(a)Any such company shall have the power
to purchase, hold and convey real estate for the following purposes and
for no others:
(1)Such as shall be necessary for the convenient transaction of its
business, but the cost or value of such real estate as carried on its
books shall not exceed fifty percent (50%) of the amount of its
capital and surplus, without the written consent of the department.
(2)Such as shall be conveyed to it in satisfaction of debts or
obligations previously contracted in the course of its dealings, or
in exchange for real estate so conveyed to it.
(3)Such as it shall purchase at sales under judgments or decrees
of foreclosure on mortgages held by such company or shall
acquire as additional security for obligations due such company.
(4)Such as shall have been sold
Free access — add to your briefcase to read the full text and ask questions with AI
(a) Any such company shall have the power
to purchase, hold and convey real estate for the following purposes and
for no others:
(1) Such as shall be necessary for the convenient transaction of its
business, but the cost or value of such real estate as carried on its
books shall not exceed fifty percent (50%) of the amount of its
capital and surplus, without the written consent of the department.
(2) Such as shall be conveyed to it in satisfaction of debts or
obligations previously contracted in the course of its dealings, or
in exchange for real estate so conveyed to it.
(3) Such as it shall purchase at sales under judgments or decrees
of foreclosure on mortgages held by such company or shall
acquire as additional security for obligations due such company.
(4) Such as shall have been sold under a title-retaining,
installment, real estate sales contract, the term of which does not
exceed twelve (12) years, where such contract is either purchased
by it or taken as collateral security for a loan. However, the total
cost of all real estate sold on title-retaining installment sales
contracts as carried on the books of the company shall not at any
one (1) time exceed five percent (5%) of the total resources of the
company when such real estate title-retaining installment sales
contracts were acquired without the written approval of the
department.
(b) No such company shall hold the title or possession of any real
estate purchased or otherwise acquired to secure any debts or
obligations due to it, for a longer period than ten (10) years after such
real estate is or has been purchased or otherwise acquired without the
consent in writing of the department. However, any such company may
sell any real estate so purchased or otherwise acquired by it under a
title-retaining installment real estate sales contract, the term of which
shall not exceed twelve (12) years, and hold title or possession thereof
until the same is conveyed to the purchaser thereof under the terms and
provisions of any such contract.
(c) For the purposes of subsection (a)(1), real estate purchased or
held for the convenient transaction of the business of a company
includes the following:
(1) Real estate on which the principal office or a branch office of
the company is located.
(2) Real estate that is the location of facilities supporting the
operations of the company, such as parking facilities, data
processing centers, loan production offices, automated teller
machines, night depositories, facilities necessary for the
operations of a company subsidiary, or other facilities that are
approved by the director.
(3) Real estate that the board of directors of the company expects,
in good faith, to use as a company office or facility in the future.
(d) If real estate referred to in subsection (c)(3) is held by a
company for one (1) year without being used as a company office or
facility, the board of directors of the company shall state, by resolution,
definite plans for the use of the real estate. A resolution adopted under
this subsection shall be made available for inspection by the
department.
(e) Real estate referred to in subsection (c)(3) may not be held by a
company for more than three (3) years without being used as a
company office or facility unless:
(1) the board of directors of the company, by resolution:
(A) reaffirms annually that the company expects to use the real
estate as a company office or facility in the future; and
(B) explains the reason why the real estate has not yet been
used as a company office or facility; and
(2) the director determines that:
(A) the continued holding of the real estate by the company
does not endanger the safety and soundness of the company;
and
(B) the company is holding the real estate to use the real estate
in the future for one (1) of the purposes set forth in subsection
(c)(1) or (c)(2).
(f) Real estate referred to in subsection (c)(3) may not be held by a
company for more than ten (10) years without being used as a company
office or facility unless the department consents in writing to the
continued holding of the real estate by the company.
(g) If a company closes a principal or branch office or a facility on,
or discontinues operations on, real estate described in subsection (c)(1)
or (c)(2), the company shall divest itself of the real estate not later than
five (5) years from the date of the closing or discontinuation.
Formerly: Acts 1935, c.181, s.11; Acts 1947, c.135, s.2; Acts
1955, c.20, s.5; Acts 1972, P.L.198, SEC.1. As amended by
P.L.14-1992, SEC.112; P.L.213-2007, SEC.60; P.L.217-2007, SEC.58;
P.L.73-2016, SEC.23.