AI-assisted research summary: A State trust company generally may not buy real estate for its own account, except in stated cases, and it must later dispose of certain real estate within the required time. The Commissioner can give more time to sell in some circumstances.
(a)A State trust company shall not acquire real estate other than a State trust company facility for its own account except: (1)Securitized interests in real estate and obligations secured by real estate; (2)As necessary to avoid or minimize a loss on an investment previously made in good faith; or (3)As provided by rules, orders, or declaratory rulings of the Commissioner. (b)To the extent reasonably necessary to avoid or minimize loss on real estate acquired as permitted by subsection (a) of this section or under G.S. 53-340, a State trust company may exchange real estate for other real estate or personal property, invest additional funds in or improve such real estate, or acquire additional real estate. (c)Except as provided in subsection (d) of this section, a State trust company shall dispose of any real estate acquired as permitted by subdivision (2) of subsection (a) of this section or under G.S. 53-340: (1)In the case of real estate acquired under subdivision (2) of subsection (a) of this section, on or before the fifth anniversary of: a.The date it was acquired; or b.The date it ceases to be used as a State trust company facility if it began to be so used after its acquisition. (2)In the case of real estate acquired under G.S. 53-340, on or before the third anniversary of the date it ceases to be a State trust company facility as provided by G.S. 53-340. (d)The Commissioner may grant one or more extensions of time for disposing of real estate if the Commissioner determines that: (1)The State trust company has made a good faith effort to dispose of the real estate and has been unable to do so on reasonably advantageous terms; or (2)Disposal of the real estate otherwise would be detrimental to the State trust company. History: History.2001-263, s. 1.