[Federal Register Volume 66, Number 8 (Thursday, January 11, 2001)]
[Notices]
[Pages 2478-2480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-839]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Proposed Extension of Information Collection; Comment Request

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to take this opportunity to comment on a continuing 
information collection, as required by the Paperwork Reduction Act of 
1995. Currently, the OCC is soliciting comment concerning its extension 
of an information collection titled, ``Community Development 
Corporation and Project Investments and Other Public Welfare 
Investments--12 CFR 24.''

DATES: You should submit written comments by March 12, 2001.

ADDRESSES: You should direct all written comments to the Public 
Information Room, Office of the Comptroller of the Currency, Mailstop 
1-5, Attention: 1557-0194, 250 E Street, SW., Washington, DC 20219. In 
addition, you may send comments by facsimile transmission to (202) 874-
4448, or by electronic mail to [email protected]. You can 
inspect and photocopy the comments at that address. You can make an 
appointment to inspect the comments by calling (202) 874-5043.

FOR FURTHER INFORMATION CONTACT: You can request additional information 
from or obtain a copy of the collection from Jessie Dunaway, OCC 
Clearance Officer, or Camille Dixon, (202) 874-5090, Legislative and 
Regulatory Activities Division (1557-0194), Office of the Comptroller 
of the Currency, 250 E Street, SW., Washington, DC 20219.

SUPPLEMENTARY INFORMATION: The OCC is proposing to extend OMB approval 
of the following information collection:
    Title: Community Development Corporation and Project Investments 
and Other Public Welfare Investments--12 CFR 24.
    OMB Number: 1557-0194.
    Description: This submission covers an existing regulation and 
involves no change to the regulation or to the information collections 
embodied in the regulation. This regulation implements 12 U.S.C. 24 
(Eleventh) which authorizes national banks to make investments that are 
designed primarily to promote the public welfare, including the welfare 
of low-and moderate-income families and communities (such as through 
the provision of housing, services, or jobs) consistent with safe and 
sound banking practices. The statute requires the OCC to limit a 
national bank's investment in any one project as well as its aggregate 
investment in such projects. This regulation requires national banks to 
make occasional filings to the OCC regarding investment proposals, 
certain self-certifications, and requests from 3-rated banks to self-
certify.
    The OCC is providing national banks with a form by which they make 
these filings and notify the OCC of investments authorized by 12 U.S.C. 
24 (Eleventh). National banks must use this form either to self-certify 
an investment, pursuant to 12 CFR 24.5(a), or to submit a request for 
prior OCC approval of an investment, pursuant to 12 CFR 24.4(a) and 
24.5(b). The OCC's form simplifies the self-certification and prior 
approval processes by outlining the rule's requirements and allowing 
banks to check off most responses. This streamlining of information 
that national banks must submit to the OCC helps to reduce the time and 
burden attendant to the rule's notification and approval processes. The 
OCC intends that this form will encourage banks to increase or enhance 
their investments under part 24.
    A national bank that is not eligible to self-certify investments 
under 12 CFR 24.2(e), but is at least adequately capitalized and has a 
composite rating of at least 3 with improving trends under the Uniform 
Financial Institutions Rating System, may continue to submit a letter 
to the OCC's Community Development Division

[[Page 2479]]

