OCC 98-10
Subject: Lending Limits
Description: Final Rule
Date: April 6, 1998

TO:  Chief Executive Officers of all National Banks, Department
     and Division Heads, and all Examining Personnel

On April 1, 1998, the OCC published the attached final rule on
lending limits.  The final rule removes an ambiguity in the
former rule concerning the effective date of a recalculated
lending limit.  Pursuant to the final rule, the "calculation
date" of the lending limit (which in most cases will be the last
day of a quarter) is distinguished from the "effective date"
(which will be the earlier of the date on which a bank submits,
or is required to submit, its call report).  The final rule also
makes a number of technical amendments designed to clarify the
current rule.

The final rule does not adopt the proposed expansion of the
exemption from the definition of "loans and extensions of credit"
to include additional funds advanced to preserve personal
property securing a loan.  As a result of its continued
monitoring of credit quality standards,  the OCC has decided it
would not be appropriate at this time to modify this prudential
safeguard that limits the amount a bank may lend to any one
borrower.

For further information, contact Saumya R. Bhavsar, attorney,
Legislative and Regulatory Activities, at (202) 874-5090, or
Aline J. Henderson, senior attorney, Bank Activities and
Structure, at (202) 874-5300.  


_____________________________________
Julie L. Williams
Chief Counsel

Attachment   63 FR 15744