---
kind: "section"
citation: "12 C.F.R. § 23.3"
title: "12"
number: "23.3"
heading: "Lease requirements."
url: "https://uscodex.org/cfr/12/23.3"
---

# §23.3. Lease requirements.

- (a) **General requirements.** A national bank may acquire personal property for the purpose of, or in connection with leasing that property, and may engage in activities incidental thereto, if the lease qualifies as a full-payout lease and a net lease.
- (b) **Exceptions—**
  - (1) **Change in condition.** If, in good faith, a national bank believes that there has been a change in condition that threatens its financial position by increasing its exposure to loss, then the bank may:
    - (i) Take reasonable and appropriate action, including the actions specified in [§ 23.2(f)](/cfr/12/23.2.md?p=f), to salvage or protect the value of the leased property or its interests arising under the lease; and
    - (ii) **Acquire or perfect title to the leased property pursuant to any existing rights.**
  - (2) **Provisions to protect the bank's interests.** A national bank may include any provision in a lease, or make any additional agreement, to protect its financial position or investment in the event of a change in conditions that would increase its exposure to loss.
  - (3) **Arranging for services by a third party.** A national bank may arrange for a third party to provide any of the services enumerated in [§ 23.2(f)](/cfr/12/23.2.md?p=f) to the lessee at the expense of the lessee.

## Notes

### Authority

Authority: 12 U.S.C. 1 et seq., 24(Seventh), 24(Tenth), and 93a.

### Source

Source: 61 FR 66560, Dec. 18, 1996, unless otherwise noted.