New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 16 - BANKING
Part 40 - OTHER REAL ESTATE OWNED
Section 12.16.40.8 - OTHER REAL ESTATE OWNED
Current through Register Vol. 35, No. 18, September 24, 2024
Supplementary to Section 58-1-25 D NMSA 1978:
A. The requirements a) for an appraisal upon transfer to other real estate owned, and b) a subsequent annual anniversary appraisal or letter certification are waived, if the entire property is recorded at or below the lower of five percent (5%) of the bank's equity capital (exclusive of valuation reserves) or $50,000.00. The director may require an appraisal on a given property of lesser value at his discretion.
B. For other real estate owned recorded at or below $250,000.00, the appraisal requirements prescribed will be waived, at the option of bank management, if the original book value of the property is charged off at a rate of ten percent (10%) for the first year, fifteen percent (15%) for the second year, twenty percent (20%) for the third year, twenty-five percent (25%) for the fourth year and thirty percent (30%) for the fifth year. Once this option is elected, it must be completed.
