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Interpretations and Actions: February 2003

Vol. 16, No. 2

PLEASE NOTE: Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. The list of CRA Ratings is from the Communications Division. For copies of the CRA evaluations, you may either contact the bank directly, or you may write to the Office of the Comptroller of the Currency (OCC) in any of three ways: by mail to the OCC, Attn: Public Information Room, Mail Stop 1-5, Washington, D.C. 20219; by fax to (202) 874-4448; or by e-mail to You may also write to the OCC for copies of enforcement actions and charters with standard conditions.

Members of the news media are encouraged to cite the letter number when reporting or summarizing documents from this package. This helps us to process single requests based upon your citation in a more timely manner.

Interpretive Letters

Letter No. Topic
951 Letter addresses the application of the various loan combination/attribution rules at 12 CFR 32.5 to loans to several related entities. The letter also address the issue of how to treat the gross income from a subchapter S corporation that is reported as part of the shareholder's adjusted gross income on his or her federal tax return in determining substantial financial interdependence for the purpose of 12 CFR 32.5(c)(2). 01/17/2002
952 Letter explains the relationship between the place specified in the bank's organization statement under 12 USC 22 and the main office of 12 USC 30, establishing that the state of the location of the bank for corporate status purposes under banking laws is the state of the current main office, not the state originally specified in the organization certificate (when different). Letter also offers the OCC opinion that the state of the bank's location for federal diversity jurisdiction under 28 USC 1348 is also based on the current location of the main office, not on the state originally specified in the organization certificate (when different). 10/23/2002
953 National bank has developed expertise in lending and CEBA leasing businesses. The bank may use that expertise to enter into arrangements with unrelated, third-party lessors under which the bank agrees to purchase off-lease equipment from lessors at pre-determined prices. 12/04/2002
954 Letter concludes that an operating subsidiary of a national bank may export interest rates under the same terms and conditions applicable to the parent bank. 12/16/2002
955 Letter concludes that the US Leasing Company exception at 12 CFR 32.3(c)(10) can apply when the proceeds of the loan to the leasing company are not used directly to purchase the assets to be leased but rather are used to reimburse the leasing company for the past purchase of such assets. 01/31/2003
956 Letter details several aspects of bank's arrangement with third party, including (1) bank's authority to take share of borrower's profits as part of interest on loan, 12 CFR 7.1006; (2) authority of bank and borrower to negotiate percentage of profits bank will take; and (3) nature and form of compensation paid by bank to entity for originating loan opportunities is consistent with OCC precedent. 01/31/2003

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

Letter No. Topic
570 Application of Oswego County Savings Bank, Oswego County, Oswego, New York to convert to a national bank with the title of "Oswego County National Bank." (Control Number 2002 NE 01 0006), 01/07/2003
571 Application by Treasury Bank, National Association, Alexandria, Virginia, to increase its capital surplus. (Control Number 2002 NE 12 255), 01/30/2003
572 Proposal to merge Enterprise Federal Savings Bank, Largo, Maryland, with and into First Liberty National Bank, Washington, DC. (Control Number 2002 NE 02 0023), 01/21/2003
573 Application by First North American National Bank, Kennesaw, Georgia to reduce capital and pay a dividend. (Control Number 2002 MW 12 0004), 01/27/2003
574 Application by The First National Bank of Three Rivers, Three Rivers, Michigan to retain a noncontrolling investment made on May 16, 2000 by a wholly owned subsidiary established on August 27, 1999. (Control Number 2002 CE 08 0029), 01/27/2003
575 Application by Morgan Stanley (F//K/A Morgan Stanley Dean Witter & Co.) to charter a national CEBA trust bank with the title of "Morgan Stanley Trust, National Association," Wilmington, Delaware. (Control Number 2002 NE 01 0004), 01/27/2003
576 Change in Bank Control Notice filed by LPL Holdings, Inc., to acquire 100% of PTC Holdings, Inc., which in turn, owns 100% of The Private Trust Company, National Association, Cleveland, Ohio. (Control Number 2002 CE 11 0001), 01/31/2003
577 Application to charter Charles Schwab Bank, National Association, Reno, Nevada. (Control Number 2002 WE 01 0006), 02/04/2003

Final Enforcement Actions

Enclosed is a copy of the OCC's news release number 2003-10, announcing the availability of enforcement actions. Copies of the final actions are available by writing to the OCC, Public Reference Room, Mailstop 1-5, 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 January 15, 2003 through February 14, 2003.

The Office of the Comptroller of the Currency publishes INTERPRETATIONS AND ACTIONS monthly. 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, Mail Stop 3-2, Washington, DC 20219.