Common Part 24 Questions
Here is the method for capital and surplus from the decision report. Each series item in the decision report has a matching code. How do the 2008 revisions to the statutory language of 12 U.S.C. This vocabulary, that was enacted in the Economic and Casing Recovery Action, effectively restores the public welfare investment test that was in place prior to enactment of the Financial Services Regulatory Relief Act of 2006 (FSRRA). If a bank or investment company does not control the CEDE where it invests, the CEDE will not be considered a subsidiary for purposes of 12 USC 24 (Eleventh).
What process must a bank or investment company follow if it desires to provide after-the-fact notices to the OCC rather than prior approval requests for future investments greater than 5 percent of capital and surplus? The brand new, simpler procedure allows the lender to produce a written demand to OCC for approval under section 24.4 to surpass the 5 percent limit.
If the OCC provides written approval of the request, the bank or investment company may make investments above the 5 percent limit, providing after-the-fact notice in accordance with section 24.5 (a) if it satisfies certain requirements for after-the-fact notice. How would a bank or investment company demonstrate that an area has been targeted for redevelopment with a authorities entity to meet the 12 CFR 24’s public welfare requirement (section 24.3)?
The OCC considers a legally integrated town, city, state, state, tribal, or federal government governmental agency or entity to be always a governmental entity. Often, a governmental entity or agency designates a neighborhood, district, or other geographic section through a formally adopted redevelopment plan that may include special activities and benefits and funding from public and private sector resources.
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The activities in those areas typically help to attract and retain businesses and residents. Examples of designated redevelopment areas include federal government empowerment areas and rural communities officially, state enterprise areas, or city tax incremental funding (TIF) districts. Investors in those areas may obtain tax bonuses, such as capital gains relief, wage credits for employees who live and work in those areas, and the ability to expense business investments.
Some 12 CFR 24 investments might not involve formal area designations, but nonetheless may be produced within an area targeted for redevelopment with a governmental entity. For example, a local government agency might partner with a national bank, chamber of commerce, and community leaders to build up and operate an industrial park to help attract new smaller businesses and expand employment opportunities for residents.
The municipality may provide, for example, infrastructure improvements to the commercial park and offer tax abatements to the businesses that locate there. Must a bank use the 12 CFR 24 investment authority for making all types of community development investments? Through the use of these other investment regulators where appropriate, a national bank or investment company might be able to preserve its limited public welfare investment expert. How did the 2005 changes to the CRA regulations concerning designated disaster areas expand opportunities for public welfare investments (12 CFR 24)? The 2005 revisions to the CRA rules modified this is of “community development” to make bank or investment company activities to revitalize or stabilize specified disaster areas qualified to receive CRA concern.
Thus, a national bank could make an investment under 12 CFR Part 24 for just about any community development activity that revitalizes or stabilizes a designated disaster area. An activity will be presumed to revitalize or stabilize a specified disaster area if it can help to appeal to new, or maintain existing, businesses or residents and is related to catastrophe recovery. A “designated disaster area” is a significant disaster area designated by the federal government. Investments in recovery-related activities made to revitalize or stabilize a designated disaster area generally must be produced within 36 months after the day of designation.