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Interpretations and Actions: July 2004

Vol. 17, No. 7

Interpretive Letters

Letter No. Topic
994 National banks may acquire and hold non-controlling equity interests in LLC that administers employee benefit plans for (1) its investors, which are primarily financial institutions; and (2) other companies that have no equity interest in the LLC. 06/14/2004
995 Letter confirms certain aspects a bank's fiduciary powers and concludes that the bank has the authority to implement a national fiduciary program. The letter also confirms that pursuant to the OCC's regulations at 12 CFR 9.7(e)(2), any state law, other than a law made applicable by 12 USC 92a, that limits or establishes preconditions on the exercise of the fiduciary powers that are to be exercised as part of the bank's program are not applicable to the bank. 06/22/2004
996 Letter finds that national bank is authorized, pursuant to 12 CFR 5.36, to acquire non-controlling interest in an LLC that generates New Markets Tax Credits. 07/06/2004

Community Development Investment Letters

Letter No. Topic
2001-1 Closed-End Mutual Fund — National bank may purchase an equity interest in a closed-end mutual fund that finances affordable housing primarily for low- and moderate-income individuals. The fund is structured as a Business Development Company under the Investment Company Act of 1940. The fund purchases securities backed by loans to homebuyers with incomes below 80 percent of median income as well as loans to sponsors of multifamily housing units that use federal low-income housing tax credits or financing provided by U.S. Department of Housing and Urban Development (HUD). 04/20/2001
2001-2 Environmental Redevelopment Fund — National bank may purchase member shares in a limited liability company (LLC) that primarily benefits low- and moderate-income areas. The LLC provides financing to private and public sector borrowers for environmental analysis and remediation of properties with environmental contamination issues for reuse to attract new and growing businesses, create jobs, provide affordable housing, and support other community development efforts. 07/18/2001
2001-3 CD investments up to 10% Investment Limit — In connection with a request for prior approval of an affordable housing investment, the OCC approved a national bank's request to self-certify future affordable housing investments that would exceed 5 percent of its capital and surplus, up to a maximum of 10 percent of capital and surplus. The requirements of 12 CFR 24 relating to self-certification and all other requirements of the regulation will apply to the additional investments. 08/01/2001
2001-4 Agricultural Cooperative — Under Part 24, a national bank may purchase common stock in an agricultural cooperative, where the bank's liability was limited to the amount of its equity investment. The cooperative was initiated by a local economic development authority and local farmers and businesses as a way to promote the economic development of the area, and received financial support from both the economic development authority and the federal government. 09/04/2001

CRA Decisions

Letter No. Topic
122 Applications to merge HSBC Bank & Trust Company (Delaware), National Association, Wilmington, Delaware, into a newly established interim national bank with the title, HSBC Bank USA, National Association, New Castle, Delaware, and the subsequent merger of HSBC Bank USA, Buffalo, New York, into HSBC Bank USA, National Association. (Control Numbers 2004 NE 02 0020 & 2004 NE 02 0021), 06/23/2004

Corporate Decisions

Letter No. Topic
2004-11 Application by Laredo National Bank, Laredo, Texas to establish RateStar, Inc., as a second-tier operating subsidiary of Homeowners Loan Corporation, a wholly owned operating subsidiary. (Control Number 2004 SO 08 0004), 06/08/2004

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

Letter No. Topic
640 Application to establish a new national bank with the title of North Texas Bank, National Association, Decatur, Texas. (Control Number 2004 SO 01 0008), 06/07/2004
641 Application by Royal Bank of Canada to convert and upgrade its state agency located at 801 Brickell Avenue, Suite 2100, Miami, Florida to a federal branch and to exercise fiduciary powers. (Control Number 2004 IB 10 0001), 06/10/2004
642 Application on behalf of The Goldman Sachs Trust Company, N.A., New York, New York to acquire The Goldman Sachs Trust Company of Delaware, as a wholly-owned operating subsidiary. (Control Number 2003 NE 08 0029), 06/15/2004
643 Application by PNC Bank, National Association, Pittsburgh, Pennsylvania, for its operating subsidiary to hold special equity interest in connection with investment management activities. (Control Number 2004 NE 08 0007), 06/16/2004
644 Application to establish a new national bank with the title of Red Mountain Bank, National Association, Hoover, Alabama. (Control Number 2003 SO 01 0006), 06/18/2004
645 Application by Southern Colorado National Bank to establish a branch at 7 Spaulding Avenue, Pueblo West, Colorado and request for a material non-cash contribution to capital surplus. (Control Number 2004 WE 05 0049 & 2004 WE 12 0213), 06/22/2004
646 Application by Wells Fargo Bank, N.A., Minneapolis, Minnesota to acquire an operating subsidiary in which a financial services company chartered and operating in the United Kingdom also will have an interest. (Control Number 2004 ML 08 0004), 06/28/2004

Final Enforcement Actions

Enclosed is a copy of the OCC's news release number 2004-58, 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 June 15 through July 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.