Developments of Note
OCC Expands Bank Finder Function in Connection with Internet Approval
In connection with its order (the "Order") approving the establishment of an Internet bank (Conditional Approval #368), the OCC expressly expanded the role that a national bank may perform in connection with its "finder" activities. More specifically, in its application, the bank proposed to negotiate an arrangement with third party vendors pursuant to the terms of which the vendors would offer reduced rates to bank customers for products and services in exchange for being linked with the bank’s website. The OCC declared this a permissible finder activity, relying on its interpretive ruling codified at 12 CFR 7.1002. That interpretive ruling states that permissible activities as finder include, among other things, "making inquiries as to interest" and the Order states that the foregoing authority encompasses inquiring whether a merchant would be willing to provide a discount for bank
