La. Admin. Code tit. 10 § I-1101

Current through Register Vol. 50, No. 12, December 20, 2024

Section I-1101 - Holding of Property for Premises Purposes

A. Definitions

New Institution -any bank, savings bank, savings and loan association, or credit union that has been chartered by this office for less than three years.

Premises and Fixed Assets -the net book value of all land, buildings, leasehold improvements, and furniture, fixtures, and equipment used by the institution to conduct its business or held for future expansion. Additionally, this amount shall include any assets related to a capital lease and shall not include other real estate owned.

Tier 1 Capital -as defined in Part 325 of the Federal Deposit Insurance Corporation's Rules and Regulations for banks and savings banks and Part 567 of the Office of Thrift Supervision's Rules and Regulations for savings and loan associations.

Net Worth -as defined in Section 702. 2(f) of the National Credit Union Administration's rules and regulations for credit unions.

B. Limitation

1. Without the prior approval of the commissioner, no bank, savings bank, or savings and loan association shall invest more than 50 percent of its Tier 1 capital plus the allowance for loan and lease losses in premises and fixed assets, and no credit union shall invest more than 50 percent of its net worth plus the allowance for loan and lease losses. For new institutions, the limitation shall be 45 percent.

La. Admin. Code tit. 10, § I-1101

Promulgated by the Office of the Governor, Office of Financial Institutions, LR 30:2480 (November 2004)

AUTHORITY NOTE: Promulgated in accordance with R. S. 6:121(B)(1), 6:646(A)(1)(a) and 6:822(3)(e).