Related Organizations

Bank Premises Corporation [12 USC 371d]

A bank may invest in bank premises directly or through a corporation. Equity investments in bank premises corporations are statutory subsidiaries and require no prior approval unless an investment is over the 12 USC 371d limit.

A bank may make an aggregate investment in bank premises up to 150 percent of its capital and surplus without the OCC’s prior approval if its composite CAMELS rating is 1 or 2 and it is well-capitalized as defined in 12 CFR 6 before and after it makes the investment or loan. However, the bank must notify the OCC in writing within 30 days after the investment or loan is made. For other national banks, prior OCC approval is required for investments that exceed the amount of the bank’s capital stock. (See 12 CFR 5.37 and the "Investment in Bank Premises" booklet of the Comptroller’s Licensing Manual .)

Previous: Community and Economic Development Entities [12 USC 24(Eleventh)] Next: Savings Associations [12 USC 1823(k)]