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Code · CFR · Title 12 — Banks and Banking · Part 24 — Community and Economic Development Entities, Community Development Projects, and Other Public Welfare Investments · § 24.4

§ 24.4. Investment limits.

178 words·~1 min read·/us/cfr/t12/s§ 24.4·

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(a)Limits on aggregate outstanding investments. A national bank's aggregate outstanding investments under this part may not exceed 5 percent of its capital and surplus, unless the bank is at least adequately capitalized and the OCC determines, by written approval of a written request by the bank to exceed the 5 percent limit, that a higher amount of investments will not pose a significant risk to the deposit insurance fund. In no case may a bank's aggregate outstanding investments under this part exceed 15 percent of its capital and surplus. When calculating the aggregate amount of its aggregate outstanding investments under this part, a national bank should follow generally accepted accounting principles, unless otherwise directed or permitted in writing by the OCC for prudential or safety and soundness reasons.
(b)Limited liability. A national bank may not make an investment under this part that would expose the bank to unlimited liability. [61 FR 49660, Sept. 23, 1996, as amended at 64 FR 70991, Dec. 20, 1999; 68 FR 48776, Aug. 15, 2003; 73 FR 22244, Apr. 24, 2008]
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