requesting the authority to self-certify investments, pursuant to 12 
CFR 24.5(a)(4). The bank may also use the OCC's form to request prior 
OCC approval of its investments.
    The information collection requirements in 12 CFR part 24 are 
located as follows:
    Self certification of public welfare investments (12 CFR 24.5(a)): 
To self-certify an investment, an eligible bank shall submit a letter 
of self-certification to the OCC, within 10 days after it makes an 
investment.
    Letters from 3-rated banks requesting to self-certify (12 CFR 
24.5(a)(4)): A national bank that is not an eligible bank but that is 
at least adequately capitalized, and has a composite rating of at least 
3 with improving trends under the Uniform Financial Institutions Rating 
System, may submit a letter to the OCC requesting authority to self-
certify investments.
    Investments requiring prior approval (12 CFR 24.5(b)): If a 
national bank does not meet the requirements for self-certification set 
forth in part 24, the bank must submit a proposal to the OCC requesting 
prior approval for an investment.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Businesses or other for-profits.
    Estimated Number of Respondents: 204.
    Estimated Total Annual Responses: 204.
    Frequency of Response: On occasion.
    Estimated Total Annual Burden: 408 burden hours.
    An agency may not conduct or sponsor, and a respondent is not 
required to respond to an information collection unless the information 
collection displays a currently valid OMB control number.
    Comments submitted in response to this notice will be summarized 
and included in the request for OMB approval. All comments will become 
a matter of public record. Comments are invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information has practical utility;
    (b) The accuracy of the agency's estimate of the burden of the 
collection of information;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: January 5, 2001.
Mark J. Tenhundfeld,
Assistant Director, Legislative & Regulatory Activities Division.

OCC's Form for Processing National Bank Community Development (Part 
24) Investments

    National banks may make investments designed primarily to promote 
the public welfare under the community development investment authority 
in 12 USC 24 (Eleventh) and its implementing regulation, 12 CFR 24 
(Part 24). Part 24 contains the OCC guidelines to determine whether an 
investment is designed primarily to promote the public welfare and 
procedures that apply to these investments. National banks must submit 
the completed Form to self-certify or request prior approval of a 
public welfare investment.
    Please provide the following information about the investing bank.

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Bank name and charter:               Address:
 
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Telephone number:
 
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 Facsimile number:
 
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E-mail address/URL:
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    Please indicate the process that the bank requests.
____Self-certification (12 CFR 24.5(a))  complete sections 1 and 2.
____Prior approval (12 CFR 24.5(b))    complete section 2.

Section 1 `` Self-Certification Only (12 CFR 24.5(a))

    1. Please respond to the following questions to determine 
whether the bank is eligible to self-certify its Part 24 investments 
(12 CFR 24.2 (e)).
    a. Is the bank ``well-capitalized,'' as defined in 12 CFR 
6.4(b)(1)?

____Yes
____No (please answer question 1e.)

    b. Does the bank have a composite rating of 1 or 2 under the 
Uniform Financial Institutions Rating System?

____Yes
____No (please answer question 1e.)

    c. What was the bank's most recent Community Reinvestment Act 
rating?

____Outstanding
____Satisfactory
____Other (please answer question 1e.)

    d. Is the bank under a cease and desist order, consent order, 
formal written agreement, or Prompt Corrective Action directive?

____Yes (please answer question 1e.)
____No

    e. Has the OCC provided written notification that the bank may 
submit Part 24 self-certifications or otherwise be treated as an 
``eligible bank'' for the purposes of Part 24?

____Yes (Please attach a copy of the OCC's written notification.)
____No (This investment cannot be self-certified. Please either: (a) 
send a letter to the OCC to request authorization to self-certify; 
or (b) complete section 2 to request prior OCC approval).

    2.Please respond to the following questions about the bank's 
investment to determine whether the bank may self-certify its Part 
24 investments (12 CFR 24.4(a) and 24.5(a)(5)):
    a. Does the bank's aggregate outstanding investments under Part 
24 exceed 5 percent of its capital and surplus?

____Yes (This investment cannot be self-certified. Please complete 
section 2 to request prior OCC approval.)
____No

    b. Does this investment involve properties carried on the bank's 
books as ``other real estate owned''?

____Yes (This investment cannot be self-certified. Please complete 
section 2 to request prior OCC approval.)
____No

    c. Has the OCC determined, in published guidance, that this 
investment type is inappropriate for self-certification? [For 
information about such investments, please refer to the most recent 
OCC Directory of National Bank Community Development Investments, 
visit the OCC's web page (http://www.OCC.treas.gov), or contact the 
OCC's

[[Page 2480]]

Community Development Division (202) 874-4930). ]

____Yes (This investment cannot be self-certified. Please complete 
section 2 to request prior OCC approval.)
____No

(To continue the self-certification process or to request prior OCC 
approval, please proceed to section 2 of this Form.)

