Rule 80-1-5-.10 - Real Estate Leasing(1) A bank may become the owner and lessor of real property under certain circumstances described in O.C.G.A. § 7-1-282.(2) A bank that desires to lease real property under the conditions in O.C.G.A. § 7-1-282 must make a letter application to the Department to conduct the activity. Such letter application shall include:(a) A business plan that addresses the accounting, tax and legal implications of this type of leasing and the projected volume and scope of the activity;(b) Documentation of the experience and expertise of management that indicates ability to handle credit risk and administer the leasing program in conformity with accounting, legal and tax requirements;(c) Detailed risk analysis to include the potential impact of the activity on the financial and operating condition of the bank;(d) A copy of any required federal application and approval; and(e) Any other items requested by the Department.(3) The aggregate limit for such leasing for banks shall be 100 percent of the bank's statutory capital base. Any higher amount desired must be approved in advance by the Department.(4) The Department may at any time restrict the volume of business in this type of leasing if in its judgment there are concerns for safety and soundness of the operation.Ga. Comp. R. & Regs. R. 80-1-5-.10
O.C.G.A. §§ 7-1-61, 7-1-282.
Original Rule entitled "Real Estate Leasing" adopted. F. Sept. 1, 2004; eff. Sept. 21, 2004.Amended: F. July 7, 2022; eff. July 27, 2022.