Specific loss reserve; determination of values by Commissioner.
1. The Commissioner may require each association to establish and maintain a specific loss reserve for the amount by which the book value of any asset exceeds the Commissioner’s appraisal of the asset.
2. In determining the values of the security properties for a group of loans, the Commissioner may use his appraisal of each property or his estimate of the total value of the properties based upon his appraisal of a reasonable sample thereof. If any association contests the validity of the estimate based upon a sample, it may have an appraisal, at its own expense, by an appraiser approved by the Commissioner, of all the group from which the sample was drawn, or of a larger sample of the group than was recommended by the Commissioner.
3. If the Commissioner has directed an association to carry a specific loss reserve on its books, the amount so designated for this purpose by the Commissioner cannot be reduced or changed in any manner without his written approval.
4. The provisions of subsections 2 and 3 are effective on July 1, 1967, but must not be applied retroactively.
Last modified: February 26, 2006