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2005 CRA Changes and the Intermediate Small Bank in Review
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Contents

A Look Inside

Is the ISB Exam Right for Your Bank?

FAQ About the ISB Exam

New CRA Help for Rural Communities

Rebuilding Communities After a Disaster

ISB Exam Links

Locating Eligible Distressed or Underserved Areas Links

2005 CRA Regulation Revision

2005 CRA Regulation Revision Q's and A's

CRA Consultations Available

This Just In…OCC’s Districts Report on New Investment Opportunities for Banks

CD Topics of Interest

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Investment Resources for Part 24 Authority

Part 24 Resources on the Web

Common Part 24 Questions

Part 24 Embraces CRA Changes

CD Investment Precedent Letters

Investments in National/Regional Funds

Second Quarter 2006
Part 24 Investments

Regulation and CD-1 Form

Part 24 Embraces Community Reinvestment Act Changes

Please Note: Public Law 109-351 enacted October 13, 2006 affected these provisions. Please see OCC Bulletin 2006-44 for additional information (http://www.occ.gov/static/news-issuances/bulletins/rescinded/bulletin-2006-44.pdf).

The national bank public welfare investment authority (12 CFR 24 or “Part 24”) facilitates making investments not otherwise expressly permitted under the National Bank Act.  The investment authority provided under Part 24 allows banks to commit capital for much-needed community and economic development projects.  These public welfare investments primarily benefit low- and moderate-income (LMI) individuals, LMI areas, or areas targeted by a government entity for redevelopment, or are qualified investments under the Community Reinvestment Act (CRA). Many of these investments serve the dual purpose of helping banks meet their CRA goals.  For over 40 years, national banks have been using the public welfare investment authority to make investments in essential activities, such as creating affordable housing and supporting other residential and commercial real estate development; providing equity for small business start-ups and expansions; and revitalizing or stabilizing government-designated development areas.

In 2003, Part 24 was expanded to include investments that would receive consideration under 12 CFR 25.23 (CRA) as “qualified investments.”  In 2005, CRA was modified to include:

  • Activities to revitalize or stabilize designated disaster areas eligible for CRA consideration.
  • Activities to revitalize or stabilize distressed nonmetropolitan middle-income geographies eligible for CRA consideration.
  • Activities to revitalize or stabilize underserved nonmetropolitan middle-income geographies eligible for CRA consideration.

Investment activities which revitalize or stabilize the above-referenced geographies are now eligible under Part 24.

For further information and clarification on these modifications, visit http://www.occ.gov/topics/community-affairs/resource-directories/public-welfare-investments/common-part-24-questions.html.