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the executive and legislative functions of the city and the county; the remodeling of the present county courthouse and the construction of a connecting tunnel and other related facilities.

(3) In the agreements entered into among the city, the county and the commission, the city and the county have unconditionally agreed to make rental and other payments in amounts which together with the proceeds of the commission's tax levy and other available funds will be sufficient to pay the principal and interest on the bonds when due as well as other necessary expenses. The city and the county, each of which possess general powers of taxation, have thus committed their faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $25 million Omaha-Douglas Public Building Commission bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated July 14, 1972.)

[37 F.R. 21625, Oct. 14, 1972]

§ 1.347

New York City Housing Development Corp. general housing bonds. (a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $133 million New York City Housing Development Corp. general housing bonds, Series A, for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) New York City Housing Development Corp. is a corporate government agency and a public benefit corporation created by the New York City Housing Development Corporation Act of the New York State Legislature to encourage the investment of private capital and provide safe and sanitary dwelling accommodations within the financial reach of families and persons of low income through provision for low interest mortgage loans. The corporation is authorized to have outstanding at any time not more than $800 million of bonds and notes for its corporate purposes. It is issuing these bonds to provide mortgage loans for three low income housing projects: two in Manhattan and one in Queens.

(2) These bonds are general obligations of the corporation and are additionally secured by a capital reserve fund established in an amount required to be not less than the maximum annual debt service, including principal, interest and sinking fund requirements, for the current or any future fiscal year on all outstanding bonds of the corporation. In order to assure the continued operation and solvency of the corporation for the carrying out of its corporate purposes the Act provides that the city of New York shall pay annually either from appropriated or borrowed funds to the corporation for deposit to the capital reserve fund such sum as is certified to be necessary to restore the fund to an amount equal to the maximum annual debt service on all bonds of the corporation then outstanding. This statutory requirement commits the faith and credit of the city of New York in support of the bonds.

(c) Ruling. It is our conclusion that the $133 million New York City Housing Development Corp. general housing bonds, Series A, are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated August 7,

1972.)

[37 F.R. 21625, Oct. 14, 1972]

§ 1.348 California Department of Water Resources, Central Valley project revenue bonds.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $139,165,000 California Department of Water Resources, Central Valley project revenue bonds, Devils Canyon and Castaic facilities, for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The California Department of Water Resources is issuing these bonds as a part of the financing plan for a project by which surplus water in northern California will be conserved and delivered to water deficient areas in parts of central and southern California. The major part of the project has been financed by the sale of general obligation bonds of the State of California. Local public water-using agencies will reimburse the State for a portion of the costs

(reimbursable costs) financed by the general obligation bonds in accordance with the terms of water supply contracts. Certain power facilities have been financed by the sale of revenue bonds secured by contracts for the sale of electric power to public utilities.

(2) The proceeds from the sale of these bonds will be used to cover the costs apportioned to power of the Devils Canyon and Castaic facilities. It is expected that the power produced will be used by the department principally for the pumping of water. The security for the bonds is provided by payments to be made under contracts between the department and six local public water agencies in southern California which will receive water through Devils Canyon and Castaic facilities and which will benefit from the power production of these facilities.

(3) Each of these local public water agencies possesses general powers of taxation and has agreed to pay to the department amounts equivalent to its respective portion of the debt service on the bonds and the operation and maintenance costs of the power facilities financed by the bonds.

(4) The power facilities agreement contains provisions designed to preclude payment for the costs apportioned to power under both the power facilities agreement and the water supply contracts. The State has determined that the costs apportioned to power are not costs reimbursable by the agencies under their water supply contracts and the California Supreme Court has determined that the department is authorized under the Central Valley project to issue Central Valley project revenue bonds and to pledge revenues from facilities financed by such bonds as security for the repayment of the bonds. In these circumstances, the provisions designed to preclude double payment need not be considered as making the agreement conditional.

(c) Ruling. It is our conclusion that the $139,165,000 California Department of Water Resources, Central Valley project revenue bonds, Devils Canyon and Castaic facilities, are general obligations of a State or a political subdivision thereor under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks. (Comptroller's letter dated Aug. 7, 1972.) [37 F.R. 21625, Oct. 14, 1972]

§ 1.349 Parking Authority of the City of Napa.

(a) Request. (1) The Comptroller of the Currency has been requested to rule on the eligibility of the $400,000 1972 parking revenue bonds, Series A, of the Parking Authority of the city of Napa for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Parking Authority of the city of Napa is a public body corporate and politic created by the laws of California but authorized to function only upon a finding of need. The City Council has made the appropriate finding and, in accordance with the law, has declared itself to be the Parking Authority. Under the law, a parking authority is authorized to issue revenue bonds to finance public parking facilities and may issue such bonds without obtaining the approval of the electors of the city where the bonds are issued to finance a project which is to be leased to the city and where the principal of and interest on the bonds are to be payable from rentals paid by the city under such lease. The Authority is issuing these bonds to finance the acquisition and construction of two paved ground-level parking lots in the central business district of the city.

