Other Real Estate Owned and Technical Amendments

Published date24 April 2019
Citation84 FR 17094
Record Number2019-08128
SectionProposed rules
CourtThe Comptroller Of The Currency Office,Treasury Department
Federal Register, Volume 84 Issue 79 (Wednesday, April 24, 2019)
[Federal Register Volume 84, Number 79 (Wednesday, April 24, 2019)]
                [Proposed Rules]
                [Pages 17094-17102]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-08128]
                =======================================================================
                -----------------------------------------------------------------------
                DEPARTMENT OF TREASURY
                Office of the Comptroller of the Currency
                12 CFR Parts 3, 6, 34, 46, 160, 161, 163, and 167
                [Docket ID OCC-2019-0004]
                RIN 1557-AE50
                Other Real Estate Owned and Technical Amendments
                AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
                ACTION: Notice of proposed rulemaking with request for public comment.
                -----------------------------------------------------------------------
                SUMMARY: The OCC is inviting comment on a proposed rule that would
                clarify and streamline its regulation on other real estate owned (OREO)
                for national banks and update the regulatory framework for OREO
                activities at Federal savings associations. The OCC is also proposing
                to remove outdated capital rules for national banks and Federal savings
                associations, which include provisions related to OREO, and make
                conforming edits to other rules that reference those capital rules.
                DATES: Comments must be received by June 24, 2019.
                ADDRESSES: You may submit comments to the OCC by any of the methods set
                forth below. Commenters are encouraged to submit comments through the
                Federal eRulemaking Portal or email, if possible. Please use the title
                ``Other Real Estate Owned and Technical Amendments'' to facilitate the
                organization and distribution of the comments. You may submit comments
                by any of the following methods:
                 Federal eRulemaking Portal--``Regulations.gov'': Go to
                www.regulations.gov. Enter ``Docket ID OCC-2019-0004'' in the Search
                Box and click ``Search.'' Click on ``Comment Now'' to submit public
                comments.
                 Click on the ``Help'' tab on the Regulations.gov home page
                to get information on using Regulations.gov, including instructions for
                submitting public comments.
                 Email: [email protected].
                 Mail: Chief Counsel's Office, Attention: Comment
                Processing, Office of the Comptroller of the Currency, 400 7th Street
                SW, Suite 3E-218, Washington, DC 20219.
                 Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
                Washington, DC 20219.
                 Instructions: You must include ``OCC'' as the agency name and
                ``Docket ID OCC-2019-0004'' in your comment.
                 In general, the OCC will enter all comments received into the
                docket and publish the comments on the Regulations.gov website without
                change, including any business or personal information that you provide
                such as name and address information, email addresses, or phone
                numbers. Comments received, including attachments and other supporting
                materials, are part of the public record and subject to public
                disclosure. Do not include any information in your comment or
                supporting materials that you consider confidential or inappropriate
                for public disclosure.
                 You may review comments and other related materials that pertain to
                this rulemaking action by any of the following methods:
                 Viewing Comments Electronically: Go to
                www.regulations.gov. Enter ``Docket ID OCC-2019-0004'' in the Search
                box and click ``Search.'' Click on ``Open Docket Folder'' on the right
                side of the screen. Comments and supporting materials can be viewed and
                filtered by clicking on ``View all documents and comments in this
                docket'' and then using the filtering tools on the left side of the
                screen.
                 Click on the ``Help'' tab on the Regulations.gov home page
                to get information on using Regulations.gov. The docket may be viewed
                after the close of the comment period in the same manner as during the
                comment period.
                 Viewing Comments Personally: You may personally inspect
                comments at the OCC, 400 7th Street SW, Washington, DC 20219. For
                security reasons, the OCC requires that visitors make an appointment to
                inspect comments. You may do so by calling (202) 649-6700 or, for
                persons who are deaf or hearing impaired, TTY, (202) 649-5597. Upon
                arrival, visitors will be required to present valid government-issued
                photo identification and submit to security screening in order to
                inspect comments.
                FOR FURTHER INFORMATION CONTACT:
                 For revisions to Part 34, Subpart E (OREO): Charlotte Bahin, Senior
                Advisor for Thrift Supervision, (202) 649-6281; or, J. William Binkley,
                Attorney, Chief Counsel's Office, (202) 649-5500.
                 For all revisions: Kevin Korzeniewski, Counsel, Chief Counsel's
                Office, (202) 649-5490; or for persons who are deaf or hearing
                impaired, TTY, (202) 649-5597.
                SUPPLEMENTARY INFORMATION:
                I. Background
                 The OCC is proposing to update its regulatory framework for other
                real estate owned (OREO) by revising its rules to clarify and
                streamline the regulation for national banks and to apply the
                regulatory framework to OREO activities Federal savings associations
                for the reasons discussed below. The OCC's last significant revision to
                the national bank OREO rules occurred over twenty years ago.\1\ Since
                that time, the OCC has gained additional supervisory experience related
                to OREO, which it can apply to improve the OREO rules. In addition, the
                OCC now supervises Federal savings associations pursuant to the Dodd-
                Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank
                Act).\2\ Federal savings associations, unlike national banks, are not
                subject to statutory provisions governing OREO. However, capital
                regulations and handbooks issued by the Office of Thrift Supervision
                (OTS) generally established requirements and supervisory expectations
                for OREO activities. Following OCC and OTS integration, the OCC
                rescinded or superseded many of those documents, creating ambiguity
                with respect to OREO standards for Federal savings associations. The
                OCC is proposing a framework for Federal savings associations that
                generally is consistent with the OTS framework
                [[Page 17095]]
                described above. This framework is still followed by many savings
                associations and would offer flexibility consistent with provisions in
                the Home Owners' Loan Act (HOLA).
                ---------------------------------------------------------------------------
                 \1\ See 61 FR 11294 (March 20, 1996).
                 \2\ See 12 U.S.C. 5412.
                ---------------------------------------------------------------------------
                 The OCC also is proposing to remove Appendices A and B to 12 CFR
                part 3 (risk-based capital guidelines for national banks) and 12 CFR
                part 167 (capital requirements for FSAs) and make conforming technical
                edits to other parts that reference those provisions. When the OCC
                revised Part 3 it superseded Appendices A and B to part 3 and part 167.
