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OCC BULLETIN 2019-25
To: Chief Executive Officers of All National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel, and Other Interested Parties

Description: Final Rule

Summary

On May 24, 2019, the Office of the Comptroller of the Currency (OCC) issued a final rule to allow federal savings associations with total consolidated assets of $20 billion or less as of December 31, 2017, to elect national bank powers and operate as covered savings associations. The final rule aims to provide certain federal savings associations with additional flexibility to adapt to new economic conditions and business environments without changing their charters.

Note for Community Banks

This final rule applies to federal savings associations with total consolidated assets of $20 billion or less as of December 31, 2017.

Highlights

Section 206 of the Economic Growth, Regulatory Relief, and Consumer Protection Act created a new Section 5A in the Home Owners’ Loan Act that requires the OCC to issue regulations to allow federal savings associations with total consolidated assets of $20 billion or less as of December 31, 2017, to elect national bank powers and operate as covered savings associations.

Under the final rule, a covered savings association

  • generally has the same rights and privileges as a national bank with its main office in the same location as the home office of the covered savings association, with some exceptions.
  • is subject to the same duties, restrictions, penalties, liabilities, conditions, and limitations that apply to a national bank, with some exceptions.
  • retains its federal savings association charter and continues to be treated as a federal savings association for purposes of governance, including incorporation, bylaws, boards of directors, shareholders, and distribution of dividends.
  • is treated as a federal savings association for purposes of consolidation, merger, dissolution, conversion (including conversion to a stock bank or another charter), conservatorship, and receivership, and for other purposes set out in the final rule.

Further Information

Please contact Charlotte Bahin, Senior Advisor for Thrift Supervision, 202-649-6281; Lazaro Barreiro, Director for Governance and Operational Risk Policy, 202-649-6550; or Alison MacDonald, Special Counsel, 202-649-5490, or Demetria H. Springs, Special Counsel, 202-649-5500, Chief Counsel’s Office.

 

Jonathan V. Gould
Senior Deputy Comptroller and Chief Counsel

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