General. (1) Upon transfer to OREO, a national bank shall substantiate the parcel's market value by obtaining either:
An appraisal in accordance with subpart C of this part; or
An appropriate evaluation when the recorded investment amount is equal to or less than the threshold amount in subpart C of this part.
A national bank shall develop a prudent real estate collateral evaluation policy that allows the bank to monitor the value of each parcel of OREO in a manner consistent with prudent banking practice.
Exception. If a national bank has a valid appraisal or an appropriate evaluation obtained in connection with a real estate loan and in accordance with subpart C of this part, then the bank need not obtain another appraisal or evaluation when it acquires ownership of the property.
Sales of OREO. A national bank need not obtain a new appraisal or evaluation when selling OREO if the sale is consummated based on a valid appraisal or an appropriate evaluation.
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