National Bank Permitted to Extend Time for Satisfying Redemption Requests

This story appeared in Bank Digest.

In Interpretive Letter No. 1121, the Office of the Comptroller of the Currency has permitted a national bank to extend the time period allowable for satisfying redemption requests from participants in the bank's collective investment fund. The fund holds primarily commercial real estate assets and due to current economic and market conditions and the large volume of redemption requests the bank is unable to satisfy all the requests within the one-year notice period required by the OCC.

Interpretive Letter No. 1121 at http://www.occ.treas.gov/interp/aug09/int1121.pdf