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OCC BULLETIN 2002-28
Subject: Prohibition Against Use of Interstate Branches Primarily for Deposit Production
Date: June 17, 2002
To: Chief Executive Officers of All National Banks, Federal Branches and Agencies, Department and Division Heads, and All Examining Personnel
Description: Final Rule
The attached final rule implements changes to Office of the Comptroller of the Currency (OCC) regulations regarding the prohibition against using interstate branches for purposes of "deposit production" found in section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act (Riegle-Neal Act).
The final rule was published in the Federal Register on June 6 and becomes effective October 1.
The final rule amends regulations implementing the deposit production prohibition of the Riegle-Neal Act to conform the regulations to recent statutory changes made by section 106 of the Gramm–Leach–Bliley Act (GLBA). Prior to the adoption of this final rule, these regulations prohibited any bank from establishing or acquiring a branch or branches outside of its home state under the Riegle-Neal Act primarily for the purpose of deposit production. Section 106 of the GLBA expanded the coverage of the deposit production prohibition of the Riegle-Neal Act to include any branch of a bank controlled by an out-of-state bank holding company. The final rule conforms the OCC's regulation to this statutory change and applies the deposit production office rule to any bank or branch of a bank controlled by an out-of-state bank holding company.
For further information, contact Karen Tucker, national bank examiner, Compliance Division at (202) 874-4428; Kathryn Ray, counsel, Community and Consumer Law Division at (202) 874-5750; Patrick T. Tierney, attorney, Legislative and Regulatory Activities Division at (202) 874-5090; or with respect to foreign banks, Martha Clarke, acting assistant director for Legislative and Regulatory Activities Division at (202) 874-5090.
Julie L. Williams