OCC Lending Limit Rule

On June 20, the OCC adopted an interim final rule amending its lending limit rule to apply to certain credit exposures from derivative transactions and securities financing transactions. Effective July 21, Section 610 of the Dodd-Frank Act revises the definition of loans and extensions of credit for the lending limit to include certain credit exposures from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction. The interim final rule adopted by the OCC implements this statutory change which applies to both national banks and savings associations. Comments on the interim final rule are due by August 6. OCC Release. Rule.