Federal Deposit Insurance Corp. (FDIC)
Market Value
Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and acting in what they consider their own best interests;
(3) A reasonable time is allowed for exposure in the open market;
(4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
(5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale
(Electronic Code of Federal Regulations, Title 12: Banks and Banking, Part 323.3(g)).
Fair Market Value - Installed
Estimated amount, expressed in terms of money that may be reasonably expected for an installed property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell and both fully aware of the relevant facts, including installation, as of a specific date. This amount includes all normal direct and indirect costs, such as installation and other assemblage costs, necessary to make the property fully operational. (FDIC 2010)
Fair Market Rental Value (“FMRV”)
FMRV should be based on a six-month lease term and the interest rate should be based on the Fed Funds Rate on the date of Failed Bank closing. Future value should be based on 90% residual value. (FDIC 2010)
Market Value
Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and acting in what they consider their own best interests;
(3) A reasonable time is allowed for exposure in the open market;
(4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
(5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale
(Electronic Code of Federal Regulations, Title 12: Banks and Banking, Part 323.3(g)).
Fair Market Value - Installed
Estimated amount, expressed in terms of money that may be reasonably expected for an installed property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell and both fully aware of the relevant facts, including installation, as of a specific date. This amount includes all normal direct and indirect costs, such as installation and other assemblage costs, necessary to make the property fully operational. (FDIC 2010)
Fair Market Rental Value (“FMRV”)
FMRV should be based on a six-month lease term and the interest rate should be based on the Fed Funds Rate on the date of Failed Bank closing. Future value should be based on 90% residual value. (FDIC 2010)