which serves as a medium of expression for those concerned with public policies in the field of money and banking and with the problems and practices of banking institutions. The Comptroller also regularly publishes his annual report to Congress, which contains a detailed account of major operations during the year and recommendations for the future. The Comptroller regularly publishes for limited distribution, the "Comptroller's Manual for National Banks" and the "Comptroller's Manual for Representatives in Trusts". In addition, the Comptroller publishes, from time to time, other books, pamphlets, and documents for either general or limited distribution and issues statements to financial institutions subject to his jurisdiction.

(2) Unpublished information. Except as provided in paragraph (b) of this section, rulings, final opinions, decisions, and orders of the Comptroller of the Currency and other matters of official record in the Comptroller's office are available for inspection at such office during business hours to persons properly and directly concerned.

(3) Obtaining publications and unpublished information—(i) Publications. Anyone desiring to obtain the National Banking Review should submit a subscription application to the Comptroller of the Currency. National banks, counsel for national banks, counsel or other representatives of organizers of proposed national banks, certified public accountants who perform bank audits and other persons directly concerned desiring to obtain the Comptroller's Manual for National Banks and the Comptroller's Manual for Representatives in Trusts should submit subscription applications to the Comptroller of the Currency.

(ii) Unpublished information. A request to examine documents referred to in subparagraph (2) of this paragraph or to obtain a copy or copies thereof should be submitted to the Comptroller of the Currency or to the Regional Comptroller of the Currency for the region in which the request arises. Such request shall be signed by the person making it or his duly authorized agent who shall state the name and address of the person on whose behalf the request is made. The request shall set forth the facts, if any, involved, the purpose for which the document or information contained therein

will be used if made available, the nature of such person's interest in the matter, and the reason or reasons why the request should be granted. A charge will be assessed for each certified or other copy provided.

(b) Nondisclosure of confidential information (1) Reasons for nondisclosure. In connection with the supervisory, regulatory, investigative, examining, and other functions vested by law in the Comptroller of the Currency, the Comptroller receives information which must be safeguarded in the public interest in order to protect the national banking system and to enable the Comptroller to administer properly his responsibilities. Improper disclosure of such information could:

(i) Adversely affect the stability and welfare of national banks or other financial institutions to which the information relates;

(ii) Unreasonably, unnecessarily, and improperly disturb and interfere with confidential business relationships and otherwise encroach upon the right to privacy of business transactions of national banks and other financial institutions, their customers, and other persons dealing with them;

(iii) Constitute a breach of confidence between the Comptroller and those dealing with him, thus interferring with performance of the Comptroller's statutory duties and impeding the collection of information and advice by the Comptroller, much of which cannot be obtained except on a voluntary and confidential basis;

(iv) Permit speculators and others unfairly to reap profits and to gain advantages in speculative trading in securities and otherwise;

(v) Cause misinterpretations and misunderstandings of the Comptroller's policies and purposes resulting in disturbance of securities markets and impairment of public confidence in a national bank, the national banking system, or other financial institutions.

(2) Definition of confidential information. For purposes of this paragraph, the term "confidential information" means information set forth in files, correspondence, memoranda, documents, reports, books, records, and other papers of the Comptroller of the Currency, whether located in the Comptroller's

office or elsewhere, which relates to or is derived from:

(1) Reports of examination or condition, investigations, and inspections of any national bank or other financial institution, or of a holding company, subsidiary, or affiliate thereof;

(ii) The business, financial, or other affairs of any national bank or other financial institution, a holding company, subsidiary or affiliate thereof, or any person employed by, connected with, or doing business with them;

(iii) Opinions, decisions, and orders of the Comptroller which are not cited as precedents and with respect to which the Comptroller determines that disclosure would conflict with the principles set forth in subparagraph (1) of this paragraph;

(iv) Proceedings concerning the removal of a director or officer for violation of law;

(v) Proceedings or matters in which the Comptroller grants, denies, or revokes approval, permission, or authority;

(vi) Relations between the Comptroller and any national bank or other financial institution and his supervision or regulation thereof;

(vii) Activities and relations of the Comptroller with any bank supervisory or other Government agency;

(viii) Internal operations of the Comptroller's office, including matters of administration and personnel, to the extent that disclosure could be of no proper interest or benefit to other persons or would interfere with the operations of the Comptroller's office;

(ix) Any other matter with respect to which the Comptroller determines that, for the reasons set forth in subparagraph (1) of this paragraph, information should not be disclosed.

