Related Organizations

Investment Limits

A bank’s aggregate outstanding investments and commitments under 12 CFR 24 may not exceed 5 percent of its capital and surplus, unless the bank is at least adequately capitalized and the OCC determines, by its written approval of the bank’s proposed investment, that a higher amount will pose no significant risk to the deposit insurance fund. In no case may a bank’s aggregate outstanding investments and commitments under 12 CFR 24 exceed 10 percent of its capital and surplus.

When calculating the aggregate amount of its outstanding investments under this regulation, a national bank should follow GAAP, unless the OCC, in writing, directs or permits otherwise for prudential or safety and soundness reasons.

A bank may not make an investment under 12 CFR 24 that would expose the bank to unlimited liability.

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