Corporate Applications:

June 2007

Vol. 20, No. 6

IN THIS ISSUE:

Interpretive Letters

Letter No.	Topic
1081	Letter concludes that it is legally permissible for a national bank to engage in customer-driven, perfectly matched, cash-settled derivative transactions on property indices. Before the bank may engage in the transactions, the bank must notify its examiner-in-charge ("EIC"), in writing, of the proposed activities and must receive written notification of the EIC's supervisory no-objection, based on the EIC's evaluation of the adequacy of the bank's risk measurement and management systems and controls to enable the bank to engage in the proposed activities on a safe and sound basis, and the EIC's evaluation of any other supervisory considerations relevant to the particular proposal. 05/15/2007
1082	Letter confirms that the bank is federally authorized to honor overdrafts and charge fees for doing so. The letter also confirms that these practices do not constitute an exercise of the "right to collect debts" under our rules. 05/17/2007
1083	Letter states that the Bank Merger Act, 12 U.S.C. § 1828(c), is not applicable to the acquisition of a credit card portfolio that contains a de minimis amount of credit balances, provided that they represent less than one percent of the value of the credit card receivables transferred and the selling institution is in compliance with section 165 of the Truth in Lending Act. Certain other conditions also apply. 05/03/2007

CRA Decisions

Letter No.	Topic
140	Application for Mid-State Bank & Trust, Arroya Grande, California to merge with and into Rabobank, N.A., El Centro, California (Control Number 2006 WE 02 0031), 04/14/2007

Approvals with conditions enforceable under 12 U.S.C. 1818

Letter No.

Topic

804

Application to establish a de novo national trust bank entitled "VNB Trust, National Association," Charlottesville, Virginia, and to establish an operating subsidiary entitled "VNB Investment Management Company, LLC" that will engage in fiduciary activities (Control Numbers 2006 SO 01 0028 & 2006 SO 08 0022), 05/01/2007

805

Applications for Mercantile National Bank, Los Angele, California to: Relocate its main office; establish a branch at the former main office location; sell substantially all its assets and liabilities to First California Bank, Camarillo, California; reduce its paid-in capital surplus and consummate a quasi-reorganization; to merge UCB Interim Bank, Inc., Garland, Texas, with and into the Bank (Control Numbers 2007 WE 07 0015, 2007 WE 05 0047, 2007 WE 12 0040, 2007 WE 02 0005, & 2007 WE 12 0089), 05/15/2007

Final Enforcement Actions

Enclosed is a copy of the OCC's news release number 2007-58, announcing the availability of enforcement actions. Copies of the final actions are available by writing to the OCC, Public Information Room, Mail Stop 1-5, Washington, D.C. 20219. When ordering, specify the appropriate enforcement action number.

Community Reinvestment Act (CRA) Performance Evaluations

Enclosed is a list of CRA performance evaluations that became public during the period of May 15, 2007 through June 14, 2007.

PLEASE NOTE: Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Licensing. The Community Development Investment Letters are from the office of Community Affairs. The list of CRA Ratings is from the Communications Division. For copies of the CRA evaluations, you may either contact the bank directly, or you may write to the Office of the Comptroller of the Currency (OCC) in any of three ways: by mail to the OCC, Attn: Public Information Room, Mail Stop 1-5, Washington, D.C. 20219; by fax to (202) 874-4448; or by e-mail to FOIA-PA@occ.treas.gov.

You may also write to the OCC for copies of enforcement actions and charters with standard conditions.

Members of the news media are encouraged to cite the letter number when reporting or summarizing documents from this package. This helps us to process single requests based upon your citation in a timelier manner.

The Office of the Comptroller of the Currency publishes INTERPRETATIONS AND ACTIONS monthly. Subscriptions are available at a rate of $175 per year by writing to the Comptroller of the Currency, ATTN: Accounts Receivable, Mail Stop 4-8, 250 E Street, S.W., Washington, DC 20219. Prepayment is requested. Suggestions, comments or questions may be sent to Jacqueline J. England, Comptroller of the Currency, Communications Division, Mail Stop 3-2, Washington, DC 20219.