[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR614.4266]



[Page 121]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

              Subpart F_Collateral Evaluation Requirements

 

Sec. 614.4266  Personal and intangible property evaluations.



    (a) Personal property and intangibles shall be valued on the basis 

of market value in accordance with the institution's evaluation 

standards and policies.

    (b) Personal property evaluations shall include a source of 

comparisons of value (i.e., equipment dealer listings, Blue Book, market 

sales reports, etc.) and a description of the property being evaluated, 

including location of the property and, where applicable, quantity, 

species/variety, measure/weight, value per unit and in total, type of 

identification (such as brand, bill of lading, or warehouse receipt), 

quality, condition, and date.

    (c) Evaluations of intangibles shall include a review and 

description of the documents supporting the property interests and the 

marketability of the intangible property, including applicable terms, 

conditions, and restrictions contained in the document that would affect 

the value of the property.

    (d) Where an evaluation of personal or intangible property is 

completed by a fee appraiser, as defined in Sec. 614.4240(g), the 

institution's standards shall include provisions for periodic collateral 

inspections and verification by the institution's account officer or 

appropriate designee.

    (e) When a Farm Credit System institution deems an appraisal 

necessary, personal or intangible property shall be appraised in 

accordance with procedures and standards established by the institution 

by individuals deemed qualified by the institution to complete the work 

under the USPAP Competency and Ethics Provisions.



[59 FR 46730, Sept. 12, 1994, as amended at 59 FR 50964, Oct. 6, 1994]