Wednesday, December 11, 2019

Week of Nov. 25

In This Issue…

OBA offices closed Thursday, Friday for Thanksgiving

The OBA offices will be Thursday and Friday of this week for Thanksgiving. We will reopen at our regular time on the following Monday, Dec. 2.

Have a happy Thanksgiving!

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House committee approves bill to decriminalize marijuana

On Wednesday last week, the House Judiciary Committee voted 24-10, to approve H.R. 3884, which would decriminalize marijuana at the federal level. It was introduced by Representative Jerrold Nadler (D-N.Y.) and has 58 co-sponsors.

H.R. 3884 removes marijuana from Schedule 1 of the Controlled Substances Act. It also defers to states’ marijuana policies while requiring federal courts to expunge prior convictions for marijuana offenses.

This proposal establishes a trust fund for programs designed to help people who are disproportionately impacted by the “war on drugs.” It’s possible that the bill will make its way to the House floor where it’s likely to pass. But it still will have a very tough row to hoe in the Senate.

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FDIC, OCC propose rules to codify ‘valid-when-made’ principle

The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have proposed rules that address recent court decisions challenging the so-called “valid-when-made” principle.

This concept holds that interest rates that are valid when the loan is made by a national bank, federal thrift or state-chartered bank, will remain valid when the loan is transferred or sold.

Under the proposal, interest on permissible loans “shall not be affected by the sale, assignment, or other transfer of the loan.” The proposed rules effectuate a so-called “Madden fix,” addressing a Second Circuit Court of Appeals ruling in Madden v. Midland Funding that found that a non-bank buyer of a loan issued by a national bank could not export the originated interest rate because it violated state law where the borrower lived.

The Supreme Court declined to take up an appeal in the case, necessitating regulatory action. Comments on the proposals are due 60 days after they are published in the Federal Register.

To read the OCC proposal, click here. To read the FDIC proposal, click here.

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Proposed rule codifies statement of policy on employing individuals with criminal backgrounds

Last week, the FDIC proposed a rule to codify its current statement of policy that limits the ability of banks to hire criminals if the crime involved dishonesty, breach of trust or money laundering.

The bank can do so, but only with the prior written consent from the agency.

The agency is also seeking comments on all aspects of its Section 19 SOP, including whether it should expand the de minimis criteria for receiving FDIC approval for individuals with minor offenses. Comments are due 60 days after the proposed rule is published in the Federal Register.

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OBA education corner …

Maybe we’ll have nice weather all week for the holiday! Of course, being Oklahoma, there’s a good chance we don’t. If you’re stuck inside because of bad weather this week, take a moment to check out the upcoming seminar, webinars, schools and conferences!

  • Notary Public: More Than Just a Title, Dec. 3, webinar — Help your team know their responsibilities, plus learn basic laws, liability and reviews of various notarial acts.
  • 2019 Farm Bill Update, Dec. 4, Oklahoma City — This seminar is planned to occur in the same time frame in which farmers will be offered the chance to reelect to either Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC) this fall for the 2019 and 2020 crop years.
  • Information Security Programs for Banks, Dec. 4, webinar — Explore the fundamental building blocks of a repeatable framework for cybersecurity and information security issues.
  • Overdraft Requirements & Best Practices, Dec. 5, webinar — This webinar will dissect the regulatory requirements and examiner expectations related to overdrafts in plain English.
  • Outsourced Third Party (Vendor) Management, Dec. 9, webinar — Outsourced Third Party (Vendor) Risk Management is a top priority with the regulators. Therefore, ensuring your Program is not only going to be effective but also meet with their expectations needs to be a priority for financial institutions.
  • Top 50 “Most Important” Safe Deposit Procedures, Dec. 12, webinar — This webinar covers the “nuts and bolts” and the recommended day-to-day operating procedures for your institution.

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