Skip to content
BOL Conferences Top Gun 23
Thread Options
#1982201 - 12/10/14 06:10 PM NAICS code-Land rented to Car Dealership
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Wondering if any NAICS expert could point me in the right direction. We have an entity (entity 1-operating company)that is a car dealership. We have a separate entity (diffent company with different EIN #s)(entity 2-real estate holding company) that is affiliated with entity 1 (same owner) that owns the land that the car dealership is on and leases it to entity 1. My thoughts that Entity 1 (car dealership should have a NAICS of 4411 and Entity 2 (land owner) should be 5311.

Is this accurate? Or should entity 2 also have an NAICS code of 4411 due to wanting the real estate holding company to have the same NAICS code as the operating company?
_________________________
Go Packers

Return to Top
BSA/AML/CIP/OFAC Forum
#1982209 - 12/10/14 06:39 PM Re: NAICS code-Land rented to Car Dealership Bec
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
Affiliates or not, they are two different companies are they not? They have two different and distinct lines of business. They should be coded accordingly.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1982220 - 12/10/14 07:01 PM Re: NAICS code-Land rented to Car Dealership Bec
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,292
I can tell you that many banks have levels of coding so that for credit concentration purposes they can show that the land leased to the dealership is dependent upon the car dealer industry and should therefore be in that bucket for exposure purposes.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1982247 - 12/10/14 07:29 PM Re: NAICS code-Land rented to Car Dealership Bec
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
rlcarey....that was my thoughts however, Kathleen makes a valid point as well. We are going to keep it as is, don't want to mess with the way the loan side is doing things.

Thank you both for your valuable input.
_________________________
Go Packers

Return to Top

Moderator:  Andy_Z