                However, because there was a transition period for part 3, the OCC
                retained those appendices at that time.\3\ Part 167 includes provisions
                relating to treatment of OREO held by Federal savings associations that
                is no longer in effect. The OCC is proposing to remove part 167 and
                related references to avoid any confusion with the OREO treatment
                proposed in this notice. Since Appendices A and B to part 3 include the
                corresponding capital provisions for national banks and are similarly
                outdated, the OCC proposes to rescind those appendices in this proposal
                as well.
                ---------------------------------------------------------------------------
                 \3\ See 78 FR 62018 (October 11, 2013).
                ---------------------------------------------------------------------------
                II. Statutory Authority for OREO
                 Twelve U.S.C. 29 establishes a framework for when a national bank
                may hold real property. A national bank may hold real property for use
                in its business as premises, as mortgaged to it as security for a debt,
                in satisfaction of debts previously contracted (DPC),\4\ or as
                purchased at foreclosure to secure a related debt. The statute limits a
                national bank to a five-year holding period for real property, other
                than real property used as premises. However, the statute allows a
                national bank to seek approval from the Comptroller of the Currency to
                hold real property for up to five additional years. The OCC may approve
                this additional time if the bank has made a good faith attempt to
                dispose of the property within the initial five-year period or if
                disposal within the five-year period would be detrimental to the bank.
                ---------------------------------------------------------------------------
                 \4\ Generally, DPC property is property not mortgaged in
                connection with obtaining a loan, but instead used to satisfy a pre-
                existing loan.
                ---------------------------------------------------------------------------
                 Twelve U.S.C. 1464 establishes requirements for the chartering and
                operation of Federal savings associations, including the power to make
                loans and investments. The authority for a Federal savings association
                to obtain real property in connection with satisfaction of a loan
                previously made, including at foreclosure, is an inherent power
                associated with making a loan secured by a mortgage on real property,
                which is permitted by 12 U.S.C. 1464(c)(1)(B) and (2)(B). In addition,
                12 U.S.C. 1464(c)(4)(B) authorizes Federal savings associations to
                invest in service corporations,\5\ which, by regulation, are permitted
                to engage in additional activities in connection with real property.\6\
                Federal savings associations are not subject to a five-year statutory
                limit on the holding period for real property.
                ---------------------------------------------------------------------------
                 \5\ Under 12 U.S.C. 1464(c)(4)(B), a Federal savings association
                may invest in a service corporation if (i) the service corporation
                is organized in the state where the Federal savings association's
                home office is located; (ii) the corporation's stock is available
                for purchase only by other Federal and state savings associations
                having home offices in such state; and (iii) the Federal savings
                association's aggregate investments in service corporations do not
                exceed three percent (3%) of its assets, with amounts in excess of
                two percent (2%) of assets serving primarily community, inner city,
                and community development purposes. See also 12 CFR 5.59. If the
                service corporation is controlled by a Federal savings association,
                then the service corporation is a subsidiary of the association. See
                12 CFR 5.59(d)(5).
                 \6\ These activities include acquiring real estate for
                development, leasing, or resale, and maintaining and managing real
                estate. See 12 CFR 5.59(f)(5).
                ---------------------------------------------------------------------------
                III. Proposed Regulation for OREO
                A. Definitions (Sec. 34.81)
                 This section would contain definitions used in the OREO regulation.
                This section would continue to use the existing definitions for other
                real estate owned (OREO); market value; and recorded investment amount
                in the revised regulation. The term OREO would continue to mean DPC
                real estate and former banking premises. The term market value would
                continue to mean the value of the property, as determined under the
                appraisal rule in 12 CFR part 34, subpart C. Recorded investment amount
                would continue to mean the recorded loan balance (for loans) or the net
                book value (for former banking premises).
                 In addition, the proposal would continue to use the current
                definition of DPC real estate, but with minor revisions related to
                lease accounting described below. The definition of DPC real estate
                would continue to mean real estate acquired through any means in
                satisfaction of a debt previously contracted, consistent with the
                authorities described earlier in this preamble for national banks and
                Federal savings associations to obtain property in this manner. The
                existing definition of the term includes capitalized and operating
                leases, which are the two types of leases recognized under current
                accounting standards from the lessee's perspective. However, revised
                accounting standards requiring operating leases to be capitalized,
                among other provisions, are scheduled to be implemented in the near
                future.\7\ Therefore, the OCC proposes to revise the terminology in the
                current definition of DPC real estate to refer to leased real estate,
                rather than to refer specifically to capitalized and operating leases.
                The proposed definition would continue to cover all leases, but the
                revision will ensure the regulation will not become outdated after
                implementation of the new accounting standards.
                ---------------------------------------------------------------------------
                 \7\ See FASB ASU 2016-02, ``Leases (Topic 842)'' (February
                2016).
                ---------------------------------------------------------------------------
                 In addition, the proposal would revise the definition of former
                banking premises to include a reference to 12 CFR 7.1000(a)(2), which
                establishes categories of real estate that national banks and Federal
                savings associations are permitted to own for use in their banking
                activities. The revised definition would define former banking premises
                as real estate permitted under section 7.1000(a)(2) that is no longer
                used or contemplated to be used for the purposes permitted by that
                rule. The proposed revision should improve regulatory consistency by
                clarifying that both rules cover the same types of real estate for
                banking activities and eliminate confusion about whether the rules
                refer to different types of properties.
                B. Holding Period (Sec. 34.82)
                 This section would specify how long a national bank or a Federal
                saving association may hold OREO, provide the starting date for that
                holding period, and address additional related provisions affecting the
                holding period.
                 The holding period for national banks under the current rule is the
                period required by 12 U.S.C. 29. The statute and the current rule
                provide for an initial five-year holding period, with up to an
                additional five years if approved by the OCC. The proposal would not
                change this holding period.
