OCC 2001-34
OCC Bulletin

Subject:     Investment Securities; Bank Activities
             and Operations; Leasing
Description: Final Rule

Date: July 13, 2001

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

The attached final rule, which affects provisions of
the Office of the Comptroller of the Currency's (OCC's)
rules governing investment securities, bank activities
and operations, and leasing, was published in the
Federal Register on July 2, 2001.  The effective date
is August 1, 2001.
 
The final rule amends parts 1, 7, and 23 to address
changing industry practices and recent statutory
amendments.  The amendment to part 1 brings the OCC's
investment securities rule into conformity with a
statutory change made by the Gramm-Leach-Bliley Act
that authorizes national banks that are well
capitalized to underwrite, deal in, and purchase
certain state and municipal bonds without quantitative
restrictions.  

The final rule makes five changes to part 7.  First,
it adds a new rule that defines the circumstances under
which a school where a bank participates in a financial
literacy program is not considered a branch of the bank
under the McFadden Act.  Second, the final rule amends
the current rule on bank hours and closings to bring it
into conformity with the Comptroller's statutory
authority to declare mandatory bank closings.  Third,
the final rule amends the current rule on charging
interest rates to clarify the term "NSF fees."  Fourth,
the current rule that governs non-interest charges and
fees is amended to clarify the factors affecting a
national bank's ability to charge non-interest charges
and fees and the OCC's review of a bank's fees in light
of a contrary state law.  Finally, a new rule is added
to clarify that state law applies to national bank
operating subsidiaries to the same extent that it
applies to the parent national bank.  

The changes to part 23 update the OCC's leasing rule
to provide additional flexibility in the residual value
limits in the rule.


For questions concerning 12 CFR 1.2, contact Beth
Kirby, special counsel, Securities and Corporate
Practices Division, (202) 874-5210.  For questions
concerning part 7, contact Michele Meyer, counsel,
Legislative and Regulatory Activities Division,
(202) 874-5090.  For questions concerning 12 CFR 23.21,
contact Steven Key, senior attorney, Bank Activities
and Structure Division, (202) 874-5300.

						
Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel



Attachments: 
*  66 FR 36834
   [http://www.occ.treas.gov/fr/fedregister/66fr36834.pdf]
*  66 FR 34784
   [http://www.occ.treas.gov/fr/fedregister/66fr34784.pdf]