Skip navigation
Ensuring a Safe and Sound Federal Banking System for All Americans Site Map | Text Size: S M L


Resources for bankers

Interpretations and Actions: August 2004

Vol. 17, No. 8

Interpretive Letters

Letter No. Topic
997 Banks decision to charge NSF fees arising, in part, from the order of check posting, is a decision pertaining to the establishment of fees pursuant to 12 USC 24 (Seventh) and 12 CFR 7.4002, thus the process followed by the Banks in deciding to use high-to-low order of check posting is consistent with the safety and soundness considerations of 12 CFR 7.4002(b). 04/15/2002
998 Letter confirms that state anti-discrimination laws are not preempted by the OCC's new preemption rule. 03/09/2004
999 Letter addresses concerns about the impact of the OCC's preemption and visitorial powers rules on consumers and reaffirms the OCC's commitment to assuring that predatory lending practices have no place in the national banking system. 03/09/2004
1000 Letter: (1) lists provisions of the Georgia Fair Lending Act (GFLA) that are not preempted by the OCC's August 5, 2003 Preemption and Determination and Order concerning GFLA; (2) explains that questions about the applicability of any state insurance sales laws to national banks are outside the scope of the Determination and Order and the new preemption rule; and (3) discusses the applicability of the Determination and Order and preemption rule to mortgage brokers. 04/02/2004
1001 Letter concludes that certain issuances by a U.S. agency created under the Foreign Assistance Act may qualify as Type I securities. 05/03/2004
1002 Letter further clarifies the applicability to mortgage brokers of the OCC's Preemption and Determination and Order concerning the Georgia Fair Lending Act and the OCC's new preemption rule. 05/13/2004
1003 Letter indicates that the OCC does not expect national banks to file suspicious activity reports simply upon receipt of a national security letter. The letter also indicates that other issues concerning national security letters will be addressed on an interagency basis. 07/21/2004
1004 Letter concludes that under 12 USC 85 and Michigan parity statute, national banks can charge prepayment fees to the same extent as federal savings associations if state banks can, as well. 08/04/2004

Community Development Investment Letters

Letter No. Topic
2000-1 Consolidation of Public Welfare Investments into CDC — National bank may consolidate public welfare investment activities in an existing community development corporation (CDC). The CDC would manage its portfolio so that the majority of its investments qualify as public welfare investments under 12 CFR Part 24. Thus, the CDC would be primarily engaged in making public welfare investments, and the bank's investments in the CDC would be designed primarily to promote the public welfare as required by 12 USC 24 (Eleventh). 02/14/2000
2000-2 Fund to acquire limited partnership interests in Native American affordable housing — National bank may make and investment in a fund created to acquire limited partnership interest in affordable rental properties that are located on, or near Native American reservation in Arizona, Wisconsin, Minnesota, Montana, North Dakota, south Dakota, and Wyoming. The fund's projects qualify for federal low-income housing tax credits and historic rehabilitation tax credits and primarily target low- and moderate-income persons and families. Each project is sponsored by an Indian Tribe, an affiliated Tribal housing Association, Indian Housing Authority, Indian Tribally Designated Housing Entity, Indian Nonprofit Housing Corporation, or similar tribal entity. 04/10/2000
2000-3 Historic tax credit investment — National bank may invest in Historic Tax Credit investment in the Central Vermont Arts Center Limited Partnership. The Partnership will finance the renovation of a vacant historic property located in an economic revitalization area in Barre City, Vermont. The general partner and project sponsor is a nonprofit corporation that will also lease space for artists and operate an art gallery and teaching facility. The facility will support the establishment of small businesses by providing artists and artisans with studio space and an opportunity to market their work. The proposal was consistent with 12 CFR Part 24 because the project was intended to serve as the cornerstone for renewed small business investment and area revitalization, and the property was located in an area that the local government had targeted for revitalization. 10/18/2000

Corporate Decisions

Letter No. Topic
2004-12 Application by The First National Bank, Conway Springs, Kansas to establish an operating subsidiary to manage the Bank's investment portfolio and acquire a non-controlling, 50% interest in an insurance agency. (Control Number 1997 MW 08 0011), 04/03/1997
2004-13 Application by Central National Bank, Junction City, Kansas, to acquire the Beloit, Kansas branch office of Landmark National Bank, Manhattan, Kansas. (Control Number 2004 WE 02 0030), 07/28/2004

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

Letter No. Topic
647 Application to establish a new national bank with the title of Sovereign Bank, National Association, Irving, Texas. (Control Number 2004 SO 01 0002), 07/28/2004

Final Enforcement Actions

Enclosed is a copy of the OCC's news release number 2004-71, 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 July 15 through August 14, 2004.

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 Licensing. The Community Development Investment Letters are from the office of Community Affairs. 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.

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, ATTN: Accounts Receivable, Mail Stop 4-8, 250 E Street, S.W., Washington, DC 20219. Prepayment is requested. Suggestions, comments or questions may be sent to Jacqueline J. England, Comptroller of the Currency, Communications Division, Mail Stop 3-2, Washington, DC 20219.