                 The proposal also would establish an initial holding period for
                Federal savings associations of five years after commencement of the
                holding period to ensure the safe and sound management of OREO
                holdings. If the Federal savings association has not disposed of the
                OREO within the initial five-year holding period, the savings
                association may request OCC approval to continue to hold the real
                property as OREO for up to five additional years. These provisions are
                consistent with the rules that apply to national banks. The OCC's
                supervisory experience is that both types of institutions generally
                have or
                [[Page 17096]]
                obtain similar types of OREO. As with national banks, in deciding
                whether to grant the approval to hold OREO beyond the initial five-year
                holding period, the OCC would expect to consider, among other factors,
                the Federal savings association's current and prior efforts to dispose
                of the property and safety and soundness concerns related to an
                immediate disposition of the property. During the initial five-year
                holding period and any subsequent approved period, the Federal savings
                association would need to make reasonable efforts to dispose of the
                OREO. This provision is consistent with prior OTS expectations. This
                proposed framework also is consistent with the requirement previously
                applicable to Federal savings associations under 12 CFR part 167, which
                required savings associations to deduct from regulatory capital the
                value of OREO held for more than five years, or a longer period with
                OCC approval, as an equity investment. This provision created
                incentives for Federal savings associations to dispose of OREO within
                five years, or a longer period approved by the OCC, as the regulatory
                capital treatment for failure to dispose of the property generally
                would be more onerous than disposing of the property. The OCC believes
                that an initial five-year holding period is a sufficient amount of time
                to dispose of most OREO and the option to extend the holding period for
                an additional five years should be sufficient to address atypical
                properties or unusual real estate market conditions.
                 Question 1: Should the OCC require national banks and Federal
                savings associations to make specific efforts to dispose of OREO within
                the specified timeframes? If so, what efforts should the OCC require?
                 The proposal also would adopt for Federal savings associations the
                existing national bank provision describing the date the holding period
                for OREO begins. Generally, the holding period for DPC real estate
                would begin on the date the property is transferred to the national
                bank or Federal savings association (for example, after a judicial
                foreclosure or deed-in-lieu of foreclosure), which may be different
                than the date the institution must recognize the property as OREO for
                accounting and financial reporting purposes. The title transfer law of
                the state or other jurisdiction where the property is located would
                govern when the property is considered transferred to the national bank
                or Federal savings association. The holding period for former bank
                premises would begin when the national bank or Federal savings
                association ceases using a property as bank premises (whether outright
                or after relocating) or abandons a plan to use property held for future
                bank premises.
                 The OCC is proposing a modification for OREO obtained by a Federal
                savings association prior to the effective date of this proposed rule.
                For this OREO, the holding period would begin on the rule's effective
                date to provide for a full initial five-year holding period. The OCC
                still would consider the entire time the OREO has been held by the
                Federal savings association in evaluating any request for an additional
                holding period beyond that initial five years. The OCC believes this
                accommodation would provide Federal savings associations with a
                reasonable timeframe to dispose of OREO held prior to the effective
                date of the rule, rather than calculating the holding period back to
                the initial transfer date.
                 Question 2: Does the proposed adjustment to the calculation of the
                holding period for OREO obtained by a Federal savings association prior
                to the effective date of the rule provide an appropriate amount of time
                to dispose of the OREO consistent with the proposed rule?
                 The OCC also proposes to clarify that when a national bank or
                Federal savings association obtains OREO from a merged or acquired
                institution, the relevant holding period would commence on the
                effective date of the merger or acquisition and would not include any
                time the OREO had been held by the acquired institution prior to the
                merger or acquisition. Similarly, when an institution converts to a
                national bank or Federal savings association, the relevant holding
                period would begin on the date of conversion. However, if the
                institution was already a national bank or Federal savings association
                immediately prior to the conversion, the holding period would not reset
                on the conversion date.\8\ The OCC believes this is appropriate because
                different OREO standards might apply to an institution before it
                becomes a national bank or Federal savings association, unless the
                institution is already covered by the OCC's OREO rule. The proposed
                revision also would apply to Federal savings associations the existing
                national bank regulation that the holding period for DPC real estate
                that is subject to a redemption period imposed under state law begins
                after the expiration of the redemption period.
                ---------------------------------------------------------------------------
                 \8\ For example, if a Federal savings association that had OREO
                with a holding period that began in January 2016, converted to a
                national bank in June 2019, the OCC would still consider the holding
                period for the OREO to have begun in January 2016, not June 2019.
                ---------------------------------------------------------------------------
                 The proposed revised section also would address an interpretive
                issue that arises when a national bank or Federal savings association
                enters into a transaction to dispose of OREO, but the real estate is
                conveyed back to the institution for a reason other than a subsequent
                purchase by the institution (for example, if there is a failure to
                complete the disposition or the disposition is validly rescinded or
                unwound). In those cases, the holding period would be tolled during the
                period of time the OREO property was not under the bank's or savings
                association's control. For example, if a third party purchases OREO
                from a national bank or Federal savings association but later legally
                rescinds the sale, the bank or savings association cannot start a new
                five-year holding period for the property. Instead, any previous
                holding period (including approved extensions) would be tolled between
                the time the bank or savings association sold and reacquired the real
                property. Similarly, in certain U.S. government mortgage loan programs
                a national bank or Federal savings association may be required to
                transfer a foreclosed property to a U.S. government entity, and that
                entity may later validly reject receipt of the property and return
                title to the bank or savings association. In that case, the national
                bank or Federal savings association could not start a new five-year
                holding period for the property but could toll any previous holding
                period (including approved extensions) during the time the government
                entity had possession of the property. However, if the national bank or
                Federal savings association re-acquires property that was previously
                OREO and had been disposed of consistent with this part, then the five-
                year holding period would reset on that property. For example, if a
                bank originates a mortgage loan in connection with the sale of an OREO
                property that met the requirements for a valid disposition under part
                34, but later foreclose on that property due to missed mortgage
                payments, then the bank will obtain a new five-year holding period.
                 Question 3: Are there ways the calculations for the start of the
                holding period and any subsequent tolling could be improved? Should the
                OCC establish a bright line for when a property is acquired, rather
                than rely on state transfer laws and redemption periods? For real
                property, should the OCC refer to accounting standards to determine
                when a property is transferred to OREO?
                [[Page 17097]]
                 Question 4: Should the OCC allow a national bank or Federal savings
                association to restart the holding period on OREO, even if the
                institution converts to a different charter also subject to part 34?
                C. Disposition of OREO (Sec. 34.83)
                 This section would specify methods for national banks and Federal
                savings associations to dispose of OREO. Generally, the proposal would
                retain the existing disposal methods for national banks and allow
                Federal savings associations to dispose of OREO using those same
                methods. These methods include: (i) Selling the property outright or
                over a period of time; (ii) using DPC real estate as bank premises or
                affiliate premises; or (iii) entering into subleases of OREO leases.
                Writing OREO (whether owned or leased) down to zero for accounting
                purposes is not a valid disposition under the existing rules and would
                not be a valid disposition under the proposed revisions.
