12 CFR 24.5 – Public welfare investment after-the-fact notice and prior approval procedures
(a) After-the-fact notice of public welfare investments. (1) Subject to § 24.4(a), an eligible bank may make an investment authorized by 12 U.S.C. § 24 (Eleventh) and this part without prior notification to, or approval by, the OCC if the bank follows the after-the-fact notice procedures described in this section.
Terms Used In 12 CFR 24.5
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
(2) An eligible bank shall provide an after-the-fact notification of an investment, within 10 working days after it makes the investment, to the Community Affairs Department, Office of the Comptroller of the Currency, Washington, DC 20219. The after-the-fact notification may also be e-mailed to CommunityAffairs@occ.treas.gov, faxed to (202) 649-5709, or provided electronically via National BankNet at www.occ.gov.
(3) The bank’s after-the-fact-notice must include:
(i) A description of the bank’s investment;
(ii) The amount of the investment;
(iii) The percentage of the bank’s capital and surplus represented by the investment that is the subject of the notice and by the bank’s aggregate outstanding public welfare investments and commitments, including the investment that is the subject of the notice; and
(iv) A statement certifying that the investment complies with the requirements of §§ 24.3 and 24.4.
(4) A bank may satisfy the notice requirements of paragraph (3) of this section by completing form CD-1, attached as appendix 1 to this part.
(5) A national bank that is not an eligible bank but that is at least adequately capitalized, and has a composite rating of at least 3 with improving trends under the Uniform Financial Institutions Rating System, may submit a letter to the Community Affairs Department requesting authority to submit after-the-fact notices of its investments. The Community Affairs Department considers these requests on a case-by-case basis.
(6) Notwithstanding the provisions of this section, a bank may not submit an after-the-fact notice of an investment if:
(i) The investment involves properties carried on the bank’s books as “other real estate owned”; or
(ii) The OCC determines, in published guidance, that the investment is inappropriate for after-the-fact notice.
(b) Investments requiring prior approval. (1) If a national bank does not meet the requirements for after-the-fact investment notification set forth in this part, the bank must submit an investment proposal to the Community Affairs Department, Office of the Comptroller of the Currency, Washington, DC 20219. The investment proposal may also be e-mailed to CommunityAffairs@occ.treas.gov, faxed to (202) 874-4652, or submitted electronically via National BankNet at www.occ.gov. The bank may use form CD-1, attached to this part as appendix 1, to satisfy this requirement.
(2) The bank’s investment proposal must include:
(i) A description of the bank’s investment;
(ii) The amount of the investment;
(iii) The percentage of the bank’s capital and surplus represented by the proposed investment and by the bank’s aggregate outstanding public welfare investments and commitments, including the proposed investment; and
(iv) A statement certifying that the investment complies with the requirements of §§ 24.3 and 24.4.
(3) In reviewing a proposal, the OCC considers the following factors and other available information:
(i) Whether the investment satisfies the requirements of §§ 24.3 and 24.4;
(ii) Whether the investment is consistent with the safe and sound operation of the bank; and
(iii) Whether the investment is consistent with the requirements of this part and the OCC’s policies.
(4) Unless otherwise notified in writing by the OCC, and subject to § 24.4(a), the proposed investment is deemed approved after 30 calendar days from the date on which the OCC receives the bank’s investment proposal.
(5) The OCC, by notifying the bank, may extend its period for reviewing the investment proposal. If so notified, the bank may make the investment only with the OCC’s written approval.
(6) The OCC may impose one or more conditions in connection with its approval of an investment under this part. All approvals are subject to the condition that a national bank must conduct the approved activity in a manner consistent with any published guidance issued by the OCC regarding the activity.