Holding period on OREO should normally be no more than 5 years. Does the clock re-start at acquistion on OREOs acquired through an acquistion?

Depends - are you a State bank??

National--I did pull up OCC and they say: Whenever a national bank or an FSA acquires OREO as the result of a merger with or an acquistion of another institution, the holding period of the newly acquired OREO commences on the date of the merger or acquisition.