After-the-Fact Notice

An eligible bank may make public welfare investments without first notifying or obtaining the approval of the OCC if the bank follows prescribed after-thefact notice procedures. To provide an after-the-fact notice of an investment, an eligible bank must submit a completed form CD-1 within 10 working days after it makes the investment, to Director, Community Development Division, OCC, 250 E Street, SW, Washington, DC 20219. ^[8]

To be eligible for the after-the-fact notice process, a bank:

• Must be well capitalized, as defined in 12 CFR 6.4,

• Must have a composite rating of 1 or 2 under the Uniform Financial Institutions Rating System,

• Must have a CRA rating of "outstanding" or "satisfactory," and

• Must not be subject to a cease and desist order, consent order, formal written agreement, or Prompt Corrective Action directive, or, if subject to any such order, agreement or directive, must be informed in writing by the OCC that the bank may be treated as an "eligible bank" for purposes of 12 CFR 24.

In addition, the bank must certify that its investment is in compliance with the public welfare and investment limit requirements of 12 CFR 24.

A bank may not provide an after-the-fact notice of an investment if:

• The bank’s aggregate outstanding investments and commitments under 12 CFR 24 are greater than or equal to 5 percent of its capital and surplus, unless the OCC previously has determined, by written approval, that a higher amount would pose no significant risk to the deposit insurance fund;

• The investment involves properties carried on the bank’s books as "other real estate owned"; or

• The OCC determines, in published guidance, that the investment is inappropriate for after-the-fact notice.

Investments Requiring Prior OCC Approval

If a bank or its proposed investment does not meet the requirements for after-the-fact notice, the bank shall submit an investment proposal to Director, Community Development. Unless otherwise notified in writing by the OCC, the proposed investment is deemed approved after 30 calendar days.

The OCC may impose one or more conditions on its approval of an investment under 12 CFR 24. All approvals are subject to the condition that a national bank must conduct the approved activity in a manner consistent with the OCC’s published guidance on the activity.