                 To provide for additional flexibility to dispose of OREO, the OCC
                also proposes to add a new paragraph (a)(5) that would allow the
                disposition of OREO in other ways approved by the OCC consistent with
                safe and sound banking practices. For example, the OCC previously has
                approved national banks and Federal savings associations to dispose of
                OREO in certain circumstances by donating or escheating OREO or by
                negotiating early terminations of OREO leases.
                 The proposal would recognize that, unlike a national bank, a
                Federal savings association also may transfer OREO to a service
                corporation. Under HOLA and 12 CFR 5.59, a Federal savings association
                may invest in a service corporation, which may engage in the same
                activities as its parent Federal savings association under the same
                terms and conditions. A service corporation also may engage in
                additional activities not permitted at a Federal savings association,
                including certain real estate related services such as holding property
                as an investment in real estate.\9\ In addition, 12 CFR 5.59(i) permits
                a Federal savings association to make a contribution to a service
                corporation in the exercise of the association's salvage powers.\10\
                Consistent with HOLA and 12 CFR 5.59, the proposal would allow a
                Federal savings association, through a service corporation, to hold
                OREO property as an investment or for longer than 10 years. However,
                under current statutory and regulatory capital requirements, a Federal
                savings association must deconsolidate, and deduct any investments in,
                a subsidiary engaged in activities not permissible for a national bank,
                including holding property as an investment in real estate.\11\
                ---------------------------------------------------------------------------
                 \9\ See 12 U.S.C. 1464(c)(4)(B) and 12 CFR 5.59.
                 \10\ 12 CFR 5.59(i) provides that a Federal savings association
                may exercise its salvage power to make a contribution or a loan . .
                . to a service corporation (``salvage investment'') that exceeds the
                maximum amount otherwise permitted under law or regulation.'' The
                Federal savings association must demonstrate that: (i) The salvage
                investment protects the association's interest in the service
                corporation; (ii) the salvage investment is consistent with safety
                and soundness; and (iii) the association considered alternatives to
                the salvage investment but determined the alternatives would not
                satisfy (i) and (ii).
                 \11\ 12 U.S.C. 1464(t)(5) and 12 CFR 3.22(a)(8). Holding
                property as an investment in real estate is not authorized for a
                national bank under 12 U.S.C. 29.
                ---------------------------------------------------------------------------
                 Finally, the proposed revised section would retain the requirement
                that a national bank must make a diligent and ongoing effort to dispose
                of OREO and maintain documentation of those efforts. The proposal also
                would apply these provisions to Federal savings associations.
                Compliance with the requirement to document the national bank's or
                Federal savings association's diligence when attempting to dispose of
                OREO is an important consideration if the national bank or Federal
                savings association requests an extension to hold OREO beyond the
                initial five-year holding period. The proposed requirement that a
                Federal savings association make diligent efforts to dispose of OREO
                and maintain relevant documentation is consistent with both prior OTS
                expectations that savings associations develop salvage plans that
                included provisions for disposition of OREO and the existing
                requirement that Federal savings associations maintain documentation of
                appraisals of OREO.\12\
                ---------------------------------------------------------------------------
                 \12\ 12 CFR 160.172.
                ---------------------------------------------------------------------------
                 Question 5: Should the proposed rule include additional disposition
                methods for OREO held by national banks and Federal savings
                associations? Are there ways the proposed methods could be improved or
                clarified? For owned, rather than leased, real estate, should the OCC
                defer to accounting standards to determine when a property is sold
                (that is, based on whether the transfer qualifies for sales treatment
                under accounting standards)?
                D. Appraisal Requirements (Sec. 34.85)
                 This section would specify the appraisal requirements applicable to
                OREO. The proposal would carry over the existing requirements for
                appraisals of OREO for national banks and apply those same requirements
                to Federal savings associations. Generally, this section requires an
                appraisal consistent with 12 CFR part 34, subpart C when property is
                obtained as OREO followed by periodic monitoring thereafter. In
                addition, the proposed section would continue to include existing
                exceptions from the appraisal requirements. For example, an appraisal
                would not be required if there is still a valid appraisal that was
                created in a transaction involving the property, as described in Sec.
                34.85(b). Because the requirements for appraisals of OREO held by
                Federal savings associations would be set out in the proposed rule, the
                OCC also is proposing to repeal 12 CFR 160.172, which currently
                includes comparable appraisal standards for OREO held by Federal
                savings associations.
                E. OREO Expenditures and Notification (Sec. 34.86)
                 This section would contain provisions related to permissible
                expenditures on OREO. The proposal would codify various interpretations
                regarding other permissible expenses related to OREO for national banks
                and Federal savings associations in new paragraphs (a) and (b).
                Paragraph (a) would allow national banks and Federal savings
                associations to pay any normal operating expenses relating to the OREO
                property, such as taxes, insurance, utilities, and maintenance, and
                condominium association fees, to the extent those fees are reasonable
                and consistent with safe and sound banking practices. This proposed
                addition is consistent with a provision in existing paragraph (b)(1),
                prior interpretations issued by the OCC for national banks, and prior
                OTS expectations concerning payment of taxes, insurance, and similar
                expenses on OREO by Federal savings associations.\13\
                ---------------------------------------------------------------------------
                 \13\ See Comptroller's Handbook on ``Other Real Estate Owned''
                (August 2018). For Federal savings associations, this provision was
                included in the OTS Examination Handbook, Section 251, ``Real Estate
                Owned and Repossessed Assets'' (December 2010), which has since been
                rescinded by the OCC.
                ---------------------------------------------------------------------------
                 Paragraph (b) would allow national banks and Federal savings
                associations to pay expenses for the operation of a business associated
                with the OREO property, if: (i) Payment of the expenses reduces the
                shortfall between the current value of the property and the national
                bank or Federal savings association's investment in the property; and
                (ii) the expenses are consistent with safe and sound banking practices.
                For example, if a national bank or Federal savings association obtains
                an OREO property that includes a functioning hotel and resort, the
                national bank or Federal savings association may be able to minimize
                its loss on the defaulted loan by continuing to pay business
                [[Page 17098]]
                expenses to operate the hotel and resort, such as staff wages,
                inventory, management fees, and licensing fees, while the OREO is being
                prepared for sale. The OCC has previously addressed these types of
                expenses for national banks consistent with safe and sound banking
                practices, and this provision would extend the permission to Federal
                savings associations.\14\
                ---------------------------------------------------------------------------
                 \14\ See Comptroller's Handbook on ``Other Real Estate Owned''
                (August 2018).
