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Interpretations and Actions: May 2009

Vol. 22, No. 5

Interpretive Letters

Letter No. Topic
1115 Letter concludes that the Corporation, the wholly-owned subsidiary of the Bank, may purchase and hold for its own account shares of certain preferred auction rate securities as investment securities for the purposes of 12 C.F.R. Part 1. The letter's conclusions are subject to certain enforceable conditions under 12 U.S.C. § 1818. The Corporation has agreed to not exercise certain voting rights under the securities. The Corporation and the Bank will enter into an operating with the OCC and an indemnification agreement with the Bank's Holding Company. The Corporation has agreed to hold the securities for a limited period of time, after which the Holding Company will be required to repurchase the securities. The Holding Company has agreed to indemnify the Bank against certain potential losses in connection with these purchases. The Bank must seek prior OCC supervisory non-objection before terminating, modifying, or amending the agreements described in the letter. 04/03/2009
1116 Letter describes the appropriate risk-based capital treatment for three types of exposures of national banks (NBs), which are members of the ICE US Trust, LLC (ICE Trust), a credit-default swap clearinghouse. ICE Trust, which is a member of the Federal Reserve System and subject to supervision by the Federal Reserve Board, serves as a central counterparty for the purpose of clearing certain credit-default swap (CDS) transactions between members, some of which are NBs. As a result of their dealings with ICE Trust, these NBs will have three types of exposures: (1) counterparty credit exposure arising from cleared CDS transactions; (2) exposures from margin posted as collateral for the transactions; and (3) exposure from a required contribution to the clearinghouse guarantee fund. Due to the regulated nature of ICE Trust and other prudential factors, the acc has determined that the risk-based capital treatment provided under the risk-based capital rules does not appropriately reflect the risks of transactions with ICE Trust. Therefore, the acc has determined to use its reservation of authority at 12 CFR § 3A(b) to apply a 20% risk weight to these three types of exposures. The OCC believes that a 20 % risk weight more appropriately reflects the risk associated with these exposures. 05/06/2009

Corporate Decisions

Letter No. Topic
2009-02 Application to charter Deposit Insurance National Bank of Greeley, Greeley, Colorado, under 12 USC 1821(m), to assume the insured deposits of New Frontier Bank, Greeley, Colorado, an insured bank in default, and to perform other activities (Control Number 2009 WO 01 0006), 04/10/2009
2009-03 Application by US Bank, National Association, Cincinnati, Ohio to purchase certain assets and assume certain liabilities of First Bank of Idaho, Ketchum, Idaho (Control Number 2009 CE 02 008), 04/24/2009
2009-04 Application to charter Silverton Bridge Bank, National Association, Atlanta, Georgia, pursuant to 12 USC 1821(n), in connection with the receivership of Silverton Bank, National Association, Atlanta, Georgia (Control Number 2009 ML 01 0004), 05/01/2009

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

Letter No. Topic
896 Application to establish a new national bank with the title of Crown Point National Bank, Bend, Oregon and to establish a branch at 200 SW Market Street, Suite 150, Portland, Oregon (Control Numbers 2008 WE 01 006 & 2008 WE 05 089), 03/04/2009
897 Application to charter Evercore Trust Company, National Association, a national bank limited to the activities of a trust company (Control Number 2008 NE 01 0015), 04/10/2009
898 Application by Corpbanca, Santiago, Chile to establish a Federal Branch with the title of "Corpbanca New York Branch" located at 845 Third Avenue, 5th Floor, New York, New York (Control Number 2007 IB 10 0001), 04/15/2009
899 Application to charter Bank of America North Carolina, National Association, Charlotte, North Carolina, as a wholesale bank (Control Number 2009 ML 01 0001), 04/23/2009
900 Applications by Countrywide Bank, FSB, Centennial, Colorado, to convert to a national bank charter with the title of "Countrywide Bank, National Association," and by Bank of America, National Association, Charlotte, North Carolina, to acquire Countrywide Bank, National Association by merger (Control Numbers 2009 ML 01 0003 & 2009 ML 02 0003), 04/23/2009

Final Enforcement Actions

Enclosed is a copy of the OCC's news release number 2009-51, announcing the availability of enforcement actions. Copies of the final actions are available by writing to the OCC, Communications Division, Mail Stop 2-3, Washington, D.C. 20219. You may also submit your request electronically through the OCC's online FOIA site or fax your request to (202)-874-5274. 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 April 15, 2009 through May 14, 2009.

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 Activities. 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: Communications Division, Mail Stop 2-3, Washington, D.C. 20219; by fax to (202) 874-5274; or electronically at the OCC's online FOIA site. 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 timelier manner.

The Office of the Comptroller of the Currency publishes INTERPRETATIONS AND ACTIONS monthly. Subscriptions are available at a rate of $200 per year by writing to the Comptroller of the Currency, ATTN: Financial Management, Accounts Receivable, Mail Stop FM-2, 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 2-3, Washington, DC 20219.