange real property for other real property or 
personal property;   
		(2)  invest additional money in or improve real 
property acquired under this subsection or Subsection (a);  or
		(3)  acquire additional real property to avoid or 
minimize loss on real property acquired as permitted by Subsection 
(a).
	(c)  A state bank shall dispose of real property subject to 
this section not later than:
		(1)  the fifth anniversary of the date:                                       
			(A)  it was acquired except as otherwise provided 
by rules adopted under this subtitle;  or
			(B)  it ceases to be used as a bank facility;  or                            
		(2)  the second anniversary of the date it ceases to be 
a bank facility as provided by Section 34.002(b).
	(d)  The banking commissioner on application may grant one or 
more extensions of time for disposing of real property if the 
banking commissioner determines that:
		(1)  the bank has made a good faith effort to dispose of 
the real property;  or
		(2)  disposal of the real property would be detrimental 
to the bank.        

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   

Last modified: August 10, 2007