Colorado § 11-105-401 Acquisition of property to satisfy indebtedness

Colorado Statutes

§ 11-105-401 — Acquisition of property to satisfy indebtedness

Colorado·Title 11 Financial·Art. Banking Practices

(1)A state bank may take property of any kind to satisfy, in whole or in part, or to protect indebtedness previously created in good faith by it. Property acquired by a state bank to apply on an indebtedness to a state bank shall be held subject to the following limitations:

(a)Stock shall be sold within six months or such additional period not exceeding eighteen months as the banking board may allow.

(b)Real estate may be used in the banking business, subject to the conditions prescribed by this code for property purchased for such use, or may be rented. Real estate may be put in such condition as will reasonably facilitate its sale. Unless used in the banking business, it shall be sold within fifteen years or such longer period as the banking board may allow.

(c)Other pro

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(1) A state
bank may take property of any kind to satisfy, in whole or in part, or to protect
indebtedness previously created in good faith by it. Property acquired by a state
bank to apply on an indebtedness to a state bank shall be held subject to the
following limitations:

(a) Stock shall be sold within six months or such additional period not
exceeding eighteen months as the banking board may allow.

(b) Real estate may be used in the banking business, subject to the
conditions prescribed by this code for property purchased for such use, or may be
rented. Real estate may be put in such condition as will reasonably facilitate its
sale. Unless used in the banking business, it shall be sold within fifteen years or
such longer period as the banking board may allow.

(c) Other property, the acquisition of which is not otherwise authorized by
this code, shall be sold within two years or such longer period as the banking board
may allow.

(d) The property shall be entered on the books at not more than cost or fair
market value, whichever is less, except as otherwise provided by the banking board.
Each bank maintaining property acquired to satisfy indebtedness will obtain an
initial written appraisal and subsequent appraisals as to fair market value by a
qualified independent appraiser or such other person as the banking board may
approve. The subsequent appraisals shall be obtained pursuant to rules of the state
banking board; except that, for purposes of this subsection (1)(d), an appraisal, as
defined in section 12-10-602 (1), by an appraiser certified or licensed pursuant to
section 12-10-611 shall not be required on properties initially valued pursuant to this
subsection (1)(d) at a value consistent with federal requirements and established
pursuant to rules of the state banking board. If the appraiser or other person
approved by the banking board certifies in writing the appraiser's or other person's
opinion that the fair market value has not declined, this opinion may be substituted
for a subsequent appraisal.

Colorado § 11-105-401 (Acquisition of property to satisfy indebtedness) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 2003: Entire article added with relocations, p. 1124, � 3, effective July 1. L. 2004: (1)(d) amended, p. 323, � 6, effective April 7. L. 2014: (1)(d) amended, (SB 14-117), ch. 385, p. 1917, � 2, effective July 1. L. 2019: (1)(d) amended, (HB 19-1172), ch. 136, p. 1660, � 64, effective October 1. L. 2021: (1)(d) amended, (HB 21-1293), ch. 413, p. 2756, � 1, effective September 7.