                ---------------------------------------------------------------------------
                 Under the current rule, a national bank is permitted to make
                advances to complete an OREO development or improvement project
                (referred to as ``additional expenditures''). Paragraph (c) would
                continue the existing requirements for additional expenditures on OREO
                for a national bank and apply the same requirements to a Federal
                savings association. A national bank or Federal savings association
                could make additional expenditures only if: (i) The expenditures are
                reasonably calculated to reduce the shortfall between the current value
                of the property and the bank's investment in the property; (ii) the
                expenditures are not made for purposes of speculation in real estate;
                and (iii) the expenditures are consistent with safe and sound banking
                practices. These proposed requirements are consistent with prior OTS
                expectations, which addressed a Federal savings association's
                reasonable capital expenditures to reduce the loss on OREO obtained by
                the savings association.\15\
                ---------------------------------------------------------------------------
                 \15\ Id. For Federal savings associations, this provision was
                included in the OTS Examination Handbook, Section 251, ``Real Estate
                Owned and Repossessed Assets'' (December 2010), which has since been
                rescinded by the OCC.
                ---------------------------------------------------------------------------
                 In addition, paragraph (d) would update the requirements for prior
                notification for significant additional expenditures on OREO for
                national banks and extend the provision to Federal savings
                associations. Currently, under 12 CFR 34.86(b), a national bank must
                notify the OCC at least 30 days before making additional expenditures
                if the amount of the expenditures and recorded investment in the OREO
                exceeds ten percent of the national bank's capital and surplus, which
                generally is based on regulatory capital calculated under 12 CFR part
                3. Federal savings associations, in turn, were subject to supervisory
                review of any expenditures on OREO in excess of their lending limits,
                which are calculated based on a formula that incorporates a percentage
                of capital and surplus.\16\ While based on different calculations, the
                supervisory review for Federal savings associations had a similar
                purpose as the required OCC notification for national banks, namely, to
                ensure that institutions did not expend an excessive amount of funds to
                complete or renovate OREO. The OCC proposes to update and streamline
                the notification provision by requiring prior notification only when
                the proposed additional expenditures and recorded investment in an
                individual OREO property exceeds 10 percent of the institution's total
                equity capital based on the institution's most recent Consolidated
                Reports of Condition and Income (Call Report). The OCC believes using a
                measure based on total equity capital for this purpose, rather than a
                measure tied to 12 CFR part 3 regulatory capital or lending limits,
                allows for a less burdensome and more transparent calculation, while
                not impairing the OCC's supervisory review of institutions that propose
                making significant additional expenditures on OREO.
                ---------------------------------------------------------------------------
                 \16\ This provision was reflected in the OTS lending limits at
                12 CFR 560.93 and included in the OTS Examination Handbook, Section
                211, ``Loans to One Borrower'' (December 2007)., The OCC has
                superseded the rule and rescinded the guidance.
                ---------------------------------------------------------------------------
                 A comparison of capital and surplus and total equity capital for
                national banks supports this approach.\17\ Based on information from
                the June 30, 2018 Call Report, the measures of regulatory capital and
                total equity capital are numerically comparable, and identical in some
                cases, for many national banks that hold OREO. Under the proposed
                measure, national banks with significant loan loss reserves or
                excessive losses recorded in accumulated other comprehensive income
                would generally have a lower limit for notification compared with the
                existing measure. The OCC believes this result is appropriate, as those
                losses may indicate national banks with a higher risk profile for which
                notification of significant OREO expenditures is most relevant.
                National banks holding assets that are deducted under the regulatory
                capital rule, such as mortgage servicing assets or investments in other
                financial institutions, would generally have a higher limit for
                notification under the proposed measure.
                ---------------------------------------------------------------------------
                 \17\ The OCC did not review these measures for Federal savings
                associations because Federal savings associations currently are not
                subject to either the existing limit or proposed notification
                provision for improvements to OREO.
                ---------------------------------------------------------------------------
                 Question 6: Is the proposed allowance for payment of operating and
                business expenses related to OREO, subject to the proposed safety and
                soundness standards, reasonable? Are there other common OREO expenses
                the OCC should consider specifically including in the regulation?
                 Question 7: Should the proposed threshold for notification be based
                on a measure other than total equity capital? Should the proposed
                threshold be higher or lower?
                F. Additional Provisions
                 The OCC proposes to rescind existing 12 CFR 34.87, which requires
                national banks to account for OREO consistent with the instructions for
                the Call Report, because it is now redundant to statutory requirements.
                Historically, there have been differences between regulatory accounting
                principles and generally accepted accounting principles (GAAP).
                However, currently, national banks and Federal savings associations
                must follow GAAP when accounting for transactions involving OREO.\18\
                Therefore, codifying this requirement in the OREO rule is unnecessary.
                Guidance on the application of GAAP for OREO transactions can be found
                in the instructions for the Call Report and the OCC's Bank Accounting
                Advisory Series.\19\ However, the OCC notes that, although the
                accounting standard generally establishes a bright line for when a bank
                must report a property as OREO for financial reporting purposes (i.e.,
                when a judge completes a judicial foreclosure), section 34.82(b) does
                not establish a bright line for when property is originally transferred
                to a bank. As a result, the date on which reporting requirements begin
                for OREO under the accounting standard may be different than the date
                that the holding period commences under 34.82(b), as described above in
                Section III.B. We also note that writing off a property or lease
                classified as OREO for accounting purposes does not eliminate the need
                to comply with the requirements of this subpart, including the
                requirement for appraisals and disposition of the property or lease
                under one of the allowed methods.
                ---------------------------------------------------------------------------
                 \18\ See 12 U.S.C. 1831n(a)(2).
                 \19\ Bank Accounting Advisory Series (August 2018), available
                at: https://www.occ.gov/publications/publications-by-type/other-publications-reports/baas.pdf.
                ---------------------------------------------------------------------------
                IV. Proposed Technical Amendments
                 As described above, the OCC also is proposing to remove Appendices
                A and B to 12 CFR part 3 (risk-based capital guidelines for national
                banks) and 12 CFR part 167 (capital requirements for FSAs) and make
                conforming technical edits to other parts, as part 167 is outdated and
                includes OREO provisions that conflict with the provisions described in
                this proposal. The OCC did not immediately rescind those rules due to
                an extended transition period to the new capital rule for certain
                provisions. The proposed rule also makes
                [[Page 17099]]
                conforming technical changes to portions of the OCC's rules that refer
                to Appendices A and B to 12 CFR part 3 or to 12 CFR part 167.