Section 2--All Requests

    1. Please indicate the following about the bank's investment:
    a. The name of the CDC, CD project, or entity into which the 
bank's investment has been or will be made. ________________
    b. The date on which the subject investment was or will be made. 
________________
    c. The type of investment (debt or equity). ________________
    2. Please indicate how the bank's investment is consistent with 
Part 24 requirements for investment limits under 12 CFR 24.5.
    a. Dollar amount of the bank's investment that is the subject of 
this submission: $ ________________
    b. Dollar amount of the bank's aggregate outstanding Part 24 
investments (include this investment): $ ________________
    c. Bank's capital and surplus: $ ________________ (Please 
indicate date ________________.)
    d. Percentage of the bank's capital and surplus represented by 
the aggregate outstanding Part 24 investments and commitments 
(include this investment) ________ %
    e. Does this investment expose the bank to unlimited liability?
____ Yes (This investment cannot be made under Part 24.)
____ No (Please explain in question 4b.)

    3. Please indicate how the bank's investment is consistent with 
Part 24 requirements for public welfare investments under 12 CFR 
24.3(a):
    a. Check at least one of the following that benefits primarily 
from the bank's investment:

____ Low- and moderate-income individuals.
____ Low- and moderate-income areas.
____ Areas targeted for redevelopment by local, state, tribal, or 
federal government (including federal enterprise communities and 
federal empowerment zones).

    b. Please identify at least one of the following activities that 
the bank's investment provides or supports:

____ Affordable housing, community services, or permanent jobs for 
low- and moderate-income individuals.
____ Equity or debt financing for small businesses.
____ Area revitalization or stabilization.
____ Other activities, services, or facilities that primarily 
promote the public welfare.

    4.Please attach a brief description of the bank's investment. 
(See 12 CFR 24.5(a)(2)(iii) and (b)(2)(iii)). Include the following 
information in the description:
    a. The activity or activities of the entity in which the bank 
has or will invest. (See examples of investment activities described 
in 12 CFR 24.6(a)).
    b. Explain how the investment does not expose the bank to 
unlimited liability, such as by describing the structure of the 
investment (e.g., CDC subsidiary, multibank CDC, multi-investor CDC, 
limited partnership, limited liability company, community 
development bank) and by providing any other relevant information.
    c. The total funding for the project from all sources, if known.
    d. The geographic area served by the investment entity.
    e. Any community development partners involved in the project 
(e.g., government or public agencies, nonprofits, other investors), 
if known.
    f. Supplemental information (e.g., prospectus, annual report, 
web address that contains information on the entity in which the 
investment is made), if available.
    5.Please identify the type(s) of nonbank community support for 
or participation in the investment. (See 12 CFR 24.3(b)):

____ Representation on the board of directors by nonbank community 
representatives with expertise relevant to the proposed investment.
____ Establishment of an advisory board for the bank's community 
development activities that includes nonbank community 
representatives with expertise relevant to the proposed investment.
____ Formation of a formal business relationship with a community-
based organization for the proposed investment.
____ Contractual agreements with community partners to provide 
services for the proposed investment.
____Joint ventures with local small businesses in the proposed 
investment.
____Financing for the proposed investment from the public sector or 
community development organizations or the receipt of federal low-
income housing tax credits by the project in which the investment is 
made (directly or through a fund that invests in such projects).
____Other (please describe).

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    6. Contact for additional information:

Name:

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Title:

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Address:

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Telephone number:

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Facsimile number:

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E-mail Address:

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    7. Certification
    The undersigned hereby certifies that the foregoing information 
in this Form is accurate and complete and that this investment 
complies with the requirements of 12 CFR 24.3 and 24.4 and does not 
expose the bank to unlimited liability. It is further certified that 
the undersigned is the bank's authorized representative for Part 24 
investments.

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Name

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Title

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Signature

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Date


[FR Doc. 01-839 Filed 1-10-01; 8:45 am]
BILLING CODE 4810-33-P