NR 99-114
FOR IMMEDIATE RELEASE                          
Contact: Janis Smith (202) 874-5770
December 21, 1999                                                               

                                    
                                    
       OCC Adopts Final Changes to Public Welfare 
	Investment Rule
                                    
WASHINGTON, D.C. -- The Office of the Comptroller of 
the Currency (OCC) today announced the adoption of
a final rule amending 12 C.F.R. Part 24, the agency's 
regulation governing national bank investments designed
primarily to promote the public welfare. The new rule, 
which was published in yesterday's Federal Register, 
takes effect on January 19, 2000.

"The changes we've adopted will encourage continued 
national bank investments in community development 
activities because they reduce unnecessary 
regulatory burden to banks, while potentially 
expanding their investment options," said Jeanne 
Engel, the OCC's DeputyComptroller for Community 
Affairs. 

"In addition, these changes make the rule more 
consistent with regulations that apply to state
chartered banks," Engel added.

Part 24 implements 12 U.S.C. 24 (Eleventh), 
which authorizes national banks to make investments 
designed primarily to promote public welfare, 
including the welfare of low- and moderate-income 
communities and families.  Eligible investments 
include investment in community development 
corporations (CDCs), community development (CD) 
projects,investments in national banks with a 
community development focus, and certain investments in
low- and moderate-income housing and small 
businesses located in low- and moderate-income
areas.  The changes adopted by the OCC include:

     Expanding the scope of public welfare investments 
     activities which national banks may self-
     certify;

     Recategorizing the list of investments eligible for 
     self-certification as examples of qualifying
     public welfare investments;

     Removing the geographic benefit information requirement 
     in self-certification letters and
     investment proposals; 
                                 
     Removing the geographic restrictions for self-certified 
     investments so that national banks can
     use the self-certification process to make eligible public 
     welfare investments in any area; 

     Adding the receipt of Federal low-income housing tax 
     credits by the project in which the
     investment is made as an additional item on the 
     regulation's list of ways that a national bank
     may demonstrate community support or participation 
     for its public welfare;

     Eliminating the requirement that a bank demonstrate 
     that it is not reasonably practicable to obtain other 
     private market financing in order to qualify as a 
     public welfare investment;

     Revising the former list of investments eligible for 
     self-certification, which now provides
     examples of permissible public welfare investments, 
     to: (1) provide that projects receiving
     low-income housing tax credits need not include 
     non-profit participation, and (2) include
     investments in community development financial 
     institutions, as defined in 12 U.S.C. 
     4702(5); and,

     Clarifying that if a national bank wants to make 
     loans or investments designed to promote the
     public welfare that are authorized under provisions 
     of the banking laws other than paragraph
     11 of section 24, it may do so without regard to 
     the provisions Part 24.

Between 1965 and the present, national banks and 
their community development partners invested $9.9 
billion in OCC-approved community development projects, 
with almost half of the investments being made since Jan. 1, 1993.


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The OCC charters, regulates and examines approximately 
2,400 national banks and 59 federal branches and agencies
of foreign banks in the United States, accounting for 
59 percent of the nation's banking assets.  Its mission 
is to ensure a safe, sound and competitive national 
banking system that supports the citizens, communities 
and economy of the United States.