Comptroller of the Currency
Administrator of National Banks

The Office of the Comptroller of the Currency (OCC) published in the Federal Register on August 11, 2008 the attached interim final rule with request for comment. This rule, which became effective upon publication, implements a provision of the Housing and Economic Recovery Act of 2008 (HERA)¹ that expanded national banks’ authority to make public welfare investments pursuant to 12 USC 24(Eleventh) (section 24(Eleventh)). This bulletin modifies the information contained in OCC Bulletin 2006-44.

Prior to HERA, section 24(Eleventh) authorized national banks to “make investments directly or indirectly, each of which promotes the public welfare by benefiting primarily low- and moderate-income communities or families (such as by providing housing, services, or jobs)” (emphasis added).

HERA expanded this grant of authority to provide that national banks may “make investments directly or indirectly, each of which is designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, service, or jobs)” (emphasis added). This change effectively restores the public welfare investment test that was in effect prior to enactment of the Financial Services Regulatory Relief Act of 2006 (FSRRA).²

The interim final rule authorizes a national bank and its subsidiaries to make public welfare investments directly or indirectly if the investments primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a governmental entity for redevelopment, or if the investment would receive consideration under 12 CFR 25.23 (the Community Reinvestment Act regulations) as a “qualified investment.” This standard is substantially similar to the OCC’s regulation that was in effect prior to the regulatory changes made to implement the FSRRA. The comment period for this interim final rule ends September 10, 2008.

Regulatory Filings

A national bank should continue to submit a completed CD–1 form to provide an after-the-fact notice or to request prior approval of a public welfare investment (see 73 FR pages 46,536 through 46,539). The CD–1 form is also available on the OCC’s Web site at: www.occ.gov/cdd/pt24toppage.htm.

For questions concerning the changes made to section 24(Eleventh) and this interim final rule, please contact the Community Affairs Department at (202) 874-5556, the Community and Consumer Law Division at (202) 874-5750, or the Legislative and Regulatory Activities Division at (202) 874-5090.