Bank Settles OCC Charges for Violating Statutory Holding Period for "OREO"
A bank settled OCC charges for violating the statutory holding period for other real estate owned ("OREO").
According to the Comptroller's Handbook:
"OREO is real estate, including capitalized and operating leases, that is
• acquired through any means in full or partial satisfaction of a debt previously contracted.
• a former banking facility including a property that was acquired for future expansion but for which banking use is no longer contemplated."
According to the Consent Order, the OCC determined that the bank's violations were the result of (i) insufficient supervision of the holding period for the OREO assets and (ii) the failure to request extensions to the holding period for OREO assets in a timely manner.
To settle the charges, the bank agreed to pay a $30 million civil money penalty.