The attached final rule, which amends 12 CFR 24, the Comptroller of the Currency's rules governing public welfare investments by national banks, was published in the Federal Register on August 15, 2003.

The final rule amends part 24 to:

• Update the definition section of the regulation to reflect the additional types of public welfare investment structures that have become more common in recent years and that are permissible under the governing statute;
• Add a new option to the public welfare standard by permitting an investment that would receive consideration under CRA as a qualified investment;
• Remove the nonbank community involvement requirement from the public welfare standard;
• Simplify the standards for making public welfare investments;
• Clarify how a national bank calculates the value of its public welfare investments for purposes of complying with the rule's investment limits;
• Simplify the regulation's investment self-certification and prior approval processes; and
• Expand the list of examples of qualifying public welfare investments that satisfy the rule's requirements.

These changes are intended to encourage new and expanded investments by national banks supporting community and economic development efforts by simplifying the regulation and further reducing unnecessary burden associated with part 24 investments.

For questions concerning this final rule, contact Patrick T. Tierney, attorney, or Michele Meyer, counsel, Legislative and Regulatory Activities Division at (202) 874-5090; or Barry Wides, director, or Karen Bellesi, investments manager, Community Development Division at (202) 874-4930.

Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel

Related Links

• 68 FR 48771