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Flashcards in ORE Reg Branching Deck (19)
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Bad Debts

Matured obligations due a bank on which the interest is past due and unpaid for 6 months, unless the debts are well secured and in the process of collection


Methods a bank may use to remove a borrower and acquire ownership of the property?

Deed-in-Lieu of forclosure and forclosure


ORE should be recorded on the bank's balance sheet as?

Fair value minus the cost to sell


What is it called when ORE is acquired by lender in satisfaction or partial satisfaction of a debt and held until sold?

Debts previously contracted


Most common methods used when bank finances ORE.

Full Accrual - bank may recognize immediately entire profit. Deposit Method - requires cash received as a down payment to be accounted for as a liability.


Legal proceeding governed by the individual state's statutory law?



These ORE expenses may be capitalized

If property is under contruction, tax and insurance. Also, legal fees paid for purposes that clearly enhance value of property.


SFAS 66 down payment requirements

Land 20 - 25% Commercial & Industrial 10 - 25% Multifamily Residential 10 - 25% Single Family Residential 5 - 10%


This instrument helps establish the legal holding period of ORE.



Reg Z

Truth in lending act - Pertains to credit term disclosures that creditors must provide to consumer loan borrowers.


Reg H

Flood Disaster Protection Act - State Member Banks may not make loans secured by property located in special flood hazard area unless the property is covered by flood insurance.


Reg X

Real Estate Settlement Procedures Act - Requires lenders to provide borrowers with disclosures regarding the nature and cost of real estate settlement process.


Reg DD

Truth in Savings Act - created to help consumers make better informed decision about accounts at depository institutions through use of uniform disclosures.


Reg CC

Expedited Funds Availability Act - passed to ensure that banks don't hold deposit fund for excessive periods of time.


Reg E

Electronic Funds Transfer Act - enacted to ensure that consumers are treated fairly when conducting ATM transactions or pre-authorized debit/credits


Reg P

Privacy of Consumer Financial Info - Reg P implements the regulatory requirements of the GLBA privacy provisions. Requires institutions to provide privacy notices to consumers.


Reg B

Equal Credit Opportunity Act - prevents discrimination in lending because of a person's race, religion, gender, ageetc.


Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

prohibits any bank from establishing or acquiring a branch or branches outside of its home state primarily for the purpose of deposit production.


Section 109 Testing

1. bank’s statewide loan-to-deposit ratio is compared w/the host state loan to deposit ratio (at least one-half to comply) 2. determining whether the bank is reasonably helping to meet the creditneeds of the communities served by its interstatebranches