Recent corporate decisions

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

The OCC publishes monthly, in its publication Interpretations and Actions, corporate decisions that represent a new or changed policy, or present issues of general interest to the public or the banking industry. In addition, summaries of selected corporate decisions appear in each issue of the Quarterly Journal. In the second quarter of 2000, the following corporate decisions were of particular importance because they were precedent-setting or otherwise represented issues of importance. The OCC's decision documents for these decisions may be found in Interpretations and Actions using the decision or approval number at the end of each summary.

Charters

In the first quarter of 2000, the OCC began imposing a new standard condition on all newly chartered banks. Through this standard condition the OCC requires that a new bank provide prior notification, and in some cases obtain prior approval, of any significant deviation or change from the operating plan upon which the charter is approved. This condition remains in effect for a new bank's first three years of operation.

On April 13, 2000, the OCC granted preliminary conditional approval to a proposal by Amplicon, Inc., to charter an Internet-only national bank titled Hutton National Bank, later renamed California First National Bank, Santa Ana, California. The bank's business strategy is to purchase equipment leases from companies that originate such leases to small- and medium-sized businesses, including those from its parent company Amplicon, and to offer consumer-oriented deposit products and related electronic payment services, Approval was granted subject to certain pre-opening requirements and ongoing conditions addressing a capital and funding maintenance agreement with the parent company, methodology for determining the price paid for lease rental payment streams, contingency planning, and Internet security. [Conditional Approval No. 383]

On April 3, 2000, the OCC granted preliminary conditional approval to a proposal by Synovus Financial Corporation, Columbus, Georgia, to charter a national bank under the name pointpathbank, National Association, Columbus, Georgia. The bank will offer traditional products and services over the Internet and will not have a "brick and mortar" presence. Approval was granted subject to certain pre-opening requirements and ongoing conditions addressing, among other things, technology and Internet security matters. [Conditional Approval No. 368]

Mergers

On June 20, 2000, the OCC granted approval for TeamBank, National Association, Freeman, Missouri, to merge with its affiliate, First National Bank and Trust Company, Parsons, Kansas. The resulting bank of this interstate merger will retain and operate the Paola office as its main office and all other offices as branches. [Corporate Decision No. 2000-09]

On June 22, 2000, the OCC granted conditional approval for Old National Bank, Lawrenceville, Indiana (ONB) to acquire Permanent Bank, Evansville, Indiana. The approval requires that ONB comply with a two-branch divestiture agreement it signed with the Department of Justice. The approval also requires that, within two years from the date of the consummation of the merger, ONB either conform its investment in a life insurance company with applicable laws or divest of its investment in the company. [Conditional Approval No. 406]

Branch

On June 21, 2000, the OCC granted approval for First National Bank, Houston, Missouri, to establish a branch in Mountain Grove, Missouri. In establishing the branch, the bank will demolish a building that is eligible for listing in the National Register of Historic Places. The approval requires the bank to prepare a recordation of the building, and have it accepted by the state historic preservation office, prior to demolition of the building. [Corporate Decision No. 2000-10]

Operating Subsidiaries

On April 25, 2000, the OCC granted conditional approval for Union Planters Bank, NA, Memphis, Tennessee, to acquire an operating subsidiary. The subsidiary contracts with businesses to manage human resource and employment functions such as payroll processing, employment benefit administration, workers compensation, cost management, tax reporting, and regulatory compliance. The subsidiary also sells, as agent, supplemental insurance products and performs certain administrative services. The approval requires the subsidiary to maintain adequate employment practices liability insurance. [Conditional Approval No. 384]

On May 10, 2000, the OCC granted approval for Mellon Bank, National Association, Pittsburgh, Pennsylvania, to acquire as an operating subsidiary MPAM Private Equity, LLC, a limited liability company (LLC). The LLC serves as a sole general partner of MPAM 1999 Private Equity Fund, LP, a Delaware limited partnership that is used as an investment vehicle for bank clients. [Corporate Decision No. 2000-07]

On June 1, 2000, the OCC granted approval for The Citizens National Bank of Evans City, Evans City, Pennsylvania, to establish an operating subsidiary, CNBCommerce.com, L.L.C., to provide services to merchants that facilitate the sales of goods and services over the Internet. The LLC will offer a package of Internet services that bundle payments processing with the support necessary for merchants to have their Web sites linked to a "virtual mall" Web site. The LLC will also offer these services to other financial institutions on a wholesale basis for their respective customers. [Corporate Decision No. 200008]