12 CFR § 34.85 - Appraisal requirements.
---
identifier: "/us/cfr/t12/s34.85"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 34.85 - Appraisal requirements."
title_number: 12
title_name: "Banks and Banking"
section_number: "34.85"
section_name: "Appraisal requirements."
chapter_name: "COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY"
part_number: "34"
part_name: "REAL ESTATE LENDING AND APPRAISALS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1 25b, 29, 93a, 371, 1462a, 1463, 1464, 1465, 1701j-3, 1828(o), 3331 5101 5412(b)(2)(B) and 15 U.S.C. 1639h."
cfr_part: "34"
---
# 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.
[61 FR 11301, Mar. 20, 1996, as amended at 84 FR 56375, Oct. 22, 2019]