April 10, 2009

STATE BANKING BOARD
RULE CB101.60 and IB57
PERTAINING TO THE COLORADO BANKING CODE

STATEMENT OF BASIS AND PURPOSE

Amendment to Banking Board Rule CB101.60 and IB57 Investments in Community Development Projects is necessary as the Office of the Comptroller of the Currency (OCC) allows national banks to hold aggregate outstanding investments in community development and public welfare investments up to 5 percent of its capital and surplus.  If the bank is adequately capitalized or well-capitalized, the OCC may allow the bank to invest up to 15 percent of capital and surplus in such projects.  There are no sub-limits for individual projects.

Colorado state-chartered banks may hold aggregate outstanding investments in community development projects up to 5 percent of its total capital and may invest up to 2 percent of total capital in any one project.

The Division of Banking is recommending that the investment limitation be changed in order to maintain parity with nationally chartered banks.