Okla. Stat. tit. 6, § 6-414

furniture and fixtures - Leases of real estate and equipment -

Investment and loans to corporations holding premises - Conveyance

of real estate.

A. 1. A bank or trust company may purchase and hold real

estate, equipment, furniture and fixtures necessary for the

convenient transaction of its business, the cost of which shall not

exceed its capital. This limitation may be exceeded upon written

approval of the State Banking Commissioner.

2. With prior approval of the Commissioner, a bank or trust

company may purchase and hold fixtures, facilities and real estate,

including but not limited to storage facilities, facilities for

civic or public use or facilities for the benefit of employees of

the bank, bank customers or the community. No banking business of

any type shall be engaged in or conducted at such facilities.

3. A bank or trust company may lease out to such tenants as it

deems appropriate any portion of its banking house or premises not

utilized in the conduct of its banking operations.

4. Upon prior written approval of the Commissioner, a bank or

trust company may purchase real estate at a location where the bank

or trust company could lawfully establish an office.

5. A state bank may purchase or construct a municipal building,

such as a school building, or other similar public facility and, as

holder of legal title, lease the same to a municipality or other

public authority having resources sufficient to make payment of all

rentals as they become due. The lease agreement shall provide that

upon its expiration the lessee will become owner of the building or

facility.

6. Subject to prior approval by the Commissioner and such

conditions and limitations as the Commissioner shall prescribe,

which shall be consistent with any rules the State Banking Board may

prescribe, a state bank may purchase real estate for the purpose of

producing income, sale, or for development and improvement,

Oklahoma Statutes - Title 6. Banks and Trust Companies Page 64

including the erection of buildings thereon, for sale or rental

purposes.

B. 1. A bank or trust company may purchase and hold real

estate conveyed to it in satisfaction of debts previously contracted

in good faith in the course of business.

2. All such real estate shall be accounted for individually at

the lower of the recorded investment in the loan satisfied or its

fair market value on the date of the transfer. The fair market

value of the real estate must be supported by an appropriate

evaluation of real property collateral that is consistent with safe

and sound banking practices. The recorded value of the property

must be updated from time to time to reflect current market

conditions as well as any other factors that may affect the fair

market value.

3. The recorded investment in the loan satisfied is the unpaid

balance of the loan, increased by accrued and uncollected interest,

unamortized premium, and loan acquisition costs, if any, and

decreased by previous direct write down, finance charges and

unamortized discount, if any.

C. Upon notification by the bank to the Commissioner that such

conditions exist that require the expenditure of funds for the

development and improvement of such real estate, and subject to such

conditions and limitations as the Commissioner shall prescribe, the

bank may expend its funds to enable such bank to recover its total

investment.

D. A bank or trust company may acquire and hold real estate

such as it shall purchase at sale under judgment, decree or mortgage

foreclosure, under securities held by it.

E. 1. Without the written approval of the Commissioner, real

estate acquired in the cases contemplated in subsections B and D of

this section may be held for an initial holding period of no longer

than five (5) years from the date of acquisition. However, a bank

may apply, during the first two (2) years in which the real estate
nt, decree or mortgage

foreclosure, under securities held by it.

E. 1. Without the written approval of the Commissioner, real

estate acquired in the cases contemplated in subsections B and D of

this section may be held for an initial holding period of no longer

than five (5) years from the date of acquisition. However, a bank

may apply, during the first two (2) years in which the real estate

is acquired by the bank, for approval by the Commissioner to retain

such real estate for the purposes described in paragraph 6 of

subsection A of this section. In the case of approval by the

Commissioner, the rules of this subsection shall not apply to such

property. In the absence of such application, or if the application

is denied by the Commissioner, the rules of this subsection shall

apply to the retention of the real estate by the bank.

2. Following the expiration of the initial holding period, one

additional extension period of up to five (5) years may be granted

upon the written approval of the Commissioner.

3. A bank or trust company must begin to write down the book

value for each property held as other real estate owned a minimum of

ten percent (10%) each year during the additional extension period.

The bank or trust company shall then be required to write off the

Oklahoma Statutes - Title 6. Banks and Trust Companies Page 65

remaining balance of the other real-estate-owned property at the end

of the additional extension period.

4. Unless a bank has applied for approval by the Commissioner

during the first two (2) years after the real estate is acquired, to

retain such real estate for the purposes described in paragraph 6 of

subsection A of this section, a bank shall also continue efforts to

dispose of the real estate at the earliest possible opportunity.

5. At the conclusion of the additional extension period, real

estate must be disposed of or, if approved by the Commissioner, must

be transferred to a subsidiary company of the bank.

6. For purposes of this section, ownership interests in oil,

gas and other subsurface mineral rights other than mere leasehold

interests shall be considered real estate. However, notwithstanding

the holding limitation of this section or any other provision

contained herein, any bank or trust company which on October 15,

1982, held, directly or indirectly, any oil, gas and other

subsurface mineral rights, other than mere leasehold interests, that

since December 31, 1979, had not been valued on the books of such

bank or trust company for more than a nominal amount, may continue

to hold such subsurface rights or interest without limitation.

F. Any bank or trust company organized under the laws of this

state may invest its funds in the stocks, bonds, debentures or other

such obligations of any corporation holding the premises of such

bank or trust company, and may make loans to or upon the security of

any such corporation, but the aggregate of all such investments and

loans together with the investments provided for in subsection A of

this section shall not exceed its capital. This limitation may be

exceeded upon the written approval of the Commissioner.

G. Every conveyance of real estate and every lease thereof made

by a bank or trust company shall have the name of such bank or trust

company subscribed thereto, either by an attorney-in-fact,

president, vice-president, chairperson or vice-chairperson of the

board of directors of such corporation.

H. Nothing in this section shall preclude or limit in any

manner investments by a bank permitted under any other section of

this Code.