Data Dictionary
Item Number 1665
REAL ESTATE ACQUIRED AND HELD FOR INVESTMENTCall confidentiality applies to FFIEC 031/041.
| Series | Start Date | End Date | Confidential? | Reporting Forms |
|---|---|---|---|---|
| RCFD1665 | 1986-06-30 | 1988-12-31 | No | FFIEC 031 |
| RCON1665 | 1986-06-30 | 1988-12-31 | No | Multiple Forms |
| SCR11665 | 1980-02-29 | 1980-06-30 | Yes | |
| SCR21665 | 1980-02-29 | 1980-06-30 | Yes |
Data Description:
Includes the amount of real estate that the bank and its consolidated subsidiaries have acquired and hold for investment purposes that is included in the amount reported in "Other Real Estate Owned (2150)". Includes: (1) real estate Acquisition, Development, or Construction (ADC) arrangements which are accounted for as investments in real estate in accordance with guidance prepared by the American Institute of Certified Public Accountants (AICPA) in notices to practitioners issued in November 1983, November 1984, and February 1986; (2) real estate acquired and held for investment by the bank and its consolidated subsidiaries that has been sold under contract and accounted for under the deposit method of accounting in accordance with FASB Statement No. 66, "Accounting for Sales of Real Estate." Under this method, the seller does not record notes receivable, but continues to report the real estate and any related existing debt on its balance sheet. The deposit method is used when a sale has not been consummated and is commonly used when the initial investment in the property was inadequate and recovery of the carrying value of the property is not reasonably assured. Once these criteria have been met (and the buyer's initial investment is at least 10 percent of the sales value of the real estate sold), the receivable resulting from the sale of the other real estate owned should be reported as a loan in Schedule RC-C and excluded from this item; and (3) receivables resulting from sales of real estate acquired and held for investment by the bank and its consolidated subsidiaries accounted for under the installment, cost recovery, reduced profit, or percentage of completion method of accounting in accordance with FASB Statement No. 66, "Accounting for Sales of Real Estate," when the buyer's initial investment (as defined in FASB Statement No. 66) is less than 10 percent of the sales value of the real estate sold. Once this 10 percent initial investment condition has been met, the receivable should be reported as a loan in Schedule RC-C and excluded from this item.
Excludes: (1) real estate acquired in any manner for debts previously contracted (including, but not limited to, real estate acquired through foreclosure and real estate acquired by deed in lieu of foreclosure), even if the bank has not yet received title to the property; (2) property formerly but no longer used for banking; (3) property originally acquired for future expansion but no longer intended to be used for that purpose; and (4) receivables resulting from sales of real estate acquired for debts previously contracted, property formerly used for banking, and property acquired but no longer intended for future expansion that have been accounted for under the installment, cost recovery, reduced profit, or percentage of completion method of accounting in accordance with FASB Statement No. 66, "Accounting for Sales of Real Estate," when the buyer's initial investment (as defined in FASB Statement No. 66) is less than 10 percent of the sales value of the real estate sold.
NOTE:
This item is reported by state nonmember banks only.