Flashcards in ORE Reg Branching Deck (19):
1
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
2
Methods a bank may use to remove a borrower and acquire ownership of the property?
Deed-in-Lieu of forclosure and forclosure
3
ORE should be recorded on the bank's balance sheet as?
Fair value minus the cost to sell
4
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
5
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.
6
Legal proceeding governed by the individual state's statutory law?
Forclosure
7
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.
8
SFAS 66 down payment requirements
Land 20 - 25% Commercial & Industrial 10 - 25% Multifamily Residential 10 - 25% Single Family Residential 5 - 10%
9
This instrument helps establish the legal holding period of ORE.
Deed
10
Reg Z
Truth in lending act - Pertains to credit term disclosures that creditors must provide to consumer loan borrowers.
11
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.
12
Reg X
Real Estate Settlement Procedures Act - Requires lenders to provide borrowers with disclosures regarding the nature and cost of real estate settlement process.
13
Reg DD
Truth in Savings Act - created to help consumers make better informed decision about accounts at depository institutions through use of uniform disclosures.
14
Reg CC
Expedited Funds Availability Act - passed to ensure that banks don't hold deposit fund for excessive periods of time.
15
Reg E
Electronic Funds Transfer Act - enacted to ensure that consumers are treated fairly when conducting ATM transactions or pre-authorized debit/credits
16
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.
17
Reg B
Equal Credit Opportunity Act - prevents discrimination in lending because of a person's race, religion, gender, ageetc.
18
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.
19