Recent corporate decisions

US Office of the Comptroller of the Currency: Quarterly Journal, Mar 2000

Insurance Subsidiaries

On July 28, 1999, the OCC granted conditional approval for National Bank of Commerce of Mississippi, Starkville, Mississippi, to establish an operating subsidiary for the purpose of acquiring two insurance agencies. The condition requires the bank to establish the legal permissibility of the subsidiary's activities, or restructure its activities to bring them into conformance with national banking law, within two years from the date it acquires the insurance agencies. [Conditional Approval No. 320]

On September 2, 1999, the OCC granted approval for Citibank, National Association, New York, New York, to establish an operating subsidiary to reinsure a portion of the mortgage insurance on loans serviced, originated, or purchased by the bank, the bank's mortgage company subsidiaries, and affiliates of the bank. Under the bank's reinsurance proposal, the subsidiary's reinsurance obligations will take the form of an "excess loss" arrangement. [Corporate Decision No. 99-26]

On September 20, 1999, the OCC granted approval for Chase Manhattan Bank USA, National Association, Wilmington, Delaware, to expand the activities of its mortgage reinsurance operating subsidiary to include reinsuring a portion of the mortgage insurance on loans serviced by the bank or the bank's lending affiliates. Under the bank's reinsurance proposal, the subsidiary's reinsurance obligations will take the form of either an "excess loss" or "quota share" arrangement. [Corporate Decision No. 99-32]

Reverse Stock Splits

On August 10, 1999, the OCC granted conditional approval to Merchants Bank of California, National Association, Carson, California to elect the corporate governance provisions of California law, and to complete a reverse stock split in accordance with those provisions. The bank will provide dissenters' rights in accordance with state law and the conditions of approval. [Conditional Approval No. 323]

On September 21, 1999, the OCC granted conditional approval for West Michigan National Bank and Trust, Frankfort, Michigan, to elect the corporate governance provisions of Michigan law and complete a reverse stock split in accordance with those provisions. The bank will provide dissenters' rights in accordance with state law and the conditions of approval. [Conditional Approval No. 329]

Community Reinvestment Act Decisions

On August 17, 1999, the OCC granted conditional approval for Marquette National Bank, Chicago, Illinois, to establish two branches. In January 1998, the OCC assigned Marquette National Bank a CRA rating of "needs to improve." After reviewing the bank's progress in addressing its CRA weaknesses, the OCC determined that the imposition of enforceable conditions and a pre-opening requirement were appropriate and consistent with the Community Reinvestment Act and OCC policies thereunder. [CRA Decision No. 98]

On May 8, 1999, the OCC denied a branch relocation application from United National Bank, Monterey Park, California, since the bank had not adequately addressed its "needs to improve" CRA rating. The bank refiled the application after it had adopted a CRA plan acceptable to the OCC and had made improvements in its performance. On August 24, 1999, the OCC approved the relocation application but restricted the relocation so that it could not occur until the OCC conducts a Community Reinvestment Act examination of the bank, and the bank receives at least a "satisfactory" rating in the published public evaluation. [For May 8, 1999 decision, see CRA Decision No. 97; for August 24, 1999 decision, see CRA Decision No. 99]