Compilation of Rules and Regulations of the State of Georgia
Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE
Chapter 80-1 - BANKS
Subject 80-1-5 - LOANS AND DISCOUNTS
Rule 80-1-5-.02 - Real Estate Loans
Current through Rules and Regulations filed through March 20, 2024
(1) A real estate loan (including a leasehold) within the meaning of Part 365 of the Federal Deposit Insurance Corporation's rules and regulations, including 12 CFR 365.1 and 365.2 and the Interagency Guidelines for Real Estate Lending Policies in Appendix A, and 12 C.F.R. 208.51 and the guidelines contained in 12 C.F.R. Part 208 in the case of Federal Reserve member banks, shall comply with the Real Estate Lending Standards of the above laws.
(2) If a loan could be made without real estate as security, a bank will not be penalized for adding real estate as collateral in an abundance of caution. A notation in the loan file must indicate this lack of reliance on the real estate and must meet general safety and soundness standards for credit risk. This does not constitute a waiver of O.C.G.A. § 7-1-285, related Department rules and regulations, or requirements of federal law, and the soundness of the loan should always be considered.
(3) Except as expressly authorized by O.C.G.A. §§ 7-1-262 or 7-1-263, banks may not acquire directly or indirectly any ownership interest in real estate without the prior written approval of the Department.
O.C.G.A. §§ 7-1-61; 7-1-286.
