---
kind: "section"
citation: "12 C.F.R. § 1501.3"
title: "12"
number: "1501.3"
heading: "Comparable ratings requirement for national banks among the second 50 largest insured banks."
url: "https://uscodex.org/cfr/12/1501.3"
---

# §1501.3. Comparable ratings requirement for national banks among the second 50 largest insured banks.

- (a) **Scope and purpose.** Section 5136A of the Revised Statutes permits a national bank that is within the second 50 largest insured banks to own or control a financial subsidiary only if, among other requirements, the bank satisfies the eligible debt requirement set forth in [section 5136A](/cfr/12/5136A.md) or an alternative criteria jointly established by the Secretary of the Treasury and the Board of Governors of the Federal Reserve System. This section establishes the alternative criteria that a national bank among the second 50 largest insured banks may meet, which criteria is comparable to and consistent with the purposes of the eligible debt requirement established by [section 5136A](/cfr/12/5136A.md).
- (b) **Alternative criteria.** A national bank satisfies the alternative criteria referenced in Section 5136A(a)(2)(E) of the Revised Statutes ([12 U.S.C. 24a](/usc/12/24a.md)) and [12 CFR 5.39(g)(3)](/cfr/12/5.39.md?p=g-3) if the bank has a current long-term issuer credit rating from at least one nationally recognized statistical rating organization that is within the three highest investment grade rating categories used by the organization.
- (c) **Definition of long-term issuer credit rating.** A “long-term issuer credit rating” is a written opinion issued by a nationally recognized statistical rating organization of the bank's overall capacity and willingness to pay on a timely basis its unsecured, dollar-denominated financial obligations maturing in not less than one year.

## Notes

### Amendments

[66 FR 8750, Feb. 2, 2001]

### Authority

Authority: Section 5136A of the Revised Statutes of the United States (12 U.S.C. 24a).

### Source

Source: 65 FR 14821, Mar. 20, 2000, unless otherwise noted.

### Amendments

[66 FR 8750, Feb. 2, 2001]