BC - 58 (Rev.)
Sup. 1
BANKING ISSUANCE
Comptroller of the Currency
Administrator of National Banks
Type:  Banking Circular
Subject:  Sale of Commemorative Coins

TO:  Chief Executive Officer of All National Banks, Deputy
     Comptrollers/Regional Administrators, and Examining Personnel

Purpose

This banking circular provides general guidelines for national banks which
are considering purchasing and reselling or acting as agent in the sale of
commemorative coins minted by the Bureau of the Mint for the U.S.
Department of the Treasury.

Policy

BC-58 (REV) dated 11/3/81 states that national banks are prohibited from
buying or selling coins the value of which is not based on metallic
content. The Circular makes it clear that banks may not speculate by
purchasing coins, such as rare coins, the value of which is based upon
such factors as rarity, age, condition, a mistake in the minting or other
intangible factors.

Commemorative coins are minted by the Bureau of the Mint for the U.S.
Department of the Treasury. The coins commemorate events such as George
Washington's birthday, the Olympic Games and other events of national
importance. The fixed price of such coins is based upon the cost of the
metal, production, distribution and, in the case of the Olympic coins, a
surcharge earmarked for contribution to the U.S. Olympic Committee.

National banks may take such commemorative coins on a consignment basis
and act as selling agent for the Department of the Treasury. National
banks may also choose to purchase an inventory of commemorative coins for
resale to their customers.

Prudence and care should be exercised by Boards of Directors in
formulating policies and procedures when purchasing commemorative coins.
Dollar limits on coin inventories should be consistent with safe and sound
banking practices.

Accounting

Commemorative coins purchased by a national bank should be recorded as
"Other Assets". The bank's books should reflect the lower of cost or
market value with adjustments made monthly. This is consistent with the
accounting treatment stated in BC-58(Rev).

Originating Office

Chief National Bank Examiner's Office, Commercial Examinations Division
(202) 874-5190.

John F. Downey
Chief National Bank Examiner

Date: December 28, 1983