48.21 REAL ESTATE; RESTRICTIONS ON HOLDING.
Subdivision 1. Specific restrictions.
A bank may purchase, carry as an asset, and convey
real estate only:
(1) as provided for in section
(2) if acquired through foreclosure of a mortgage given to it in good faith as security for
loans made by or money due to it;
(3) if conveyed to it in satisfaction of debts previously contracted in good faith in the course
of its dealings;
(4) if acquired by sale on execution or judgment of a court in its favor; or
(5) if reasonably necessary to mitigate or avoid loss on a loan or investment theretofore made.
Real estate acquired under clauses (2) to (5) shall be carried as an asset only in accordance
with rules the commissioner prescribes.
Subd. 2. Real estate holdings not bank liabilities.
Real estate owned by a bank as a result
of actions authorized in clauses (2) to (5) of subdivision 1 and subsequently sold to any buyer on a
contract for deed may not be considered creating a liability to a bank for purposes of section
Subd. 3. Real estate holdings not sold; authority to write off.
Notwithstanding any rules
of the commissioner to the contrary, if real estate owned by a bank pursuant to clauses (2) to (5)
of subdivision 1 is not sold or otherwise disposed of within the maximum period established by
rule by the commissioner, the bank may write off any remaining balance at a rate not less than
one-fifth of that balance each subsequent calendar year.
History: (7679) RL s 2995; 1919 c 85 s 1; 1921 c 258 s 1; 1929 c 54 s 1; 1945 c 63 s 1;
1955 c 104 s 2; 1957 c 601 s 12; 1982 c 473 s 12; 1987 c 349 art 1 s 14