§ 29. — Power to hold real property.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC29]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER I--ORGANIZATION AND GENERAL PROVISIONS
Sec. 29. Power to hold real property
A national banking association may purchase, hold, and convey real
estate for the following purposes, and for no others:
First. Such as shall be necessary for its accommodation in the
transaction of its business.
Second. Such as shall be mortgaged to it in good faith by way of
security for debts previously contracted.
Third. Such as shall be conveyed to it in satisfaction of debts
previously contracted in the course of its dealings.
Fourth. Such as it shall purchase at sales under judgments, decrees,
or mortgages held by the association, or shall purchase to secure debts
due to it.
But no such association shall hold the possession of any real estate
under mortgage, or the title and possession of any real estate purchased
to secure any debts due to it, for a longer period than five years
except as otherwise provided in this section.
For real estate in the possession of a national banking association
upon application by the association, the Comptroller of the Currency may
approve the possession of any such real estate by such association for a
period longer than five years, but not to exceed an additional five
years, if (1) the association has made a good faith attempt to dispose
of the real estate within the five-year period, or (2) disposal within
the five-year period would be detrimental to the association. Upon
notification by the association to the Comptroller of the Currency that
such conditions exist that require the expenditure of funds for the
development and improvement of such real estate, and subject to such
conditions and limitations as the Comptroller of the Currency shall
prescribe, the association may expend such funds as are needed to enable
such association to recover its total investment.
Notwithstanding the five-year holding limitation of this section or
any other provision of title 62 of the Revised Statutes, any national
banking association which on October 15, 1982, held, directly or
indirectly, real estate, including any subsurface rights or interests
therein, that since December 31, 1979, had not been valued on the books
of such association for more than a nominal amount, may continue to hold
such real estate, rights, or interests for such longer period of time as
would be permitted a State chartered bank by the law of the State in
which the association is located if the aggregate amount of earnings
from such real estate, rights, or interests is separately disclosed in
the annual financial statements of the association.
(R.S. Sec. 5137; Feb. 25, 1927, ch. 191, Sec. 3, 44 Stat. 1227; Pub. L.
96-221, title VII, Sec. 701(a), Mar. 31, 1980, 94 Stat. 186; Pub. L. 97-
25, title III, Sec. 302, July 27, 1981, 95 Stat. 145; Pub. L. 97-320,
title IV, Sec. 413, Oct. 15, 1982, 96 Stat. 1521.)
References in Text
Title 62 of the Revised Statutes, referred to in last par., was in
the original ``this title'' meaning title LXII of the Revised Statutes,
consisting of R.S. Secs. 5133 to 5244, which are classified to sections
21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53, 55 to 57, 59
to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93, 93a, 94, 141 to 144,
161, 164, 181, 182, 192 to 194, 196, 215c, 481 to 485, 501, 541, 548,
and 582 of this title. See, also, sections 8, 333, 334, 475, 656, 709,
1004, and 1005 of Title 18, Crimes and Criminal Procedure. For complete
classification of R.S. Secs. 5133 to 5244 to the Code, see Tables.
Codification
R.S. Sec. 5137 derived from act June 3, 1864, ch. 106, Sec. 28, 13
Stat. 107, which was the National Bank Act. See section 38 of this
title.
Amendments
1982--Pub. L. 97-320 substituted ``Notwithstanding the five-year
holding limitation of this section or any other provision of title 62 of
the Revised Statutes, any national banking association which on October
15, 1982, held, directly or indirectly, real estate, including any
subsurface rights or interests therein, that since December 31, 1979,
had not been valued on the books of such association for more than a
nominal amount, may continue to hold such real estate, rights, or
interests for such longer period of time as would be permitted a State
chartered bank by the law of the State in which the association is
located if the aggregate amount of earnings from such real estate,
rights, or interests is separately disclosed in the annual financial
statements of the association'' for ``Notwithstanding any other
provision of this section, any national banking association which, on
July 27, 1981, held title to and possession of real estate which was
carried on the association's books at a nominal value on December 31,
1979, may continue to hold such real estate until December 31, 1982, if
the earnings from such real estate are separately disclosed in the
financial statements of the association''.
1981--Pub. L. 97-25 inserted provision that any national banking
association which, on July 27, 1981, held title to and possession of
real estate which was carried on the association's books at a nominal
value on December 31, 1979, may continue to hold such real estate until
December 31, 1982, if the earnings from such real estate are separately
disclosed in the financial statements of the association.
1980--Pub. L. 96-221 inserted provisions relating to authorization
to hold real estate in the possession of a national banking association
upon application by the association.
1927--Par. First. Act Feb. 25, 1927, struck out ``immediate,''
before ``accommodation,'' in par. First.
