AL 97-4
Subject:  Treasury Inflation-Indexed Security

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


The OCC is forwarding the attached advisory from the Department
of the Treasury which  provides guidance about the requirements
under the Government Securities Act of 1986 to banks that buy or
sell Treasury inflation-indexed securities for customers. 
National banks and examiners should note that the section,
Capital Treatment, does not apply to bank transactions, because
banks are subject to the OCC's capital regulation (12 CFR 3) and
exempt from the GSA capital rules discussed in this letter.

If your bank has questions regarding this letter, you may call or
write the Bureau of the Public Debt, Government Securities
Regulations Staff, Washington, DC  20239, (202) 219-3632.  For
information regarding the application of banking rules, you
should contact OCC's Capital Markets Division at (202) 874-5070.  



                                     
Jimmy F. Barton
Chief National Bank Examiner
Date: April 17, 1997

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