                Specifically, the OCC would make conforming edits to 12 CFR 3.1, 6.1,
                6.2, Appendix A to Subpart D of part 34, 46.6, 160.100, Appendix A to
                160.101, 161.55, 163.74, and 163.80. This proposed rule does not impact
                the legal status of any reference to the superseded capital rules in
                outstanding compliance and enforcement orders, agreements, and
                memoranda of understanding entered into by the OCC and a national bank
                or Federal savings association, as those references became references
                to 12 CFR part 3 when the revised capital rule became effective.
                V. Regulatory Analyses
                A. Paperwork Reduction Act
                 Under the Paperwork Reduction Act of 1995,\20\ the OCC may not
                conduct or sponsor, and a person is not required to respond to, an
                information collection unless the information collection displays a
                valid OMB control number. The OCC has submitted the information
                collection requirements imposed by this proposal to OMB for review.
                However, the proposal will not result in a change in burden. While the
                respondent count will increase with the addition of Federal savings
                associations, we estimate fewer notices from national banks due to a
                decrease in charters since the last review, resulting in no change in
                burden.
                ---------------------------------------------------------------------------
                 \20\ 44 U.S.C. 3501 et seq.
                ---------------------------------------------------------------------------
                 Section 34.86(d) updates the requirements for prior notification
                for significant additional expenditures on OREO for national banks and
                extends the provision to Federal savings associations. Currently, a
                national bank must notify the OCC at least 30 days before making
                additional expenditures if the amount of the expenditures and recorded
                investment in the OREO exceeds ten percent of its capital and surplus,
                based on regulatory capital calculated under 12 CFR part 3. Federal
                savings associations are subject to supervisory review of any
                expenditures on OREO in excess of their lending limits, which are
                calculated based on a formula that incorporates a percentage of capital
                and surplus.
                 The proposal updates and streamlines the notification provision by
                requiring prior notification only when the proposed additional
                expenditures and recorded investment in an individual OREO property
                exceeds 10 percent of the institution's total equity capital based on
                its most recent Call Report. National banks with significant loan loss
                reserves or excessive losses recorded in accumulated other
                comprehensive income will generally have a reduced limit for
                notification. National banks holding assets that are deducted under the
                regulatory capital rule, will generally have an increase limit for
                notification under the proposal.
                 Title: Real Estate Lending and Appraisals.
                 OMB Control No.: 1557-0190.
                 Frequency of Response: On occasion.
                 Affected Public: Businesses or other for-profit organizations.
                 Estimated Number of Respondents: 6.
                 Estimated Burden per Respondent: 5 hours.
                 Estimated Total Annual Burden: 30 hours.
                 Comments are invited on:
                 (a) Whether the collections of information are necessary for the
                proper performance of the functions of the OCC, including whether the
                information has practical utility;
                 (b) The accuracy of the OCC's estimates of the burden of the
                collections of information;
                 (c) Ways to enhance the quality, utility, and clarity of the
                information to be collected;
                 (d) Ways to minimize the burden of the collections on respondents,
                including through the use of automated collection techniques or other
                forms of information technology; and
                 (e) Estimates of capital or start-up costs and costs of operation,
                maintenance, and purchase of services to provide information.
                B. Regulatory Flexibility Act Analysis
                 The Regulatory Flexibility Act \21\ requires an agency, in
                connection with a proposed rule, to prepare an Initial Regulatory
                Flexibility Analysis describing the impact of the rule on small
                entities (defined by the SBA for purposes of the RFA to include
                commercial banks and savings institutions with total assets of $550
                million or less and trust companies with total revenue of $38.5 million
                or less) or to certify that the proposed rule would not have a
                significant economic impact on a substantial number of small entities.
                As of December 31, 2017, the OCC supervised 886 small entities. The
                proposed rule would apply to all entities supervised by the OCC, and
                therefore would affect a substantial number of small entities. The
                economic impact on each small Federal savings association is estimated
                to be approximately $1,872, which is not significant based on 5% of
                total annual salaries or 2.5% of other noninterest income. The economic
                impact on each small national bank is estimated to be de minimis.
                Therefore, the OCC certifies the proposed rule would not have a
                significant economic impact on a substantial number of small entities.
                ---------------------------------------------------------------------------
                 \21\ 5 U.S.C. 601 et seq.
                ---------------------------------------------------------------------------
                C. OCC Unfunded Mandates Reform Act of 1995
                 The OCC analyzed the proposed rule under the factors set forth in
                the Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under
                this analysis, the OCC considered whether the proposed rule 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 $100
                million or more in any one year (adjusted for inflation). The OCC
                estimates that the total cost of the proposed rule is $583,000.
                Therefore, the OCC has determined that this proposed rule would not
                result in expenditures by State, local, and Tribal governments, or the
                private sector, of $100 million or more in any one year. Accordingly,
                the OCC has not prepared a written statement to accompany this
                proposal.
                D. Riegle Community Development and Regulatory Improvement Act of 1994
                 This rulemaking would not impose additional reporting, disclosure,
                or other requirements on an insured depository institution. Therefore,
                section 302(a) of the Riegle Community Development and Regulatory
                Improvement Act of 1994 does not apply to this rulemaking.
                List of Subjects
                12 CFR Part 3
                 Administrative practice and procedure, Capital, National banks,
                Reporting and recordkeeping requirements, Risk.
                12 CFR Part 6
                 National banks.
                12 CFR Part 34
                 Appraisal, Appraiser, Banks, Banking, Consumer protection, Credit,
                Mortgages, National banks, Reporting and recordkeeping requirements,
                Savings associations, Truth in lending.
                12 CFR Part 46
                 Banks, Banking, Capital, Disclosures, National banks, Reporting and
                recordkeeping requirements, Risk, Stress test.
                12 CFR Part 160
                 Consumer protection, Investments, Manufactured homes, Mortgages,
                Reporting and recordkeeping
                [[Page 17100]]
                requirements, Savings associations, Securities.
                12 CFR Part 161
                 Administrative practice and procedure, Savings associations.
                12 CFR Part 163
                 Accounting, Administrative practice and procedure, Advertising,
                Conflicts of interest, Crime, Currency, Investments, Mortgages,
                Reporting and recordkeeping requirements, Savings associations, Surety
                bonds.
