TO: |
Chief Executive Officers and Compliance Officers of All National Banks,
Department and Division Heads, and All Examining Personnel |
The Office of the Comptroller of the Currency (OCC) published in the Federal
Register on April 7, 2009, its final rule, "Community and Economic
Development Entities, Community Development Projects, and Other Public Welfare
Investments." The final rule expands national banks’ authority to make
public welfare investments consistent with recent amendments to 12 USC
24(Eleventh). It 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." The final rule became
effective upon publication.
The final rule implements a provision of the Housing and Economic Recovery Act
of 2008 that restores the public welfare investment test to reflect the
standard that was in effect prior to enactment of the Financial Services
Regulatory Relief Act of 2006. The final rule replaces, but does not change, an
interim final rule published in August 2008 that gave immediate effect to the
change in the statutory standard.
The final rule also makes conforming revisions to the OCC’s CD-1 form (CD-1 –
National Bank Community Development (Part 24) Investments). 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
attached). 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 final
rule, please contact Karen Bellesi, Special Advisor, Community Affairs
Department, at (202) 874-5556; Stephen Van Meter, Assistant Director, Community
and Consumer Law Division, at (202) 874-5750; Patrick T. Tierney, Senior
Attorney, or Rebecca Smith, Attorney, Legislative and Regulatory Activities
Division, at (202) 874-5090.
/signed/
Barry R. Wides
Deputy Comptroller for Community Affairs
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Attachment: |
Final Rule
www.occ.treas.gov/fr/fedregister/74fr15657.pdf
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