Pub. 1 2010 Issue 2

www.wvbankers.org 8 affect any state or local law that provides longer time periods or other protections for tenants. The new federal notice requirements under the Act could significantly change the procedures a bank follows when it assumes a lease in a foreclosure on residential property in the typical situation where the rights of the lessee are subordinate to the bank’s lien. Current requirements for eviction under West Virginia law provide that in order to evict a tenant, a landlord must provide the tenant with advance written notice of eviction. The amount of notice required varies depending on whether there is a written lease. If there is an enforceable writ- ten lease, the landlord is required to provide at least the amount of notice stated in the lease. If, as in the case of most foreclo- sures, there is not an enforceable written lease, West Virginia law currently provides that a landlord must provide prior notice of eviction at least one full rental period in advance. Under the new Act, the bank will not be able to terminate the lease im- mediately but will be required to give the tenant at least ninety days notice and/or honor the lease term. The Act has also resulted in increased regulatory scrutiny. The regulatory agencies have indicated that as a result of the Act they will take the following actions: • The Federal Reserve, as part of its consumer compliance examination, will evaluate an institution’s awareness of the Act, its efforts to comply and its responsiveness to addressing implementation deficiencies. • The OCC has advised national banks to adopt policies and procedures to ensure compliance with the tenant protection provisions of the Act. The OCC will evaluate national bank compliance in the course of its supervisory process. • The FDIC examiners will monitor and enforce compliance with the requirements of the Act in the same manner as other consumer protection laws and regulations. West Virginia banks should review the Act and be sure their lenders and legal counsel acting as trustees are aware of the Act’s prior notice requirements. Banks may also want to adopt internal policies and procedures to ensure compliance with the prior notice requirements of the Act. Q Rights — continued from page 6 Should you require more information, please feel free to contact the authors, Sandra M. Murphy at (304) 347-1131 or via e-mail at smurphy @bowlesrice.com , or Amy J. Tawney at (304) 347-1123 or via e-mail at atawney@bowlesrice.com. Ms. Murphy and Ms. Tawney are partners in Bowles Rice McDavid Graff & Love LLP specializing in banking and commercial law. Bowles Rice McDavid Graff & Love LLP is general counsel to the West Virginia Bankers Association. West Virginia banks should review the Act and be sure their lenders and legal counsel acting as trustees are aware of the Act’s prior notice requirements. Banks may also want to adopt internal policies and procedures to ensure compliance with the Act.