12 C.F.R. § 1.8

Nonconforming investments

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(a) A national bank's investment in securities that no longer conform to this part but conformed when made will not be deemed in violation but instead will be treated as nonconforming if the reason why the investment no longer conforms to this part is because:

(1) The bank's capital declines;

(2) Issuers, obligors, or credit-enhancers merge;

(3) Issuers become related directly or indirectly through common control;

(4) The investment securities rules change;

(5) The security no longer qualifies as an investment security; or

(6) Other events identified by the OCC occur.

(b) A bank shall exercise reasonable efforts to bring an investment that is nonconforming as a result of events described in paragraph (a) of this section into conformity with this part unless to do so would be inconsistent with safe and sound banking practices.

Notes of Decisions

Cited in 1 case, 1978–1978 · leading case: In the Matter of First Nat'l Bank of Eden, South Dakota v. Dep't of the Treasury, Off. of the Comptroller of the Currency, 568 F.2d 610 (1st Cir. 1978).

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In the Matter of First Nat'l Bank of Eden, South Dakota v. Dep't of the Treasury, Off. of the Comptroller of the Currency, 568 F.2d 610 (1st Cir. 1978). · cites it 2× “The Comptroller then issued an Order to Cease and Desist, which required the Bank to discontinue its investment in criticized assets; correct prior violations of 12 C.F.R. § 1.8 regarding credit information on investments; develop a written investment account policy and plan for…”

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