# 12 C.F.R. § 1.7 (2026): Securities held in satisfaction of debts previously contracted; holding period; disposal; accounting treatment; non-speculative purpose

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_7

## Section

- **Citation:** 12 C.F.R. § 1.7 (2026)
- **Heading:** Securities held in satisfaction of debts previously contracted; holding period; disposal; accounting treatment; non-speculative purpose
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter I: COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY / Part 1: INVESTMENT SECURITIES / § 1.7: § 1.7   Securities held in satisfaction of debts previously contracted › holding period › disposal › accounting treatment › non-speculative purpose.

## Text

(a)
Securities held in satisfaction of debts previously contracted.
The restrictions and limitations of this part, other than those set forth in paragraphs (b),(c), and (d) of this section, do not apply to securities acquired:
(1) Through foreclosure on collateral;
(2) In good faith by way of compromise of a doubtful claim; or
(3) To avoid loss in connection with a debt previously contracted.
(b)
Holding period.
A national bank holding securities pursuant to paragraph (a) of this section may do so for a period not to exceed five years from the date that ownership of the securities was originally transferred to the bank. The OCC may extend the holding period for up to an additional five years if a bank provides a clearly convincing demonstration as to why an additional holding period is needed.
(c)
Accounting treatment.
A bank shall account for securities held pursuant to paragraph (a) of this section in accordance with Generally Accepted Accounting Principles.
(d)
Non-speculative purpose.
A bank may not hold securities pursuant to paragraph (a) of this section for speculative purposes.

## Nearby sections

- [12 C.F.R. § 1.1 (2026) § 1.1   Authority, purpose, scope, and reservation of authority.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_1.md)
- [12 C.F.R. § 1.2 (2026) § 1.2   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_2.md)
- [12 C.F.R. § 1.3 (2026) § 1.3   Limitations on dealing in, underwriting, and purchase and sale of securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_3.md)
- [12 C.F.R. § 1.4 (2026) § 1.4   Calculation of limits.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_4.md)
- [12 C.F.R. § 1.5 (2026) § 1.5   Safe and sound banking practices; credit information required.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_5.md)
- [12 C.F.R. § 1.6 (2026) § 1.6   Convertible securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_6.md)
- [12 C.F.R. § 1.7 (2026) § 1.7   Securities held in satisfaction of debts previously contracted; holding period; disposal; accounting treatment; non-speculative purpose.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_7.md)
- [12 C.F.R. § 1.8 (2026) § 1.8   Nonconforming investments.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_8.md)
- [12 C.F.R. § 1.100 (2026) § 1.100   Indirect general obligations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_100.md)
- [12 C.F.R. § 1.110 (2026) § 1.110   Taxing powers of a State or political subdivision.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_110.md)
- [12 C.F.R. § 1.120 (2026) § 1.120   Prerefunded or escrowed bonds and obligations secured by Type I securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_120.md)
- [12 C.F.R. § 1.130 (2026) § 1.130   Type II securities; guidelines for obligations issued for university and housing purposes.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_130.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_7. Check the current official text before relying on it. Not legal advice.