(2) Under the lease rental agreement, the city has unconditionally promised to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on these bonds as well as other necessary expenses. The city, which possesses general powers of taxation, has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $400,000 1972 parking revenue bonds, Series A, of the Parking Authority of the city of Napa are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated August 28, 1972.) [37 F.R. 21626, Oct. 14, 1972]

PART 2-[RESERVED] 1

136 F.R. 22979, Dec. 2, 1971.

PART 3-NATIONAL BANK LOANS SECURED OR COVERED BY GOVERNMENTAL GUARANTIES

§3.1 Definition of terms.

(a) The requirement of exception 10 (R.S. 5200, 12 U.S.C. 84(10)) that a guaranty or a commitment or agreement to take over or to purchase, referred to collectively herein as "agreement," must be unconditional means that the protection afforded to the bank thereby against loss resulting from factors beyond its control, must not be substantially diminished or impaired. This protection is not materially diminished or impaired by procedural requirements (for example, a requirement that notification of a default be given by the lender to the guarantor within 20 days of its occurrence, even though demand for payment under the guaranty cannot be made until after the expiration of 90 days) or by requirements of good faith on the part of the bank. Such requirements, therefore, would not prevent an agreement from being unconditional for the purposes of this statute.

(b) An agreement is not unconditional within the meaning of exception 10 if liability thereunder (1) is contingent upon the happening of an event or a condition precedent not within the control of the bank, or (2) is subject to defeasance by a contingency or a condition subsequent not within the control of the bank.

(c) An agreement may be unconditional even though it is to take over a loan only in the event of default. The requirement of the exception that the agreement must be unconditional and must be performed by payment in cash within sixty days after demand does not imply that there must be a right to demand performance prior to default. (R.S. 5200; 12 U.S.C. 84(10)) [29 F.R. 14981, Nov. 5, 1964]

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AUTHORITY: The provisions of this Part 4 issued under 12 U.S.C. 1 et seq., 5 U.S.C. 552, unless otherwise noted.

SOURCE: The provisions of this Part appear at 29 F.R. 7413, June 9, 1964, unless otherwise noted.

§ 4.1 Scope and application.

This part describes the central and field offices of the Comptroller of the Currency; the established places at which, the employees from whom, and the methods whereby, the public may obtain information, make submittals on requests, or obtain decisions; and the forms available or the places at which forms and instructions as to the scope and contents of all papers, reports, on examinations may be obtained.

[36 F.R. 5050, Mar. 17, 1971]

§ 4.1a Central and field organization; delegations.

(a) Central office-(1) Comptroller. The Comptroller of the Currency is the head of the Office of Comptroller of the Currency. He is appointed by the President, by and with the advice and consent of the Senate, for a term of 5 years. His office is in the Treasury Department, 15th Street and Pennsylvania Avenue NW., Washington, D.C. 20220. He is assisted by the following officials who are responsible to him.

(2) First Deputy Comptroller. The First Deputy Comptroller of the Currency performs such duties as the Comptroller prescribes, including general supervision of all matters pertaining to all National Bank Regions. He is aided by an Assistant Chief National Bank Ex

aminer. During a vacancy in the Office of the Comptroller or during the absence or disability of the Comptroller, he possesses the powers and performs the duties of the Comptroller.

(3) Administrative Assistant. The Administrative Assistant to the Comptroller performs such activties as the Comptroller prescribes, including general supervision of all internal matters. He is assisted by Deputy Administrative Assistants for Fiscal Management and Personnel and Directors of Administrative Services, Internal Audit, and Management Services.

(4) Chief Counsel. The Chief Counsel is in charge of the Law Department. He advises and assists the Comptroller with respect to all legal matters concerning the functions, activities, and opérations of the Office of Comptroller and all national banks.

(5) Deputies Comptroller. Two Deputies Comptroller of the Currency perform such duties as the Comptroller prescribes, including general supervision of all matters pertaining to the National Bank Regions for which each is responsible. Each such Deputy is aided by an Assistant Chief National Bank Examiner.

(6) Chief National Bank Examiner. The Chief National Bank Examiner performs such duties as the Comptroller prescribes, including general supervision of all examining personnel and of all matters pertaining to the National Bank Regions for which he is responsible. He is aided by an Assistant Chief National Bank Examiner.

(7)_Deputy_Comptroller (Economics). The Deputy Comptroller for Economics performs such duties relating to matters of economic studies as the Comptroller prescribes, including supervision of the Department of Banking and Economic Research and the Division of Statistics and Data Processing.

(8) Deputy Comptroller (Mergers and Branches). The Deputy Comptroller for Mergers and Branches performs such duties relating to branches, mergers, and other matters pertaining to the structure of the national banking system as the Comptroller prescribes.

(9) Deputy Comptroller (Trusts). The Deputy Comptroller for Trusts performs such duties as the Comptroller prescribes, including supervision of the Trust Division and all trust examiners.

(10) Deputy Comptroller (F.D.I.C. Affairs). The Deputy Comptroller for F.D.I.C. Affairs performs such duties re

lating to the Federal Deposit Insurance Corporation as the Comptroller prescribes.

