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FOR IMMEDIATE
RELEASE
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Contact: Kevin
M. Mukri
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February 27, 2007
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(202)-874-5770
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OCC Focuses on the New Markets Tax Credit Program
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WASHINGTON — The Office of the Comptroller
of the Currency (OCC) today released a Community
Developments Insights
report entitled, “New
Markets Tax Credits: Unlocking Investment Potential,” highlighting key features of the New Markets Tax Credit (NMTC) program and major considerations facing bank investors who use the credits to develop and support community and economic development activities.
“The NMTC program has been an important tool for banks in their efforts to promote community revitalization and economic development in low-income neighborhoods,” Comptroller John C. Dugan said. “Banks can invest in these credits in a variety of ways to assist eligible commercial transactions that require flexible credit terms and other features to make them feasible.”
This Insights report
examines the primary risks and regulatory considerations
associated with the use of the NMTCs, and discusses strategies
and approaches that bank investors have implemented to
structure and manage these credits effectively. Bank investors
have used various financing models to create investment
opportunities, generate demonstrable community benefits, and
meet their CRA obligations.
National
banks often make NMTC investments under the “Part 24”
community development investment authority, which encourages
bank equity investments in activities that primarily promote
the public welfare in a safe and sound manner.
This
Community Developments Insights can be found on
the news release page of the OCC Web site by going to http://www.occ.gov and clicking on the news
release button on the left side of the page or by visiting
http://www.occ.gov/cdd/resource.htm for the OCC Community Affairs
publications
page.
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# # #
The Office of the Comptroller of
the Currency was created by Congress to charter national banks, to oversee a
nationwide system of banking institutions, and to assure that national banks
are safe and sound, competitive and profitable, and capable of serving the
banking needs of their customers in the best possible manner.
OCC press releases and other information are available at
http://www.occ.gov. To
receive OCC press releases and issuances by email, subscribe at
http://www.occ.gov/listserv.htm.
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