Interpretations and Actions: December 2017
Vol. 30, No. 12
|1156 (PDF)||Letter affirms that a private flood insurance policy for which the deductible amount exceeds the insurable value of one or more of the buildings securing the loan does not, as a factual matter, provide coverage for that building in the event of a loss and therefore, would not comply with the statutory and regulatory requirement that, for a mortgage secured by a building in a Special Flood Hazard Area (SFHA), the building must be covered by flood insurance. In addition, the letter concludes that an automatic extension of a credit facility that is agreed upon by the lender and the borrower at the origination of the loan and memorialized in the credit agreement does not constitute a MIRE event that would trigger the federal flood insurance requirements because the automatic loan extension was contemplated in the loan agreement. Lastly, the OCC provided that we would not expect a lender participating in one tranche in a multi-tranche credit facility to be responsible for taking direct steps to ensure compliance with flood insurance requirements in connection with a MIRE event or “cashless roll” that occurs in a tranche in which the lender does not participate. 10/30/2017|
|1157 (PDF)||Letter concludes that, subject to certain conditions, PNC Bank, N.A. may become a Funding Participant in The Clearing House's Real-Time Payment System through written notification to its EIC. 11/12/2017|
|1158 (PDF)||Letter permits Royal Bank of Canada, WFC Branch (the branch), a Federal Branch, to exclude liabilities consisting of repurchase agreements collateralized by U.S. Treasury and U.S. Agency securities from the branch's capital equivalency deposit calculation, subject to certain limitations. 11/21/2017|
|1159 (PDF)||Letter permits Bayerische Landesbank, New York Branch (the branch), a Federal branch, to exclude liabilities consisting of repurchase agreements collateralized by U.S. Treasury and U.S. Agency securities from the branch's capital equivalency deposit calculation, subject to certain limitations. 11/21/2017|
|186 (PDF)||Application to merge Capital Bank Corporation, Raleigh, North Carolina, with and into First Tennessee Bank National Association, Memphis, Tennessee (Control Number: 2017-SO-Combination-298316), 10/16/2017|
|2017-03 (PDF)||Application to convert International City Bank, National Association to a federal savings association with the title International City Bank and retain all it branches; and application to continue to operate various subsidiaries as service corporations following the conversion (Control Numbers: 2017-WE-Conversion-297082, 2017-WE-Waiver-300132, and 2017–WE-Subs&Equities-299614, 299616, & 299617), 10/26/2017|
|1183 (PDF)||Termination of 12 USC 1818 regulatory condition in writing relevant to the application by Nordstrom FSB to sell certain assets to TD Bank, USA, N.A. (2015-WE-5.53-1441840) and receive a material noncash capital contribution from Nordstrom Credit, Inc. (2015-WE-Capital&Dividends 144888). (Control Number: 2017-WE-LicensingOther-299879), 10/04/2017|
|1184 (PDF)||Application by Nordstrom FSB, Scottsdale, Arizona, for a substantial change in assets and capital distribution; and application to relocate its home office (Control Numbers: 2017-WE-5.53-298998, 2017-WE-Capital&Div-299001, & 2017 -WE-Relocation-299004), 10/05/2017|
|1185 (PDF)||Application by Citibank, N.A., Sioux Falls, South Dakota, to issue $7.5 billion in subordinated debt qualifying as Tier 2 capital, pursuant to 12 CFR 5.47 (Control Number: 2017-LB-Capital&Div-299938), 10/23/2017|
|1186 (PDF)||Application by The Bank of East Asia, Limited, Hong Kong SAR, People's Republic of China, to change the status of its Los Angeles Limited Federal Branch to a Federal Branch (Control Number: 2012-NE-FBA-Conversion-135005 (2012-IB-10-0003)), 10/24/2017|
|1187 (PDF)||Application by Merchants Bank of California, NA, Carson, California, to establish an operating subsidiary; and application for the merger of Merchants Bank of California, NA with and into MBOC OpSub, Inc. (Control Numbers: 2017-HQ-Subs&Equities-299667 & 2017-HQ-215a3-299668), 10/27/2017|
|1188 (PDF)||Application for substantial asset change by Merchants Bank of California, NA, Carson, California (Control Number: 2017-HQ-5.53-299443), 09/20/2017|
Community Reinvestment Act (CRA) Performance Evaluations
See OCC News Release 2017-144 announcing all CRA performance evaluations that became public from November 1, 2017 through November 30, 2017. A search of all public CRA evaluations can be done at http://apps.occ.gov/crasearch/default.aspx.
Final Enforcement Actions
PLEASE NOTE: Interpretive Letters and No-Objection Letters reflect the views of the Office of the Comptroller of the Currency's (OCC) legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Licensing Activities. The Community Development Investment Letters are from the office of Community Affairs. The Supervisory Conditions Letters are from the Special Supervision Division. The list of CRA Ratings is from the Communications Division.
You can obtain copies of CRA evaluations or enforcement actions by writing to the Freedom of Information Act Officer, Disclosure Services, Communications Division, OCC, 400 7th Street, SW, Suite 3E-218, Washington, DC 20219. You may also submit a request electronically at the OCC's online FOIA site, https://foia-pal.occ.gov/palMain.aspx. Please provide all identifying information when requesting documents. You may also contact the bank directly for copies of the CRA evaluations.
The OCC publishes INTERPRETATIONS AND ACTIONS monthly. Send suggestions, comments or questions to Jacqueline England, Disclosure Services, Communications Division, OCC, 400 7th Street, SW, Suite 3E-218, Washington, DC 20219.