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SUMMARY: This notice of proposed rulemaking makes technical corrections to the notice of proposed rulemaking concerning alternatives to the use of external credit ratings that was published on
FOR FURTHER INFORMATION CONTACT:
FOOTNOTE 1 76 FR 73626 (
The National Bank Act currently permits a national bank that is one of the 100 largest insured banks to control a financial subsidiary, directly or indirectly, or to hold an interest in a financial subsidiary only if the bank has at least one issue of outstanding debt rated in one of the top three investment grade categories by a nationally recognized statistical rating organization (NRSRO). /2/ A national bank that is one of the second 50 largest insured banks may either satisfy this requirement or may satisfy such other criteria as the Secretary of the Treasury and the
FOOTNOTE 2 12 U.S.C. 24a. END FOOTNOTE
Section 939(d) of the Dodd-Frank Act amended the creditworthiness requirement to remove the reference to nationally recognized statistical rating organization (NRSRO) ratings and to make other revisions to the provision. Thus, effective on
The proposed revisions to the OCC's rules at 12 CFR 5.39 in the
A. Paperwork Reduction Act
B. Regulatory Flexibility Act Analysis
Pursuant to section 605(b) of the Regulatory Flexibility Act, /3/ (RFA), the regulatory flexibility analysis otherwise required under section 604 of the RFA is not required if an agency certifies that the rule will not have a significant economic impact on a substantial number of small entities (defined for purposes of the RFA to include banks with assets less than or equal to
FOOTNOTE 3 5 U.S.C. 605(b). END FOOTNOTE
FOOTNOTE 4 All totals are as of
C. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995, Public Law 104-4 (UMRA) requires that an agency prepare a budgetary impact statement before promulgating a rule that includes a Federal mandate that may result in the expenditure by state, local, and tribal governments, in the aggregate, or by the private sector of
The OCC has determined that its proposed rule would not result in expenditures by state, local, and tribal governments, or by the private sector, of
List of Subjects in 12 CFR Part 5
Administrative practice and procedure, National banks, Reporting and recordkeeping requirements, Securities.
Authority and Issuance
For the reasons stated in the preamble, the
PART 5--RULES, POLICIES, AND PROCEDURES FOR CORPORATE ACTIVITIES
2. The authority citation for part 5 continues to read as follows:
Authority: 12 U.S.C. 1 et seq., 93a, 215a-2, 215a-3, 481, and section 5136A of the Revised Statutes (12 U.S.C. 24a).
3. In section 5.39, revise paragraphs (g)(3) through (4) and (j)(2) to read as follows:
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(g) * * *
(3) If the national bank is one of the 100 largest insured banks, determined on the basis of the bank's consolidated total assets at the end of the calendar year, the bank has not fewer than one issue of outstanding debt that meets such standards of creditworthiness or other criteria as the Secretary of the Treasury and the
(4) Paragraph (g)(3) does not apply if the financial subsidiary is engaged solely in activities in an agency capacity.
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(j) * * *
(2) Eligible debt requirement. A national bank that does not continue to meet the qualification requirement set forth in paragraph (g)(3) of this section, applicable where the bank's financial subsidiary is engaged in activities other than solely in an agency capacity, may not directly or through a subsidiary, purchase or acquire any additional equity capital of any such financial subsidiary until the bank meets the requirement in paragraph (g)(3) of this section. For purposes of this paragraph (j)(2), the term "equity capital" includes, in addition to any equity investment, any debt instrument issued by the financial subsidiary if the instrument qualifies as capital of the subsidiary under Federal or state law, regulation, or interpretation applicable to the subsidiary.
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First Senior Deputy Comptroller and Chief Counsel.
Notice of proposed rulemaking; correcting amendment.
CFR Part: "12 CFR Part 5"
RIN Number: "RIN 1557-AD36"
Citation: "76 FR 76905"
Document Number: "Docket ID OCC-2011-0019"
Federal Register Page Number: "76905"
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