Rule 80-1-10-.05 - Organization of Real Estate Holding Subsidiaries(1) With the prior approval of the Department of Banking and Finance, any bank may invest in all of the outstanding capital stock of a subsidiary corporation organized for the purpose of owning bank premises which might be legally owned by such bank and such investment shall be included as fixed assets in determining whether the bank's total investment in fixed assets is within the limitations prescribed by law.(2) Such real estate holding subsidiaries shall not be permitted to own or otherwise invest its funds in Other Real Estate, furniture and fixtures other than for its own use, securities, or any other assets inconsistent with the purpose for which it was originally organized.(3) Such real estate holding subsidiaries shall be subject to all of the limitations, prohibitions, and requirements with respect to the purchase, ownership, and expansion of bank premises that the bank would be subject to, except the limitation imposed on fixed asset investment, but provided that the Department of Banking and Finance may set such limitations on the total investment in fixed assets, the total authorized borrowings, the total capitalization, and the annual rental charges of the real estate holding subsidiary as it considers necessary to the sound operation of the company.(4) Banks may invest in the stock of such corporations and such investments shall be included in determining the bank's legal limitation on investment in fixed assets.(5) Such real estate holding subsidiaries shall be subject to examination by the Commissioner of Banking and Finance on the same basis as the parent corporation.Ga. Comp. R. & Regs. R. 80-1-10-.05
O.C.G.A. §§ 7-1-61; 7-1-262.
Original Rule entitled "Organization of Real Estate Holding Company Subsidiaries" was filed on June 9, 1972; effective June 29, 1972.Amended: Filed August 28, 1975; effective September 17, 1975.Amended: Rule retitled "Organization of Real Estate Holding Subsidiaries." F. Jul. 12, 1999; eff. Aug. 1, 1999.Amended: F. July 9, 2019; eff. July 29, 2019.