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Interpretations and Actions: July 1996

Vol. 9, No. 7

PLEASE NOTE: Interpretive Letters and No Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions and Decisions (CRA) are from the office of Bank Organization and Structure. The list of CRA Ratings is from the Communications Division. Copies of documents not available electronically should be requested by e-mail or by postal mail from the Office of the Comptroller of the Currency, Attn: Communications, Washington, D.C. 20219.

Please cite the letter number when reporting or summarizing documents from this package. This helps to process single requests in a more timely manner.

Interpretive Letters

Letter No. Topic
709(Rev) Letter opines that, in its CRA evaluation, an institution that invests in a community development bank may have its investment considered under the regulation's investment test, or it may choose to have a portion of its investment evaluated under the lending test and the remainder evaluated under the investment test (Replaces Interpretive Letter #709 in its entirety). (06/14/96).
726 Letter concerns the application of the Community Reinvestment Act (CRA) regulations to financial institutions' support of microenterprise lending programs. (06/21/96).
727 Letter concerns treatment under the revised CRA regulations of the proposed purchase of "equity equivalent" instruments to be offered by a non-profit community development lender. (06/26/96).
728 Letter concerns the treatment under the revised CRA regulations of the "Direct Deposit Too (DD Too)" program the Financial Management Service (FMS) hopes to develop to expand direct deposit, especially to recipients of federal payments who do not presently have deposit accounts. (06/18/96).
729 Letter discusses how an institution should collect and, if appropriate, report the location of small business and consumer loans, for CRA purposes, when the loans are made to borrowers with addresses consisting of post office box numbers or rural route and box numbers. (06/14/96).
730 Letter concludes that loans proposed by the bank to an unaffiliated distributor of mutual funds would not be subject to interaffiliate lending restrictions contained in 12 U.S.C. 371C. (05/29/96).
731 Letter concludes that it is legally permissible part of the business of banking under 24(Seventh) for a national bank and its operating subsidiary to bid to design, implement and operate a processing center and facilities for electronic toll collection. (07/01/96).
732 National bank may make a 5.5% investment in software company which is engaged in the design, development, marketing and maintenance of a network for electronic funds transfers and electronic data interchange, including transacting electronic commerce and marketing software products for use on its world-wide electronic commerce network. (05/10/96).
733 National bank receiver is subject to the rights of secured creditors and creditors entitled to setoff. U.S. legal principles regarding enforcement of security interests are applicable to a receivership of a federal branch or agency conducted under National Bank Act. Therefore, receiver of an uninsured federal branch or agency does not have the right to interfere with the rights of secured creditors, including application of collateral held in U.S. to obligations of a non-U.S. office of the bank. (06/19/96).

Corporate Decisions

Letter No. Topic
96-33 Application for Star Bank, National Association, Indiana, Richmond, Indiana, to purchase the assets and assume the liabilities of five Connersville, Indiana branch offices of National City Bank of Indiana, Indianapolis, Indiana, under the charter and title of Star Bank, National Association, Indiana. (Control Number 96CE020020), (06/20/96).
96-34 Application of NationsBank of Texas, National Association, Dallas, Texas, to purchase certain of the assets and assume certain of the liabilities of BlueBonnet Savings Bank FSB, Dallas, Texas. (Control Number 96ML020031), (06/24/96).
96-35 Application to merge Bank of America Oregon, Portland, Oregon, with and into Bank of America National Trust and Savings Association, San Francisco, California, under the charter and title of Bank of America National Trust and Savings Association. (Control Number 96ML020027), (06/26/96).
96-36 Application to merge BankAmerica National Trust Company, New York, New York, with and into Bank of America National Trust and Savings Association, San Francisco, California. (Control Number 96ML020026), (07/09/96).
96-37 Applications to charter TCF Bank Minnesota, N.A., Minneapolis, Minnesota, TCF Bank Illinois, N.A., Oak Brook, Illinois, TCF Bank Wisconsin, N.A., Milwaukee, Wisconsin, and Great lakes Bank Michigan, N.A., Ann Arbor, Michigan. (Control Numbers 96MW01005 thru 0008), (07/18/96).

Approvals with Conditions Enforceable under 12 U.S.C. 1818

Letter No. Topic
205 First Financial Bank, F.S.B. to charter a national CEBA credit card bank with the title "First Financial Card Services Bank, National Association," Stevens Point, Wisconsin. (Control Number 96CE010022), 07/02/96.
206 First Citizens Bank, National Association, Michigan City, Indiana, to charter a trust bank subsidiary with the title of Horizon Investment Management, National Association, Michigan City, Indiana. (Control Number 96CE01023), 06/18/96.
207 Notice of intent of Wood County Trust Company, Wisconsin Rapids, Wisconsin to convert to a national trust bank and exercise fiduciary powers with the title of "Wood County Trust Company, National Association." (Control Number 96CE01020), 06/18/96.

Final Enforcement Actions

Enclosed is a copy of the OCC's news release number 96-81, announcing the availability of enforcement actions. Copies of the final actions are available by writing to the Communications Division, OCC, Washington, D.C. 20219. When ordering, specify the appropriate Enforcement Action Number.

Community Reinvestment Act (CRA) Performance Evaluations

Enclosed is a list of CRA performance evaluations that became public during the period of June 15 through July 14.

INTERPRETATIONS AND ACTIONS is published monthly by the Office of the Comptroller of the Currency. Subscriptions are available at a rate of $175 per year by writing to the Comptroller of the Currency, P.O. Box 73150, Chicago, IL 60673-7150. Prepayment is requested.

Suggestions, comments or questions may be sent to Jacqueline J. England, Communications Division, Comptroller of the Currency, Washington, DC 20219.