§ 23-38-214 - Valuation of real estate owned as an asset.
23-38-214. Valuation of real estate owned as an asset.
(a) In the event any real estate is acquired by any association through foreclosure, by purchase, or otherwise, the value of the real estate shall immediately be determined by the board of directors, which valuation shall in no case exceed the actual cost of the real estate to the association, unless the cost is in excess of the amount of the original mortgage, in which case the value shall be limited to that amount. The valuation, in either case, shall not be increased at any time by the addition of carrying charges.
(b) If real estate is owned by the association and not occupied in whole or in part by the association as its office within two (2) years after acquisition, there shall be annually charged off, as depreciation, a sum equal to not less than ten percent (10%) of the valuation as prescribed in this section.
(c) (1) If, at any time, the Securities Commissioner should have reason to believe that real estate carried on the books of any association is in excess of its reasonable market value, then he is authorized to have an appraisal made of the real estate, at an expense not to exceed five dollars ($5.00) for each appraisal, to be paid by the association, and to fix the amount at which the real estate is being carried on the books of the association to conform to the appraised value.
(2) If the board of directors of the association considers that the appraised value does not reflect the fair market value of the property, it has the right to submit additional information as to the value of each and every piece of property which, in its opinion, has been undervalued, with request for reconsideration and review. Upon reconsideration and review of all the information at hand, the value as fixed by the commissioner shall become final.