AL 99-1
Subject: State CRA Laws
Date: January 26, 1999

TO: Chief Executive Officers and Compliance Officers of all
National Banks, Department and Division Heads, and all Examining
Personnel

PURPOSE

This advisory letter replaces AL 98-17, State CRA Laws, dated
December 8, 1998.  It informs bankers and examiners of current
OCC policy regarding examination of national banks' performance
under state community reinvestment laws, including 
implementation of related provisions of the Riegle-Neal
Interstate Banking and Branching Efficiency Act (Riegle-Neal
Act).

BACKGROUND

The Riegle-Neal Act provides that branches of interstate national
banks that are located in states (host states) other than the
bank's home state are required, among other things, to comply
with the laws of the host state regarding community reinvestment,
except when federal law preempts the application of such state
laws to a national bank. [Note: The same standard applies to interstate
state banks.  12 U.S.C. . 1831a(j)(1997)]. The Riegle-Neal Act also
expressly provides that any applicable state community
reinvestment law, to which a branch of an out of state national
bank is subject, is enforced with respect to national banks by
the OCC.  In addition, national banks may also be subject to
community reinvestment laws of their home states (unless such
laws are preempted).  Pursuant to 12 USC 484 (and relevant case
law), enforcement of any such laws is the responsibility of the
OCC.

POLICY AND PROCEDURE

Several states have passed their own community reinvestment laws.
[Note: Connecticut, Massachusetts, New York, Rhode Island, Washington, 
West Virginia, and the District of Columbia have passed their own 
community reinvestment laws].  Since no issues have been raised with 
the OCC as to whether those laws would be preempted by any federal law,
during our CRA evaluations of national banks, the OCC will
solicit input from local banking commissioners regarding the
banks' record of performance under applicable state community
reinvestment laws.  The OCC will contact local banking
commissioners for the District of Columbia and the states that
have passed their own community reinvestment laws to inform them
that the OCC is scheduled to conduct CRA examinations.  These
contacts will coincide with the quarterly publication of the
schedule of planned CRA examinations as prescribed by 12 CFR
25.45.   

RESPONSIBILITIES

The Community and Consumer Policy Division of the OCC will
contact and gather the responses of local banking commissioners
and distribute them to the appropriate supervisory office. 
Examiners will use this input and other performance context
information, including those gathered from community contacts, to
evaluate the banks' CRA performance.

For additional information, please contact the Community and
Consumer Policy Division at (202) 874-4446.





                                                        
Stephen M. Cross
Deputy Comptroller
Community and Consumer