Section 1.1 - Authority, purpose, scope, and reservation of authority(a)Authority. This part is issued pursuant to 12 U.S.C. 1 et seq.,12 U.S.C. 24(Seventh) , and 12 U.S.C. 93a .(b)Purpose This part prescribes standards under which national banks may purchase, sell, deal in, underwrite, and hold securities, consistent with the authority contained in 12 U.S.C. 24(Seventh) and safe and sound banking practices.(c)Scope. The standards set forth in this part apply to national banks and Federal branches of foreign banks.Further, pursuant to 12 U.S.C. 335 , State banks that are members of the Federal Reserve System are subject to the same limitations and conditions that apply to national banks in connection with purchasing, selling, dealing in, and underwriting securities and stock. In addition to activities authorized under this part, foreign branches of national banks are authorized to conduct international activities and invest in securities pursuant to 12 CFR part 211.(d)Reservation of authority . The OCC may determine, on a case-by-case basis, that a national bank may acquire an investment security other than an investment security of a type set forth in this part, provided the OCC determines that the bank's investment is consistent with 12 U.S.C. section 24(Seventh) and with safe and sound banking practices. The OCC will consider all relevant factors, including the risk characteristics of the particular investment in comparison with the risk characteristics of investments that the OCC has previously authorized, and the bank's ability effectively to manage such risks. The OCC may impose limits or conditions in connection with approval of an investment security under this subsection. Investment securities that the OCC determines are permissible in accordance with this paragraph constitute eligible investments for purposes of 12 U.S.C. 24 .61 FR 63982, 12/2/1996, as amended at 73 FR 22235 , 4/24/2008