BB 93-18
BANKING ISSUANCES

Comptroller of the Currency
Administrator of National Banks
Type:  Banking Bulletin
Subject:  Interagency Policy on Small Business Loan Documentation

To:  Chief Executive Officers of all National Banks, Deputy Comptrollers,
     District Administrators, Directors and all Examining Personnel


Attached is a copy of the Interagency Policy Statement on Documentation
for Loans to Small- and Medium-sized Businesses and Farms issued by the
Office of the Comptroller of the Currency, the Federal Deposit Insurance
Corporation, the Board of Governors of the Federal Reserve System, and the
Office of Thrift Supervision.

This policy is intended to eliminate unnecessary documentation on small-
to medium-sized business and farm loans for institutions that are highly
rated and are well- or adequately capitalized. These institutions will be
allowed to identify an "exempt portion" of their small- and medium-sized
business and farm loan portfolios, within certain limits, that will be
evaluated solely on performance and will be exempt from examiner criticism
of documentation.

This policy will become effective immediately. The agencies will monitor
how qualifying institutions implement the provisions of the policy and how
those institutions and the "exempt portion" loans perform. Changes to this
policy statement may be made based on the agencies' experience.

ORIGINATING OFFICE: For guidance on applying this policy, contact the
Office of the Chief National Bank Examiner in Washington, D.C. (202)
874-5170.






Donald G. Coonley Chief National Bank Examiner

Attachment 

Date:  April 2, 1993