OCC Proposes Tweaks to Requirements for Permissible Bank Premises

The OCC today proposed changes to its current rules on national bank or federal savings association ownership of real property. The proposal will provide a set of general standards—including an occupancy test and excess capacity standards—that the OCC will use for determining whether the acquisition and holding of real estate is necessary for the transaction of an institution’s business.

The proposal defines bank occupied office premises as those “containing offices where professional or clerical duties are performed” and “as real estate acquired and held in good faith in which more than 50% of each building or severable piece of land is used by bank persons, including facilities that may be operated by third parties to provide amenities and services to bank persons or otherwise facilitate bank business operations.” Comments on the proposal are due 45 days after publication in the Federal Register.