OCC 99 - 49       
Subject: Community Development Corporations, Commubity
          Development Projects, and Other Public Welfare  Investments
Description: Final Rule
Date:     December 23, 1999                                      


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

The attached final rule amends Part 24, the regulation governing
national bank investments designed primarily to promote the
public welfare.  The regulation was published in the Federal
Register on December 20, 1999.  This rule takes effect on January
19, 2000.

The final rule encourages national banks to use their statutory
public welfare investment authority by streamlining and
simplifying the applicable requirements.  In addition, many of
these changes make the rule more consistent with the requirements
applicable to state-chartered banks.  Specifically, the rule:

     Expands the scope of public welfare investments that
     national banks may self-certify [Note: If a national bank is
     unclear as to whether an investment qualifies for Part 24,
     the bank may consult with the OCC in advance of making the
     investment and utilize the self-certification process, or
     submit an investment proposal for prior approval.];

     Recategorizes the list of investments eligible for self-certification 
     as examples of qualifying public welfare  investments;

     Removes the geographic benefit information requirement in
     self-certification letters and investment proposals; 

     Removes the geographic restrictions for self-certified
     investments so that national banks can use the self-certification 
     process to make eligible public welfare investments in any area; 

     Adds as an additional factor to the regulation's
     nonexclusive list of ways that a national bank may
     demonstrate community support or participation for its
     public welfare investment the receipt of federal low-income
     housing tax credits by the project in which the investment
     is made;

     Eliminates the requirement that a bank demonstrate that it
     is not reasonably practicable to obtain other private market
     financing for the proposed investment in order for it to
     qualify as a public welfare investment;

     Revises the former list of investments eligible for 
     self-certification, which now provides
     examples of permissible public welfare investments, 
     to: (1) provide that projects receiving low-income 
     housing tax credits need not include nonprofit 
     participation, and (2) include investments in
     community development financial institutions, as defined in
     12 U.S.C.  4702(5); 

     Clarifies that if a national bank wants to make loans or
     investments designed to promote the public welfare that are
     authorized under provisions of the banking laws other than
     paragraph 11 of section 24, it may do so without regard to
     the provisions of 12 U.S.C. 24(Eleventh) or Part 24; and

     Makes other clarifying and technical changes to the
     regulation.

For further information, contact Barry Wides, director, Community
Development Division, (202) 874-4930; Michael S. Bylsma,
director, Community and Consumer Law Division, (202) 874-5750; or
Heidi M. Thomas, senior attorney, Legislative and Regulatory
Activities Division, (202) 874-5090.




_____________________________________
Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel




Attachment   64 FR 70986