                12 CFR Part 167
                 Capital, Reporting and recordkeeping requirements, Risk, Savings
                associations.
                 For the reasons set out in the preamble, the OCC proposes to revise
                the following parts as follows:
                PART 3--CAPITAL ADEQUACY STANDARDS
                0
                1. The authority citation for part 3 continues to read as follows:
                 Authority: 12 U.S.C. 93a, 161, 1462, 1462a, 1463, 1464, 1818,
                1828(n), 1828 note, 1831n note, 1835, 3907, 3909, and 5412(b)(2)(B).
                Sec. 3.1 [Amended]
                0
                2. Section 3.1 is amended by removing and reserving paragraph
                (f)(1)(ii) and removing paragraphs (f)(1)(ii)(A), (f)(1)(ii)(B),
                (f)(1)(ii)(C), and footnotes 1 and 2.
                Appendix A to Part 3 [Removed]
                0
                3. Remove Appendix A to part 3.
                Appendix B to Part 3 [Removed]
                0
                4. Remove Appendix B to part 3.
                PART 6--PROMPT CORRECTIVE ACTION
                0
                5. The authority citation for part 6 continues to read as follows:
                 Authority: 12 U.S.C. 93a, 1831o, 5412(b)(2)(B).
                Sec. 6.1 [Amended]
                0
                6. Section 6.1 is amended by removing and reserving paragraph (f)(1),
                and removing paragraphs (f)(1)(i) and (f)(1)(ii).
                Sec. 6.2 [Amended]
                0
                7. Section 6.2 is amended by removing footnotes 30, 31, 32, 33, 34, and
                35.
                PART 34--REAL ESTATE LENDING AND APPRAISALS
                0
                8. The authority citation for part 34 continues to read as follows:
                 Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, 371, 1462a, 1463,
                1464, 1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq., and
                5412(b)(2)(B) and 15 U.S.C. 1639h.
                Subpart D--Real Estate Lending Standards
                Appendix A to Subpart D of Part 34 [Amended]
                0
                9. Footnote 2 of Appendix A to Subpart D of part 34 is amended to read
                as follows:
                * * * * *
                 \2\ For the state member banks, the term ``total capital'' means
                ``total risk-based capital'' as defined in Appendix A to 12 CFR part
                208. For insured state non-member banks, ``total capital'' refers to
                that term described in table I of Appendix A to 12 CFR part 325. For
                national banks and Federal savings associations, the term ``total
                capital'' is defined at 12 CFR 3.2.
                * * * * *
                Subpart E--Other Real Estate Owned
                0
                10. Section 34.81 is amended by:
                0
                a. Removing the paragraph designations for paragraphs (a) through (f);
                0
                b. Removing the definition of capital and surplus; and
                0
                c. Revising the definitions of debts previously contracted (DPC) real
                estate and former banking premises.
                 The revisions read as set forth below.
                Sec. 34.81 Definitions.
                * * * * *
                 Debts previously contracted (DPC) real estate means real estate
                (including leases) acquired by a national bank or Federal savings
                association through any means in full or partial satisfaction of a debt
                previously contracted.
                * * * * *
                 Former banking premises means real estate permissible under Sec.
                7.1000(a)(2) of this chapter that is no longer used or contemplated to
                be used for the purposes permitted in that section.
                * * * * *
                0
                11. Section 34.82 is amended by:
                0
                a. Revising paragraphs (a) and (b); and
                0
                b. Adding paragraphs (d) and (e).
                 The revisions and additions read as set forth below.
                Sec. 34.82 Holding Period.
                 (a) Holding period for OREO. (1) National bank. A national bank
                shall dispose of OREO at the earliest time that prudent judgment
                dictates, but not later than the end of the holding period (or an
                extension thereof) permitted by 12 U.S.C. 29.
                 (2) Federal savings association. A Federal savings association may
                hold OREO for not more than five years after commencement of the
                holding period. On the request of a Federal savings association, the
                OCC may extend the holding period for not more than an additional five
                years.
                 (b) Commencement of holding period. The holding period begins on
                the date that:
                 (1) Ownership of the property is originally transferred to a
                national bank or Federal savings association, including as a result of
                a merger with or acquisition of another organization holding OREO;
                 (2) A national bank or Federal savings association completes
                relocation from former banking premises to new banking premises or
                ceases to use the former banking premises without relocating; or
                 (3) A national bank or Federal savings association decides not to
                use real estate acquired for future banking expansion; or
                 (4) An institution converts to a national bank or Federal savings
                association, unless the institution was a national bank or Federal
                savings association immediately prior to the conversion.
                 (5) Is the effective date of the final rule, for OREO obtained by a
                Federal savings association prior to that date.
                * * * * *
                 (d) Effect of failed disposition. If a national bank or Federal
                savings association disposes of OREO, but the real estate subsequently
                is conveyed back to the institution within five years as a result of a
                valid rescission or invalidation of the original disposition, then the
                holding period will be tolled for the period during which the real
                estate was not in possession of the national bank or Federal savings
                association.
                 (e) Re-acquisition of former OREO. If a national bank or Federal
                savings association reacquires a property that had been OREO and was
                disposed of consistent with Sec. 34.83, the holding period will reset.
                0
                12. Section 34.83 is amended by:
                0
                a. Revising the section heading;
                0
                b. Revising paragraphs (a) introductory text, (a)(3) introductory text,
                (a)(3)(i)(B), (a)(3)(ii);
                0
                c. Revising paragraph (a)(4) by removing ``.'' at the end of the
                paragraph and adding ``; or'' in its place;
                0
                d. Adding paragraph (a)(5);
                0
                e. Redesignating paragraph (b) as paragraph (c);
                0
                f. Adding new paragraph (b); and
                0
                g. Adding in paragraph (c) the words ``or Federal savings association''
                after ``national bank'' in the first sentence.
                 The revisions and additions read as set forth below.
                [[Page 17101]]
                Sec. 34.83 Disposition of OREO.
