Section 354.20  General Rule

a)         A state bank and its subsidiaries may take actions that are necessary to administer assets obtained in the collection of a debt, provided such actions are in conjunction with ongoing efforts to dispose of the assets by sale or liquidation.

b)         A state bank and its subsidiaries shall adopt a written policy for the disposition of assets obtained in the collection of a debt.

c)         A state bank and its subsidiaries shall document in each loan file any deviation from the written policy for the disposition of assets obtained in the collection of a debt.

d)         When making a request for an extension of the period for which assets may be retained, whether pursuant to Section 5(9) of the Act or otherwise, a state bank or its subsidiary shall furnish the following information to the Commissioner:

1)         the good faith actions the bank has taken to dispose of the assets;

2)         why further retention of the assets is in the best interests of the bank;

3)         the bank's estimate of time frame for ultimate disposition of the assets;

4)         the cost for administering the assets during the interim; and

5)         such other pertinent information as the Commissioner may request.