{"data":{"id":"us/12-cfr-34.85","jurisdiction":"us","citation":"12 CFR 34.85","heading":"Appraisal requirements.","body":"(a) General. (1) Upon transfer to OREO, a national bank or Federal savings association shall substantiate the parcel's market value by obtaining either:\n(i) An appraisal in accordance with subpart C of this part; or\n(ii) An appropriate evaluation when the recorded investment amount is equal to or less than the threshold amount in subpart C of this part.\n(2) A national bank or Federal savings association shall develop a prudent real estate collateral evaluation policy that allows the bank or savings association to monitor the value of each parcel of OREO in a manner consistent with prudent banking practice.\n(b) Exception. If a national bank or Federal savings association has a valid appraisal or an appropriate evaluation obtained in connection with a real estate loan and in accordance with subpart C of this part, then the bank or savings association need not obtain another appraisal or evaluation when it acquires ownership of the property.\n(c) Sales of OREO. A national bank or Federal savings association need not obtain a new appraisal or evaluation when selling OREO if the sale is consummated based on a valid appraisal or an appropriate evaluation.","path":["Title 12—Banks and Banking","CHAPTER I—COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY","PART 34—REAL ESTATE LENDING AND APPRAISALS","Subpart E—Other Real Estate Owned"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"70415bd41513dd8dd4ff77ccf71f2ce5aa77c3b260fa62782e8bc8edbdb4b502","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-34.84","next":"us/12-cfr-34.86"},"notice":"GroundRules: Original legal text. Not legal advice."}