+--------+---+----------------------------------+---------+------------+---+
| # O    | # |                                  |         |            | # |
|        | # |                                  |         |            |   |
| ##     | # |                                  |         |            |   |
|        | # |                                  |         |            | # |
|        |   |                                  |         |            |   |
|        | O |                                  |         |            |   |
|        | C |                                  |         |            | # |
|        | C |                                  |         |            | # |
|        |   |                                  |         |            |   |
|        | 2 |                                  |         |            |   |
|        | 0 |                                  |         |            |   |
|        | 0 |                                  |         |            |   |
|        | 3 |                                  |         |            |   |
|        | - |                                  |         |            |   |
|        | 7 |                                  |         |            |   |
+--------+---+----------------------------------+---------+------------+---+
|        | * |                                  |         |            |   |
|        | * |                                  |         |            |   |
|        | O |                                  |         |            |   |
|        | C |                                  |         |            |   |
|        | C |                                  |         |            |   |
|        | B |                                  |         |            |   |
|        | U |                                  |         |            |   |
|        | L |                                  |         |            |   |
|        | L |                                  |         |            |   |
|        | E |                                  |         |            |   |
|        | T |                                  |         |            |   |
|        | I |                                  |         |            |   |
|        | N |                                  |         |            |   |
|        | * |                                  |         |            |   |
|        | * |                                  |         |            |   |
+--------+---+----------------------------------+---------+------------+---+
| ## Com |   |                                  |         |            |   |
| ptroll |   |                                  |         |            |   |
| er of  |   |                                  |         |            |   |
| the Cu |   |                                  |         |            |   |
| rrency |   |                                  |         |            |   |
|        |   |                                  |         |            |   |
| > A    |   |                                  |         |            |   |
| dminis |   |                                  |         |            |   |
| trator |   |                                  |         |            |   |
| > of   |   |                                  |         |            |   |
| > Na   |   |                                  |         |            |   |
| tional |   |                                  |         |            |   |
| >      |   |                                  |         |            |   |
|  Banks |   |                                  |         |            |   |
+--------+---+----------------------------------+---------+------------+---+
| ## Su  |   | Public Welfare Investments       | #       | ## Pro     |   |
| bject: |   |                                  | # Descr | posed Rule |   |
|        |   |                                  | iption: |            |   |
+--------+---+----------------------------------+---------+------------+---+

**TO:** Chief Executive Officers of All National Banks, Federal Branches
and Agencies, Department and Division Heads, and All Examining Personnel

The attached notice of proposed rulemaking (NPRM), which would amend 12
CFR 24, the OCC's rules governing public welfare investments by national
banks, was published in the *Federal Register* on January 10, 2003.
Comments are due March 11.

The NPRM would amend part 24 to:

-   Update the definition section of the regulation to reflect the
    additional types of public welfare investment structures that have
    become more common in recent years and that are permissible under
    the governing statute;

-   Clarify the statutory standard that applies to the activities of
    those entities;

-   Simplify the standards for making public welfare investments;

-   Clarify how a national bank calculates the value of its public
    welfare investments for purposes of complying with the rule's
    investment limits;

-   Simplify the regulation's investment self-certification and prior
    approval processes; and

-   Expand the list of examples of qualifying public welfare investments
    that satisfy the rule's requirements.

These changes are intended to encourage additional public welfare
investments by national banks by simplifying the regulation and by
further reducing unnecessary burden associated with part 24 investments.

For questions concerning this NPRM, contact Michele Meyer, counsel,
Legislative and Regulatory Activities Division at (202) 874-5090; or
Barry Wides, director, or Karen Bellesi, investments manager, Community
Development Division at (202) 874-4930.

Julie L. Williams

First Senior Deputy Comptroller and Chief Counsel

Attachment -- [68 FR 1394](../..%5C..%5Cfr/fedregister/68fr1394.pdf)