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Regular Session, 2012
SENATE BILL NO. 120
BY SENATOR MILLS
BANKS/BANKING. Provides relative to qualified appraisals of immovable property
acquired by a bank from a failed or failing bank. (8/1/12)
AN ACT1
To amend and reenact R.S. 6:243(B)(4) and (C), relative to state banks; to provide for assets2
acquired by a bank from a failed or failing bank; to increase the amount property3
must be valued from one hundred thousand to two hundred fifty thousand dollars4
before a qualified appraisal on property is annually required; and to provide for5
related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 6:243(B)(4) and (C) are hereby amended and reenacted to read as8
follows:9
§243. Immovable property; dealings10
* * *11
B. * * *12
(4) A bank which acquires the assets of a failed or failing bank shall be13
allowed ten years from the date it acquires the immovable property of the failed or14
failing bank within which to divest itself of such property. A qualified appraisal shall15
be obtained annually, as provided in Paragraph (2) of this Subsection, for each item16
of property having a value in excess of one hundred two hundred fifty thousand17 SB NO. 120
SLS 12RS-427 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
dollars. A bank shall establish the anniversary date to be the original acquisition date1
of the other immovable property as determined by the failed or failing institution or2
the date the bank acquires the other immovable property of the failed or failing3
institution. Once the anniversary date has been established, that date will remain as4
such for as long as the property is held by the bank.5
* * *6
C. [Repealed by Acts 1999, No. 860, §3.]7
D.(1) C.(1) A state bank may hold immovable property in perpetuity, exempt8
from the divestiture requirements of this Section, if all of the following conditions9
are met:10
(a) The property is not being operated by the financial institution as an11
ongoing business.12
(b) The property has been written down to the value of one dollar on the13
books of the bank.14
(c) The property has been transferred into a subsidiary of the bank.15
(2) Property held in perpetuity subject to Paragraph (1) of this Subsection16
shall also be exempt from the requirement for appraisal contained in Paragraph B(2)17
of this Section.18
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Mills (SB 120)
Present law provides that when a bank acquires assets of a failed or failing bank, the bank
shall be allowed ten years from the date it acquires the immovable property of the failed or
failing bank within which to divest itself of such property.
Present law requires that a qualified appraisal be obtained annually for each item of property
having a value in excess of $100,000.
Proposed law increases the amount property must be valued from $100,000 to $250,000
before a qualified appraisal must be obtained annually of such property.
Effective August 1, 2012.
(Amends R.S. 6:243(B)(4) and (C))