Alert August 26, 2008

OCC Issues Interim Final Rule Regarding National Banks’ Authority to Make Broader Range of Public Welfare Investments

The OCC issued a bulletin regarding its interim final rule (the “Interim Rule”) that, pursuant to the Housing and Economic Recovery Act of 2008 (enacted on July 30, 2008), broadened the range of community development investments permissible for national banks.  Specifically, the Interim Rule authorizes a national bank to make a broader range of investments “designed primarily to promote the public welfare, including the welfare of low – and moderate – income communities or families (such as by providing housing, services or jobs).”  The Interim Rule became effective on August 11, 2008, but public comments on the Interim Rule were requested by the OCC and are due by September 10, 2008.