On August 12, the Office of the Comptroller of the Currency (OCC) issued the “Lease Financing” booklet of the Comptroller’s Handbook. This updated booklet replaces a similarly titled booklet issued in January 1998. The booklet also replaces Section 219, “Leasing Activities,” issued in June 1999 as part of the Office of Thrift Supervision’s Examination Handbook for the examination of federal savings associations. This booklet provides an overview of the leasing business, its associated risks and sound risk management processes. It also provides examiners with expanded examination procedures and other tools that can be utilized in supervisory activities that target this type of financing.The OCC’s “Lease Financing” booklet:

  • provides an overview of the leasing business, including the legal framework for leasing, a description of various lease types, and accounting and financial reporting requirements;
  • describes the risks associated with lease financing, sound risk management processes and regulatory risk rating guidelines;
  • discusses the commonality and differences in the laws and regulations unique to national banks and federal savings associations and among the various types of lease financing products; and
  • has an expanded examination procedures section that includes an internal control questionnaire and verification procedures. 

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