Comptroller of the Currency
Administrator of National Banks

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

On December 11, 2006, the Board of Governors of the Federal Reserve System published amendments to 12 CFR 215 (Regulation O) in the Federal Register removing certain reporting requirements regarding extensions of credit to bank insiders. 71 Federal Register 71472. These amendments implement section 601 of the Financial Services Regulatory Relief Act of 2006, which was signed into law on October 13. The sections of the regulation that have been removed are:

• 12 CFR 215.9, which required executive officers of banks to report to their bank’s board of directors whenever they obtained certain extensions of credit from another bank;
• 12 CFR 215.10, which required banks to file a report on new loans to executive officers with each Report of Condition (call report); and
• All of Subpart B (12 CFR 215.20-215.23), which required reports and disclosures concerning extensions of credit from correspondent banks to a bank’s executive officers or principal shareholders.

Accordingly, effective immediately, it is no longer necessary for national banks to file or obtain these reports.

Additionally, the Federal Financial Institutions Examination Council (FFIEC) is planning to make conforming changes to call report forms and to discontinue FFIEC Form 004 (the report of extensions of credit made to a bank’s insiders by a correspondent bank). The FFIEC will notify financial institutions directly about these changes. These changes are expected to be effective before the next call report is due. The elimination of these reporting requirements does not limit the authority of the appropriate federal banking agencies to take enforcement action against an institution or its insiders for violations of insider lending restrictions.

The amendment to the regulation is attached for your information. If you have any questions about it, please contact the Bank Activities and Structure Division of the Law Department at (202) 874-5300.

/signed/           Julie L. Williams First Senior Deputy Comptroller and Chief Counsel

Attachment: 71FR71472
[http://www.occ.treas.gov/fr/fedregister/71fr71472.pdf]