                 (a) Disposition. A national bank or Federal savings association may
                dispose of OREO in the following ways:
                * * * * *
                 (3) With respect to a lease:
                 (i) By obtaining an assignment or a coterminous sublease. If a
                national bank or Federal savings association enters into a sublease
                that is not coterminous, the period during which the master lease must
                be divested will be suspended for the duration of the sublease, and
                will begin running again upon termination of the sublease. A national
                bank or Federal savings association holding a lease as OREO may enter
                into an extension of the lease that would exceed the holding period
                referred to in Sec. 34.82 if the extension meets the following
                criteria:
                 (A) * * *
                 (B) The national bank or Federal savings association, prior to
                entering into the extension, has a firm commitment from a prospective
                subtenant to sublease the property; and
                * * * * *
                 (ii) Should the OCC determine that a national bank or Federal
                savings association has entered into a lease, extension of a lease, or
                a sublease for the purpose of real estate speculation, the OCC will
                take appropriate measures to address the violation, which may include
                requiring the bank or savings association to take immediate steps to
                divest the lease or sublease; and
                * * * * *
                 (5) By any other method approved by the OCC.
                 (b) Additional method for Federal savings associations. A Federal
                savings association also may transfer OREO to a service corporation. A
                service corporation may hold real property transferred to it:
                 (1) As OREO, subject to the requirements otherwise applicable to
                the Federal savings association under this Subpart E; or
                 (2) As an investment in real estate under Sec. 5.59.
                * * * * *
                Sec. 34.85 [Amended]
                0
                13. Section 34.85 is amended by:
                0
                a. Adding the words ``or Federal savings association'' after ``national
                bank'', wherever it appears; and
                0
                b. Adding the words ``or savings association'' after ``the bank'',
                wherever it appears.
                0
                14. Revise Sec. 34.86 including the section heading to read as
                follows:
                Sec. 34.86 OREO expenditures and notification.
                 (a) Operating expenditures. A national bank or Federal savings
                association may pay operating expenses on OREO, including taxes,
                insurance, utilities, and maintenance, that are reasonable and
                consistent with safe and sound banking practices.
                 (b) Business expenditures. A national bank or Federal savings
                association may pay expenses for OREO that includes the operation of a
                business, provided the expenses are:
                 (1) Reasonably calculated to reduce any shortfall between the
                property's market value and the recorded investment amount; and
                 (2) Consistent with safe and sound banking practices.
                 (c) Additional expenditures. For OREO that is a development or
                improvement project, a national bank or Federal savings association may
                make advances to complete the project if the advances are:
                 (1) Reasonably calculated to reduce any shortfall between the
                property's market value and the recorded investment amount;
                 (2) Not made for the purpose of speculation in real estate; and
                 (3) Consistent with safe and sound banking practices.
                 (d) Notification procedures for additional expenditures.
                 (1) A national bank or Federal savings association shall notify the
                appropriate supervisory office at least 30 days before implementing a
                development or improvement plan for OREO when the sum of the plan's
                estimated cost and the bank's or savings association's current recorded
                investment amount (including any unpaid prior liens on the property)
                exceeds 10 percent of the bank's or savings association's total equity
                capital on its most recent report of condition. A national bank or
                Federal savings association need notify the OCC under this paragraph
                (d)(1) only once.
                 (2) The required notification must demonstrate that the additional
                expenditure is consistent with the conditions and limitations in
                paragraph (c) of this section.
                 (3) Unless informed otherwise, the national bank or Federal savings
                association may implement the proposed plan on the thirty-first day (or
                sooner, if notified by the OCC) following receipt by the OCC of the
                notification, subject to any conditions imposed by the OCC.
                Sec. 34.87 [Removed]
                0
                15. Remove Sec. 34.87.
                PART 46--ANNUAL STRESS TEST
                0
                16. The authority citation for part 46 continues to read as follows:
                 Authority: 12 U.S.C. 93a; 1463(a)(2); 5365(i)(2); and
                5412(b)(2)(B).
                Sec. 46.6 [Amended]
                0
                17. Section 46.6 paragraph (a)(2) is amended by removing the words ``or
                part 167, as applicable,'' after ``12 CFR part 3'' in the first
                sentence.
                PART 160--LENDING AND INVESTMENT
                0
                18. The authority for part 160 continues to read as follows:
                 Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 1701j-3, 1828,
                3803, 3806, 5412(b)(2)(B); 42 U.S.C. 4106.
                Sec. 160.100 [Amended]
                0
                19. Section 160.100 is amended by removing ``or 167.1, as
                applicable,''.
                Appendix A to Sec. 160.101 [Amended]
                0
                20. Footnote 2 of the Appendix to Section 160.101 is amended to read as
                follows:
                * * * * *
                 \2\ For the state member banks, the term ``total capital'' means
                ``total risk-based capital'' as defined in Appendix A to 12 CFR part
                208. For insured state non-member banks, ``total capital'' refers to
                that term described in table I of Appendix A to 12 CFR part 325. For
                national banks and Federal savings associations, the term ``total
                capital'' is defined at 12 CFR 3.2.
                * * * * *
                Sec. 160.172 [Removed]
                0
                21. Remove Sec. 160.172.
                PART 161--DEFINITIONS FOR REGULATIONS AFFECTING ALL SAVINGS
                ASSOCIATIONS
                0
                22. The authority for part 161 continues to read as follows:
                 Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 5412(b)(2)(B).
                Sec. 161.55 [Amended]
                0
                23. Section 161.55 paragraph (c) is amended by removing the words ``or
                part 167, as applicable'' after ``12 CFR part 3''.
                PART 163--SAVINGS ASSOCIATIONS--OPERATIONS
                0
                24. The authority for part 163 continues to read as follows:
                 Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 1817, 1820,
                1828, 1831o, 3806, 5101 et seq., 5412(b)(2)(B); 31 U.S.C. 5318; 42
                U.S.C. 4106.
                Sec. 163.74 [Amended]
                0
                25. Section 163.74 is amended:
                [[Page 17102]]
                0
                a. Removing in paragraph (i)(2)(iv), the wording ``or part 167, as
                applicable,'' after ``12 CFR part 3''; and;
                0
                b. Removing in the first sentence of paragraph (i)(2)(v) the wording
                ``or part 167, as applicable,'' after ``12 CFR part 3''.
                Sec. 163.80 [Amended]
                0
                26. In Sec. 163.80 amend the first sentence of paragraph (e)(1) by
                removing the wording ``or part 167, as applicable''.
                PART 167 [Removed]
                0
                27. Remove part 167.
                 Dated: April 17, 2019.
                Joseph M. Otting,
                Comptroller of the Currency.
                [FR Doc. 2019-08128 Filed 4-23-19; 8:45 am]
                 BILLING CODE 4810-33-P
                

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT