12 CFR §34.85

1. (a)General.
   1. (1)Upon transfer to OREO, a national bank or Federal savings association shall substantiate the parcel's market value by obtaining either:
      1. (i)An appraisal in accordance with subpart C of this part; or
      2. (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. (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.
2. (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.
3. (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.