---
kind: "section"
citation: "12 C.F.R. § 34.85"
title: "12"
number: "34.85"
heading: "Appraisal requirements."
url: "https://uscodex.org/cfr/12/34.85"
---

# §34.85. Appraisal requirements.

- (a) **General.**
  - (1) Upon transfer to OREO, a national bank or Federal savings association shall substantiate the parcel's market value by obtaining either:
    - (i) An appraisal in accordance with subpart C of this part; or
    - (ii) An appropriate evaluation when the recorded investment amount is equal to or less than the threshold amount in subpart C of this part.
  - (2) A national bank or Federal savings association shall develop a prudent real estate collateral evaluation policy that allows the bank or savings association to monitor the value of each parcel of OREO in a manner consistent with prudent banking practice.
- (b) **Exception.** If a national bank or Federal savings association 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 or savings association need not obtain another appraisal or evaluation when it acquires ownership of the property.
- (c) **Sales of OREO.** A national bank or Federal savings association 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.

## Notes

### Amendments

[61 FR 11301, Mar. 20, 1996, as amended at 84 FR 56375, Oct. 22, 2019]

### Source

Source: 61 FR 11301, Mar. 20, 1996, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, 371, 1462a, 1463, 1464, 1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq., 5412(b)(2)(B) and 15 U.S.C. 1639h.

### Amendments

[61 FR 11301, Mar. 20, 1996, as amended at 84 FR 56375, Oct. 22, 2019]