(3) Rules of nondisclosure-(1) Comptroller. Except as provided in subdivisions (iii) and (iv) of this subparagraph, or in other circumstances in which the Comptroller of the Currency determines that disclosure is authorized by law and in the public interest, the Comptroller, for the reasons set forth in subparagraph (1) of this paragraph, will not make available or otherwise disclose any confidential information, as defined in subparagraph (2) of this paragraph,

whether or not such information is a matter of official record within the meaning of the Administrative Procedure Act.

(ii) Employees of the Comptroller. Except as authorized by the Comptroller of the Currency, no employee of the Comptroller shall in any manner disclose or permit disclosure of any confidential information to anyone other than an employee of the Comptroller properly entitled to such information for the performance of his official duties.

(iii) Government agencies. When authorized by law, the Comptroller of the Currency may make available to the Board of Governors of the Federal Reserve System, to the Federal Deposit Insurance Corporation, and, in his sole discretion, to certain other Government agencies of the United States, copies of reports of examination and other documents, papers or information for their use, when necessary, in the performance of their official duties. All reports, documents and papers made available pursuant to this subdivision are the property of the Comptroller. No person, agency, or authority, or any director, officer, or employee thereof, shall disclose any such reports, documents, papers or information contained therein in any manner except as authorized by the Comptroller. Unauthorized disclosure may be determined by the Comptroller to be grounds for withdrawing the reports, documents and papers made available pursuant to this subdivision and refusing to further furnish reports of examination, documents and papers of the Comptroller.

(iv) Financial institutions. The Comptroller of the Currency makes available to each national bank and, in some cases, holding companies thereof, a copy of the report of examination of such bank or company. The report of examination is the property of the Comptroller and is loaned to the bank or holding company for its confidential use only. Under no circumstances shall the bank or holding company or any director, officer or employee thereof make public or disclose to any other banker or person in any manner the report of examination or any portion of the contents thereof.

66-026 O-67-5

PART 5-LOANS MADE BY NATIONAL BANKS SECURED BY LIENS UPON LEASEHOLDS

Sec.

5.1 Scope and application.

5.2 General authorization. 5.3 Appraisals.

5.4 Convenants and restrictions. 5.5 Loans insured or guaranteed.

AUTHORITY: The provisions of this Part 5 issued under sec. 24, 38 Stat. 273, as amended; 12 U.S.C. 371.

SOURCE: The provisions of this Part 5 appear at 25 F.R. 2158, Mar. 16, 1960, unless otherwise noted.

§ 5.1 Scope and application.

This part is issued by the Comptroller of the Currency under authority of section 24 of the Federal Reserve Act, as amended (12 U.S.C. 371). It applies to real estate loans made by national banks secured by liens on leaseholds.

§ 5.2 General authorization.

Any national bank may make or acquire a loan, in accordance with this regulation, secured by a first lien on a leasehold under a lease which does not expire for at least ten years beyond the maturity date of the loan. § 5.3 Appraisals.

The "appraised value" of a leasehold, for the purposes of 12 U.S.C. 371, shall

be determined by the use of accepted and reliable methods of appraising leasehold values including, in areas where such information is available, a consideration of the sales prices of comparable leaseholds.

[28 F.R. 14239, Dec. 24, 1963]

§ 5.4

Covenants and restrictions.

In order to qualify as an acceptable leasehold for security for a real estate loan made by a national bank, the covenants and restrictions contained in the lease which provide for forfeiture or reversion in the event of a breach must not be more onerous or burdensome than those contained in leases in general use in the area in which such bank is located, and the lease should permit acquisition of the leasehold by the lending bank by voluntary conveyance or assignment by the lessee, and acquisition and sale under judicial process, without being subject to such restrictions as would jeopardize recovery of the security value of such leasehold.

§ 5.5 Loans insured or guaranteed.

The provisions of §§ 5.3 and 5.4 do not apply to loans where the bank in its judgment relies principally on the insurance or guaranty of a governmental agency in making the loan.

[28 F.R. 14239, Dec. 24, 1963]