TITLE 12 - BANKS AND BANKING

CHAPTER I - COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY

PART 16 - SECURITIES OFFERING DISCLOSURE RULES

16.6 - Sales of nonconvertible debt.

  (a) The OCC will deem offers or sales of bank issued nonconvertible debt to be in compliance with 16.3, 16.15 (a) and (b), and 16.20 of this part if all of the following requirements are met: (1) The bank issuing the debt has securities registered under the Exchange Act or is a subsidiary of a bank holding company that has securities registered under the Exchange Act; (2) The debt is offered and sold only to accredited investors; (3) The debt is sold in minimum denominations of $250,000 and each note or debenture is legended to provide that it cannot be exchanged for notes or debentures of the bank in smaller denominations; (4) The debt is rated investment grade; (5) Prior to or simultaneously with the sale of the debt, each purchaser receives an offering document that contains a description of the terms of the debt, the use of proceeds, and method of distribution, and incorporates the bank's latest Consolidated Reports of Condition and Income (Call Report) and the bank's or its bank holding company's Forms 10K, 10Q (or 10KSB, 10QSB), and 8K (17 CFR part 249) filed under the Exchange Act; and (6) The offering document and any amendments are filed with the OCC no later than the fifth business day after they are first used.

  (b) Offers or sales of nonconvertible debt issued by a federal branch or agency of a foreign bank need not need comply with the requirements of paragraph (a)(1) of this section, if the federal branch or agency provides the OCC the information specified in Commission Rule 12g32(b) (17 CFR 240.12g32(b)) and provides purchasers the information specified in Commission Rule 144A(d)(4)(i) (17 CFR 230.144A(d)(4)(i)). A federal branch or agency that provides the OCC the information specified in Commission Rule 12g32(b) need not incorporate that information by reference into the offering document provided to purchasers pursuant to paragraph (a)(5) of this section. However, the federal branch or agency must make that information available to the potential purchasers upon request. The OCC will make the information available for public inspection.