FOR IMMEDIATE RELEASE
December 17, 2003
Contact: Kevin Mukri
OCC Issues Final Rule Allowing National Banks to Make Organizational Changes More Efficiently
WASHINGTON — The Office of the Comptroller of the Currency today published a final rule implementing sections of the American Homeownership and Economic Opportunity Act of 2000 (AHEOA) that will enable national banks to make some organizational changes more efficiently.
The new rule implements provisions of AHEOA that:
Allow a national bank to reorganize directly to become a subsidiary of a holding company; Increase the maximum term of service for national bank directors, permit a national bank to adopt bylaws allowing for staggered terms for directors in accordance with OCC regulations, and permit national banks to apply for permission to have more than 25 directors; and Permit national banks to merge with one or more of their nonbank affiliates, subject to OCC approval.
The final rule also revises several provisions of the corporate procedures and the bank activities regulations to make clarifying changes or updates based on recent developments in the law. It amends the fiduciary activities rules to modify the required timing of valuation for certain collective investment funds. Finally, it revises a provision of the real estate lending rules, which address the OCC's authority with respect to real estate lending for national banks, to conform with a change that was made to the underlying statute.
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