OCC: Proposal to Require OCC Approval of Fundamental Change in Asset Composition of a National Bank

ABA Contact: Paul Smith, (202) 663-5331
Published: 69 Federal Register 892; January 7, 2004
Comments Due: March 8, 2004
Disposition: Filed

OCC proposes to amend its regulations to require prior OCC approval for two types of fundamental changes in the composition of a national bank's assets:

(1) A change in composition of all or substantially all of a bank's assets resulting from a sale or other disposition of the bank's assets, or

(2)   an increase in the asset size of a national bank that had previously ''stripped down'' in a transaction described in item (1), regardless of existing or new ownership

In addition, transactions under (2) above will be evaluated under the same standards that the OCC applies to a de novo national bank charter because a ''stripped'' or dormant charter that subsequently increases in asset size fundamentally resembles a new entrant obtaining a new charter.

ABA supported the proposal.


2004 Regulations Chart
Federal Register
Final Rule
Comment Letter