Showing posts with label Public Welfare Investments. Show all posts
Showing posts with label Public Welfare Investments. Show all posts

Tuesday, August 26, 2008

OCC Interim Final Rule Encourages Public Welfare Investments by National Banks

According to the Comptroller of the Currency,

"WASHINGTON — The Office of the Comptroller of the Currency (OCC) issued a banking bulletin on an interim final rule to implement the changes to national banks’ public welfare investment authority enacted in the Housing and Economic Recovery Act of 2008 (HERA), which the President signed into law on July 30, 2008."

Public welfare investments are investments that promote the public welfare. (Sorry to be circular, but it is what it is.) These are investments that primarily benefit low and moderate income individuals, low and moderate income areas, or other areas targeted for redevelopment. They include debt or equity investments that finance small businesses, provide credit counseling, job training, community development research. We believe the law and resulting regulation timely.

The OCC goes on to state that "This provision in HERA restored national banks’ full authority to make investments designed primarily to promote the public welfare, including in low- and moderate-income communities, communities affected by
foreclosures and targeted for revitalization, designated disaster areas, and underserved rural communities. The OCC recognized the need to implement this provision promptly.

Although there is a 30-day public comment period, the interim final rule became effective on August 11 when it was published in the Federal Register. The comment period closes on September 10, 2008."

See: http://www.occ.treas.gov/fr/fedregister/73fr46532.pdf