{"data":{"id":"us-ok/okla.-stat.-tit.-6-6-414","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 6, § 6-414","heading":"Acquisition of real estate - Term held - Equipment,","body":"furniture and fixtures - Leases of real estate and equipment -\n\nInvestment and loans to corporations holding premises - Conveyance\n\nof real estate.\n\nA. 1. A bank or trust company may purchase and hold real\n\nestate, equipment, furniture and fixtures necessary for the\n\nconvenient transaction of its business, the cost of which shall not\n\nexceed its capital. This limitation may be exceeded upon written\n\napproval of the State Banking Commissioner.\n\n2. With prior approval of the Commissioner, a bank or trust\n\ncompany may purchase and hold fixtures, facilities and real estate,\n\nincluding but not limited to storage facilities, facilities for\n\ncivic or public use or facilities for the benefit of employees of\n\nthe bank, bank customers or the community. No banking business of\n\nany type shall be engaged in or conducted at such facilities.\n\n3. A bank or trust company may lease out to such tenants as it\n\ndeems appropriate any portion of its banking house or premises not\n\nutilized in the conduct of its banking operations.\n\n4. Upon prior written approval of the Commissioner, a bank or\n\ntrust company may purchase real estate at a location where the bank\n\nor trust company could lawfully establish an office.\n\n5. A state bank may purchase or construct a municipal building,\n\nsuch as a school building, or other similar public facility and, as\n\nholder of legal title, lease the same to a municipality or other\n\npublic authority having resources sufficient to make payment of all\n\nrentals as they become due. The lease agreement shall provide that\n\nupon its expiration the lessee will become owner of the building or\n\nfacility.\n\n6. Subject to prior approval by the Commissioner and such\n\nconditions and limitations as the Commissioner shall prescribe,\n\nwhich shall be consistent with any rules the State Banking Board may\n\nprescribe, a state bank may purchase real estate for the purpose of\n\nproducing income, sale, or for development and improvement,\n\nincluding the erection of buildings thereon, for sale or rental\n\npurposes.\n\nB. 1. A bank or trust company may purchase and hold real\n\nestate conveyed to it in satisfaction of debts previously contracted\n\nin good faith in the course of business.\n\n2. All such real estate shall be accounted for individually at\n\nthe lower of the recorded investment in the loan satisfied or its\n\nfair market value on the date of the transfer. The fair market\n\nvalue of the real estate must be supported by an appropriate\n\nevaluation of real property collateral that is consistent with safe\n\nand sound banking practices. The recorded value of the property\n\nmust be updated from time to time to reflect current market\n\nconditions as well as any other factors that may affect the fair\n\nmarket value.\n\n3. The recorded investment in the loan satisfied is the unpaid\n\nbalance of the loan, increased by accrued and uncollected interest,\n\nunamortized premium, and loan acquisition costs, if any, and\n\ndecreased by previous direct write down, finance charges and\n\nunamortized discount, if any.\n\nC. Upon notification by the bank to the Commissioner that such\n\nconditions exist that require the expenditure of funds for the\n\ndevelopment and improvement of such real estate, and subject to such\n\nconditions and limitations as the Commissioner shall prescribe, the\n\nbank may expend its funds to enable such bank to recover its total\n\ninvestment.\n\nD. A bank or trust company may acquire and hold real estate\n\nsuch as it shall purchase at sale under judgment, decree or mortgage\n\nforeclosure, under securities held by it.\n\nE. 1. Without the written approval of the Commissioner, real\n\nestate acquired in the cases contemplated in subsections B and D of\n\nthis section may be held for an initial holding period of no longer\n\nthan five (5) years from the date of acquisition. However, a bank\n\nmay apply, during the first two (2) years in which the real estate\nnt, decree or mortgage\n\nforeclosure, under securities held by it.\n\nE. 1. Without the written approval of the Commissioner, real\n\nestate acquired in the cases contemplated in subsections B and D of\n\nthis section may be held for an initial holding period of no longer\n\nthan five (5) years from the date of acquisition. However, a bank\n\nmay apply, during the first two (2) years in which the real estate\n\nis acquired by the bank, for approval by the Commissioner to retain\n\nsuch real estate for the purposes described in paragraph 6 of\n\nsubsection A of this section. In the case of approval by the\n\nCommissioner, the rules of this subsection shall not apply to such\n\nproperty. In the absence of such application, or if the application\n\nis denied by the Commissioner, the rules of this subsection shall\n\napply to the retention of the real estate by the bank.\n\n2. Following the expiration of the initial holding period, one\n\nadditional extension period of up to five (5) years may be granted\n\nupon the written approval of the Commissioner.\n\n3. A bank or trust company must begin to write down the book\n\nvalue for each property held as other real estate owned a minimum of\n\nten percent (10%) each year during the additional extension period.\n\nThe bank or trust company shall then be required to write off the\n\nremaining balance of the other real-estate-owned property at the end\n\nof the additional extension period.\n\n4. Unless a bank has applied for approval by the Commissioner\n\nduring the first two (2) years after the real estate is acquired, to\n\nretain such real estate for the purposes described in paragraph 6 of\n\nsubsection A of this section, a bank shall also continue efforts to\n\ndispose of the real estate at the earliest possible opportunity.\n\n5. At the conclusion of the additional extension period, real\n\nestate must be disposed of or, if approved by the Commissioner, must\n\nbe transferred to a subsidiary company of the bank.\n\n6. For purposes of this section, ownership interests in oil,\n\ngas and other subsurface mineral rights other than mere leasehold\n\ninterests shall be considered real estate. However, notwithstanding\n\nthe holding limitation of this section or any other provision\n\ncontained herein, any bank or trust company which on October 15,\n\n1982, held, directly or indirectly, any oil, gas and other\n\nsubsurface mineral rights, other than mere leasehold interests, that\n\nsince December 31, 1979, had not been valued on the books of such\n\nbank or trust company for more than a nominal amount, may continue\n\nto hold such subsurface rights or interest without limitation.\n\nF. Any bank or trust company organized under the laws of this\n\nstate may invest its funds in the stocks, bonds, debentures or other\n\nsuch obligations of any corporation holding the premises of such\n\nbank or trust company, and may make loans to or upon the security of\n\nany such corporation, but the aggregate of all such investments and\n\nloans together with the investments provided for in subsection A of\n\nthis section shall not exceed its capital. This limitation may be\n\nexceeded upon the written approval of the Commissioner.\n\nG. Every conveyance of real estate and every lease thereof made\n\nby a bank or trust company shall have the name of such bank or trust\n\ncompany subscribed thereto, either by an attorney-in-fact,\n\npresident, vice-president, chairperson or vice-chairperson of the\n\nboard of directors of such corporation.\n\nH. Nothing in this section shall preclude or limit in any\n\nmanner investments by a bank permitted under any other section of\n\nthis Code.","path":["OK Code","Title 6"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os6.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"730da154b3f8e04e979ca593c3d471fa9be97e10968c2a9ca0c88aa1f87acf04","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-6-6-412","next":"us-ok/okla.-stat.-tit.-6-6-415"},"notice":"GroundRules: Original legal text. Not legal advice."}