(11) Director, Program Planning. The Director evaluates bank examination procedures to assure their authority and effectiveness in a technologically expanding banking system throughout the fourteen regions. He reviews and recommends changes in accounting regulations (Part 18 of this title). He has overall responsibility for the planning of the curriculum and administration of the Comptroller's school for national bank examiners and he coordinates training programs to meet the needs of examining personnel for the Comptroller.

: (12) Special Assistant (Congressional Affairs). The Special Assistant for Congressional Affairs performs such duties relating to Congressional liaison as the Comptroller prescribes.

(13) Special Assistant (Public Affairs). The Special Assistant for Public Affairs performs such duties relating to press and similar matters as the Comptroller prescribes.

(14) Special Assistant. The Special Assistant to the Comptroller performs such duties as the Comptroller prescribes.

(15) Bank Organization Director. The Director, Bank Organization Division, has supervision over the Bank Organization Division.

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(16) International Director. The Director, International Division, performs such duties as the Comptroller prescribes relating to the international activities of national banks. He supervises all examining personnel assigned to examine the foreign offices of national banks. He is aided by an Assistant Director, International Division.

(17) Law Department. The Law Department handles all legal matters in the Office of the Comptroller, including interpretation of national banking laws, related statutes and proposed legislation, implementation and development of regulations and rulings applicable to operations of national banks, corporate organization of national banks, branching, mergers, capital changes, and other matters of national bank corporate functions. Generally, it assists the Department of Justice in litigation involving the Comptroller's Office. It, however, represents the Comptroller in bank merger litigation.

(18) Department of Banking and Economic Research. The Department studies various banking problems and reports its

findings to the Comptroller. It publishes monographs and books dealing with banking and monetary subjects.

(19) Organization Division. The Bank Organization Division processes applications for national bank charters, branches, mergers, consolidations, purchases of assets and assumption of liabilities, resulting in national banks, and capital changes. The Director is aided by an Assistant Director, Bank Organization Division, who is responsible for merger, consolidation, and purchase and assumption matters. The Division also has a New Bank Section, a Branch Section, and a Capital Increase Section.

(20) International Division. The International Division is responsible for the supervision of the international activities of national banks, including the examination of national bank branch offices located outside of the geographic area covered by the 14 national bank regions.

(21) Trust Division. The Trust Division is responsible for supervision and examination of trust departments of national banks. It processes applications for fiduciary powers and monitors common trust funds of state and national banks. The Deputy Comptroller for Trusts is aided by a Chief Representative in Trusts.

(b) Field offices. (1) Fourteen national bank regions cover the United States, Guam, Puerto Rico, and the Virgin Islands. The office address of and the geographical area covered by each is as follows:

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7 Illinois, Michigan...... 164 West Jackson

8 Arkansas, Tennessee, Louisiana, Mississippi, Alabama. 9 North Dakota, South Dakota, Minnesota, Wisconsin.

10 Nebraska, Kansas, Iowa, Missouri.

11 Oklahoma, Texas..

12 Wyoming, Colorado, Utah, New Mexico, Arizona.

13 Washington, Oregon, Idaho, Montana, Alaska.

14 California, Nevada, Hawaii, Guam.

Blvd., Room 715, Chicago, IL 60604. 165 Madison Ave.,

Room 1900, Memphis, TN 38103. 822 Marquette Ave.,

Room 300, Minneapolis, MN 55402. 911 Main St., Suite

2616, Kansas City,
MO 64105.
1401 Elm St., Suite
4500, Dallas, TX
75202.
1575 Sherman St.,

Room 524, Denver,
CO 80203.

707 Southwest Wash-
ington St., Room
900, Portland, OR
97205.

555 California St., Suite 3939, San Francisco, CA 94104.

(2) A Regional Administrator of National Banks is in charge of each National Bank Region. He has general supervision over all matters pertaining to his region. He is assisted by one or more Deputy Regional Administrators, a Regional Economist, and, in some cases, a Regional Counsel.

(c) Delegations. The Comptroller of the Currency has delegated to each Regional Administrator final authority to approve (but not to disapprove) —

(1) Capital increases through stock dividends or sales of additional common stock.

(2) Cash dividends, and

(3) Increases in investments in bank buildings and other fixed assets. [35 F.R. 9513, July 1, 1967, as amended at 35 F.R. 19980, Dec. 31, 1970; 36 F.R. 5050, Mar. 17, 1971]

§ 4.2

Organization of national bank.

(a) Application. Persons desiring to organize a national bank should submit to the Regional Comptroller of the Currency for the region in which the proposed bank is to be located, an "Application to Organize a National Bank." This application, supplementary forms, and instructions for their preparation and filing are furnished upon request submitted to the Comptroller of the Currency or to the Regional Comptroller.

(b) Investigation. The Comptroller of the Currency may conduct such investigation as he deems necessary or proper, including the gathering of information as provided in Part 5 of this chapter. Matters investigated include:

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