Rule 80-1-10-.02 - Purchase of Real Estate for Future Expansion; Letter Notification(1) The purchase of real property for expansion purposes may be made without the prior consent of the Department of Banking and Finance and by only a letter notification when: (a) The real property is to be utilized as bank premises within five years of the date of purchase;(b) The purchase of the real property does not result in the bank exceeding the fixed asset limitation;(c) The bank is not subject to any special requirements whereby the Department requires prior approval for such purchases; and(d) If an insider is involved, a certification is provided stating that all requirements of O.C.G.A. § 7-1-492 and the provisions of the Federal Reserve Board known as Regulation 0 have been met.(2) The letter notification shall state the date of purchase, purchase price, location of the property, and why the bank qualifies for letter notification under the provisions of this rule.(3) Where consent is required, it shall be granted only in those cases where the applicant bank provides reasonable assurance that it plans to utilize the property as bank premises within five (5) years from the date of purchase and indicates the purpose for which the property is being acquired.(4) The ability to hold property for future expansion shall expire five (5) years from the date of purchase unless the property is utilized as bank premises prior to that time. Banks holding property beyond the five year period must divest themselves of the property through sale unless the time limitation is extended by the Department of Banking and Finance.(5) The granting of approval to purchase property for future expansion shall in no way be considered as approving the expansion program.Ga. Comp. R. & Regs. R. 80-1-10-.02
Ga. L. 1974, pp. 733, 789.
Original Rule entitled "Purchase of Real Estate for Future Expansion" was filed on June 9, 1972; effective June 29, 1972.Amended: Filed August 28, 1975; effective September 17, 1975.Amended: Rule retitled "Purchase of Real Estate for Future Expansion; Letter Notification." F. Aug. 26, 1997; eff. Sept. 15, 1997.Amended: F. Jul. 14, 1998; eff. Aug. 3, 1998.