OCC Bulletin 2008-29 Guides U.S. National Banks on Covered Bond Compliance

The FDIC’s July 28 final policy statement sets forth how it will treat covered bonds in the event that the issuing insured depository institution goes into conservatorship or receivership.  As the OCC points out, “[t]he policy statement provides for expediting access to pledged covered bond collateral if the covered bond issuance involves eligible mortgages and satisfies the policy statement’s criteria.  To qualify for expedited access, the covered bond issuances must be made with the consent of an institution’s primary federal regulator.”

This OCC Bulletin (dated 10/20/08) provides guidance on how the institutions for which the OCC is the primary federal regulator—national banks—can satisfy the FDIC’s consent requirement.  The simple procedure it outlines is basically a bank to ask for and receive a “no-objection” through its “examiner-in-charge.”

To download a PDF of OCC Bulletin 2008-29, click the first item below.

To download a PDF of the bulletin’s attachment, click the second item below.