Rule 80-1-10-.01 - Limitation on Fixed Asset Investment; Excessive Investments(1) Banks may purchase, hold, and convey real estate only such as shall be necessary for the convenient transaction of its business and recreational use of its employees, except that real estate commonly referred to as Other Real Estate and as defined herein may be held for not longer than five (5) years unless the time limitation is extended by the Department of Banking and Finance.(2) The aggregate investment by a bank in real estate, bank premises, and furniture and fixtures, stock in any real estate holding subsidiary, and leasehold as defined herein shall not exceed sixty (60) percent of the bank's statutory capital base; except that a greater sum may be invested with the prior approval of the Department of Banking and Finance.(3) Applications for approval to invest in fixed assets an amount in excess of the limitations set forth in paragraph (2) shall be in letter form and must provide for an orderly plan for restoring the fixed asset investment to the sixty (60) percent limitation within not more than five (5) years through one of the following means: (a) Regular annual depreciation charges consistent with current Federal Income Tax regulations, or(b) Predetermined plans for restructuring the capital accounts to increase the sixty (60) percent legal limitation, or(c) Any combination of the methods set forth in (a) and (b) above. (4) In the event a bank is initially in compliance with the limitations set forth in paragraph (2) but the investment in fixed assets ultimately exceeds the fixed asset investment limitation of sixty (60) percent solely as a result of a decline in the bank's statutory capital base, the Department shall not deem the bank to be in violation of paragraph (2); provided, however, nothing herein shall be construed as permitting a bank to invest additional sums in fixed assets in excess of sixty (60) percent of the bank's statutory capital base without the prior written approval of the Department.Ga. Comp. R. & Regs. R. 80-1-10-.01
Ga. L. 1974, pp. 733, 789.
Original Rule was filed on June 9, 1972; effective June 29, 1972.Amended. Filed August 28, 1975; effective September 17, 1975.Amended: F. Jun. 10, 2014; eff. Jun. 30, 2014.